Schedule of Professional Services - Accounts: Charity Unincorporated Accruals

INDEPENDENT EXAMINATION OF THE ACCOUNTS (CHARITY UNINCORPORATED) ACCRUALS ACCOUNTS

The purpose of this schedule to our engagement letter is to set out the basis on which we are to perform an independent examination of the accounts for the charity.

1. RESPONSIBILITIES OF TRUSTEES AND INDEPENDENT EXAMINERS

1.1As trustees of the charity, you are responsible for maintaining proper accounting records and an appropriate system of internal control for the charity and you are also responsible for preparing the annual report and accounts which give a true and fair view and have been prepared in accordance with (United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and the Charities Act 2011 (“the Act”) and regulations thereunder.

1.2Where appicalbe, your responsibility for preparation of the financial statements extends to the application of exemptions and options on transition to, and application of, new accounting standards. As trustees of the charity you should also consider the impact of new accounting standards on the charity, including the impact on going concern.

1.3 As trustees of a charity, you are under a duty to prepare an annual report for each financial year complying in its form and content with regulations made under the Charities Act 2011. You should also have regard to the Statement of Recommended Practice (SORP) 'Accounting and Reporting by Charities' 2015 (FRS 102), issued by the joint SORP-making body, and any subsequent amendments or variations to this statement.

1.4Under the Charities Act 2011 we have a statutory responsibility to state whether or not any matters have come to our attention to which in our opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached, and to report whether or not any matter has come to our attention in connection with the examination which gives us reasonable cause to believe that in any material respect:

• accounting records have not been kept by the charity in accordance with Section 130 Charities Act 2011;
• the accounts are not in agreement with the accounting records; and
• the accounts do not comply with the accounting requirements of the Charities Act 2011.

1.5 We are also required to report any of the following matters that have become apparent during the course of our examination:

•whether there has been any material expenditure or action which appears not to be in accordance with the trusts of the charity; and
• whether any information in the trustees’ statutory annual report is inconsistent in any material respect with that in the accounts.

1.6We shall plan our work on the basis that an examination report is required for the year, unless you inform us in writing that either:

• the charity requires an audit of the accounts; or
• the charity requires neither an audit nor an examination report.

1.7 Should you instruct us to carry out an audit, then a separate letter of engagement will be required.

1.8Should you inform us that the charity requires neither an audit nor an examination, then we shall have no responsibilities to the charity, except those specifically agreed upon between us in respect of other professional services.

1.9 Should our work lead us to conclude that the charity is not entitled to exemption from an audit of the accounts, or should we be unable to reach a conclusion on this matter, then we will not issue any report and will notify you in writing of the reasons. In these circumstances, if appropriate, we will discuss with you the need to appoint an auditor.

1.10We have a statutory duty to report to the Charity Commission (CC) under section 156 of the Charities Act 2011 such matters (concerning the activities or affairs of the charity or any connected institution or body corporate) of which we become aware during the course of our examination which are (or are likely to be) of material significance to the CC in the exercise of their powers of inquiry into, or acting for the protection of, charities.

1.11 In common with all accountancy and legal practices, we are required by the Proceeds of Crime Act 2002 and the Money Laundering Regulations to:

• have due diligence procedures for the identification of all clients;
• maintain appropriate records of evidence to support customer due diligence; and
• report in accordance with the relevant legislation and regulations.

2. SCOPE OF EXAMINATION

2.1Our examination will be conducted in accordance with the CC's 'Directions and Guidance Notes for the Carrying out of an Independent Examination'. Our procedures will consist of comparing the accounts with the accounting records, vouching some material / significant transactions, making limited enquiries of the officers of the charity and only in certain circumstances seeking independent evidence to support entries in the accounting records, or the presentation of the accounts. We shall also review the trustees' report and discuss with you the financial circumstances of the charity at the end of the year.

2.2Our examination is not designed to identify all significant weaknesses in the charity's systems but, if such weaknesses come to our notice during the course of our examination which we think should be brought to your attention, we shall report them to you. Any such report may not be provided to third parties without our prior written consent. Such consent will be granted only on the basis that such reports are not prepared with the interests of anyone other than the charity in mind and that we accept no duty or responsibility to any other party as concerns the reports.

2.3 As part of our normal procedures, we may request you to provide written confirmation of oral representations which we have received from you during the course of the examination on matters having a material effect on the account and statement.

2.4 In order to assist us with the examination of your accounts, we shall request sight of all documents or statements, including the trustees' annual report, which are due to be issued with the accounts. If it is proposed that any documents or statements which refer to our name, other than the examined accounts, are to be circulated to third parties, please consult us before they are issued.

2.5 The responsibility for safeguarding the assets of the charity and for the prevention and detection of fraud, error and non-compliance with laws or regulations rests with yourselves. Our examination should not be relied upon to disclose all material misstatements or frauds, errors or instances of non-compliance as may exist.

2.6We shall not be treated as having notice, for the purposes of our examination responsibilities, of information provided to members of our firm other than those engaged on the examination.

2.7 Once we have issued our report we have no further direct responsibility in relation to the accounts for that financial year.

Updated November 2017

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