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16 Sep 2011
BAKER TILLY has quit as auditor of Citizens Advice due to disagreement over the charity's pension accounting.
The firm resigned at this week's AGM, and the news comes shortly after Citizens Advice treasurer Mike Weaver stepped down after just four months, Civil Society reports.
Further reading
Citizens Advice's pension pot has a growing deficit, which leapt from £19.4m in 2006 to almost £36.5m by March 2010. The defined benefit scheme closed to new entrants in 2008.
The charity insists "it is not possible to separately identify assets and liabilities relating to Citizens Advice". For this reason, it cannot make provision under FRS12.
However, Baker Tilly disagrees and last year gave a qualified opinion on the accounts, calling for a provision of £8,305,000 to be made at 31 March 2010.
This year's accounts have not yet been signed off and partner Sudhir Singh refused to say whether they would again receive an auditor's qualification.
A Citizens Advice spokesman said: "The reason they were not signed off at the AGM was one of timing only," adding: "There is a technical issue over the treatment of our pension liability but lots of charities have a similar issue. We are confident the accounts will be signed off by the auditor in the normal way."
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Visitor comments Add your comment
Clarification
I think it is important to be clear about this. There is a professional disagreement between Baker Tilly and accountants working within Citizens Advice about the way in which figures relating to a pension deficit should be presented. Nothing underhand, not even anything unprofessional is suggested on either side. All the figures are in the accounts, just not in the location Baker Tllly wanted. Another firm could well have taken a different view--in fact, they must do so, as other major charities present their accounts in the form favoured by CitA. Baker Tlly chose, for their own reasons, to seek to embarrass CitA by speaking at the AGM, presenting the issue as though CitA were at fault, rather than in disagreement. Others must judge their motives and the appropriateness of their petulance.
Posted by: Max Kruger, 16 Sep 2011 | 15:27
CAB is wrong
There is clear guidance on this issue and Baker Tilly are right. The multi employer exemption is not there to allow acquiesence. The employer can ascertain the share of the deficit attributable to the employer - they just need to instruct the scheme actuary to do it. The fact BT can quantify the missing liability is evidence enough of the existence of it. It will be a brave firm which signs off in BT's place.
Posted by: Russell Mitchell, 21 Sep 2011 | 17:58