RegulationCorporate GovernancePoor accounting at the centre of charity malpractice

Poor accounting at the centre of charity malpractice

The Charities Back on Track report is the result of 799 assessments of charities in the last year

Poor basic accounting and reporting practices are still the main causes of
malpractice among charities, according to the Charity Commission.

This assessment comes out of the commission’s first annual review of the key
themes that arose from its compliance work from April 2007 to March 2008.

The Charities Back on Track report – a result of 799 assessments of charities
in the last year – said that while good governance is key to all aspects of
running a charity, the basics are sometimes overlooked.

‘Accounting and reporting requirements are not merely an administrative
requirement for charities… they are important tools helping charities balance
the books, plan for their future and account for their income and spending.
Ensuring charities meet their reporting requirements will be increasingly
important as public scrutiny of charities’ effectiveness grows,’ the report
said.

The report also highlighted a lack of proper controls which exacerbated
existing problems and made it harder for charities to get back on proper footing
when problems arose.

Further reading:

Charities
Back on Track report

Profile:
Andrew Hind, chief executive of the Charity Commission

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