C1I1Part VI Charity Accounts, Reports and Returns
Pt. VI (ss. 41-48) modified (1.1.1999) by 1998 No. 1, s. 3(3); Archbishops Instrument dated 14.10.1998
43 Annual audit or examination of charity accounts.
1
Subsection (2) below applies to a financial year of a charity (“the relevant year”) if the charity’s gross income or total expenditure in any of the following, namely—
a
the relevant year,
b
the financial year of the charity immediately preceding the relevant year (if any), and
c
the financial year of the charity immediately preceding the year specified in paragraph (b) above (if any),
exceeds F1£250,000.
2
If this subsection applies to a financial year of a charity, the accounts of the charity for that year shall be audited by a person who—
a
is, in accordance with section 25 of the M1Companies Act 1989 (eligibility for appointment), eligible for appointment as a company auditor, or
b
is a member of a body for the time being specified in regulations under section 44 below and is under the rules of that body eligible for appointment as auditor of the charity.
3
If subsection (2) above does not apply to a financial year of a charity F2and its gross income or total expenditure in that year exceeds £10,000, then (subject to subsection (4) below) the accounts of the charity for that year shall, at the election of the charity trustees, either—
a
be examined by an independent examiner, that is to say an independent person who is reasonably believed by the trustees to have the requisite ability and practical experience to carry out a competent examination of the accounts, or
b
be audited by such a person as is mentioned in subsection (2) above.
4
Where it appears to the Commissioners—
a
that subsection (2), or (as the case may be) subsection (3) above, has not been complied with in relation to a financial year of a charity within ten months from the end of that year, or
b
that, although subsection (2) above does not apply to a financial year of a charity, it would nevertheless be desirable for the accounts of the charity for that year to be audited by such a person as is mentioned in that subsection,
the Commissioners may by order require the accounts of the charity for that year to be audited by such a person as is mentioned in that subsection.
5
If the Commissioners make an order under subsection (4) above with respect to a charity, then unless—
a
the order is made by virtue of paragraph (b) of that subsection, and
b
the charity trustees themselves appoint an auditor in accordance with the order,
the auditor shall be a person appointed by the Commissioners.
6
The expenses of any audit carried out by an auditor appointed by the Commissioners under subsection (5) above, including the auditor’s remuneration, shall be recoverable by the Commissioners—
a
from the charity trustees of the charity concerned, who shall be personally liable, jointly and severally, for those expenses; or
b
to the extent that it appears to the Commissioners not to be practical to seek recovery of those expenses in accordance with paragraph (a) above, from the funds of the charity.
7
The Commissioners may—
a
give guidance to charity trustees in connection with the selection of a person for appointment as an independent examiner;
b
give such directions as they think appropriate with respect to the carrying out of an examination in pursuance of subsection (3)(a) above;
and any such guidance or directions may either be of general application or apply to a particular charity only.
8
9
Nothing in this section applies to a charity which is a company.
F410
Nothing in this section applies in relation to a financial year of a charity where, at any time in the year, a charity is an English National Health Service charity or Welsh National Health Service charity (as defined in sections 43A and 43B respectively).
Pt. VI (ss. 41-48) wholly in force at 1.3.1996; Pt. VI (ss. 41-48) not in force at Royal Assent see s. 99(2); Pt. VI (ss. 41-48) in force for certain purposes at 15.10.1995 by S.I. 1995/2695, art. 3 (with art. 4); Pt. VI (ss. 41-48) in force for all other purposes at 1.3.1996 by S.I. 1995/2695, art. 2 (with art. 4)