To many it may have gone unnoticed, but the proposal to increase the threshold at which charities are subject to statutory audit was passed and came into effect on 31 March.
The previous income threshold of £500,000 rose to £1million, although the ‘asset threshold’ limit, where a statutory audit would be required for charities holding £3.26million of assets and receiving more than £250,000 of income remained in place.
The new £1million limit will be used when deciding whether a charity must prepare group accounts, if it has subsidiaries.
The Cabinet Office noted the sector’s concern about the costs of delaying these changes and so ensured that they were in force for the end of March and became applicable immediately to charities with 31 March 2015 year ends.
For those charities which can benefit from the increase in the income threshold and drop out of the statutory audit requirement, their accounts will still be subject to an independent examination by a qualified accountant where their income is above £250,000.
If you would like to know more about the implications for your charity please contact us on +44 (0)20 7240 9971 / +44(0)1483 533119 or email firstname.lastname@example.org