SCHEDULE OF SERVICES
This schedule must be read in conjunction with the engagement letter and the standard terms and conditions.
ACCOUNTS PREPARATION FOR A CHARITABLE INCORPORATED ORGANISATION (NO EXTERNAL SCRUTINY)[ACCA 1]
Our service to you
You have engaged us to prepare the accounts (financial statements) on your behalf for your approval based on the accounting records, the information and explanations that you give us and in accordance with the accounting framework agreed and applicable to you.
You have engaged us to prepare a non-statutory report as detailed below that will be attached to the accounts.
We will not be carrying out any audit work as part of this assignment and accordingly will not verify the assets and liabilities of the business, nor the items of expenditure and income. To carry out an audit would entail additional work so that we could report on the truth and fairness of the accounts. We would also like to emphasise that we cannot undertake to discover any shortcomings in your systems or irregularities on the part of your employees.
We have a professional duty to compile accounts that conform with generally accepted accounting principles. Where we identify that the accounts do not conform to accepted accounting principles, we will inform you and suggest amendments be put through the accounts before being published. We have a professional responsibility not to allow our name to be associated with accounts that may be misleading. In extreme cases, where this matter cannot be resolved, we will withdraw from the engagement and notify you in writing.
To ensure that anyone reading the accounts is aware that we have not carried out an audit or independent examination, we will attach to the accounts a report stating this fact.
The intended users of the report are the trustees. The report will be addressed to the trustees.
Our responsibility to you
We have set out the agreed scope and objectives of your instructions within the letter of engagement. Any subsequent changes will be discussed with you and where appropriate a revised schedule of services will be agreed. We shall proceed on the basis of the instructions we have received from you and will rely on you to tell us as soon as possible if anything occurs which renders any information previously given to us as incorrect or inaccurate. We shall not be responsible for any failure to advise or comment on any matter which falls outside the specific scope of your instructions. We cannot accept any responsibility for any event, loss or situation unless it is one against which it is the expressed purpose of these instructions to provide protection.
Your responsibility to us
The advice that we give can only be as good as the information upon which it is based. Insofar as that information is provided by you, or by third parties with your permission, your responsibility arises as soon as possible if any circumstances or facts alter as any alteration may have a significant impact on the advice given. If the circumstances change therefore or your needs alter, advise us of the alteration as soon as possible in writing.
Responsibilities of trustees and accountants
As trustees of the above charitable incorporated organisation, you are required by statute to prepare accounts for each financial year which present the income and expenditure of the charitable incorporated organisation for the period and its assets and liabilities at the end of the period together with a trustees’ annual report in accordance with [the Charities Act 2011/ the Charities and Trustee Investment (Scotland) Act 2005 / the Charities Act (Northern Ireland) 2008]. In preparing those accounts you must:
- Select suitable accounting policies and then apply them consistently.
- Make judgements and estimates that are reasonable and prudent.
- Prepare the accounts on the going concern basis unless it is not appropriate to presume that the charitable incorporated organisation will continue in operation.
You have engaged us to prepare the accounts on your behalf.
It is your responsibility to keep proper accounting records which disclose with reasonable accuracy at any particular time the financial position of the charitable incorporated organisation and to enable us to ensure that the accounts comply with [the Charities Act 2011/ the Charities and Trustee Investment (Scotland) Act 2005 / the Charities Act (Northern Ireland) 2008]. It is also your responsibility to safeguard the assets of the charitable incorporated organisation and hence for taking reasonable steps for the prevention of and detection of fraud and other irregularities with an appropriate system of internal controls.
You are also responsible for making available to us, as and when required, all the charitable incorporated organisation’s accounting records and all other relevant records and related information, including minutes of all trustees’ meetings.
Under directions issued by [the Charity Commission/Office of the Scottish Charity Regulator/ the Charity Commission for Northern Ireland /other regulator], we are obliged to report to them any matters which we become aware of during the course of our examination which give us reasonable cause to believe that one or more of the trustees has been responsible for deliberate or reckless misconduct in the charitable incorporated organisation’s administration.
Should you instruct us to carry out an alternative report then it will be necessary for us to issue a separate letter of engagement.
If as a result of the work we perform, we arrive at the conclusion that the charitable incorporated organisation is not entitled to exemption from an audit of the accounts, or if we are unable to reach a conclusion on this matter, we will not issue any report. We will provide you with written notification of the reasons for this.
As trustees of a charitable incorporated organisation, you are under a duty to prepare an annual report for each financial year complying in its form and content with [the Charities Act 2011/ the Charities and Trustee Investment (Scotland) Act 2005 / the Charities Act (Northern Ireland) 2008]. You should also have regard to the Statement of Recommended Practice “Accounting and Reporting by Charities”.
As trustees, you are required to report as to whether you have given consideration to the major risks to which the charitable incorporated organisation is exposed, and to the systems designed to mitigate these risks. Compliance with the Charities SORP requires you to confirm that these risks have been reviewed and that systems have been established to mitigate those risks. We are not required to audit this statement, or to form an opinion on the effectiveness of the risk management and control procedures.
You must not approve the accounts unless you are satisfied that they give a true and fair view of the assets, liabilities, financial position and profit or loss of the company.
Limitation of liability
Our services as detailed above are subject to the limitations on our liability set out in the engagement letter and in paragraph 18 of our standard terms and conditions of business. These are important provisions, which you should read and consider carefully.
There are no third parties that we have agreed should be entitled to rely on the work done pursuant to this engagement letter.
You may request that we provide other services from time to time. If these services will exceed £, we will issue a separate letter of engagement and scope of work to be performed accordingly.
Because rules and regulations frequently change you must ask us to confirm any advice already given if a transaction is delayed or a similar transaction is to be undertaken.
[ACCA 1]Only charities with income below £25,000 pa currently have no external scrutiny.