Charity News: Internal controls

Charity News: Internal controls
Charity News: Internal controls

Having an effective system of internal control is a key way in which charities can protect themselves against risks that may arise and safeguard their resources. With the passage of time new risks will emerge and those systems will need to respond and adapt. To help charities with this process CCEW has updated its guidance in CC8 internal controls for charities.

The updated guidance is more concise and clearer than before, and covers issues that were not covered and covers issues that were not covered in the previous version, such as those arising from newer technology such as the use of cryptoassets and mobile payment systems such as Google Pay and Apple Pay. Specific risks arising from the use of cryptoassets referenced in the guidance includes vulnerability to theft by hackers, volatility in the value of crypto currency, difficulty in tracing donors and a lack of regulatory protection. This update is particularly timely given that earlier this year the Department for Science, Innovation and Technology published research that showed that 24% of charities had experienced a cyber attack in the previous 12 months.

It’s not just risks resulting from technology that have been updated in the guidance, with more traditional areas such as holding public collections, making payments to related parties and operating overseas also being revised, and a new section on accepting hospitality has been added to the guidance.

Accompanying the guidance is an updated checklist for charities to use when checking whether their internal controls align with CCEW’s guidance, something charities should be checking at least annually.

Details: Regulator delivers updated guidance to help sector protect £80bn income

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About the author

Frank manages a portfolio of both audit and non-audit clients in a range of different sectors and industries, as well as assisting with the running of the corporate services department. He has extensive experience of providing Audit, Accounts preparation, Corporation Tax, VAT, CIS and Payroll. Frank also holds a solid experience with regards accounting and audit in a number of specialist areas, including charities, solicitors and pension schemes.

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