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Hi everyone, I was wondering if anyone could help in this case:

Our charity is a religious charity run by voluntaries which requires an audit. All money is adequately counted and money paid is signed by two signatories. In this circumstances are budgets and forecasts required to prove that the charity is a going concern and subsequent events are not relevant. The charity has enough assets (>£3m) and very little liabilities (£15k).

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By johngroganjga
08th Jul 2015 09:52

Why don't your ask your auditor what he or she requires?  There is no point getting a response on here to the effect that such and such would or not be required if the responder were carrying out the audit. What matters is what your auditor thinks.  

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By Oldmanwetmix
08th Jul 2015 10:33

Why not have forecasts?

I think you are missing the point. You should at least be considering what commitments you have for the next twelve months otherwise how can you be sure you can meet them. It doesn't have to be that sophisticated, just sufficient to prove you've looked at it. After all, its not your money or assets. Just because you have assets won't keep you out of trouble, ask any farmer these days. If the assets are liquid such as cash, why do you need to hold so much? You should be spending it carrying out charitable works. Unless of course you need to hold high levels of reserves, which will need a budget or forecast to prove.

 

Don't think of budgeting as a chore, you should be looking at the future anyway, without the auditors prompting.

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