Charity Trustee Report does not agree with Minutes

Some items in Charity Trustee Report does not agree with the Charity Minutes

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I am performing an audit of a charity. 

I have observed that some of the items mentioned in the Charity Trustee report do not agree with the official Minutes that have been approved by the Board.
For example, an incident occurred where a Chairman was suspended pending investigation by the Charity, Charity Commission and the Police over an incident (not finance related) against a member. 

Whilst the matters were being investigated, the Chairman resigned of his own accord. The official minutes record this. However, the interim Chairman has now decided to amend the Trustee's report by now highlighting that the ex-Chairman was expelled to satisfy a group of members almost bordering on a personal vendetta.  Nowhere in the Minutes does it state that the ex-Chairman was expelled which begs the question of how could the ex-chairman be expelled when he has already resigned.

As an auditor, where do I stand when the Trustees Report is incorrect in this area? Do I need to disclose this in the Audit report?

 

 

Replies (11)

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By WhichTyler
27th Jun 2023 12:15

I'm just going to get some popcorn. What does ISA 260 say?

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Replying to WhichTyler:
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By WhichTyler
27th Jun 2023 12:17

Ready now. What did the interim chair say when you discreetly pointed out the inconsistency to them?

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Replying to WhichTyler:
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By jonharris999
27th Jun 2023 14:07

+1 . This isn't a dilemma about disclosing or not. Disclosure isn't a blunt tool through which you can deal with any old nonsense. It simply isn't open to the Trustees to report something so inconsistent with the record.

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Replying to jonharris999:
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By WhichTyler
27th Jun 2023 14:26

I am assuming that the audit is underway, but the accounts have not been formally laid before, let alone agreed by the trustees. The closing meeting (or audit ctee meeting if the entity has one) may not even have taken place

If that assumption is correct then we are talking about draft reports and an informal discussion could resolve the situation...

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Replying to WhichTyler:
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By isidat
27th Jun 2023 15:10

The audit is already completed, together with the closing meeting held, and Reports of the Trustee and the audited accounts were approved by the Board, and distributed to the members of the Charity.

An AGM is due to be held but before that happens, got a communication from the Interim Chairman that it wishes to change the statement in the Report relating to the previous Chairman along the lines I stated in my posting.

Hope this clarifies the matter.

Thanks

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Replying to isidat:
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By JB101
27th Jun 2023 16:02

If the audited accounts have been approved and distributed, the audit has finished and (presumably) the report has been signed.
If so, he wants to amend audited accounts already finalised - surely he realises it's too late now!

p.s. Raise the bill and make sure it's paid.

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Replying to isidat:
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By WhichTyler
27th Jun 2023 16:07

But your report is (a) in the version that the Board approved and (b) you sign your report after Board have signed and before AGM, don't you?

Is the Chair proposing to go back to the Board for new approval?

Why did they circulate before your signature?

I would suggest replying to the Chairman that the change is not consistent with the minutes/actual events (with a veiled implication that you would have to draw this to members and public attention in audit report or otherwise), and that the Board have approved the original version, so would he like to reconsider...

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Replying to WhichTyler:
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By WhichTyler
27th Jun 2023 16:08

And anyone who is on the end of a Charity Commission investigation should think twice before using the annual report to settle scores!

What will potential donors think?

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John Toon
By John Toon
27th Jun 2023 12:15

Yes, but not just disclose - you are likely to be bordering on a disagreement

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Replying to johnt27:
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By isidat
27th Jun 2023 14:12

This is what I was thinking as well. Thanks

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By Laurence52
27th Jun 2023 18:16

https://assets.publishing.service.gov.uk/government/uploads/system/uploa...

You need to have a look at section 3.8 Matter 8 as a modified audit report is required to be reported by you to the Charity Commission.

The whole of that document is essential reading for any auditor or independent examiner of charity accounts.

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