Auditing accounts for a small netball club

vrose1982

Hi All,

I am the secretary for a small netball club (about 20 members). We have a treasurer who deals with the bank account etc but to be honest not much money goes through it....it's mainly money paid in by members for affiliation to all england (£60 per player each season) and match fees (about £25 per match but £15 is given straight to our umpire).

My question is, is there any legal requirement for us to be audited? I have only been secretary this season as has the treasurer and I don't really know what went on before. The lady who was treasurer before was an accountant and a non playing member of the club so we never really had any contact from her other than a balance of accounts to pressent at our annual AGM.

Thanks for your help.

Vicky

classy69

Hi, there is no legal requirement for an audit in your accounts. The only reason they may a requirement for an audit is if it's written into the clubs constitution.

vrose1982

Thank you

Is it because we are such a small club?

Basically this has come about as we have a new coach who is adamant they need to be audited.

Game_Over

vrose1982 wrote: »

Thank you

Is it because we are such a small club?

Basically this has come about as we have a new coach who is adamant they need to be audited.

Have you asked the newbie to explain why he is being so adament?

This is about private limited companies (which you may or may not be)
https://www.gov.uk/audit-exemptions-for-private-limited-companies

zygurat789

The need for an "audit" doesn't arise until the turnover is into the £Millions.
It is a good idea to have accounts prepared and commented on by someone who knows who's arm you can twist. The ususal fee is a bottle of spirits.

Pennywise

The term "audit" these days conjures up multi million pound entities and isn't applicable to the vast majority of businesses, charities and clubs etc. To perform a statutory audit, you need a registered auditor and it would need to be in accordance with Auditing Standards. Basically a time consuming, bureacratic and expensive sledgehammer to crack a nut.

The modern "term" for charities and clubs is "independent examination" which for smaller cases can be anyone who knows a bit about accounts etc and is normally just another pair of eyes to look over the book-keeping and accounts to make sure that the Treasurer and other officials aren't making mistakes and aren't pocketing the club's money. Even this light touch independent examination isn't a legal requirement for the smallest of entities, but is regarded as the bare minimum to give some assurance to the rank and file members that their money is being used properly.

Savvy_Sue

Pennywise wrote: »

The term "audit" these days conjures up multi million pound entities and isn't applicable to the vast majority of businesses, charities and clubs etc. To perform a statutory audit, you need a registered auditor and it would need to be in accordance with Auditing Standards. Basically a time consuming, bureacratic and expensive sledgehammer to crack a nut.

The modern "term" for charities and clubs is "independent examination" which for smaller cases can be anyone who knows a bit about accounts etc and is normally just another pair of eyes to look over the book-keeping and accounts to make sure that the Treasurer and other officials aren't making mistakes and aren't pocketing the club's money. Even this light touch independent examination isn't a legal requirement for the smallest of entities, but is regarded as the bare minimum to give some assurance to the rank and file members that their money is being used properly.

What she said.

I'm treasurer of a small walking group. Our 'auditor' is also a member. I prepare the accounts and get all the receipts etc in order, pass them over and they double check I haven't 'lost' anything.

BTW, I took over in a minor emergency: I'd said I was willing to help out as the treasurer had been saying for a couple of years they'd be happy to give up. A few days after the AGM the treasurer had a stroke, so I had everything handed over to me! I then discovered that the bank account only needed one signature, and there were two people authorised to sign.

One couldn't because of the stroke (signature unrecognisable), and the other had not been on the committee for some time, and was nursing a dying spouse.

For a short time I was minding a cheque book with several pre-signed cheques in it :eek::eek::eek: but one of my first acts was to change the signatories and require any two of four.

My next act was to open an account which allowed internet banking, but again input is needed from two people.

As I said to the committee at my first meeting, I know you can trust me, and you think you can trust me, but just because you can doesn't mean you should ...