Review Project Charity Review Report

Transcription

1 V2 9/11 Review Project Charity Review Report Project theme: Financial Controls and Risk Awareness Name of charity: Date of meeting: Name of those present at the Review Meeting: Date of report: Name of reviewer: Main topics explored by the project: (1) Strategy and Planning (2) Overview of risk awareness & management (3) Internal financial controls (4) Fraud & financial abuse management (5) Information and communication Charity s income band: 0-250k Over 250k - 500k Over 500k - 1m Over 1m - 5m Constitutional status: Please tick as applicable Unincorporated Incorporated

2 Report contents A B C D E Reviewer s findings General awareness Reviewer s findings Governance topics Reviewer s overall rating of the charity s performance in the governance topics Reviewer s findings Other themes emerging from the reviews Other areas for comment 2

3 A. Reviewer s findings General awareness This section contains a summary of the Reviewer s discussion with the charity in relation to key challenges and opportunities facing the charity, and the use of guidance that is already available to the charity. Key issues will be summarised along with similar information from other reviews into an anonymised report for the Charity Commission. 1. Key principles of financial control and risk awareness What 5 key challenges and opportunities are most affecting the charity currently? 2. Financial guidance Do the trustees use available guidance and how useful do they find it? Do the trustees consider that there are areas of financial management where further guidance for the sector is required? 3. Innovation & good practice Does the charity have any examples of good practice from their financial control policies, procedures and practices that they might wish to share for the benefit of the wider sector? (Please ask if the trustees are happy for the information to be reported to the Commission for possible sharing.) 3

4 B. Reviewer s findings Governance topics This section covers significant risks or challenges identified from the review that have a direct relationship to the governance topics specifically selected for exploration in this series of reviews. The same topics are being used for all charities taking part in these reviews. This will be a concise summary of any risk or challenge. Key issues will be summarised along with similar information from other reviews into an anonymised report for the Charity Commission. The suggested next steps will be listed and prioritised. If no significant issues or suggested next steps arise, the Reviewer will write N/A under the relevant heading. Please note that the prioritisation is only the reviewer s personal assessment. 1. Strategy and Planning How is financial risk management considered in relation to the wider organisational planning of budgets and operational activities? Are there areas of the governance of the charity that present a particular risk or are particularly strong in relation to the safeguarding of charitable funds against abuse? 2. Overview of risk awareness & management Have the trustees categorised the risks to their charity into types of risk (for example, governance, operational, financial, environmental or external and compliance with the law or regulation)? Are financial risks to the charity regularly reviewed and, if so, how frequently? How are the identified risks proactively managed or minimised? Does the charity maintain a risk register and how is this reviewed and reported on, and with what frequency (monthly, periodically or annually)? Do all of the trustees take an active role in ensuring that there are adequate financial controls in place which are working properly? Is there a standing agenda item for Financial Risk Management Reports at each meeting of the trustees or appropriate risk management sub-committee? How are trustees and staff made aware of the risk of financial crime and abuse and how the charity may be vulnerable? How is the level of trustee and staff awareness assessed? 4

5 B. Reviewer s findings Governance topics 3. Internal financial controls Are there adequate financial controls in place to safeguard the assets and funds of the charity against fraud or other types of financial abuse such as those set out in CC8 Financial Controls Checklist (in particular sections C, D and E)? Do the trustees carry out an annual review of the internal financial controls? Are the trustees able to demonstrate appropriate segregation of duties has been maintained to provide automatic 'double check' in key areas such as collections (and post), procurement, payroll, bank reconciliations and payments? Do any of the trustees have financial management expertise? 4. Fraud & financial abuse management What policies and procedures are in place to safeguard the funds of the charity? Do the policies and procedures cover the relevant areas of financial risk including fraud risk (for example, a fraud response plan)? Are the trustees aware of their responsibilities in relation to relevant legislation including the Bribery Act? To what extent are the policies and procedures set out in the system of internal financial controls embedded in the daily running of the charity? How often are the policies reviewed to respond to changing circumstances? Does the charity have procedures for reporting suspicions of fraud or other financial abuse internally, and where appropriate to Action Fraud and the Charity Commission? Is there a named individual responsible for fraud and other financial abuse issues? How and when does that individual report on fraud issues? 5

6 5. Information and communication Are the trustees provided with regular information about the financial performance of the charity (for example, management accounts)? What steps do the trustees take to ensure this information is accurate? Do the trustees discuss the financial performance of the charity at each of their meetings? Are terms of reference in place for any financial risk sub-committee, or similar sub-group of the trustee board to report to the full board of trustees? C. Reviewer s overall rating of the charity s performance in the governance topics in Part B The reviewer should look at the issues that emerged from the topics in Part B and give an overall view of the charity s performance in each topic. Using the following score system to rate each topic: 1 = Generally strong governance trustees to review at regular intervals 2 = Some gaps in governance - improvements should be considered 3 = Significant gaps in governance improvements should be considered urgently Please note that the rating is only the reviewer s personal assessment. This information will be pooled with similar results from other charities taking part in this series of reviews. It will help form a picture of where more or better information, guidance and advice might be needed to be targeted to support charities better. Reviewer s rating of Part B topics ) Rating: Topic 1 Topic 2 Topic 3 Topic 4 Topic 5 6

7 D. Reviewer s findings Other themes emerging from the reviews This section covers themes outside the governance topics selected for exploration in these reviews, but which the reviewer considers to be significant for this charity. This will be a concise summary of the nature of the risk or challenge and its potential consequences. Key issues will be summarised along with similar information from other reviews into an anonymised report for the Charity Commission. The suggested next steps will be listed and prioritised. If no significant issues or suggested next steps arise, the Reviewer will write N/A under the relevant heading. Please note that the priorities are only the reviewer s personal assessment. 1. [Theme 1] 2. [Theme 2 etc] 7

8 E. Other areas for comment V1 8/11 8