Charity Funds
Show that each charity fund rolls forward and that restricted and endowment funds were used only as their donors allowed.
- Ledger + charity fund register
- Key analysis in Equity & legal
How the result is read
A charity accounts for its funds separately (Charities SORP FRS 102, module 2): unrestricted funds, designated ones included, are the trustees’ to spend; restricted funds only on the purposes the donor set; endowment funds are capital to be kept. The auditor of a charity reports on whether funds were applied as the law and the donors require (ISA (UK) 250A; Charities Act 2011 s144-s145, the independent examination and audit regimes). A restricted fund in deficit is money spent that the fund never had — a breach of trust unless future income is certain or general funds made it good by a transfer (SORP 2.33). An endowment transferred out is capital spent without the power to spend it (Charities Act 2011 ss281-282). Transfers between funds move money from one to another and so net to nil.
In the application
Charity Funds is filed under Equity & legal, index letter J. "Run all analyses" runs it with every other analysis the ledger and the documents loaded can answer. The worksheet states the population it tested on its face — or "Not applicable" with the reason when a column it depends on is empty — and the Excel workbook the engagement exports files it under J, beside an index of the source files with their SHA-256 fingerprints.
Read it with
Run your next audit file test without the Excel crash.
One free engagement to evaluate, valid 60 days. The ledger never leaves the machine.
- 20 minutes
- Runs on a fictional engagement
- No client data required