CHARITIES BILL
Amendment 140
Page 26, line 14 - leave out from beginning to "at" in line 15
As drafted, the Bill provides for a complicated double test for a charity to satisfy before it can determine whether or not it is required by statute to have its accounts audited - this requirement would (as drafted) apply if either:
the charity's gross income in that year exceeds £500,000; or
the charity's gross income in that year exceeds the accounts threshold (currently £100,000) and at the end of the year the aggregate value of its assets (before deduction of liabilities) exceeds £2.8 million.
The second alternative of this test seems unduly complicated. It would seem sensible that a charity with assets of over £2.8 million should in any event be required to have an audit, even if those assets are functional assets or for some other reason do not produce high levels of income.
Accordingly it is submitted that the second alternative of this test should be simplified by simply referring to the asset value threshold of £2.8 million, and that the reference to income level in this part should be deleted.
