Ask the expert: How should our charity’s accounts reflect uncertainties over local authority funding?
Disclose your position but prove you will survive for the next 12 months, says Helena Wilkinson from accountancy firm Chantrey Vellacott DFK Q. The majority of our funding, some 80%, will be retendered by the local authority and we will only know the outcome by December. Our accounts are due to be signed in September. How do we deal with this? Helena says: With regard to the accounts themselves, the issue here relates to the going concern concept and a useful guide is available from the Financial Reporting Council on going concern and liquidity risk – written for directors of UK companies but equally useful to all types of entities. Read the Rest