Charities need 'good internal payment control'
Charities
4th June 2010
Charities need good internal controls to ensure payments of expenses are transparent and correctly calculated.
This is according to the Charity Commission (CC), which recently responded to a new report by the Independent Expert Group on Expenses.
The report reminds organisations of the importance of meeting requirements set out in the Statement of Recommended Practice.
However, the commission also addressed some of the questions commonly asked regarding this issue, such as what is actually included in trustees' expenses, what must be disclosed in statutory accounts and whether or not expenses claimed by senior staff should be disclosed.
"Trust and confidence in charities depends on their good governance and accountability," the CC added.
Some of the common errors made when reporting the expenses of trustees within statutory accounts include confusion surrounding whether amounts paid to third parties should also be included - but the SORP clarifies this issue, the group explained.
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