1. ICAEW and Charity Commission Pilot
Findings
NICK BROOKS

2. Project outline Review of financial controls and risk awareness
25 volunteer charities matched to 25 ICAEW members
Reports reviewed by Anne Davis, Head of Charities at ICAEW and myself, as Chair of the Reviewers Panel
Reviewers panel
Final report

3. Content of review
This was established between the Commission and the ICAEW and covered five governance topics:
Strategy and planning
Overview of risk awareness and management
Internal financial controls
Fraud and financial abuse management
Information and communication (focusing on internal financial reporting)

4. Content of review
Reviewers were also asked to include a general awareness discussion on key priorities and challenges found by the reviewed charities.
Finally, reviewers were asked to rate the performance of the charities in the five topic areas into three categories, generally strong, some gaps or significant gaps.

5. Topic areas Strategy and planning 56% strong controls 36% some gaps
8% significant gaps

6. Topic areas Overview of risk awareness and management
32% strong controls
56% some gaps
12% significant gaps

7. Topic areas Internal financial controls 40% strong controls
48% some gaps
12% significant gaps

8. Topic areas Fraud and financial abuse management 28% strong controls
56% some gaps
16% significant gaps

9. Topic areas Information and communication 52% strong controls
36% some gaps
12% significant gaps

10. General themes Funding Governance Fraud prevention policies
real concerns
Governance
difficulty in attracting trustees and volunteers
lack of financial understanding
Fraud prevention policies
generally weak
Advice and guidance
too much volume
not proportionate to size

11. Way forward
Develop a culture of mergers, collaborations and shared services
Need to encourage more to volunteer as trustees
More streamline approach to guidance