Article 68 Annual audit or examination of charity accounts
Paragraph (2) applies to a financial year of a charity if—
the charity’s gross income in that year exceeds £500,000; or
the charity’s gross income in that year exceeds the accounts threshold and at the end of the year the aggregate value of its assets (before deduction of liabilities) exceeds £2,800,000.
“The accounts threshold” means £100,000 or such other sum as is for the time being specified in Article 67(3).
If this paragraph applies to a financial year of a charity, the accounts of the charity for that year shall be audited by a person who—
would be eligible for appointment as auditor of the charity under Part III of the Companies (Northern Ireland) Order 1990 (NI 5) if the charity were a company, or
is a member of a body for the time being specified in regulations under Article 69 and is under the rules of that body eligible for appointment as auditor of the charity.
If paragraph (2) does not apply to a financial year of a charity, the accounts of the charity for that year shall, at the election of the charity trustees, either—
be examined by an independent examiner, that is to say an independent person who is reasonably believed by the trustees to have the requisite ability and practical experience to carry out a competent examination of the accounts, or
be audited by such a person as is mentioned in paragraph (2).
This is subject to the requirements of paragraph (4) where the gross income exceeds £100,000, and to any order under paragraph (5).
If paragraph (3) applies to the accounts of a charity for a year and the charity’s gross income in that year exceeds £100,000, a person qualifies as an independent examiner for the purposes of sub-paragraph (a) of that paragraph if (and only if) he is an independent person—
who is—
a member of a body for the time being specified in Article 257D(4) of the Companies (Northern Ireland) Order 1986 (NI 6) (reporting accountants);
a member of the Chartered Institute of Public Finance and Accountancy;
a Fellow of the Association of Charity Independent Examiners; or
who holds such other position or is qualified in such other manner as the Department may prescribe by regulations.
Where it appears to the Commission—
that paragraph (2), or (as the case may be) paragraph (3), has not been complied with in relation to a financial year of a charity within 10 months from the end of that year, or
that, although paragraph (2) does not apply to a financial year of a charity, it would nevertheless be desirable for the accounts of the charity for that year to be audited by such a person as is mentioned in that paragraph,
the Commission may by order require the accounts of the charity for that year to be audited by such a person as is mentioned in that paragraph.
If the Commission makes an order under paragraph (5) with respect to a charity, then unless—
the order is made by virtue of sub-paragraph (b) of that paragraph, and
the charity trustees themselves appoint an auditor in accordance with the order,
the auditor shall be a person appointed by the Commission.
The expenses of any audit carried out by an auditor appointed by the Commission under paragraph (6), including the auditor’s remuneration, shall be recoverable by the Commission—
from the charity trustees of the charity concerned, who shall be personally liable, jointly and severally, for those expenses; or
to the extent that it appears to the Commission not to be practical to seek recovery of those expenses in accordance with sub-paragraph (a), from the funds of the charity.
The Commission may—
give guidance to charity trustees in connection with the selection of a person for appointment as an independent examiner;
give such directions as it thinks appropriate with respect to the carrying out of an examination in pursuance of paragraph (3)(a);
and any such guidance or directions may either be of general application or apply to a particular charity only.
The Department may by order—
amend paragraph (1)(a) or (b), (3) or (4) by substituting a different sum for any sum for the time being specified there;
amend paragraph (4) by adding or removing a description of person to or from the list in that paragraph or by varying any entry for the time being included in that list.
Nothing in this Article applies to a charity which is a company.