Kristina joined Sayer Vincent in 2009 as an audit trainee and qualified in 2012. Since then, she has focused her career in the charity sector working for several large organisations and is now Financial Controller at Sainsbury Family Charitable Trusts. Kristina has also taken up the opportunity to give back to the sector and gain more experience through her role as a trustee. Let’s hear from Kristina about her time at SV and what she’s been up to since leaving the firm:
The Chancellor announced the government’s budget on 28 October 2018. It is great to hear that the Chancellor plans to help charities by increasing the annual limit for trading in a charity from £50,000 to £80,000 turnover (for charities with income over £200,000). This takes it very close to the VAT registration threshold of £85,000 so almost aligning these which is helpful. In addition the decision to allow charities operating Retail Gift Aid to write to those whose donations raise under £20 a year, just once every three years rather than annually as at present, will save charities many thousands of pounds in administration and postage costs. Charity Tax Group was hoping the requirement to write would be removed altogether for these donors. However once every three years is much better than annually and HMRC does remain concerned that, with over 40% of adults not being tax payers, too often gift aid is claimed by non-taxpayers. Click here to download our summary of the key changes affecting charities and social purpose organisations.
Charity Fraud Awareness Week is a week-long annual event that promotes fraud awareness and helps charities become more resilient to fraud attempts. This year, our Risk and Assurance team wrote a series of articles throughout the week covering various aspects of charity fraud and giving our insights on how you can prevent, spot and manage fraud if it should be an issue within your charity. Click the links below to view our articles and get in touch with us if you have any queries. Articles: – How can charities become more resilient against fraud? – Is your charity looking out for red flags and warning signs? – The 5 why’s approach – Fraud response plans – A different sort of fraud…
Amie Woods of the Charity Commission gave the keynote speech on day two of the recent Charity Accountants’ Conference. In covering the current priorities from the Commission’s perspective, she devoted much of her talk to the question of charity fraud. Quoting from the Commission’s April 2018 report ‘Focus on insider fraud in charities’ she said the absence of appropriate controls was the primary enabling factor in either allowing frauds to occur, or in making the charity more vulnerable to fraud. In a survey undertaken for the purposes of the report, the Commission found that 43% of respondents suggested the prime factor was excessive trust or responsibility placed on one individual and 24% were due to a lack of challenge or oversight. The Commission is clearly concerned at the high proportion of serious incident reports that involve charity fraud – while still being concerned that not all reportable incidents are being reported on. There is a clear lesson here for all charities to:
- gain an understanding of their own fraud risks,
- adopt a fraud aware culture that is not based purely in trust
- ensure that appropriate internal controls are in place, and
- understand their reporting requirements should a fraud occur.
Are charity finances meeting the public’s need? This was the big question asked by Joe Saxton, founder of NFP Synergy, when he opened our 2018 Charity Accountants Conference in Birmingham in September. He said:
His message was clear. There’s an imperative and a real opportunity for charity finance teams to help build trust in their charity and the sector more widely by providing clear, well presented, accessible financial information that demonstrates how charities are spending public money. Joe highlighted research that showed that one of the main barriers to charitable giving is that people aren’t clear about how donations are spent. The content and presentation of charity financial reports [annual trustees report and accounts] aren’t helping. He used focus group research to demonstrate what people want from financial reports. The research showed that people simply won’t read long financial reports. They want headline information; they love pie charts with information displayed colourfully, statistics that show impact and in bite sized chunks of information. Less is clearly more. It’s quality over quantity every time and simple and accessible information will get the message home. He asked the audience of charity finance professionals how many of them would show their families and friends their financial reports to explain what their charity does. Very few hands went up! Joe highlighted that some of the issues with the SORP could be to blame for the current state of charity financial reports. He said flaws in the SORP include the fact most public facing reporting is excluded from SORP. In the SORP, the regulated decide what regulation they get and that governance at SORP is poor and change with the SORP is what he describes as ‘glacial’. He highlighted a new report from NFP Synergy which focused on the way in which the Charity Commission’s website publishes charity financial information, which he said isn’t helping the case for transparency. The report, ‘Ten ways the Charity Commission website makes charity finances less transparent’ focuses on the fact charity accounts are all presented in different ways, they are inconsistent, confusing and misleading. Lastly, he pointed out that the public and MPs and the media think charities spend less on the good causes than they would like to see, so the role of the finance team must be to demonstrate how money is spent and the impact of the spending. He concluded by telling delegates, “You are the keepers of the holy grail of reassuring, inspiring, and illuminating financial information to a sceptical world.”
“Charity Accountants are keepers of the holy grail of financial information, but they need to deliver it in a way that codifies and communicates to the public how charity money is spent.”
Neil Watters is currently Head of Finance at the Academy of Medical Sciences. The charity has gone through a period of sustained growth and his role has involved building a new team and implementing a new finance system.
How was your time training and working at Sayer Vincent?I always had a passion to pursue a career in charity finance. Before I started at Sayer Vincent, I was working in the finance team for a small charity in Glasgow but the opportunity to join SV, gaining a wide range of first-hand experience working across so many types of charitable organisations was one I didn’t want to miss. Sayer Vincent provided a very supportive environment throughout my time as a trainee and working as an audit senior after I qualified. Working and studying for the ACA was definitely a challenge, however there were lots of people around for moral support and also guidance throughout. The culture at Sayer Vincent was great and really attracts likeminded people – those who genuinely care about working for social purpose organisations. During my time at SV, I became particularly interested in international NGOs, I was grateful to have the opportunity to work with several INGO clients as well as joining the internal sector group for international charities. The experience and deep understanding I gained of how international charities work really helped me with my first role after leaving practice, as Group Finance Manager at Farm Africa.
What are the lasting skills or experiences that you took from your training at Sayer Vincent?I’m currently Head of Finance at the Academy of Medical Sciences. I joined during a time of rapid growth and change, my role has involved building a new and larger team and implementing a new finance system. My role has been a challenge and I think the experience and knowledge gained at SV has been utilised the most since I started my current role than in any of my previous roles. My experience as an auditor involved looking in depth at systems and controls and writing post audit reports to deliver useful insights – this has been a great asset. My experience advising clients and delivering internal and external audits for various types of clients gave me great insight and experience which has been fed back into my work at the Academy.
Can you share any key lessons learned over the years?Be open to change Transitioning from an auditor to working in a finance team within a charity was a challenge initially. Generally, I’ve found the culture within charities to be similar to Sayer Vincent in many respects which has been helpful, however, the day to day work as a finance manager is very different to that of an auditor and I had to adjust to this change. Analysing things from and external perspective as an auditor is very different however there were a lot of transferable skills and points I was able to apply from my experience. Take time to think strategically and assess priorities In common with many of those working within finance my impulse is often to throw myself into a task and my comfort zone is generally working my way through an immediate problem. As my career has progressed and particularly as I have been involved in an increasing volume of project work as well as being responsible more widely for the strategic direction of the team it has, however, become ever more important to ensure I make time to take a step back from this and review priorities. Completing PRINCE2 project training has been very useful in improving my project management and helping me to balance these aspects of my roles with the day-to-day. Interact with as many people in your organisation as you can Having a lot more interaction with internal stakeholders within the various charities I’ve worked in has better enabled me to gain a more strategic perspective. A key tip from me would be to listen to people and make sure that you fully understand their needs. This really helps with gaining a better understanding of how the organisation works in order to provide a beneficial service which should ideally go way beyond the regulatory aspect of finance. Expect the unexpected In a previous role I was called to travel to Kenya to finalise the country office year end accounts at very short notice due to staffing and control issues. My experience as an auditor working in a new environment and under time constraints really kicked in and has helped me to fulfil several time-pressured tasks since leaving audit.
Making a difference and working in the sectorI really enjoyed my time working as a treasurer at South London Community Music which gave me a closer perspective on the workings of a charity at the trustee level. I’m keen to get back into volunteering again and will shortly be commencing the first stages of becoming a listening volunteer for the Samaritans.
The 2018 Charity Finance Audit Survey is now available for you to complete. This survey provides useful benchmarking information for the sector and we encourage you to complete it because the more responses submitted, the more useful the findings will be for you. Click here for the survey. If you complete it, you’ll be entered into a prize draw for a luxury Christmas hamper and receive a copy of the results. Do forward the link if someone else should be completing the survey on behalf of your charity.
We’d love to hear from individuals seeking to become Chartered Accountants who are committed to completing training for the internationally recognised ACA qualification and would love to work for charities and social purpose organisations. Click here for more information about the role and how to apply.
Alison trained with Sayer Vincent completing her ACA qualification in 2013. After 8 years with Sayer Vincent and working her way up to audit manager, Alison went on to Macmillan to pursue her interest in charity tax.
Training and working at Sayer VincentI didn’t ever consider applying to train at one of the big 4 accounting firms. The fact that all SV clients are charitable organisations was the main attraction to the role for me as I had previously volunteered for a charity and wanted to continue making an impact in the sector. At Sayer Vincent, everyone knows your name and you are treated as a person rather than a number within a huge organisation. The level of support received throughout my training, and continuing post qualification, was second to none. Right from the start, I was given the opportunity to work with and learn from partners and directors, as well as receiving great training and the opportunity to take on responsibility even as a first year trainee. Working full time while studying for the ACA was hard work, but SV is such a supportive, lovely environment which made a huge difference. There were always lots of opportunities to have fun with colleagues as well as receiving a helping hand from others in the firm if there was anything I found difficult.
“I embraced the opportunities given to take responsibility early on during my time at Sayer Vincent. I probably wouldn’t have had the same level of exposure had I trained at a very large firm.”Being given responsibility early on was very rewarding. This has been key to building confidence to progress to management level at SV and moving on to my new role at Macmillan.
Making a difference and working in the sectorI had the opportunity to work with small and large charities, but I feel I made the biggest impact overall when working with the smaller clients. For charities that don’t have the financial expertise they require internally, being able to offer advice and guidance that’s genuinely needed and greatly appreciated was a great feeling. Working with new charities from their first audit, providing support and key insights, watching them grow and significantly increase their income was a highlight of my time at SV. Having the opportunity to work with management and board members of various charities allowed me to gain a lot of insight that I was able to pass on to similar organisations which was greatly beneficial to them and made a huge impact on their growth.
Lessons learnedSV is a firm that most definitely focuses on people. Developing good relationships with members of staff as well as the people we work with when delivering audits and advice is key to delivering a good service. A lesson learned during my time at SV was to focus on gaining an understanding of what the people I was working with actually required and what their capabilities were. I learned not to assume that people knew certain things and to always spend time listening and being mindful of their needs and capabilities. This is something I refer to frequently in my role as a tax advisor at Macmillan when working with various stakeholders within the organisation.
Key achievements at Sayer VincentOverall, I think most organisations don’t tend to particularly look forward to their audits. Over the years, through working with various clients, I’ve developed my ability to build relationships with key charity stakeholders such as finance directors, CEO’s and board members. Receiving great post audit feedback from clients who were initially apprehensive about the audit process was a key achievement during my time as an auditor and manager at SV.
From audit to taxI’ve always had an interest in tax since my early years as a trainee. I took advantage of any opportunities to get involved and was given the opportunity to join the tax group at SV where I was able to gain more experience and a good knowledge of charity tax. I’ve been able to build on this knowledge more at Macmillan while advising on various tax issues and implications. I’m also happy to be able to continue training and knowledge building in my new tax role.
Sayer Vincent has been shortlisted in the Advisory Provider of the Year category for the 2018 Charity Times Awards! Click here to view the full shortlist for all categories.