Many small charities and PTAs must have their accounts independently examined before filing with the Charity Commission. Examination is less burdensome than a full audit, but it still needs tidy books and cooperation from the treasurer.
Examination versus audit
An audit gives a high level of assurance and is required for larger charities. An independent examination is a lighter review for smaller income bands set by charity law. The examiner checks whether accounts are plausibly correct and consistent with records, rather than performing exhaustive testing. Thresholds change; verify current limits on the Charity Commission website.
When you need one
If your gross income exceeds the audit threshold but not the highest tiers, or falls in the band requiring examination only, you must appoint a qualified independent examiner. Even if you are below mandatory examination, trustees may choose one for credibility at the AGM.
Below-threshold charities may still choose examination after a difficult year, a treasurer departure, or a large one-off grant. The cost buys credibility with members and funders.
Choosing an examiner
Examiners must be independent of the charity and have the right skills. Many PTAs use a local accountant volunteering pro bono, or a firm charging a modest fixed fee. Confirm they are eligible for your charity's income level. Conflict of interest rules exclude active trustees and staff. Volunteer examiners must still be independent and competent.
Fees vary from a few hundred pounds to more for complex charities. Some accountants waive fees for local PTAs. Agree scope in writing: what they will review, by when, and what you must supply.
What the treasurer prepares
- Full-year cash book or ledger export.
- Bank statements and reconciliations for every month.
- Petty cash records and float counts.
- Major invoices, contracts, and grant letters.
- Gift Aid schedules and declaration samples.
- Minutes approving significant spending.
- Prior-year accounts for comparison.
Send a tidy zip or shared folder plus a one-page exceptions list (large items, related parties, one-offs). Examiners charge by time; chaos costs the charity money. Respond to queries within days, not weeks. See year-end for treasurers.
What the examiner does
They review records, ask about unusual items, and may sample transactions. They produce an independent examiner's report attached to the accounts trustees approve. They do not run the charity or fix your books, though they may suggest improvements.
Expect questions about large one-off payments, related-party transactions, and whether cash income matches event records. Prepare a short narrative for anything unusual before the first email arrives.
Examiners sometimes spot donation income that does not match Gift Aid claims, or trading mixed with gifts. Reconcile donation categories first. See preparing claims and record-keeping.
Timeline and after
Book early, especially around March year ends when accountants are busy. Allow weeks between year end, examination, AGM approval, and Charity Commission filing. See the annual return guide.
Many charities attach a trustees annual report. Treasurers supply figures; trustees write the narrative. Coordinate early so the examiner receives consistent drafts.
Trustees approve the final accounts and file the annual return. Store the examiner's report with permanent records. Address any weaknesses before the next treasurer starts. Use the handover checklist if you are leaving.
If the examiner suggests bookkeeping improvements, bring them to the committee with cost estimates. Examination is a health check, not an attack on volunteers.
Rules and thresholds change. Check current Charity Commission guidance. This is general information, not legal advice. Questions: support@vasker.co.uk.
Next steps
Check whether examination applies to your income, contact an examiner, and reconcile your bank. Browse more guides.