Recent years have not been kind for charities as donations and grants have been cut. Both charities and donors are wondering if their cash is being used effectively. So it's even more important to keep a tight rein over financial matters, a responsibility that is becoming evermore a focus for trustees.
However finances are often the area that receives insufficient attention. If you're a trustee, are you receiving prompt, sound, regular financial reports which you understand. If there's a doubt here then there's a risk.
So how can a charity improve its financial management - it has to start from the trustees, preferable with good finance and business skills on the board, demanding the information in the first place. Then it's a matter of finding the quality and keeping to it, promptly. To succeed, it must pass the eyeball test - is it working and understood, simple really.
Here's some more information Anthony Pilkington FCA Managing Director, BookCheck Ltd