Part 8

Charity accounts, reports and returns
CHAPTER 3

Audit or examination of accounts

Audit or examination of group accounts

Audit of accounts of larger groups
151
1
This section applies where group accounts are prepared for a financial year of a parent charity under section 138(2) and—
a
the aggregate gross income of the group in that year exceeds the relevant income threshold (see section 176(1)), or
b
the aggregate gross income of the group in that year exceeds the relevant income threshold and at the end of the year the aggregate value of the assets of the group (before deduction of liabilities) exceeds the relevant assets threshold (see section 176(2)).
2
This section also applies where—
a
group accounts are prepared for a financial year of a parent charity under section 138(2), and
b
the appropriate audit provision applies in relation to the parent charity’s own accounts for that year.
3
In this section “the appropriate audit provision”, in relation to a financial year of a parent charity, means—
a
(subject to paragraph (b), (c) or (d)) section 144(2) (audit of accounts of larger charities);
b
if section 149 (audit or examination of English NHS charity accounts) applies in relation to that year, section 149(2);
c
if section 150 (audit or examination of Welsh NHS charity accounts) applies in relation to that year, section 150(2);
d
if the parent charity is a company—
i
section 144(2), or
ii
(as the case may be) Part 16 of the Companies Act 2006.
4
If this section applies in relation to a financial year of a parent charity by virtue of subsection (1) or (2), the group accounts for that year must be audited—
a
(subject to paragraph (b) or (c)) by a person within section 144(2)(a) or (b);
b
if section 149 applies in relation to that year, by a person appointed by the Audit Commission;
c
if section 150 applies in relation to that year, by the Auditor General for Wales.
5
If this section applies in relation to a financial year of a parent charity by virtue of subsection (1)—
a
(subject to paragraph (b)) the appropriate audit provision applies in relation to the parent charity’s own accounts for that year (whether or not it would otherwise so apply);
b
if the parent charity is a company and its own accounts for that year are not required to be audited in accordance with Part 16 of the Companies Act 2006, section 144(2) applies in relation to those accounts (whether or not it would otherwise so apply).
6
Subsections (4) and (6) of section 149 apply in relation to any appointment under subsection (4)(b) as they apply in relation to an appointment under section 149(2).
7
References in this Act to an auditor have effect in relation to subsection (4)(c) as references to the Auditor General for Wales acting under subsection (4)(c) as an auditor.