Charities and the Not-For-Profit Sector Introduction Start-up Services The charity world has seen huge change in the last couple of A charity may wish to make use of a trading subsidiary if it is years, both in accounting issues by the introduction of the to undertake commercial as well as charitable activities. We SORP 2005 and in law, through the introduction of the are able to advise on the structure of such arrangements and Charities Act 2006 (not helped by the fact this has been help with the process of incorporating any additional brought in through four different orders). It is little wonder companies. that charity trustees may be feeling overwhelmed by the changes and in need of guidance and clarity. Clubs and Associations Mercer & Hole is well placed to offer the reassurance and We act for a number of clubs and trade associations that advice needed during this time of change. We currently act although do not have charitable status, have received certain for some 50 charities of various sizes with assets up to £58m. exemptions from HMRC. These clients come from a range of sectors, including: Our services in this area include: • The arts • Religious institutions • Accounts preparation • Audit • Social welfare • Education • Specialist taxation advice • Independent schools • Grant making trusts Pension Schemes We offer a range of services that reflect the needs of these varying organisations. The audit of occupational pension schemes is a very specialist area. The Pensions Act 2005 and subsequent statutory Our services legislation is complex and wide-ranging with Pension Trustees facing civil and even criminal penalties for breaching External Audit their duties. A charity may require an external audit due to its size or Trustees require auditors who are experienced and because its trust deed dictates that it must have one. We aim knowledgeable in this sector. Our specialists in this area have to provide an efficient and cost effective audit carried out by many years experience, all staff from junior to manager level knowledgeable staff. We can offer an audit team that have undertake specific and regular training in this area. undertaken specialist charity training to ensure that the staff have a good understanding of the relevant charity rules and We act for over 30 pension schemes with assets up to £260m. regulations, and are best placed to understand the importance of these rules to our clients. We can offer the following services in a cost effective manner: Independent Examination • Accounts preparation • Audit If a charity is exempt from audit it may still require an • Tax compliance • Guidance to pension Independent Examination. Our specialist staff include scheme trustees members of the Association of Charity Independent Examiners and are able to advise clients of their need for an independent examination and undertake the examination in an efficient and timely manner. Accountancy Services In addition to charity audits, we can also assist charities with a range of accounting functions, including the production of year end accounts, setting up accounting systems and advising on suitable accountancy computer software. www.mercerhole.co.uk Mercer & Hole Trustees Limited We have one of the largest Trustee departments outside of London. Our work in this area has now expanded to such an extent that we have set up a specialist trust company, Mercer & Hole Trustees Limited, with responsibility for over 500 trusts, ranging in size from under £100,000 to many millions of pounds. This includes working with charitable trusts to ensure that they comply with the most recent regulatory requirements. Our clients receive assistance in two key areas: • Financial planning, involving the strategic use of trusts Financial Services • Running and administration of trusts, including In April 2008, we acquired the established Financial Services preparation of tax returns, accounts and acting as firm of Nightingale Associates. M&H LLP retaining the name trustee. Nightingale Associates are Independent Financial Advisers (IFAs). Governance Our enhanced services provide comprehensive, impartial Trustees may be accountable if a loss is incurred as a result of advice tailor made to each individual client's circumstances. failure. Good Governance in charities is essential to ensure Our investment recommendations are made after careful the confidence of key stakeholders. research taking into account our client's objectives, charges, timescale and attitude to risk. We are also able to review Our specialist staff are able to advise trustees on how to run clients' existing investments to ascertain if they are still suited an effective board, review current systems and suggest to their requirements. improvements to internal controls and improve risk management. Insolvency It helps ensure that an organisation is forward thinking, It is an unfortunate fact that in the current financial climate, trustees are knowledgeable about their duties, and the some charities may face financial difficulties which may organisation is effective and properly run. threaten the continuation of the organisation. VAT We have a dedicated team of Licensed Insolvency Practitioners and Turnaround and Rescue Specialists with wide experience VAT, if it applies to a charity, can be very complicated in helping distressed organisations return to good financial especially where the partial exemption rules apply. Our VAT health and profitability. experts are available to help not only with advice on VAT rules and regulations and how they apply to individual organisations but also with VAT registration, review of VAT calculations and assisting with HMRC investigations. Taxation We are well equipped to provide specialist advise on: • Application for charitable status with the Inland Revenue • Corporate tax issues relating to trading subsidiaries and gift aid • Routine advice on PAYE and National Insurance for those charities running a payroll system. www.mercerhole.co.uk Charities and the Not-For-Profit Sector Our Team At Mercer & Hole considerable importance is placed on staff continuity, as we believe it is important to build on the knowledge of a client year on year. Each new client is introduced to a lead partner who remains the main contact as the relationship develops, acting as an adviser, ensuring continuity of knowledge, attending all key meetings and being available by phone or face-to-face as required. We also introduce a team who work closely with the partner and understand our approach to service. All our staff working on specialist clients attend regular training courses to ensure their knowledge is completely up to date. We have two charity specialists who have obtained the Diploma in Charity Accounting issued by the Institute of This ICAEW Diploma acknowledges expertise and experience in Chartered Accountants in England and Wales. charity accounting and finance. About Mercer & Hole Founded in 1905, Mercer & Hole is a top 50 firm of Chartered Mercer & Hole is a founder member of TIAG an international Accountants, with 20 partners and around 170 staff. The firm network of accountants through which we can link our clients specialises in providing services to both businesses and private who require accountancy assistance abroad, with our partner clients and operates from offices in St Albans, London, Milton firms. Keynes and Northampton. Our philosophy is to provide a personal partner-led service with a high level of technical As part of our commitment to provide international services to expertise. UK companies and foreign organisations, Mercer & Hole has registered under the US’s Public Company Accounting As a firm, we provide audit, accountancy and taxation services Oversight Board (PCAOB). to our clients and expertise in a wide range of niche services including business development, rescue recovery and As a result of this registration Mercer & Hole can now act not insolvency, financial services, outsourcing and trust advice and only for subsidiaries of private US companies but also for administration. subsidiaries of listed US companies, even when the UK company is a ‘substantial’ part of the group. Mercer & Hole has a broad client base including individuals, families, start-up firms, small to medium sized businesses and UK divisions of multi-national enterprises. If you would like to discuss our charities and the not-for-profit sector services further, please contact your local partner below. Paul Webster Andy Crook Gary Farnes Mike Reed Joint Managing Partner General Practice Partner General Practice Partner General Practice Partner Email: email@example.com Email: firstname.lastname@example.org Email: email@example.com Email: firstname.lastname@example.org Tel: (01727) 869141 Tel: (020) 7353 1597 Tel: (01908) 605552 Tel: (01604) 669330 Gloucester House, 72 London Road The International Press Centre Silbury Court, 300 Pavilion Drive St. Albans 76 Shoe Lane 420 Silbury Boulevard, Northampton Business Park Hertfordshire AL1 1NS London EC4A 3JB Central Milton Keynes MK9 2AF Northampton NN4 7YE www.mercerhole.co.uk Mercer & Hole is registered by the Institute of Chartered Accountants In England & Wales to carry out company audit work. Cha01/08 Financial Services provided by M&H LLP trading as Nightingale Associates. Nightingale Associates is authorised and regulated by the Financial Services Authority.
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