Charity risk management systems 'under scrutiny'
Charities
9th June 2009
A planned survey of UK charities will focus on how their finances are being managed in the recession, it has been revealed.
Charles Cox, head of charities at PKF, which is carrying out the research, said that the firm is interested in "how effectively" organisations are handling money, adding that the poll will be "the day of reckoning for risk management systems".
"Over the past year, many of the risks which affected charities have come about, particularly those around income," he explained, adding that "some have been quicker off the mark than others in reducing costs" during the current economic climate.
Mr Cox added that the Competition Commission's Charity Statement of Recommended Practice in 2005 outlined the requirements for trustees to review potential risks and introduce systems to mitigate them.
The Rapidata Charity Direct Debit Tracking Report 2009 suggested that charities have seen a sharp increase in cancellations of direct debits since the crash of Northern Rock.
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