Specialist Outlook

Top UK charities spend £62m of charity income on audit fees

03 February 2014

First bi-annual Charity Audit Spotlight Report released by Charity Financials

Charity Audit Spotlight, published today by Charity Financials, examines the current state of the charity audit market for the top 5,000 UK charities. 
 
Charity Audit Spotlight uncovers the cost of audits for the UK’s charity sector and reports that the top 5,000 charities paid out £61.8m in fees last year. The report also discloses which charities are paying out the most for their audits: the Wellcome Trust and Nuffield Health, both spending £300k in audit fees.
 
The report ranks the top 50 auditors, in terms of fees generated, and reveals that Crowe Clark Whitehill LLP tops the table with £5.4m in fees from 250 charity clients. 
 
Interestingly, the report found that, of the 934 auditing firms, 55% have only one charity client. In fact, just 2% of auditing firms represent half of the top 5,000 UK charities. Baker Tilly holds the top spot for number of charity clients with 294 in total, a 5.9% market share. 
 
Using historical data for the past 10 years, the report also shows that 18% of the top 5,000 UK charities have remained with the same auditor for at least a decade. However, a general trend is that charities appear to change auditor after four years.  
 
This report is the first of its kind to publish audit details for 5,000 UK charities. It is also the first charity audit report to use historical data to identify trends and monitor changes over a 10 year period. For example, Crowe Clark Whitehill LLP has held the top position (in terms of fees) for the past three years after taking the top spot from PricewaterhouseCoopers LLP.  The report also shows that the top 10 ranking firms (by number of clients) has remained unchanged for the past two years. In Charity Financials which is the source of the data contained in the report subscribers are able to track number of clients gained, lost or retained by each auditor.
 
“We hope that charity financial professionals will find this data useful when selecting a new auditor” said, Mark Pincher, Data & Development Manager, Charity Audit Spotlight.
 
This is the first bi-annual Charity Audit Spotlight Report. To download the report visit www.charityfinancials.com. It is part of a series of quarterly free reports from Charity Financials. The Spotlight series aims to provide charities with sector-specific financial data to help them make better informed decisions. 
 
Charities and third sector advisors interested in subscribing to Charity Financials can request a demo at www.charityfinancials.com.
 
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Mark Pincher

Mark Pincher is data editor and development manager for Charity Financials and Smee & Ford.

www.charityfinancials.com | www.smeeandford.com

 

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