The Charity Commission has recently updated its guidance on financial controls to include risks presented by newer technology, such as cryptoassets.
Internal financial controls are important for all charities. They are essential checks and procedures that help you to protect your charity’s assets, identify and manage risks, and make informed decisions about your charity’s financial position.
The Charity Commission has recently updated its guidance on financial controls (known as CC8) to include risks presented by newer technology such as cryptoassets. The updated guidance explains the role strong internal financial controls play in ensuring trustees can safeguard their charity’s resources.
According to the commission, the restructured guidance is more concise, clearer and covers issues that were not in existence or widely relevant to the sector when first drafted. The guidance also includes an updated checklist to help the charity sector – which generates an income of £80 billion a year in England and Wales – put it into practice.
The Department for Science, Innovation and Technology has published research which reported that 24% of charities experienced a cyber-attack in the last 12 months. New sections of the guidance cover issues including using mobile payments systems, such as Google Pay and Apple Pay, and considering donations of cryptoassets, such as cryptocurrency and NFTs.
UPDATED ADVICE ON TRADITIONAL RISKS
The commission has also refreshed existing advice on more traditional risks such as fundraising and holding public collections, making payments to related parties and operating internationally, and added a section on accepting hospitality.
You can access the full guidance on the Charity Commission website: Internal Financial Controls for Charities.
The Third Sector Support Wales (TSSW) Knowledge Hub includes resources to help charities with financial management. This includes e-courses on Setting up a financial system and Financial guidance and oversight for trustees. It’s free to register on the website to access these and many other resources.
You may also be interested in this blog on the topic of managing your finances during challenging times.