We have been asked by a group whom we are supporting to be a referee for a Lottery bid they are submitting. We have not done this before and wondering what might be any possible implications of us doing this? Many thanks

I've just attended my local village hall's AGM at which their annual report and accounts were presented.  At present they are employing a professional accountant to audit the books at a cost of £588 a year.  On a total annual turnover of just under £9,000 this represents a significant amount.

I pointed out under the Charities Act, organisations with a small turnover (I forget the exact threshold) are not obliged to have a professional audit, and can instead have their accounts "inspected" by a suitably experience lay person, who may well offer to do this on a voluntary basis.

Is this correct? 

If the management committee choose to have their accounts inspected rather than audited, would this be acceptable to funders? For example, the village hall currently receives discretionary rate relief from the local council, and in applying they have to provide a set of "audited accounts".

Committee members are also concerned that a lay inspector would be unlikely to have any professional indemnity insurance.  Is this a valid concern?  The village hall is a registered charity. 

One of my CAF clients is a registered charity but not a company limited by guarantee and the treasurer is resisting all requests by the board to become incorporated saying that trustees have no liabilities as the charity has insurance etc. and that they should wait for the Charity Commission Incorporation act and legislation to come into force next year.

Can you advise as to a way forward. If they become a Co Ltd by Guarantee now will it be particularly onerous and expensive to incorporate into the new system in 2008 ?

What are the steps should they take at the moment to reassure trustees and provide security ?

At what size must a company have their accounts audited as compared to inspected? And likewise with a charity?