# UK finance directors believe charity finances are open to abuse

- Link: https://fundraising.co.uk/2003/10/15/uk-finance-directors-believe-charity-finances-are-open-abuse/
- Published: 2003-10-15T23:00:00+01:00
- Author: Howard Lake

More than half of UK finance directors believe charity sector finances are open 
to abuse, according to this week’s Reed Accountancy/Accountancy Age Big Question
survey.
The concern is based on the experience of many. For example, John Davies,
finance director of Southampton-based solicitors Moore & Blatch issued a stark warning:“
As a trustee of a registered charity I would say there is always a risk of abuse,”
he said.

 

 

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Mike Paull, finance director of Surrey-based technology company Actel, explained
the two main areas of risk: “Most small charities have ‘one-man-band’ treasurers
who perform the whole function themselves and no one checking their work. The risk
in this situation is either they do not have the competence to do the job to the
required level, or they have complete control and therefore the ability and temptation
to siphon off funds,” he said.

 

 

One anonymous director also remarked there was little scope to enforce guidelines
and monitor organisations: “My experience of the Charity Commission is that it is
fairly toothless,” he said.

 

 

Richard Post, managing director, Reed Accountancy said: “If over half of UK finance
directors believe UK charities are open to financial abuse, there is a need to examine
efficiency and security within these organisations.

 

 

“This is especially concerning as our previous surveys have shown our respondents
to be very sympathetic towards charities. Our previous surveys on financial abuse
have shown no organisation is immune to these

 

risks.”

 

 

The survey involved 110 directors. They were asked: “Are charity sector finances

 

at risk of abuse due to poor financial controls?”

 

 

The results were:

 

 

Yes definitely: 18%

 

Yes probably: 34%

 

Neutral: 28%

 

No probably: 10%

 

No definitely: 10%

 

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