Practical advice to membership organisations - … · Practical advice to membership organisations...
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Practical advice to membership organisations
www.moorestephens.co.uk PREC ISE . PROVEN. PERFORMANCE .
Practical advice to membership organisations
The key issues facing membership
organisations are:
• providing value for money services
relevant to members’ needs;
• supporting members to meet changing
regulatory requirements and embracing
technical advances;
• working in partnership with the industry
on sector-wide issues to enhance training
and standards;
• setting and maintaining professional
standards to enhance the reputation;
• attracting new students with high quality
training and valued qualifications; and
• maintaining and increasing membership
numbers.
As a firm we advise a broad range of
membership organisations spanning
professional institutes, regulatory bodies
and trade associations. Our services include:
• audit and accounting;
• advice on corporate structures;
• advice on employment status;
• governance structure and practice;
• risk management reviews;
• information technology;
• strategic planning;
• tax advisory and planning;
– strategic tax planning;
– tax compliance;
– VAT compliance and consultancy.
No two membership organisations are alike as they are structured to serve the best interests of their members. However, they do all have similar governance structures with an elected non-executive council driving policy and strategy, which is carried out on their behalf by the senior management team.
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Financial reportingMany clients in this sector are not
incorporated under the Companies Act,
which means there is greater scope for
diversity of financial reporting under UK
GAAP. As the readers of the accounts cover a
wide spectrum, from members to regulators,
we place great importance in encouraging
clients to be transparent and provide full
disclosure in their annual reports.
VATMost professional bodies have some
element of their activities which are not
standard rated supplies, meaning there are
restrictions in the recovery of input tax.
There are also issues with regard to
potential VAT liabilities on digital material.
We have considerable experience in
successfully agreeing with HMRC partial
exemption methods which have significantly
reduced the burden of VAT for organisations
and their members.
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“ Our whole team has a strong relationship with Moore Stephens. We get an efficient audit and are in touch with them throughout the year when they provide sound business advice.
Moore Stephens has excellent sector knowledge which, along with their in-depth understanding of our organisation, benefits us immensely. We are assured that we are working in line with sector best practice, whilst remaining commercially aware.”
Stewart GilmourDirector of Finance and Services
Chartered Institution of Building Services Engineers
“ Moore Stephens provides us with audit and tax services. We have worked with them for a number of years and they have provided a very good joined up service across the whole team, adding real value for our business wherever they can, to become our trusted advisers.”
Robert Ing, Finance Director, Institute of Chartered Secretaries and Administrators (ICSA)
Corporation tax statusSpecial tax rules and tax exemptions are
available to membership organisations
which can be utilised to significantly reduce
their corporation tax burden or even fully
eliminate them. Many membership
organisations are carrying on activities that
are not subject to corporation tax.
Our specialist expertise in this area supports
your organisation in reducing its corporation
tax liability by focussing on the following:
• properly identifying exempt income and
taxable income;
• allocating deductible expenditure
optimally between taxable income and
exempt income;
• fully utilising all reliefs and allowances;
• restructuring the activities of the
organisation where appropriate;
• recommending the levels of charitable
donations if there is a related charity.
We are also experts at dealing with
corporation tax exposures.
Branches and governanceWith plateauing or declining membership
numbers, many membership organisations
are becoming increasingly aware of the
importance of good governance.
To encourage a rise in member numbers,
they need to prove they are working in the
best interest of their members, and this
includes creating a strong control
environment in which to manage their
resources and protect the reputation of the
organisation.
Membership organisations should ensure
the control environment covers all regions
and branches and seek to enhance control
activities where necessary. Additional
control procedures could involve:
• requesting that regions and branches
hold their funds in the same bank as
head office funds, and that member(s) of
the central finance team are signatories
on the accounts;
• increasing the number of returns
submitted by regions and branches (for
example, to request quarterly returns) in
order to have greater and more frequent
oversight of the branch activities;
• requesting that documentation is
submitted in a timely manner to support
large or unusual transactions included
in returns;
• performing spot checks on regions and
branches to ensure they are following
organisation-wide procedures, for
example, in relation to authorisation of
expenses;
• completing more official ‘branch audits’
whereby a sample of transactions are
checked for compliance with systems
and procedures and results fed back to
the region or branch in the form of a
formal report.
We can assist in ensuring you have the most
appropriate controls in place.
Governance, risk and assuranceOur Governance, Risk & Assurance group
offers a range of services designed to
support boards in maintaining robust
governance and assurance frameworks and
managing risks effectively. We work with
organisations in this sector, advising on their
governance structures, providing comfort
on their control environments and helping
to embed transparency and accountability.
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Corporate financeOur Corporate Finance team is able to work
alongside your management and finance
teams to support your projects and future
planning. The team has significant
experience of working with membership
organisations, having previously delivered
projects ranging from mergers and raising
investment, to financial reviews and
managing disposals.
Fraud and corruptionUnfortunately, membership organisations
are as at much risk to fraud and corruption
as any other organisations. Rather than
waiting for it to occur, a more proactive
approach can deter and prevent fraud as
well as detecting it if it occurs. With the
ever-changing landscape and nature of fraud
and corruption, it is critical to ensure you
effectively manage your risks through the
implementation and constant updating of
effective policies and strategies.
We offer a range of services designed to
help you:
• create and embed a strong anti-fraud/
corruption culture;
• build deterrence and prevention strategies;
• develop a range of detection mechanisms;
• assist in investigating and pursuing
a range criminal, civil, disciplinary and
regulatory (or any combination of)
sanctions.
OutsourcingOur Outsourcing group provides a broad
range of services to membership
organisations, from outsourcing the whole
finance function to working with existing
finance teams.
We offer the following services:
• onsite visits to ensure all accounting and
bookkeeping records are of a certain
standard;
• bookkeeping;
• preparation or review of VAT returns;
• assist with consolidated accounts;
• training on software;
• ad-hoc investigatory services into
discrepancies in accounting;
• payroll services;
• reviewing current accounting IT
infrastructure and recommend changes
as appropriate;
• installation of new accounting software
and provision of on-site training.
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Wealth managementOur Wealth Management team is committed
to providing the highest quality investment
and technical financial planning advice to
personal, corporate and trust clients. Our
highly qualified and experienced advisers
provide independent advice which is
unbiased, unrestricted and tailored to
clients’ specific circumstances.
Providing a bespoke financial planning
service requires a complete understanding
of our clients’ financial position and their
objectives for the future. We do this
through our consultation process and our
services typically include:
• retirement consultancy advice;
• investment planning;
• cash flow modelling;
• planning for international clients;
• employee benefit schemes, including:
– pension arrangements;
– group insurance;
– salary exchange;
– flexible benefit consultancy.
“ We’ve worked with Moore Stephens for a number of years and in that time we have received a personalised service from the whole team which we value.
They understand our business and what we are trying to achieve and therefore we think of them as more than just our auditors, but also as trusted advisers.”
Carolyn Watson, Head of Finance, CRM and Corporate Service, ABTA
www.moorestephens.co.uk
Moore Stephens LLP, 150 Aldersgate Street, London EC1A 4AB T +44 (0)20 7334 9191www.moorestephens.co.uk
We believe the information contained herein to be correct at the time of going to press, but we cannot accept any responsibility for any loss occasioned to any person as a result of action or refraining from action as a result of any item herein. Printed and published by © Moore Stephens LLP, a member firm of Moore Stephens International Limited, a worldwide network of independent firms. Moore Stephens LLP is registered to carry on audit work in the UK and Ireland by the Institute of Chartered Accountants in England and Wales. Authorised and regulated by the Financial Conduct Authority for investment business. DPS28996 November 2015
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