Financial reports

Trustees should receive regular financial reports on the financial health of the charity.  

Trustees must apply the assets of the charity in pursuit of its objects or purposes, as set out in its governing document. 

Remember: if trustees delegate day to day financial activities to staff, a sub-committee or to the treasurer, the trustee board still remain ultimately responsible.

Regular and timely financial reports can help trustees fulfil their duties by providing the board with an oversight of financial activities. 

The format of a financial report will vary from charity to charity but should give trustees enough information to understand the charity’s current financial position and its planned future position and be updated regularly. 

For example, financial reports would be expected to include actual income and expenditure compared to budget, a review of the charity’s current fund levels, a budget for the next period and projected future fund levels.

The report should help the board to make decisions about financial matters and to feel satisfied that the charity remains viable and is meeting its legal and other requirements.