Guide to completing the year end Branch return2016

Contents: Page:

Guidance for Treasurers

1) Introduction 22) When do I need to submit my annual return? 23) Which form do I need to fill in? 24) Who checks my annual return before submission? 35) General principles 46) Completing the Receipts and Payments Form 87) Completing the Branch Accounts Form 148) RBL Branch authority to disclose information Form 309) Branch Treasurer Checklist 32

Guidance for Auditors and Independent Examiners

10)The Royal British Legion – audit requirements and criteria 3311)Terms of Reference for Audit or Independent Examination 3512)Independent examination – Planning Checklist 4013)Independent examination – Documentation Checklist 4114) Independent examination – Work Programme 42

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1. Introduction

This guide is designed to help Branches complete their annual return.

The Royal British Legion has a legal obligation to produce annual, audited accounts which include the results, assets and liabilities of all Branches, Counties, trusts and companies within The Royal British Legion Group. Branches play an important role in ensuring the accounts are accurate and complete and that the Legion’s auditors have all the information they need to complete their audit.

The form your branch needs to complete will depend on the value of its assets, the level of income & expenditure for the year and whether or not the Branch has a property. The relevant criteria are set out in Section 4 below.

Please take the time to read this Guide so that you are clear on the information we need from your Branch. Should you have any queries, please contact the branch accounting team at branchaccounts@britishlegion.org.uk or to speak to the Branch & Trust Accountant telephone 0203 057 7039.

2. When do I need to submit my annual return?

Your return must be submitted by 30 September 2016 at the latest. This is the date stipulated in the Royal Charter. The Membership Council will be informed of non-returns and action will be taken against those Branches which fail to submit annual returns for two consecutive financial years.

If you are unable to complete your branch return or believe you may struggle to meet the 30 September deadline you must notify your Membership Support Officer as soon as possible.

The Legion’s Annual Accounts can only be completed once we receive your return. Once the form has been signed by the Branch Committee and the Auditor/Independent Examiner, it should be immediately submitted to your County or District Secretary; you do not need to wait for the Branch Annual General Meeting to approve the return.

To reduce cost, Branch Treasurers should submit the original form to their Membership Support Officer, along with copies of the bank statement/s required and disclosure form. Membership Support Officers will then forward the documents to Head Office. The Branch Treasurer should make a copy of the annual return and file it, together with the original bank statements. The auditor or Independent Examiner will keep a copy of the return for their records.

3. Which form do I need to fill in?

As in prior years, your Branch will need to fill in either a Branch Accounts Form (BA) or Receipts and Payments Form (R&P).The table below sets out both the reporting

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requirements (i.e. which form you need to use) and the audit requirements (whether your Branch requires an audit or independent examination).

Receipts & Payments Form (R&P) Branch Accounts Form (BA)

Profess ional Independent Examiner (I.E.) Externa l Auditor (Auditor)

Forms R&P BA

Property Yes PNo P

Property/Asset Value + £200,000 P- £200,000 P

Income & Expenditure +£30,000 P- £30,000 P

Examination/Review I.E. Auditor

Property/Asset Value + £200,000 P- £200,000 P

Income & Expenditure +£250,000 P-£250,000 P

For Branches completing the Receipts and Payments form, please refer to sections 6 & 7 of this guidance document

For Branches completing the Branch Accounts form, please refer to section sections 6 & 8 of this guidance document

Copies of both forms are available in an Excel spreadsheet format from your local County/District Membership Support Officer or from the Finance Department at Head Office – email BranchAccounts@britishlegion.org.uk

4. Who checks my annual return before submission?

Your annual return will require either an audit or an independent examination by an Independent Examiner, according to the criteria set out in Section 34 above. However, you can still have an independent examination if the ‘branch’ property is held under corporate trusteeship.

The vast majority of branches do NOT require a professional audit – it is a cost that most branches do not have to bear.

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We continue to promote the services of those trained on the Legion Independent Examiners’ Course to carry out Independent Examinations. Your Membership Support Officer will have contact details of Independent Examiners in your area. Using Legion trained Independent Examiners (IE) saves the Legion both time and money. Our own studies have shown Legion trained independent examiners to be a more reliable and effective way of reviewing branch annual returns.

If you are using a firm of accountants, you must be clear whether you are asking them to carry out an ‘audit’ or an ‘Independent Examination’. You should clearly specify this in the letter of engagement. For larger, more complex Branches – where a full audit is required – the Auditor must issue an ‘Audit Report’ confirming that a full audit was conducted and also complete the ‘Report of the Independent Examiner’. Smaller Branches using an accountant to carry out an Independent Examination should ask them to complete the ‘Report of the Independent Examiner’ included within this Guide. If you are unsure whether or not you should be employing the services of an auditor please contact your Membership Support Officer.

The Independent Examiner/Auditor will be required to tick the box on the first page of the report, confirming that he/she checked all bank account reconciliations performed by the Branch Treasurer with the bank statements. He/she should sign the return and print their name, address and contact telephone number.

5. General Principles

The general principles set out below are applicable to both the Branch Accounts and Receipts and Payments Forms.

5.1. Branch Certificate and procedure for submission

Please ensure that the Branch Certificate on Page 1 is completed and signed by the Branch Officers. This certificate confirms that the Branch Committee is aware that the Branch returns are their responsibility and that the return is accurate and complete.

It is the responsibility of the Branch Officers to arrange for the accounts to be examined in accordance with the Terms of Reference issued by the Board of Trustees.

The procedure for preparing and submitting the Branch Return is as follows:

Branch officers sign the Branch Certificate first to confirm that the accounts prepared under their stewardship are correctly prepared and include all funds held by the Branch

The Branch Certificate is then signed by the Independent Examiner (or if subject to audit, the Auditor issues their audit report) to confirm their independent opinion on the accounts

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The accounts are then submitted to the Membership Support Officer by 30 September, prior to AGM adoption

After the accounts have been adopted at the Branch AGM the Branch Secretary will confirm this by signing the front sheet of the Branch copy of the return and adding the AGM date

If the branch has used LOMAS to generate their Branch Return the above procedure is still relevant. LOMAS is a way of creating the Branch Return electronically but it does not detract from the examination and submission process outlined above.

5.2. Bank statements

Branches are required to submit a copy of the bank statement for each bank account held by the branch which shows the balance on the account at 30 June 2016. You do not need to photocopy all bank statements for the period since the last return.

You should also complete an ‘Authority to Disclose’ form for each bank account held by the Branch. This is a requirement of the Legion’s auditors (see page 24).

5.3. Charity Commission Accounting Requirements

As a registered charity regulated by the Charity Commission, the Legion is required to comply with Charities Act 2011 and the Charities (Accounts and Reports) Regulations 2008. These regulations stipulate, among other things, that:

Charities must analyse their income, expenditure, assets and liabilities between restricted and unrestricted funds.

Restricted funds are those where the donor has specified how the funds must be used by the Branch. Unrestricted funds are those raised to support all or any of the Legion’s charitable activities. Any restricted funds should be separately listed on pages 6 and 7 of the Branch Accounts with an explanation of the restriction in place over their use. These pages can also be used to record funds which are not restricted in nature but are being recorded separately by the Branch for other reasons.

Charities must analyse their expenditure between:

o expenditure in support of the Legion’s charitable activitieso expenditure on fundraising and publicityo expenditure on administration

Treasurers must consider the purpose of the expenditure rather than the nature of it when deciding where to include it on the form.

For example, the printing of a brochure for a fundraising event is a fundraising cost, while the printing of letterheads for the office should be

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included in administration. Both are printing costs but appear under different headings on the form.

We also need Branches to provide the following information about their branch, where applicable (please use the continuation sheet in the annual return)

Operating leases (e.g. leases for photocopiers, premises etc): List each lease, its annual cost and expiry date

‘Related Party’ transactions: List any payments in the year (other than reimbursement of expenses) to Branch Officers, or parties connected to Branch Officers (such as family). For example, if a Branch Officer’s son provided decorating services to the Branch, please list the person’s name, relationship to the Branch and amount paid

Significant transactions after 30 June 2015: Any unusual or large transactions occurring between 30 June 2015 and the date your accounts are signed should be listed on the Continuation Sheet

Significant gifts in kind: You should record any gifts of property or shares

received by the Branch in the period 1 July 2015 to 30 June 2016. This is not intended to include donated raffle prizes or donations of goods for fundraising purposes (such as jumble)

You must complete the membership statistics on page 2

5.4. Basis of preparation

The accounts are to be prepared on a Receipts and Payments basis – which means on the basis of income actually received and payments actually made during the period. Where a Branch is preparing Income and Expenditure Accounts on an accruals basis to meet local requirements, they must adjust the balance sheet and receipts and payments to remove accruals and prepayments for the purpose of this return.

5.5. Honoraria

Under employment legislation, charities are not permitted to pay round sum allowances (‘honoraria’) to volunteers. Guidelines issued by the past National Chairman specifically prohibit payments to volunteers other than for actual expenses incurred. This includes Legion Independent Examiners, who may not charge a fee or receive an honorarium.

5.6. Payment of Grants

Grants to other ex-Service charities may only be made with the prior authorisation of the Operations Directorate at Head Office. Branches should contact the External Grants Officer in the Operation Directorate to obtain such authorisation.

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5.7. Transactions between Branches and other parts of the Legion:

All transactions between the Branch and other parts of the Legion must be shown separately on the annual return. This includes transactions with other Branches, County, Care Homes, Break Centres, the National Memorial Arboretum (NMA) or the Poppy Appeal. The name of the party to which payments were made or from which any sums were received must be specified in the report. This information is very important for the completion of the Legion’s Annual Accounts to ensure that income and expenditure is not double counted.

5.8. Sub-Branches:

If your Branch became a sub-Branch during the period 1 July 2015 to 30 June 2016:

a. If you are still holding funds at 30 June 2016, you must complete an annual return, reporting all relevant income, expenditure and bank balances for the sub-Branch.

b. If you have followed the procedure in the Management Handbook and transferred all bank balances and records to the parent Branch, you should either:

i) submit a final account showing receipts and payments up to the date of becoming a sub-Branch, and show the transfer of funds to the parent Branch or;

ii) make a statement to the effect that all transactions from 1 July 2015 have been recorded in the books of the parent Branch, stating the name of the parent Branch.

No accounts will be required in the future; we only need the above information for the year in which the Branch becomes a sub-Branch.

5.9. Currency Denomination

If your accounts are not submitted in sterling, you should clearly state this on the form.

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6. Completing the Receipts & Payments Form

Page 2 – Receipts and Payments Summary

Membership Statistics

You must provide these statistics to enable Membership to check their Membership fee records and update their database. Please complete as follows:

A. Number of Members who pay by Direct DebitB. Branch Subscription fee (the amount per member retained by the Branch, excluding the Membership fee)C. Number of life members in the Branch (As awarded by the National Chairman)D. Number of cash payers who pay the current Membership fee agreed at Annual Conference in cash to the BranchE. Number of members excused from payment of Membership fees (other than life members) in accordance with GR45/46F. Number of youth membersG. Total number of all Branch members (A+C+D+E+F)

1. Bank and Cash BalancesCash in Hand: All cash physically held by the Branch (at the dates shown), such as petty cash and any cash yet to be banked.

Accounts Held: List details (bank/institution name, sort code, account number) for all bank accounts held by the Branch, including Welfare Accounts and the Branch Funds Initiative (BFI) where applicable, showing clearly opening balances at the beginning of the current financial period (1 July 2015) and closing balances at the period end (30 June 2016). Each closing balance should be evidenced by a copy of a bank statement.

2. Total Cash HeldThis is the total of cash held by the Branch, including cash in hand, in Branch bank accounts and in the BFI.

3. Total Increase/(decrease) in cashThis is the difference between Total Cash at the beginning and end of the period. An increase in cash should be a positive figure and a decrease in cash a negative figure.

4. Other AssetsList the value of all other assets held by the Branch, including the value of the Branch Standard and stock items. The value of amounts held in Trust funds will be completed by Head Office. This is because these assets will be included in the Legion’s accounts at their 30 June 2016 value.

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5. Subscriptions Collected

Gross Subscriptions Collected: This should be the total of all receipts from subscriptions including the DD payers’ branch subscriptions received from Head Office

Membership Fees paid out: This records the payments made to Head Office.

6. Poppy Appeal Events

This should record income and expenditure related to fundraising events run in the name of the Poppy Appeal. Money collected as part of the main Poppy Appeal should be banked directly into the Head Office bank account and should not be recorded here (unless banked in the Branch bank account in error).

a) Poppy Appeal Events Receipts – Enter money collected for the Poppy Appeal through Branch events, which has been banked directly into the Branch bank account, including cash collections

b) Poppy Appeal Expenses - Enter expenses incurred running the PA event and the payment of the ‘profit’ made on the event to the Poppy Appeal.

7. Fundraising Events

a) Fundraising Receipts – Enter the total receipts from general Branch fundraising events

b) Fundraising Expenses – Enter the total expenses incurred in respect of general Branch fundraising events.

8. Monetary Gifts and Donations/ Legacies Received

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Enter the total monetary gifts and donations received in the year where not already included above, including donations, refunds, unidentified income etc.

Under Charity accounting regulations, the Legion must show separately in its accounts the amount raised from legacies. Please include any legacies received into Branch bank accounts at 9b. This figure should exclude legacies held in trust at Head Office.

Any legacy received at the branch should be disclosed to Head Office.

9. Interest Received/Paid

Enter the total interest received from funds held in bank and building society accounts, Branch Funds Initiative (BFI), deposit accounts and any other deposits. If interest was paid during the year, please enter the relevant amount in the Payments column.

Income from InvestmentsEnter the total income received from investments held locally. This includes the interest on National Savings Certificates and Bonds, Treasury Stock, COIF investment units, dividends etc. This does not include investments held in the Branch Funds Initiative (BFI) or in trust funds at Head Office.

10. Welfare Income/Expenditure

This section should be completed by all Branches undertaking welfare activities whether they operate a separate Welfare bank account or not. Record all income received towards Welfare Funds in the ‘Receipts’ column, and any welfare expenditure made in the period in the ‘Payments’ column.

11. Branch Ceremonial Events

Enter expenditure on items such as parades, church services, Standard bearers’ expenses, band costs for ceremonial events etc.

12. Management and Administration Costs

Include here all costs incurred in running the Branch such as meetings & travel expenses, conference fares paid or AGM expenses, printing, stationery, postage, telephone, repairs and maintenance of equipment, insurance and bank charges.Refunds for conference fares should be included here (reducing expenditure)

Where Branches hire rooms for Branch meetings or rent an office for Branch administration, those costs should also be included here. Enter the total of rent paid, plus rates, insurance, cleaning or repairs, where applicable.

Please note any audit fees paid should be shown on line 12b

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13. Purchases

Enter the cost of purchasing stock items such as badges, wreaths etc. Please note that to comply with HMRC rules, Branches should not be involved in trading activities

Furniture & Equipment – Enter the cost of purchasing office furniture and equipment. Include the purchase of Standards in this line.

14. Other income

Use this line for receipts that do not fall into any of the above categories e.g. proceeds from sale of equipment.

15. Other payments

These lines are to be used to record payments made to other parts of the Legion (e.g. Counties, Care Homes etc). Please include details of the recipient and a brief description. This does not include payments to Royal British Legion Clubs (for room hire etc.) which are independent entities from the charity.

Where necessary split the total Other Payments on page 3.

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16. Total Receipts/Payments

Add up all the receipts in the Receipts column and all the payments in the Payments column.

17. Net increase/decrease in funds in the year

Deduct the total payments from the total receipts. The amount must be the same as box 3 – Total increase/decrease in cash. If payments exceed receipts, show this as a negative figure, or in brackets.

18. Welfare analysis

State the number of cases that were supported during the period and the total amount spent for all cases.

Page 3 – Additional InformationPlease include here any assets held by the Branch but not included on page 2, or any other information that might help us understand the transactions made by the Branch.

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Please include here details of any significant transactions that took place after 30 June 2015, for example, purchase of a property, disposal of investments, entering into a new contract or receipt of a major donation or legacy. Any information entered here should also be brought to the attention of your Auditor or Independent Examiner.

This section of the form should also be used to provide explanations where any of the following are applicable:

Gross subscriptions collected are less than subscriptions paid out Branch Poppy Appeal receipts are greater than amounts paid out Fundraising receipts are less than payments Interest has been paid during the year Income from investments/deposits is disproportionately low (or high)

compared to the size of the asset The ‘Other payments’ total is disproportionately high compared to the income

of the Branch

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7. Completing the Branch Accounts Form

(numbering in this paragraph appears as per BA form).

Page 2 – GENERAL ACCOUNT – Receipts & Payments Summary

Membership Statistics

You must provide these statistics to enable Membership to check their Membership fee records and update their database. Please complete as follows:

A. Number of Members who pay by Direct DebitB. Branch Subscription fee (the amount per member retained by the Branch, excluding the Membership fee)C. Number of life members in the Branch (As awarded by the National Chairman)D. Number of cash payers who pay the current Membership fee agreed at Annual Conference in cash to the BranchE. Number of members excused from payment of Membership fees (other than life members)F. Number of youth membersG. Total number of all Branch members (A+C+D+E+F)

Receipts

1. SubscriptionsGross Subscriptions Collected: This should include all cash received at branch for membership renewals. Do not include monies paid to Head Office from members direct.

Gross Subscriptions Forwarded to Novacroft: This records the payments actually forwarded to Novacroft

Gross Subscriptions Held by Branch: This is the difference between the two

If there are a significant number of members excused from paying Membership fees under Charter Regulations 45 and 46, this could be a negative figure. If Branch members are excused from paying Membership fees for any other reason, the Branch subscription fees paid by the other members must cover this cost.

Note: Branches and clubs must separately collect their own subscriptions. The Club must not collect and hold the Branch subscriptions.

Branch Subscriptions Received From Novacroft: Money received back from Novacroft for Branches administration fees.

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2. Branch Poppy Appeal EventsThis section relates to fundraising events held by the Branch under the name of the Poppy Appeal. Please note that money collected as part of the main Poppy Appeal should be banked directly into the Head Office bank account and should not be recorded here. If money for the main Appeal has been banked into the Branch bank account in error, please include it in this section.

a) Events Receipts – Enter any money collected for the Poppy Appeal through Branch events, which has been banked directly into the Branch bank account. This will include cash collections.

b) Events Expenses – Enter any expenses incurred in raising funds for the Poppy Appeal. These may be deducted from the money paid over to Head Office.

c) Paid over to Poppy AppealPlease note that all money collected for the Poppy Appeal, after deducting any expenses incurred, should be paid over to Head Office. The sum of 2a), 2b) and 2c) should be nil.

2. Branch Poppy Appeal EventsEvents ReceiptsLess: Events ExpensesLess: Paid over to Poppy AppealAppeal Receipts Retained (should be nil)

3. Branch Fundraising Events

a) Fundraising Receipts – Enter the total receipts from general Branch fundraising events

b) Fundraising Expenses – Enter the total expenses incurred in respect of general Branch fundraising events.

c) Net Total – this is the result of a) less b) above.

3. Branch Fundraising Events Fundraising ReceiptsLess: Fundraising ExpensesNet Fundraising income

4. Monetary Gifts & Donations

Enter the total monetary gifts and donations received in the year. Collections of money other than for the Poppy Appeal should be included here.

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5. Legacies Received

Under Charity accounting regulations, the Legion must show separately in its accounts the amount raised from legacies. Please include any legacies received into Branch bank accounts at 5. This figure should exclude legacies held in trust by Head Office.

Any legacy received at the branch must be disclosed to Head Office regardless of the amount.

6. Interest Received on General Fund Accounts

Enter the total interest received directly from funds held on General Accounts. This will include interest from bank and building society accounts, Branch Funds Initiative (BFI), COIF deposit accounts etc.

Income from Investments

Enter the total income received from investments held locally. This includes the interest on National Savings Certificates and Bonds, Treasury Stock, COIF investment units and dividends etc. However, this does not include trust accounts held at Head Office or amounts held in the BFI.

6. Interest Received on General Fund AccountsIncome from Investments

7. Other Income

Badges & Wreaths

Enter total receipts from stock items. Please note that to comply with HMRC rules, Branches should not be involved in trading activities. Items of low intrinsic commercial value can be given in return for a suggested donation. Branches should consult the Finance Department for further advice in this area.

Proceeds from Sale of InvestmentsEnter the proceeds from the sale of investments held locally. This does not include transfers between bank and building society accounts or closure of accounts etc. Such transactions should be included under ‘other’ although are not of course expenses themselves.

Other (specify)

Enter details of other receipts that do not fall into any of the above categories. Examples may include proceeds from sale of equipment, trust income received from Head Office, or transfers from other bank accounts. Please provide brief details of any amounts recorded in this category.

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This section is also used for general fund receipts from other Legion formations.

8. Total Receipts

Add items 1 to 7 above for the current and previous years and enter as item 8.

Payments

9. Welfare Expenditure

This section should be completed by Branches that do not operate a separate Welfare bank account. Enter the total Welfare Expenditure from Box 28 on page 3 of the form. This figure should also equal Box 30 on page 3 (Surplus/deficit on Welfare Account) at Box 30 on page 3. (If the Branch operates a separate Welfare bank account, this section should only be used to show the transfer of funds from the General to the Welfare Account)

9. Welfare Expenditure (analysis on page 3 )

10. Branch Ceremonial Events

Enter expenditure on parades, church services, Standard bearers’ expenses, band costs etc.

10. Branch Ceremonial Events

11. Management & Administration

a) Conferences, Meetings & Travel: Enter delegates’ expenses, conference fares paid, AGM expenses etc. If the Branch received a conference fares refund, this should be netted off here (reducing expenditure).

b) Audit Costs: Include here any payments made in respect of audit/independent examination of the Branch accounts.

c) Branch Accommodation Costs: This section should be completed by Branches that hire rooms for Branch meetings or rent an office for Branch administration.

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Enter the total of rent paid, plus rates, insurance, cleaning and repairs where applicable.

d) Other Costs: Enter the total of all other administration costs, such as printing, stationery, postage, telephone, repairs and maintenance of equipment, contents insurance or bank charges.

11. Management & AdministrationConferences, Meetings & TravelAuditBranch Accommodation CostsOther CostsTotal Management & Administration Costs

12. Purchases

Badges & Wreaths – Enter total cost of purchasing stock items.

Furniture & Equipment – Enter total cost of purchasing office furniture & equipment and standards.

Purchase of Investments – Enter purchase of investments held locally e.g. purchase of new units held in COIF accounts. This does not include transfers between bank and building society accounts, or opening new accounts, which should be included under ‘Other Payments’ below. Any purchase of shares must be pre-authorised by the Deputy Director General.

12. PurchasesStock of Badges, Wreaths etcFurniture & EquipmentPurchase of Investments (refer to Branch Guide)

13. Other Payments

These lines are to be used for payments to other sections of the Legion e.g. Poppy Appeal, Care Homes etc. Payments to other Legion Formations should be separately identified under ‘other’.

13b. Other (specify)

Enter any other payments that do not fall into the categories above.. Please note that donations, other than donations to other parts of the Legion, should be listed in the Welfare Account at section 25 on page 3 of the form. Donations to external organisations are not allowed unless express permission has been obtained from the Deputy Director General and the Operations Director.

Where necessary split out the total using ‘Other Payments’ on page 5.

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14. Total PaymentsAdd items 9 to 13 and enter the total here.

14. Total Payments ( add 9 to 13 ) £

15. Surplus/ (Deficit) on Property Transactions

All transactions relating to Branch property, with the exception of costs included in Branch Accommodation Costs should be recorded on page 3 of the form in the Property Transactions column. Enter the total from 38 on page 3 of the form here.

16. Surplus/(Deficit) on General AccountEnter the sum of total receipts minus total payments, plus (or minus) the surplus (or deficit) on property transactions, i.e. Item 8 minus item 14, plus (or minus) item 15.

17. Balance at 1 JulyEnter the balance carried forward from last year on your General Account receipts and payments summary. This balance should also agree to the cash book balance on the General Account as at last year end. Please note that this balance should include all funds held for use on the General Account, such as funds held in current accounts and deposit accounts. This figure should also be the same as the Closing balance (Item 18) for the Prior year in the next column.

18. Closing Balance at 30 JuneEnter the sum of item16 plus item 17.

15. Surplus/(Deficit) on Property Transactions

16. Surplus/(Deficit) on General Account £

17. Opening Balance at 1 October

18. Closing Balance at 30 June £

Page 3 – WELFARE ACCOUNT – Receipts & Payments Summary(This section should be completed when there is no separate bank account for Welfare purposes)

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Receipts

19. Branch Fundraising Events

a) Fundraising Receipts: Enter the total receipts from Branch fundraising events for Welfare purposes.

b) Fundraising Expenses: Enter the total expenses incurred in respect of Branch fundraising events for Welfare purposes.Net Funds Raised – This is calculated as a) minus b) above. If negative show in brackets.

Receipts19. Fundraising Receipts

Fundraising ExpensesNet Funds Raised

20. Monetary Gifts and Donations

Enter the total monetary gifts and donations received in the year for Welfare purposes. The amount raised from Legacies should be shown separately in box 20a.

20. Monetary Gifts & Donations 20a. Legacy Income

21. Interest Received on Welfare AccountEnter the total interest received from funds held on Welfare Accounts. This will include interest from bank and building society accounts or COIF deposit accounts.

Income from Investments

Enter total income received from investments held locally for Welfare purposes. This includes interest on National Savings Certificates and Bonds, Treasury Stock, COIF investment units and dividends. However, this does not include investments held under Branch Initiative Funds (BFI) and trust at Head Office.

21. Interest Received on Welfare A/c'sIncome From Investments

22. Other Income

From General Account

Enter any transfers in the year from the General Account to the Welfare Account.

Other (specify)

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Enter details of other receipts that do not fall into any of the categories above. Typical examples may be trust income received from Head Office or transfers from other bank accounts.

22. Other IncomeTransfer From General Account

Payments

24. Direct Welfare Payments

Please analyse payments in respect of grants for welfare cases according to the categories shown. Also please provide statistics on the numbers of cases.

25. Donations PaidList all donations paid in the year, continuing on a separate sheet if necessary. Please note that donations should only be made in accordance with Article 3 of the Royal Charter. If the Branch makes donations that do not comply with the Charter, then the Branch Committee will be held personally responsible for the money.

26. Other Charitable Payments

Enter details of other Welfare payments that do not fall into any of the categories above.

26. Other Charitable Payments

27. Charitable Support CostsAdministration Expenses

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Enter administration expenses specifically incurred in carrying out Welfare work.

Welfare ExpensesEnter travel expenses reimbursed to caseworkers or Branch Welfare Representatives in carrying out Welfare work.

27. Charitable Support CostsAdministration ExpensesWelfare Expenses

28. Total Payments

Add items 24 to 27 and enter total here

29. Welfare Committee Expenses Refunded

Enter any refunds received from Head Office for Welfare Committee costs.

29. Welfare Committee Expenses Refunded

30. Surplus/ (Deficit) on Welfare Account

Enter total receipts minus total payments, plus refunds –i.e. Item 23 minus item 28 plus item 29. NOTE: this total is to be shown at item 9 on page 2

31. Balance at 1 July

Enter the balance brought forward from last year on the Welfare Account receipts and payments summary. This balance should also agree to the cash book balance on the Welfare Account as at last year end. Please note that this balance will include all funds held for use on the Welfare Account, so funds held in current accounts and deposit accounts.

32. Balance at 30 June – Enter the sum of item 30 plus item 31.

31. Opening Balance at 1 October

32. Closing Balance at 30 June £

Page 3 – PROPERTY TRANSACTIONS

Please complete this section of the form if the Branch:

a) Occupies a property owned by local trustees;b) Occupies a property owned by the Legion as corporate trustee; orc) Rents a property, which is sub-let, or could be sub-let, to a tenant.

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Receipts

33. Rents ReceivedEnter the total rents received in respect of properties, separating rents received from Royal British Legion Clubs, other tenants and sub-lettings.

Receipts33. Rents Received from RBL Club

Other Rents Received

34. Other ReceiptsGive details of any other receipts connected with the property. Typical examples may be service charges or money received from a tenant for their share of property insurance, rates, repairs and improvements. The Commercial Directorate administers the sale of Legion properties in the UK. Receipts received from the sale of overseas property should be included here where such proceeds have been banked directly into local Branch accounts.

34. Other Receipts

35. Total Receipts

Add the totals of items 33 and 34 above

35. Total Receipts ( add 33 to 34 ) £

Payments

36. Property Costs

Please analyse property costs between the categories shown.

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Payments36. Property Costs

Rent PaidRatesProperty InsuranceUtilitiesProperty Repairs & MaintenanceProperty Improvements by BranchCleaning & CaretakersLegal & Professional FeesOther (specify)

37. Total Payments – Enter the total of all amounts listed under item 36.

37. Total Payments £

38. Surplus/Deficit Transferred to General Account or separate Property Account

Enter the sum of total receipts minus total payments, so Item 35 minus item 37. NOTE: this total is to be shown at item 15 on page 2 of this form.

38. Transfer to/from General Account £Transfer to/from separate Property Fund £

39. Details of Branch Freehold/Leasehold Property

Cost Price/Improvements to 30 June. Enter the original purchase price of the property (where known) plus the cost of any improvements made to the property for the period up to 30 June (this figure may have to be estimated). Please note that if the property is bequeathed to the Legion then the cost of the property is taken as the market value of the property at the date that it is acquired.

Market Value on a ‘Vacant Possession’ basis. This value may be provided by the staff from the Commercial Department as at 30 June 2016 – please leave it blank.

Page 4 – SUMMARY OF BRANCH ASSETS AND LIABILITIES at 30 June

40. Bank and Cash Balances

Please give details of cash in hand together with all funds held by financial institutions. Record the name of the institution, the sort code and the account number. The cash book balances should be entered into the form and all balances must be reconciled to the bank statements. The reconciliations must be

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available for the auditors or Independent Examiner to review. Please indicate whether the funds relate to the General Account, the Welfare Account, or Other Funds by recording the amounts under the relevant heading on the form.

Please Note:

The total funds recorded on the General Account should agree to item 18 on page 2 of the form.

The total funds recorded on the Welfare Account should agree to item 32 on page 3 of the form.

The total funds recorded under Other Funds should agree to balance of any additional funds recorded on pages 6 or 7.

Please remember to include copies of 30 June 2016 bank statements, Investment reports (if applicable) and Agreement to disclose Information forms with the Branch Accounts sent to the County/District office.

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41. Freehold and Leasehold PropertyThe estimated market value for all freehold and leasehold property will be provided by the Commercial Department as at 30 June 2015. Please leave this box blank.

42. InvestmentsEnter details of investments held, including the cost price and the market value at 30 June. If any investments are held specifically on behalf of the Welfare Account then please note this on the form. Also indicate whether the investments are held locally or by Head Office.

Please attach statement/s to support each investment reported in this section

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43. Debtors (money owed to Branch)

Please give details of all money owed to the Branch, separately identifying any monies owed to the Branch by other parts of the Legion.

44. DEBTORS (money owed to Branch)By RBL

Rents due from RBL ClubsRents due from other TenantsOther debtors (please list)

Total Debtors £

44. Creditors (money owed by Branch)

Please give details of all money owed by the Branch, separately identifying any money owed by the Branch to other parts f the Legion and any mortgage outstanding on properties.

45. CREDITORS (money owed by Branch)To RBL

Mortgage OutstandingOther creditors (please list)

Total Creditors £

45. Total Net Branch Value

Enter the sum of item 40 + item 41 + item 42 + item 43 - item 44 = item 44.

Page 5 – OTHER INFORMATION

Please include details of any significant transactions that have taken place since 30 June 2014 and before the submission of the accounts to County and Head Office.

Such transactions may include the disposal of Investments or the receipt of a major donation or legacy. Any information entered here should also be brought to the attention of your Auditor or Independent Examiner.

Page 6 and 7 – OTHER FUNDS

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Branches may keep funds in a separate account because of a restriction imposed by the donor. Other funds may be kept separate for administrative convenience e.g. funds being raised for the purchase of a new Standard. Branches should provide sufficient detail as to the reason for holding funds separately to ensure that Head Office correctly identifies restricted funds.

It should be noted that because there is a need or desire to separate funds does not mean multiple bank accounts should be used. You may have different funds but ultimately these can be held within the one bank account.

Complete the following details for each fund held separately other than in the General and Welfare Accounts. This may include building funds, or memorial funds.

Receipts

List all receipts for the period under the same general headings as used in the General Account.

Payments

List all payments made in the year grouped under Fundraising Costs, Direct Charitable Payments and Administration expenses.

Balance at 30 June

Enter the sum of total receipts, minus total payments, plus the balance on the fund at 1 July. Please note that the balance should agree to the figures recorded at item 40 on page 4 of the form, under Other Funds.

** Donations or grants to other non-Legion charities are not permitted without pre-authorisation from the Deputy Director General and Director Operations.

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8. RBL Branch Authority to Disclose Information Form

Legion Branches hold a considerable amount of cash at their local banks. Although the bank statements and funds balances are checked during the independent examination/local audit, the Legion’s external auditors (this year changed to Deloitte LLP) also require independent confirmation from all banks and building societies of the balances on Legion Branch bank accounts at 30 June 2016. A blank Authority to Disclose Information forms are included with this pack, and a copy is on page 24 of this guide. Deloitte have requested that each Branch fill in the form (please photocopy the form if more than two are needed for different banks) and copies of the form are submitted with the Branch return. This will enable the Legion’s auditors to obtain information directly from the bank.

Please note that these forms are required to be completed each year for each bank account held. Do NOT send these to your bank direct.

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Please ensure you have completed the following information: a) Bank name and addressb) The form must be datedc) Write the full name of your Branchd) The Account Name, Sort Code and Account Number must be supplied for each

account held at the banke) The form must be signed by 2 signatories in accordance with the bank

mandate

Example on the following page:

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[Bank’s Name][Bank’s Address]

< Remember:< Send a separate form < for EACH Account

Insert Branch Name

<Insert Date>

<Update reference number (use branch number)

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9. Branch Treasurer Checklist

General Checklist

The period end, Branch Name, County/District, Address, Contact and Branch Code are entered correctly

The Branch Certificate is dated and signed by all 4 Branch Officers

The Report of the Independent Examiner (IE) section has been completed in full and signed by the Independent Examiner/Auditor (where a full audit has been performed, an auditor’s report should also be attached)

Membership statistics have been completed in full

Bank/Building Society Name, Sort Code and Account Number has been provided for each account listed

Overall checks:

□ Arithmetic/addition is correct

□ Opening balance for current period equals previous year closing balance

□ A bank statement has been included that supports the closing balance on each account

□ The total net receipts and payments matches the movement in total bank balances for the year

□ Statements/current valuations have been provided for investments (if applicable)

□ Property and rental income/expense details have been provided (if applicable)

□ An “Authority to Disclose Information” form has been completed in full and a copy included for every account held by the branch

Additional Information Checks

An adequate explanation has been provided for any of the following which are applicable:

Gross subscriptions collected are less than subscriptions paid out

Branch Poppy Appeal receipts are greater than amounts paid out

Fundraising receipts are less than payments

Branch entertainment events receipts are less than payments

Interest has been paid during the year

Income from investments/deposits is disproportionately low (or high) compared to the size of the asset

Material “Other Payments” total – additional detail supplied

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The following sections are for Auditors and Independent Examiners only

10.The Royal British Legion Audit Requirements and Criteria

Branches of the Legion are not independent charities as they are all constituted under the same Charter and Registered Charity Number. Where a Branch’s income is below the level to require an audit under the Charities Act 2011, an independent examination, or in some cases a full Audit, is still required to:

a) comply with Regulation 58 of the Royal Charter;b) comply with the internal control procedures of the Legion; andc) provide comfort to the external auditors of the Legion who will give an audit

opinion on the Consolidated Financial Statements, incorporating all Branches, and other Legion formations.

Audit Criteria

The Board of Trustees has set the following criteria with which to determine the level of audit or examination required for a Branch’s accounts:

a) A branch must appoint a Chartered or Certified Accountant to audit the Branch Accounts if either : in the preceding financial period of account its receipts and payments in

aggregate exceeded £250,000 *, or at the end of the year the total value of its assets, including the estimated

current market value of property, exceeded £200,000*.

* check exceptions below in paragraph C

Note: The Chartered/Certified Accountant engaged does not need to be a registered auditor as defined by the Companies Act.

b) A Branch which does not reach the above levels may instead arrange an independent examination of its accounts by either : a qualified accountant being a member of good standing of one of the six

chartered bodies comprising the CCAB, and who is not an officer or committee member of the Branch, or

an individual trained on the Legion’s Independent Examiners course who is independent and not a member of the Branch, or

an individual who is not a member of the Branch, and has a suitable background in finance. The Charity Commission website says: “an independent examiner must obviously be competent for the task that he or she is to do and they must be familiar with accounting methods, but need not be a practicing accountant. We have in mind people such as bank or building

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society managers, local authority treasurers or retired accountants. They would all be suitable as independent examiners.” Preference should be given to qualified accountants where this is possible.

c) When calculating the threshold level for determining whether the Branch requires an Audit or Independent Examination the following, which will be audited centrally, may be excluded from the value of income, expenditure or assets: Membership Fees payable to Head Office Value of Property which is owned by The Royal British Legion as corporate

trustee The value of any funds held at Head Office on behalf of the Branch. Poppy appeal receipts and payments (only Non-UK Branches may be

excluded)

d) The accounts of Groups need not be examined unless the Group officers wish for an examination to be carried out. Group accounts which have not been subject to an independent examination will be reviewed by the County Treasurer.

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11.Terms of Reference for Audit or Independent Examination

a. Audita) An accountant appointed to audit the accounts of the Branch should complete an

audit in accordance with Auditing Standards issued by the Auditing Practices Board. The auditor will issue an Audit Report to the Branch Committee in the format prescribed by their professional standards which will be attached to the accounts. This report must state that an audit has been carried out and must include an audit opinion. Comments to the effect that they have only prepared the accounts are not allowed.

b) Where a professional firm agrees with the Branch Committee that the Branch is below the audit threshold given above, the firm should complete and sign the ‘Report of the Independent Examiner’.

c) The Royal British Legion gratefully acknowledges the contribution of the accounting profession in carrying out Branch audit assignments at nominal or less than normal commercial fee levels. Naturally we wish to foster this approach and should any accountant wish to discuss these terms of reference, they should contact Branch & Trust Accountant on 020 3465 9159

b. Independent Examination - Qualified Accountants (CCAB)a) A Qualified Accountant must be used to carry out an Independent Examination

where the income of the Branch exceeds £250,000. Qualified Accountants appointed to carry out an independent examination of Branch accounts should follow the guidelines of the Charities Commission contained in their leaflet CC63a Independent Examination of Charity Accounts 2007 (available free of charge from the Charities Commission or on their website).

b) Directions 7, 8, 9, and 10 are not applicable, as Branch accounts are prepared on a Receipts and Payments basis. The examination is still required however when income is less than £10,000. Any report under Section 12 should be sent to the Board of Trustees of the Legion, not the Charity Commission.

c) A Letter of Engagement defining the respective responsibilities of Trustee and Examiner should be provided by the accountant and signed by both parties. The examiner should sign the Report of the Independent Examiner on page one of the return form.

c. Independent Examination - Examiners with Other Qualifications.

Examiners without formal accountancy training may be used to carry out an Independent Examination where the income of the Branch is below £30,000. The Charity Commissioners leaflet CC63a referred to above provides the best guide to performing an independent examination of a charity. However, examiners

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without a formal accounting training may feel that they prefer to follow the more specific programme set out below.

a) Responsibilities:

It is the responsibility of the Branch officers to maintain books and records and to prepare the accounts. It is the duty of the examiner to review these records and express an opinion on them.

The accountant may help prepare the accounts as well as conduct the examination. However the Branch officers remain responsible for the content of these accounts.

The Independent Examiner should issue a Letter of Engagement to the Branch Officers confirming the respective responsibilities.

b) Audit Threshold

Check that the level of income and expenditure and the value of assets falls below the level which would determine that a full Audit was necessary under Section 5 of this guide, and that they are therefore able to proceed with an independent examination.

c) Understanding the Branch and the Legion

The examiner should obtain an understanding of the Legion’s constitution, Branch organisation, Branch accounting systems, the size and complexity of the Branch and the nature of its Receipts and Payments and Assets & Liabilities. In particular, the examiner should be familiar with:

Branch Finances per the Management Handbook chapter 3.1.9 Minutes of Branch Meetings. Forms and Guidance for Branch Accounts. This guidance on Independent Examination

d) Accounting Records

The examiner should review the accounting records and be satisfied that they are adequate for the size and complexity of the Branch.

there should be an up to date cash book (or Branch Account Book) all Branch accounts, funds and deposits should be recorded in the books

all entries should be supported with invoices, receipts or vouchers which support the entries

vouchers should be approved by an officer of the Branch independent of the Treasurer

cash book should be ruled off and reconciled to the bank account on a regular basis - at least at the annual accounting date

there should be adequate procedures with respect to the management of the bank account e.g. cheques to require two signatures, bank statements

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checked to books of account, bank reconciliation reviewed by a Branch Officer independent of the Treasurer

larger Branches may maintain double entry in a ledger rather than an analysed cashbook.

e) Detailed checking and comparison with accounting records

Detailed checks should be conducted to confirm that:

cash books are totalled, balanced and reconciled to balances on bank statements

bank statements are available to support the year end balances for all bank accounts

bank balances in the Branch’s cash book agree with the balances on page 4 of the Branch Accounts form,

there are no transfers recorded in the cash book to or from bank accounts which are not part of the Branch Accounts

amounts are correctly extracted from the books and are appropriately recorded in the General Account, Welfare Account, Property Account or Other Fund Accounts and the Balance Sheet sections of the Branch Account Forms

amounts are correctly recorded in the various sections of the form and that in particular expenditure is correctly analysed between fundraising, charitable activities and administration

Branch social activities are shown separately from fundraising and are self-financing

No honorarium or staff costs have been incurred. Any such payments discovered by the examiner should be reported in the report

transactions with other Legion formations are separately identified donations are separately listed, are within the objects of the charity and any

donations to other non-Legion charities are pre-authorised by the Deputy Director General and Director Operations.

f) The Examiner should confirm that all sections total correctly and that the net Receipts/Payments total for the year matches the movement on bank accounts total.

g) The Examiner should make reasonable enquiries to determine that all funds and all assets and liabilities of the Branch are recorded in the accounts.

h) The Examiner should confirm that the reason stated for designating or restricting separated funds is accurate.

d. Analytical Procedures

Carry out a Review as follows:

a) ensure that the figures for prior years are correctly extracted from the prior year’s accounts and recorded on the formb) obtain adequate explanation of any unusual movements on any item between the

current and prior year’s figures

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c) ensure that any changes in the level of bank balances, investments and property assets are accounted for in the Receipts and Payments Accounts or Fund statements

d) confirm that all expenditure is consistent with the charitable objects of the Legione) review third party documents, vouchers and minutes of the Branch and ensure

that the accounts are consistent with the activities described and any unusual events mentioned.

f) where possible, verify that all Branch assets are included and that the Branch has proper title to the assets.

Note: Property held under Corporate Trusteeship and funds on deposit at Head Office

e. Disclosures

The examiner should check for completeness and adherence to instructions. In particular, the examiner should ensure that the following matters are included on the form if there is any evidence that there are matters to disclose:

That the Branch Certificate is completed on page 1 and signed by the Branch Officers, and the Treasurer in particular.

Any charges on assets, any mortgages or loans are listed. Any unusual or large transactions after the year end are listed. Any operating leases with commitments beyond the year end are listed. Any transactions with Branch Officers or parties connected to Branch Officers

are listed (other than normal travelling expenses which are independently authorised).

Any substantial gifts are listed. The property section is complete, where applicable, and that all tenants and

all properties are separately identified.

f. Evidence of Examiner’s Work

The examiner should keep a record of the work undertaken with schedules of any relevant information extracted and explanations obtained from the Branch Officers which have been used to support the Examiner’s opinion of the accounts.

The examiner should retain one copy of the final accounts after signature.

g. Examiner’s Report

On completion of the examination the examiner will:

a) Discuss the results with the Branch Officers to allow them to correct any errors and amend procedures for the future

b) Sign the Report of the Independent Examiner. The Independent Examiner should state whether or not there are any matters to be brought to the attention of the Board of Trustees. Examples may include:

items of expenditure outside the objects of the Charity

the fact that information has not been provided by the Treasurer upon reasonable request

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proper records have not been kept

significant differences between the accounts and the supporting records

not all entries were supported with invoices, receipts or vouchers

not all vouchers were approved by an officer of the Branch independent of the Treasurer

Branch social activities are not shown separately from fundraising and they are not self-financing or operated at a deficit

If the Examiner believes that one or more of the Officers of the Branch have been responsible for deliberate or reckless misconduct they should report directly (and in confidence) to either the National Chairman or the Deputy Director General of the Legion at 199 Borough High Street, London SE1 1AA.

Examples would include:

a) Deliberate abuse of Legion assets including theft or misappropriation.

b) Serious breach of legislative requirement such as material application of funds clearly outside the objects of the Legion

c) Serious neglect of the duties of Branch Officers to effectively manage the Branch.

8.

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12. Independent Examination – Planning Checklist

This is an example of the checklist that an Independent Examiner should consider while carrying out an assignment.

1. I am not aware of any reason why I should not accept/continue with this appointment

Consider:

– am I independent?

– do I have the ability and practical experience for a Branch of this complexity?

– has my appointment been approved by the Branch?

– is the Branch aware of my responsibilities – possibly by signing and returning a letter of engagement?

2. The financial statements or accounting records confirm that the Branch’s gross income, total expenditure and total assets meet the criteria for Independent Examination

3. I am not aware of any specific requirements for an audit to be carried out, for example, in any special trusts associated with the Branch or as a condition of any grants made to the Branch, that prevent me carrying out an independent examination

4. For my first examination of this Branch, I have obtained background information on the Branch, how it is organised, the extent of its activities, and the nature of its income, expenditure, assets, liabilities and funds. I have read the relevant sections of the Royal Charter and Branches’ duties and responsibilities.

For subsequent years, I have checked and updated any details from the previous year.

5. I have described in brief on a separate sheet the accounting records maintained by the Branch, which I have examined, and the key financial controls operated.

Name of independent examiner: Date:

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13. Independent Examination – Documentation Checklist

Checklist of documentation required to conduct an Independent Examination

Ledger/Account Book/ Cash Book/ Computer print out

Bank statements (1 July – 30 June) for all accounts

Bank reconciliations for the period (prepared at least quarterly)

Membership statements/Membership register for the period

Details of membership fees

Full list of stock held (badges, wreaths etc)

Branch Accounts/Receipts and Payments Forms already signed by Branch Officers

Minutes of Branch meetings for the period under examination

Branch Accounts/Receipts and Payments Forms for previous year

Investment statements (if applicable)

Building society pass book (complete to 30 June – if applicable)

Paying-in books

Cheque books + copy of bank mandate

Receipts and Payments Vouchers

BFI statements

Register of assets held by the Branch

Property file, including tenancy agreements, copy of trust deed etc

Signed copy of ‘Authority to Disclose Information Forms’ for each bank account held by the Branch

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14. Independent Examination – Work Programme

The Branch needs to ensure that all records are up-to-date and properly filed. This will help maintain adequate control, accuracy and also save on audit/examination fees.

If any of the answers to these questions is ‘no’, full details of problems encountered and how they have been resolved should be included on a separate sheet,

Financial statements

CompletedSatisfactorily YES NO

1. Agree figures in the Branch Return to the Branch’s main accounting records (e.g. cash book).

❏ ❏

2. Obtain other information like bank statements to confirm balances, Minutes of Committee meetings, The Royal Charter, List of committee members, a copy of the latest bank mandate, property deeds, property lease details, membership information.

❏ ❏

3. Consider if the Branch has adequately disclosed the transactions or interests that Branch members may have with the Branch.

❏ ❏

Accounting records4. Select a sample of entries from the main accounting records and trace them

back to any supporting prime books that exist (e.g. cash book, petty cash book).

❏ ❏

5. Select a sample of entries from any of these prime books and trace them to the main accounting records.

❏ ❏

The items selected under 4 and 5 above should be recorded on a supporting working paper and the prime record to which they were checked or from which they were selected should be noted. These tests mirror each other but it is important that different items are selected for each test.

6. Test check the accuracy of some of the accounting books and records (does the cash book balance?).

❏ ❏

State on a separate sheet which records were checked and the sections covered by the checks.

Review of Branch Returns7. Consider the Branch’s income, expenditure, assets and liabilities as shown

in the Branch Return. Where there are unexpected fluctuations or inconsistencies, obtain explanations from the Branch.

❏ ❏

8. If any issues outside the scope of the independent examination have been identified that suggest the financial statements are mis-stated, the issue/s has/have been included in the Independent Examiner’s report(If N/A, tick “Yes”)

❏ ❏

If ‘Yes’ include details on a separate sheet and state how they have been resolved.

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Branch Returns

CompletedSatisfactorily YES NO

9. Review minutes of Branch and other relevant committee meetings: identify major events, plans or decisions and changes in Branch

officers and members and ensure they have been properly reflected in the accounting records, reports and Branch return;

❏ ❏

determine if the Branch has financed activities outside its arena as outlined in the Royal Charter

❏ ❏

10.

Examine the year-end bank reconciliation (and, for more complex Branches, any other control accounts) to ensure they do not include any unexpected or unusual items. Ensure the bank accounts are in the name of the Branch and balances agree with the accounting records.

❏ ❏

Transaction testing11.

Select a sample of receipts and payments from the main accounting records and cross check the details to supporting invoices, vouchers or other similar documentation to ensure that the transactions are valid under the powers of the Branch.

❏ ❏

12.

If the Branch has a property, examine the deeds and how the property is used by the Branch. If the Branch has tenants, check the condition of the lease (insurance, utility bills, rates and maintenance bills should always be paid by a tenant).

❏ ❏

13.

Has the rent income been collected up to date (confirm you have seen evidence of money being paid into Branch account or Head Office)?

❏ ❏

Note (on a separate sheet) which transactions were examinedReporting

14.

Prepare a report to the Branch and express your opinion on page 1 of Branch Accounts or Receipts and Payments form.

❏ ❏

15.

Matters identified during the course of the work which suggest legal, accounting or similar problems should be carefully considered. If they represent significant instances of deliberate or reckless misconduct in the administration of the Branch, then a written report should be made to the Chief Financial Officer, Legion Head Office. 199 Borough High Street, London, SE1 1AA.

❏ ❏

Additional Work to Check Membership details16.

Review membership numbers and Membership income received and paid over to Head Office (if relevant).

❏ ❏

17.

Does the Branch have any excused members? If yes, does the Branch Membership fee cover the “excused amount” to be paid over to Head Office? If no, examine where the money comes from to cover this deficit. Membership fees cannot be paid from other charitable funds - only from Membership fees income.

❏ ❏

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