Charity audit fees up £10m in four years
Audit fees paid by the UK’s largest charities have increased by £10.2m in four years, reaching £72.3m in 2017/18, with audit firm Crowe ranked number one auditor in terms of fee income
17 Jun 2019
Only 33% of the top 5,000 charities experienced an increase in fees, while 44% saw no change and 19% saw a decrease. The remainder did not disclose a fee or had only reported for one year.
Charity Financials’ annual audit spotlight report showed 43% of charities have not changed auditor within the last 10 years, but says with 797 firms advising the UK’s top charities, competition is strong.
There were 344 auditor changes in the latest financial year when compared to the previous year. Crowe UK gained the most in fee income worth £534,000 over the last 12 months, while Haysmacintyre won 25 new clients over the same period.
Crowe UK retained its top spot with audit fee income of £6.4m and an 8.9% market share. In second place was BDO with £4.8m in earnings, and Haysmacintyre at £4.5m.
The top 10 firms collectively earned £39.3m in fees, virtually unchanged from £39.1m last year, and accounted for 55% of the top 5,000 charity audit fees.
The audit firms with the most clients were Haysmacintyre with 303, Crowe UK with 271 and RSM with 213.
The largest charity to change auditor was Nuffield Health which paid a fee of £300,000 to Deloitte, having dropped Grant Thornton as auditor.
The most expensive audit for a charity with income under £1m was the Prudential Staff Charitable Trust which had an income of £872,000 and paid an audit fee of £36,000 to KPMG.