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

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“ 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

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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

Moore Stephens in the UK Moore Stephens is a top ten independent

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Our objective is simple: to be viewed by clients

as the first point-of-contact for all their

financial, advisory and compliance needs. We

achieve this by providing sensible advice and

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Clients have access to a range of core and

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compliance, business and personal tax, trust

and estate planning, wealth management,

IT consultancy, governance and risk, business

support and outsourcing, corporate finance,

restructuring & insolvency and forensic

accounting.

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your needs. Moore Stephens International

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By combining local expertise and experience

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whatever their requirement, Moore Stephens

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Contact informationFor more information, contact your usual Moore Stephens

partner, or visit: www.moorestephens.co.uk