Signing accounts for Pre-School

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Becky V
Becky V Registered Posts: 374 Dedicated contributor 🦉
in General accounting discussion
Hi all I have been asked by a local preschool if i could do their accounts and sign them off. Can I do this? I am MAAT and will apply for MIP but do I need to do anything else?
Many thanks
Becky

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  • coojee
    coojee Registered Posts: 794 Epic contributor 🐘
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    Becky V wrote: »
    Hi all I have been asked by a local preschool if i could do their accounts and sign them off. Can I do this? I am MAAT and will apply for MIP but do I need to do anything else?
    Many thanks
    Becky

    As long as you don't get paid for it then it's fine. It's not an audit only an independent examination. I don't think you can prepare the accounts AND do the IE though otherwise you wouldn't be independent. Having said that I do know of people who do both, I don't know how they get away with it though.
  • Becky V
    Becky V Registered Posts: 374 Dedicated contributor 🦉
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    Why cant I get paid for it? The Preschool has a treasurer who does all the spreadsheets and then I would check it all over and sign it.
  • coojee
    coojee Registered Posts: 794 Epic contributor 🐘
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    Becky V wrote: »
    Why cant I get paid for it? The Preschool has a treasurer who does all the spreadsheets and then I would check it all over and sign it.

    Once you get paid for anything then you need to be an MIP. I know you said that you were applying for it so once you've got it it's OK. I only meant that before you get MIP you can't get paid for it.
  • burg
    burg Registered, Moderator Posts: 1,441 mod
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    Also you will need to be licensed in Independent Examination as well so will need to know what is required and have suitable experience. There is a podcast on the AAT somewhere to do with IE's.
    Regards,

    Burg
  • Becky V
    Becky V Registered Posts: 374 Dedicated contributor 🦉
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    I visited the preschool today and the previous accountant just did a profit and loss sheet and not signed anything, just a small note to say all was correct and then this was sent to the charity commission.
  • coojee
    coojee Registered Posts: 794 Epic contributor 🐘
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    Becky V wrote: »
    I visited the preschool today and the previous accountant just did a profit and loss sheet and not signed anything, just a small note to say all was correct and then this was sent to the charity commission.

    It depends how much their income is, if it's over £25,000 then it has to be an Independent Examination in the prescribed format. Even if it's less than £25,000 you'll still need to check the governing document as that may require an IE regardless of how much the income is. If it's a PLA constitution then I've a feeling that it does require an IE. I know all this because I do the books for a pre school and have just had the IE done on them.
  • Becky V
    Becky V Registered Posts: 374 Dedicated contributor 🦉
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    coojee wrote: »
    It depends how much their income is, if it's over £25,000 then it has to be an Independent Examination in the prescribed format. Even if it's less than £25,000 you'll still need to check the governing document as that may require an IE regardless of how much the income is. If it's a PLA constitution then I've a feeling that it does require an IE. I know all this because I do the books for a pre school and have just had the IE done on them.

    Thanks very much coojee for the information. I will look into this and get it set up. I may be asking you more questions as you have experience in this :-)

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