The Client
The charity acquired land in the UK for the purposes of rewilding and re-introducing flora and fauna in natural habitats and was referred to us after experiencing difficulties with its annual audit. The auditors were declining to sign off on the accounts on a going-concern basis after spotting a technical breach of covenant with one of the charity’s key lenders. This led to technical balance sheet insolvency and a threat to the financial viability of the organisation.
The Conclusion
Following reporting itself to the Charity Commission, the CC requested certain steps be taken including obtaining advice from an Insolvency Practitioner. We conducted a review of the business and key financial measures, including cash flow forecasts, to assist the trustees in their turnaround strategy whilst advising them on their obligations as trustees. The charity successfully secured new funding on more advantageous terms and remedied the covenant breach. We completed our review and recommendations, which has helped lead to the organisation’s continued operation on a more secure financial footing for the future.
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