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Contents 2 3 5 9 12 14 Introduction and Methodology Audit fees Top auditors by fees received Top auditors by number of Top auditors by income audited Longevity of audit relationships 1

Audit spotlight report The headline finding of the past two Charity Audit Spotlight reports was that the growth in audit fees was slowing down. This report identifies that fees for the top 5,000 UK charities have increased by 4.4% ending a four-year run of decreasing fee growth. However, it is not doom and gloom as this report identifies that the majority of charities (85%) saw no change or a decrease in fees paid. There are 893 audit firms advising the UK s largest charities so competition is strong in the charity audit market. What this report also addresses, which remains surprising, is the number of organisations which stay with their current auditor and have done so for many years. It is possible that many organisations could lower their fees paid and get similar or better levels of service if they were to examine other firms providing the same services. It is good practice for charities to review their advisers and we hope that this report can be used as an aid in that process, for instance, figure 5 lists the top 50 firms and the average fee charged to charities which fall in defined total income bands. Other findings in this report include: n Audit fees cost the UK s largest charities 69.4m n 27% of charities have never changed auditor over the last decade. Would they get a better deal if they shopped about? n There are nearly 330 changes in audit provider on an annual basis (328 charities changed auditor in the latest year) n Crowe Clark Whitehill once again top the fee tables earning 5.7m in fees giving the firm a 8.2% market share n The firms with the most are haysmacintyre with 263 followed by Crowe Clark Whitehill with 240 and RSM with 236 n The largest charity to change auditor was the Wellcome Trust which paid a fee of 300k to Deloitte when it ly paid 200k to PwC n Last year we reported that haysmacintyre made the most client gains and the firm has done it again gaining 30 new worth audit fees of 449k Methodology Charity Financials records the names of all the advisers employed to provide services to the top 5,000 charities. These include auditors, investment managers, banks and legal advisers, as well as any others mentioned within charities annual financial statements. As far as auditors are concerned, it is the firm that conducted the audit and signed off the audit report that is recorded in the Charity Financials database. By recording the names of the advisers listed by each charity every year, we have identified when changes take place, the length of time relationships exist for, and how often charities make such changes. Background to the top 5,000 charities To be included in the Charity Financials top 5,000 charities, an organisation must have either an annual income that is greater than 1.468m, annual expenditure greater than 1.482m, or total funds/net assets greater than 3.429m. Only one of these three criteria needs to be met. Some organisations are excluded despite having charitable status, namely academies, independent schools, universities and housing associations. Those included in the top 5,000 are a varied group, both in terms of size and activity. Some focus on local services while others are involved in complex international projects. Some exist simply to provide funding to other organisations. One thing they all have in common is that they are required to be externally audited. The complexity of their operations will dictate the level of involvement required by the auditor, which in turn will be reflected in the fee charged, something that should be taken into consideration when viewing the tables included in this report. 2

Audit fees Slowdown in annual fee growth reverses Figure 1 shows that audit fees have increased by nearly 10m over the last five years growing from 60.1m to 69.4m. Previously we had reported that, whilst increasing year on year, the rate of fee growth was slowing and in the last report we recorded that growth had slowed for a fourth consecutive year. This time we see that there was a 4.4% growth, the highest level of growth over a five-year period. However, for the majority fees have remained the same or even decreased. In terms of the actual amounts, the top 5,000 charities paid out 69.4m in fees, compared to 66.5m the year. Figure 2 shows how many charities have increased or decreased their audit fees as well as the total audit in income bands. It shows that only 16% of the top 5,000 charities experienced an increase in audit fees, 46% saw no change, and 36% saw a decrease (with 2% either not disclosing a fee or only one year is recorded preventing a comparison to be made). Last year we recorded that 33% saw an increase, 48% stayed the same and 17% saw a decrease. This means that this year 82% either stayed the same or decreased compared to 65% last year which can only be welcome news to those charities. It can also be noticed that the percentage increase is greater for the higher income bands, meanwhile there was minimal change for the lower income bands. The greatest increase was experienced by the largest band with income greater than 80m which saw a 13.5% annual increase. The 99 organisations which belong to this band collectively saw an increase in fees of 1.1m which represents 38% of the total annual change. Figure 3 shows the range of audit fee values across each income band. It reveals that there were 32 charities that had an income greater than 80m and audit fees of more than 100,000, up from 28 reported last year. Conversely, there were 722 charities with income less than 1m and audit fees between 1k and 5k. Over half of the top 5,000 have fees less than 10k but 1,704 have fees between 10k and 30k and the remaining 386 have fees more than 30k. The most expensive audit for a charity with income under 1m was the Dutch Oak Tree Foundation which had income of just 163k Euros but had an audit fee of 40k. Meanwhile, the largest fee for a charity with an income between 1m and 3m was the 52k paid by the Assemblies of God Property Trust to PwC. The most expensive audit overall was for Save the Children International, which paid 438k to KPMG, up from 361k the year. Figure 4 details the charities with the largest audit fees. Band Figure 1: Total audit fees paid, by income band Number of organisations in band Audit fees in latest accounts Previous year Two years Three years Four years Average fee for band 0-1m 1,136 5.5 5.5 5.3 5.2 5.2 4,864 1m- 3m 1,374 11.9 11.5 11.0 10.6 10.2 8,613 3m- 10m 1,556 19.9 19.4 18.9 18.4 17.8 12,770 10m- 20m 492 10.0 9.7 9.4 9.0 8.2 20,200 20m- 40m 243 7.2 7.2 7.0 6.9 6.8 29,629 40m- 80m 103 4.8 4.4 4.3 4.1 4.2 47,453 80m+ 99 9.6 8.5 8.6 8.0 7.3 97,966 Total 5,003 69.4 66.5 64.9 62.6 60.1 14,170 % change on year 4.4 2.4 3.7 4.2-3

Figure 2: Audit fee increases and decreases Total audit fees year % of fees that stayed the same Band Number of organisations in band Total audit fees % change on year % of fees that decreased % of fees that increased 0-1m 1,136 5.5 5.5 1.4 19.7 11.8 64.9 1m- 3m 1,374 11.9 11.5 3.6 33.7 13.8 50.1 3m- 10m 1,556 19.9 19.4 2.7 39.5 17.4 41.4 10m- 20m 492 10.0 9.7 3.5 49.2 16.7 30.9 20m- 40m 243 7.7 7.6 1.2 49.8 28.0 20.6 40m- 80m 103 4.8 4.4 7.7 67.0 21.4 10.7 80m+ 99 9.6 8.5 13.5 72.7 14.1 11.1 Total 5,003 69.4 66.5 4.4 36.1 15.6 45.8 Band 1k - 5k 6k - 10k 11k - 15k Figure 3: Range of audit fees 16k - 20k Number of organisations in band 21k - 26k - 25k 30k 31k - 40k 41k - 50k 50k - 100k 101k + 0-1m 722 287 64 12 0 3 3 0 0 0 1m- 3m 349 630 250 76 23 8 2 3 2 0 3m- 10m 177 530 424 193 99 53 27 14 6 2 10m- 20m 14 52 124 107 64 44 39 18 15 1 20m- 40m 8 10 34 31 32 31 35 31 23 3 40m- 80m 1 5 2 8 8 5 18 19 33 3 80m+ 0 0 1 3 4 1 8 10 38 32 Total 1,271 1,514 899 430 230 145 132 95 117 41 Charity Figure 4: Largest audits, by fee size Year End Audit fee ( 000) Audit fee year ( 000) Two years ( 000) Three years ( 000) Four years ( 000) Save the Children International 31/12/2015 438 361 347 128 109 Nuffield Health 31/12/2015 400 300 300 300 300 Wellcome Trust 30/09/2016 300 200 500 400 300 Oxfam GB 31/03/2016 300 200 200 200 200 Charities Aid Foundation 30/04/2016 286 254 254 245 218 Canal & River Trust 31/03/2016 244 218 190 165 - Royal Academy of Dance 31/07/2015 239 244 224 194 187 City and Guilds of London Institute 31/08/2015 221 195 175 210 204 Cancer Research UK 31/03/2016 200 100 100 100 100 Academies Enterprise Trust 31/08/2016 191 145 169 130 67 4

Top auditors by fees received Crowe Clark Whitehill (CCW) remains in top position Crowe Clarke Whitehill (CCW) is the top charity auditor earning 5.7m in fee income from 240 as figure 5 illustrates. The firms charity business headed by Pesh Framjee earned 1.1m more than PricewaterhouseCoopers in second position earning 4.6m in fees. BDO is in third position with 4.5m in fees. Charities should use this table to compare the fees charged by firms to charities of a similar size. The table is an over simplification based on average fee but it can be used to shortlist firms which charities may want to invite to a beauty parade. For instance, the average fee charged by CCW to charities with income less than 1m was 5.9k compared to 8.4k charged by PwC. Figure 6 shows the historic audit fee totals for each firm each year, and reveals that there has been very little change in the positioning. The only movements in the positioning of firms in the top ten is PwC moving into second position above BDO and Deloitte moving above Buzzacott. The largest movements in the table are the positions of PKF Littlejohn which last year was at 39th position but are now ranked 27th and Price Bailey which was ranked 40th and is now 30th. The top 10 firms collectively earned 39.1m in fees, up from 36.9m last year, which represents 58.1% of all top 5,000 charity audit fees. Last year the top 10 firms represented 55.8% of total fee income. Of course, those firms at the top of these rankings are not necessarily the most expensive their revenue may result from the size and number of that they audit. However, this table nevertheless gives us an idea of the main players in the audit world and who is increasing their market share. The total list of 893 auditors is available to charities upon request (email mpincher@wilmington.co.uk), while subscribers to Charity Financials already have access to this. 5

Charity Audit Spotlight Figure 5: Top 50 auditors by fees received and average fees per income band (continued on next page) Auditor Total audit fees ( 000s) Income Band Total for top 5000 0-1m 1m - 3m Average fee ( 000s) No of Income audited Avg fee in band No. of Avg fee in band 000 000 1 Crowe Clark Whitehill LLP 5,723 23.85 240 4,844.49 5.90 29 10.82 51 2 PricewaterhouseCoopers LLP 4,639 37.11 125 5,649.72 8.38 13 14.43 21 3 BDO LLP 4,487 23.37 192 3,592.95 6.91 22 12.68 28 4 RSM 4,242 17.97 236 2,578.54 6.39 23 12.25 52 5 Grant Thornton UK LLP 3,920 27.61 142 3,875.73 6.40 20 10.09 22 6 KPMG LLP 3,908 30.29 129 4,296.30 5.93 15 8.52 27 7 haysmacintyre 3,684 14.01 263 1,968.27 5.41 32 10.49 63 8 Buzzacott LLP 2,944 16.54 178 1,141.52 7.72 39 12.28 58 9 Deloitte LLP 2,616 33.97 77 2,948.17 9.91 11 12.60 10 10 Kingston Smith LLP 2,434 15.31 159 1,444.01 6.46 24 12.03 36 11 Mazars LLP 1,906 12.62 151 1,018.58 4.42 19 9.15 40 12 Sayer Vincent 1,633 13.84 118 1,060.27 8.33 6 9.35 37 13 National Audit Office 1,612 57.57 28 3,067.09-0 10.50 2 14 Moore Stephens LLP 1,240 11.70 106 601.60 5.21 28 10.24 29 15 Saffery Champness 1,155 12.42 93 478.00 6.66 32 9.52 21 16 Scott-Moncrieff 652 10.52 62 454.64 4.50 10 10.00 17 17 Ernst & Young LLP 585 15.00 39 399.52 2.50 4 8.00 8 18 MHA MacIntyre Hudson 548 10.75 51 217.69 5.82 11 9.72 18 19 HW Fisher & Company 502 11.16 45 176.22 9.00 9 10.82 17 20 Cohen Arnold 485 15.65 31 156.49 5.75 4 8.55 11 21 Smith & Williamson 478 16.48 29 278.13 5.50 2 5.50 2 22 PKF Cooper Parry 459 15.83 29 159.10 4.33 6 9.25 8 23 Wilkins Kennedy LLP 438 12.88 34 105.57 8.89 9 8.36 11 24 Kreston Reeves 428 10.70 40 104.56 5.28 18 7.11 9 25 Knox Cropper 404 13.47 30 500.38 4.30 10 8.11 9 26 BHP Chartered Accountants 339 11.30 30 159.95 3.60 5 11.33 6 27 PKF Littlejohn LLP 312 15.60 20 103.74-0 9.38 8 28 Haines Watts 306 7.46 41 253.39 3.75 12 6.27 11 29 Bishop Fleming 287 8.20 35 147.31 4.83 6 6.87 15 30 Price Bailey 285 11.88 24 92.25 8.86 7 7.71 7 31 Francis Clark LLP 284 10.52 27 181.08 3.00 5 5.50 4 32 Beever and Struthers 277 10.26 27 172.13 2.00 2 11.13 8 33 Henderson Loggie 260 9.63 27 241.29 1.80 5 7.43 7 34 Chiene + Tait LLP 257 8.29 31 133.30 3.25 8 - - 35 PEM 235 9.40 25 82.79 5.00 7 8.90 10 36 Jacob Cavenagh & Skeet 224 11.20 20 87.82 5.60 5 6.80 5 37 Wylie & Bisset LLP 221 7.89 28 129.83 4.50 4 5.90 10 38 Critchleys LLP 210 6.56 32 119.40 4.55 11 6.82 11 39 UHY Hacker Young 193 8.77 22 124.76 7.63 8 7.33 6 40 James Cowper Kreston 180 9.00 20 66.58 6.00 3 8.50 6 41 Menzies LLP 177 17.70 10 126.62 6.00 1-0 42 Moore and Smalley 173 9.61 18 87.16 5.00 1 3.33 3 43 Larking Gowen 169 8.45 20 73.30 4.20 5 6.57 7 44 Wenn Townsend 157 7.48 21 73.80 4.88 8 6.60 5 45 Johnston Carmichael 138 12.55 11 88.78 3.00 1 8.80 5 46 Lovewell Blake LLP 135 9.00 15 67.01 4.25 4 5.50 2 47 Broomfield & Alexander 124 7.75 16 91.02-0 5.50 4 48 Monahans 121 9.31 13 47.70 3.25 4 8.00 3 49 Blick Rothenberg LLP 118 16.86 7 4.23 13.33 6 38.00 1 50 Whittingham Riddell LLP 115 9.58 12 55.71 5.00 3 9.75 4 No. of 6

Figure 5: Top 50 auditors by fees received and average fees per income band (continued) Auditor 3m - 10m 10m - 20m 20m - 40m 40m - 80m 80m+ No. of Avg fee in band No. of Avg fee in band No. of Avg fee in band No. of Avg fee in band Avg fee in band 000 000 000 000 000 1 Crowe Clark Whitehill LLP 18.43 61 23.09 43 39.48 29 53.00 11 72.19 16 2 PricewaterhouseCoopers LLP 16.22 23 28.17 24 36.67 15 51.00 8 105.71 21 3 BDO LLP 17.79 57 22.00 41 33.76 21 45.15 13 76.80 10 4 RSM 16.21 92 20.68 37 29.13 15 45.14 14 44.33 3 5 Grant Thornton UK LLP 16.11 45 25.42 19 35.53 15 51.27 11 126.50 10 6 KPMG LLP 19.42 31 21.05 20 27.50 16 53.58 12 185.38 8 7 haysmacintyre 14.10 102 19.81 47 22.88 16 38.33 3-0 8 Buzzacott LLP 19.39 57 26.21 14 44.67 6 68.00 2 27.50 2 9 Deloitte LLP 10.78 18 44.00 9 30.46 13 36.00 6 121.00 10 10 Kingston Smith LLP 13.07 60 25.10 21 25.07 14 51.50 2 40.50 2 11 Mazars LLP 13.08 61 15.25 20 29.30 10 60.00 1-0 12 Sayer Vincent 12.59 51 16.33 12 35.83 6 30.40 5 32.00 1 13 National Audit Office 27.67 3 31.00 4 45.75 4 49.00 3 87.83 12 14 Moore Stephens LLP 16.16 32 9.14 7 24.00 9-1 - 0 15 Saffery Champness 15.77 30 21.17 6 40.67 3-0 20.00 1 16 Scott-Moncrieff 11.26 19 11.56 9 17.00 7-0 - 0 17 Ernst & Young LLP 10.71 14 32.67 6 27.00 5 15.00 2-0 18 MHA MacIntyre Hudson 10.93 15 20.60 5 21.00 2-0 - 0 19 HW Fisher & Company 11.94 16 20.00 1 13.00 2-0 - 0 20 Cohen Arnold 22.67 12 27.33 3 14.00 1-0 - 0 21 Smith & Williamson 12.13 16 27.50 6 19.00 2 59.00 1-0 22 PKF Cooper Parry 13.00 13 18.00 1-0 172.00 1-0 23 Wilkins Kennedy LLP 19.00 14-0 - 0-0 - 0 24 Kreston Reeves 19.00 10 26.33 3-0 - 0-0 25 Knox Cropper 7.67 3 26.00 3 4.00 1 31.50 2 60.00 2 26 BHP Chartered Accountants 13.00 16 15.00 3-0 - 0-0 27 PKF Littlejohn LLP 19.09 11-0 27.00 1-0 - 0 28 Haines Watts 9.40 10 13.00 6 12.00 1 8.00 1-0 29 Bishop Fleming 7.60 10 19.75 4-0 - 0-0 30 Price Bailey 17.57 7 16.00 2 14.00 1-0 - 0 31 Francis Clark LLP 12.00 14 13.50 2 26.00 2-0 - 0 32 Beever and Struthers 7.30 10 15.86 7-0 - 0-0 33 Henderson Loggie 7.50 6 15.29 7 28.00 1 19.00 1-0 34 Chiene + Tait LLP 11.75 4 15.40 5-0 - 0-0 35 PEM 10.71 7-0 36.00 1-0 - 0 36 Jacob Cavenagh & Skeet 9.71 7 31.33 3-0 - 0-0 37 Wylie & Bisset LLP 7.64 11 6.00 1 27.00 2-0 - 0 38 Critchleys LLP 6.63 8 13.00 1 19.00 1-0 - 0 39 UHY Hacker Young 9.67 6 11.00 1-0 19.00 1-0 40 James Cowper Kreston 9.80 10 13.00 1-0 - 0-0 41 Menzies LLP 18.75 4 18.33 3 20.50 2-0 - 0 42 Moore and Smalley 11.29 14-0 - 0-0 - 0 43 Larking Gowen 12.67 6 13.00 2-0 - 0-0 44 Wenn Townsend 7.83 6 19.00 2-0 - 0-0 45 Johnston Carmichael 9.00 1 17.00 3 31.00 1-0 - 0 46 Lovewell Blake LLP 10.33 6 15.00 3-0 - 0-0 47 Broomfield & Alexander 8.22 9 9.33 3-0 - 0-0 48 Monahans 11.80 5 25.00 1-0 - 0-0 49 Blick Rothenberg LLP - 0-0 - 0-0 - 0 50 Whittingham Riddell LLP 9.00 3 17.00 2-0 - 0-0 No. of 7

Figure 6: Auditors fee history Auditor Latest accounts 2015/14 2014/13 2013/12 2012/11 Value of fees ( 000) Value of fees ( 000) Value of fees ( 000) Value of fees ( 000) Value of fees ( 000) Crowe Clark Whitehill LLP 5,723 1 5,448 1 5,532 1 5,446 1 4,986 1 PricewaterhouseCoopers LLP 4,639 2 4,334 3 4,693 2 4,713 2 4,797 2 BDO LLP 4,487 3 4,423 2 4,188 4 4,075 4 3,977 4 RSM 4,237 4 4,185 4 4,192 3 4,484 3 4,370 3 Grant Thornton UK LLP 3,920 5 3,653 5 3,448 5 3,113 5 2,857 5 KPMG LLP 3,908 6 3,458 6 3,186 6 2,776 6 2,717 6 haysmacintyre 3,684 7 3,385 7 3,051 7 2,714 7 2,534 7 Deloitte LLP 3,100 8 2,717 9 2,441 10 2,292 10 2,247 9 Buzzacott LLP 2,944 9 2,813 8 2,729 8 2,631 8 2,530 8 Kingston Smith LLP 2,434 10 2,545 10 2,531 9 2,306 9 2,062 10 Mazars LLP 1,906 11 1,797 11 1,777 11 1,845 11 1,805 11 Sayer Vincent 1,633 12 1,606 12 1,552 12 1,335 13 1,200 13 National Audit Office 1,612 13 1,500 13 1,463 13 1,393 12 1,395 12 Moore Stephens LLP 1,240 14 1,252 14 1,264 14 1,118 14 983 14 Saffery Champness 1,155 15 964 15 1,103 15 1,016 15 870 15 Scott-Moncrieff 652 16 507 18 513 17 479 18 521 16 Ernst & Young LLP 585 17 477 21 539 16 496 17 310 25 MHA MacIntyre Hudson 548 18 479 20 420 21 434 20 418 18 HW Fisher & Company 502 19 549 16 509 18 453 19 395 19 Cohen Arnold 485 20 523 17 424 20 413 21 383 21 Smith & Williamson 478 21 504 19 332 26 338 22 393 20 PKF Cooper Parry 459 22 397 22 343 23 267 28 278 26 Wilkins Kennedy LLP 438 23 386 25 338 25 301 25 328 23 Kreston Reeves 428 24 396 23 470 19 333 23 374 22 Knox Cropper 404 25 390 24 361 22 509 16 464 17 BHP Chartered Accountants 339 26 258 29 197 36 169 37 144 36 PKF Littlejohn LLP 312 27 184 39 178 39 152 40 142 37 Haines Watts 306 28 290 27 276 28 273 27 258 27 Bishop Fleming 287 29 250 30 242 29 221 30 178 32 Price Bailey 285 30 176 40 160 41 117 46 118 45 Francis Clark LLP 284 31 308 26 302 27 274 26 222 28 Beever and Struthers 277 32 225 33 213 35 178 35 211 29 Henderson Loggie 260 33 261 28 229 30 186 32 174 33 Chiene + Tait LLP 257 34 231 32 217 33 155 39 139 39 PEM 231 35 245 31 342 24 320 24 327 24 Jacob Cavenagh & Skeet 224 36 189 38 156 42 184 33 140 38 Wylie & Bisset LLP 221 37 201 35 190 37 137 41 136 40 Critchleys LLP 210 38 209 34 219 32 220 31 210 30 UHY Hacker Young 193 39 191 37 169 40 173 36 173 34 James Cowper Kreston 180 40 176 40 185 38 159 38 129 41 Menzies LLP 177 41 171 42 215 34 180 34 160 35 Larking Gowen 169 42 137 45 145 43 132 42 127 42 Moore and Smalley 167 43 166 43 134 45 125 44 109 49 Wenn Townsend 157 44 145 44 120 49 118 45 112 47 Johnston Carmichael 138 45 116 51 67 67 52 93 57 77 Lovewell Blake LLP 135 46 137 46 139 44 116 48 118 46 Broomfield & Alexander 124 47 127 48 92 53 73 60 51 89 Monahans 121 48 110 53 89 55 84 54 67 64 Blick Rothenberg LLP 118 49 92 57 99 52 90 52 122 44 Whittingham Riddell LLP 115 50 117 50 123 48 113 50 97 52 8

Top auditors by number of haysmacintyre and CCW overtake RSM Last year we reported that RSM had the most and that CCW and haysmacintyre were closing the gap. This year we can report that RSM have lost the top spot and have moved into third position with 236 from 244 reported last year. Haysmacintyre are now in the top spot with 263 and CCW is second with 240. BDO and Buzzacott help make up the top five as figure 7 illustrates. It should be noted that these figures can fluctuate due to charities moving in and out of the top 5,000 ranking, rather than simply because there were changes in the firms used by charities. Charity Financials users can monitor the real change in client movement by examining the gained section of each auditor s profile, which lists their newly acquired and the auditors those charities ly used. The top 10 auditors by number of worked with 1,816 charities, down from the 1,830 charities we reported for the top ten last year, which represent 36.3% of the top 5,000 sample. 9

Figure 7: Auditors by number of Auditor Market share % Latest accounts 2014/13 2013/12 2012/11 2011/10 Number Number Number Number Number of of of of of haysmacintyre 5.26 263 1 237 3 218 3 211 4 195 3 Crowe Clark Whitehill LLP 4.80 240 2 238 2 232 2 239 2 224 2 RSM 4.72 236 3 241 1 254 1 279 1 282 1 BDO LLP 3.84 192 4 209 4 214 4 219 3 216 4 Buzzacott LLP 3.56 178 5 174 5 169 5 156 6 151 5 Kingston Smith LLP 3.18 159 6 160 6 165 6 159 5 152 6 Mazars LLP 3.02 151 7 151 7 150 8 144 8 138 7 Grant Thornton UK LLP 2.84 142 8 151 7 153 7 147 7 142 7 KPMG LLP 2.60 130 9 123 10 112 10 109 10 109 10 PricewaterhouseCoopers LLP 2.50 125 10 135 9 138 9 135 9 149 9 Sayer Vincent 2.36 118 11 115 11 105 12 97 12 91 11 Moore Stephens LLP 2.12 106 12 108 12 109 11 100 11 89 12 Saffery Champness 1.86 93 13 86 13 87 13 87 13 88 13 Deloitte LLP 1.54 77 14 85 14 84 14 82 14 79 14 Scott-Moncrieff 1.24 62 15 46 16 45 16 43 16 42 16 MHA MacIntyre Hudson 1.02 51 16 47 15 41 17 41 17 42 15 HW Fisher & Company 0.90 45 17 45 17 47 15 45 15 44 17 Haines Watts 0.82 41 18 40 18 40 18 38 18 33 18 Kreston Reeves 0.80 40 19 38 19 39 19 32 20 32 19 Ernst & Young LLP 0.78 39 20 33 20 33 20 32 20 25 20 Bishop Fleming 0.70 35 21 33 20 32 22 29 23 25 20 Wilkins Kennedy LLP 0.68 34 22 31 22 29 24 27 27 26 22 Critchleys LLP 0.64 32 23 31 22 33 20 33 19 31 22 Cohen Arnold 0.62 31 24 31 22 31 23 31 22 30 22 Chiene + Tait LLP 0.62 31 24 26 30 23 31 15 38 14 30 BHP Chartered Accountants 0.60 30 26 26 30 20 34 18 32 16 30 Knox Cropper 0.60 30 26 28 27 25 29 23 29 24 27 Smith & Williamson 0.58 29 28 28 27 25 29 28 24 27 27 PKF Cooper Parry 0.58 29 28 31 22 28 26 22 30 23 22 Wylie & Bisset LLP 0.56 28 30 24 33 22 32 17 36 16 33 National Audit Office 0.56 28 30 28 27 27 27 28 24 30 27 Francis Clark LLP 0.54 27 32 29 26 27 27 26 28 24 26 Henderson Loggie 0.54 27 32 22 35 20 34 15 38 15 35 Beever and Struthers 0.54 27 32 24 33 22 32 18 32 21 33 Price Bailey 0.48 24 35 18 41 17 39 15 38 16 41 PEM 0.48 24 35 26 30 29 24 28 24 30 30 UHY Hacker Young 0.44 22 37 20 36 18 37 18 32 18 36 Wenn Townsend 0.42 21 38 20 36 17 39 17 36 16 36 James Cowper Kreston 0.40 20 39 19 38 20 34 18 32 16 38 Jacob Cavenagh & Skeet 0.40 20 39 19 38 18 37 20 31 20 38 Larking Gowen 0.40 20 39 15 45 16 41 13 45 13 45 PKF Littlejohn LLP 0.40 20 39 15 45 15 43 13 45 11 45 BWMacfarlane 0.36 18 43 19 38 14 45 15 38 11 38 Moore and Smalley 0.34 17 44 17 42 15 43 14 43 13 42 Broomfield & Alexander 0.32 16 45 16 44 12 50 11 53 8 44 Lovewell Blake LLP 0.30 15 46 17 42 16 41 15 38 14 42 Geoghegans 0.28 14 47 11 54 9 63 9 59 6 54 Tait Walker Chartered Accountants 0.26 13 48 12 51 11 55 9 59 9 51 Sheen Stickland LLP 0.26 13 48 14 47 14 45 14 43 12 47 Monahans 0.26 13 48 13 48 13 48 12 48 9 48 10

Figure 8 shows firms which increased their number of and the value in audit fees the increase represents. There is a caveat with this data in that we have only included charities here which had a named auditor so a comparison can be made. It therefore doesn t include new organisations which have only one financial reported year. Haysmacintyre made the greatest addition to their fee income by adding 30 which have a collective audit fee of 449k. In our Spotlight, they were top adding 19 worth 257k in fees. They are followed by Deloitte which gained 3 new worth 328k. PwC added 4 worth 214k and Grant Thornton added seven worth 201k in fees. Figure 9 shows the firms which attained the most. Again, haysmacintyre is top with 30 additions followed by KPMG with 12 and Sayer Vincent with 11. Meanwhile Figure 10 shows the largest 20 charities (by total income) to change auditor, showing the current and auditor and the fees paid. Figure 8: Firms which made the greatest fees from newly acquired Auditor New Fees from new Number of new 1 haysmacintyre 449 30 2 Deloitte LLP 328 3 3 PricewaterhouseCoopers LLP 214 4 4 Grant Thornton UK LLP 201 7 5 Kingston Smith LLP 166 9 6 Crowe Clark Whitehill LLP 165 7 7 RSM 160 10 8 Price Bailey 123 7 9 Mazars LLP 121 6 10 Saffery Champness 119 9 Figure 9: Firms by the number of attained Auditor Fees from new ( 000) Number of new 1 haysmacintyre 449 30 2 KPMG LLP 117 12 3 Sayer Vincent 114 11 4 RSM 160 10 5 Saffery Champness 119 9 6 Kingston Smith LLP 166 9 7 MHA MacIntyre Hudson 86 7 8 Grant Thornton UK LLP 201 7 9 Crowe Clark Whitehill LLP 165 7 10 Scott-Moncrieff 84 7 11

Figure 10: The largest 20 charities to change auditor Charity Income Current auditor Previous auditor Current audit fee ( 000) Wellcome Trust 390.3 Deloitte LLP PricewaterhouseCoopers LLP 300 200 Ormiston Trust, The 255.48 Grant Thornton UK LLP Ensors 109 108 Methodist Homes 191.468 PricewaterhouseCoopers LLP RSM 179 95 St Mungo Community Housing Association Limited 82.794 RSM Smith & Williamson 42 141 United Response 79.077 Crowe Clark Whitehill LLP Kingston Smith LLP 34 32 Natural History Museum 76.171 Kingston Smith LLP National Audit Office 73 71 Imperial War Museum 56.179 National Audit Office Kingston Smith LLP 54 52 BBC Children in Need 56.046 Ernst & Young LLP KPMG LLP 21 19 NACRO 52.587 Mazars LLP BDO LLP 60 78 Samworth Foundation 45.689 KPMG LLP Grant Thornton UK LLP 6 2 South Lanarkshire Leisure Ltd 37.507 Scott-Moncrieff KPMG LLP 14 16 Diabetes UK 37.028 Crowe Clark Whitehill LLP Grant Thornton UK LLP 40 45 London Marathon Charitable Trust Limited, The 31.126 haysmacintyre Alliotts 15 16 Hinxton Hall Limited 30.933 Deloitte LLP PricewaterhouseCoopers LLP 18 16 Human Appeal International 30.552 Moore Stephens LLP Haines Watts 23 7 Milestones Trust 28.938 Mazars LLP Warren & Co 18 18 Benenden Hospital Trust, The 28.841 KPMG LLP Crowe Clark Whitehill LLP 31 32 Scottish Autism 25.068 Scott-Moncrieff Cheetham & Co 14 16 Healthcare Quality Improvement Partnership 24.48 Kingston Smith LLP Buzzacott LLP 13 15 Society of Jesus Trust of 1929 for Roman Catholic Purposes 24.362 haysmacintyre Kingston Smith LLP 31 34 Previous audit fee ( 000) Top auditors by income audited Income audited by PwC increases by 3.1% PwC audits the largest amount of charity income a total of 5.65bn (figure 11). This is down by 2.8% on the 5.8bn audited in the year. It has held this top ranking for the past five years, helped by large such as Cancer Research UK ( 635.2m income), the National Trust ( 522.2m) and Oxfam ( 414.7m). CCW comes second in the list with 4.85bn. Its largest include the Academies Enterprise Trust (AET, 247.1m), Oasis Charitable Trust ( 198.4m) and Sightsavers International( 198.3m). PwC has a 11.4% market share of income audited down from 12.2% we reported last year, while CCW has 9.8% up from 9.6% last year and KPMG has 8.7% compared to 8.2% last year. The top 10 firms collectively audited 69.3% of the top 5,000 charities income which is up from the 65.2% the group reported last year. 12

Figure 11: Top auditors by Income Audited Charity Total income audited Income audited year Income audited 2 years Income audited 3 years Income audited 4 years PricewaterhouseCoopers LLP 5,649.7 1 5,810.4 1 5,621.1 1 5,176.0 1 5,009.7 1 Crowe Clark Whitehill LLP 4,844.5 2 4,666.0 2 4,423.5 2 4,942.2 2 4,215.7 2 KPMG LLP 4,301.0 3 3,936.8 3 3,276.5 5 2,619.4 7 2,562.2 7 Grant Thornton UK LLP 3,875.7 4 3,565.1 5 3,588.9 3 3,543.9 3 2,721.5 5 BDO LLP 3,593.0 5 3,602.8 4 3,308.8 4 3,542.3 4 3,005.3 3 National Audit Office 3,067.1 6 3,051.5 6 2,874.4 6 2,763.8 5 2,821.6 4 Deloitte LLP 2,948.2 7 2,443.5 8 2,044.7 8 1,796.0 8 1,823.3 8 RSM 2,575.3 8 2,552.0 7 2,769.1 7 2,629.7 6 2,586.9 6 haysmacintyre 1,968.3 9 1,756.0 9 1,553.8 9 1,278.2 10 1,127.9 10 Kingston Smith LLP 1,444.0 10 1,413.6 10 1,268.5 10 1,313.3 9 1,183.6 9 Buzzacott LLP 1,141.5 11 1,126.0 11 1,009.0 11 967.0 11 1,087.7 11 Sayer Vincent 1,060.3 12 995.5 12 967.0 12 790.5 13 674.7 13 Mazars LLP 1,018.6 13 897.0 13 904.2 13 922.2 12 878.7 12 Moore Stephens LLP 601.6 14 588.3 14 573.9 14 476.1 14 497.0 14 Knox Cropper 500.4 15 438.0 15 428.3 16 386.3 17 361.0 17 Saffery Champness 478.0 16 432.8 16 404.3 17 396.3 16 494.4 15 Scott-Moncrieff 454.6 17 355.6 17 402.0 18 403.4 15 387.1 16 Ernst & Young LLP 399.5 18 301.0 18 542.3 15 256.7 18 211.1 19 Smith & Williamson 278.1 19 292.5 19 225.5 20 211.2 19 258.1 18 Haines Watts 253.4 20 235.3 22 167.8 25 160.4 24 121.7 29 Henderson Loggie 241.3 21 252.2 20 222.8 21 151.3 25 135.5 24 MHA MacIntyre Hudson 217.7 22 182.4 24 217.9 22 176.6 22 161.9 21 Francis Clark LLP 181.1 23 177.5 25 169.9 24 168.2 23 132.9 26 HW Fisher & Company 176.2 24 192.6 23 195.2 23 193.0 21 144.4 22 Beever and Struthers 172.1 25 144.7 29 132.9 31 112.9 30 133.8 25 BHP Chartered Accountants 159.9 26 140.5 30 109.1 37 98.2 36 83.3 41 PKF Cooper Parry 159.1 27 154.6 28 132.2 32 102.9 33 102.4 34 Cohen Arnold 156.5 28 174.0 26 134.6 30 128.6 27 128.8 27 Bishop Fleming 147.3 29 166.6 27 137.8 28 110.4 31 87.7 39 Chiene + Tait LLP 133.3 30 131.5 31 124.9 34 73.6 44 63.4 44 Wylie & Bisset LLP 129.8 31 119.5 33 117.2 35 79.3 41 73.6 42 Menzies LLP 126.6 32 116.9 35 126.4 33 119.8 28 125.0 28 Calcutt Matthews 126.4 33 84.5 40 59.8 52 54.9 51 50.8 50 UHY Hacker Young 124.8 34 113.8 36 109.7 36 99.1 34 97.9 36 Critchleys LLP 119.4 35 127.3 32 141.8 27 131.6 26 120.6 30 Wilkins Kennedy LLP 105.6 36 111.6 37 89.5 39 103.3 32 88.2 37 Kreston Reeves 104.6 37 117.7 34 135.0 29 99.1 35 179.3 20 PKF Littlejohn LLP 103.7 38 74.4 45 71.4 44 78.1 42 72.1 43 Price Bailey 92.2 39 69.9 51 71.0 45 42.9 60 38.9 64 Broomfield & Alexander 91.0 40 87.5 38 59.0 53 51.6 54 43.7 60 McCabe Ford Williams 89.9 41 79.6 42 87.3 40 80.4 40 109.5 33 Johnston Carmichael 88.8 42 80.8 41 57.8 54 42.4 61 46.4 55 Jacob Cavenagh & Skeet 87.8 43 79.3 43 75.5 42 87.0 37 101.5 35 PEM 82.7 44 71.2 48 144.2 26 113.0 29 113.4 31 Moore and Smalley 77.4 45 85.4 39 59.9 51 57.4 49 46.8 54 Wales Audit Office 77.2 46 72.2 46 90.9 38 83.6 39 85.8 40 Hardie Caldwell Business Advisers Limited 76.2 47 74.4 44 70.6 46 56.6 50 53.2 47 Wenn Townsend 73.8 48 72.2 47 48.5 58 46.7 58 48.2 52 Larking Gowen 73.3 49 50.4 58 63.1 49 58.3 48 51.9 49 Lovewell Blake LLP 67.0 50 67.2 53 70.0 47 58.7 47 55.5 46 13

Longevity of audit relationships 41% of charities have not changed auditor in past decade Charity Financials holds data on all of the auditor changes made by the top 5,000 charities over the past fifteen years. Figure 12 shows how many charities have had either just one single auditor or multiple auditors over this period. Surprisingly, 42% of charities have stayed with the same auditor for the whole period. Among those that have changed, 36% have changed once and 18% have changed twice, while 211 charities have changed three or four times. Only 1 organisations changed 5 times. Figure 13 shows the number of years charities have remained with their current auditor. For those that have changed, they have most often done so after seven years. The Charity Financials database has recorded a total of 326 auditor changes to the top 5,000 population comparing the latest financial period and that which preceded it. Figure 12: The number of organisations that have changed auditor 4% 18% 36% 42% no change changed once changed twice changed 3 times changed 4 times changed 5 times Figure 13: Number of years with current auditor 800 700 Number of charities 600 500 400 300 200 100 0 412 465 392 392 312 318 692 306 210 168 151 150 141 395 348 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 14

New Charity Benchmarking Reports Charity Benchmarking Reports are designed to save you time preparing your performance strategy so you can effectively compare your financial performance against your peers. Just choose up to of your peers within the top 5000 UK charities and we ll: Run comparisons on individual income streams and calculate growth rates Use costs to calculate net returns looking at yearly change and long term averages Include key financial ratios e.g. net asset cover and asset turnover Send your completed report in a simple excel format within 3 to 5 days Download a sample report For more information contact: Call: Alex McKenna 0207 324 2350 Email: alex.mckenna@wilmingtonplc.com 2017 Charity Financials a division of Wilmington Publishing & Information Ltd, part of Wilmington PLC. Wilmington Publishing & Information is a limited company registered in England & Wales. Registered office: 6-14 Underwood Street, London, N1 7JQ. Company Registration number: 03368442. VAT NO.GB 899 3725 51 15