Charity hit with ‘shocking’ 650 per cent increase in fees

Councillor Moraig Lyall said the Zetland Educational Trust was at risk of being 'swallowed up' by administration fees. 

Audit fees for a charity have increased by a staggering 650 per cent – raising fears for its future.

The SIC’s audit committee vice-chairwoman Catherine Hughson said she was “shocked” by the increase agreed for the Zetland Educational Trust.

Audit Scotland’s annual audit plan for the SIC, which was discussed by the committee on Monday, said the trust’s fee had increased from £400 to £3,000.

The report said the increase was a “reflection of the current audit market and the rising costs in delivering high quality audit work”.

However, Shetland Central member Moriag Lyall, said such fees risked “swallowing up” the trust’s reserves on administration costs, leaving it unable to perform its chairtable function.

The trust was found to “enhance the education benefit” of Shetland people, supporting projects such as excursions for school pupils, securing special equipment, or promoting swimming lessons.

Last year it granted bursaries totalling £2,000, which was less than the audit fee for the current year.

Mrs Lyall said the SIC, which is the trust’s governing body, may need to look at restructuring it so that its funding can be maintained for its stated purpose.

Audit Scotland has also increased its fee for the council by 16 per cent to £252,590.