Guide for CLP Auditors

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Being a CLP Auditor

Thank you for agreeing to be a volunteer auditor. Your role is to provide a once-a-year independent, common‑sense check of your Constituency Labour Party (CLP) annual financial accounts, helping members trust that money is recorded accurately, used properly, and reported transparently.

You are not expected to be an accountant. You are expected to be curious, careful, and independent.

As a volunteer auditor, you:

  • Check that the Treasurer’s records make sense
  • Confirm money in minus money out = money in the bank
  • Provide reassurance to members and the Executive Committee
  • Flag concerns early — before they become problems

You do not:

  • Run the accounts
  • Approve spending decisions
  • Re‑do the Treasurer’s work

Core Principles

1. Independence

  • You should not be the Treasurer or closely involved in day‑to‑day finances
  • Ask questions — it’s your job, not a criticism

2. Evidence Over Assumption

  • Every figure should be supported by something tangible (bank statement, receipt, invoice)
  • If it isn’t written down, it didn’t happen

3. Consistency

  • Totals should match across documents
  • The same rules should apply every month

4. Proportionality

  • Focus on material issues
  • A missing £2 receipt matters less than unexplained £500 transfers

5. Transparency

  • If you don’t understand something, members probably won’t either
  • Accounts should be explainable in plain language

What You Should Check (Core Tasks)

1. Bank Reconciliation (The Big One)

Confirm that:

  • Opening balance + income − expenditure = closing balance
  • The Treasurer’s records match the bank statements

I.e. “Does the money in the account match what the books say?”

2. Income

Check a sample of income such as:

  • Membership Share payments from HQ
  • Donations
  • Fundraising proceeds

Confirm:

  • Amounts received appear in the bank
  • They are recorded once (not missed or duplicated)

3. Expenditure

Check a sample of payments:

  • Campaign materials
  • Room hire
  • Printing, postage, software

Confirm:

  • There is a receipt or invoice
  • Payments were authorised appropriately
  • Spending looks reasonable for CLP purposes

4. Restricted & Campaign Funds

If applicable:

  • Ensure money raised for a specific purpose was used for that purpose
  • Flag any mixing of restricted and general funds

5. Cash Handling (If Any)

If the CLP uses cash:

  • Check how cash is recorded and banked
  • Look for clear processes and prompt deposits

Cash should be rare, minimal, and well‑documented.

🚩 Red Flags to Watch For 🚩

Missing bank statements or long gaps  |  Payments without receipts or explanations  |  Personal accounts used for CLP money  |  Large or repeated cash withdrawals  |  Accounts you can’t make sense of after reasonable explanation

Red flags don’t automatically mean wrongdoing — but they do mean questions.

Your Output

You should provide:

  • A short written statement to the CLP (often AGM)
  • Clear confirmation or clearly stated concerns

Example:

“I have examined the accounts, bank statements, and supporting records and am satisfied they present a true and accurate view of the CLP’s finances for the period.”

Or, if needed: “I was unable to confirm X due to Y and recommend this is addressed.”

Rule Book Basis for the Auditor Role

The Labour Party Rule Book does not set out a long, technical description of auditors but does cover the CLP’s financial responsibilities.

In summary:

  • The Rule Book requires CLPs to keep accurate financial records and prepare annual accounts by 31 March each year.
  • These accounts must present a true and fair view of the CLP’s finances and be submitted to the Party on time.
  • CLPs must comply with legal obligations under electoral law, including donation reporting.

Party finance guidance states that:

  • CLPs should elect auditors at the AGM.
  • Auditors are responsible for reviewing the annual accounts prepared by the Treasurer and confirming that they’re supported by bank statements & records.

If the income or spending of the CLP exceeds £250,000, the accounts must be audited by a qualified auditor and a copy of the auditor’s report must be sent to GLU ([email protected]) with the accounts and a copy must also be sent directly to the Electoral Commission ([email protected]).

Guidance for CLP Finance is at www.labour.org.uk/resources/clp-finance

Your work as an auditor provides the independent assurance that the Rule Book expects, but takes account of local judgement.

In summary

You are there to protect the CLP, the Treasurer, and the members. A good audit builds confidence, not blame.

If something feels unclear, ask. If something feels wrong, say so — calmly, clearly, and in writing.

Tools, guidance and support

If you need support or advice, you can contact the Legal team dealing with PPERA compliance on [email protected], the CLP Support team on [email protected], the your regional office, or Scottish or Welsh Labour.