Quick Quiz. Simply state whether you think the following statements are true or false: 1. In a Charity, the treasurer has the ultimate responsibility for the finances. 2. The pre-signing of blank cheques is illegal. 3. The 'allocation of overheads' involves spreading or allocating 'core' or 'central' costs among the various projects you run. 4. The bank reconciliation is primarily about making sure that the bank charges on the statement are correct. 5. If a charity’s income exceeds £1,000 in the previous financial year, it must state that it is a registered charity on all cheques. 6. A 'qualified' audit or examination report is usually good news. 7. You must keep all old accounting records for 9 years. 8. 'Designated' reserves are funds where the donor has imposed a particular restriction on how the funds may be spent. 9. Charities are not allowed to accumulate general reserves above 25% of annual expenditure. 10. A trade is defined as 'every trade, manufacture, adventure or concern in the nature of trade.' 11. Charities are generally exempt from paying VAT 12. Round sum volunteer expenses are illegal.