The Regulator for Charities in England and Wales
All charities must prepare annual accounts and most have to, and all should, prepare trustees’ annual reports. This page summarises the guidance and help available on our website to assist those preparing of charity accounts:
Our Guidance Charity Reporting and Accounting: The essentials (CC15) sets out the accounting requirements for different sizes and types of charities when preparing accounts and reports for financial years commencing between 27th February 2007 and 31st March 2008 inclusive.
For financial years commencing on or after 1st April 2008, please refer to Charity Reporting and Accounting: The essentials April 2008 (CC15a).
Small non company charities that have an income of £100,000 or less can choose to prepare receipts and payments accounts (the simplest form of accounts). This pack provides a template for the layout and content of the trustees’ annual report and accounts and provides a simple approach for small charities who do not wish to prepare full accrual accounts.
Our Examples Trustees Annual Reports and Accounts (2005) contain an example of a receipts and payments pack which has been completed called St George’s Youth Club.
Charities wishing to produce accruals accounts are encouraged to use the Accruals Accounts Pack (CC17).
Advice on appointing an independent examiner, the duties of an independent examiner and preparing an independent examiner’s report. Refer to independent Examination of Charity Accounts PDF (CC63a).
For accounting years beginning on or after 1 April 2008 those small charitable companies which are not required to have an audit may opt for independent examination. Independent examiners also have a new duty to report matters of material significance to the Commission from 1 April. Revised guidance CC31 - Independent Examination of Charity Accounts is due for publication in early May. It explains for trustees what an independent examination is and how to go about selecting your examiner. For examiners the guidance sets out what you have to do and how to go about making your examiner’s report with plenty of worked examples and practical advice. The guidance will also explain the new duty to report to the Commission with worked examples.
Small non company charities that are below the audit threshold (gross annual income over £500k or total assets of more than £2.8m) can use this pack when preparing their accounts on an accrual basis. The pack provides a template for the layout and content of the trustees’ annual report and accounts.
Charities preparing accruals accounts are encouraged to be familiar with the SORP and knowledge of the SORP is essential if the Accruals Accounts Pack (CC17) is not being used.
Company charities prepare accounts on an accruals basis and therefore are required to use the SORP. The Example Trustees’ Annual Reports and Accounts (SORP 2005) include two worked small company examples. Non-company charities prepared on an accruals basis are required to use the SORP.
The Charities’ Statement of Recommended Practice (Charities SORP) provides recommendations for the format and content of charity reports and accounts. It applies to charities that prepare accruals accounts to give “a true and fair view.” As well as the Charities SORP this page provides further links that may be helpful to preparers of accounts.
Charities with an accounting period beginning on or after 1 April 2005 should refer to SORP 2005.
A number of examples of charity reports and accounts prepared under SORP 2005 are available to help those designing the format and layout of their accounts.
The framework for accounting and reporting has evolved significantly over the years. While the Charities Act 2006 simplifies the rules, we realise that from time to time, charities, their advisors and others will want to refer back to the more complex requirements for accounting and reporting which applied to earlier financial years.
View the deliberations of the new SORP Committee, who they are and what they discussed at the latest meeting.
ICAEW / CAF’s ‘Charities' Online Accounts Awards’ recognise excellence in financial reporting and encourage best practice in online financial accounts with examples of all sizes of charity. Take a look at these award winners for some practical assistance in preparing high quality reports and accounts.
Small charitable companies below the audit threshold may opt for an audit exemption report by a Reporting Accountant instead of an audit. The standards for such work are published by the Auditing Practices Board.
Provides links to the websites of other organisations that provide further information or guidance on accounting, tax and other financial issues.
The Charity Commission can provide further advice on general charity accounting matters.