Accountancy Academy Blog

In our previous blog post in October 2023 [HERE] we updated you about the new annual return process and questions for charities with a financial year ending in 2023. In this blog, we share important updates on specific example questions from the 2023 Charity Commission annual return process that require advance preparation and are new. The examples include, Donations, Grant making, Trustee payments, Employees, Governance, Safeguarding and External Risk and Impacts.

From October 2023, the Charity Commission has launched the new annual return for charities with a financial year ending in 2023. This means that if your charity has already completed its accounts for 2023, you can now upload them on the new Charity Commission online services account with the updated annual return questions. In this guide, we'll walk you through some of the key changes (including increased number of questions), provide insights, and offer some top tips to ensure a smooth submission process.

This post emphasizes the importance of having a well-thought-out reserves policy for charities and churches. It highlights the significance of such a policy for financial stability, strategic planning, and donor confidence. The Charities Statement of Recommended Practice (SORP) in the UK requires organizations to disclose their reserves policy in their year-end accounts. Recommendations from the Charities Commission suggest determining appropriate reserve levels, integrating reserves into risk management, and specifying their purpose and duration. The benefits of a well-crafted reserves policy include financial stability, strategic planning, and enhanced donor confidence. The post also offers tips for setting an appropriate reserves policy, including understanding financial risks, defining risk tolerance, seeking external guidance, involving the board and finance team, and regularly monitoring and reviewing the policy.

'My Charity Commission Account' is a new way for people who help charities, like trustees and charity contacts, to access the Charity Commission's online services. This service from the 31st of July 2023 has now replaced the old Charities Commission Online Services.

This blog post discusses trustee remuneration and expenses in the context of charity governance and compliance. It covers key points from the Charities Act 2011, outlining rules for trustee payments and expenses. Additionally, it explains the Charities SORP (Statement of Recommended Practice) and its disclosure requirements for trustees' remuneration and expenses. The post offers top tips for trustees and senior leaders to ensure compliance and transparency in managing these aspects effectively. The goal is to enhance transparency and accountability in resource management within charities, particularly concerning trustee compensation and expenses.

Related parties, as defined by the Charities SORP, are individuals or organizations with the ability to control or influence a charity's financial or operating policies. Charities must disclose transactions, relationships, balances, and potential conflicts of interest with related parties in their year-end accounts. These requirements go beyond legal compliance, aiming to enhance transparency and accountability in the charity sector, building trust with donors and stakeholders by demonstrating ethical financial management.

This blog explains the concept of capitalization in accounting for charities under FRS102 and the Charities SORP. It outlines the criteria for capitalizing expenditure, key considerations for distinguishing between expenses and capital expenditure, specific examples of capitalizable building projects, and special considerations for consecrated buildings.