Sandy Adirondack, Governance and legal training and consultancy for the voluntary sector provides legal updates for voluntary organisations. In Sandy’s latest update you can find information on changes to the statement of recommended practice for charity accounts (SORPs) and an increase in the audit threshold.
Keeping up with the SORPs
Nearly all UK charities’ annual reports, and many charities’ annual accounts, have to comply with the statement of recommended practice for charity accounts (charities SORP). For financial years starting before 1 January 2015 the 2005 SORP applied. For financial years starting in 2015 (i.e. the annual accounts and reports you will be producing in 2016) some charities have to comply with a new FRS 102 SORP and some have a choice between the FRS 102 SORP and a FRSSE SORP. And for financial years starting in 2016 it will be the FRS 102 SORP for all. Three changes in three years! Nightmare!
For more information, visit: www.sandy-a.co.uk/finance.htm#charity-sorp
Increase in audit threshold
The government’s consultation on a proposed increase in the income level at which charities would require a full audit (rather than being able to have an independent examination instead) said it would come into effect for financial years ending on or after 6 April 2015, so wouldn’t have applied to financial years ending on 31 March 2015. Then, while I must have been dozing last February, they went and changed it to apply to financial years ending on or after 31 March 2015! So I should have sent you this update nearly a year ago ... but better late than never. At least no one will have got in trouble for not knowing about this, but if your financial year ended last March and your 2014-15 income was between £500,000 and £1 million, and like me you didn’t twig what had happened, you would perhaps unnecessarily have paid for a full audit when you could have had an independent examination. Sorry.
Also – for financial years starting on or after 1 January 2016, a new requirement for independent examination or audit for all registered charities in Northern Ireland.
For more information, visit: www.sandy-a.co.uk/finance.htm#charity-audit
To find more legal updates from Sandy Adirondack, visit: www.sandy-a.co.uk/legal.htm