2021-03-31-accounts

Incorporated charity - Exempt from external scrutin England & Wale In Scotland Peter Brown & Co In Scotland Chartered Certified Accountants and Registered Auditor This template should be Not Be Used for any unincorporated accounts. Acomb Grange In Scotland a corporate independent examination applies to In Scotland an independent examination applies to all accounts for unincor Grange Lane all inco ~~rporated~~ Other char income from £nil to £500,000 pa. £500,000 pa. York YO23 3QZ In England & Wales In England & Wales Peter Brown & Co and Sorpaid are trading names of Unders For accounting periods ending on or after 1st April 2009 , this template applie Web site For£500,0acco ~~00 pa and greater~~ unting periods en www.sorpaid.com than £25,000 .ding on or after 1st April 2009 , this template appl Registered in England no 4114468 E mailincome is less £25,000 a [e-mail] nd where an examination does not otherwise apply. Tel/Fax [phone] However, there is also a requirement that an audit is required if total gross The figure of £25,000 was £10,000 for accounting periods ending on or before 3 Welcome to our 2011 edition Charity SORP compliant accounts prod provided gross income also exceeds £250,000, and this template does not app Note that the rules are different for unincorporated charities Before usin The figures of £25,000 and £3.26 million and £250,000 were £10,000 and £2 g these templates we would strongly recommend that you read the o ~~ending on or before 31st March 2009.~~ Note also that the Booklet CC63 has been reisssued as booklets CC31 and C For links to manuals independent examination- see the links page - Services From Pet Note that in England & Wales, an independent examination where gross inc Web based manual in pdf ~~specifed professional~~ - qual ~~if~~ Web based manual in Word format ~~cations. In Scotland ALL exam~~ inations MUST be ca Visit our web site Disk based manual - this will have to be updated from time to time Consultancy on chari_ _For links to resources and tools_ Note that the rules are slightly different for incorporated charities _ If you are not a regis See the Links worksheet and Independent Exa Crown copyright Note also that the Booklet CC63 ha See disclaimer & terms s been reisssued as booklets CC31 an Courses for accounts_ examination- see the links page - _For the 14 steps in the production process and identificat Scroll down below Licensing_ ONLY USE IN ACCORDANCE WITH LICENCE PURCHASED Contact sorpaid to upgrade if required _Current thresholds* Charities Act 2006 - click here for details of current thresholds

The systematic 14 step process	The systematic 14 step process	to prepare charity accounts.	to prepare charity accounts.
Accounts preparation process - Preliminary
Step no	Required action		Comment
1	Check that exemption from independent
	examination is the correct procedure by		ESSENTIA
	completing the initial	step of the disclosure	INITIAL PR
	checklist		TEMPLATE
See also	CC31 Checklist for compliance with CC31 directions issued by the Ch
	Charities in Scotland	-see OSCR guidance
	Link to initial step of	disclosure checklist

2
		ESSENTIA
	Check professional guidelines on engagement	INITIAL PR
	procedures for exempt work	TEMPLATE
See also	CC31 Checklist for compliance with CC31 directions issued by the Ch
	Charities in Scotland-see OSCR guidance
	CC32 Directions & Guidance to Examiners from 01/04/09
	CC31 Guidance to Trustees from 01/04/09
3	Review the checklist from CC32 (see worksheet
	CC32 in this template) and plan the workload accordingly	ESSENTIA PROCEDU AND DURI
		ACCOUNT
See also	CC31 Checklist for compliance with CC31 directions issued by the Ch
	Charities in Scotland-see OSCR guidance
	CC32 Directions & Guidance to Examiners from 01/04/09
	CC31 Guidance to Trustees from 01/04/09
4	Determine whether or not advantage is to be
	taken of disclosure exemptions for cases that	ESSENTIA
	are not statutory audits.Plan the subsequent	USING TE
	phases accordingly	COURSE O
	The main specifc decisions to be taken will relate to whether the Appendices on Detail PL1 are needed, whether a Cash Flow Statement is required and whether the Trustees Report should take advantage of the exemptions.	utilised w Cash Flow Accountin is good pr exemptio with this
See also	Click for full text of 2005 SORP (Revised June 2008)
5		Do not en
	(a) Enter the Trial Balance and check for
	internal consistencies
	(b) Enter data in the pastel green data boxes on
	the Data worksheet
	(c) Check the VT Properties are properly set
	(see the Manual from VT)

(d) Carry out the procedures required at this stage under the CC32/OSCR guidance

Anything other than zeros in this line indicates an error of input

0 0 0 0 0 6 Turn Autohide off and enter analysed items in Do not en DetailPL2 The TB wi l i Then carry out the procedures required at this stage under the CC32/OSCR guidance

Anything other than zeros in these lines indicates an error of input

-	-	-	-	-	-	-
-	-	-	-	-	-	-
0	0	0	0	-	-	-
-	-	-	-	-	-	-
0	9316	0	-26928	0	0

If any of the above lines are not zero - Examine PL worksheet and DetailPL2 wor Turning autohide on may help in locating errors.Turn autohide off and correct err

See also	Charities in Scotland-see OSCR guidance
	CC32 Directions & Guidance to Examiners from		01/04/09
7	Turn Autohide of and enter analysed items in			Do not en
	Appendices on Detail PL1.The Appendices
	are only mandatory for audited accounts,
	so this step is only required if you wish to
	use the appendices
	Then carry out the procedures required at this
	stage under the CC32/OSCR guidance
Anything other than zeros in these lines indicates an error of			input
(20,126) (10,589)	- -	-	###	(16,788)

If any of the above lines are not zero - Examine Appendices worksheet for errors Turning autohide on may help in locating errors.Turn autohide off and correct err See also Charities in Scotland - see OSCR guidance In Scotland CC32 Directions & Guidance to Examiners from 01/04/09

In Scotland an independent examination applies to all accounts for unincor income from £nil to £500,000 pa.

In England & Wales 8 Turn Autohide off and insert figures in notes Do not en For accounting periods ending on or after 1st April 2009 , this template applie where required £500,000 pa and greater than £25,000 .

However, there is also a requirement that an audit is required if total gross Then carry out the procedures required at this provided gross income also exceeds £250,000, and this template does not app stage under the CC32/OSCR guidance Anything other than zeros in these lines indicates an error of inputThe fi ures of £25,000 a d £3.26 mill on and £250,000 were £10,000 and £2 ending on or before 31st March 2009. - - - - - - - - - - - - - Note that in England & Wales, an independent examination where gross inc specified professional qualifications. In Scotland ALL examinations MUST be ca 0 0 - - - - - - - 36494 0 0 -36494 - Note that the rules are slightly different for incorporated charities - - 0 0 0 0 - (36,244) (16,688) -19655 0 -332 . Note also that the Booklet CC63 has been reisssued as booklets CC31 an examination- see the links page - If any of the above lines are not zero - Examine BS worksheet and Notes workshe Turning autohide on may help in locating errors.Turn autohide off and correct err See also Charities in Scotland - see OSCR guidance CC32 Directions & Guidance to Examiners from 01/04/09 9 Turn Autohide off suppress the inappropriate accounting policies and notes in the trustees' report Then carry out the procedures required at this stage under the CC32/OSCR guidance See also Charities in Scotland - see OSCR guidance CC32 Directions & Guidance to Examiners from 01/04/09 10 Turn Autohide on and review work so far - Turn Autohide off and correct any errors Insert any one off or bespoke notes or accounting policies Then carry out the procedures required at this stage under the CC32/OSCR guidance See also Charities in Scotland - see OSCR guidance CC32 Directions & Guidance to Examiners from 01/04/09

11	Turn Autohide of and complete the narrative of text
	notes or delete text to autohide text only notes
	Then carry out the procedures required at this
	stage under the CC32/OSCR guidance
See also	Charities in Scotland-see OSCR guidance
	CC32 Directions & Guidance to Examiners from 01/04/09
12	(a) Turn Autohide on and compare the accounts with the
	prior year - Check to see whether any notes etc are
	missing
	(b) Turn Autohide of and correct any errors
	Then carry out the procedures required at this
	stage under the CC32/OSCR guidance
See also	Charities in Scotland-see OSCR guidance
	CC32 Directions & Guidance to Examiners from 01/04/09
13	(a) Turn Autohide of and complete the Trustees' Report.
	(b) Insert page breaks throughout the accounts, and set
	the print areas using' Page Setup'
	(c) Examine the accounts for blank lines and delete to
	make the formatting easy on the eye
	(d) Do preview of accounts and extract page numbers for
	the data sheet and cover sheet etc
	(e) Enter data in the pastel blue data boxes on the Data
	worksheet
	(f) Enter page numbers on cover sheet
	(g) Tailor the examiner's report. Ensure correct page numbers are ref
	(h) Work through the disclosure checklist, and check
	Auditing Standards,SORP and Accounting Standards.
	(Note that if the template has been worked through
	methodically, then most if not all of the disclosure
	requirements will have been identifed in the course of
	accounts production, and the check list should constitute
	a double check on the fnal product)
	Then carry out the procedures required at this
	stage under the CC32/OSCR guidance

See also	Charities in Scotland-see OSCR guidance
	CC32 Directions & Guidance to Examiners from 01/04/09
14	Do full review of the draft accounts, correct any errors,
	and print of drafts
	Then carry out the procedures required at this
	stage under the CC32/OSCR guidance
See also	Charities in Scotland-see OSCR guidance
	CC32 Directions & Guidance to Examiners from 01/04/09

Other charity related products from SORPAID --------

See our website for full particulars www.sorpaid.com or contact us for details on 0871 288 2391 or email us at [e-mail]

Courses We have a programme of courses on charity issues We can organise bespoke courses for an individual firm or a group of firms tailored to their specific training requirements, on a very cost effective basis Costs start from £300 per day plus travelling costs.

Working Paper files

Independent Examination is a very specialist area, and there is little professiona available. We publish a model working paper file in electronic form that meets a requirements of CC31 - Directions and Guidance and meets all the current profe and good practice standards. The 2011 version will be published shortly.

Consultancy

We offer a consultancy service to charities, other accountants, and trustees on a fee basis that is agreed at the outset

Telephone help line

For a fee of £100 per year, another firm of accountants can have telephone sup charity issues - terms and conditions apply.

Audit If a charity is subject to audit and you are not a registered auditor, we can take to act as auditors, where you still do the underlying accountancy work, and we c on terms to be agreed directly with the client. There is no geographical limit to

Other tools

There are a number of other tools and facilities that can be downloaded from ou

----- Start of picture text -----
es ONLY - Not Scotland
----- End of picture text -----

rs
ity products from SORPAID ~~charities with gross inc~~ome from £nil to rporated charities prepared on an accruals basis, with gross
shot Ltd ies to incorporated charities where gross es to unincorporated charities where gross income is		less than
V11.01 Dec 2010
duction system based on VT accounts Links to 1st March 2009. s assets before deducting any liabilities exceed £3.26 million ply in such circumstances.			other pa
Tab to the relevant Ex operator's manual, then use 14 step process below Links Links to ex 2.8 million and £100,000 respectively for accounting periods
C32 - the directions and guidance on an		TB	Trial Balanc
ter Brown & Co Data e :- Cover ity accounting & related matters Contents come exceeds £250,000 MUST be carried out by a holder of arried out by a holder of specifed professional qualifcations.			Data sheet Front page Contents p
tered auditor we can undertake audits		Director	Trustees Re
mination work, subject to engagement terms		Audit	Independe
s staf, charity staf and trustees PL nd CC32 - the directions and guidance on an independent			Statement
		BS	Balance Sh
tion of diferences		CF	Cash Flow
		Notes	Notes to th
		DetailPL2	Detailed sc
ie single charity OR single user OR multi user		Appendix	Activity ana
		Library	Standard te
		Disclosur	Disclosure
(an internet link is not required)		History	Details of a
		CFworking Internal wo
t
		Check the Links pag
AL LEGAL AND PROFESSIONAL
ROCEDURE BEFORE USING
E		for a wealth of exte
		Links to external reso
arity Commission

AL LEGAL AND PROFESSIONAL ROCEDURE BEFORE USING

E

arity Commission

AL PROFESSIONAL INITIAL RE BEFORE USING TEMPLATE ING THE COURSE OF THE TS PREPARATION

arity Commission

AL INITIAL PROCEDURE BEFORE MPLATE AND DURING THE OF THE ACCOUNTS PREPARATION

when mandatory - ie an audit, and that the w is only used when required by ng Standards. With the Tr=ustees Report it ractice not to take advantage of the ns, and the template has been drawn up in mind.

nter data in cells shaded yellow.Only in blue cells

----- Start of picture text -----
0 0 Go to TB error summary
nter data in cells shaded yellow.Only in blue cells.
ill already have total figures entered, and your
t t th TB fi th i diff
- - - - -
- - -
- - (9,291)
- - - -
ksheet for errors
rors
----- End of picture text -----

nter data in cells shaded yellow.Only in blue cells

• • s rors

rporated charities prepared on an accruals basis, with gross

nter data in cells shaded yellow.Only in blue cells es to unincorporated charities where gross income is less than

s assets before deducting any liabilities exceed £3.26 million ply in such circumstances.

2.8 million and £100,000 respectively for accounting periods

come exceeds £250,000 MUST be carried out by a holder of - - arried out by a holder of specified professional qualifications. - - - - (9,316) -

nd CC32 - the directions and guidance on an independent

eet for errors

rors

Ensure the financial figures agree with the accounts ONLY delete consecutive blank lines. If a line is hidden there may be hidden formulae. Ie deleting rows 1132, 1133 and 1134 as a block is OK Deleting 1132 to 1134 when 1133 is hidden is DANGEROUS

ferred to

Return to main menu

al guidance all the essional

port on technical

instructions carry out a pure audit this service

ur web site - why not pay us a visit ?

arts of the accounts production file xcel worksheets in this template xternal resources page ce entry

t

of accounts

page of acs eport nt Examiner's Report of Financial Activities & I&E ac heet Statement

he accounts chedule to the SOFA alyses per the SORP exts and explanations

checklist

amendments to templates

orkings for cash fow

ge

ernal resources urces page

Links to technical i relating to charity accounts pr

An internet connection is required for these links to work	Legal
	Disclaimer,term
Publications from
The Charity Commission & Legislation Click here	Manuals for
The Accounting Standards Board Click here
The Auditing Practices Board Click here	Other websit
Other technical sources and legislation The Scottish Regulator OSCR Scottish legislation Professional guidance from ACCA Click here Click here Click here Click here	Peter Brown & C
	The Association
	ACCA ICAEW

Legal Disclaimer,term

Manuals for u Other websit Peter Brown & C The Association ACCA ICAEW

SCOTLAND

The Guidance and Directions issued by the Charity Commission in England & law in England & Wales. OSCR has issued similar guidance in Scotland.

Quick links :- Click for full text of the FRSSE 2008 Click for full text of 2005 SORP (Revised June 2008) Detailed extracts from the SORP

Operating manual & help for VT Charity templates Web based manual in pdf - Web based manual in Word format Sorpaid's guide to CC31/2 CC31 Checklist for compliance with CC31 directions Links to other parts of the accounts production file Tab to the relevant Excel worksheets in this template Links Links to external resources page TB Trial Balance entry Data Data sheet Cover Front page of accounts Contents Contents page of acs

Director Trustees Report Audit Independent Examiner's Report PL Statement of Financial Activities & I&E ac BS Balance Sheet CF Cash Flow Statement The Accounting Standards Board Click for full text of the FRSSE 2008 - Accounting Standards Board Standards currently in force Statement by the Accounting Standards Board on the SORP FRS18 - Accounting policies Publications from other technical sources including legislation The Charities Act 2006 The Charities Act 1993 The Companies Act 2006 The Charities (Accounts and Reports) Regulations 2008 Financial Advice for small charities from cashonline.org Guidance Notes (Institute of Chartered Secretaries and Administrators) Enter 'charities' in the search box

Charity Commission Publications

Guidance booklets - some booklets have been withdrawn and are excluded from this list A full list of Charity Commission publications from booklet CC3 to booklet CC63 and all related reports and guidance CC3 Responsibilities of Trustees - the Essential Trustee CC4 Public beneft and the relief of poverty CC7 Ex gratia payments by charities CC8 Internal fnancial controls by charities CC9 Campaigning and political activities by charities CC11 Payment of Charity Trustees CC12 Managing fnancial difculties and insolvency by charities CC13 The Ofcial custodian for land holding services - CC14 Investing charitable funds basic principles

CC15 Charity Reporting and Accounting: The essentials	CC15 Charity Reporting and Accounting: The essentials
CC16 Receipts and Payments workpack and guidance
CC18 Use of church halls for charitable purposes
CC19 Charities Reserves-see also more detailed published guidance
CC20 Charities and fundraising
CC21 Registering as a charity
CC22 Choosing and preparing a governing document
CC23 Exempt charities
CC24 Benefciaries who become trustees
CC25
CC26 Risk management-a guide for trustees
CC27 Providing alcohol on charity premises
CC28 Disposing of charity land
CC29 Charities and local authorities
CC30-Finding new trustees: What charities need to know
CC31 Guidance to Trustees on Independent Examination
CC32 Directions & Guidance to Examiners
CC33-Acquiring land
CC34 Collaborative working and mergers
CC35 Charities and trading
CC36 Amending charities'governing documents
CC37 Charities and public service delivery
CC38-Expenditure and replacement of permanent endoowment
CC39 Accruals accounts pack
CC40 Disaster appeals-Attorney General's guidelines
CC42 Appointing nominees and custodians under s 19(4) Trustee Act 2000
CC43 Incorporation of charity trustees
CC45 Regulatory compliance-a guide for trustees
CC46 Statutory enquiries into charities-a guide for trustees and advisors
CC47 Complaints about charities
CC48 Charities and meetings
CC49 Charities and insurance
CC60 The hallmarks of an efective charity
Ofce of the Scottish Regulator
Web Site Ofce of the S Scottish Regulator
The above is the equivalent of the Charity Commission in Scotland
Publications Receipts and Payments workpack	see publication belo
Charities-Reference in documents regulations
Scottish Charity accounts-the overview
Scottish Charity accounts-Receipts and Payments accounts
Scottish Charity accounts-Fully accrued accounts
Guidance on the duties of charity trustees under the Charities and Tru

The format, content and scrutiny of accounts is governed by Charities and Trustee Investment (Scotland) Act 2005 The Charities Accounts (Scotland) Regulations 2006

Detailed extracts from the SORP not covered elsewhere in the ch Paragraph numbers in any items below are references to the SORP

Copyright

Crown copyright material is reproduced with the permission of the Controller and the Queen's Printer of Scotland. Licensed end users may download this m for their own use but may not reproduce the material for any other purpose How to use the SORP Statement by the Accounting Standards Boar Purpose of the SORP Statement by the Charity Commission on the Purpose of the SOFA Table 1 in the SORP - legislative framework- legislative framework legislative framework Purpose of Trustees Report Detailed requirements of the Trustees' report' report report The SORP and the law Full text of 2005 SORP The scope and object of the SORP

Statement by the Accounting Standards Boar Statement by the Charity Commission on the Table 1 in the SORP - legislative framework- legislative framework legislative framework Detailed requirements of the Trustees' report' report report Full text of 2005 SORP

Extract from the SORP:-

Advisory note about the Purpose of Trustees’ Annual Report and Accounts

10 The purpose of preparing a Trustees’ Annual Report and Accounts is to discha duty of public accountability and stewardship. This SORP sets out recommended acc purpose but charity trustees should consider providing such additional informatio donors, beneficiaries and the general public a greater insight into the charity’s activ Accounts prepared on the basis of this SORP are not a substitute for management accounts required to run the charity on a daily basis, though both will draw on the records.

11 Charities are highly disparate in character, so any comparison of the financial i should be undertaken with care, even if the charities involved seem to be similar. should include all the money and other assets entrusted to the charity for whatever they have been expended during the year and how the balance of each fund is de accounting period.

12 The balance sheet is not necessarily a measure of the wealth of the charity but available, what form those resources take and how they are held in the differe information about the liquidity of assets and general solvency.

13 The Statement of Financial Activities provides information as to how a charity resources to meet its objectives. It is not intended to demonstrate a charity’s efficie 14 Accounts focus on financial performance and in isolation do not give the reade has been achieved from the activities undertaken and the resources expended in recognises these limitations and places significant weight on the Trustees’ Ann necessary link between objectives, strategies, activities and the achievements that this information the value of the accounts to the reader may be significantly diminis 15 The Trustees’ Annual Report and Accounts should therefore:

a) provide timely and regular information on the charity and its funds; b) enable the reader to understand the charity’s objectives, structure, activities and and c) enable the reader to gain a full and proper appreciation of the charity’s financia

year and of the position of its funds at the end of the year. How to Use the SORP 16 This SORP recommends particular accounting treatments and provides guidan accounting standards (compliance with which is considered necessary, in circumstances, to meet the legal requirement to give a true and fair view) in a man of the particular circumstances of charities. In all but exceptional circumstan accruals accounts should follow this SORP’s accounting recommendations to assi accounts give a true and fair view. 17 There will be few, if any, charities preparing accruals accounts to which all parts it caters for a wide variety of charity activities and transactions. Charities do n sections which do not apply to them. For example, advice on how to account f proceeds of trading activities will not apply to all charities. Readers whose charity from those sources may safely pass over the sections dealing with them and any not apply to their charity’s own activities. However, there are several sections w nearly all charities. 18 The main text of the SORP deals with the normal accounting practice for th accruals accounts. Small charities that are not subject to a statutory audit requirem a number of concessions available under the SORP in relation to both rep presentation. These concessions are summarised in Appendix 5. 19 Certain charities will have to meet additional requirements due to the transac legal or operating structures adopted. The following sections set out additional reco for: (a) Consolidation of Subsidiary Undertakings – paragraphs 381 - 406. (b) Accounting for Associates, Joint Ventures and Joint Arrangements - paragraphs 4 (c) Charitable Companies – paragraphs 419 -429. (d) Accounting for Retirement Benefits – paragraphs 430 - 448 (e) Common Investment Funds and Investment Pooling Schemes - paragraphs 449 - 20 The accounting disclosure requirements have been separately identified through charities are only excused from a particular disclosure requirement where the relevant to a charity or where disclosure would be immaterial for the user of the investment disclosures are not required if a charity has no investments. Certa example, remuneration of trustees, provide information of significance to the re disclosure in the event of no remuneration being paid. Where such a “nil” disclo specifically stated in the relevant disclosure recommendation. 21 The main obligation of charity trustees in preparing accruals accounts is to giv the charity’s incoming resources and application of resources during the year and the end of the year. To achieve this, the charity trustees’ judgement may dictate information than specifically recommended in this SORP. Similarly charity trustee that following a recommendation is incompatible with the obligation to give a t should then use the alternative accounting treatment which gives a true and fair vie particulars within the accounting policy notes (in accordance with paragraph 359) o from the recommendations in this SORP. A departure from the SORP is not justified the reader a more appealing picture of the financial position or results of the charity The SORP and the Law 22 The SORP is compatible with the requirements of the law. The SORP clarifies h affected by legal requirements, including aspects of trust law. It provides the interpretation of accounting standards and principles and clarifies the accounti specific transactions. In so doing, applying the SORP enables the preparers of charit legal or other reporting duties for their accounts to give a true and fair view. 23 Charity trustees should include any additional information which they are requi in order for the accounts to comply with current statutory requirements or the requ governing document to the extent that these exceed statutory requirements. 24 The legal requirements for a Trustees’ Annual Report and its contents differ reporting frameworks that apply within the separate legal jurisdictions of the UK.

reporting frameworks that apply within the separate legal jurisdictions of the UK. practice recommendations that in England and Wales are underpinned by law. In Ireland, whilst the recommendations are considered to be consistent with the law th voluntary best practice recommendations supplementing legal requirements. 25 The charity trustees (see glossary GL 7) are jointly responsible for the preparat and Accounts which should be approved by the charity trustees as a body in acc procedures and both documents should be signed on behalf of the charity trustees authorised so to do or as otherwise required by law. The date of approval should be 26 Any audit, independent examination or other statutory report on the accounts s accounts when they are distributed or made available to users of financial informati 27 The primary legislative sources that contain requirements relating to the form accounts and reports prepared under this SORP include:

• (a) The Charities Act 1993 and Regulations made thereunder

• (b) The Companies Act 1985 and 1989,

• (c) The Industrial and Provident Societies Acts 1965 to 2002,

(d) The Law Reform (Miscellaneous Provisions) (Scotland) Act 1990 and Regulations thereunder, currently the Charities Accounts (Scotland) Regulations 1992, unle repealed; 28 Charitable companies governed by the requirements of the Companies Ac paragraphs 419 to 429 that provide recommendations as to how the particular re law should be addressed within charity accounts.

29 Table 1 in the SORP summarises the legislative framework applying to the acc the UK not reporting under company law.

SORP 2005 03/03/2005

Statement by the Accounting Standards Board on the SORP 2005 ‘ Accounting and Reporting by Charities: Statement of Recommended Practice’ The aims of the Accounting Standards Board (the ASB) are to establish and improve accounting and reporting, for the benefit of users, preparers, and auditors of financi the ASB issues accounting standards that are primarily applicable to general purpos statements. In particular industries or sectors, further guidance may be required in o accounting standards effectively. This guidance is issued, in the form of Statements (SORPs), by bodies recognised for the purpose by the ASB. The Charity Commission has confirmed that it shares the ASB’s aim of advancing an financial reporting in the public interest and has been recognised by the ASB for the As a condition of recognition, the Commission has agreed to follow the ASB’s code o recognised for issuing SORPs.

The code of practice sets out procedures to be followed in the development of SORP include a comprehensive review of the proposed SORP by the ASB, but a review of li On the basis of its review, the ASB has concluded that the SORP has been developed ASB’s code of practice and does not appear to contain any fundamental points of pr

ASB s code of practice and does not appear to contain any fundamental points of pr unacceptable in the context of accounting practice or to conflict with an accounting plans for future standards.

Statement by the Charity Commission for England and Wales The Charity Commission is pleased to publish this revised edition of the Charities SO The accounting recommendations of this SORP are based on Financial Reporting Sta and have been developed in conjunction with the Charities SORP committee, an adv of charity finance directors, charity auditors, academics, charity advisers and charity committee is also structured to reflect the different charity jurisdictions of the UK. Sector involvement has been a central part of producing this SORP. The research, in provided by the sector and the SORP Committee has informed each stage of its dev document provides a platform for transparent and consistent reporting by charities. like to thank the SORP Committee, and all those who responded to the consultation Table 1. Legislative Framework for Charity Accounts in the United Kingdom well as all those who prepared research papers and publications that have informed See the SORP for the full text of Table 1 This revision creates a new focus for charity reporting, building on existing SORP pri recommendations. It provides a framework that enables charities to explain what th about it and what they achieve. It does so in a way that pulls together narrative and coherent package focused on activities undertaken.

We, in the UK, are fortunate in benefiting from a dynamic and energetic charity sect huge diversity in terms of size of charity and the activities they undertake. Retaining reputation of the sector is a responsibility that we share with the sector. This SORP h this respect by assisting charities in providing financial information about their activ of interest to many people and to meet legal requirements that such accounts give Dated 4 March 2005

Table 1. Legislative Framework for Charity Accounts in the United Kingdom See the SORP for the full text of Table 1

Trustees’ Annual Report

35 Charity accounts alone do not meet all the information needs of users who will u the information they obtain from the accounts with information from other sou inherent limitations in terms of their ability to reflect the full impact of transactio and do not provide information on matters such as structures, governance and m adopted by a charity. The accounts of a charity cannot alone easily portray what outputs) or achieved (its outcomes) or what difference it has made (its impact). This these areas cannot be measured in monetary terms: indeed some areas are diffi numbers at all. The Trustees’ Annual Report provides the opportunity for charity tru that the accounts do not explain.

36 Charity accounts should therefore be accompanied and complemented by inform Trustees’ Annual Report. The Trustees' Annual Report should be a coherent d

p p requirements of law and regulation and provides a fair review of the charity's s activities and performance. Good reporting will explain what the charity is trying about it. It will assist the user of accounts in addressing the progress made by the ch for the year and in understanding its plans for the future. Good reporting will governance and management structure and enable the reader to understand how accounts relates to the organisational structure and activities of the charity (see paragraphs 44 to 59). As part of the report, or attached to it, a statement con administrative details of the charity as described in paragraphs 41 to 43 will infor charity’s trustees and its advisers and will provide other relevant legal or administra 37 Responsibility for preparing the Trustees' Annual Report rests with the charity trus accompanying information to the accounts and should therefore be attached to the set of accounts is distributed or otherwise made available. 38 Legal requirements and this SORP do not limit the inclusion of other information Report or as additional information accompanying the accounts. Charity truste material into their annual reporting, for example a chairman’s report, environment or an operating and financial review (see Glossary GL 43).

39 Charities may additionally use other means of providing information, outsid reporting framework, about who they are and what they do. Such information is ofte particular audiences and presented through annual reviews, newsletters and websi might usefully refer to these other sources of information within their Trustees’ Ann information should not be seen as a substitute for good statutory annual reporting. 40 Charitable companies must also prepare a Directors’ Report (see paragraph 4 requirement of Section 234 of the Companies Act 1985 and applicable parts o Trustees' Annual Report is not required provided that any statutory Directors’ Report the information required to be provided in the Trustees' Annual Report.

The Objectives and the scope of the SORP

The Objectives of the SORP

The objectives of publishing these recommendations include: (a) improving the quality of financial reporting by charities

(b) enhancing the relevance, comparability and understandability of information pre (c) providing clarification, explanation and interpretation of accounting standards an application in the charities sector and to sector specific transactions; and thereby (d) assisting those who are responsible for the preparation of the Trustees’ Annual R Accounts

Scope of the SORP

1.The accounting recommendations of this SORP apply to all charities in the Un accounts on the accruals basis to give a true and fair view of a charity’s finan

yi

g position regardless of their size, constitution or complexity.

1. Each accounting recommendation should be considered in the context of what charity(see the Glossary in the SORP)

2. Where a separate SORP exists for a particular class of charities (eg SORPs app Landlords and to Further and Higher Education institutions), the charity trustee should adhere to that SORP and any reporting requirements placed on such charitie 4. The accounting recommendations of this SORP do not apply to charities prepari payments accounts, though such charities are encouraged to adopt the activity SORP (see paragraph 93) to the analysis of their receipts and payments (see appen 5. The SORP recognises that particular accounting disclosures and the activity basi and cost within the SoFA may not be relevant information for the users of accr smaller charities. The concessions for smaller charities are summarised in Appendix 6. Whilst charities in the Republic of Ireland do not fall within the scope of this comply with its recommendations. If a charity based in the Republic of Ireland ch recommendations they are encouraged to disclose that fact. 7.Charity accounts are accompanied and complemented by information that does n financial statements. Within the United Kingdom such accompanying informatio charities through a Trustees’ Annual Report. As is explained in paragraph 2 requirements for an annual report and its contents differ according to the charity Crown copyright material is reproduced with the permission of the Controller of apply within the separate legal jurisdictions of the UK. The SORP recognises Printer for Scotland. Licensed end users may download this material to screen a information is of high importance for users of charity accounts in underst use but may not reproduce the material for any other purpose achievements of a charity as a whole and therefore provides best practice recomme such reports. In England and Wales these best practice recommendations are underpinned by law Northern Ireland whilst the recommendations are considered to be consistent w regarded as voluntary best practice recommendations supplementing legal requirem

Legal See disclaimer & terms Crown copyright Sorpaid's copyright

In various sections of this template are reproduced extracts from the SO and we are required under the terms of our licence to state :- Copyright licence number C02W0001327

Crown copyright material is reproduced with the permission of the Controller of Printer for Scotland. Licensed end users may download this material to screen a use but may not reproduce the material for any other purpose

Disclaimer and terms and conditions

There are links at various points in these templates to websites

Peter Brown & Co accept no responsibility for the content on any site to which a file exists. The links are provided "as is" with no warranty, express or implied, for t within them.

The full terms and conditions of the use of the templates are covered in the m which reference should be made the first time the templates are accessed. If the u those terms and conditions, then the templates must be removed from the u passwords etc destroyed, and Undershot Ltd should be notified in writing of the notice is not received within seven days of delivery of the templates, then the have agreed to those terms and conditions.

The following is a precis of an essential and important element of those terms.

All contents of this software are suggestive and are no substitute for the exercise the user, and no warranty is given either explicitly or by implication that any acc software will comply with any legislative requirement, SORP, Accounting or Auditin application of such professional skill by the user.

All liabilities to third parties whether under the Contracts (Rights of Third Partie excluded from the contract.

The manual and this software are to be read together as one document, and thes will always have been drawn to the attention of a purchaser prior to contract, website, in correspondence or by email. Entering into contractual arrangem acceptance of these terms and conditions as set out in the manual. Using this soft deemed to be acknowledgement that any user has assented to the foregoing.

Copyright, Licensing and Legal

Return to introduction

This document is the copyright of

Undershot Ltd, t/a Peter Brown & Co, Chartered Certified Accountants, Acomb Grange, York YO23 3QZ

Tel [phone] Email [e-mail]

Attention is drawn to section 107 of the Copyright Design and Patents Act 1988 which relation to copyright material. Undershot Ltd may take legal action against any perso all or any part of this document, whether in its original form or any modified form.

Notwithstanding the above prohibition, any person who has paid an annual license fe receipted invoice from Undershot Ltd may, in accordance with this licence, for their o accountancy practice, or other organisation, by which they are employed, or in which this file within that one office as they may wish, and may make any amendments, alt deletions shall not delete this copyright page, and provided this copyright page is inc or any modified form.

Such licence shall only continue for one year only from the date of the aforementione on payment of a further annual licence fee.

Additional offices shall pay an additional licence fee.

‘ Sorpaid’ and ‘Peter Brown & Co’ are trading names of Undershot Ltd, Company Number 411446 Brown Bsc (Hons), FCCA,FCIE

nformation roduction

s,copyright

using this file

Click here

tes Co - Sorpaid of Charity Independent Examiners ICAS ICSA FRC and APB

& Wales have the force of CC31 Guidance to Trustees from 01/10/09 CC32 Directions & Guidance to Examiners from 01/10/09 Reports and enquiries by the commission into complaints and wrongdoing by charities

Professional guidance by ACCA -

ACCA factsheet 123 Audit risk and fraud -

supplementary guidance for auditors of charities (only available in hard copy) ACCA rules on examinations by persons without a practising certifcate Charity Commission guidance on public beneft

Notes Notes to the accounts DetailPL2 Detailed schedule to the SOFA Appendix Activity analyses per the SORP Library Standard texts and explanations Disclosure Disclosure checklist

----- Start of picture text -----
History Details of amendments to templates
CFworkings Internal workings for cash fow
Workings Internal workings for acs
CC32 Independent Examination directions 2008
The Auditing Practices Board
Auditing Standards (ISAs) UK and Ireland
PN8 Reports by auditors under company legislation in the UK
PN11 The audit of charities in the UK
PN22 The auditor's consideration of FRS17 retirement benefts - defned beneft schemes
-
Bulletin 2005/1 Audit risk and fraud guidance for auditors of charities
HM Revenue & Customs notes and guidance
HM Revenue & Customs Charity webpages
HMRC Regulations on trading by charities
HMRC changes in exemptions from March 2006
Afordable Home Ownership – Charitable Status and Tax
Applications for Charitable Status
Gift Aid
Payroll Giving
Giving land, buildings, shares & securities to charity
Claims and returns
Audits by HMRC Charities
Charitable tax exemptions
Non-charitable expenditure
Qualifying investments and loans
Life Assurance and Capital Redemption Products
Fit and proper' test for trustees
Charities and VAT
Other Publications from
The Charity Commission and Charity legislation
Sundry publications and references
Click for full text of 2005 SORP (Revised June 2008)
Commentary on the 2005 SORP
Payment of charity trustees - a checklist
How to use the SORP
Purpose of the SORP
The informal consolidation of legislation published by the cabinet ofce
Purpose of Trustees Report
The scope and object of the SORP
The SORP and the law
Statement by the Charity Commission on the SORP
----- End of picture text -----

Detailed requirements of the Trustees' report Table 1 in the SORP - legislative framework The Charities (Accounts and Reports) Regulations 2008 (Effective from 1st April 2008) Charities and Trustee Investment (Scotland) Act 2005 The Charities Accounts (Scotland) Regulations 2006 Charity Commission guidance on public beneft The Charities Act 2006 The Charities Act 1993 The Companies Act 2006 Charity Commission guidance on public beneft See also Guidance from HMRC Click here Return to top of links page w also see publication above also stee Investment (Scotland) Act 2005

Return to top of links page

hecklists

r of HMSO material to screen and printer

d on the SORP

SORP

rge the charity trustees’ counting practice for this on as is needed to give vities and achievements.

Return to Detailed extracts from the SORP Return to top of links page

e same primary financial

nformation they produce Essentially the accounts r purpose, and show how eployed at the end of the

does show the resources ent funds, and provides

receives and applies its ency. er a perspective of what their delivery. The SORP ual Report to provide a flow from them. Without Return to Detailed extracts from the SORP shed. Return to top of links page

d achievements;

l transactions during the

nce on the application of n all save exceptional nner which takes account ces, charities preparing st in ensuring that their

of this SORP apply since not have to follow those for gifts in kind and the y does not have receipts other sections which do which will apply to all or

Return to Detailed extracts from the SORP

Return to top of links page

hose charities producing ment may choose to apply porting disclosures and

ctions undertaken or the ommendations applicable

07 - 418.

• 451 hout the SORP. Generally item in question is not e accounts. For example, in other disclosures, for ader and require a “nil” osure is required, this is

e a true and fair view of d of its state of affairs at e the disclosure of more es may occasionally find true and fair view. They ew and provide of any material departure d simply because it gives y.

ow charity accounting is charity sector with an ng treatment for sector ty accounts to meet their

red by law to report and uirements of the charity’s

according to the charity The SORP provides best

The SORP provides best n Scotland and Northern hey should be regarded a

tion of the Annual Report ordance with their usual s by one of their number stated.

hould be attached to the ion. m and content of charity

Return to Detailed extracts from the SORP

Return to top of links page

made ess and until these are

ct 1985 should refer to equirements of company

counts of charities within

Table 1 in the SORP

Return to Detailed extracts from the SORP

Return to top of links page

standards of financial al information. To this end, se company financial order to implement of Recommended Practice

nd maintaining standards of e purpose of issuing SORPs. of practice for bodies

Ps. These procedures do not imited scope is performed. d in accordance with the rinciple that are

rinciple that are standard or the ASB’s

ORP.

andards currently in issue visory committee made up y regulators. The

put and feedback elopment. The resulting The Commission would m on the exposure draft as this SORP’s development. nciples and hey aim to do, how they go d financial reporting into a

Return to Detailed extracts from the SORP

Return to top of links page

tor that encompasses a g and enhancing the high has a key role to play in vities and resources that is a “true and fair” view.

m

Return to Detailed extracts from the SORP Return to top of links page

Return to Detailed extracts from the SORP

usually have to supplement urces. Accounts also have Return to top of links page ns or activities undertaken management arrangements t the charity has done (its is mainly because many of fficult to measure with any ustees to explain the areas

mation contained within the document that meets the

structure, aims, objectives, to do and how it is going harity against its objectives also explain the charity's w the numerical part of the

ntaining the reference and rm the reader who are the tive information. stees. It provides important e accounts whenever a full

within the Trustees’ Annual es may incorporate other report, impact assessment

de of the accounting and en tailored for the needs of tes. Whilst charity trustees nual Report, such additional

420) in order to meet the of Schedule 7. A separate t prepared also contains all

Return to Detailed extracts from the SORP Return to top of links page

esented in accounts; nd of their

Report and

nited Kingdom that prepare ncial activities and financial

is material to the particular

plicable to Registered Social es of charities in that class es by charity law.

ng cash-based receipts and y approach provided in this dix 5).

s for the analysis of income ruals accounts prepared by x 5.

SORP they may choose to hooses to adopt this SORP’s

not form part of the

on is primarily provided by 4 of the SORP, the legal y reporting frameworks that HMSO and the Queen's s that such accompanying nd printer for their own tanding the activities and endations for the content of

w, in Scotland and ith the law they should be Return to Detailed extracts from the SORP ments.

Return to top of links page

ORP

HMSO and the Queen's nd printer for their own

Return to top of links page

hypertext link from this the information provided

Return to top of links page

anual of procedures, to user does not agree with user’s computer and all position. If such written user will be deemed to

e of professional skill by counts produced by this ng Standard without the

es) Act or otherwise are

se terms and conditions either on the vendor's ents is deemed to be tware for any purpose is

Return to top of links page

Return to top of links page

h makes it a criminal offence to perform, without authorisation, certain acts in on responsible for the unauthorised reproduction or storage in a retrieval system of

ee to Undershot Ltd, which is still current, and which shall be evidenced by a own purposes, or for the purposes of one office only (ie limited to one office) of any h they are a partner or director, make as many printed copies or electronic copies of terations, additions or deletions from this file as they may wish, provided such cluded in every printed and electronic copy, whether the copy is in its original form

ed invoice, whereupon the licence shall be renewed by the licensee if they so wish,

Return to top of links page

8, registered office Acomb Grange, Grange Lane, York , YO23 3QZ .

HAWA See disclaimer & terms
Trial balance AutoHide is on	Unrestric	Restricted
Enter debits as + and credits as - [assets and expenses are debits]	Funds	Funds
Incorporated charity - Exempt from external scrutiny		Enter data
Statement of Financial Activities		Yellow cells
		Change nar
Incoming resources from generated funds		and only af
Schedule cross referen
	in column A against th
Voluntary Income CC31 Checklist for compl
The items marked 'X'will require analysis in detail on P&L2 to reconcile to	the TB totals
XRevenue grants and donations	0
XGrants for acquisitions of fxed assets	0	0
Legacies receivable
XGifts in kind, donated services and facilities
Members' Subscriptions	0
Sponsorship income	(31,996)	0
Activities for generating funds
The items marked 'X'will require analysis in detail on P&L2 to reconcile to	the TB totals
Fundraising activities
Sponsorships and social lotteries		0
Shop income from sale of donated and bought	0
Sales other than for the benfeit of benefciaries
Temporary letting and licensing of charitable property
Inter company management charges for services to subsidiaries
Recharge of salaries to other organisations
XOther activities for generating funds
Investment Income
The items marked 'X'will require analysis in detail on P&L2 to reconcile to	the TB totals
XInterest Receivable
XInvestment Income(excluding interest rcd)
Gift aid from subsidiaries
		Enter data
Remember that turnover in the context		Yellow cells
of a charity includes receipts of a		Change nar
capital nature, and items in kind, which may take an entity		and only af
over audit and exemption limits
See the detailed rules about turnover limits and exemptions,
which are diferent concepts from normal limited company exemptions
Charities (Accounts and Reports) regulations SI 2868 of 2000
Charities (Accounts and Reports) regulations SI 2724 of 1995

Schedule cross referen in column A against th Incoming resources from charitable activities The items marked ' X' will require analysis in detail on P&L2 to reconcile to the TB totals Sale of goods and services made by beneficiaries Letting of none investment property for charitable purposes Contractual payments from public authorities

Grants for provision for provision of charitable goods and services to be Other ancillary trading to benefit beneficiaries X Other charitable activities

Other Incoming Resources

Gain on disposal of programme related investments Gain on disposal of intangible assets Land and buildings P&L on disposal

TB document1621710332608186567.xlsx 36 02/01/2022

	Leaseholds P&L on disposal
	Plant & machinery P&L on disposal
	Losses on disposals of heritage assets
Costs of generating funds
	Agent's costs for fundraising
	Commissions payable
	Fundraising publicity
	Cost of fundraising activities
	Support costs (1)
	Support costs (2)
	Support costs (3)
	Support costs (4)
	Support costs (5)
	Support costs (6)
	Support costs (7)
	Support costs (8)
	Support costs (9)
	Depreciation of assets used for fundraising
Fundraising Trading - costs of goods sold and other costs
The items marked 'X' will require analysis in detail on P&L2 to reconcile to the TB totals
	XFundraising trading costs
	Depreciation of assets used for trading
	Amortisation of intangible assets
Investment costs
	Investment management fees
Expenditure on charitable activities
	Cost of goods for primary purpose trading
	Cost of sale of goods or services made by benefciaries
	Cost of charitable letting of none investment property
	Costs of income from public bodies for charitable trading
	Costs of ancillary trading to beneft benfciaries
			Enter data
			Yellow cells
			Change nar
			and only af
		Schedule cross referen
		in column A against th
Support costs for charitable activities
	Gross wages and salaries - charitable activities
	Employers' NI - Charitable activities
	Pension contributions charitable employees
	Salaries recharged to other organisations
	Employers' NI - Recharged salaries
	Pensions contributions - recharged employees
	Volunteers' Costs	7,380	0
	Resource Costs	904	0
	Child Care for volunteers
	Temporary Staf - Charitable Activities		0
	Travel and Subsistence - Charitable Activities	450	0
	Marketing of services
	Support costs (1)
	Support costs (2)
	Support costs (3)
	Support costs (4)
	Depreciation of fxed assets used for charity
	Depreciation of heritage assets

TB document1621710332608186567.xlsx 37 02/01/2022

Grantmaking

Grantmaking
The items marked'X'will	require analysis in detail on P&L2 to reconcile to the TB totals
	XGrants payable in furtherance of the charity's	0
	XSupport costs for grants paid
Governance costs
	Trustees' remuneration
	Employers' NI - Trustees
	Pension contributions - Trustees
	Indemnity Insurance
	Trustees' expenses
Employee costs	Salaries - Administrative staf	3,557
	Pension Contributions - administrative staf
	Employers' NI - Administrative staf
	Temporary staf and recruitment
	Training and welfare
	Payroll costs
	Travel and subsistence
	Motor expenses
	Entertaining
	Recruitment expenses
	Employment spare (1)
	Employment spare (2)
Legal and Professional	Reporting Accountant fees
	Independent Examiner's Fees	0
	Auditors' remuneration	0
	Other fees paid to the Examiners/auditors	0
	Accountancy fees other than examiners/audito 230
	Legal fees	0
	Consultancy fees	0
	Legal and professional spare (1)	0
	Legal and professional spare (2)	0
	Legal and professional spare (3)	0
Premises Expenses	Rent payable	7,086	0
	Rates, water and service charges	0	0
	Room Hire	558
	Light and heat	2,302	0
	Cleaning	524
	Premises repairs and renewals	1,320
	Alarm maintainance
	Premises spare (1)
	Premises spare (2)
General Admin	Telephone and fax	50	0
	Postage	0	0
	Stationery and printing	335	0
	Courier Services
	Information and publications
	Subscriptions
	Equipment expenses	1,143
	Hire of equipment	0
	Software
	Health and safety costs	140
	Advertising and PR
	Bank charges	0
	Admin costs spare (1)
	Admin costs spare (2)
	Insurance
	Bad debts
	Sundry expenses

TB document1621710332608186567.xlsx 38 02/01/2022

Depreciation of governance assets Gains and losses on assets other than fixed assets

Actuarial gains on defined benefit schemes Gains are negative Realised gains on disposal of investments Losses are positive Unrealised gains on investment The above two rows should agree in total to the total of realised gains and revaluations on the balance sheet section of the TB

Interest payable Charities normally nil Corporation Tax Charities normally nil Deferred tax Gift Aid Payments Charities normally nil Dividends payable Retained (profit)/loss -6,017 0 Enter data Yellow cells Change nar and only af Schedule cross referen in column A against th

BALANCE SHEET
Intangible FA
Ensure bfwd agrees	Cost - b/fwd
	Cost - additions
	Cost - disposals
Ensure bfwd agrees	Amortisation - b/fwd
	Amortisation - provided in year
	Amortisation - disposals
Land & buildings - freehold
Ensure bfwd agrees	Cost - b/fwd
	Cost - additions
	Cost - revaluation
	Cost - disposals
Ensure bfwd agrees	Depn - b/fwd
	Depn - charge for the year
	Depn - revaluation
	Depn - disposals
Plant & machinery
Ensure bfwd agrees	Cost - b/fwd
	Cost - additions
	Cost - disposals
Ensure bfwd agrees	Depn - b/fwd
	Depn - provided in year
	Depn - disposals
Leasehold premises
Ensure bfwd agrees	Cost - b/fwd
	Cost - additions
	Cost - disposals
Ensure bfwd agrees	Depn - b/fwd
	Depn - provided in year
	Depn - disposals
Heritage assets
	Heritage assets - enter NBV and analyse in notes

TB document1621710332608186567.xlsx 39 02/01/2022

Extract programme related investment gains and enter in the proft and loss section	Extract programme related investment gains and enter in the proft and loss section	Extract programme related investment gains and enter in the proft and loss section
under costs of generating funds and reduce the net realised gains below accordingly
Property Investments
Ensure bfwd agrees	B/fwd
	Additions
should agree to PL	Net realised (gains)/losses	Losses are negative
section of the TB	Increase/(decrease) in value on revaluation	Gains are positive
	Disposal proceeds
Investments - listed
Ensure bfwd agrees	B/fwd
	Additions
should agree to PL	Net realised (gains)/losses	Losses are negative
section of the TB	Increase/(decrease) in value on revaluation	Gains are positive
	Disposal proceeds
Investments - unlisted
Ensure bfwd agrees	B/fwd
	Additions
should agree to PL	Net realised (gains)/losses	Losses are negative
section of the TB	Increase/(decrease) in value on revaluation	Gains are positive
	Disposal proceeds
	Cash held by investment advisors
	Stocks
Debtors and prepayments
	Trade debtors
	Loans Made
	Other Debtors
	Amounts due to associated or subsidiary undertakings
	Taxation Recoverable
	Prepaid expenses
	Accrued income
Current asset investments
	Listed
	Unlisted
Cash and bank
	Cash at bank and on hand		0
Creditors less than 1yr
	Overdrafts
	Bank loans
	PAYE & NI
	VAT
Charities normally nil	Corporation Tax
	Other Taxes
	Funds held for third parties
Charities normally nil	Dividends Payable
	Finance lease and HP contracts
	Trade creditors
	Amounts due to associated or subsidiary undertakings
	Accruals
	Unpaid pension contributions
	Unrestricted & Designated grants in advance	& deferred income
	Restricted grants in advance & Deferred income
Creditors greater than	1yr
	Bank loans
	Finance lease and HP contracts
	Trade creditors
	Amounts due to associated or subsidiary undertakings
	Accrued expenses

TB document1621710332608186567.xlsx 40 02/01/2022

	Unrestricted & Designated grants in advance & deferred income	Unrestricted & Designated grants in advance & deferred income
	Restricted grants in advance & Deferred income
Provisions
Ensure bfwd agrees	B/fwd
	Charged to the p/l account
	Change of rates in tax on bfwd bals
	Movement on ACT
	Defned beneft pension asset/liability
	Pension reserve
Accumulated funds/Revenue reserves
Share capital
Ensure bfwd agrees	B/fwd
	Issued in year
Endowment funds
Ensure bfwd agrees	B/fwd
	Movement in the year
Unrestricted revenue funds
Ensure bfwd agrees	B/fwd
Do not enter current yeaSurplus/loss in year
	Transfer to/from other funds
Restricted revenue funds
Ensure bfwd agrees	B/fwd
Do not enter this year	Surplus/loss in year	entered automatically >
	Transfer to/from other funds
Revaluation reserve
Unrestricted revaluation resreve
Ensure bfwd agrees	B/fwd
	Gains on revaluation of fxed assets for charity's own use
	Transfer to/from other funds
Restricted revaluation reserve
Ensure bfwd agrees	B/fwd
	Gains on revaluation of fxed assets for charity's own use
	Transfer to/from other funds
Funds for fxed assets
Restricted fxed asset Funds
Ensure bfwd agrees	Bfwd
	Movement in year
	Transfer to/from other funds
Designated fxed asset Funds
Ensure bfwd agrees	Bfwd
	Movement in year
	Transfer to/from other funds
Designated Revenue Funds
Ensure bfwd agrees	B/fwd
	Movement in year
	Transfer to/from other funds

Totals (all should be zero)

Differences on profit Bfwd ( see below)

Proof of inter fund transfers ( which should equal zero)

Unrestricted revenue funds Restricted revenue funds Unrestricted revaluation reserve Restricted revaluation reserve Designated fixed asset funds Restricted fixed asset funds

TB document1621710332608186567.xlsx 41 02/01/2022

Designated funds Proof - Totals should all be zero

Proof of depreciation charges (which should equal zero) Profit and Loss Account Including impairment Depreciation of assets used for fundraising Depreciation of assets used for trading Amortisation of intangible assets Depreciation of fixed assets used for charity Depreciation of governance assets Depreciation of heritage assets Total P&L Balance sheet Including impairment Intangible fixed assets Land and Buildings Land and Buildings - depn on revalued assets Plant and Machinery Heritage assets adjustments Leaseholds Total BS

Proof - Totals should all be zero

Note heritage assets are shown at wdv in the balance sheet - hence the adjustment The adjustment should be checked to see it has been proper;y accounted for

Proof of comparative profit bfwd

Per P&L account Bfwd on unrestricted funds in balance sheet Bfwd on restricted funds in balance sheet Proof - Totals should all be zero

Proof of fixed assets and depn bfwd

Proof of fxed assets and depn bfwd
	Bfwd
	From prior y
Intangible FA
Cost	0
Depn	0
Land & buildings - freehold
Cost	0
Depn	0
Plant & machinery
Cost	0
Depn	0
Leasehold premises
Cost	0
Depn	0
Proof -Totals should all be zero

Note heritage assets are shown at wdv in the balance sheet and will need specifc check	Note heritage assets are shown at wdv in the balance sheet and will need specifc check
Proof of bfwd and cfwd funds
	Bfwd
	From prior y
Share capital	0
Endowment funds	0
Unrestricted revenue funds	0
Restricted revenue funds	0
Unrestricted revaluation resreve	0
Restricted revaluation reserve	0
Restricted fxed asset Funds	0

TB document1621710332608186567.xlsx 42 02/01/2022

Designated fixed asset Funds Designated Revenue Funds Proof - Totals should all be zero

0 0

Proof of internal consistency of accounting entries For details see above Difference on fund transfers Difference on PL ac and BS depreciation Profit bfwd on TB Fixed assets and depn cfwd and bfwd Bfwd and cfwd funds

TB document1621710332608186567.xlsx 43 02/01/2022

England & Wales ONLY - Not Scotland Total Comparative £ £

in blue cells

s should not be altered - contain formulae or are used by cross reference rratives only with great care Check the Links page fter referring to SORP for a wealth of external resources nces may be entered Links to external resources page he narrative headings iance with CC31 directions issued by the Charity Commission

0	0	Links to	other parts of the account	other parts of the account
0	0	Tab to the relevant Excel worksheets in this te
0		Links	Links to external resources page
0		TB	Trial Balance entry
0		Data	Data sheet
-31,996	0	Cover	Front page of accounts
		Contents	Contents page of acs
		Director	Trustees Report
0		Audit	Independent Examiner's Report
0	0	PL	Statement of Financial Activities &
0		BS	Balance Sheet
0		CF	Cash Flow Statement
0		Notes	Notes to the accounts
0		DetailPL2	Detailed schedule to the SOFA
0		Appendix	Activity analyses per the SORP
0		Library	Standard texts and explanations
		Disclosure Disclosure checklist
		History	Details of amendments to template
0		CFworking Internal workings for cash fow
0		Workings	Internal workings for acs
0		CC31	Independent Examination direction
in blue cells		Or for charities in Scotland-see OSCR guidan

s should not be altered - contain formulae or are used by cross reference rratives only with great care fter referring to SORP

nces may be entered he narrative headings

0 0 0 0 0 0 0 0 0

TB document1621710332608186567.xlsx 44 02/01/2022

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

in blue cells

s should not be altered - contain formulae or are used by cross reference rratives only with great care

fter referring to SORP nces may be entered he narrative headings

----- Start of picture text -----
0
0
0
0
0
0
7,380 0
904 0
0
0 0
450 0
0
0
0
0
0
0
0
----- End of picture text -----

TB document1621710332608186567.xlsx 45 02/01/2022

0
0
0
0
0
0
0
3,557
0
0
0
0
0
0
0
0
0
0
0
0	0
0
0
0
230
0
0
0
0
0
7,086	0
0	0
558
2,302	0
524
1,320
0
0
0
50	0
0	0
335	0
0
0
0
1,143
0
0
140
0
0	0
0
0
0
0
0	0

TB document1621710332608186567.xlsx 46 02/01/2022

----- Start of picture text -----
0
0
0
0
0
0
0
0
0
-6,017 0 0
----- End of picture text -----

in blue cells

s should not be altered - contain formuale or are used by cross reference rratives only with great care

fter referring to SORP nces may be entered he narrative headings

----- Start of picture text -----
0 0
----- End of picture text -----

TB document1621710332608186567.xlsx 47 02/01/2022

0 0 0 0

TB document1621710332608186567.xlsx 48 02/01/2022

0 0	0 0	0 0	0 0
0
0		0
0
0 0 0 0 0 0 0 0 0 0 0 0

TB document1621710332608186567.xlsx 49 02/01/2022

0 0	0 0
0 0 0 0 0 0 0	0 0 0 0 0 0 0
0 0 0 0 0 0 0 0	0 0 0 0 0 0 0 0
	0 0 0 0
Cfwd to Curr Yr	Diference
0 0	0 0
0 0	0 0
0 0	0 0
0 0	0 0
	0
king Cfwd to Curr Yr	Diference
0 0 0 0 0 0 0	0 0 0 0 0 0 0

TB document1621710332608186567.xlsx 50 02/01/2022

0 0	0 0
This yr	Last yr
- - n/a - -	- - - n/a n/a

TB document1621710332608186567.xlsx 51 02/01/2022

ts production file emplate I&E ac es ns 2008 nce

TB document1621710332608186567.xlsx 52 02/01/2022

HAWA

Data not obtained from trial balance AutoHide is on Enter data in the blue spaces Enter numbers as + unless indicated Incorporated charity - Exempt from external scrutiny Enter data in blue cells Yellow cells should not be altered - contain formulae Client HAWA Year/Period ? Client Code/Ref Type of appointment independent Basic permanent data Units (eg £ or £000) £ include a trailing spac Charity registered number Company Registered Number 9694355 Date of incorporation 01/25/2010 Registered Ofce Unit 6, Market Lane, Edgware, Middlese Telephone Additional data required for optional cash fow statement only £ New loans raised New fnance leases and HP contracts Redemption of fnance leases and HP con. on sale of assets Approval date of the accounts by the board 04/28/2013 Date of signing on the audit/accountants report 04/28/2013 Name of director/secretary signing directors report YUSUF ALI Name of director signing balance sheet ABSHIR MOHAMED Name of auditors/accountants Pride & Co Type of frm (eg Chartered Accountants) Certifed Public Accountants Address of accountants Line 1 322 Premier House Line 2 112 Station Road Line 3 Edgware Line 4 Middlesex Line 5 HA8 7BJ Accounts presentation data See disclaimer & ter	Data not obtained from trial balance AutoHide is on Enter data in the blue spaces Enter numbers as + unless indicated Incorporated charity - Exempt from external scrutiny Enter data in blue cells Yellow cells should not be altered - contain formulae Client HAWA Year/Period ? Client Code/Ref Type of appointment independent Basic permanent data Units (eg £ or £000) £ include a trailing spac Charity registered number Company Registered Number 9694355 Date of incorporation 01/25/2010 Registered Ofce Unit 6, Market Lane, Edgware, Middlese Telephone Additional data required for optional cash fow statement only £ New loans raised New fnance leases and HP contracts Redemption of fnance leases and HP con. on sale of assets Approval date of the accounts by the board 04/28/2013 Date of signing on the audit/accountants report 04/28/2013 Name of director/secretary signing directors report YUSUF ALI Name of director signing balance sheet ABSHIR MOHAMED Name of auditors/accountants Pride & Co Type of frm (eg Chartered Accountants) Certifed Public Accountants Address of accountants Line 1 322 Premier House Line 2 112 Station Road Line 3 Edgware Line 4 Middlesex Line 5 HA8 7BJ Accounts presentation data See disclaimer & ter
Line 1 Line 2 Line 3 Line 4 Line 5	322 Premier House 112 Station Road Edgware Middlesex HA8 7BJ
	Edgware
	Middlesex
	HA8 7BJ
Accounts presentation data

Data document1621710332608186567.xlsx 53 02/01/2022

HAWA

Data not obtained from trial balance AutoHide is on See disclaimer & ter Enter data in the blue spaces Enter numbers as + unless indicated Incorporated charity - Exempt from external scrutiny Page details - enter the page numbers as appropriate The notes on pages

Data document1621710332608186567.xlsx 54 02/01/2022

ms

England & Wales ONLY - Not Scotland

e c

or are used by cross reference From 1 April 2020 To 31 March 2021 e ex, HA8 0LP Check the Links page for a wealth of external resources Links to other parts of the accounts produc Tab to the relevant Excel worksheets in this template Links TB Data Cover Contents Director Audit PL BS CF Notes DetailPL2 Appendix Library Disclosure History CFworking Workings CC31 Links to external resources page Links to external resources page Trial Balance entry Data sheet Front page of accounts Contents page of acs Trustees Report Independent Examiner's Report Statement of Financial Activities & I&E ac Balance Sheet Cash Flow Statement Notes to the accounts Detailed schedule to the SOFA Activity analyses per the SORP Standard texts and explanations Disclosure checklist Details of amendments to templates Internal workings for cash fow Internal workings for acs Independent Examination directions 2008

Data document1621710332608186567.xlsx 55 02/01/2022

ms England & Wales ONLY - Not Scotland

Or for charities in Scotland - see OSCR guidance 7 to 19 form an integral part of these accounts.

Data document1621710332608186567.xlsx 56 02/01/2022

ction file

Data document1621710332608186567.xlsx 57 02/01/2022

HAWA

Report and Accounts For The Year Ended 31 March 2021

HAWA

Report and accounts Contents

	Page
Charity and Company information	1
Trustee's Report	1
Accountants' report	5
Statement of Financial Activities	6
Income and Expenditure account	7
Statement of total recognised gains and losses	8
Movements in Accumulated Funds	9
Balance sheet	10
Notes to the accounts	11

HAWA

The report of the trustees for the year ended 31 March 2021

Introduction

The trustees present their annual report and accounts for the year ended 31st July 2017 The board of trustees are satisfied with the performance of the charity during the position at 31st July 2017 and consider that the charity is in a strong position to activities during the coming year, and that the charity's assets are adequate to fulfil its

Name, registered office and constitution of the charity

The full name of the charity is SERAD (Skills education research and development) Ltd

Date of incorporation 03/30/2010 Company Registration Number 9694355 The Registered Office is Unit 6, Market Lane, Edgware, Middlesex, HA8 0 Charity Registration Number 0 The telephone number is 0207 998 0308

A summary of the objects of the charity as set out in its governing document. A summary of the objects of the charity as set out in its governing doc THIS WILL AUTOHIDE AUTOMATICALLY

THE FOLLOWING SECTION IS MANDATORY AND MUST NOT BE OMITTED- SORP To provide education assistance including teaching and learning for those children an need more help in the after school and weekends. And to give them any advice they their education in order to succeed in their future.

To rise awareness about the importance of Ethnic minority's education and cultural introducing local authorities, schools and communities to traditional ethnic minor education, integration and cultures and language.

To provide and assist in the provision of facilities in the interests of social welfare for ethnic minority community who need such facilities by reason of their youth age.

Public benefit that is provided by the charity

Relief of those in need by reason of youth, age or other through providing educati projects as a means of advancing in life and helping young people develop their skil and capabilities to enable them participate in society as independent, mature and individuals and to advance education and relieve unemployment. Achievements and Performance of the CharitySocia Insert suitable text Insert suitable Insert suitable text paying attention to the requirements set out in Insert suitable text paying a An explanation of the charity's main objectives for the year.The charity's aims including the changes or differences it seeks to make Details of significant activities (including i Insert suitable text paying attention to the requirements set out in the note aboveInsert suitable ummaryCharity's granontribution of suita o suitable text programme related investmeof main e text ptext paying attention text paying attention to the requirements set out in,paying ,p paying a paying a activi a making policiesvolun ying ying atat es of the charity tttention to ention to tention to the requirement er tention ention to the requirement strate to the the requirements et out inthe requirements et out inthe requirements set out in ies for achievingt requirementrequirements set out in in relation to its main programmes, ss set out set out in the note above set out s stated objectives.objec n the note above. Ththe note above, thathe note above, thathe note above.- rin the in the the note abovethe note above de projects, or se the note abovthe note abov s note above d e is out InsermovwhachvoluntInsert suitablwhat the crvolunteers contribute to the workpractical appl cation ofchariInser THIS WILL AUTOHIDE AUTOMATICALLY practical application of the formal moving on to specifics. What has the charity done, what is its programme etc that cont a rn alternat ti ng tt h suitabl suitable text paying attention to the requirements set out in tthe cry has nvested fundsy has nvested funds e ers o n to spbjectivcontribute to t ii tt eei ve to all the foregoing for thoria are for mria are for m text paying text paying e s ci f or the cs. Wthe formal h e w aaa or reor resourcet haccking grantking grantttention to he requittention to he requiremen o rkunting year cove s theource oo ffbjecbjecthe chthe chcharity done, what s s tt s as s as set ouin in andand aa rity, andrity, and se projecprojecwhat is thewhat is the policy structure underpinning chart ou re d by thmen t t i in the previous section making or invor investment wties nn the previatat tt s s set out inempt to quanempt to quantify thip seot ie accstment wlicy structure nderpinnings programme etc thatsubjecout i oun s section making ts - the t the not hehet ify tho a not note above. Thre there the main u dit who wan ee piir c ab ab r evious semainc oo ntr buntr buve. Thve. Thcont ii purpurt ct c Structure, Governance and Management Nature of the Governing Document and constitution of the charity l aim's of th o no THIS WILL AUTOHIDE AUTOMATICALLY It is alsaim's of thounogrants andfinancgrants and dofinancial rout the objectives for the accounting year covered by the accounts - the previous se THIS WILL AUTOHIDE AUTOMATICALLYInvestmeS objectives set out above.This is in broad strategic terms - the detailed review of what Insert suitable text paying attention to the requirements set out in the note above. Th This is a requirement of Company Law and not of charity A review of charitable activities undertaken by the charityFundraising activitiesEmployment of dis Insert suitable text paying attention to the requirements set out in the note above. Th This is a requirement of Company Law and not of charity law - it may be omitted if full disclosures set ha o ex THIS SECTION DEALS WITH STRATEGIES AS DISTINCT FROM ACTIVITIES omittedInserexplanatlong f nSORP 53 states 'Tois happened in the year follows in later sections f nu to the requi THIS WILL AUTOHIDE AUTOMATICALLY csIf there are no such items THE NEXT SECTION Nature of the Governing Document and constitution of the charityTHE NEXT SECTION IS MANDATORY FOR CHARITIES SUBJECT TO STATUTORY ExceptCharities not subjectshould be sout what wCharities not subject to formal statutory audit may elect to use the briefer section beloIf there are no such items this section may be omittedsection should describ o less THIS WILL AUTOHIDE AUTOMATICALLY section should describ assess the achievements of the charity and its subsidiary undertakings in the year. It sh or favourably affect thdescribes the outcomes or achievements - this describes whaelect to use the brieferof ma HAVE NOT DISCLOSED THE DETAIL OUTLINED the trustees and managed to acquire some funds to donate to other charity groups plus RECOMMENDED AS GOOD PRACTICE BY ALL CHARITIES. SORP 47(b).(UNLESS 47(b). Charit es not subject to formCharof main activities of the charity in relation to its objects', but are encouraged to only nvestment consists of money on deposit, then this need only be brieffull disclosures set out in Charities not subject to formal statutory audit may elect to use the briefer section belo a review of its performance against objectives that have been set. The report is like If there is no fundraising then this note may be omitted or the following may be used The requiremments are se THIS WILL AUTOHIDE AUTOMATICALLY The requirements are set out in the notes abovecharitabl o disclosu Chari If there are Howev PRACTICE BY ALL CHARITIES. SORP 49.BY ALL CHARITIES. SORP 51GOOD PRACTICE IS NOT TO USE THIS ALTERNATIVE disclosure.If there are no such items Charities not subject to formal statutory audit may elect to use the briefer section belo of main activities of the charity Charities achivemeof main activities of the charity in relation to its objects', but are encouraged to THE NEXT SECTION IS MANDATORY FOR CHARITIES SUBJECT TO STATUTORY THE NEXT SECTION IS MANDATORY FOR CHARITIES SUBJECT both qualitative and quantitative information that helps explain achievement and pe It may that this section is covered in theCharities not subject to formal statutory audit may elect to use the briefer section beloD H disclosu of main activthe section The sections that follow adopt the headings set out in the SORP May be autohiddisclosure. of main activities of the charity in relation to its objects', but are encouraged to disclosure.It may that this section is covered in the financial review section, in which case the follT o be usC RECOMMENDED AS GOOD PRACTICE BY ALL AND WHO HAVE NOT DISCLOSED Wher (UNLESS will often be helpful to identify any indicators, milestones and benchmarks agains Example text where there is no fundraising ( not mandatory)THE NEXT SECTION IS MANDATORY FOR ALL CHARITIES AND IT IS NOT PERM of main achievements in the year'', but are encouraged to give this full disclosure.Charities not subject to formal statutory audit may elect to use the briefer section belo M st disclosure. Chari Howevdisclosure.the section 'Summary f main ac In relation to the publice benefibe used to cross rCharities not subjMof main ac PRACTICE BY ALL CHARITIES. SORP 53BY ALL CHARITIES. SORP 53 stKingdom.T achievement of objectives is assessed by the charity.' The charity relies on grant aid from the donors identif of main achievements in the year'', but are encouraged to give this full disclosure. OMIT IT. SORP 44(a). website of main acWhen draf the sectiMay be au of main activitiWhen drafting tD H objects and p There have been no other fundraising activities. applications f In the financial review section of this report there is a description of the investment disclosu When SORP 48 states It is also be repoin the p May be au disclosuin the p In the financial review section of this report there is a description of the investment Mst However if no abilities a objectives established by the trustees and the extent to which social environment the section 'Summary of main achievements in the year'. The sections that follow adopt the headings set out in the SORP It set out in thor charitable donations in excess in the prior section. A the charity trustee objectives established by the trustees and the extent to which social environment whereas the objectives set out in this section relate to the year of the accounts considerations are taken into account. the sec whoexceeding £10. This note may be autohidden VIA POLICIES AND PARAGRAPHSMay . acde o SORP 50 states whereas the objectives set out in this section relate to the year of the accounts considerations are taken into account. objectives that were sought during the year - whether achieved or not . SORP 53 states otherwise for th This note may be autohidden VIA POLICIES AND PARAGRAPHS material in the context of chits charitable or income objectives that were sought during the year - whether achieved or not identified within thess infong term strategy -roro h ubjectmittedr charitable donati u r favounly f mabjecf main achieutcomes or achievfr charitabl actors relevant o the achievement of the charity's objectives nnancial, hOWEVER,ooaaa is lso ould t arity m tt ee orga pan grantarities mmwevew not use th not us mmary of the main ach y be autoh y be autohidden VIA POLICIES AND PARAGRAPHSy be aut IS S tutementutory audivitie whes abovees above what plans are whatails of activit es should, as a minimum, explain the bjectivlanation andpened in the year follows in later sections a ber of employees is belowber of employees is below 250, but many the p the previous sections, which summma n ibeint alternativcial, NEXT SECTION IS in order to comply t ties not subject to formal statutory audit may elect to use the briefer section belo NEXT SECTION IS MANDATORY FOR CHARITIES SUBJECT TO t became disabled e y be r ver if not disclosed it is erm strategy - this is sh su table text paying NEXT SECTION IS MANDATORY FOR CHARITIES SUBJECT TO STATUT ory audi i s', bu iid the afo es not subject to forme vestment consists of money on deposit, then this need only be briefd to cross rves set oun activities of the chn ac a 51 states o be set out.in r s not subject t i l r autohidden VIA POLICIES AND PARAGRAPHSs nt r t pl rerrion 'Summary of main achievements in the year'r s doing and how this relates to its objects. This is differrm on th ted upon, depending on whether a charity is subjec afting text for this sectioi ior sectioior section. Aims in the previous sectionhave an element of the future attac if not disclosed it is e.e.e. Cmandatory for incorporated charitiesmandatory for incorporated charities ably affect th mandatory for incorporated charities mationon and clarification f the nature of if nnif no and donationswere the spof subseconomic,economic, political , social, culturrelation to the public benefit provision, charities not subject to formal statuto activ t es. d THERETHERE th achievement ee ot subject to formal statutory audit may ot subject to formal sisationts THERE WAS NO SO oohiddeoa ing td (b) continuing employme THERE ARE NO FUNDRAISING ACTIVITIES) AND RECOMMENDED etGOOD PRACTICE IS NOT TOre turtur no'Summary of main activities in rela'Summary of main a i chari charity are in the long term tION IS M this section if the prev ous sections have been completed or if the e companydo e ivitf he ompany being wou are encouraged to give e ivitih dtion - it is re the specific investment objectives and how the actual investments perfns aret out. O GRANTS OR DONATIONS ARE MADE) AND RECOMMENDED levant to include info next donations, scribing the policy the performance ach ititve vements in the yeofvious sections, which summ ments set out in the note above.idde e co oit disclosed it is such items dden VIA POLICIES AND PARAGRAPHS s section if the prev ties of thenn disclosed it is .. isclosed it r w i but w but was ations . Ifations e es of the chrage numb e mthe charity in the year This is differ to all the foren VIA POLICIES AND PARAGRAPHSen VIA POLICIES AND PARAGRAPHS ei clarification ofxt for this section be carefuxt for this section be careful to distinguish aims and objects. Objec- it is an exempt on that can be claimed but charities are encourages of the char ty in relation s of the charity in relationdiari t ' 'The e rs f the charitable company and s gove ' Where social or programme related investment (Glossary GL 47) training ,career en mployment by disabled per above.This n y are i WAS NO INVESTMENT INCOME ) AND RECOMMENDED AS GOO he report should contain information that enables the reader to und WAS NO SUCH CONTRIBU Where a charity makes significant use of volunteers in the course of ct to formal statutory audit may elect to use the briefer section bel s ffer, as there is no need for duplicationisnts in 'cept of publ VIA POLICIES VIA POLICIES in place in. Aims have a oedescribing all the fund raising activities undertaken ect IS in place in both the long and the short this is short term tactipol tiut in the previous sections. If using this section it should summans, and these can be disclosed here.menconsider to ber,analysis note accompanying charitable activities in the Statemento formal statua bl e e o c MAND . If AND RECOMMENDED AS GOOD PRACTICE BY ALL CHARIT as there is no need for duplicat ian IS MANDATORY details of significa ms in the previous sectionhave an element of the future attac formal statutory audit may elecon relate t i was estwhat is actually happening in detail in the year covered by the what is actually happening in detail in the year covered by the charitycharitys fiof the Chariformformal statutory audit may elect to use the briefer section bel a to be included (i gener section below 'Summary of main acc thec nd these can be disclosed here.uring tr d persons s -the long termthis sectionthis sect on mthis sect on m t ex ththe charity n relation to its o inval ,charity n relation to its objects', but arecharity in relation to its objects', but are encouraged to heattention to the requirements set out in the note abov oua is is given in year'', but are reaa thaitabl o of evemMANDATORY MANDATORYMANDATORYMANDATORYMANDATORY charitymption that l statutory audit may elect l statutory both the long and the short term to achieve th MANDATORY rity in relation to its objects', but are rity l statuprevious e i a social, culturrt term tactics. charity does not make any grantssocial good that might resul TORY s in the notes above250, but many ic a stment o t ng activities this should be explained. Whilst mr in in its workgoing for those chariocial good inthe nature of the investment t i blished under a Memorandumr'', but are encouraged to give this full disclosur tiviti table activities undertaken, the policies adopt t atutory aud en ANDAND ben THE DETAIL OUTLINED IN THE PREVIOUS NOTES. ivities in relation provision,There is ddevelopment and promotion of disabled persons emp o e period i ved against investment objectives set ii ts work i companyarlier smployees the year of the accountsf £200 , and hese cn reln relous sections have elemebroad strategic terms - the be careful to distinguish aims and IAL NVESTM mation aboucompany has adopted for (a)giving full and fair con t significant t FOR CHARITIES nts of th ory audit may y e ory audit may elect this full disclosurmay be omitted PARAGRAPHSPARAGRAPHS fit, the principles involved and the different ways s in re doese otes toduring nUSE THIS ALTERNATIVE sections. If using this section it should summar aa d up membt and approp 50 naudit may el financial reviewtion to tion to y be omy be om nt ject ves e cluding asso c ct on descr bes encouraged to give this full disclosure. aa FOR CHARITIES SUBJECT TO STATUTO s. an be claimed but charities are that for charities for charities n for charities not subject to statutory audit when th for charitinot make anyof thel.l. activities provided hould focusrrised signific for charitiesfor charities not subject to statutory audit exceed 250, ilai t may elect to use the briefer section belosed significthe investment and the returns expto distinguish aims and objects. Objec with the 2008 FRSS cct to its objects', but are encouraged othe ylimited ion to objion to objects'. o its objects', but are encouraged ompeompetitive orons having harities mharities m IN chari n the c rcumstances of the char ION) AN t might result in relati CHARITIES. SORP 53 itit the a subsand how the ac THE PREVIOUS s objects', bus objects', but are encouraged to under tedted to funder NT ETC ) ueeti nt from the earlier sectionture atar was to securelect to use thlect to use the briefer section be eobjects'.NOTir y were employed by the comp b der tive c es non ed in the accounts , whose supp .s are required to con ct to use the bri iate training for employees of t et y during he year by guarantee, incorporated in jects', but are encouraged to i iate entities and joint venturecounts, a simplesdiairi . e ailed guidance on the charity t nnot subject to stat to use tsection, in aacts'. not ubject to the 2008 FRSSE the 2008 FRSSE n completed or if the charity the 2008 FRSSE SUBJECT TO STATUTORYoo whaty wish o givy wish to giv o nnt activities in relation to RECOMMENDED AS GOO be disclosed here.However,grants or d rt u use he briefer section bel t ubject to statt subject to statutory NOT SUBJECT TO STATU r t the Directors' Report shegard to their partilaw - it may bned under its Ar to ached to them, whereas th t other issuother issu t subject to audit who in relati s erm to achieve the statand the returns expectedactivities in relation to s seeivities of the charity in r is e the brieferdetailedof Association which es s AND RECOMMENDED is happening.tatutory audit or no th in the not are te e briappening.ual inves NOTES. SORP 47(b). ors, activities, projnt from the next se briefwhich case the fo l SORP 398 d objects. Objec pr eeononee encouraged to in he year pay fer section fer section ncouragedncorev de dets ths thstautory cross reference e aa o the objec o the objec dec). r section belomises provid TO STATUT tte ti ions this s ons this se u ew of whatsection belments perf aa o d sclo e to disclotoabove. Thon those a tory audit tory audit raged to omittedt may eitht may eithils in any ils in any stated obncourageicles of Aribute andisclose which - this ci e ty aharityular a. audit asured in e SOR . Thcted AUD belo belo wan e to - re ttt s a.ct s o ss s if le eeod The methods adopted for the recruitment and appointment of new trus SORP 53 states Charities not subject A review of charitable activities undertaken that explains the performance company. in Activities Note that any donations to charity The methods adopted for the recruitment and appointment of new trustees Charities not subject to formal statutory audit may elect to use the briefer section belo SORP 53 states ' of main achievements in the year'', but are encouraged to give this full disclosure. objectives set. Where qualitrelevant to the achievement of its object ves; these might inc ude joint ventures as defined)disclosed in this section under inclusion of such contributions within the Statement of Financial Activities (see paragra of main achievements in the year'', but are encouraged to give this full disclosure. ac The directors of the company are also chaIf there are less than 250 employees, o users, beneficiaries, funders andvestments should be explained'.cluding attributing an economic value to such unpaid voluntary contributions, ptiviti hieve 398 53 states d s, a summary of the measures or indagainst the investment objectives set.' (see paragraphs 191 to 194)'. against fundraising objectives set, requires he activities of subsi ' Where materialComment on those factors within and outside the chWhere m t o formal statutory au at erial i 18(9) of the 2005 FRSSE. ive or quantitathe charity'sfu n draisvestmen by incorporated charitities r the charity is not incorporated , this discity trustees for i di ng activ ties are u t may elect to use the briefer section beloaries to be pc to ive s are held, detaimmenting on any material expenditus tion in i cators used to assess achievemen i nformatiothe wider community' included (including associatethe purposes of charity law a n However, if full details o dertak is us l s of the e in excess of £2 relat onship wid to assess then, details of ai nvestmenchieved agrity's contr. the t h THIS WILL AUTOHIDE AUTOMATICALLYGlossary 47 donations are given in the notes to the accounts, a simple cross reference will suffice. nevertheless important for readers to be provided with sufficient information to unders defines Programme Related Investments as inc mandcomp' and contribution of volunteers. Such information may, for example, explain the aProgramme related investments (also known as social investments) are made directlyludom a e ny'story but may be desirable in som d. generation and explaining the effect on the current period's fundraising Articles are known as memb e rs of the management Committee. Under the cases as a voluntary disclosure ofThis SORP anticipated theshouldMemorandum 398 income berequiresclearly generation theanddistinguactiv tiesArticles i shed in future ofo f romassociationsubsidiaries periods' the separatetheto bemembersnoteincludedon invesmentof the(includingmanagementpoliciesassociateandc o

60

HAWA

The report of the trustees

for the year ended 31 March 2021

g y p p y SORP 398 of the Memorandum and Articles of association the members of the management c anticipated income generation in future periods'. This should be clearly distingu THE NEXT SECTION IS MANDATORY FOR ALL CHARITIES AND IT IS NOT PERM May be autohidden VIA POLICIES AND PARAGRAPHS the organisation’s charitable purposvolunteers help provide, quantify th requires the activ ties o i shed f e rom the separate note on invesment policies and subsidiaries to be included (including associate s. Al con t hough they can generate some financial reribution in terms of hours or staff equivalen o elected SORP 398 joint vMay b SORP 49 states may or may not be provided on commercial terms), the primarypresent an indicative value of t OMIT IT. SORP 44(b). e autohidden VIA POLICIES AND PARAGRAPHSntures as defined)to serve a period of at most fifteen months after which they m requires the activities of subsidiaries to be included (incl ' Where the c h is contribution.'arity conducts a material part of its activmotivat on for makin u ding associast be re-elec i ties through te g Annual General Mjoint ventures as d a statement should be provided setting out its grantmaking policfinancial but to further the objects of the funding charity. Such nvestments could inc e eting. All members of the management committee give their timfined) i es' and received no benegfits fromMay be autohidden VIA POLICIES AND PARAGRAPHSthe charity. Due to the fact that the charity focus individual beneficiaries (eg for housing deposits) or to other charities (for example, people, the managemnet committee seeks to ensure that the needs of this group are regeneration projects).' reflected through the diversity of the trustee body. Insert suitable text , describing the policy and procedures by which new trustees are The policies and procedures adopted for the induction and training of trustee Financial Review how both new trustees and exisitng trustees are trained and educated both in their THIT IS MANDATORY TO DESCRIBE PRECISELY THE METHOD BY WHICH TRUSTEESMembRelationPrinc Insert suitable text, Nature of the Governing Document and constitution of the charity Insert suitable text, decribing the risks to which the charity is exposed, both financ he methods adopted for the recruitment and appointment of new trusteespolicies and procedures adopted for the induction andorganimajor risks to whiWILL AUTOHIDEpal funding srship of a wider neational structure of thes text, text,paying at with bet , paying a explaining why fu paying atdecribing he orga eenurcesher gAUTOMATICALLYthe charity and elated parh the charity is tt and how t wo ention to tention to the requirements set o ention to ps, chk to the requirements set out n ds are in disation structure, commit charityexpenditure in th the requirements set rities anexposed andand how decisions are made. ficit and wha indivies,u rincluding its subsidiaryear ou out in lsviews and t in the note above, d ee and trai steps are being take u the note above, d ding management s r review hasof trusteesystems Insert suitable text, decribing how the charity relates to related and connected organ THIS WILL AUTOHIDE AUTOMATICALLY role as trustees and in any specific knowledge or expertise that is required in the co SORP 44 Insert risks to which th thoseAPPOINTED. REFER TO THE SORP FOR DETAILS OF THE REQUIREMENTS. policy organisation struct the charity THIS WILL AUTOHIDE AUTOMATICALLY financial , and the steps the trustees have taken to address those risks. individualsspecific charity. This should be appropriate to the size and scale of the charitynhincltru THIS WILL AUTOHIDE AUTOMATICALLYPolicies on De should include details of third parties who can appoint trustees charity is constitut SORP para 55 statesFunds in deficit a e key objectives of the charity tve taken t su cribe howtees are trpore ofieding wh s and procedures band proc risks it on.uon i table requirthe documenreserves. relao reserves. appoints hdecisions ate ddrined and ducated bo es to u xt,pd chs tha uree d, iss hose a relas by, committee ariying attmbrellnconnected organ sations ttty that governs s orgare made, te he redwhich new rusis exposed, bom which pote a risks. This se ane ndgrntion pd howisational structure and how its trustees are appointed o cort up(for example, which types of deci ns necd manageme t hould prov,o thnt a t e h it ed organ sations alin their general legal roh financial a e ional organ c es are tion canharity arequ remennew trustee i ade the reader w in nduct structud n d how it is constitued -ot i sations o ndts be correct yed and noividualsset out aren ed ndividuals, and the decision mak fi dentified, selecthow both new trunawhich it li e a n th an ucial , a the note above, dcomple s ions ar trusis a part etc ndt eed withouterstand ththis is d e taken bs and n e d and steing ep i ff s Reserves ) kalater This THIS WILL AUTOHIDE AUTOMATICALLY truIt mayfirstThis section cannot be correctly completed without the trustees first having studied n owld assist thtehaving stud edshould may be omitted if isection se ecti different frbe mittdge or s and o n whbcannwh ch e omitted if e reader i d if itxpertich de o tm arein b edsto a correcd e c he charrie tail the Chari undlilbes no te dohat rga set crstand better how applyedshe organily it s required inion which not y is not ubjec ct o mpleteapplys t y Commissionaff, th s ational s de withouscribes the govern t commithe tot he charity’s decisi statutory aud ructure, butcontextguidance on ri t he e structure)trustees firsof thesi ng d t specific charity. Te k o man t n-mcument, b having stwo reas a gementking procescould u t thedied The in oncould b THE NEXT SECTION IS MANDATORY FOR ALL CHARITIES AND IT IS NOT PERMSee SORP Capp The report should contain a review of the financial position of the charity and its subsi Charity Commission guidance on risk managementa r lopriateManageity e NEXT SECTION IS MANDATORY FOR CHARITIES SUBJECT notev e Com combined in one l of de 55(b) 55(a) to he m SECTION IS O iss on guent C t a i l provWhere any fusize and scalP o licy ommitte id ed in the report is la n cote res e ohas LY MANDATORY IN R e n rvd iof the char tyre es xamined thes ( materially in deferves. Glossary i kely to be dependent on th CHARITIES SUBJECTGL 51 char ty'cit, th) LATION TO DONATED SER s rtating the lev e circumstances giving riquirements for TO e size and coml of reserve TO STATUTTATUTORY reserves in s e h The relationships between the charity and related parties, including its subsidiarieMay be autohidden VIA POLICIES AND PARAGRAPHS.Tc THE NEXT SFACILITIE and detailsSome charities feel it is OMIT IT. SORP 44(a).RECOMMENDED AS GOOD PRACTICE BY ALL CHARITIES. SORP 44(c)(UNLESS potenti It may also be omitted if it does not apply they are held, and the jus statement of the principal financial management policies adopted in the year. h arity and be proportionis may be omitted ifrisks THERE (SORP 136) BUT IS RECOMMENDED AS GOOD PRACTICE BY ALL CH of the steps being CTION IS MANDATORY FOR CH to th ARE NO SUCH NETWORKS) AND RECOMMENDED AS GOOD Pb orgt hea iflpful o include ante to n sation.chc a t on for thr tit akehey is not ubje n It to liminate the deficit. Theeedha es poliof es t organisatihe usersablished c y.t to statutory audit RITIES SUBJECT o a policy whereby the unrestrictf the repon chart. r t. e must also be an e TO STATUTORY d)f) associate entities and joint ventures as defined) (see paragraphs 221 to 229 and Glo RECOMMENDED AS GOOD PRACTICE BY ALL CHARITIES. SORP 45 the notes to the accounts ALL CHARITIES. SORP 44(e) committed or invested in tangible assIt should set out the policies of the trust May be autohidden VIA POLICIES This may be omitted if the charity is not subject to statutory audit WIDER SENSE. AND PARAGRAPHS.e ts heldes with regard to the level by the charity sh 5 (c) o f resrves asuld be for and with any other charities and organisations with which it co-operates in the pThe policies and procedures adopted for the induction and training of trustees shou Th WhGivIn addition,expediture.The r May be autohidden VIA POLICIES AND PARAGRAPHS. The sections that follow adopt the headings set out in the SORP justificae mis e re mater al dis et d fferenthods adopted foails of the nature of th i on for that aspiration, the actuthis section f rom eaunds have beenserves r i l ersection which describes he governingare n the rnclud ee cruitmes materi goverded to meetdesign n ing document (t an al televel of reswhich complies with Compani d , the reserves policy stappointhe working capital t m e g trust deerves and whnt of new trusrequir d ocument, but the; memorandum a atee policiemmes, i e s Act rnt n cluding dt s hould thof the e qut charitable objectives.The text might include - the matters in SORP 221 to 229 here with suitable text.the m aco THE NEXT SECTION IS MANDATORY FOR ALL CHARITIES AND IT IS NOT PERM The May be autohidden VIA POLICIES AND PARAGRAPHS. 'Donated goods and services' were formerly described as 'intangible income ' in previou incorporatexpssocidopted to brnstu d l a norg i tutionbe combined in ne note a tion; Charity Cnagemethnis e d chari purpos a l provit og n t committal tructure of the charity and he gap b t i se VIA POLICIESions relas o fmmission Sth ee design t ing to appointments, for example, election tween ctualare onfident that at thiAND PARAGRAPHS. c heme; Royal Chart a tions and aspiredand, where how d e tocisionr; etc) and how the charity is (o s levelet areserv s id arethey would b e for future s.made, (f o post. Wher example, e able to xpenditu cu SORP 45 The OMIT IT IF FUNDS ARE IN DEFICIT of decisionA statement should beare) cpetiming of ha r rent activities ofs o prelat onships between the charity and rn orrgan sational struc o nslic iti ebody externa tRequires disctu s t and procedures aare taken byed (eg limi expenditurthe l prosure of the major risks t te charityure f t o .d cvide the o mp d ccharity topted h in theconfirming a e charity and hrity is enny; unincorporatefoeven r us th tt itl e hat the m ofes induction and e d la ao t neo appoint one or more ow eciwhicsignificant d d wp as ah jor rrt es, including its ubsidic t s oc ih one charity is i are delegateation; trustees incorpo s training of trustees houks are maddropto which thein fun e xpo, ( df ing. Theor x st o sthed, e ch cha aas mplr ty isff, h i ari r idpreatei te y, Details of transactions with related parties must also be shown in the notes to the acco resehWhTtrue sh of decasA taS The sections that follow identified te rucc). and s ould be explainedie particularr se ociate should s r ves w t eure) esith mentioe,ae c a sui n byen houldlso va s d ar sht th i able tex l tiarihould bysow monetaryy ae SORP 136 ny restricble to t s nd joint venttrustems in place ty is partbe a ken by t se e ogether.es, havprovided t he char ou t ions governing of a wider network (for t amwhere it sta adopt the headings set hhe charity e w o re wibe u d it confirmntryh e the al with th s n rof as defin sui namv ewed£3,926 t es:- i rustees and which ang that the maj t he method abl ee of that pmd)and systems otext.ther (see paragraphs 221 to 229 and G e xample charitif o out in the SORP or that are rf eo rson or body (subj fallsperation of thr risks to which t r procedure delsignific e gated to ss ae nt y shortffi cs l iated hae ct verity and a char t beenaff, tho w ith ycone in ise overheaide Where donated services are received but not included in the Statement of Financial THE NEXT SECTION IS MANDATORY FOR ALL CHARITIES AND IT IS NOT PERM mastructure) s 50) any specifgroup) then the Companies Actparagraph 42 n tifi a gnd w t ed those ri by the trustes.c investment powerThe tr h theould be set out h any o) - wh s relks. ate herionrgy is to e disclo s charities ahip, havinv es c beere with suiture of a person’ o ntilved n ue to build reserves through plann revieweddshould alorg a nisationble text. s and ystems or proceduo be xplained where this impacts on t nam s e with which it co-operates in the could lead to pe r sonal dang e s have bed operating s e r). n e This may be omitted if the charity is not subject to statutory audit SORP 46OMIT IT. for this purpospolicies adcharitable bjectives.Th manage Activities (eg volunteers) this should be disclosed in the Trustees’ Annual Report if this It should also fully desment those risks. Stat o pted by the charicommi e s tha includ t t ce haribe ths t e envitex r itieust t might y se that are not subject to a statutory audit requirement mage th s les seeking r designat i nclud e d reserves, thvel e appointment - the mato be at t ained in three to four years.Int e rs in purpose and timing etc. SORP 221 to 229 th disclosures within this section to those set othe Management Committee has also considered is necessary for the reader to gain a better understanding of the charity’s activities. ( Charities that are not subject to a statutory a u dit requirement under Charity law mt in paragraph the extent to which existing a 44 (a) and (b) . ThV It may also be omitted if it does not apply ex disclosures Detse pa enditure couldrately dealt with undeil of transactions with relaof wi thi ns section abe reduced should circumstances permit. this section o those set out in par r e encouraged as a matter of good practice. SORP 51 t ed parties are shown in the notes to the accounts. under Objects a graphnd Activities and should not b 55(a) and 55(b) . (SO here.) must have regard to the 2005 FRSSE and Companies Act requirements, whi THIS WILL AUTOHIDE AUTOMATICALLY The board of trus Insert suitable tex Principal funding sources and how expenditure in the year under review hasAvailability and adequacy Insert suitable text explaining why funds are in deficit and what steps are being takethe effect of removing this ransacthe investment policy and objectives, inclons and Financial position t t , explaining wherees is s, explaining the ma a pparent tisfied tha of ass e ts of each of the funds xemption principal fund t ters required by th the charity' ding the extent (if any) to w s havassets in each fund are availab e SORPcome from and on what terin detail. Transactions and Financial position environmental or ethical adThthe position. the key objectives of the charity the sepnding e re should comments on items such as emplquate to fulfil its obligations in respectin the year has supported ons derations are taken into account. the key bjectsof each fund o yees seconded from other organisatio . THIS WILL AUTOHIDE AUTOMATICALLYFunds in deficit If the only investments are bank deposit accounts this can be quite brief, but othedonations in kind. If the value can be quanitified these must also be shown as don The financial statements are set out on pages 5 to 8. The financial statements have THIS WILL AUTOHIDE AUTOMATICALLY SOFA. This should be omitted if it does not applyThis may be omitted if the charity is not subject to statutory auditcover all the requirements is the SORP in detail prepared implementing the 2005 Revision of the Statement of Recommended Practi The next statement should be used if no funds are in deficit. Otherwise is should be Accounting and Reporting by Charities issued by the Charity Commission for Englan T 'policies and paragraphs'HIS SECTION WAS FORMERLY MANDATORY UNDER THE PRIOR SORP FOR ALL CHARIThis may be omitted if the charity is not subject to statutory audit Wales (revised in June 2008) and in accordance with the Financial Reporting Standa THE NEXT SECTION IS MANDATORY FOR ALL CHARITIES AND IT IS NOT PERM SOME EXTENT HAS BEEN REPLACED BY 'NETWORKS' AND RELATED PARTIES' AS ABOVESmaller Entities (effective April 2008) .As stated in the introduction to this repor OMIT IT IF FUNDS ARE IN DEFICIT May be autohidden VIA POLICIES AND PARAGRAPHS. trustees consider the financial performance by the charity during the year to have EXCEPT FOR THE COMMENT IN SORP 136, THE SORP 2005 IS SILENT BUT IT IS FELT satisfactory. GOOD PRACTICE FOR ALL CHARITIES. May be autohidden VIA POLICIES AND PARAGRAPHS.

The Statement of Financial Activities show net outgoing/incoming resources for the yea May be autohidden VIA POLICIES AND PARAGRAPHS. revenue nature of £4,147 and net realised outgoing/incoming resources of a capital nat £0, making net overall realised incoming/outgoing resources of £4,147.

The total reserves at the year end after accounting for unrealised losses of £0 stand 4,147.

Free unrestricted liquid reserves amounted to £1,980.

Specific changes in fixed assets

There have been no movements in fixed assets.

Share Capital Share CapitalPrincipal funding ources and how expenditure in the year under review hasFunds Held as Custodian Trustee on Behalf of Others the key objectives of the charity The company is limited by guarantee and therefore has no share capitalInsert suitable text, paying attention to the requirements of the notes above, if the ch THIS WILL AUTOHIDE AUTOMATICALLYTHIS WILL AUTOHIDE AUTOMATICALLY Plans for Future Periods Give the required details The name of the Chief Executive Officer and other senior staff members Insert suitable text, paying attention to the requirements of the notes above, deas custodian trustees for any other organisation. rincipalmembers offunding sources and how expenditure in the year undthe Board of Trustees of the Cha ity du ing the year r review has THIS WILL AUTOHIDE AUTOMATICALLY The members of the Board of Trustees of the Charity during the year ethe key objectives of the charity charity's plans into the future. Only applies to limited companies - May be autohidden on policies and parTHIS WILL AUTOHIDE AUTOMATICALLY If the charity's own assets are held by a custodian trustee then ensure that the d 30th June 2011 were :-there is a share capital then provide the details required for any companyTHIS WILL AUTOHIDE AUTOMATICALLY disclosed in the governance section of the report May be omitted if not subject to statutory audit FRSSETHIS WILL AUTOHIDE AUTOMATICALLY THE FOLLOWING SECTION IS MANDATORY AND MUST NOT BE OMITTEDMay be autohidden i i VIA POLICIES AND PARAGRAPHS

61

HAWA

The report of the trustees for the year ended 31 March 2021

May be autohidden VIA POLICIES AND PARAGRAPHS. Mr Deq Diriye, SORP 58 states Mr Mustafa Noor, May be autohidden on policies and paragraphs

May be autohidden VIA POLICIES AND PARAGRAPHS. r Mohammad Hassan, Charities that are not subject to a statutory audit requirement may omit this disclos All the directors of the company are also trustees of the charity, a disclosure of this matter is encouraged as a matter of good practice. responsibilities include all the responsibilities of directors under the Co Acts and of trustees under the Charities Acts. It is advised that this is used in every case and is not deleted. The directors/trustees are all members of the charity Suitable text will have to be inserted below

The members of the Board of Trustees of the Charity at the date the reThe members of the Board of Trustees of the Charity at the date the report anPrincipal funding sources and how expenditure in the yearduring the year under review h s accounts were approved were:-the key objectives of the charity accounts were approved were:THIS WILL AUTOHIDE AUTOMATICALLY THIS WILL AUTOHIDE AUTOMATICALLY

THE FOLLOWING SECTION IS MANDATORY AND MUST NOT BE OMITTEDTHE FOLLOWING SECTION IS MANDATORY AND MUST NOT BE OMITTED- Mr Deq Diriye, Mr Mustafa Noor,

May be autohidMr Mohamma d en VIA POLICIES AND PARAGRAPHS. Hassan, The following comment applies to this and other disclosures in the trustees' report SOR Statement of Directors' and Trustees' ResponsibilitiesTHIS WILL AUTOHIDE AUTOMATICALLYStatement Give details of solicitors Give details of investment advisors -omit in circumstances set out in note above The trustees, in their capacity as directors,state that so far as each of the directors Principal funding sources and how expe Where the disclosure of the names of any charity trustees, trustee for the charity THIS WILL AUTOHIDE AUTOMATICALLYhe members ofWILL AUTOHIDE AUTOMATICALLYas to disclosure of information to auditorsthe Board of Trustees of the Charity during the year omit in circumstances set out in no Inse .Charities tha diture n the year t the de t are not subject to a st ails in the data section ae above under review has at Char aut rep The entire note may be autohidden under policies and paragraphsthe key objec member, or persons with the power of appointment, or of the charity’s principal addre requirement may omit this disclosure. However the disclosure of these items is encor matically t ies that are was approved a show he ives of the char not subject to a statut re . aware:ty ry audi requirement may omit this disclosu the disclosure of these items is encouraged as a matter of good practice. The statement below is compulsory for to that person being placed in personal danger (eg in the case of a women’s refuge matter of good practice. HIS WILL AUTOHIDE AUTOMATICALLY(SORP 43) . The entire note may be autohidden under accounting periods commencin(SORP 43). The Charities Acts and the Companies Acts require the Board of Trustees to prepar a) There is no relevant audit information of which the auditors are unaware, and The entire note may be autohidden under policies and paragraphs01/04/05 for entities subject to audit trustees may dispense with the disclosure provided that (for charities in England anstatements for each financial year which give a true and fair view of the state of aff paragraphsHIS WILL AUTOHIDE AUTOMATICALLY . THIS WILL AUTOHIDE AUTOMATICALLY b) The trustees have taken all steps that they ought to have taken to make themsel Charity Commission has given the trustees the authority to do so. It is recommencharity as at the end of the financial year and of the surplus or deficit of the charity. In E FOLLOWING SECTION IS MANDATORY AND MUST NOT BE OMITTEDany relevant audit information and establish that the auditors are aware of that informa reasons for such non-disclosure should be given in the report. those financial statements the Board is required to :- THE FOLLOWING SECTION IS MANDATORY AND MUST NOT BE OMITTED FOR ANY AUDITS May be aut The directors of charitable companies should note that .However, good practice dictates that it shall apply to all auditshidden VIA POLICIES AND PARAGRAPHS. there is no corresponding d - select suitable accounting policies and then apply them consistently; 2005 FRSSE 18.12 in relation to the disclosure requirements for the statutory directors’ report. - make judgements and estimates that are reasonable and prudent; and - prepare the financial statements on the going concern basis unless it is May be autohidden VIA POLICIES AND PARAGRAPHS. inappropriate to presume that the charity will continue in business. - state whether applicable accounting standards and statements of recommended practice 2008 have been followed , subject to any material departures disclosed and explained in the financial statements; The Trustees are also responsible for maintaining adequate accounting records whic with reasonable accuracy at any time the financial position of the charity and sufficient to show and explain the charity's transactions and enable them to ensure financial statements comply with the Companies Act 2006 and comply with regulati under the Charities Act 2011. They are also responsible for safeguarding the asse charity and hence for taking reasonable steps for the prevention and detection of other irregularities. THIS WILL AUTOHIDE AUTOMATICALLY Give details of solicitors Statement The trustees, in their capacity as directors,state that so far as each of the directors Principal funding sources and how expeTHIS WILL AUTOHIDE AUTOMATICALLYWILL AUTOHIDE AUTOMATICALLYas to disclosure of information to auditors .Charities that are not subject to a st diture n the year under review has at Method of preparation of accounts report was approved are aware:- The entire note may be autohidden under policies and paragraphsthe key objec requirement may omit this disclosure. However the disclosure of these items is enc ives of the char ty The statement below is compulsory for matter of good practice. (SORP 43) . The entire note may be autohidden under accounting periods commencin THIS WILL AUTOHIDE AUTOMATICALLY a) There is no rel 01/04/05 for entities subject to audit May be autohidd paragraphs e vant audit information of which the auditors are unaware, and n VIA POLICIES AND PARAGRAPHS These accounts have been prepared in accordance with the provisions applicable t THIS WILL AUTOHIDE AUTOMATICALLY b) The trustees have taken all steps that they ought to have taken to make themsel subject to the small companies regime. any relevant audit information and establish that the auditors are aware of that informa THE FOLLOWING SECTION IS MANDATORY AND MUST NOT BE OMITTED FOR ANY A Pl Give details of C The Ins MANDATORY - IF THERE HAS BEEN NO FUND RAISING THIS MUST BE STATEDTHIS WILL AUTOHIDE AUTOMATICALLYStatementAvailabilAUDITS May be autT THIS WILL AUTOHIDE AUTOMATICALLYFurans ll the dir he name of therincipal t he oarith se r re Capit comp trustees finbo members ofds H tt investment rust WILL AUTOHID he r y Law suit WILL AUTOHIDE AUTOMATICA pesuitable for Asuitab e t an ctions ccount .Hrd ofrequnuacia ea esonsa tyFuturefunding ources es actor o ny is lim quired ld as Custodian ruste b wever, good practice dictates that it shall apply to all auditshidden VIA POLICIES ,l Aas to arand th AUTOHIDE AUTOMATICAL el AUTOHIDE AUTOMATICAand adequacy of s UTOHIDE i Gor l t n red d t and Financial bank solicitors invemarkt re a atem e text ,pay nus th of alxt bouth exa nx dte disclosure of information toPeriodsthe Board of Trustees of the ChaChief ,pe tse policy and objectives, including the ex lso responvral ir capace he,tmen e o respons ble formpl tailse rstCompds i a d by ntpaying aMyingbilcompanyw AUTOMATICAL s e AUTOMATICALLY - AUTOMATICALLY i omit t e Executive Officer and :-etthar- nosh advisors - nganie et a atouarantee ty tipr t g *ifinanare *and how expe steif n positi e as ible f t s A this e par ass entiharentt ondomout d AND PARAGRAPHS. ict s is for i s erec onia o hs requir o dmbals an isr main on l ts of retimtonoicthe n p t into oitor for erf d the rs,s i Y pages * to . th t B e LY accos LY con Y ormust each of the th Theno dviso,the rof tappointedIfR e tta e half of Othe rbut areTc e r t Th. ha dining e T qu here yAs thise ran Char the B e dit dancfo ehe te tr e fqus dati t c ire has n rem hat so arty'ss other qu o auditors cf i fd by o re n the year llf the chr aoeoeli ardllowingf the tru r dequate accounl owing e remenf u as m e wifrbwit reigints o i the e ty. p T to ityfunds aset far a senior staff members lownts SORP 41(g) bpo g e hhe le for rsidisetats a intrtpr ts duat the date ser har fisrcsmust be istee is required byadviso co wty, aar e s na outpatt outde ie ing the year pfu ao requ red ea s ncial rn s capi fs'tovie f n in ent (if any) to ts - the h ischppointmeaccd heiroe r und of eporpr st na t s.Chen thi, suching alsfund a o mandanotes ot n o nhun av the report an scial sabj ete r review h by, rrec od - tsnexapplicabli d mentand esponsi ti e n bae re ordab t SORP 41 ex SORP 41 ot t ory to st ab.h c afsu oe avai t disc ts ohe vmpt femre thprive, ar undhavwhica s v b t r res, laeo ili w sdeyontr vse t b et s t wm a INSERT HERE DETAILS is fodae s ch enviro pr accounts were approved were:rep The entire note may be autohthe key objec fin 2005 FRSSE 18.12 wiTautrequ remInsholl tcu dequate to fulfi hea c e rut nybject oc ta a sndar t hpa au ert so rity'snchste r hi reas untfollowinh ie mi tial he d h was pr ncr t itor de uru mental or ethical considerations are taken into accou a ens/ imyp ans n en n itr ysonabpons et quable t l ory audi esa hdar wh uport w i tua'/aud g t plemeeinr mayis a proved itai s ofnot s dder ile a rbi bd ives of the e fund lt r il a lbyx t ch g its o onatihpoliciors cnting the 2005 R tl om t thispol ciiowisc,sthe e a hrequi c the o paying s oare murn toblig i uldvndmpaniof direcpphaveccoinfut ace aer SORPndatorys and aware: s anmustomy ovtificate. To complyement u be hownthtion true re.nt at e comedi esd har s t in s p o enru - not beparasclosuraregimf £25,000ir a deta n for companie s may omtrasnd fa t ty h y tteiorfrom andu den under polici ene lisspec SORP 41(g) if therde to ie. v sion of ths' eport l me thfists mayvar ed. i r view o tr sHowher hth t i t thmay be differforof each fu e e is no e f onrequCompa is ver theaccounting pis l miwith no th(bdisclosuwhinanc 2008 FRSSE e i .rsol c ea SdiffTh stamdv st tn the FRSSE 2008 i ed o atal pies Acts atd. e disclosure of erei s head ng of thn emt .(change if not true) or e f affa t nt - and paragraphs s ofnt -. o ens, who hae siHowxam ningri ti andf howthio of) ifds nd ng n oe h i d f trustv nrRh s e s e otes e wevf throf b commwver thhesthe di the i t. en the e above, if,notr c inst on or t charity s arepo e it she y andedclosu ee as underms spndr bo r ywill ucted ity r eat after are ia ng in the Pracndrd mnd of thiin t n th6sach en c t i t the Accou Omi rather o ae fromRe THIS WILL AUTOHIDE AUTOMATICALLY suChangesufendmaas cus THIS WILL AUTOHIDE AUTOMATICALLY n p he statement below is compulsory for accounting periods commencin t. prdt poed t hegroove hicaft the f ot pplicer of goo'Investmentd inr e t agedwithtanting anwith nt ofa s e han in d s to sh c i th ae i a ssfixn t give twthgivl yareph e of the trus s xt ed key objets accda e acc o EITHER a paReporting by Cw and explairtmat t Advis r wo lisees fbless a and minut o c r and of t e untingunting te litice.pless s c or r ots simply give one ts are s' any ot (SORP 43 i f ,. , thgoodthethddate AND with whsimply g v ahe te n eown in dre adirector th £3.26 m ll onthe chpracticesuAND wi e a r i r orgiteplu app ) i .es The entire no i etais oar nisati i o .(SORP 43). h whssued by ity's n re nvall in he nor deficconsistene list wilis t , o before thm there is not aransan. w t m membhen h it note may be autohidden under of the hthe ere is no a tc tioia e Chs tonote saying the e s with the frers n ns ao a t is o obligaofrimed person sie she ch tn the charityy Cd e aac rity. I contiyi o coun n mmintable them tg the trugures discl nt uing r preparing thosuiio s trustsion for E. n (n g tn relatio ose te he showteelaesthe rep to io ensu s in officed n in ship anydiffeglanship o in re ffit WMIf th statements dathe noChof a) probably The entire note may be autohidden under policies and paragraphs01/04/05 for entities subject to audit May be autohidden VIA POLICIES AND PARAGRAPHS.Mnot b paragraphs fin HIS WILL tTha diry beles (revye r bncia t eport was apprib eee on yhi r ctoen aunsomit l rep i norequ st that ar r s/equired t in .sed in Juatemo th AUTOHIDE AUTOMATICALLY ot vestmen wisrusterte Board i ireld red ifdwas approved ee nts comply with the Comp van es to no o VIA n t ved wdobe t onbe t a e 2008) an ubj ss ubjectarePOLICIESso. u requiredusthsed dite bare the od in the last two years.ct information to s n were the sin ttoke a tdh ANDao :-eposiatutory audit isame s thoe lasstatu n accd and membePARAGRAPHS t taof account or wo years.me which the dy anas ud tice with th es those in office dur ng the i n office durithis Act 2006 and comply wChChar r eqs on a canbe u riti i reme d t iet es that arehe ors s th Finquit n o are unaware, and at g the yeart a mhnc eiar brief,),ey omit his disclol Repornot snot subject to a st OR bby ue bject to a t i came arth rng Standaoth e rwise gulati OR s tu YUSUF ALI thm Th Smallall b) THE NEXT SECTION IS MANDATORY FOR CHARITIES SUBJECT TO STATUTORY Except forrequir SORP para 55 statesOnly underequiIf Mandatory e e nis may be theTh IS WILL mbers of he char disclo FOLLOWING SECTION IS MANDATORY AND MUST NOT BE OMITTEDr ere applies to limited companies - May be autohidden on ement may omit this disclosure. How 57 states thxtmchar trus Eequ esnt Charities Act. They are alu ti ahe acqui re ty' AUTOHIDE AUTOMATICALLY i ee may omi t oies (effecforement of ms entsit have aken own assall charities only if the t heed si sh i se ityfti t t otht ive Apriduring thuldn of officems is encourhis disc osure. However the di e ts chSORPbe used if allar e held by aity stepl 2008) .As in de e is notyear.furniture and equipment in the sum of s o tahat they ughtre no fugedilThis isubjspoareacu nses dverct o ata t s ibluchtod ot maare e comply withthe disclosure of thesed s i for safean trusteetem t ter of oodatu in tto have defic t. s closure of thehe SORP 59 Also ory au g uar i ntrodu the Otherwi diaken to make themsel pratng the asn ensure2008 cti policies and par on toce. se i FRSSE (SORP 43).see the defin£ it set t h should bms is enco there havms is ens of at is repor the c d trusnomat TheRECOMMENDEDWherether any 'polihenmattdiscl glossaryHE m teescer entire o FOLLOWING irsedrv levan s is of e forof material andmentsleccongoodingoo t tak noteshare the s paragraphs' audit iu table di pinengpracticegov r acticefix mayinvestmentsAS th information SECTIcapital r ee accountingrndasonable GOOD financial be a (SORP ssetsnce (SORPautohiddenNthen section PRACTICEIS and 43) step MANDATORY performanc are policies 43provide e ) s of heldThe tablish forthe underBY and entireSORP rthe e theALL that portthenby ANDpolicies prevention detailsCHARITIES55(d) the note apply MUST auditors charity mayrequirand them requiredNOT and paragraphsbe during are consistently; SORPsBEautohidden detecti aware a fdescriptionOMITTED the 41(f)r o any yearn f that of company to under informa fraud of have th a

62

HAWA

The report of the trustees for the year ended 31 March 2021 - strusnomat Where materialtherRECOMMENDED AS GOOD PRACTICE BY ALL CHARITIES. SORP 41(f) any The entire note may be autohidden under policies and henmattdisclpoli glossaryHE FOLLOWING SECTI m tees cero ir of good is sed inr ofv levan for tak e andments in fixleccongoo t s share the govparagraphs audit iu table accounting policies and then apply them consistently; di pe practice.ng r r actice. th investments are held SORP 55(d) requir information and e capital then provide the details required f ee rnd asonable step financial performanc a (SORP 43). ssets.nce section of the r (SORP 43N IS MANDATORY AND MUST NOT) s . The entire note may be autohidden under tablish for the prevention and detecti ethat by port the auditors are aware f that informa charity during the year to have paragraphss a description of thBE OMITTED-r any company o n of fraud a . Director and Trustee T - makNote that FRSSE satisfactory. The report should The entire note may be autohidden under policies and paragraphsinvestment, the investment powers and what the authority for investment po irregul paragraphs HE his m FOLLOWING SECTION IS MANDATORY AND MUST NOT BE OMITTED FOR ANY a y be omitted if the charity riti SORP 41(e) e s. judgements and contexpl ain requir the charity's plans for the future including the aims and keya review of the financial position of the charity and its subsi es timates that are reasonable and prudent; and th is not subjectand this is different from the next disclosure belowto statutory audit NCTHISther AUDITS - prepare th has set for future periods together with details of May be statement of the principal financial management policies adopted in the year. Omit if noGiv o nfirm that te e WILL AUTOHIDE AUT tha have bee following d .How t u t SORP 41(d) applicablhidd 18(8) of the 2005 FRSSE ever, good practice dictates h n no ch e n VIA P financial e t a ngeils:- requi O LICIESMATICALLY s ftatements on the going r om thees thisAND PARAGRAPHS.trusand this is diff reg t ees a rding indemnities g ven does not apply t it shall n offi any activities planned to achieve them c oncer eapply rent from duri nto all a basg the financial year before i s the u nless it is dits above disclosure Th there 2005 reportWhere is e Statementiss h FRSSE inapis a ouldveadisclosureacharity p beproved,ropriateb e 18.12 nofclearlynoFinancialis,requirementthenchangest o rpresumediit s compltingu strusteesActivitifrom i ancetnew he atthesdare,theshowtofromistruste ac thecharityhitingntheSORP e tveds outgoing/incoming asinnotewillofficeforcus2005,conton t od anheduringinvestmand i nuenexttrustees,isindisclosutherbusin e ntquifinancialp res thed r eformanceourcess.bybyfollowingSORPyear,statingforthen41(f).againthematthayc

63

7

year and the o continue its obligations.

0LP

.

cument.

d adults that 47(a) - y need about

l heritage by rity forms of

recreation of

ion, training ls, capacities d responsible

e his should setescribingatat ervices . .- This is the . This is now e.e. Whmember this scribing- This is This is nmakmakWh ee s clear s clear rere thehhowthe ow the g theg the giving of his his shouldhis nt tectirporpo t tribute to the lear whatlear what tionributeion sso houldhould set e was note was notnaas ing vingd s i sclostoinwer ththe sset ee of t hh e ecti ying attention emembd in all senses d in all senses his hould shis should set e any politicbjectives.ections were t has actuallyt has actually cts -cts - then anrise what the d t is is d objectives. ction may be thetheiis different may covmay cover os n may be give the differenaverageaveragethen r his ea r t nl ely to provide ORY AUDIT TORY AUDIT DIT D AS ory auditnt to isclosfformed. If the relation to its owow 'Summary ow 'Summaryow 'Summary ow 'Summary hould provide her adverselyher adversely TIES. ection - that rise the main derstand and s facilitate its D PRACTICE d to give the event.event.give this fullgive this full AS GOOD edaccounts.accounts. o objects. This AUDIT AND HOWEVER, bjects. This rme'Summar AND WHO by d SORP . If thone ofma ey UTORYD AS GOOD RPMISSIBLE TO TORY AUDIT n the ow 'Summaryow 'Summary ow 'Summary ow 'Summary ow 'Summary ow 'Summary describes the st which the D PRACTICE allowing shouldowing should rformance. It give this full give this full give this full give this fullgive this full is subject ow 'Summary ow 'Summary to comple AUDIT AND give this full give this full to co 54. incl AUDITu nited plete de a t o e y commission nsideration toow 'Summary ow 'Summary tablished the ort is valued. to complete n amount notaptitudes ande any po ie any poliactiviti tal or ethical tal or ethical the he objs this shoulssare discloseare disclosed are disclosed hed to them, hed to them, is subjecta whol if full de policies and policies and to comple to complete give this full give this full and are the requirciation. ee ctives s s t. T tt anyailsicalicalhat the In d o e pany and (c) eas defin f undertaking s or services activities are and are the will suffice.d) ployed by the nt of Financial ement issues,making such e entities and e outcomh ow 'Summary ow 'Summary rol which are 200 must be stees prevents the ainst performance mploy e of es, aph 133), it is of grants and closure is not and under the ure for futurnt should b e stand the role g return and requirements activitiey in pur s thatuit of e o mmbjecent iti teeveses andare

64

y p e ent o mmbjec iti tee areveses and MISSIBLE TO nts, and mayturn (funding ed at he next enti t ies and g them is otrantmaki n g, me voluntarily lude loans to ses on young in relation to appropriately

es. inducted and es. d cial and none S ARE en to revers s de structure.general legal ies escribing the to mitigate cribing how supported nisations and ontext of the d appointed , sg escribingand exisithe tru This procesof how s tees. the ng n any specificby the charityfferend and trained t the rustees t from a essses operate. hisbinin detail the e two areascombineddetail thshuld b e MISSIBLE TO RVICES TORY AUDIT he idiaries and a n ightplexity to the eficit AUDIT AND l d an dof the w y s (including ted funds not HARITIES INRACTICE BY xplanation in AUDIT AND ossary GL 50) spired to, six mon t he hs eseuireme char tpursuit of its detld be set out rustend arqu a two areasnils of eti s hnts ffcles y an ve od yrf MISSIBLE TO oe us SORPs ,re,con r which its tre any o t hein u typeslikely t eherthe es he commitesent levelsed as a body;, whld bntifis ( ncludingtrustees thiexpo ei chd by se typtd, aout t h e of e s unts. he commita summaryestablishednsidering hs Glossary GL required provisionsan umbrellaexposed, as t by of eto e MISSIBLE TO established othurplusNpursuit of i e w trustee op e ratings, the ts may limihe shor s information t t ermheir Volunteers areactiv ties andhe additional ay l i mit their be duplicated RP 56), but ch may have ble and en to reverse rms, and how s supported hich s cial, ons and other nations in the erwise should e been ce for hidden using d and TIES AND TO ard for MISSIBLE TO rt, the . been TO BE STILL

ar of a ture of

d at £

s supported harity acts escribing the s supported nded details are ragraphs. If y under the

65

and their sure although ompanies

eport andnd s supported

RP(42) and s supported , senior staff atutory audit the imet hey w this ll ure. However ouraged as a ss could lead re financial ng on/after policies and ), the charity ffairs of the d Wales) the ded that the ves aware of n preparing ation. incorporated

dispensation

h disclose which are e that the ons made ets of the fraud and

s supported atutory audit the time this ouraged as a ng on/after policies and

to companies ves aware of ation. incorporated ble e sponto 1(g)nd escr bing or s supp1(g) ts fure e romieatutory hich social, xplh ddisclo th rbdate n, s nacco e compan, nexpl oaisclo e i ar eind May be t s ni externalMbility of me hisur ingfot a sndeiny bch bject a rted e theting rudit ies mustamhar thns the two yhe Charitieouragwhc the e April 2009eameuring thse ite for it ch ardy actswen, thenyfaltering eo ar d r, theny m of e as a s ha a arars llyt i s, p that just hffer ng ng on/after e t policies and e dth ce aetails thatfiat just hase fi nat the the daadcapa n cial ancia d t iteys l ard for tatutory audit ions made ure.tatutory audit ceaseshoulHowe d ct o be ver detailsrt, the ouraged as a ragraphs. Ifnitions ou h e be ves aware AUDIT AND aidd r aged as a ity and en areusing in the of ation yhe and policies been underpolicy other andtheon

66

ation. y underhe policy on and other policies and been the owers are . y objectives w. H idiaries and a inco wever, if rporated it e the date the m. . However, if nstyearatcompliancettersThetherobjectiveofshouldh e adingwerei s be

67

HAWA We As described on page 5, the Company's directorsThe comphave conducted our audit in acordance with Auditi a ny was exemptudited the accounts of the Company from the requirements f a on pages 7 to 21 which haveg Standardsare responsstatutory audit in the i ble for the prssued by the year B2000dd tAd It ditith i l dthi it l Filfd f thi i lbilitR i titti tif St A dt i dditdfb l Si dthllft Eidi titii ti(FRSSE)b l fid t tff

68

e been prepared in frreparation of theAuen d iting Practicesed 31st March f thtithditM ht2000thd d

69

HAWA As described on the balance sheet you are responsible for the preparation of the Independent Accountant's Report the year ended [date], set out on pages 4 to 11, and you consider that the compa We As described on page 5The company In our op niond conducted our have au rconducted our audit in e port on the scr i bed ited the was ithethe Staexami aexemp finaudit in acordance with Audit ng Stccouaccounts fi n , the Company's dircianc al ntta emenhe Cst fr l oi staaccordon in accordancf the Company on p m o stat t f thmpem ofthe requirementh eane requiremenments Company onDirecty's dcets givw th io r e f e rs' Respctorcto[name awUK Auditingt itrss h thue aof a stpage a of tarre responsible foges 4 oe an f General Dirndd frespsibilenti s 7 aa tutoryrds tto r v e i uties the company's Sy]o 21 wnsible fo 9 t ory aud t inandar i for tssu w audit in thehi of th ehcd eich ave beth hav by ths ri ony the prepa is es ar endedsuedgiv te he yatAudibeyn bby of ee an from an audit under section 249A(1) of the Companies Act 1985. In accordanB accordance with CMarch 2000 andPracticeIn our opinion :-comprresponsiblnd availedff oa mmrd. An irs unts. is ase pioneBoa Ia The di at for theudit igesitselfis our responsibi ity[ r s d ate] and afo5the Financiaavathe Fin nr ofd toeccludes ex Epr itn l12.hisors consid e gland & accordance w th pd its a Theseof tsexration of he finannc eia lfmption. A l l RminaRepofincWale e finato form anthr that porting S oti mingrton, s exemption. Accordi in . audi c g Standard for Smallcordinglyial staon the c resour tanda in cPri omi tea el stateme c st bmtiesrd for Sma p , the ce aordance with Auditing Stande Note ' nas dent opinioty is exnd appis, have beencompa n ofts g y , e The Audit ll evidence relevmpr Ee i nc ra Enthe caccordance nti from the requireti, baon fve ti prepaeties (the FRSSfigu os ed on our umpar (FRSSE), eof Chresourc re ds a wiforin accnt to tr i v t iesh e ths, a a f instructions, we have compiled these unaudited accounts in order to assist you athe income have not beMarch 2000, a2000, asyear eKingdom' n uccounts and to d it and that dAuditiUK AcF in sclosurded 31st Maana n , revised c modifidialg Practiceoun e xp s t Rhing S e rin them ee npd by the Statemre nport od in Aprilaudited, r ch tis ifieture,aningnBour opinion o yoaccou2000 do a by the Sard. An exSta r 2002 . Anequirement in ds.for theand our pinihave not been audited, and our pi n ts. It also dard f t atye oea r Smaller Eantment of Recommenmr u dit in . theo ation includcludn does ofi n articles of the CRecommendecludes e s annded, n tiex t as extend toi esa s ,ndminatioessment a detailed revi d ed Practic Prachaveeffectiv o mpany for the con n o ,i t beenhoson a ticn doef the significa e e issued bJanuaryfigi e properl ssu w of th not ext res, eed bbasis y 2 statutory responsibilities, from the accounting records and information and areCommissioners for England & Wales (ef they impact(a) The financial statfigures,nu ccordance levancords kept by the Charity and d it. I judgem t except where they impto the amous ourwionthen t hs made by thebalances broughtresporequirthe Co ements are sibility to ts andpanies Actdiofdiscf tco he Stctors in hlosuof the asccourwairry n 1985bagreem ra esd to thoulances brotemappl cable o t in proc ective October 2000), under the he prnt of Recommend e he financial s year nte paing sydwi ure ght foation of t hs dnd s the accountitmall compa e dsigned to enams employed y theward to t atemeh e accounts and ofd Practice fthe year n ts. It iesg ecand b le us or ende al Acd s l oC supplied to us.A accou 2001 convention and the accounting policies set out on page opinioReporting iOur responssessme mpa rison of thny under s. ng t s policiesibility is tosuedStandards aof the significant e by the Char accounts wction 221 of thre a ppropriate tud t thed in acc it h thy e fst mates CCommnanc al statements oo se rempanirdan th i ssio coe ards. It lso withmpany's circumstancs Act n ersd judgements1985fortheEngl in 12.6.; requirem ccordance wiclu a n d es consideration of & Wales, effectmade by e s , consistentlnts of the S th relee d re iv Report of the Independent Accountant to the trustees itRunder th IMPORTANT PROFESSIONAL NOTETechnical note.VERY IMPORTANT LEGAL ND PROFESSIONAL NOTES adequately disclosregulatpreparation of th e his text will automatically autohide. commms C ND IMPORTANT PROFESSIONAL NOTE ore dy requirements hnded is closures in the accounts , and seektorical cost convention and in accPractice for Accounting and e d. financial statements, and of whand UK Auditing Standards Rep or dance with the accountting issu in g explanations fr order to form an indepen e dther the accby the Char ty Comm io ngm youunting polic on the accounts of the Charity for the year ended concernbased o(b) Haviappropr ate to the cEngland & Wales.the notes to the financial The items that are required by law to be stated in this report are set ou in ng such matters. The purpose of the examination is to our audit, g regard only to, and on the basis of, the inform o mpany'sn tho s tatements.e fc rcumstances, connancial statement s and isten t lyo rep 31 March 2021 a ppliti o n contained in thosrt our opinion to e d nd adequatelyst a blish as far asyo thWrecords : . T An independent examination mThe Charities Act 2006 now req Charities (Accounts and Reports) Regulations 2008 which state :- e is standard text will need to be varied for a qualified report in acco plannre hav e d and been no breaches of the Charities legislperformed our audit so as to obt u ires that where gross income exceeds £250,000st not be signed in the name of a firm, but in th a in all the information ation and that the accou n tsd thWwhich we considered necess ind In making guidance CC31 for accounting periods commencing on or after 1st April e ividual. Hence the ependent examinemepla n t of Recommended Prned and performed our audit sour report, we must s r eport is worded with 'I' and 'me' rather than 'we' and 'our'. must be a qualified a cry in order t ice issued by ate our o pinion as as o accountant. A listto pr t he Charity Commissioners for Eng o vide us with sub t o whether the nancial stateain all the information and of the statutory qua f ficient evide rtrue and fair viewwhich we considere(We report1) the financial statmeout in Guidance CC31 and CC63a. Below this figure, a person suitable for the ci e 31. An independent examiner who has carried out an examination of t asonable assurance thatffective October 2000), on a test baon the fia nd ancial statare prop n ts have becessary in order to provide us with the accou e mrly prepared in accordanc e ent ns drawn up in ats are of this, of e freevidence relev charityfrom on p ma nnert ea with the Corial miges 6 to 8 for the ynt to the amouconsistent wi s stateufficient evid m panies e nt h, ws ant he in the acc re allthJune 2011 whichStby fraud r other irr under section 43 of the 1993 Act must make a report to the charity trust asonable asquirements specified in section 249C(6) of the Act ; e applicableps should be taken to ensure that professional indemnity cover extends t charity may be appointed, and there are guidelines on what constitutes su o untUK Ac s . uranhave bee ce ounti thgul an rity ort the g Standards. Weprepared in accerror. In ffinancial statem or also rmida n g our opinic e ntsport to yin accordance with the Financare free from material m o n we also evaluateu if, in our opinion, Standard fthe Trustees is not consistenGuidance CC31.adequacy whether caused by fraud or othersigned in the name of an individual instead of the firm, and the letter of engage o f the prr Small e r Entities (sentation of information in the account t he FRSSE) , effective April 2008, with thirr e financialgularity or error. In orming our opistatements, ias modified by t f the company ofThe procedures undertaken do not provide proper accounting evaluated the overall adequacy of the present2) the company satisfied the(a) states his name and address and the nambe between the charity and the independent Recommended P r ea c ords,tice forif we have not receivedAccount ng andcond i tions for exemption from ea xaminer, not his or her firm. of the charity concerned; Reporting issued by the Charitytion of information inll the evidence that would be reall the inform at n audit of ion ahe fi n anciad expCo statements foaudit , for EnglrequireHowever, it is probable that professional rules of the various Chartered Institute(b) is signed by him; for ou and & Wales, einformati r audit, the yea or n supplispecified in section 249A(4) of the Act ani f information specified byectiv e Aprild by the trustees in the course of the exa2005 revised in June 2008, under the hlaw regarding irectors' re d did not at an m ui conven t subjected to audit t If qualified, the authorisation department of the professional body m prevent a qualified accountant from undertaking the duties of an indepen(c) is dated and specifies— ransachat year t ion and the accountiions, fall within any of thwith th e sts or e compa n ygquiriis notpolicies set ut on page 7. e s, c a discltegnd c o sed. o ries of companiesnsequently we do not express an audnot entitled to th the view given by the accounts.specified in section 249B(1)whatever the levels of gross income , unless that person holds a practis satisfied that the individual has authorisation by way of a practising cert (i) in all cases, the financial year in respect of which the accounts to wh ch it relat i ng certific We read the Report of the Trustees and consider the implications for our report (ii) where the charity whose accounts are being examined is a company, confirm Respective responsibilities of directors and accountant We planned and paware of any apparrequired to be audited under Part 7 of the 1985 Act; For sole practitioners this will, in fact, not be significant, and the fee will be includ If a qualified accountant who does not hold a practising certificate e nt misstatements within it.rformed our audit so as to satisfy ourselves that the obje independent examination are achieved and before finalising the report we o accepting appointment as an independent examiner, the precise posit return and accounts of the firm.(d) if the gross income of the charity in that year exceeds the sum specified in assurances from the trustees of all material matters.We report to you our opinion as to whether the accounts give a true and fair checked with the professional body concerned. See the ACCA guid Act, specifies the basis on which he qualifies to act as independent examineAs described on page 3, the charity's trustees, who are also the directors of the properly prepared in accordance with the Companies Act 1985. We also report tosection; For partnerships and incorporated practices, on the other hand, it would be sens prohibit such work, unless the work is honorary and in respect of an the purposes of company law, are responsible for the preparation of the ac opinion, the Directors' Report is not consistent with the accounts, if the companythat either payment for fees is made direct to the independent examiner by th gross income of less than £100,000. (e) states any, or any other, relevant professional qualifications or profession trustees consider that the audit requirement of Section 43(2) of the Charities A proper accounting records, if we have not received all the information and expmember; that the firm acts simply as a conduit. The independent examiner should decla Act) does not apply, and that there is no requirement in the memorandum and a require for our audit, or if information specified by law regarding directors' remuhis/her tax return. This may have VAT implications, and if properly documented As an independent examiner is just that - independent, then honorar (f) where the accounts are being examined in the circumstances specified in reg charity for the conducting of an audit, and that the charity is exempt from an transactions with the company is not disclosed.charity a VAT charge. An alternativdate when the Commission dispens suggest some kind of gratuity to the entity which may prejudice indepe e is for the firm to pay the indivd with the requirements of sect on 43(2) of th i dual an annu Section 477 of the Companies Act 2006.The trustees also consider the charity t sign all such cert under the SORP a value must be put upon the work and be treated a (g) specifies that t is a report in respect of an examination carried out u i ficates. If so, this retainer should be declared on the i n der sectdividua from the requirement to be subject to Independent Examination. We read the Directors' Report and consider the implications for our report if we bin accordance with any directions given by the Commission under subsection (and be an expense in the firm's accounts. This, again, may have VAT implications expenses. It is suggested that non practising certificate holders caution. of any apparent misstatements within it.are applicable; Our responsibility is to prepare accounts upon the basis of the information supplie (h) states whether or not any matter has come to the examiner’s attentio examination which gives him reasonable cause to believe that in any material res No statement of opinion (i) accounting records have not been kept in respect of the charity in accordance (aa) where that charity is a company, section 221 of the 1985 Act;

(bb) in any other case, section 41 of the 1993 Act; (ii) the accounts do not accord with those records; We have not carried out any audit procedures and have relied upon information s us by the trustees , and the information supplied by the trustees in the cour (iii) in the case of an examination of a statement of accounts which has been p examination is not subjected to audit tests or enquiries, and consequently w 1993 Act, the statement of accounts does not comply with any of the requireme express an audit or other assurance opinion on the view given by the accounts. as relevant other than any requirement to give a true and fair view;

(iv) in the case of the examination of the accounts prepared under Part 7 of t

accounts— M. Kiwanuka FCPASubject to the limitations upon the scope of our work as detailed above , in co (aa) do not comply with the requirements of section 226A of the 1985 Act othe Pride & Coour examination , no matter has come to our attention :give a true and fair view; Certified Public Accountants(bb) in any case where those accounts state they have been prepared in accord 1) which gives us reasonable cause to believe that in any material respect the req not in fact been prepared in accordance with the methods and principles set out i Unit 17 Lynes Housekeep accounting records in accordance with section 41 of the Act; and to prep (i) states whether or not any matter has come to the examiner’s attentio 526-528 Watford Waywhich accord with the accounting records and to comply with the accounting req examination to which, in his opinion, attention should be drawn in the report in Londonthe Act have not been met or understanding of the accounts to be reached; NW7 4RS(j) contains a statement as to any of the following matters that has become 2) to which, in our opinion , attention should be drawn to enable a proper underst during the course of the examination, namely, that— accounts to be reached. (i) there has been any material expenditure or action which appears not to be in of the charity; The date upon which this report was completed is :- (ii) any information or explanation to which he is entitled under regulation 32 has 8-Feb-21(iii) in the case of an examination of a statement of accounts which has been pre

e accounts for en prepd [date] whichby thearf n prepared any is exempt ration of the arting Prdir th ended e ndectors ar Auchar ty'Charity a ctred d iting31st i ** ce in s applicableSE)nce with your f cordanc, includinguditements of anrds e year gures for inthefec , eti h ve Marcssuedamounonff U e thos n wctividlaw tied hbyt tshe u to fulfil your xtend to thosnducting of ahe accounting y 2005,ans,except whery t preparedthof ev denc sthe e Charity and i mates ine historical cost ed 31stccountingoCharity and aapplicablef whether to report ourexplanations kept byincludes anMarchand the UK ectors in theStatemf any unusual y applieant legalApril 2005, e d nt of and u andent opinion,cies set out inmispolicies are s trustees ioners for ut in regulation ou.s possible y disclosed.se accoun t hat ing 0 per annum the s comply with rdance with e name of an explanations alifications is set gland & Waleem 2008. ncexplanation e nts give ato give s he nd disclosures the accounts of ircumstances of e Act 1985 aar ndednce to g vethaccount e r cause in 30g d ed the overall much suitabilty in to certificates tees which— c althe Report of i sstatemeReporti n t,g ement should he Statnion whas not k e m also e np t planationsequired in an ommissionersl statements.the financialwe ny hisunerations and the ACCA nation is no t orical cosime withinand t must also be ndent examiner ihe exemptidit opinion on tes have been prcate. tificate. if we become s that the accou ded in the VAT ectives of the contemplates obtain written section 43(3A) o ion should be er in accordance delines which view and are e company for o you if, in our ible to ensure entity with a ccounts. The y has not kept nal body of whihe charity, or Act 1993 (the are the fee in planations we articles of the ry work might uneration and mul a y save the tion 34(3)(b), n audit under ual retainer to he endence , and 1993 Act; to be exempt as income and tion 43 of the 19l's tax return, become aware .7)(b) of that sec proceed with

ed to us. on in connection spect— with—

upplied to rse of the repared under 4 we do not ents of regulation the 1985 Act, th nnection with er than any requ

dance with the S quirements to n the SORP; pare accounts on in connection quirements of n order to enabl

apparent to the tanding of the accordance with

not been afforde epared under se

1

HAWA

Statement of Financial Activities for the year ended 31 March 2021

Layout of the SOFA ,Presentation of Information and Structure of the Statem Adaptation of Formats Unrestricted Restricted

Unrestricted Restricted Funds Funds THIS WILL AUTOHIDE AUTOMATICALLY Notes 2021 2021 SORP 87 states ' £ £ The three columns in the Statement of Financial Activities providing an aggregate tota Incoming resources from generated funds Analysis of incoming resources restricted and endowment funds of a charity will often contain several individual funds Voluntary Income explained in greater detail in the notes to the accounts (see paragraph 76). If any one 31,996 - THIS WILL AUTOHIDE AUTOMATICALLY a group of these funds) is of particular materiality and the charity trustees wish to draw Total incoming resources readers to it, they may add additional columns to the Statement of Financial Activities SORP 118 states : - 31,996 - funds on the face of the SOFA rather than in notes. For exam ~~ple a school may have two~~ 'Incoming resources should be analysed according to the activity that produced the Costs of charitable activities fund columns, one containing the resource movement connected with teaching, anothadopted should follow that given in table 3, in particular grouping separately thoseother costs. Similarly a charity engaged in collecting funds to acquire fixed assets maycharitable activity from those activities aimed primarily at generating funds. 25,979 ' - restricted fund columns, one including all funds related to fix ~~ed assets acquisition and~~ Total resources expended restricted funds. Any additional analysis of this type provided on the face of the Statem 25,979 - SORP 119 states Net incoming resources Activities should make clear the type of fund (unrestricted, restricted or endowment) in ' mix up different types of fund.'In most cases it will be clear which activity generated a particular resource. When the from several activities then it is permissible to apportion the ~~resources between the a~~ before transfers between funds 6,017 - ~~justif~~ ~~This format does no~~ ~~able and consiste~~ nt basis.' t permit for additional columns as described above on Transfers between funds and this information should be given by way of note Gross transfers between fundsThis template shows a summary on the face of the SOFA broken down in det - - THIS WILL AUTOHIDE AUTOMATICALLYthe detailed SORP requirements are set out on that worksheetSORP 88 states Net incoming resources before 'Some charities may also find it informative to their readers to insert additional subtota Disclosure Other recognised gains and losses after row B1c (investment management costs), an addition See the text above the SORP 120 states 'Analysis of transfers between funds ' in the ~~al subtotal “net incoming~~ Detailed schedule 6,017 - charitable application” may be added' Guidance on technical and professional issues out in full the considerations in relation to this. ' Where any apportionment has taken place the method of apportionment sho accounting policy notes to the accounts' This format will need manual amendment to show additional subtotlas. bfwd Actuarial Gains or LosGains and Losses on InvRevaluation of fixed assets for charity's own use ( ie non investment assets)es on Defined Benefitstment Assets Pension Schemes making such amendments not to alter the structure of the template In this template the appropriate accounting policy note is 'Incoming Resourc Net movement in fundsTHIS WILL AUTOHIDE AUTOMATICALLY 6,017 - SORP 89 states See the reference to SORP 217 above On the Trial Balance , enter these figures in the Balance sheet section in revaluation 'Charities should expand the structure, where necessary using notes, in order to prese The net movement in funds referred to above is the net incoming resources as defi 'Gains on revaluation of fixed assets for charity's own use', under restricted or unr view and convey a proper understanding of the nature of all their activities. Charities s Recommended Practice for Accounting and Reporting issued by the Charity Commiss SORP 220 states Enter a surplus as a minus figure on the trial balance, and a loss a a positive figure 19 :- possible, have a clear link between the incoming and outgoing resources and in particu and is reconciled to the total funds as shown in the Balance Sheet on page 7 as require should not be entered here as stated below. Actuarial gaiAny gains a n ds or loslosse s on investment assets (including property investmes on defined benefit pension schemes should be s e parately dnts) shoul analysis. Two examples of this are: losses section of the Statement of Financial Activities (See paragraphgains and losses on the revaluation and disposal of investment as s 430 to 448 – Aets. Realised a (a) a charity running a care home could use the sub-heading “Residential Care Fees” w BenlossIf a negative figure appears below, that means there may have been an impairment e s may be included in a single row on the Statement of Financial Activities. In parfits) (incoming resources from charitable activities) and “Residential Care Costs” in row B2 All activities derive from continuing operations be made.necessary where a charity adopts a “marking to market” or continuous revaluatio expended on charitable activities); its investment portfolio. (b) a charity fundraising through a shop could use the sub-heading “shops” within row Care should be taken to ensure that the figures below are not netted off against The notes on pages 7 to 19 form an integral part of these accounts. for generating funds) and row B1b (fundraising trading costs). should be shown elsewhere. Th s incoming reso rces and reso rces e pended can be linked together b sing sim

4

HAWA Statement of Financial Activities for the year ended 31 March 2021

should be shown elsewhere. Thus incoming resources and resources expended can be linked together by using sim headings in different parts of the Statement of Financial Activities. Income and Expenditure Account If there has been an impairment loss, the figure for impairment should not be shown entered to revaluation reserve on the trial balance as stated above but should The above will require manual amendments to headings etc depreciation under the relevant category of expenditure.

2021 SORP 90 should be reviewed if there is a cessation or commencement of o SORP 218(c) states £ impacts on the accounts. ' revaluation gains or losses (which are not considered to be impairment losses (see p Turnover assets held for the charity’s own use should be included in the section on gains and 31,996 fixed assets for the charity’s own use.' SORP91 States Direct costs of turnover 'Category headings should be omitted where there is nothing to report in both the SORP 217 covers the general parameters as follows :- 25,979 periods. A charity may also vary the order in which it presents activity categor Gains and losses arising on disposal, revaluation or impairmresources and resources expended sections of the Stat ~~ement of Fin~~ ent of fxed asancial Actisets - whet Gross surplus own use or for investment purposes - will form part of the particular fund in which presentational needs.' 6,017 asset concerned is or was held at the time of disposal, revaluation or impairment. SORP 92 states Operating surplus' Where, as a result of adopting the activity approach, (see SORP 93 below) the 6,017 Statement of Financial Activities change from those used in ~~the prior year~~ , comparat Surplus on ordinary activities before tax 6,017 restated in accordance with FRS 18 (Appendix 2).'

Surplus for the financial yearSORP 93 states

6,017

'The classification of incoming resources and resources expended by activity is encour charities preparing accruals accounts. Smaller charities may be excused from ad Gift Aid Payments Important note - legislation recognising that such information is likely to be less relevant to the users of accounts. Where a small charity adopts an alternative appro Although it may appear to fly in the face of everything we ac ach to analysis ~~countants have~~ within the ever been Retained surplus for the financial year Financial Activities certain note disclosures may no longer be necessar FRSEE 2005 at paragraph 12.6 , and the proforma Profit and ~~Loss Account~~ 6, y, 017 for example, in the FRSS All activities derive from continuing operations disclosures relate to the constituent costs of an activity category or where relevant inf effect that dividends should no longer be shown on the face of the profit and loss a provided on the face of the Statement of Financial Activity. These concessions for sma should be debited straight to reserves. Until now dividends would have been shown a summarised in Appendix 5' The notes on pages 7 to 19 form an integral part of these accounts. but this is no longer the case

4

HAWA Statement of Financial Activities for the year ended 31 March 2021

This template deals with small charity exemptions in the following manner :- Statement of Total Recognised Gains and Losses Receipts and payments exemptions - not covered - this template is an accruals te for the year ended 31 March 2021FRSSE - covered in full - this is a FRSSE compliant template. Non FRSSE companies with care 2021 Excess of Expenditure over income before realisation of assets Other exemptions that are not encouraged but are permitted, even though n 6,017 template permits but does not encourage such variations Profit per Profit and Loss account 6,017 Grants for the acquisition of fixed assets - Net Movement in funds before taxation 6,017

Movements in revenue and capital funds for the year ended 31 March 2021

Revenue accumulated funds

Unrestricted Restricted Funds Funds 2021 2021 £ £ Accumulated funds brought forward - - Recognised gains and losses before transfers 9,316 - 9,316 - Closing revenue accumulated fundsTHIS WILL AUTOHIDE AUTOMATICALLY 9,316 - Insert the actual transfers below and they will automaticall ~~y transfer to other cells in~~ between funds that do not involve revenue reserves will have to be entered manually. THIS WILL AUTOHIDE AUTOMATICALLY The purpose of the transfers between RevThe purposes for which the designated funds have been established are describe Give the details required by rule 129 of the SORP nue Reserves,Designated Funds and Fixed iIaccounts n the notes to the accounts.sert the actual transfers to/from designated funds in the line below and they will The totals on all the funds will have to be manually reconciled to ensure that all Fixedother cells in the templatasset funds repres e nt the written down value of tangible fixed assets subject s Reconciliation of Funds entered correctly - see the proof at the bottom of the Trial Balance. They should a Funds Funds Funds fixed asset funds) plus the balance of the written down value of tangible fixed asset schedule in the detailed P&L funds). Therefore the total of tangible fixed asset funds should agree to the written dow THIS WILL AUTOHIDE AUTOMATICALLY assets 2021 2021 2021

SORP 74 states

Revenue accumulated funds The Statement of Financial Activities should reflect the principal movements between - 9,316 - Proof line will autohide when the above balances on all the funds of the charity. It should be analysed between unrestricted The funds transferred to capital reserve represent those restricted funds expended on 9,316 - income funds and endowment funds (permanent and expendable combined). funds . Refer to the accounting policies note, note number 1 agree to the Balance Sheet

The notes on pages 7 to 19 form an integral part of these accounts.

4

ent, and

Total Funds

2021 2020 £ £ al for unrestricted, s which will be of these funds (or 31,996 26,079

w the attention of

to display such 31,996 26,079 ~~o unrestricted~~ e resources. The analysis er welfare and e resources generated by 25,979 16,788 y have two ~~another for other~~ ment of Financial 25,979 16,788 n the title and not e resources are generated ~~activities on a reasonable,~~ 6,017 9,291 n the face of the SOFA

tails on 'DetailPL2' and -

als. For example, e to the SOFA ~~g resources available for~~ 6,017 , which sets 9,291 uld be disclosed in the be very careful when 9,291

es'

6,017 15,308

n reserve for the heading fined in the Statement of restricted as appropriate. nt a true and fair should, where sion for England & Wales . A loss on impairment ular activity disclosed in the gains and ed by the said statement. ld be included under the Accoand within row A2 un ting for Retrealized ga ns and i rement rticular this approach willloss and enquiries should (resources on approach in relation to A1b (activities impairment losses which milar or identical

4

milar or identical

n here and should not be be shown as additional

perations, and if FRS3

paragraphs 267 - 272)) on losses on revaluations of

e current and proceeding ries within the incoming ther held for the charity’s ivities to meet its own the investment or other

categories shown in the tives will also need to be

raged for all dopting this approach by f small charity

Statement of n taught, the where these SE, have the formation is account, but ller charities are at this point,

4

-

mplate s should use this template not good practice - this

Total Funds

2021 £

• 9,316 9,316 9,316 ~~n the templat~~ es.Transfers

ed in the notes to the Asset Funds is described automatically transfer to the transfers have been to restrictions (restricted also be reconciled to the s (designated fixed asset Funds wn value of tangible fixed 2021

n the opening and closing 9,316 n capital projects, and as a income funds, restricted (26,928) -

4

HAWA Company Number Balance Sheet as at 31 March 2021

Intangible assets Notes 2021 THIS WILL AUTOHIDE AUTOMATICALLY £ Fixed assetsSORP 244 to 251THIS WILL AUTOHIDE AUTOMATICALLYIntangibl assets Introduction Current assetsInvestment assetsProCuTangible Fixed Assets (other than Investments)Heritage assetsrent Asramme Relaets ed Investments Cash at bank and in hand 244SORP 252 statesTHIS WILL AUTOHIDE AUTOMATICALLY The balance sheet provides a snapshot of the charity’s assets and li 36,494 Creditors:- accounting year and how assets are split betweIntangible fixed assets should be included in th THIS WILL AUTOHIDE AUTOMATICALLYCurrent Liabilities and long term creditors e balance sheet in accordan the different types of fu n ds.ce always include all of the assets and liabilities of a charity, nor attach an up-to-dIntangible Assets” (see appendix 2 FRS 10). SORP 252 states Some heritage assets (see paragraphs SORP 308 to 312 state Intangible fixed assets should be included in th The requirements of the SORP are detailed and THIS WILL AUTOHIDE AUTOMATICALLY14 6 279 to ~~294~~ ~~complex. Rathe~~ ~~e balance shee), or contin~~ gent liabilities (se r than include th t in accordance may be omitted. Where such assets or contingent liabilities exist and are not inc Insofar as FRS10 may conflict with the FRSSE this is covered by the acc308 Intangible Assets” (see appendix 2 FRS 10). have relegated the detailed text to the library page, and it can be accessed fr Programme related investments are defined in the Glossary (GL 47 ) Provisions for liabilities and charges details should be provided in the notes to the accounts.of preparation 31 the notes reproduce normal accountancy concepts, but the following should be lo separately within the investment asset category from SORP 317 to 320 state 3 Current assets other thanof accounts' current asset inves t hose investments intendments (see paragraph ( A note for this pu 36,494 template)Insofar as FRS10 may conflict with the FRSSE this is cov Para 254 - distinction between heritage and other assets recognised at the lower of their cost and net realisable value.financial return for the charity. ~~ered by the~~ acc Total assets less current liabilities 245 Para 309 of preparation of accounts' 317 Programme related investments should generally be included in the balance s 2 255 - dealing with grants for fixed assets and donate Liabilities should normally be recognised at their settlement value. In the caThe objective of the balance sheet is to show the resources available to the 9579 to 293 which deal with defintions and vacovers the requirement to deal separate y w th current asset investme l uat i ons an d genass e ts (these arral principle36,494 are freely available or have to be used for specific purposes because of legal Para 29 Disclosure template) invested less any impairments (in the case of equity or loans) and any amounts rthe amount that an entity would rationally pay to settle the obligation at the 4 which deals with disc6 to 298 deals with va uations, and when and how the valuations should l osure Creditors:- may also show which of the resources the trustees have designated for specific the accounts 314 Paras 256 and 267 to 272 cover impariment and write down loans). Impairments should be charged ttransfer it to a third party at that time and may therefore involve discounting (se Where there are debtors which do n o t fit into any of the following catego resources expended on charitable amounts due after more be necessary to read the reserves policy and plans for the future in the Tru Para subsequently convadded to or adapt This template does not include the required accounting policy note as 257 deals with how to allocats 299 to 307 deal wi e rted to a grant would be charged to charitable acd as appropriate to the type of debtor or credi th an one y disclosure requirements e assets between investments and assets usar 0 (250) t or and nativities. - paragraphs how to deal with assets of a mixed kind 310Provi should be analysed in the notes to the accounts between shor diverse, and if necessary a note should be draftedDisclosure Where a gain is made on the disposal of a programme rela ions for Liabilities and Charges 55(a) and 57 ) to gain a fuller understanding of the availability and t term and longed investment, funds. Provisions for liabilities and charges Para 264 to 266 deals with revaluations of assests by This template does includes the basic required disclosures, but they318 e ar) giving amounts for the following: set off against any prior impairment loss or included as a gain on dispoWhere there are creditors which do not fit into any of the following categ 0 - THIS WILL (a) trade Para 273 to 278 deal with the disclosure requirements dependent on circumstances charity’s own use and recorded under “other incoming resources” (see paragrap Insofar as FRS11 and FRS15 may conflict with the FRSSE this is cove added to or adapted as appropriate to the type of creditor and nature of the cdebtors; AUTOHIDE AUTOMATICALLY Structure of the Balance Sheet policies in' (b) amounts due from subsidiaryshort-term and long-term creditors should each be separately analysed in the n Defined Benefit Pension Scheme Asset/Liability246DiSORP 321 to 329 state (c) other debtors; Insofar as FRS11 and FRS15 may conflict with the FR following: closure Table 7 Basis of preparation of accounts' sets out the format and the asset, liability and fuand associated undertakings; ~~nd categories o~~ ~~SSE this is c~~ ove f th Net assets including pension asset / liability247311policies in' (d) prepayments and accrued inc(a) loans and overdrafts; THIS WILL HIDE AUTOMATICALLY The assets and liabilities are analysed within the balance sheet according tWhere the use of programme related investments forms Basis of preparation o mef accounts' . a material par 36,244 t o or liability as set out in 315 the amounts form a material part of the investment assets (b) trade creditors; 21 Expenditure resulting from provisions that arise due to a legal orWhere long term debtors are material in the context Table 7 . The balance sheet should also distinguish, as of the charity, the nthe total net currconstruc total funds held as unrestricted income funds, restricted income funds a s 12) shou d(c) amounts due to subsidiary and associated undertakings; Share CapitalIf there are no pension assets or liabilities change the text in the bottom how all changes in carrying values of programme related investmeeparate l y shown in be accoun t he balance sheet (sed for in the Statem e nt of Financial Activities ie paragraph 249 ) . Note that alt n ts, includi accordan Unrestricted income funds Distinctions between funds held as permanent and expendable endowment anand reconcile the 163 template permit this analysis, the Balance Sheet itself will need to be m (d) other creditors;. Such provisi o pening and closing carrying values of sucns should be appropriately analysed in t 15,308 h e balanc investm e sheet bents. Designated revenue funds may also be shown on the face of the balance sheet. The order in which t 312for this one year THIS WILL HIDE AUTOMATICALLY (e) accruals and deferred income. SORP 330 to SORP 322 state presented within the balance sheet (investments and indicate the charit 316319 22 The notes should also an Where investments are held as current assets the same disclosure is require The amount recognised as a liWhere a charity is acting as an intermediary agent (as opposed to a cusand those falling due fter one year. a lyse programme related investments held betw ab Section E of Table 7 le objectives, programmes or projecility should be the best estimate of he ex (ie not in this section) - ) may be varied to t s the i Unrestricted capital fundsTotal unrestricted funds charity’s presentational preference. investments the present obligation at the balance sheet date or to transfer it to a third SORP 333 states330 organisation, as described in paragraph 248 Revaluation reserve calculating this amount consideration should be given to:in accordance with FRS 17: Retirement Benefseparately identified in the A number of charities, Any asset or liability derived from a surplus or deficit in a defined benefit pCharities may choose to adopt a columnar presentation of its assets, (see paragraphs 299 to 307 eg I n dustrial and Prov dent Socieotes to the accounts but no 112 ). , then any assets held and the assts) should be included within this 20,936 t ies, are co included i 36,244 n s t he balanituted w balance sheet. Such a presentation shows the asset and liability categories an (a) the timing of the cash flows;number the face accounts should provide suffici of the balance sheetcharities incorporat . e d as companies under thnt detail so that the read e r of the accounts u Companies Act ma Restricted income fundsTHIS WILL HIDE AUTOMATICALLY each fund group in a similar way to the Statement of Financial Activities showi(b) future events and uncertainties which may affect the amount required to sett 331 and nature of the transactions between the charity, the funding organisation andUsually this iA surplu s a nominal amount (such as £10) and although thisor deficit in a defined benefit scheme will normally give rise to ais legally “ow n resources expended by type of fund. This presentation is not mandatory, bu 323 320 ou Pension reserveSORP 334 states present the required analysis of assets and liabilities by categofuture payments may have a reduced value in today’s terms (cis the principal as described in paragraphforms part of the unrestricted funds of the charityaccrue to a restricted fund are set out in paragraphs n ownrestricted funds of the reporting charity. The circumstances in which the peThWhere provisions are accrued in the current financial year but are to be p e details in paragraprs benefiting from t h is share ownership effectively m 319 should also be provided wh 113 . NeverthelesHowever, i 433 to 4 e ~~n this case the~~ ~~42 s, company lawurrent value). W~~ ry of fund. Wheans that money cn the charity is ac ~~.~~ arereh Total charity funds charity does not have funds of a particular category, the column related to that Charities that are companies are required to report, in respectincluded in the balance shematerial, the outflow of resources required to settle the obligat 332 share capital to be shown s THIS WILL HIDE AUTOMATICALLY If this columnar presentation is not adopted then the assetbetween the historic cost of fixed assets (including inve The accounts have been p(i) ensuring that the cha discounted to their present value. The discount rate used should reflect the cRecommendations on the app r ity keeps proper ccounting records which comply with the reqepared in accord e parate y in the balance sheet.t. l ication of a nce with the special provisions relating to s FRS 17 to chariti s tm an ~~ent assets)~~ ion at the bala ~~d liabilities (eges and the req~~ of their unrest 36,244 ~~and~~ nce invuir t disclosures are set out in a separate section on accounting for retirement benrevaluation resecurrent assets) of the Compa(ii) prepari time value of money and the risks specific to the provision. The interest rate eith 448. SORP 335 states funds in the notes to the accounts (see financial year and of its surplus or deficit for the financial year in accordance , and wh borrowing or investment could be an appropriate discount rate. n ies Ag ac r ve.epresenting each category of fund should be summarised an c ounts which give a true and fair view of the state of affairs of thet 1985. paragraph 75(a)) . I t is this approa When there is a surplus or a deficit on a defined benefit pension scheme th requirements of the Charities Acr relating to template324 Insofar as FRS17 may conflict with the FRSSE this is covered by the 249 liability being recognised by the charity, the recognition of the pension asset The requirement to obtain an audit under section 477 of the Companies Act 2006 and that Further details of the assets and liabilities should be given in the balanceThe best estimate of the liability should be reviewed at the balance sheet da directors are satisfied that for the ye a ccounts, so far as applr in question the char table company was i cable to the charity. appropriately. If a transfer of resources is no longer needed to settle the obligatio Basis of preparation of accounts'creation of a pension reserve. This reserve will be negative in the case of a liabaccounts. This analysis should enable the reader to gain a proper appreciation of required the company to obtain an audit of its accounts for the year in question in acco the liability no longer representing an obligation should be deducted from the resliability relates only to unrestricted funds then this reserve will be part of unrecharacter. For example, long-term debtors should, where the total is material, be Act. category to which it was originally charged in the Statement of Financial Activitie the criteria set out in paragraphsthe balance sheet - otherwise the total amount of the category (see paragraph 325 The director(s) acknowledge their responsibility for complying with the requirements o Where a charity has earmarked part of its unrestricted funds for a par 438 to 442, are met and the pension ass the notes to the accounts.restricted fund, then the pension reserve will be part of that restricted fund. intention to expend funds in the future is not recognised as a provision for a lia respect to accounting records and the preparation of accounts. 250 If for any category of assets (row in Table 7 - the balance sheet) there are earmarked amounts may be recorded by setting up a designated fund (see para and prior year then no entries need to be made on the balance sheet and the he The accounts have been prepared in accordance with the provisions in Part 15 of the Co 251Disclosure companies subject to the small companies regime and in accordance with the Financial As explained in paragraph 4(b) of Appendix 3 , expenditure may be inc receipt of restricted income, possibly leading to a negative balance on a specific 326 Entities ( effective January 2015). Particulars of all material provisions for liabilities and charges accrued in the are material they should be shown separately as negative balances and not s should be disclosed in the notes. Similarly, particulars of all material commitm positive balances on the fund category in the balance sheet. Therefore the bal charitable projects should be disclosed if they have not been charged in the acco ABSHIR MOHAMED positive and negative balances on restricted funds. 327 These particulars should include the amounts involved, when the commit Trustee and the movements on commitments previously reported. Particulars of all other commitments should also be disclosed (eg operating leases). Approved by the Board on 14th January 2022 328 The notes should distinguish between those commitments included in the

6

iabilities at the end of its . The balance sheet wiwith FRS 10 “Goodwil and l l not date valuation for all assets. ee paragraphs em in the balance sheet we with FRS 10 “Goodwill and 340 to 348 ) 7 cluded in the balance sheet, counting policies in om the link above. Many of ) and should be disclosed ' Basis ded primarily to generate a ooked at in detail: rpose is available in the 296) should normally be counting policies in ' Basis es ase of provisions, this will be ents as defined e sheet at the amounte charity and whether these re fully provided for in this restrictions on their use. It d be obtained and shown in e balance sheet date or to repaid (in the case of c future use. It will normally ee ories, the headings may beactivities. Similarly a loan paragraph 323 ). ustees’ Annual Report (see ture of the charity. Debtors ed for charity purposes and the requirements are so term (after more thanplanned use of the charity’s then the gain should either one osal of fixed assets for the y may need amplifying , ories, the headings may be ph ered by the accounting charity. The totals for both 147 ). otes giving amounts for the he balance sheet. ered by the accounting to the category of the asset f the work of the charity, or s a minimum, between, the ctive obligation (arent assets, they otes to the accounts should s hould be per FRS and as endowment funds. nce though the notes in this m line to ing any impwith par ' Net assets' a irment losses, graphs 148 to nd held as designated funds manually altered to allow etween liabilities due within the categories of funds are ween equity, loan and other accommodate an individual xpenditure required to settle ed as for fixed asset stodian trustee) for another investment supports. d party at that time. When sociated liabilities should be pension scheme (calculated liabilities and funds in the withs category and disclosed on nce sheet. The notes to the a share capital. A small nalysed in columns between ay also have share capital.nderstands the relationship ing incoming resources and d the rec n tle the obligation. assers qu ty”, the e t or liability within the i pient of the funds.prohibition t using it ensures charities paid over several years then e a ension asset or liability may contributed for share capitalcting as an intermediary but here the effect isassets and liabilities will be equires trice sheet date should beca te gory of fund is omitted. d funds, the difference nefits in paragraphs red accounting methods and their r small companies within Part VII vestmcurrent assessments of the quirements of the Charities Act e valued amounnts, fixed asse 430 to t s, net as a her for the cost ofnd analysed between those e charity as at the end of the hich otherwise comply with the ach which is used in this hat results in an asset or a entitled to exemption from the e accounting policies in e sheet or the notes to the t no member or members have ate and adjustedor liability will result in the ' on then the amount of bility. If the pension asset or f their spread and ordance with section 476 of the sources expended e separately stated ines.estricted funds. If, however, set/liability is allocated to a 314 ) should be analysed in of the Companies Act 2006 with rticular future purpose, this ability in the accounts. Such no amounts for the current agraph 68). eadings can be omitted. ompanies Act 2006 applicable to curred in anticipation of the Reporting Standard for Smaller c fund. Where such balances e balance sheet as liabilities simply be netted off against ments in respect of specific ounts.lance sheet may show both tments are likely to be met r material binding

e balance sheet as liabilities

6

HAWA

Notes to the Accounts for the year ended 31 March 2021

1 Accounting policiesTHIS WILL AUTOHIDE AUTOMATICALLYNote about the ba is of accounts preparation. FRSSE or FRSs ? Basis of preparation of the accounts Firstly it should be noted that International Accounting Standard Before proceeding review the detailed advisory note in the first section of t the purpose,scope and application of the SORP 2005, the application of the compliant accounts, until a revised SORP is issued for the purpose (a Information , replacing text and layout.The financial statements have been prepared in accordance with all applic There are two alternative texts in the first accounting policy note. On accounting standards, as modified by the Statement of Recommended Prac Period of accountsfrom the text box. for Accounting and Reporting issued by the Charity Commissioners for Englan Wales, effective April 2005 (revised June 2008). The accounts have been dr Ensure that the duration of the current and prior period is shown in the follThe SORP permits the adoption of the FRSSE, but where the SORP is in conflic up in accordance with the provisions of the Charities (Accounts and Repo p eriod from ..... to), in revails. In many secti o ns of the SORPrder to comply with Para 31 of the SORPspecific reference is made to specific F Regulations 2008 and the Companies Acts, and include the results of followed by the accounts in preference to the FRSSE, in order to comply w charity's operations which are described in the Trustees' Report, all of which paragraph of Alternative 1. Basis of preparation of the accounts and Accounting standards continuing. In this template where such conflicts have been identified, then the disclo SORP60 states specific FRS. Accounts intending to show a true and fair view must be Advantage has been taken of Section 396(5) of The Companies Act 2006 to a assumption and the accruals concept and provide information that is rele the format of the financial statements to be adapted to reflect the special na understandable Therefore these accounts are FRSSE compliant except where overridden by th of the company's operation and in order to comply with therequirements of (see Appendix 2: FRS 18 ). SORP. Accounting convention Turnover represents the invoiced value of goods and services supplied by thIf the FRSSE is not adopted then Alternative 2 should be used.The accounts w The company has taken advantage of the exemption in Financial Reportax and trade discounts. The fin SORP61 states in view of the complexity of the range of FRSs., specific disclosure checkliStand a rd No 1 froncial state m In meeting the obligation to prepare accounts showing ents are prepared, the requirement t o produce a cash flow n a going concern ba s is, under the histtatement. accounts should follow the standards and principles issued or adopted by the whether any further disclosure is required to meet the requirements of any sp its predecessors or successors and set out in: must be amended to meet the requirements of the specific FRS, but care sho The particular accounting policies adopted are set out below. (a) Statements of Standard Accounting Practice (SSAPs); amendment does not remove a SORP disclosure requirement. Incoming Resources (b) Financial Reporting Standards (FRSs); Incoming resources and investment income MANDATORY (c) Urgent Issues Task Force abstracts (UITFs); Incoming resources are accounted for on a receivable basis. and in addition take note of: THIS WILL AUTOHIDE AUTOMATICALLY All incoming resources are included in the statement of financial activities wh (d) The Interpretation for Public Benefit Entities of the Statement of Principles income and the amount can be quantified with reasonable accuracy. The follo SORP362 states 'The policy for including each type of material incoming re categories of income: SORP 356 to 360 normally be on a receivable basis but may need further details in some cases give general requirements about accounting policies and Voluntary income is received by way of grants, donations and gifts and is inccontext of the accounts. (a) a description of when a legacy is regarded as receivable; SORP 361 requires an explanation of all accounti Financial Activities when receivable. Clothing and other items donated for reareas of the accounts. (b) the basis of recognition of gifts in kind and donated services and facilities, are included as incoming resources within activities for generating funds when items are not included in the Statement of Financial Activities and the method Except as described under the 'Deferred Income' accounting policy all gThe sections below headed ' (c) the basis of recognition of all grants receivable, including those for fixedBasis of preparation' and ' Accounting Convention purchase of fixed assets , are recognised in full in the Statement of Financia analysed between the different types of incoming resources; they are receivable. The text in red in the sections below should only be included where t (d) whether any incoming resources are deferred and the basis for any deferr (e) the basis for including subscriptions for life membership; Compliance with Statement of Standard Accounting Practice 19 (f) whether the incoming resources from endowment funds are unrestricted o MANDATORY IF APPLICABLE Bank interest is included in the income and expenditure account on a receiva (g) whether any incoming resources have been included in the Statemen THIS WILL AUTOHIDE AUTOMATICALLY this year and no other investment income was received. expenditure and the reason for this.'

SSAP 19 requires this disclosure if applicable. See SORP 131 and 136 also require the basis of valuation of donated good SORP 359 in addition described Insert suitable text. Give full details and justification. Title of note may require Departure from SORPS,FRSs or SSAPsAccounting f Give full details and justification ferred inc r branchese In accordance with the Statement of Recommended Practice for Accounting a MANDATORY IF APPLICABLEPolicies relating to investment income including interest and rents s the Charity Commissioners for England & Wales grants received in advance THIS WILL AUTOHIDE AUTOMATICALLYmore specific heading immediately below. specific accounting periods or alternatively which are subject to conditions outside the control of the charity or wh SORP 359 In addition, deferred income may be more properly dealt with under 602(d) requires this disclosure - se requires this disclosure - s e r text of SORP for detailed requiremene e ext of SORP it is uncertain whether the conditifor detailed requir m accruals basis to the period to which they relate. Such deferrals are shown later on in the accounting policies involved are shown as creditors in the accounts. See Working Checklist in Checklist worksheet The text in red in the sections below should only be modified as relev Also reference should be made to SORP 105 to SORP 113 which consider Recognition of liabilities 114 Recognition of liabilities requires the reasons for deferral to be disclosed and depending on whet a consequence of a policy the reasons may be dislosed here or in the relevan Liabilities are recognised on the accruals basis in accordance with normal MANDATORY the accounts or both where necessary in accordance with the guidance given in the Statement THIS WILL AUTOHIDE AUTOMATICALLY Accounting and Reporting (revised June 2008) issued by the Charity Commiss The text below should be modified if required SORP363 (a) states

HAWA

Notes to the Accounts for the year ended 31 March 2021

SORP363 (a) states Resources Expended The policy for including items within the relevant activity categories of resou The policy for the recognition of liabilities including constructive obligation are recognised as soon as there is a legal or constructive obligation commit liabilities are included as provisions, the point at which the provision is consid MANDATORY resources. basis of any discount factors used in current value calculations for long term THIS WILL AUTOHIDE AUTOMATICALLY This is particularly applicable to grants, the policy for which should be separa In particular the policy for including items within costs of generating fund SORP 363 States these policy notes may (where relevant) include: governance costs is The text below should be modified if required

(b) The policy for including items within the relevant activity categories of Costs of generating funds given. In particular the policy for including items within: Where incoming resources have related expenditure (as with fundraising (i) costs of generating funds; incoming resources and related expenditure are reported gross in the SoFA.

(ii) charitable activities;

----- Start of picture text -----
Charitable activities (iii) governance costs.
(c) The methods and principles for the allocation and apportionment of all cos Donated services and facilities are only included in incoming resources (wit
categories of resources expended in (b). This disclosure should include the resources expended) where the benefit to the charity is reasonably qua
based on staff time, staff salaries, space occupied or other. material. Tha value placed on these resources is the estimated value to the ch
facility received.
Where the costs apportioned are material, then further clarification on the m
MANDATORY if there are such items see paras 215 to 217 of SORP Taxation T FixM As Provision is insert Unrealised and rStocks and workInalienableTaxa On 1st April CapHer rahe char by the vestments held by the char sets h o fix n thod of consol sactions i d atage assetsion su l grants eit charity for it se dld u able text y operatasset made assets n and depreciat foreign curde1999, with re finance l in progress for deferred taxation using the s a defingi aliseddati s ter existed in the reccha n r gains ienci et ablehe approval nd investment p asd contribution on es a pu y and investment pr nd hire purchase con r e recordposes has b o prdsf e nsion scheme. Cdth operties ofat the ra e Chen et tothe unincorp l i a rity Commissionerbility method to take t perty e rulir a cts, which are thno on rated charityntributioneg atcharitable the dat s a,
Realised gains and losses are included in the accounts on the date at which a c necessary, including the proportions used to undertake the calculations insert suitable textribetween the incid acc with the MANDATORY IF APPLICABLE unincorpo MANDATORY IF APPLICABLE s sets andks and ount umul a provis ons f the SORPted costs they b r ewards of ownership of the asated charity , the Anfield Citizliab i lities e ancnce of incom o me payable in accordance with th d enominatdepreciation on a e d in foreign cuand expthis asset has sen et have passsets stolen inditus Advice Bureau, r rencies beene for taxation and actransfe e rules ofd to th a re t bu r glanslrw ea Charity, are d the sry. Ass ransferre at ed a writ c heme.ountin.th t th e n a
As a registered charity, the company is exempt from income and corporatio a balance sheet darelated insurance moniesinvestment THIS WILL AUTOHIDE AUTOMATICALLY that a liabil ty to THIS WILL AUTOHIDE AUTOMATICALLY nd depreccquired the assets ia ted over thessets, and the detai s are t axe. All d fferenc a tion is unliknd l abilities of i r ushav e fu b lel en y to crysts are takeives. t hat chreated as a disshow an llr ty at the book value ato in i se. the p appropriate noterofit osal and loss account.have been cred s at that .
Unrealised gains and losses are computed by reference to the market value of SORP 175 and 176 state income and gains are applicable to charitable purposes only. Value Added Taof the charity was credited to the reserves in the books of this company. Appendix 2.5 of the SORP provides an appropriate interpretation oSee SORP GL34 for the definition of an inalienable asset and the discORP 364 states
compared to the brought forward cost or valuation, and gains and losses arisi
company , and is therefore included in the relevant costs in the Statement of Th . SORP 366 states should be291 and 292. Inalienable assets will either be included entirely in The policy for capitalisation of fixed assets for charity use should be See SORP e interest element of the is section 9957 followed.statesGL32 for the definition of a hstates need not be va- - The basis of inclusion in the Statement of Financial ActiThe basis for inclusion of stocks and work in progress r ental obligations is charged ied except in the unusual si ritage asset t o the profit and losuation where(in previous SORP stated inc the c
netted off. 175 . The accounting policy notes should explain the policy adopted for the a
leas Where(a) whether each clasgains and losses on investments should bunsold or unused good subj heritage assets and other asset groups. The basis for classification s e and represct to tax - r consolidated account e quired in respect of VAT by nts a constant proportion of the balance of capital repaymen s and mof a s se r ate is included at cost, valuation or revaluatiorials should b prepar e statd, SORP 370 (e) the policy notes should state th e d. given).
MANDATORY if there are such items see paras 215 to 217 of SORP Funds structure policy activities and any estimation technique(s) used to calculate their apportionme Finance and operating leases wh This states Management aThe policy for i SORP 364(c) states unds structure policy ich subs diaries or associere appl i cable; n cluding investments in the accounts should be given. This shod administr at ion of thed entiti e charitys are included and excluded from the c
176'MANDATORY IF APPLICABLE Where any fundraising activity is identified as meeting the criteria o N ALL CASES
need Rentals paid under operating leases are charged to income on a straight line b The standard text below reflects normal accounting treatments (b) the value below which fixed assets aA gif text below shou t o be modif of a tang ble fixeded for the valuation of: d reflect normal accounti asset (or g r e not capitalised;ant to purchase) is recognised in g treatments in this c
THIS WILL AUTOHIDE AUTOMATICALLY paragraphs 172 to 174) and part of the costs of the multi-purpose activ '
ent tlement to(a) Management and administration costs represent expenditure incurred in th (c) see separate note above re heritage assets, but this note should The policy for capitalisation of fixed assets for charity us i nvestments not listed othe asset. A n y restriction on the a recognised stock exchangasset’s future use is recogni e ; should be stated in
The charity maintains a general unrestricted fund which represents funds w activities then the policy for the identification of such multi-purpose cos
restricted fund rath assets, organisational administration and compliance with charitable and stat (b) investment prop (d) and (e) in relation to heritage assets er ties; and than deferring the recognition of the asset. Any resid
discretion of the trustees in furtherance of the objects of the charity. Such fun SORP 368 tates accounting policy notes together with the basis on which any allocation to cha This note is required by SORP370 (d) and in accordance with the FRS ( from, for xample, the sset’(cdc) investments in subsid ) the rates of depreciat on pplying to each class of fixed wheth e r or not herit ai ge ary undertakings. as sets are capitalised and if not, the reason why future sale, is disclosed as a sset; contingent liabiand
finance both working capital and capital investment. 'A brief description should be given of the different types of fund held by the
(e) the polictriggercost/benefit reason etc: see paragraph 283 to 287), specifying the acquisitiorepa y ment of the grant becomes probable in which case a liability for with respect to impairment reviews of fixed assets.
SORP 212 states any transfers between funds and allocations to or from designated funds. Trassets'
Restricted funds have been provided to the charity for particular purposes, where there is a release of restricted or endowed funds to unrestricted fundThe accounting policy notes should explain the nature of costs allocated to t
SORP 275 statesThe accoun ing treatment for this has sometimes caused difficulties
board of trustees to carefully the monitor the application of those fund unrestricted to other funds.'analysis may be provided within the notes to the accounts of the main item
The methods of depreciation used and useful economic lives or depreciation viewed by selecting 'Worked examples for this section' which should SORP 294(c) requires
restrictions placed upon them. this category where it is considered to provide useful information to the users
accounting policy notes (see paragraph 364).accounting policy notes explaining the charity's capitalisation policy in rela
SORP 369 states '
measurement bases adopted for their inclusion in the accounts.
A fixed asset fund is maintained which represents the written down value of t The text below should be modified as required
'
divided into a restricted fixed asset fund representing the written down value The policy for determining each designated fund should be stated.'
Other aspects of heritage assets (eg depreciations) are included w
restrictions, with the balance being in a designated fund representing the w Note the exemption for small charities not subject to a statutory au
policy note
assets free of restrictions. The detailed operation of these funds is descri analyse by activity, but may analyse by resource classifications to
policy ' Capital grants' advantage is taken of this exemption, this policy will not be necessar
----- End of picture text -----

There is no formal policy of transfer between funds or on the allocation of other than that described above.

Any other proposed transfer between funds would be considered on the partic

2 If upon winding up or dissolution of the ch Winding up or dissolution of the charityPe insert suitable textAs a result of adopting the activity appro Legacies insert text s on cont ibuti ns, foreign xchange and exceptional items a ch required by the Statementrity there remain any assets, liabilities, the assets insert text MANDATORY IF APPLICABLE Accounting and Repo N ALL CASES r epresting ( e ffective April 2005) (the SORP) isnted by the accumulated fund s hall ued y b e transfethe Cha If upon winding up or dissolution of the charity there remain any assets, after bodies having similar objects to the charity. THIS WILL AUTOHIDE AUTOMATICALLY & Wales, the comparative figures for the prior period have been restated i and liabilities, the assets represented by the accumulated fund shall be formats required by the SORP. charitable body or bodies having similar objects to the charity. SORP 128 tates This note is required by SORP370 (a),(b), and (c) and in accordance w Disclosure Profit for the year . Where material, the accounting policy notes should distinguish between the Revenue Turnover from ordinary activities for pecuniary and residuary legacies and legacies subject to a life interest hel THIS WILL AUTOMATICALLY AUTOHIDE and after charging:These are the mandatory disclosure requirements

5

HAWA

Notes to the Accounts for the year ended 31 March 2021

These are the mandatory disclosure requirements

Rentals under operating leasesDepreciation of assets held under finance leases and hire purchase Remember that 'turnover' in the context of a charity means 'grsoss contracts Cost of Audit, Independent Examination or Reporting Accountant SerTrustees indemnity insurance Number of trustees to whom benefits accrued under money purchase receipts and income received in kind, and this may cause an entity t and other Financial Services pension schemes Funds belonging to the charity have not been used for the purchase of insur limits This will Automatically autohide loss arising from the neglect or defaults of its trustees,employees or THIS WILL AUTOHIDE AUTOMATICALLY trustees,employees or agents, against the consequences of any neglect or THIS NOTE MAY BE USED IF INSURANCE HAS BEEN PAID FOR TRUSTEES A expended on such insurance was as indicated in the above schedule. SORP 239 states REQUIRE MODIFYING IF ONLY TRUSTEES OR ONLY EMPLOYEES ARE INSURED. The notes to the accounts should disclose separately the amounts payab Expenses paid to trustees or persons connected with trustees examiner or reporting accountant in respect of: This was a formal requirement of the SORP 2000 but is not explicit in the 20 3 Statement that no expenses were paid to trustees or connected pers The If full provisi (a) the costs of their respective external scrutiny; and good practicenature of the expnature f the expenses was o n had b e en made for dnses reimburs INSERT e d to trustees was …… and ferred taxation for the year, the taxatio, and the number of rustees to w t he number o THIS WILL AUTOMATICALLY AUTOHIDE made was (decreased) as follows: (b) other financial services such as taxation advice, consultancy, financial adv INSERT No expenses were paid to trustees or persons connected with them. IF , i n the alternative, NO SUCH INSURANCE HAS BEEN PURCHASED THEN T 231 Where a charity has met individual expenses incurred by trustees for s In the TB for this template there is provision to show 'Other fees paid Nothing paid of this category either by reimbursement of the trustee or by providing the trustee with an al 4 Detailed analysis of certain transactions required by the 2005 revisio 'Other accountancy fees ' ( ie paid to some other firm and not the aud a third party, the aggregate amount of those expenses should be disclosed or reporting accountant ). This latter item is not to be disclosed - it of Recommended Practice for Accounting and Reporting issued by the note should also indicate the nature of the expenses (eg travel, subsisten auditors, independent examiner and reporting accountants for othe Commissioners for England & Wales (effective April 2005) number of trustees involved. disclosed 232 Sometimes trustees act as agents for the charity and make purchases o Various items which are required by the 2005 revision to the Statement of Accounting and Reporting issued by the Charity Commissioners for England & for this expenditure, eg payment for stationery or office equipment. Such e The text Other professional fees paid to auditors should be changed to to be disclosed in the notes to the accounts are set out in the Detailed Sch services provided by a trustee and there is no need to disclose it. Likewisindependent examiner ' or Other professional fees paid to Reporting Accounta routine expenditure which is attributable collectively to the services provided Financial Activities and its appendices on pages 7 to 19, which should be of a room for meetings or providing reasonable refreshment at the meeting. notes. Note the following:233 Where the trustees have received no such expenses, this fact should be s Material legacies that have been notified but not included in the SOFA Insert the statement required by the SORP or delete this text to autohide The company had no endowment funds in the y Inv stment Income the text required by SORP 167 here. This istext required by SORP 189 to 194 her . This is mandar enman d ed 31st March 200a ory and cannot tory and can 5 Staff Costs and Emoluments March 2000nochasuppoa) The opening and Deferred Incoming Resources & Reserves Third party funds ( This would include a client's account)Staff Costs and EmolumentsAnalysis of support costs Independent Examiners deferrals ir t costs. itable expenditure costs. charitable expendgr cluded in If so delete this text to autohide.This note can be nts closing funds above are represented by the asclosing fun cre only relate to unincorporated charities ditors relate to those grants and donations speci s above are represented by the a If so delete this text to autohide.This notur s sets and liabets and liabil THIS WILL AUTOHIDE AUTOMATICALLYdetailedanalysis note above b) intermedia THIS WILL AUTOMATICALLY AUTOHIDE a principal as an i specif Reporting Accountants c pe analysis note above and/or r y agent but not included in the Balance Sheet as iods an termediary and included in the Balance Sheet as described d represent those parts of and/or with the charitable expenditure note bel only relate to incorporated charities with the support costs the grants or onationsd escribed in expendi which not Gross Salaries details are shown. If so delete all text to autohidethe required details are shown. If so delete all text to autohide. c) THIS WILL AUTOHIDE AUTOMATICALLYTHIS WILL AUTOHIDE AUTOMATICALLY the accounting year end and are treated as grants in advance, or alternati here are separate notes for designated, unrestricted and re Reporting Accountants are separ te notes for funds held as principals or as intermed is a formal appointment under the Compan Disclosure accountancy services for an incorporated charity falling below the tu cover both of th which must be fulf instructions cover all three of the notes in the templateThese are the mandatory disclosure requirements lled prior to entitlement or use of the grant or donation by notes in the emplate An Accountants' Report ( £90,000 pa in July 2005). Such accountants need not di SORP 234 to 238 stateSORP 166 and 167 state:Notes on SORP 189 to 194 are included in the detailed schedule to The charity operates a client account on behalf of clients, but the amountanalysis of support costs by activity (TABLE 4) is included analysis of charitable expenditure by activity (TABLE 5) SORP 195 to 209 are included in the detailed schedule to t i n the detailes included i SORP 128 statesNumbers of full time employees or full time equivalents Financial Activities and should be cross referred in this textStatement of Financial Activities and should be cross referred in this textd) It is possible to have different appointments is different years. eg Audit ohave been excluded from these accounts. THIS WILL AUTOHIDE AUTOMATICALLYand reference hould be made to those notesexpenditure and reference should be made to those notes Where the charity has been notified of material legacies which have not be another, or reporting accountants one year and auditor another. Care shoul 234166 The notes to the accounts should provide details of the total support cosIt is important that the accounts disclose the costs of employing staff w Activities (because the cond capacity for each year. SORP 114 states:Note that Table 5 is used in the detailed schedule or not the charity itself has incurred those costs. This includes seconded and or categories of expenditure ncluded within support costs. 5 6 i tions for recognition have not been met), th . receivable should be disclosed in the notes to the accounts. Similarly, an indi Engaged on charitable activities by connected or independent companies. For instance, staff working for a c any material assets bequeathed to the charity but subject to a life tenancy inte 114 and be paid by a connected company. Payments m Note that in this template the analysis is given in the detailed sched5 Where a charity has held resources for a third pWhere any incoming resources have been deferred, th a rty which have not bey also b e made notes to inth There were no fees or other remuneration paid to the trustees reasons for Financial Acprovision of staff. Where such arrangements are in place and which forms a part of the Charity accounts but not the Companies t ivities, the noteshe deferrals and analyse the movement oto the accounts should a n the defalyse the rred accoucosts invomovemen There were no employees with emoluments in excess of £60,000 per annum dthe charity’s own expendiy will require amendment to meet the circumstances e ar relating to each parferred in the current year and amounts relea t ure) there should be diy or type of party where material. Where resour s ed from previous years. Iclosure by way of note wh 6 Trustees' Remuneration n p Trustee Remuneration and Benefits lace, the reasons for them and the amount a rties theture can be grouped togetherrequired disclosure of paragraphin the notes as appropriate. s 227 to 228 should be given.involved. 235167 The total staff costs should be shown in the notes to the accounts givinWhere support costs are material, an explanation should be provided No Trustee or connected party was paid any renumeration or benefit during th SORP 319 and 320 state and salaries, employer’s national insurance costs and pension costs (those THIS WILL AUTOHIDE AUTOMATICALLY have been allocated to each of the activity cost categories disclosed in the S resources 319 or the supporting notes to the accounts. The explanation may include perWher e a charity is acting as an intermediary agent (as opposedxpended excluding pension finance costs) for the year. The averto a Neither the trustees nor Assets included above which have been revalued year should be provided and where material to the discloorganisation, as described in If full provision had been made for deferred tax Ex-Gratia Payments Goodwill is being written off in equal annual inst Tangible fixed assetsSORP 230 states details of the methods of apportionment used or a table showing the detailed any persons connected with them paragraph 112, then any as a tion for thlments ov e s r its es year, he taxatio ets held and theure, eg due to th have received t imated ec current year or the prior year. estim (decreased) as follows: below in Table 4 in the SORP.separ ate of the avly identifi e d in the notes to rage number of full time equivalenAlterna t ivelyhe accounts bu ' No trustees or persons connect t employees for the yenot included in the b shown above, received any remuneration Ins giv[Type your THIS WILL AUTOHIDE AUTOMATICALLYNote that Table 4 is used in the detailed schedule. to the accounts providing sub-categories according to the manner in whaccounts should provide sufficient detail so that the reader of the accounts uUnlike in the case of the directors of commercial companies, it is not the norm DFixV Amounts Investments held s current assetsCUTHIS WILL AUTOHIDE AUTOMATICALLY Net book value of plantThe analysis m Subsidiary undertakingsProgramme related investmentsHeritage assets andAnalys Listed investments include the following holdings which each represent grea The items below will need manually inserting [Typ mpaFreehold land and buildings which have been revalued:arrying Ins ssociatediluation e dis re torsd t he dr your ext rment t Asseors he text required th ribu he due of un et owed by group undertakings an valueA d s, Joint Ve req oth t e ails ed Doimat xttail Investmentafter one year us vestme h here] r view ired d r han b e iste t be overquir re included above wCImpairmri ]quired by SORP350. rry e ted i d by rule 111 and lis t a t by ontingts nd machinery incluils ngvgoodsed inv reference SORP 277the headings shown - delete this text to autohide betwstments, subsidiary ,associated or connectesvaluend Joint Arrreview asn UKtmentto readiich havets excluded from the Balance Sh Ensure315 of the SORP investment d ed above held under finance ngements undertak y available market prices been revalu that it and i ngs in which the s made investments oud clear how th Delete this text to autohide if the text is not required organised.nature of the transactions between the charity, the funding organisation and t The investment portfolio is shown in the accounts at market value at the acconleases and hire c other investments or people connected with them, to receive remuneration, or other benefits, f Figures will need inserting Amounts owed to group undertakings and undertakings in which the Creditors :- Amounts Falling due after one year of the portfolio : Assets held under finance leases or hire purchase contracts The INSERT DESCRIPTION OF PROPERTY was revalued on INSERT DATE o mpany has at below p ua r chase contractsticipating interestbelow to agree to the total in the trial balance. By 7 Provis insert Financial derivatives Give [Type your text h 236 movements in the stock market.At SORP 240 and 241 state are responsible, or from institutions connected with those charities. Detailed THIS WILL AUTOHIDE AUTOMATICALLY - MANDATORY IF APPLICABLE equate to the gain, implying no cost. This is in order for the cash flow stateme company has a participating interest Loan Liabilities320 had risen to an estimated £ ( last year = £ ) whose emoluments for the year (including taxable benefits in kind but not em L Iinser Financial derivativesAssets nPeOpera benefits are therefore required where the related party is a charity trustee Contingent ATHIS WILL AUTOMATICALLY AUTOHIDETHIS WILL AUTOHIDE AUTOMATICALLY - Mandatory if this applies At the year end the company had annual commitments under non- Net book value of plant and machinery included above held under fleases and hire purchase contractsby INSERT NAME AND QUALIFICATIONS. The valuer is INDICATE WHETHER STAFF,TRUSTEE OR INDEPENDENT. ee separate notethabilities arising under guaranteesmm The details in paragraph 319 should also be provided when the charity is sion Commitme Where a charity is subject to a statutory audit then the notes should also t t r Fina text here o t ons h detailse tments in77 xt details ng Leafor liabstates o liabilc disclose rcomply with requirements. Ensure the totals agree with the mov of al Commitm re sets and Liabilities when the d re] MATICALLY AUTOHIDE quired by rules 163 and 238 (c) of the SORP. srespect of specific charitable projectslities and chargesti let for Heritage assets e ts due and pension details held y he charity as an intermediary agent to autohidequired information commitments nts INSERT DATE ACS ARE APPROVED are likely to andatory if be met and the this applies nance moveme , t THIS WILL AUTOHIDE AUTOMATICALLY - mandatory when it applies [Typas se SOFA240SORP 273 states Wheeach band of £10,000 fthe pcharity trustee. The following points should be borne in mind when report Th repor SORP 350 statesDisclosure SORP 316 requires the s THIS WILL AUTOHIDE AUTOMATICALLY listthe balance sheet.(a) payment; orgiv Tangible fixed assets for use by the charity should be analysed in the no MANDATORY IN ALL CASES WHERE IT APPLIES related party is a charity trustee or a person connected with a trustee. 417 Loans made t that it will be common that there a The methods used In this ' Inco 299 THIS WILL AUTOHIDE UTOMATICALLY - mandatory when it appliesThese are the mandatory disclosure requirements cancellable operating leases as The basis of valuation was So far as the trustees are aware there have been no material ee the detailed SORP requirements set out under programme invest e se d. Th: re is often a considerable dif The total separate note for ordinary ta your text here] The f r t incipal as described in paragraph 113. However, in this case the ass ed e any cl out in 244 States : 278129 templa are ng r 0 inv 99746 and 305the mandato llowing di e o stment asset note to the accounts should disclose sep note 16 - see note funds received and paid for third pa oa e, unli 307 urces in tradmounss of angib e fixed assets of a charity has been r St int state o ted investments, subsidiary ,associated or connected c g subsidiaclosure should be g ven the impair the form vaom £60,000 upwards. Bands in which no e me di : y disclosure requirements l ue of any: s r et out below:closure as with fixed asset investments. Ho of giftsies, menerenct he security provid gible fix material amounts of such items othe review to determine in kind should between the carrying in d assets respectb e included in the Std, the interest payof net realisable va ach value and me valued, thmployassociaterately: e e’sts 8 SORP 326 and 327 state [Type your text here] 237 ( following ca insert details of (a) Unless one of the exceptions in paragraph 229 applies, the transactionTs Disclosure disclosed in the notes to he accounts. This shand WhereWher investments should be Items inFuthe fno(a) investm template only provide Note particularly SORP 281. Heritage assets are not assets with a heSorp 349 and 350 state: extern ( paragr THIS WILL AUTOHIDE AUTOMATICALLYSORP 319 states mmaterial, and should therefore be disclosed regardless of its size.311 Where th the SORP valuati drawn to notes t (a) the reason for the commitments, giving separate disclosure for material pr shown above under the revaluation section of this note) ( give: details should be given in this section. If required change the headings from 'U only [Type your text here] bacab a i) inves changes in valuation since the last valuation. h) ) ) ould be disclo r ethterialother expenditure of any kind; ormafreehold interest in land and buildings;itnon-monetary benefit; orAprogramme relathe b assets that a s In addi e a uil nalse l r aol owing ways:v a ance shey bename and qualification (if any) of the valuer and whethl to the charity;ph 236:n for all as tm th 26 decains giv ings not held nylu 7 the attet the contex e ails h to egont t ; accouncompliantntsegories:clion the following pension details should be disclos ea asn and held as sto u r ss s ies (a)held ese e 8 t will dontion of the users of the accounts then t of prt as t uldf tangible fixed ass s ed investments (Glstee in thep e held solely in pursuit t sh ar s. Some hewith FRSnoto (f) of for simple disclosure. How imari y to provide anof the invmined obe separ combined s investmeot grammuld disagiven n thUK (see p l w at paragraph 303 abys9: c her thane e k forlose who has made the valua ir tem in the nnclude all o in the lead sch tmentelitag a tragrdi eeWhere th notests ofd investments forms a material part asse s bytribusportfolio a ry GL 47)phreinvestmena tf s (see pion by ote 305 below);erence thecha uldo of preservation or conse . ve hs to the a trustees e the accounts of any ver, in more complex cas a dule, under unlisted inve include details required in ity ha s sets and liabilities of a hoa returne chariuld be furth rragrap the cadily available ma c bcounts. ons en revalued,for the charity;ion, giving: h y should ee s 279 to 294arity makes de r they are a d in total fo difthis to b r analys erence be repartthp 326 di s( SORP 336 states 3 (b) Each type of related pWhere a charity (b) the total amount of the commitments, including amounts already charged See also SORP 381 to 399 a for (a) the p assets must appear under ordinary fixed assets. 349 schemes); and (c) proAl Particulars of particulincludexternal totrus305 Thresourcorganis (c) the amount of commitments outstanding at the start of the year; (c) the naall changes in c written explanation will Insert the figures for the analysis below. By analysing this fully, in ad b iibc osedhould be disclmountctaragraphs 340 to 348) may be omitted. W recision as is prac 26 Particulars of all materi l) material guarantees giv i Particulars of all material provisions for liabilwhere records are available, the h storical cost less depreciation; p lethe basis or bawvit es. nvecontributions in the yIf any specific assets (whether land or other property) of the charity are lant and merty for ch ae iver of rightseholdd in name and qualificach eas or extyeain the n 40 tmenttion,s fors of remuneration paid to ach charity trustee or perame and qual ficat on 7 t (In oureexperity’s rthe to 348 m a mal value ofwithin “vand other intas desc this template this is a separate note) all othe of the activiti bra a charity; ons ritable purposes but chinery including motor vehicles; a tes.sed indedsets hlancerrying valul to the charity; nd s is acting as an intermed ate es of to prope state r icab under he ap r rho d ng o ibed i mati s utsalunthe l valuatisharhe uf p e, ineti de the UK. a ion ( en et arests in land and buildings; ace. rt of the inves rial binding commitments should also ry ncnotes. Similarls of he a res o rty transaction must b, dety to which a charity is entitled,which is made nl provisions for fandby thparagraph 112, then any asset the notes to the accounts.oi (if any) of he valuf ar the provision of defined contribution schen; ta f r o ils pro investmme” only w e thery) of h charit is n fulfilment of a compelling moral obliggphs ro intamme iatciate ould be provid tey, ment assets of t e rests in it; valuer andnt schemland the conditions uncategory ia particulars of all material com he ry agb l ties and charges a ri joint veelated itrn ie es and charges ac such assets r and wdistributed with an e separately disclosed. nt (as opposed to a e of the Statement ofs (including common d in the nowhether n vestmenture; If it is nhe ther they are chari s on connected helthey ar obet es to the a d s, includinr continge t y, the noer which and the practicacdisclose crued inrued in e quiv a mF 9 327 Related Party Transactions given as security for a loan or other liability, a note to the accounts should disnotes to the acc ( 340 charitgiven individually in tof such guarantees, ssepar (d) any amounts charged in the Statement of Financial Activities for the year; SORP 400 to 406 state reconcil 300 is dealt withinvestm investmdistribution. (b) the basis or bases (a) particulars of the assets which are subject to the mortgage or charge;defined benefit schemes respectively. (Further infthe Charity Commission, the nature(e) payments on account (e) if the value has not been updatedThere ar327 Thes SORP 328 (f) states persons connected w 400 312 The notInformation on heri investments. the UK are tr and Appendix 2: FRS 12). accounts should p (e) any amounts released during the year due to a change in the value in the ( b d dc) where records are available, the histi) gross incoming re ) Thesedafixthe number A charThe notes to at ures, fittings and equipment; ande of the previoustely dentified in the notes o th 294 ble projects should be disclosed if hey havecharity’s i e the ope e nt cparti n particular i states octy may have contingen s, there will also be compliance with SORP 306 in r ec ateds shouldmpanies and nit trusasions where charitiula on unts. Where trustf staff to whom r r t t ing and closing carrying values of such investms ov de sa later in this note he consolidated accounts shouage asrest ssih ourcehould include the shoth them, the amount of of valuation investment assets in the UK andould be disclosed in a e notes. Where the charialso analysefull valuation;in the resuland assets in the course f const us ld include the amountsfficientets (whether or not they have be by type;.; d te ass ts es require atirement be e tail so that the reader of the accounts uprs make use) relating to showing separately itand date of the ain the reporting peamounts oet gramme rrical cost l accounts but not included s a n od liabiliticontributions paid and the ben t e to thy n invefits d obthas madecompanie o oe involved, whenrmation on accounting fornot been charged l ss deprecia ated invesd give thlved, f financial derivative p ea no further analys accounts.s as defined in re accruing under dein r the authority of u iod, a statement b s thority for each ction.any pension arrsharlisted on a UK st e n capital position of th t ion;ments hel e nts.the commin: in the FRS 1 is e is d the) a rbb MANDATORY IN ALL CASES WHERE IT APPLIES (b) the amount of the loan or liability and its proportion to the value of the assd sclosed. (The Cgaware of any material changes since the last valuation.in associated with norma 341 nathe movement (f) th under invest the accoun 301 SORP 132 statesNote that the Companies Act requires any charge over the assets to ( 350 Tcinterest ra SORP 320 should also be disclosed(c) Wh parties to be disclosed. See FRSSE 11.11 from contingent assets payabl 401 (e) if the valu(iii)the trustees not to be capable of ab' Referring to 129(a) above, where there are undistributed assets at the year iid hi ven in paragrap ) arities in England and Wales, in its publication (CC7) - Ex Gratia Payments b t ese are broad categories and any charity may, within reason,he notes fourcosdaexpendi A charity In theThe noThe amounts and interest and repayment terms of all inter-fund lo e t ments aaking. et e of he prevof the ts of geheir funds i amount re r witet rare c hin one year and states t s. The es to the hedging). Suurmuneration has nr e s ansaerd indicate the cheach re ated party.hould not recognise incomin of commitments outstandin has not been updaon chon ommitments previously report ahn se where the size or nature of a holding of securities is uct ng funds;arity Cs 430 t i otes should contain: the c ous full valutions between the cha a ccounts should state the aggreritable l or ontingent liabilities in the Stateme operations (eg cuUK(eg op oc mmission has provided further guidance on such 448).h dor outside the UK. ov bactivi eer en paid to a charity trustee or a person onnrivatives as are used will be i a ating lrt on; one yi table objectives, programmes or project t ed in the reportinie s ;orbing the sale of the shareholding ea ses). r.r rency forward contraity, the funding org g at or outgoing resour the d. Particul end of the year ang pat e riod, a statement b amount of the tota n response to a a t of Finannisationrs of c split the hets), holes or gaall c and totheial dins a thAwsg 10THIS WILL AUTOHIDE AUTOMATICALLYSORP 115 states 115Analysis of the Net Movement in Funds [Type your text here] The charity is incorporated under the Companies Act 1985 and is limited by gundertaken to contribute such amounts not nexceeding one pound as may company being wound up whilst he or she is still a member or within one year permanent endowment and summarised, if necessary) should be disclosed in 238 classes that 342 328legal authan explanatThe details n paragraph 319 should also be provided when the charitems involvequotedsubsidiary un (a) an analysis or narraaware of any ma(iv) expenditur Note that the figures below will need inserting and the figure Loans made to trading subsidiaries, the security provided, the interest payobligation) should not be treated as ex-gratia, even though there is no legAn th op ComplianceNote that the Companies Act requires capital contracts not assets held and the use value is ma Disclosures in respect of pensions required by the SORP 443 to 448Particulars so, ( investments shown in the prior note, and the figures in the balanceAnalysis of the Net Movement in Funds should be disclosed as a separate item in the notes to the accounts. SORP 444 statesNote that in thi example, the trustees may think that it will motivate retained staff and hence338 It is not the assbalance she443 disclosed . ( chariti (b) adjus adjusted after the figures have been insertedunder the separate subsidiary note) Where redund on the 'Workings' worksheet. If more columns are required , the figu this facas this would Financial Activ ties assummari(b) the can be found in the financial statements.THIS WILL AUTOHIDE AUTOMATICALLY ( inserted if required) (a) the nature of the scheme, and then analysed in a supporting note. value t 343 (c) the amount of commitmenor share in the tax should be444 Where a defined c(d) the aggregate amount of its assets, liabilities and funds;thesea) its name;davci) details of the co r 41 ) der of the Court or Charity Commission) should also be given, as should tat mose ) i n how its activitiethe netthe reasoeiparticulars of the parent charity’s shareholding or other means of control;Where a charity has held resources for a third party which have not bethe trusWhere ncipual Report. Payments which the trustees reasonably consider to be in Contingent ass WThe nIf there are no employees with emoluments above £60,000 this fact t Thher: e that are int aheat d to take this fact into consideration. firsts) e price, the ty nevl as dotal amount of the commitments, includingncy payme defined co s t is disclosure requirements for derivative prre it becomes prohould be stated.es o results (whetes should distinguishrity teie on of thfour itemsmeet the definition of a class of tangible fixed asse See FRSSE 11.10 n the key of Individual Funds and Notes to the Accounts not a contingent asset and the res de ither the trustees nor any per e t. esrial.' with FRSSE 7.17 requires fu ormally appropriate for charities to hold derivat for the i andr bscribed in paragraph 113. However, in th s case thenvolve establishunder The note below rshould give an opinion in the notes to the accounts on how mon te akings and, unless the subsidiary ise template only three headings are provided, and the ntion reali rsnt ial changes since the laan sustgovernanct (o relate to those of e points.s over and above the minimumts re not ecognised because it could reribution scheme is operated by a charity, the notes to threcommitments, giving eparate disclosure for material pran incomwhich the payment was mad oers ntriducts separa a es should summari value) of addie tax m to spend and are not included,ed. However, when the realisat ti sons foay need to be adapted in the case of associatesade of them;matveshown); b uable that thethat enables the user to appreciateis payable, the share of the te ion schs outs ing ; of their valu r their use should bbetween sho resoura non- te anding at the start of the y t ly fme isions and disposals of heritage assets dhe charity; ld quantify the assets and liabilit pension cr e and in the balance sheet as a debe will be a future outflow of resourom the underlying invharitable trade. As a result, it wou s those commitments ncluded in s t valuatio e ons coperated by a ther analysis as shown in the shouldthe position in the notes to the (This is not provided in t o schurce/gain arising should bnn e amounts already charged n legally required.be given by way of a notprovided a(eg provis e .ot material, in relation mct i on of the inbut in both ase e results pre and postd w th them have r contributions are charity, th i ves for any othe tis he intereon in the govs and are app e ult parar;stmassetthe age, s ci oming ren the re te of the dy isnt or de (In thi notes s inclu s andactists ohou h theeo

the trustees report which covers s cannot be used for SORP anticipated in 2010) FRSSE 2008, Summary Financial able ne of them should be deleted ctice nd &

rawn orts) ct with the FRSSElowing section (ie year ended or then the SORP FRSs, and therefore they must be the ith the SORP. Hence the second h are

osure is in accordance with the allow prepared on the going concern evant, reliable, comparable and ture he SORP f the

he company, net of value added will be SORP compliant. However, rting sts should be used to establish a true and fair view accruals torical cost convention. e Accounting Standards Board, or pecific FRS. If so, any disclosures ould be taken to ensure that any

s for Financial Reporting hen the charity is entitled to the owing policies apply to particular source should be given. This will , for instance: these should be reviewed in the ng policies covering all material luded in full in the statement of esale through the charity's shop , specifically covering when such ds of valuation; sold. d assets, and how the grants are rants, including grants for the ' are MANDATORY al Activities in the year in which rals; the text applies

r restricted; able basis. But non was received nt of Financial Activities net of

ds,fascilities and services to be

changing for the specific item and Reporting (revised June 2008) is hould be disclosed under the e and specified by the donor as re which are still to be met, and w ments ts the specific note ons can or will be met, are deferre in the notes to the accounts and t

vant

rs the underlying criteria. SORP ther this a policy issue, or simply nt note in the subsequent part of accounting principles, modified t of Recommended Practice for sioners for England & Wales .

5

urces expended is, liabilities ns should be given. Where the dered to become binding and the tting the charity to pay out m commitments should be given. ately identified. ds, charitable activities and

f resources expended should be g or contract income) the

sts between the different activity th an equivalent amount in antifiable, measurable and underlying principle ie whether harity of the service or

method of apportionment used is are harged to the profit and losy ,e ate ofhose wheorganisathe entiit was difficult o calculat c counthe transac tre ion. In o of timing differencesubsunde t ion. Monantially all r der to ctaking oe mplftar the an ys contractual obligation is entered int g pmo d ecapitaliown valurate of exchange ruling at to the comp u nts arrpo se d in the balance shs, except to the ext e from fixedrel a ny.The companytively small,assets to thee ne t on tax to the extent that its f the investments at the balance shedited to the fixed assets.date, and the accumulated fund of SSAP ax is not recoverable by the cussion re disclosure in SORP 4 for charities which Financial Activities ng on similar categories of investm PS known as historic assets) s (where relev charity is registeredss account over the pe n heritage assets or in both ivities of unrecluding: a lised and realised nt the amount of fo r VAT or isiod of the apportionment of costs between on and the method of valuation nts outstanding. hould be disclosed. he method of consolidation and ent . consolidould be at market value but may ion of a multi-purpose activity (see context basis over the lease term. full with the recipient charity’s vity are allocated to charitable d include items under (a),(b), he management of the charity's ncluding:ised by allocating the asset to a sts should be explained in the hich are expendable at the dual liability to the donor arising utory requirements. SSE nds may be held in order to aritable activities is made. y (eg lack of reliable information, ility unless the event that would e charity, including the policy for on and disposal policies for such repayment is recognised.' ransfers may arise, for example, ds or charges are made from thethe governance category, and an and it is the policy of the ds in accordance with the s . A worked example can be s of expenditure included within clarify the issues involved rates should be disclosed in the s of the accounts. ation to heritage assets and the tangible fixed assets, and is e of those assets subject to within the general fixed asset written down value of those udit which is not required to o suit their circumstances. If ibed under the accounting ry

funds to designated funds,

cular circumstances.

t of Recommended Practice for after the satisfaction of all debts erred to some other charitable bodarity Commissioners for England the satisfaction of all debts n order to comply with the new transferred to some other

with the FRSSE

e accounting treatments adopted 31,996 ld by another party.

7,086 income' and includes capital rvices to exceed audit or exemption rance to protect the charity from agents, or to indemnify its default on their part. The sum AND OR EMPLOYEES - IT WILL

ble to the auditor, independent 05 SORP. However it is felt to be on chargwhom expeof ons truste e s i would have increas n sesvolved was………...payments w e re d/ vice and accountancy.

THE NOTE SHOULD SAY SO services provided to the charity, to auditor' etc as compared to llowance or by direct payment to on to the Statement ditors, independent examiner d in a note to the accounts. The is only the payments to the nce, entertainment etc) and the e Charity er services that needs to be

on its behalf and are reimbursed Recommended Practice for expenditure is not related to the ' & Wales (revised June 2008) Other professional fees paid to se there is no need to disclose hedule to the Statement of ant' as appropriate d to the trustees, such as the hire e read together with these stated.

A nnot be deleted unless there are01, or in the period ended 31st be deleted, unless there are no ote can be b if l t es held by the charity as combined with the detailed i l ed by the donorsi ties held by the charity as an 2021 combined with the as relating to d in note 7 low provided all the required ture note above provided alle 35 relate to periods subsequent to £ ies Act and does not include estricted funds, but these iaries, but these instructions vely where there are conditions 3,557 urnover limits for a Reporting the charity . . ed schedule to the Statement of o the SOFA under Charitable the SOFA under grantmaking n the detailed schedule to thes involved are not material and sclose any items in this area one year, independent examiner 2021 d be taken to report the correct who work for the charity whether een included in the Sts incurred and of ma t atement of Ferial items is fact and an estimate of the aagency staff and staff employed charity may have contracts with cation should be provided of the na - ndependeeen inhe acerest held by a third party. ule to the SOFA on DetailPL2 c ludedou nt third parties for s should explainin the Statement of the unt between incoming resourcesnt of these resources during theolved are material (in relation to Act accounts. The headings hich outlines the arrangemenrcesIncoming resources ohave been held or rela f a similar t in ed

g the split between gross wages in the notes of how these costs e pension costs included within Statement of Financial Activities he year rcentages or amounts allocated, a custodian trustee) or arage number of staf duri n g the other e associated liabili conomic life on charge w d allocations such as that shown he number of par any remuneration, either in the o uld have increased/f 20 years. t time staff, an ies should be ear may be provided in the notes balance ted with them, other than those sheet. The notes to the ed company investments and understands the relhich the charity’s utside the UK mal practice for charity trustees, eet ter than 5% of the market value is figure is included the debtors a tionshipctivities are and y default the total sales proceeds from the charities for which they the recipient of the funds. ounting year end and is prone to o show the number of employees ent to balancehe market value of investments disclosures of remuneration and mployer pensios actinge, or a person connected with a vements excluded from the SOFA ents on commitments previously as an i n termediary but is costs) fell within owever, in practice, it is unlikely arties but excluded from the he notes to he accou tments in the Balance Sheet ting on transactions, where the s emolumenand liabilities wi t s fe ll be ishould not be n tscluded inshould otes to the accounts within the m e and er than near cash assets, s y alue and value in use should be company investments and ther a temeble and the repayment terms rket value of inter joint venture and this w llt of Financial Activities sts in land o the i n arkets eritage significance. They are estmses r n should always be regarded as ticular nveshe notes to n paragraph 277. e so material hat it needs to b charity, nor at; andr higher paid staff as definmember of staff or a trustd between: e pr ference should bnts, and then th i ces (Glossary GL 41), th t he accounts shment t ach an up-to-dat (SORP 277 is hat is c e made to analysis e ed in uldnsideror e ervation objectives. All other ecognised as incom ng Unlisted investments' rojects; primarily as part of its charitabl4), or contingent lof the work of the char should be included, with suchi abilresourc it y, or thies (s ee s member of stavan tent liabilities exist and areme (normally money purchase not as an application of funds orn the bal ble tescustodian tru in the accounts; Tmember of staff or a tr h to nt amount being ncle balanceis methe accounts should show quantify thean ce heet s lis, for exsh s ort ee at) for dif as liabili a mple, erence, aua stednobilities e nd as th ies sh rer o at t mmitments in respect of specific ed accounts.e associated liabilities should efined contribution schemes and accounts.sclose: 12 (Glossary GL 11 and GL 12 gation should be disclosed in the ng ncluding the sundry unlisted balance sheet. The notetock exchange or incorporated in relation to this category of Fe Court, the Attorney General orngements for charity trusubject to a mortgage or charge with a charity trustee, should liabilities might arise as a result in vestment fund an cial Activitiey impairment l s , open ende t o reflect itssses, an s to thetees or bed producby theundrequir Retirement Benefit Schemes is bhitmefits accruing must be disclose commitments; should be given in the notes tosuch paym e tween equity, loan and other g e rstands thn r ed ofoup as well a ts trusteareto ameliorate twhetherlik e s that they are notnt should also be e relationsly to be met s the parent uch entities h ip e risk and s ahe investment supporthe recipientsets mortgaged or charged.g ichr n in secure the liabilities of third payments, that is applicable to material n that the market is hought by vestm d loss icatione bind ng commitmentsnts or borrowing (eg a of the funds.r s to how much ii sing respectively t s. s e accounts. If thActivit es or the ba scale and naturof the chby the trustees thatverning document of the charity,propriate o its operatioby Charities).without a material effect on oans (including any loans from uld be steadings or adopt other narrower al investment of the charity in its discu es are included within the ing ate toe balance sheet as liabilities andecognition of incoming resourcesend, a generalto each one:the notes to the accounts. c harted with a charity tru s the accounts p i sion of risk in the Trustees’ an intermediary but is thety’s risk m at rity (more thaed. description of e of the hy a a lance nagement and r they are note ablovided such ns s. a moral tee, theheet. e to doritage the e reason for such remuneration.ould ded liabiliesources is vmuch the market price should be s or joint ventures that are not uded in he accounts to be e sheet will be automatically yable and the repayment terms guarantee, each member having e template al obligation to make them. For t ies w ll be included in theail: i rtually certain, then e benefit the charity if they make berec this template and should be ties and indicate where they er rea is template this is dealt with roj be required in the event of the text of these may be altered g ven in FRS17. Th s s ei ncluded in he Statemived any such remuneration,ct s ;on than 2021 t o amel i orate risk e nc t ion of d in the accounts;uld not normally be necessary to he accounts should disclose:during the yeen included in the Statement of Fbtor.t tax and th ures should be amalgamated r thereafter e £ ar; rces to settle an item previously ebt.to the accounts should disclose:

5

HAWA

Schedule to the Statement of Financial Activities for the year ended 31 March 2021 Status of this schedule to the Statement of Financial Activities

This schedule is an intrinsic part of the accounts required to comply with the 2008 Recommended Practice for Accounting and Reporting issued by the Charity Co Wales, effective April 2008. However, it is not a part of the statutory accounts requ the Companies Act 2006 in relation to incorporated charities.

----- Start of picture text -----
Incoming Resources
Incoming Resources from generated funds
Other voluntary incomeGifts in kind, donated services and facilitiesSponsorshVoluntary income Legacies p Income
Sponsorship income 31,996 -
Total other voluntary incomeTHIS WILL AUTOHIDE AUTOMATICALLY 31,996 -
Total Voluntary Income 31,996 -
SORP 121Gifts Note that orp 123 to 128 states:-in Kind ( thesSORP 137(c) defines Voluntary income (Glossary GL 61) a requires that sponsorship are distinguished from do whic h nated services and faci s :-is not pure donation but i
IncomActvities for generating funds not analysed elsewherebelow) includes incoming resourc( eg adverts) should not b 123vestment Income 'It is good practice to monitor a legacy from the t ng resources from charitable activities e shown heres generated from the followibut should be sh ng sources:own under ime when notif ' activities to gen cation is re
Total Incoming ResourcesOther Incoming Resources (a) gifts, donations and any related gift aid claimed, incl charity should not, however, regard a legacy as receiva uding legacies (see paragra ble simply because it has 31,996 -
THIS WILL AUTOHIDE AUTOMATICALLY
Direct support costs CostsInveThisSORP 129 statesExpenditure on Charitable AcGeneral Rules on the Recognition of Resources ExpendedFundraising Trad the founders, patrons, supporters, the general public and businesses; only do so when the legacy has been received or if, before receipt, there is suffici SORP 137 statesTHIS WILL AUTOHIDE AUTOMATICALLYwtmeof Generating Fundsll hide autot Manageme: Cost of goods sold and other costsVoluntary Incomeatically -t Costsivities do not enter details in the next two rows -
Volunteers' Costs ' completed when the governance and other resources expended(b) grants which provide core funding or are of a general nature prov necessary c SORP 143 to 145 state:- The free text boxes below may be used to analyse the TB entry for ' Activities for generating funds are the trading and other fundraising activitie THIS WILL AUTOHIDE AUTOMATICALLY in the following ways: charitable foundations but will not include those grants which are specifically for th with sufficient reliability (see paragraph 94).Incoming r 0 states e rtainty that the legacy will be received and the value of sources in the form of gifts in kind should be included : - 7,380 sect ons are compl in i Other ded by govern the Statemenincoming activit -
Resource Costs 143 'Investment inc SORP 147 states:- The total at the bottom of this schedule will autohide if the analysis agrees to the Tr primarily to generate incoming resources which will b THIS WILL AUTOHIDE AUTOMATICALLY124 a service or production of charitable goods, for instance a service agreement with a (a) Assets given and held as sto ' included within this carents but excluding realised and unrprovided for the benefi f SORP 148, 149 and 150 state (c) membership subscriptions and sponsorships where these are, in substance, don Other incoming resources will include the receipt of any resources which the crom the personal representatives of the estate advising that payment of the legaor the year within “voluntary income” only when distributed with an equivalent ' There will normally be suffiThis categ 78075 statesstates : o ry includes any incoming resources rme includes incoming resources from investment assets, :- - t egory involv of the charity's beneficiaries. I c k for distr bution by the charity should be recognient certa e an element of exchange, with thealised investmen i nty of receipt, for example, as soon a et ceived which are a paymen used to undertake its charigains and losses.will include trading activiti 904 ' charity rinclud - et
Travel and Subsistence - Charitable Activities' providing gofurtherance f the charity's objects and those grants (althouanalyse within the main incoming resource categories. ' 148 ' Cost SORP188 to 190 state resour payment for goods or services; properTheInvesThi s e arof gExp ct my bequeathed wates expended un een nt manageme the costgory should ncluderating vditure o ds, services or an entry to an event. This cate s h which ar o ullu i ll be ntd be recogniser he appary income are defined in the costs te ransfassociated with generatiall those costs thatar e defined inr red opriate c. It is likely that when nd to th a tht e go Glosa r y e i saryng incoming resource This will be a minority of in of the extGlossary (GLthe value of the resource wncurred by r gg (GL 38). or e h le Statement ont tha y will include:g 450 all t y Where13). All uch f donations a ld ng or i ability iinve f Finan s froma s ) w intm - fu
which make them similar in SORP 141 states:- (a) fundraising events such as jumble sales, firework dcharities will not need to use this category. Examples of items that fall within thisa commensurate increundertakinfees are 188 this tim d including a (d) gifts in kind (see paragraph 129) and donated servic onated ristributi'R e deducsource o . However, legn. g bough charien ts ed from investm exp’ costs wh t abl-in goods or in e nded ac se tiv ties. The main ci e s whire fundeconomic i n ron ech ntcognp r are not immediaaritableovidingais ng ageincome i termssed assets or a reducnby investmentactivities o to trading ncome, such as service levempon n ts ar-chari e nt t uely able services tocom si splays and concerts (which ed of co es payab,mana a p should n ri s d t e all the resources f s within this cation in liabilities.l 8 ac eg , ers 734 s iliti behou, es included withgthe charitlenerate incod (see not pa b e r yg tr ag shIn or - e r
local authorities.''Wheretrading the disposal of a tangible fixed asset held for the charityaccruals basthe caseinvesundertakincondi (a b ) costs the cosAsset t menion a char ty has subsidiary undertakings:ctivit s of tg assoc of goods sold consolidatgenerat ng voluntaincome th ts wiven f i s, l i es); iaor ted with paymb i use by the k to melities a e grd accounts o ss re se ret its charitable objecinv r y ivices provided; cent hogs a come (Glosrity (eg properment income before n have been fulfilled (eg the death of a life tenany such coised as resour s ary GL 13 and see paragraphs 180 tts in t ivy fo ces ur r ed byasexpended as ’s own use (paragraph 218 fees aitsopposed towany n d rep occupatsubsid ary o rtsoon a the cost of the fees wi i on) s compahould ther)
Management and administration costs ( on the disposal of a programme related investment (paragraph 310).'shouldthese ctivities Note125 resources and w (b) obligationbasee p ) those sponsorships and social lotteries which cannot be considered as pure doothercosts of fundraising tradiall payments to the charity by its subsidiary undertakings and allIt is unlike that although a beragraph 140).costs related tconsocommand governa l y it datedthin the re in SORP 151 to 160 g th practicAs xp oe n a line-by-l ne bas the ch lnear tce cosg, including co thavinedity o the a de, includint f t in Appe t xed asshe entitlement, ces. Char table refer to the making of grants ( ie expenditu exp ni g staff cdix 3, par se t of go.t category nditure activities a o ds ssts, premises costs a gs desc r tainty of recaph 3(c), inv o f thld and o re ibed in F nancialall balance theei r restmeapt adividend e s and osociaheetources x n t manad m t whenRepoed cher en a
in support of charitable activities 144 ' (c) shop income from selling donated goods and bought in goods;than amounts receivable by the charity for the provision f goods and services toliassociated with 1 sinclud ng allocatdel very of considerations should apply in relation to receiving grants and how they are reco a 8611tbility will arise when a charity i sf ) .; andThis category will not include grants whiched before the recgoods and s e ndowment fund invd support e ipt of a lettrvi c eo s , includingts; andis under an obligation to make a transf e r from the personal represstments should generally bits programme and project workare for c o re funding or do not have e ntatives advisingcharg e d r of valu t o the hat is d e
Staff costs in support of charitable activities requ(d) providisubs diaries, should be separat SORP 218 (b) states of SORP 181 states Sta should be made to tran (c) under investment income(e) letting and licensing arrangements of property held primarily for functionvoluntary income (see paragraph 121(b))''Gains on the disposal of fixed assets for the charity’s own use should be includewithIn consch'Some fundraising costs may be incfinpast transac a i tcosts Where a gifr lement of sii sed and, even if it ha t remefer. The charithy, the incoming resource sho o se support costslidated accounts thiof mrel n g goods ats or are i a a ted to the libleFinancialnaging t mount which haionaims SORP 151 to 160 s :- or vbe n investm responsand objd services other than for the benefit of the charity’s beneficia e An made in kind but c incurred that enable th en tivities.'in the parent charity’s accounts.ts.s ng of si cat, ths available in the estate for distribut ee cn to an appeal. Such grants should be included in thely recognised as incoming resources and appropria te ives.s for bothgoryre may still ba charity logo. u rred in startingld norma for this purpose. Such costs includewill inc ude the income generaon trust for conversion nto cash and su l ly b e s outstand e activitieup a new soure co gn sts incur t ion and capital maintena i he direct costs of the cng matters relating to s ed in the accounting to be r ce ofed i on to the benefiby both the chfuture incom
Salaries - Administrative staff temporarily surplus to operational requirements.(b) The exact amount of a gift aidincoming resources”. Losses on disposal should b 149 or in subsiundertaken.amount. In these cwhere mater SORP 255(c) statesIf material, this item should be analysed more full ' d evelop ngiaries or other entitiJust as char ties may r 179 states i al, an adjustment a suppor i rcums t anc e sr database.con e ceive fundss entit s hou d be molidated on line-by-l payment from a subsidiar l ement may be in under a de a varto the i doune asis.ety of rrangeme e origin y in the notes to the acc tr b t or it may not be possi yea undertakin a ted l valuatio 3,557 as addg n relatin ts (see p iti upon su onal g -
' 145 only be precisely determined subsequentappropriately in the resources expended section of the Statement of Financial Activ 189 Where functioreacharities exp(a) Start-up costs of note generated for the purpose as there is not such a note in the standard gift. HowevCo s ts ofonable estimate of the legacy receivable, in' Incoming resources from charitable acCharitigen e r in certs may c en rating funds hould noal fixed assets have been donated, they should bd their fund a rry out theiri n cases this will noew fu s i n draising a v a riety of ways ranging from mc t includivities through aac t to he year end, for example with theivity should e b et ivities should include:: practicawhich case it sho b combination of dirle and thetreated 3 e in the same , etin incl 557 incoming u conld notd e d in the bcg t resourc serviceractual mannbe in -
SORP138 states (a) the sale of goods or services as part of the direct chacalculation of taxable profits. Provided that a liability forinc Disclosure valFinancial Activi(a) costsgrants or dof third partiaccounting u rrede at the datasass perio anac ated with deliverings o t od in which the gift isi of a te ions. This of the gift and als.undertake work that oncharity’s ongoingSORP s or suppoeeks to provideo insold. The mosactivi c luded in t ies. In m r ibutes ting the to common examplSprovi the charsguidance on how such diff t the gift aid payment xiste atement of Financ ca ritable activities of th s ion of goods andes, it y's object ve will b e i nappropris that of s i al Activi e s or pervic cha
Premises Costs SORP 310 states ' Whilst selling donated goods is legally considered to bprimary purpose trading);end, the amount of the liability shoulddist c an 126 for haases, theward start-up costs as pr rin ity’s objects; noresale, which, whilsWhere a charity receivguished. However, judcoming restotal c o st of he activity involves both costs iurce. the costs of a In this template, such items will be entered in th t re ge paymeards a paymentem e nt will still be d as a d n ts ory subsbe adjusted wh on d e fer accouqueatio ren dquiredt egotiation, mon t iexpe n t of legal nie nts interest dicurred directly by he cha the realisation of a donare calculations subsequedeciding h t ue r ems, is in economic tas the future i n an es o ring or rw any individ t atecono e por or
Rent payable 129(c)), in econ(b) thgreat' Where a gain is made on the disposal of a programme related investment, framework. Th SORP 186 states shoof goods omay be dethird parties through grantmacqpayment will b u ld be includisition of fix e r accuracy (see Appendix sale of g r ived are usually not suffiservices under the term e oed recommendmade, the pmic terms it is similar to a trading activity aodswithin “actassets'or services made a tions belyment, k ng a i vitie2: FRS 21). sc tiviienf oo fr intorr genw sa t ies.lyprovided by the begran e cnded payment, ot out ert at, contract ora in how accounting st (see Appeg funds”. perform ie NOT IN THIS SECTI nn eficiaries ofd should be included dix account should be t 7,086 2: UITF Abstract 2 an dards and prce-related gthe charit (see - r
Room Hire (c) either be set off against any prior impairment loss or included as a gain on dispthe confor Star' Where th 12790 the letting of non-investment property in furtherance of the charity’s objectGift aid payments from subsidiary undertakings should be separately discloSimilarly, where a payment is received or notified as receivabWher t -upext of e Ccincoming resources are rece ved either osts transactions that are commo). associated with fundrais in ly ung tra d ertakening are materia , details should under contract or by a re 558 l e (by the person s ;ed i -
SORP 139 states Financial Activities within(d) contractual payments from government or public authoritcharity’s own use and recorded under “other incoming resources” (see paragraph 1 Disclosure account SORP 130 states (b) Data capture costs of internally developed datspecifieds to distinguish the cost of separate trading activitiesing year end, but it is clear that it had been agreed by the personal represervice, further investment income, or, if not mater al,analysis of charitable a ctivities expenditure may be prbases may only be capitalised w i in a way that matcheses where these are rein the notes to the
Light and heat ' It noraccounts. The su 150 canaccounts to demonstrate the link betwee' In all cases the amou Note the exemption for small charities not subject to a statutory audit end (hence providing evidence of a con ma be demonstrated Contractual Arrangements l course of trading y be possi b sidiaryle to idea n d the resulting atabase has a readily asct at which gifts i under tify the incoming rtakings thems(a) to (c), eg f. ' d ition that ex n the incom ng resource and thkind are included in th e lves will only be accounted for by the es ources and resources expended fo for respite i sted at the balance sheet datcare; 2,302 e Statrtainable value. e ment of F charitabl - e
Cleaning consolidated Statementof an activity (this may have to be done for tax purposes) but often these will be (e) grants specifically for the provision of Only gains and profits should be shown in this section - if losses are 'W SORP 122 states in the Statement of Financial Aeit analyse by her e a charity enters into a ontract fora reasonable ctivity, but may analyse by resource classifications to sui estimateof Financial Activities of theof heir gross value to th ct ivities and the balancgoods and servicethe supply of goods or services, expendgroup ( e cs h ariee st toee.y or the amount actuaparagraphs 381be provided as part 524 to 4 -
activitisingle transferred elsewhere. The template will automatically show figures SORP 182 states :- 'Wher s Disclosure Sorp 191 to 195 state:advantage is aken of this exemption, compliance with SORP186 will not uppliecond-hand goo ee material, r of the goods or services has or services to benefic aries;conomic activity. Char d s donated for resale.etails of the type i ty trustees should consider the balance of the ac s performof activities undertaken to geneWher e gifts in kind are included in the Statd their part of the cont ra ct, fte v o r exlunt a mry
Premises repairs and renewals determine the most appropriate place to includ(f) ancillary trades connected to a primary purpos Note that in this template the Gift Aid is shown in thinegative. If negative figures are shown, the res ' Th 191 eith Disclosure at their esthe p er Resources expend on the face of thovisionstar t -up costsimatedof a service.'gross valuof a new fu e Statd on e chari, the current value will me nt draisingable activ of Financac i al Activitie ti es shovity may e in (athe in u sl ults should be manually d ually be the price that it est ) s or in the notes t be coo material in the contex (e)min s analysed on de .'g 1 t r , a 320 esou iled r sc ces t o the acche face o h fr edu om le - w s
done this the components of incoming resources need not be analysed further. for the above purposes, and not the notes to the accounts.figures by zero in this section and showing the figures for the losses in t Ain a 128 c nalys tivit he openWhere the charity has been ny and may, because of thei i es ors categories provided hmarket for an equivalent item.in a prominent not er te s exceptional size or incid o ttifi he ould match td of material leg accounts. T h e is analdetailed analysis providaci e ynces which have not besis 11 , resho ,790 q u ld ire seprovide aparat e d n d -
Disclosure For example, a shop may mainly sell donated and boug section of the template. of the activivoluFina Resources Expended performance.' n cial Actary incom ti es undertaken and the resviti e .'s (because the conditi o ns for recognition havurces expended on th ht in goods but it may also s e not been met), thisir provision. This an
General administrative expenses: SORP 146 statesDisclosure made by its beneficiaries and incidentally provide information about the charity SORP 177 states :- amounts rece Disclosure out the activ ty cost of the main services provided by the charity, or set out t i vable should be disclosed in the notes to the accounts. Similarly, an
Telephone and fax SORP 142 classify all the incoming resources from the shop as “shop 'An analysis of incoming resources from charitableThe St Disclosure materi SORP 131 states indication should be provided of the nature of a tement of Financial Activities pl programmes or projects undeThe notes to the accounts r ovidestaken by the charity.should show the gros an y material ass analysis of thactivit es i ncome” under activities se hould be given in t investment income resources expendets bequeathed to th 50 -
Stationery and printing supplement the analysis on the face of the Statement of Financial Activities. It shinvestment shown in paragraph 303.on the natur 192 to a life tenancThe basis of anThe not e ofto y th interest held by a thirvaluation shoe ae a c tivitiecount s u should indertaken. Resourcesld be disclosed in the accounting poli d entify the amount party. Where matexp e of support costs allocatednded are split into three rial, the a 335 c counting policies. -
so that the reader of the accounts understands the main activities carried out b
SORP 183 and 184 state :-193 categoridistinguish between the a In this template the appropriate accounting policy note is Wh e s, being:re activities are arried ou c counting t through a combination of directreatments adopted for pecuniary and residua Incoming Resourcservice or p r
Equipment expenses components of the gross incoming resources receivable from each material charita SORP303 referred to above identifies the classes as:- (a) the cfunding legacies subject to a life interest held by another party. o sts of generating funds (paragraph 178f third parties, the notes to the accounts should identify the amount o- 187) 1,143 -
Health and safety costs As far as possible, incoming resources should be analysed using the same analysis 183 SORP 132 states (b) the costs of charitable activiusing the note to explain the acWhere the costs of generating voluntary income are ti es (paragraph 188 - 209vity funded. ) andmaterial 140 , details of the t - y
(a)for resources expended on charitable activities.'cos 194 (c) ' Referring to 129(a) above, where there ar In this template the appropriate accounting policy note is (b) investments listed on a recognised stock exchange with the Statementitems involved and an estimatcollections (eg street and hous appropriate note for the substantive disclosures i t investment properties;he governance cos wTh e disclosures required may,re expended hould be shown inof Financial Activities nd other not s ts (paragraph 210 e of their v-to-house collectifor example, be pres ta o 212).hlue sh e noteundi os uld bns), stribut to th e pon s or ones valued by referenc s a e given by way of a nted in a table such as Ta accounts. Types of activitd assets at the year end, ' Material legacies that ha s appropriate):orship, legacy developm 1,668 'accounti note to -
Professional fees in support of charitable activities THE TEXT HEADINGS BELOW WILL REQUIRE EDITING TO MEET THE C as common investment funds, open ended investment companies, and unit trusts;The Statemvalue is matAs far as possible the analysis provided he Legacies should be entered into the Trial Balance e rial.'nt of Financial Activities o r the notes to the accounts should ie should match the detailed analysis of
(c) investments in subsidiary or associated undertakings or in companies wh example headings are those specified in the SORP as above
Accountancy fees other than examiners/auditors subactivities, services, resources (see paragra This template includes a note in this format entitled p hs 121 to 122).rogrammes, projects or other initiatives that contribute to aanalysis of charitable e 230 -
(Glossary GL 50); shown at the end category. Donated Services and Facilities ( as distinguished from goods in kind)of this detailed schedule
(d) other unlisted securities; The entry on the trial balance for 184 Exceptional costs that arise in the context of gen 'Other Charitable Activities' erating voluntary income sh will need analysin
(e) cash and settlements pending, held as part of the investment portfolio;
SORP 133 states separate category of costs on the face of the Statement of Financial Activities but, r Note that any items that are direct management functions inherent 230 -
(f) any other investments.included as n programme or project work, should be analysed THIS WILL AUTOHIDE AUTOMATICALLY 'A charity m a y receive assisexceptional i t em w thin the relevant ctiance i n the form of don a ted facilities, beneficial lo vity cost category. The mo out and be included in th a n a
Total Support costs 25,979 -
the donatedexceptional Enter 'Governance' below servicesitem the costs eitherSuch or 'Other to incomingindividually be reallocated Resourcesres o rurcesasExpended' and anshould they aggregate will be he au in ading ofcluded tomatically items Any inofthea appear such similarStatement items in type the of s s r
----- End of picture text -----

16

the exceptional item, either individually r as an aggregate donated services. Such incoming res Enter below the costs to be reallocated and they will au Governance or Other Resources Expended o urces should be in he ~~ading. Any such items s~~ ~~of items of a similar type, scluded in the Statement of tomatically appear in the r~~ The headings below may need adjustment for circumstances. The detaile the notes to the accounts or on the f working papers to show how they have been allocated, and the acco where the benefit to the charity is re entries in this section as negative entries a ce of the Statement of Financial Activities (witsonably quantifiable and measurable. The val analysis schedule at the end of this detail section should also be com resourccategory to which the cost relates)Expend Grantmaking e d' s should be the estimated value to the charity of the s should show the basis of the analysis, and should, where rele if that degree of prominenc e is necessary to givrvice or facility rece Support costs for grants paid these totals notes ' An adequate description should be given to enable its nature to be undprice the charity estimates it would p Note the exemption for small charities not subject to a statutory audit THIS WILL AUTOMATICALLY AUTOHIDE Analysis of support costs', 'An a y in the open market for a serviclysis of charitable expenditure' and e or facirstood.'Ana ysis l ity o Total Expended on Charitable Activities Governance costs that are not direct management functions inhere THIS WILL AUTOHIDE AUTOMATICALLY the charity.' analyse by activity, but may analyse by resour Do not make any entries in the two following rows. they Governance costsNote that any items that are direct management functions inherent in gThe headings below should be altered oadvantage is taken of this exemption, this reallocation of costs will not be Governance section and the other resources expended section the TB and working paper sched ~~ce classif will automatically update w~~ 25,979 ~~cations to sui~~ - SORP 134be analysed out and be included in this section and not under the '195 to 200 state: states Gover funds, service delivery and programme or project work THIS WILL AUTOHIDE AUTOMATICALLY Expended' 'Donated services and facilities recognised in financial statements would include th heading. Any such items should be analysed in the working p (including management and administration costs) 195have been allocated, and the accounting policy ' by an individual or Costs associat e d with granntity as par t making activity include the grants actually made a of their trade or profession for a fee. In contrast, thResources Expended' shou SORP 210 to 211 state: volunteers should be excluded from the Statemassociated analysis, and should, where relevant be included in the notes ' with the activity. The term grant is d e nt of Financiafined in the G ossary (GL 29) and a l Activities as the valAnalysis o 210 c to the charity cannot be reasonharitosts re explai Governance costs (defined in Glossary GL 28) include the costs of governance a ble expe n diture' ed further at p and 'Analysis of grants' a bly quantified in financial terms. Commercial discoragraph 164 . Appendices to the Statement of Financial ActivitiesOther resources expendedGrantmakingThe section below is left blank to accommodate transfers from governance to the general running of the charity as opposed to the direct management func 196 recognised as incoming resource except where they clearly represent a donation.' ran Included in gross wages and salaries are the costs of seconded staff, including t HIS WILL AUTOHIDE AUTOMATICALLY Support costs related to grantmaking will include: fer between funds Enter below the interest to be reallocated and they will automatically appear in tcosts in the sum of £ (2000= £) for the year ended 31 March 2021 funds, service delivery and programme or project work. These activities provide th The headings below should be altered on the TB and working paper sched (a) costs incurred before grants are made (pre-grant costs) as part of the decision m THIS WILL AUTOHIDE AUTOMATICALLYthe entries in this section as negative entries. which allows the charity to operate and to generate the information required for SORP 135 states (b) post-grant costs eg monitoring of grants; and include the strategic planning processes that contribute to future development of th'Where d(c) costs f any central or regional office functions such o nated services or facilities are recognised, an equivalent amount should bas general management, p SORP 213 states:- Review the detailed disclosure notes in the grants section above. This schedule co The autohide function has been disabled for the following rows , so t211 admiexpe n Expenditure on the governance of the charity will normally include both direcdiis t ration, budgeting and accounting, information technology, human resourceure under the appropriate heading in the Statement of Financial Activities' 4 to 216 state :- 214 ' Other resources expended will include the payment of any resources which the c to analyse i overlooked. A single row autohide may be manuall insertted if required. Direct costs will include such items as internal and external audit, legal advfinancing. All tra ns titutional grants, and the note ' Analysis of grants' meets the other dfers between the different categories of funds should be shown Statement of Financ al Ac analyse within the main resources expended categories. This category should no it may be that addit i onal t exivi t ies. The transfer ow will be used for several purposes is required eithe r here or in the notes to the accounts associated with constitutional and statutory requirements eg the cost of truste Disclosure197 Grantmaking charities may undertake their entire programme of work through Note for advanced users which can be allocated to other activity costs.' requirements(a) when capital funds are released to an income fund from expendable endowmen statutory accounts. Where material, there should also be an apportionment of SORP 136 states The following appendices are attached to detail the activity analysis req whilst other charities may undertake their activities through a combination of direc (b) where a charity has authority to adopt a total return approach to investment involved in supporting the governance activities (as distinct from supporting Revision of the Statement of Recommended Practice for Accounting and 'The notes to the accounts should give an analysis of donated services or facilities igrant funding of third parties. In either case, further analysis of grantmaking, where 3(g)) to record the release of funds to income from the unapplied total return fund Note the exemption for small charities not subject to a statutory audit After making that any itemsse reallocations, that are direct management functions inhe is a p rf ctly acceptable alternativent in g generation activities). by the Charity Commissioners for England & Wales, effective April 2005. provided.Statement of Financial Activities distinguishing appropriately between the different endowment fund; delivery and programme or project workanalyse by activity, but may analyse by resource classifications to suiDisclosure198 seconded staff, loaned tailed The further inform analysis to the relev a tion provided in relation to grantmaking should provide thessets etc. The accounting policy notes should also indicate t particular activity should be analysed out and breas of the accou (c) where restricted assets have been released and reallocated to unrestricted inco sections of this detailed schedule and not under this heading. Any such iadvantage is taken of this exemption, none of this analysis will be nec212 valuation used. Where donated services are received but not included in thunderstanding of the nature of the activities utomated The accounting policy notes should explain the nature of costs allocated to th reallocat on below. This can be d or projects that are being ne using copy and paste, fund e Statemd and w eacin the working papers to show how they have been allocated, and the acctotal grants on one line (d) to transfer assets from unrestricted income funds to finance a deficit on a restric this template this should be included within the accounting policy note Activities (eg support is pro activity section of the acc v olunteers) this should be disclosed in the Trustees’ Anided directly to individuals or to assist an institution u un s has a detailed break n own of its o dertake itsual Report if t 'Rac Expended' this, ensure the proof totals are dealt with correctly, and check the totals (e) to transfer of the value of fixed assets from restricted to unrestricted funds analysis may be provided within the notes to the accounts of the main items of the case of institutional grants, information as to the recipient(s) of he funding honecessary for the reader to gain a better understanding of the chari should show the basis of the analysis, and should, where rele t y’s activitie s . notes ' purchased from a restricted fund donation but the asset is held for a general and no Analysis of support costs', 'Analysis of charitable expenditure' and ' Analysis this category where it is considered to provide useful information to the users of ththat the reader can appreciate the type and range of institutions supported. 215 is included below).199 In this template the appropriate accounting policy note is An individual grant is one that is made for the direct benefit of the individual wMaterial transfers should not be netted off but should be shown gross on thIncoming Resou Financial Activities. All interest payable will be included in this section, in order that the sp details are given in the detailed schedule to the SOFA set out below to relieve financial hardship or for an educational bursary. All other grants should b Disclfor Companies Act disclosure. However, if interest is more properly identisure Note that any items that are direct management functions inherent in g institutional. For example, a grant which is made to an individual to carry out a rese 216 inherent in generating funds, service delivery and programme or project The notes to the accounts should provide an explanation of the nature of eac delivery and programme or project work should be analysed out and be be regarded as a grant to the institution with which the individual is connected rath funds.( should be analysed out and be reallocated to the earlier sections of t This may be complied with by completing the text box below or by comple the individual. sections of this detailed schedule by using the reallocation cells below. A using the reallocation cells below. Any such items should be analysed i Particulars of Individual Funds and analysis of assets and liabilities representing fun 200analysed in the working papers to show how they have been allocated, a Information provided in relation to grantmaking may be limited or excluded wh 'show how they have been allocated, and the accounting policy 'Resource (a) grants are made to individuals - in which case details of the recipient are not reqResources Expended' should show the basis of the analysis, and should, wh Note the basis of the analysis, and should, where relevant be included in the nin the notes ' (b) grantmaking activities in total are not material in the context of a charity’s over - Compliance with 215 (netting off) may be impracticable in some cases Analysis of support costs', ' Analysis of charitable expenditure' and 'A costs', 'Analysis of charitable expenditure' and 'Analysis of grants'. schedule, simply because of typing and layout difficulties. This schedule will meet t activities – in which case no disclosures are required ; transfers gross. (c) total grants to a particular institution are not material in the context of institutio case the name of the recipient institution need not be disclosed; Debit transfers should be entered as negative entries on this schedule an (d) disclosure of a particular institutional grant would seriously prejudice either t Credit transfers should be entered as positive entries on this schedule and recipient.

It should be pointed out that this schedule should not only show trans Disclosure funds eg restricted or unrestricted, but within funds for different project201 The analysis and explanation should help the reader of the accounts understan A to restricted fund B relate to the objects of the charity and the policy adopted by the trustees in pursuin 202 The notes to the accounts should identify the amount of support costs associat activities.

203 The analysis and explanation in the notes should provide details, with amounts total of grants payable of:

(a) the total amount of grants analysed between grants to individuals and grants to (b) an analysis of the total amount of grants paid by nature or type of activity or pro supported.

This statement may, for example, be structured as shown in Table 6 (which is inc template 'Analysis of grants':

204 The analysis of grants should provide the reader with an understanding of the projects being funded by the grantmaker. This analysis of grants should relate to th for example, categories may be social welfare, medical research, the performing ar in financial need, help to people seeking to further their education, depending o Some charities may decide that it is appropriate to provide further or alternative lev perhaps for example, showing a geographical analysis of the value of grants made. 205 The trustees may give further analysis and explanation of the purposes for wh part of the Trustees’ Annual Report or by means of a separate publication. Such fur not excuse the trustees from providing sufficient detail in the notes to the accounts provide a true and fair view.

206 If a charity has made grants to particular institutions that are material in the charity should disclose details, as specified in paragraph 207, of a sufficient numbe 16 grants to provide a reasonable understanding of the range of institutions it has may be provided either in the notes to the accounts, or as part of the Trustees' Ann separate publication. Where the analysis is contained in a separate publication, it s

England & Wales ONLY - Not Scotland

Revision of the Statement of ommissioners for England & uired under the provisions of

31,996 31,996 ~~ilities which s in exchange~~ 31,996 are covered for something ~~eceived to its nerate income~~ final receipt. A ' aph 123), give been told abo 31,996 n by ut it. It should ient evidence to provide the they will be automatically nt of Financial Activiti nment andeted resources can be m e asured s ties for generating funds es carried out by a charity 7,380 . e performance of Trial Balance table activities. The activities ding dividends, interfor goods and servic es t and as a charity receives a letter a local authority; nised as incoming resources 904 e charity has not been able to acy will be made or that the t amount being included as ations rather than ceiving income in return for s undertaken in which have conditions ~~m all sources ment manag~~ ncoming resou ~~nc will also be mfundraisingundraising puial Activitiurred or inc~~ 450 ~~c~~ ~~eo m~~ s to reflea r stther thanrces and most eapoent s ,urabl se d with in e from eitherct itsut eahoulroms category include a gain on el agreements w th r in this caty ap are legally consaccounts are:at ed pp h 1 . This includlied bshow asas 8 33) , r 734 . e cegpyory. In threparivabl ei dered to be s: charity in e d on until the nt).d be recoanies or other entitiesre toith n ~~) and a gain~~ raising184) ; i s a lethis costthe funds to financ g nised as incomal or construct vcategory i ng e ati t ions;lements from them, other xpendasurabcosts (seeagemorting Sn rec re) logic dictates that similar costs ei ivable (see paragraphdli nt curred in theandarby they con costsparagraphs 185 d s 5 and 12. Aitions will bcharity in thactivi te oy g of an intend e e particular servicedirected a gnised as income.Reference nd t o a third party s a resulwmen t funth ed achievemenin thep a yment or t charitable activ ties togetherubsequent pplaries,ficiaries me section forance (see paragraph 187).tely described a y not have been i cation by the ed under the heading “other nal use by the charity but mharity and apthe precise division of the e riod whe such as lega n yre c eivable andies, to a financial deprec 3 ia ,557 tion yaear can often nd included - ~~counts. This will require a~~ ~~ubsequent realisation of the paragraphs 96 - 97) so mayible to provide a arity (known as~~ e ncluded icvities; ~~ed at the year~~ ffiate to d tem programme of work. In suchcities (see pasalance sheet at their current liabilities to the e p e r as similar coss shoulds iring trrovisioco n the fud-h 3p carry ,late.557 n an beand the Ssactid go r therance ofagraph 111) as included in theg o pr ta dnnt futement s ymedonacan b n ts din t hed of g e - omicarityrtingterms similar to trading andent to the year nd providedual ransactionation in kind (se he a let 'Incoming resources for and fundbenefits thatr te lating to the provisionr advis ing e fits into thisprovided tothat such a paragraph rinciples should be applied in 24 - Accounting r ty; ION in this section.'anea GL47) t ed as receivable. . 7,086 then the gain should estricted grant to provide anal representatives) after posal of fixed assets for the in the charity’s Statement of be given in the notes to 558 the wheceived in the147).'ess throvided in th e rntatives prior to the year e analysis of income.future b e nefit notes to the Financial Activities should bee chor e e which is not required to ), then it should be accrued activity that it funds. a ch different component rity in its 2,302 e shown, they should be diture is rally realist of charitable406).' t their circumstances. If viewed as contributing to a 524 e cogn zed once thed as i n the case of mple, the delivery oftement of Financial Actiy income should be pro be necessary tivities being undertaken to in this section, even if goods or vi ded ties ~~counts. As far of the Statemext of the ove~~ suc ~~timates it~~ whialtered by h ch i ent 1 s , e 320 r pa ~~wou~~ pri rt of the SOFA srall fundr replacing the as possldes but having nt have to payof F n i ble the a isingncial d s the relevant depreciation i understanding of the naturefor thn cl osure to explainud 11 e d in th , costs 790 e Statement of of generating ~~sell a small am~~ ount of goods nalysis may, for example, sets fact and an estimate of the y. It would be acceptable to the resources expended on s for generating funds.'the notes to the accountedhe charity but subjecte arising from each clasby a charity based 50 s to of hould be sufficiently detailed cy notes shouldd to charitable activities.main activity 335 by the charity and the main r cesy legacies ogramme ctivity and grant a nd ble activity. 1,143 of grantmaking expenditure ypcategories as usedes of activity on which the 140 ce to such invtying for legacieble 5 (w th totala general description of the could 1,668 i ncludeestments, such s ' reconciling and the ~~ment ave beethe accounts~~ ~~n notifd dire~~ provided such ied'.ct mail. CIRCUMSTANCES,but the include an analysis of the voluntary incoming hich are connected persons expenditure, a particular activity 230 and Table 5 is n ~~hould not be~~ g below presented as a rather, should be in service delivery and 230 ~~ount of each~~ ~~his section a~~ rrangements or nd not under ~~should relevant~~ ~~hould~~ ~~Financial~~ 25 ~~be~~ ~~be~~ ,979 ~~sectio~~ ~~discActi~~ ~~an~~ losedvities alysed ns Make in in thethe

Guidance on technical and professiona Sponsorship income

manually override if necessary

E t th t t b ll t d d th

16

~~should be disc relevant sectio~~ ~~hould be an~~ ~~Financial Acti~~ losed invities alysed in the ns. Make the ed supporting investment ounting policy lue placed on thin the activi t yhese'Resources ve a true and fair view.eived: this will be the evant be included in the pleted and reconciled to s of grants'of equivalent utility to which is not required to ~~when entries a~~ ~~t their circu~~ 25,979 re made in the mstances. If dules s appropriategenerating funds, should e necessary nt in generating rnance' or ' Other Resources papers to show how they ose usually provided uld show the basis of the he contribution ofnd the support costs associatf support costs', 'Analysis of ue of th e d supportir contribution ounts should not bee arrangements which relate ctions inherent in generating their National Insurance and e the relevant sections. Make dules as appropriate he governance infrastructure making process; r public accountability. They be included ashe charity.ayroll that the entries are not mplies with the requirement es, andct and related support costs. vice for trustees and costs charity has not been able to disclosure requirements, but on the transfer row of the s including: ot be used for support costs s to fully meet the disclosure h grantmaking activities,ee meetings and preparing quired by the 2005 f shared and indirect costs t service provision and t (see Appendix 3 paragraph d Reporting issued e material, sg its charitable or income included in t h ould bee ve to manually enter thgenerat d held within the permanent which is not required to ng funds, service t major items eg be included in the earlierunts rathert their circumstances. If than us the e reader with a reasonablethe basis of cessary. Simply enter the men items should be analysed he governance category, whe me funds and has the result that t of Financialher the financial (In Resources Expended') and an own overheads. ctivit es or projects. In counting policy this cted fund; and i nformation is'Resources If you do s when the asset has been evant be included in the carried on to th SOFA. ould be provided soexpenditure included within s of grants'.he accounts. ot a restricted purpose. (This analysis he face of the Statement of urces who receives it, for example, and the substantive preadsheet can identify it e regarded as ified as having a purpose generating funds, service earch project should her than as a grant toch material transfer between reallocated to the earlier work , then such interest eting the relevant part of the his detailed schedule by Any such items should be nds Note in the working papers to in the notes section and the accounting policy hen: here relevant be included quired; s Expended' should show notes 'Analysis of support without using this detailed rall charitableAnalysis of grants'. the requirement to show the

Enter the costs to be reallocated and they entries in this section as negative ent Grantmaking

Note the exemption for small charitie to analyse by activity, but may Do not make any entries in these two rows Governance section and the other resource circumstances. If advantage is taken necessary

Grantmaking [Type your text here]

Review the detailed disclosure notes in requirement to analyse institutional grant requirements, but it may be that additiona fully meet the disclosure requirements

Note the exemption for small charitie to analyse by activity, but may circumstances. If advantage is take necessary. Simply enter the total gran

onal grants – in which

d positive on the TB the grant maker or the d negative on the TB

sfers between classes of s eg from restricted fund nd how the grants made ng these objects. ted with grantmaking

s that reconcile with the

o institutions, oject being

cluded in the note in this

nature of the activities or he charity’s objectives, rts, welfare of people on the nature of the charity. vels of analysis

ich grants were made as rther analysis does s as is needed to

context of grantmaking, the er of institutional supported. This information nual Report or by means of a should be made available by

16

236 16

y will automatically appear in the relevant sections. Make the tries

es not subject to a statutory audit which is not required analyse by resource classifications to suit their s. They will automatically update when entries are made in the of this exemption, this reallocation of costs will not be es expended section

the grants section above. This schedule complies with the s, and the note ' Analysis of grants' meets the other disclosure al text is required either here or in the notes to the accounts to

es not subject to a statutory audit which is not required analyse by resource classifications to suit their en of this exemption, none of this analysis will be nts on one line

16

HAWA

Analysis by activities of total expenditure, grants, support costs and charitable expenditure Appendix 1

THIS WILL AUTOMATICALLY AUTOHIDE

Analysis of Total Incoming & Outgoing Resources by Activity SORP 122 states for the year ended 31 March 2021 'Where material, details of the types of activities undertaken to generate voluntary income should be provided either on the face Activities or in the notes to the accounts. As far as possible the analysis categories provided here should match the detailed anal Grants Public BBC Grassroots Activity 4 Activity 5 generating voluntary income.' Grant Fund Funding There are also other sections in the SORP which prescribe analysis of various items by activities, using Tables whose layo£ £ £ £ £ £ Incoming resources from generated funds ( Tables 4,5 and 6) and paragraphs 146,166/167,175/176,183/184 Voluntary Income - - - (7,785) - - Activities for generating fundsThis template provides for six activities, but many charities will have more than six. In such cases, further columns will have to be addeInvestment Income formulae are correctly maintained. - - - - - - Incoming resources from charitable activities - - - - - - Other Incoming Resources This section of the template should be printed off , in landscape format - , (by using the - 'Page setup - ' feature on the Excel '- - file ' menu),the accounts printed by the VT software. The page breaks may need manipulation, so that these tables can be bound into the accounts. Total Incoming Resources - - - (7,785) - - A description of the activity will have to be used to ~~replace 'Activity 1' etc.~~ Costs of generating funds Ensure that the page number references in the accounts include these schedules. Costs of generating voluntary income - - - - - - Fundraising trading - costs of goods and other costs Care should be taken to ensure that the activities described are consistent with those described in the trustees' report. - - - - - - Investment management costs - - - - - -

Costs of charitable activities Note the exemption for small charities not subject to a statutory audit which is not required to analyse by activity, bu - - 6,074 - - - Governance costs classifications to suit their circumstances. If advantage is taken of this exemption, none of the schedules in this appendix - - 250 - - - Other resources expended - - - - - - Total resources expended - - 6,324 - - - Net Incoming Resources by activity - - (6,324) (7,785) - - Proof this line will autohide if the cross cast is correct and agrees to the TB- see difference to right

19

HAWA

Appendix 2

Analysis of Total Support Costs by Activity for the year ended 31 March 2021

	Grants		Public	BBC		**Grassroots **	Activity	4	Activity	5
			Grant	Fund		Funding
Nature of support costs	£		£	£		£	£		£
Management		-	-		-	-		-	(250)
Finance		-	-		-	-		-		-
Information Technology		-	-		-	-		-		-
Human Resources		-	-		-	15,640		-		-
Total support costs analysed by activity		-	-		-	15,640		-	(250)
			2021
			£
The above amounts are shown in the accounts as
Support costs for generating voluntary income			-
Support costs for fundraising trading			-
Support costs for charitable activities			25,979
Support costs for grants paid			-
			25,979

The basis of allocation of costs and the methods used are described in note 10 to the accounts

Proof - this line will autohide when total support costs in accounts agree to the analysis above - see difference to right

19

HAWA

Appendix 3

Analysis of charitable expenditure by activity for the year ended 31 March 2021

	Grants		Public		BBC		Global		Activity	4	Activity	5
			Grant		Fund		giving
Nature of charitable expenditure	£		£		£		£		£		£
Actvities undertaken directly		-		-		-		-		-		-
Support costs of charitable activities		-		-		-		-		-		-
Total charitable expenditure analysed by activity		-		-		-		-		-		-

An explanation of the main features of charitable expenditure is given in note 11 to the accounts

Proof - this line will autohide when charity costs in accounts agree to the analysis above Appendix 4

Analysis of grants made by activity for the year ended 31 March 2021

	Grants		Public		BBC		Global		Activity	4	Activity	5
			Grant		Fund		giving
	£		£		£		£		£		£
Grants to individiduals		-		-		-		-		-		-
Grants to institutions		-		-		-		-		-		-
Total grants made analysed by activity		-		-		-		-		-		-

An explanation of the main features of grants paid is given in note 11 to the accounts

19

of the Statement of Financial lysis provided for the costs of Total

out is specified by the SORP £

31,996

d. If this is done ensure the -

• • and be attached to the back of -

31,996

---

ut may analyse by resource 25,979 x will be necessary -

25,979

6,017

(20,126)

19

2021 Total

£ (250) - - 15,640 15,390

(10,589)

19

2021 Total

£

---

(25,979)

2021 Total

£

---

19

Formula driven text is placed here and then refe in the main body of the accounts

This worksheet also contains reference text whic the relevant places

The trustees present their report and accounts fo

for the year ended 31 March 2021

for the period from 1 April 2020 to 31 March 202 for the year ended 31 March 2021

year

s s' present their are

The trustees acknowledge their responsibilities f

The directors who served during the year and th

for the information of the directors only

The report of the directors has been prepared in

If full provision had been made for deferred taxa

Net Movement in funds

Library of sample texts taken from real cases that may be adapted to the circumstances

A Trustees Report

A summary of the objects of the charity

Example 1

The charity's objects and principal activities association continue to be that of promoting (b th li i d l ) i t t ith th

Library document1621710332608186567.xlsx 98 02/01/2022

the relevant places (both religious and secular) consistent with the fostering good relations with other Christian den

Example 2

To advance Christian religion in accordance with to relieve poverty of persons in the area of b clothes and shelter ;

to hold church meetings on Sundays , including to hold bible studies and housegroups weekly in to continuously provide soup kitchens and food to provide free furniture distribution in *; to provide free childrens' clothing distribution in

Example 3

The object of the charity is to advance the edu West * by encouraging and promoting the recu support for, ethnic minority school governors.

Example 4

The Charity's Objects ("the Objects") are:

i) the relief of poverty amongst individuals an bodies in * and surrounding areas, the works o aged, the disabled or the infirm, or of such renovation and distribution of donated furnitu trustees think fit.

ii) the promotion directly, of a more efficient education and disseminate information to encou the Objects and thereby develop the use of mor

Example 5

The Charity's objects are to promote any char and surrounding areas ("the area of benefit") b preservation of health and the relief of poverty,

The principal activity continues to be that of pr publicly available advice to members of the pu receive through locally and nationally co-ordina is delivered through the two main sites locate based at HM Prison * and through specifically fu The Bureau’s Board, staff and volunteers re community and as part of the ongoing strat appropriate funding to meet those needs.

Example 6

The object of the charity shall be the provision inhabitants of * and * and the neighbourhoo without distinction of political, religious or othe classes, and for other forms of recreation and the condition of life for the said inhabitants; an The said land and building shall be held upon tru

Example 7

The charity’s principle activities continue to be children primarily under statutory school age by

• Encouraging parents to understand and provid groups and by offering appropriate play, educ together with the right of parents to take resp of such groups, ensuring that such groups offe

• culture religion means or ability;

Library document1621710332608186567.xlsx 99 02/01/2022

the relevant places culture religion, means or ability;

• Encouraging the study of the needs of such ch interest in and recognition of such needs;

• Instigating and adhering to and furthering the Alliance;

• To educate boys and girls up to school leaving to develop their physical, mental and spiritual individuals and members of society and that th

Example 8

a) The relief of sickness and distress amongst w of, suffering from sexual exploitation, trafficki reference to the role of pimps. Through the pro support, signposting, education and safe accom

b) To advance public education about prostitutio

The charity's aims including the change through its activities.

Example 1

The Charity aims:-

1) to benefit those less fortunate by providin without charge, thus giving them self esteem an 2) to recycle goods wherever possible.

Example 2

The charity shares the aims of the National Asso Ensure that people do not suffer through ignora to express their needs effectively, and equally;

To exercise a responsible influence on the deve By its efforts to implement these aims, the ch people living in North *, in particular throug problems with debt, sustaining tenancies and a adverse effect on their lives.

The Board is satisfied with the performance of March 2006. It considers that the charity is able and that the charity's assets are adequate to fu

Example 3

The charity's aims are the social, artistic and c benefit. For this purpose, the programmes of de four phases, of which phases one and two are structurally sound and building an extension to the first floor). The third phase of developmen existing large one plus refurbishment of toilet a

Library document1621710332608186567.xlsx 100 02/01/2022

the relevant places will be initiated in the future to provide, on th parking facility.

Example 4

The charity aims to provide pre school and w parents' require it.

Example 5

To work with parents so that they can become a and abuse of their children .

I) To help their own children get free of their abu 2) To enable them to become equal partners wit 3) To alert government and other agencies to implementation of new legislation to combat sex 4) To enhance public awareness and understand including their grooming processes and in stereotyping of girls and women in prostitution 5) To encourage and support parents to work mutual support.

An explanation of the charity's main ob

Example 1

The main objectives are the relief of poverty collecting as much donated furniture as possible to those determined as having a genuine need.

Example 2

The Bureau continues to work closely with other the * area which provide a similar service, the a advice service in the North * area. The charity the benefit of the community in * and surrou protection and preservation of health and the re

Example 3

The main objective of the trustees for the year intend to keep a close control of our financ profitability.

Example 4

The charity aimed to attract sufficient children t continued progress, within the parameters of secure sufficient external funding for its activitie and by undertaking a variety of worthwhile anc purposes.

Example 5

1. To maintain the direct support of parents in t the course of the year. To equip parents to beco 2. To develop work in other parts of the countr the work. (eg * and *)

2. In partnership with others to work with the po pimps and pimping networks through e.g. the in 4. To influence government policy, particularly i country' trafficking.

3. To increase the understanding and improv families affected by pimping

Library document1621710332608186567.xlsx 101 02/01/2022

the relevant places families affected by pimping. 6. To increase the understanding of the gener targeting and grooming - and the vulnerability o

Example 6

The main objectives of the charity are the crea the needs of those requiring advice and repres new increased and more effective work to co identified needs from 04/05 develop clear pr bodies in the city to respond to needs within the

An explanation of the charity's strategi

Example 1

The strategy is to acquire funding in order to su the work to continue.

Example 2

The Bureau has a 3-year development plan cov and strategies for implementation. The Develop The Trustee Board held a day long meeting operations and future developments and aims.

The Trustee Board has instituted a review of organized by Citizens Advice called “Benchma during the next financial year.

Example 3

Reducing costs: Staff costs to be reduced, more of energy. Enhance profitability: Creation of new spaces, market research to ascertain a valid demand. A 5 year business plan to give us a more clear, f

Example 4

The trustees seek to publicise the charity's ac grant making organisations on a systematic bas

It also makes its premises and resources availa in order that a contribution can be made to t arising from the fees for such courses.

Example 5

1 and 2. Recruit a new parent support worker a team leader/parent support worker and half tim posts, the staff will:.

• equip parents with information about the pro mediator between parents and children; gather - support parents in the knowledge that they to network days; offer telephone helpline, suppor etc.

• Convene and service a working party as partnership press for introduction of appropriate and deliver training to agencies. To speak on th

work with government and agencies; respond t

Library document1621710332608186567.xlsx 102 02/01/2022

the relevant places

• work with government and agencies; respond t 4. The research worker to continue to respond research report on the extent of 'in-country' traffi 5. To produce a training manual for practition families and to seek additional training opp organisations.

• To seek opportunities to deliver talks and also

Details of significant activities (includin provided) that contribute to the achiev

Example 1

In fulfilling its aim of relieving poverty amongs 10,000 items of domestic goods and electrical a by these accounts.

Within the goods delivered, 600 pieces of furn than 500 electrical appliances have been checke

Example 2

Activities in support of the achievement of the *

Continuing to provide and increase access to ge - Improving access to premises, including develo - Recruiting, training and supporting sufficient service

• Developing more services targeted at hard-to-

• Consolidating and expanding services at * pris

• Ensuring that the advice provided is of a high qu - Provision of a full training programme for staff

• Arrangements for the effective supervision of a

• Maintaining referral arrangements with other s

• Using information technology to assist in recor

• Obtaining feedback from clients and using this

Carrying out effective social policy work by: - Submitting client-based evidence to the social - Attending local forums to raise issues of conce - Identifying practices which exacerbate fin institutions

Example 3

Significant activities are a community café, a learning classes with possible accreditation,a ne Groups using the hall include the Darby and J Language classes, Art classes, Creative writing Watchers, maths, digital imaging, smoking cess There is an advice service and offices for Ass Learning Net and Action * Mobile. The latter is needs adults and children locally and abroad. Th The local * Villages Partnership is also based at

Example 4

The charity provides a variety of activities and c achievement of the core purposes.

In addition the programme of adult courses is v

Library document1621710332608186567.xlsx 103 02/01/2022

the relevant places In addition, the programme of adult courses is v charity to develop it courses for children.

Example 5

1. • was in receipt of a grant, initially from Th Education and Skills under its Family Support Gr Project Worker for three years full-time (2002-5 Parent Support Unit, based in *. The aim is to su sexual exploitation by pimps and to help them pursued six key activities:

(i) To identify and make contact with parents i charitable trusts, has continued to support inc and practical support through face to face me have been handled up to 31 March 2006, mainly

(ii) To equip parents with information and und young people are coerced into prostitution. T Advice to Parents, and various leaflets produce has also published a Guide to the Sexual Offenc and Pimps: Families speak out about sexual exp

(iii) To equip parents to become active player agencies in contact with their children – e.g. p build up the capacity and confidence of parents to build up collaborative links with police and so police officers in West * and South * in con collaboration with the * of * City Council. She She is discussing a joint service level agreemen

(iv) To equip parents to re-establish or improve prostitution. * continued to carry out a m conflicting perspectives into greater mutual und

(v) To raise awareness with wider groups of prostitution by pimps. * has continued to especially the media, to increase awareness o literature widely. * played a major role in th considered how children in shopping malls may matter with the authorities at one large shoppi and breaking up of the early stages of targeting

(vi) To champion the rights of parents with rele regarding their children. * continued to assist p

The Charity's grant making policies

Example 1

Not applicable as no grants are made.

Social or programme related investmen

Example 1

Library document1621710332608186567.xlsx 104 02/01/2022

the relevant places Example 1 There were no such activities

The contribution of volunteers

Example 1

The Charity has a governing board of 8 trustees of up to 10 volunteers at any one time on a re schemes.

Example 2

The Bureau benefits, as always, from the ge volunteers who are highly trained to ensure a over 48 volunteers in both advice and admin volunteers contributed a total of almost Trustees/Directors of the Board are not employ resigned from the Board due to taking up a pos Treasurer and co-opted onto the Board. There h year.

The Board wishes to express its thanks and a friends and family, who have contributed and w developing and delivering the services of the * all the funders, whose generosity has enabled t projects.

Example 3

Volunteers help with the Luncheon Club, café an The committee (trustees) is made up of volunte

Example 4

Volunteers are crucial to the operation of the ch guardians of children using the facility are enc aspects of the charity’s activities.

Example 5

• does not have volunteers working for the ch mutual support offered by parents to each ot volunteer base and this will be a part of the rol to develop in other parts of the country, * wil volunteers who would be trained to offer su volunteers will include parents themselves - th possible.

Summary of main activities of the char

The particular way in which these objects and ac

Example 1

These objects are pursued in a variety of ways, representing the church community on a num projects that are pursuing social justice and high

Example 2

To accomplish its main objectives, the charity which are capable of being redistributed, withou local or statutory authorities as having a genuin

In addition, electrical goods are collected from h safety and suitability.

Library document1621710332608186567.xlsx 105 02/01/2022

the relevant places

Within the past year, more than 3,750 collect repair or refurbishment by in house staff were d

Example 3

Core funding for the Bureaux’ generalist servic continued on an ongoing annual basis. In Ma following three years was cut by £33,000 to £2 to review its expenditure and staffing levels, a generalist advice service. The new structure, i Delivery and Development Co-ordinator and t Managers with Advice Session Supervisors at ea worked effectively.

Example 4

The charity seeks to provide facilities and oppo See previous list of the variety of courses and ev

Example 5

The main activities of the charity are the provisi 4 year olds. The charity operates from 8am to provide all day care for working parents or sess objectives.

A babies and toddlers group meet once per w Matters framework.

Wraparound care is provided for primary schoo walking bus service between school and the c children up to the age of 14 years within approx

A wide range of adult learning courses are off classes in order to support the core activities.

Example 6

In relation to object (a):

• support of increasing numbers of parents

• dissemination of information

• building capacity and confidence of parents to

• mediating role between parents and children

• assisting parents to enjoy rights

In relation to object (b):

• increasing awareness of issues through media

• training for other service providers

• contribution to public policy and its implement

• research and publication, e.g. Parents, Children

• third national conference

• website updates

A review of charitable activities undert

Example 1

The staff of the Charity have continued to op donated furniture and white goods to those statutory and support agencies who act for peop

Library document1621710332608186567.xlsx 106 02/01/2022

the relevant places

Over the year 2,483 families have been able without any financial charge to themselves. cookers, washers, fridges etc) were refurbishe furniture.

The Charity has continued to provide a servic goods to those less fortunate within the City resources permit. Accompanying this servic conjunction with the local authority to re-use wh

Example 2

We do not, as a rule, undertake charitable a charities to achieve their objective.

Example 3

The charity has held a successful ball, holds m hall.

Example 4

1. General

The charity operates from the newly refurbishe different groups of people of all ages and abiliti the surrounding villages of South * and North * towns of , * and . Staff, tutors and voluntee employment within our catchment area and esta

2. Pre-school

Pre-school education is being provided in line offers two full pre-school sessions each day, s breakfast and after school clubs. The Centre h olds. The Centre was running at full occupancy acceptable in the remaining morning and after been recruited to develop the children’s group groups.

1. Breakfast / After-School and Holiday Clubs The Before and After School Club has increas valuable facility to a large number of workin attended and have included some very popular reputation.

4. Adult Education

In the last year, the Centre has run various co targets and outcomes agreed with the Learning the community’s interest in life long learning.

Example 5

• functions largely through the grants it receive for every year it states what it hopes to achieve its performance against these criteria. It has funding bodies. This is true for 2005-6. Exampl this report, we refer back to the earlier section achievements and performance. It should b qualitative criteria are more prominent than qua and befriending them; helping them to assess a to deal with their trauma and gain confidence themselves and to link up with others affecte support, in relating to agencies as valued partne

Library document1621710332608186567.xlsx 107 02/01/2022

the relevant places

Fundraising activities

Example 1 where there is no fundraising (

The charity relies on grant aid from the donors There have been no other fundraising activities.

Example 2

The only fundraising activities carried out were

Example 3

Fundraising activities included a Ball, tea dances

Example 4

The charity has been supported by grants from fundraising events including the Annual Ball to s

Investment performance achieved agai

Example 1

The trustees have adopted a statement of inve the section of the trustees' report relating to inv

The investment performance is monitored quart investment principles. The capital return achiev externally was 5.0% during 2005.

The market investments are primarily with XYZ discretionary manager of equities to limit comparator.

Monitoring

Each of the investment managers provides a including comparisons with appropriate externa Subcommittee meets at least annually with th detail and consider any other wider or strateg managers consider appropriate.

The Investment Subcommittee will keep the m review and report to the board of trustees at le monitoring or any other material change of po consider.

Example 2

There are no investment policies and objectives

Example 3

The Bureau has complied with its investment section of this report by retaining the bulk of an Base Rate Tracker Account. The remainder of th account to enable it to discharge its outgoings a

Factors relevant to the achievement of

Example 1

Factors affecting the performance of the Char formulating their strategic plan, particularly rel

Library document1621710332608186567.xlsx 108 02/01/2022

the relevant placesg g p , p y the City or the support agencies determine t Authority withdraw its support then the Charity manner should all donations of furniture be dive would have to implement measures in place to c

Example 2

Objectives have been achieved with the assistan - Continued funding from * City Council, * Spe giving bodies and organisations with which the b - The continuing contribution of the volunteer w - A committed and stable paid staff base

• The co-operation of partner agencies

The achievement of the Bureau’s aim of establi the identified premises ultimately proving unsui made in 2006-07.

Example 3

To become a self-sustainable enterprise. To ac volunteers.To continue to access new funding s development programme.To continue to inte consultation to identify demands of provision an local community so that they can actively part management team/ trustee.

Example 4

• Monitoring of fixed costs i.e utilities etc

• Encouraging private hiring of the hall

• Maintenance of hall including preventative ma

Example 5

• The existence of similar organisations in neig charity.

• Staff turnover and the impact of maternity lea

• The continuance of long term funding by publi

• Demographic changes in the local community.

Example 6

(i) There is a continual struggle to combat agencies, the media and the general public. (ii) One main negative factor is the difficulty o to develop the work of *. It proves particularly mainly in one local authority area and therefo need national funding but tend to fall between providing sufficient ‘education’ for parents; yet pimps. In the Home Office we are not regarded the children and young people. * would argu supporting them in the long run may be the m people.

(iii) * is a small organisation, with great demand not easy to remain focussed. We need some ad

Summary of the main achievements of

Example 1

Library document1621710332608186567.xlsx 109 02/01/2022

the relevant places Example 1

The charity has replaced a van , minibus and ca time employee.

Example 2

The charity has :-

• Addressed the under representation of Black a

• Encouraged the take up of training for potentia

• Carried out information sessions in the commu

• Continued to operate a mentoring scheme

• Supported the work of local governor forums in

• Developed governor work in * and *

Important events during the period include :- INSERT Other key events with significant input from the INSERT Other significant work INSERT

Example 3

Warehouse of furniture and clothing distribution warehouse building will no longer be available s

A search for replacement premises is proceeding

Other church members continue to assist in oth

Two minibuses were acquired this year, one as with funds from a charity who wished to remain

Children's outreach ( s Club) continued through to lack of adult help in .

The pastor became a full time paid employee fro

Example 4

The Charity has continued to provide a servic goods to those less fortunate within the City resources permit. Accompanying this servic conjunction with the local authority to re-use wh

Example 5

The Bureau assisted people to claim an additio through 178 representations at appeal tribunals

The Bureau assisted clients in the management 149 Clients were assisted to retain their hom action .

63 clients were successfully represented at emp

The Bureau established two new projects – the Centre - and was successful in obtaining con Training Project, Financial Skills Project and for Pension Education Fund for a project due to star

During the year, the Bureau recruited 17 new paid employment in advice work or a related fie

Example 6

Library document1621710332608186567.xlsx 110 02/01/2022

the relevant places p

The main achievements of the charity during t for capital investment for the sum of £* from * mainstream expenditure in the year 2006/2007. Restructuring the staff situation within the substantial saving in salary expenditure. We e activity in using the available space.

Example 7

Our main achievements have been a successful all maintenance work carried out and main fire d

Example 8

Subject to the limitations described above, wh main achievements:

• support of increasing numbers of parents - nea

• increased dissemination of information - includ

• building capacity and confidence of parents to

• mediating role between parents and children

• assisting parents to enjoy rights

• increasing awareness of issues through media

• training for other service providers; increase major conferences

• contribution to public policy and its implem 'Paying the Price' and the more recent 'Traffickin

• research and publication, e.g. Parents, Children

• third national conference .

• increased national recognition e.g. by ACPO (A

Significant changes and developments and plans for the future

Example 1

Important developments during the period inclu Board, the * Trust and the local authorities in the

Example 2

The charity plans to introduce separate children The charity plans to purchase a building to acco The charity plans to lease vehicles in the future.

Example 3

*s objects and broad aims, as set out on pages aims and the differences * seeks to make in so case:

1. To work with parents so that they can co exploitation and abuse of their children. Stra work of the Parent Support Worker, and to deve country in collaboration with other agencies.

2. To work with parents to help their own childre

Library document1621710332608186567.xlsx 111 02/01/2022

the relevant places

with information about the processes of targ between parents and their children to keep systematically and arrange additional support fo

1. To enable parents to become equal partne knowledge that they too are experts; to advo agencies, particularly police and social servic relevant agencies.

2. To alert government and other agencies to th combat sexual exploitation; highlighting the im encouraging consistent best practice. Strateg Worker to develop further relations with strateg and to respond to further government consultat implementation.

Nature of the Governing Document and

Example 1

The charity is constituted as a company lim memorandum and articles of association. The charity. Eligibility for membership of the cha governed by the memorandum and articles of a document on the operation of the charity or on general charity law.

OR

The restrictions in the charity's activities impose

Example 2

The Charity is an unincorporated association go the charity, and membership of the board of t restrictions in the governing document on the o other than those imposed by general charity law

Example 3

The Charity is incorporated and governed by its

The Charity has a Management Committee of responsibility for policy and major decision mak

Day to day management and responsibility fo General Manager. There are 8 full time and 3 p employment trainees.

The methods adopted for the recruitme

Example 1

When new or additional trustees are required t to submit nominations and subject to their Association they are considered by the governin

Example 2

Other than the Trustees and those persons co related parties.

Details of transactions with related parties are remuneration and expenses paid to Trustees. The Trustees are appointed at the Charity’s An

Library document1621710332608186567.xlsx 112 02/01/2022

the relevant placese us ees a e appo ed a e C a y s third AGM following the AGM at which they were is filled by co-option of a person onto the board Annual General Meeting. The District Manage authorised in the governing document. No third

Example 3

New trustees are recruited from Village Hall reg The appointment of new trustees is proposed meeting by the members.

Example 4

• seeks to appoint trustees who have relevan included ensuring that those directly affected b is complemented by appointing as trustees administration or relevant professional experien trustees almost from inception

Example 5

Election onto Executive Committee entitles Trus

The policies and procedures adopted fo

Example 1

Prior to being elected nominees are invited to a the warehouse premises, to meet trustees and m

Should they be appointed they are provide Commission and Companies House as well as the content of work for a trustee.

Following this arrangements are made, on a deemed to be of advantage to any trustee.

Example 2

To enable the Bureau to meet those needs, staf to deliver quality advice and service to the Association of Citizens Advice Bureaux (now k review every three years to demonstrate it me national association. The last review was carried

Example 3

We have at the moment no policy or procedure don'ts" publication provided by the charity.

Example 4

All new Directors are provided with an informat articles of association, reserves, financial pe marketing plan. All directors are asked to sign a individual and how the directors as a group will

Example 5

• is currently seeking new and younger trustees e.g. legal knowledge and additional fundraising – by approaching known individuals who migh requirements to the * CVS. New trustees will joining the management committee as observe

Library document1621710332608186567.xlsx 113 02/01/2022

the relevant placesjoining the management committee as observe also be given information about the role and re Commissioners

Example 6

First meeting a new trustee attends with Obser Membership Pack.

The organisational structure of the cha

Example 1

The pastor retains oversight of all church matte trustees.

Trustees meet regularly on a monthly basis thereof. Matters of general concern are raised w

All matters are subject to prayer and God's direc

Example 2

The board of trustees meets monthly as a full b activities of the charity in terms of finance, theo committee comprised of the honorary officers subgroups make recommendations to the board of the charity have delegated authority to carr board. Financial standing orders give necessary

Example 3

Subject to the provisions of its constitution, the committee, which meets not less than once eve

The committee are elected at an Annual Genera

a) 10 community representatives ( 2 from ea Parents' Associations or other community based

b) 2 representatives from the Racial Equality Co

c) 1 representative from each of the West * LEAs

d) 3 co-opted members

All questions at any meeting are determined by each member having one vote. In the event second vote as a casting vote.

Example 4

The Charity has a Management Committee of responsibility for policy and major decision mak

Day to day management and responsibility fo General Manager. There are 8 full time and 3 p employment trainees.

Example 5

The Bureau is managed by the Board of Dire charity. The Board met on nine occasions th

Library document1621710332608186567.xlsx 114 02/01/2022

the relevant places

committees, ‘Finance’ and ‘Staffing’ comprisi reference for both sub-committees were confi meets on a quarterly basis to set and monito matters in depth. The staffing sub-committee m general staffing matters and to set human reso occasions. Ad hoc working groups are establ promptly to the Board and decisions are ratified to the District Manager who is supported by a Delivery and Development Co-ordinator, two Ad administrative support staff.

Example 6

We have a board of trustees which also acts as sub-group is formed called "the executive group and reports to the board of trustees.

Example 7

Directors and Committee meet regularly on a implementation thereof. Matters of general conc The Directors are elected at an Annual General

a) A Chairperson, a Treasurer and a Secretary. b) Not less than 2, nor more than 9, elected Mem c) If they so decide, not more than 3 Members m

All questions at any meeting are determined by each member having one vote. In the event of a vote as a casting vote.

Not less than 60 per cent of the Directors, inclu or co-option be family Members. In the eve Members in General Meeting may elect Affiliate those Affiliate Members being approved by the l

The Directors and Committee shall be elected f Retiring Directors are eligible for re-election u capacity for six consecutive years.

Membership of a wider network

Example 1

The Charity has no responsibility for nor is it ans

Example 2

The Bureaux is a member of the National Assoc Advice. The Bureaux is one of the participating B

Example 3

We network with other organisations within the

Library document1621710332608186567.xlsx 115 02/01/2022

the relevant places Relationships between the charity and

Example 1

The Charity has a trading subsidiary with which The only other related parties are trustees and t

Example 2

Other than the Trustees and those persons co related parties. Details of transactions with rela This includes remuneration and expenses paid t

Example 3

We have no related parties or subsidiaries.

The major risks to which the charity is systems to mitigate risks

A SUGGESTED GENERAL STATEMENT AS RE FOR THE SORP 2001

(and has not been replaced by subsequent gu justification for omitting further description whe

The trustees identify the major risks to whic preparing and updating a strategic plan, in part the charity. The trustees then review any ma systems to mitigate those risks. The charity is s exposure to the major risks which have been so

SPECIFIC ALTERNATIVES THAT MAY THEN B

Example 1

The charity is not exposed to risks involved in income from investment capital. The review o these are incorporated in the Investment Princip

Example 2

The charity is open to the usual financial risks controls to minimise these risks, such as two si account. In addition, the accounts are regularly member's inspection at any time.

Example 3

Work with children and vulnerable adults is o counselling is done in pairs, as is children's' wor

Example 4

New workers are vetted and any problems discu the Criminal Records Bureau

Example 5

Risk factors would arise should there be no adequately housed with sufficient furniture an donations of furniture and household goods we carry out the function themselves. Regular me confirm that the need for our services is still on alternative operators. Whilst there is no way adequate financial reserves are held to enable should the occasion arise.

The trustees are assisted in their annual review trustees on any matter that comes to light in t an intrinsic part of the audit

Library document1621710332608186567.xlsx 116 02/01/2022

the relevant places an intrinsic part of the audit.

Example 6

The major risk of this charity is to trade insolve owns its asset and freehold.

Relationships with other groups, charit

Example 1

There is a monthly open church meeting for all *

The charity works with * and * with the homeles

Example 2

The charity works closely with the five local auth ** in order to address under representastion governors.

The charity uses the regional conference to parents and community groups.

Example 3

The Charity has developed working links with m who request help on behalf of their clients, as out similar work and the local authority.

Example 4

Our relationship with other charities and group required for which they will incur a fee. Occasio reduced rate depending on need and ability to members of the local community or charities of

Example 5

We have an ongoing relationship will all local org

Example 6

• is virtually unique in its focus on the disru affected parents, but is similar to many othe suffering from sexual exploitation, trafficking or contacts with such organisations, locally and learning, and to avoid duplication of effort.

Policies on reserves.

Example 1

The trustees have resolved to establish reser funding for the expected expenditure for six mo

The policy on reserves is that the existing ass wholly utilised to support existing activities. The or reduce the capital significantly from £Y. This income at the present levels in order to maintai

Example 2

The trustees have resolved to establish reserv

Library document1621710332608186567.xlsx 117 02/01/2022

the relevant places The trustees have resolved to establish reserv have wide powers of investment.

Within those powers, a policy has been determ income which is wholly utilised to support existi to restore the balance of the capital held in ord activities of the Charity.

Reserves held are considered only sufficient t further income fail to materialise and are hel policies have not been considered, as the Chari short term requirements.

Example 3

The company is limited by guarantee and there Development planning a Reserves Policy has be - Unrestricted Reserve – to build enough to cove - Contractual Reserve – to cover legal & contrac redundancies

• Equipment Reserve – to cover equipment repla - Restricted Reserves - for funds restricted by do of the bureaux

In the financial statements, the first three item they are not subject to any restriction in law.

Example 4

We have no designated reserves.

Example 5

To have a sum equal to the annual turnover in re Note that good practice requires that spec general statement as above.

Funds in deficit

Example 1

Unrestricted revenue funds are in deficit, but a unrestricted funds are in surplus, which means conditional sale of the properrty does not proc almost eliminating the deficit. If the sale does p The actual deficit is small in absolute terms, position.

Example 2

We have no funds in deficit.

Principal funding sources and how expe supported the key objectives of the cha

Example 1

Principal funding sources are the local authori trusts.

Whilst the majority of funding has been as charitable trusts has led to an overall reduction

Example 2

Grants and donations were received from a var

Library document1621710332608186567.xlsx 118 02/01/2022

the relevant placesGrants and donations were received from a var Detailed Statement of Financial Activities on pag

The '*' club operated by North * CAB has contin up shares. All the profits made by the * club, a volunteer expenses.

Important transactions during the period includ * Specialist Advice Services and the Community

Example 3

Principal funding sources are income from act funding is related to capital development. Our solvent.

Example 4

Our principle funding sources are monthly tea hall to sports and leisure clubs and the annual v

The investment policy and objectives, i environmental or ethical consideration

A SUGGESTED INVESTMENT POLICY FOR A THIS COULD BE ADAPTED FOR A SMALLER

Statement of Investment principles

1. Background

The Charity is an incorporated charity whose a assets in the form of investments and property. The current financial policy is to use the build further the objects of the charity.

2. Investment Objectives

• In order to guide the investment strategy the bo * to protect a steady annual income which a activity of the charity over the long term

• to follow an investment policy designed to inflation and protects the real value of cap

• to follow a policy which provides high secu commensurate with the ethical guidelines o

3. Risk

The assets of the charity will be exposed to v following risks when agreeing their strategy:

• The risk that investments will not deliver t values expected

• The risk that the properties or investment projected.

4. Investment Strategy

The strategy adopted is to invest the assets in The investments are held and managed by inv day to day management of the assets.

The current proportions adopted are approxi investment markets, which are primarily equit the achievement of the investment objective return.

Library document1621710332608186567.xlsx 119 02/01/2022

the relevant places

5. Ethical position

The charity has adopted the same ethical guide to the discretionary managers are to comply wit

6. Day to day management

Any changes to the directly held property po obtained advice from qualified professionals. Th a more extensive property portfolio is not antici

The majority of the invested assets are held in t the Church of England ethical guidelines. The capital growth. The Fund is predominately inves 66.2% in UK equities, 15.9% in overseas equit Expenses of management are deducted within t

The investment manager has a fully discretiona the ethical guidelines. The manager aims to pro mix of UK and overseas equities and other colle of discretionary management are met throug reduced rate of commission the manager earns

Example 2

Investment policies have not been determine purposes.

Example 3

As the income of the Bureau is almost entirely the provision of ongoing services for which acc determined that such funds should be held in a in an interest bearing Deposit account.

Example 4

We do not have any investment policy. All our reinvested in the charity.

Example 5

In order to guide the investment strategy the Bo - to protect a steady annual income which allow charity over the long term;

• to follow an investment policy designed to pro protects the real value of capital over the long t - to follow a policy which provides the highest se

Risk:

The Board considers that it is not proposing exp years. The risks are that sufficient funds will make every effort during the coming years to and ongoing funding after that for existing work

Investment strategy:

The strategy adopted is to invest an appropriate the * Building Society, in view of its current rate Social, environmental and ethical considerations

Monitoring:

The Treasurer will monitor the performance of th

Library document1621710332608186567.xlsx 120 02/01/2022

the relevant places

Availability and adequacy of assets of e

Example 1

The board of trustees is satisfied that the charit fulfil its obligations in respect of each fund.

Accounting policies Sample Texts for resou

Sample AA1

Costs of generating funds

The costs of raising and generating funds shall fees incurred in respect of investment managem

Sample AA2

There are no costs that are attributable to the g

Sample AA3

The direct costs attributable to fundraising

Sample BA1

Charitable expenditure

Charitable expenditure shall include all expend charity including the following :-

Grants payable in furtherance of the charity's ob

The Charity receives grant applications from a application is considered by the board of trustee board may accept or reject the application or ac

Although there is no legal liability to pay any gra it is open to the board to withdraw an approv payment of a grant , the accounting treatmen specifically to the client's activities in the curren upon approval , and to include grants relating t financial committments shown in note INSERT

At 31st December 2001 there were £*** of creditor for this sum is reserved in the accounts

Activities in furtherance of the charity's objectiv

The cost of goods and services and ancillary charitable activities.The Manager and Assoc development and therefore the relevant sala expenditure.

Support costs of activities

Support costs of activities for charitable pur Manager and the Associate Manager as they a other project costs

Library document1621710332608186567.xlsx 121 02/01/2022

the relevant places other project costs.

Sample CA1 A leasehold property previously occupied by the Governance costs this asset has been transferred at written down Governance costs shall include all expenditure including expenditure incurred in the man administration and compliance with charitable a

Sample DA1 Allocation of costs within types of resource

There are a number of costs, including staffing c precisely between administration and charitab costs on the basis of reasonable estimates as fo

Staffing costs and related expenses

On the basis of salary costs, and hours spent on

Premises costs and related expenses

On the trustees estimate of space allocated to d

Sample DA2

Allocation of costs within types of resource

The charity's operating costs include staff co allocated between types of resources exp management and administration on the basis of

The bases of the estimates used were :-

Sample DA3 Allocation of costs within types of resource

Administration expenditure includes all expen respect of certain items of expenditure it is a direct charitable expenditure or are adminis consider to be reasonable judgements in apppo

The bases of the judgements used were :

Sample DA4

Allocation of costs within types of resource

The methods and principles for the allocation a activity categories of resources set out above contributes to the particular related source of i specific activity, whereas all other costs are allo

Stocks and work in progress

Example 1

Stocks are valued at the lower of cost or net considered to have no material value for accoun

Accounting Policies - Capital Grants - worked example EA1

A Charity receives two capital grants or gifts of

Library document1621710332608186567.xlsx 122 02/01/2022

the relevant placesy p g g on the asset's future use or disposal. The oth disposal.

In the SOFA , incoming resources is credited w restricted purpose that they must be expende incoming restricted funds.

In the SOFA, in the rnasfer of funds section. £30 funds, with £10,000 going into designated fixed asset funds.

Assuming no depreciation in year 1, and ignorin will then be fixed assets £30,000, restricted fixe £10,000 and unrestricted revenue reserves nil.

A contingent liability note will be shown in res contingent repayment. The fixed asset notes wi

Assume straight line depreciation of 25% The b restricted fixed asset funds £15,000, restricted reserves of nil and the SOFA will show a depreciation of £7,500 as a cost, and a tran revenue reserves of £5,000 and from designate of £2,500, showing a net nil movement in unres

A contingent liability note will be shown in res contingent repayment. The fixed asset notes w shown as a creditor instead of a contingent liabi

Subsequent years will follow the same principles

Sample EA2

The board of trustees consider that , in orde Practice for Accounting and Reporting issued b (effective October 2005), gifts of tangible fixed purposes and fully utilised in the furtherance o relevant fixed asset fund after the sums have be related asset is shown in the balance sheet at th

If the related assets are subject to restrictions disposal, then these restrictions are noted in circumstances, the fixed asset fund created related assets are depreciated, then a trans unrestricted revenue reserves to reflect the dim year, a sum of £ (2005 - £) was transferr revenue reserves.

If the related assets are not subject to restrictio disposal, then the fixed asset fund created related assets are depreciated, then a trans unrestricted revenue reserves to reflect the dim £*) was transferred from designated fixed asset

Any residual liability to the donor arising from, contingent liability unless the event that would which case a liability for repayment is recognise

Library document1621710332608186567.xlsx 123 02/01/2022

the relevant places y p y

g

Insofar as this policy relates to Government gra the Statement of Standard Accounting Practice that it is in order to comply with the Statem Reporting (effective April 2005) issued by the Ch

Non returnable deposit on possible sale

The receipt of a none returnable deposit on th recognised as income on the grounds that it wil incentive to enter into the conditional contr unrestricted fixed asset funds on the grounds t then the capital receipt will be reduced by this a

Accounting for branches

The branches operated by the charity at *, * and

Text of SORP re fixed assets para 253 to 278

Tangible Fixed Assets (other than Investme SORP paragraphs 253 to 278

253 FRS 15 “Tangible Fixed Assets” requires tha (a) all tangible fixed assets should be capitalis sheet at cost or valuation;

(b) tangible fixed assets may be periodically rev

(c) subsequent expenditure which enhances ( fixed assets should be capitalised.

254 Within charities, tangible fixed assets (oth held for charity use (including those used for those classed as heritage assets (Glossary GL 3 for inclusion of tangible fixed assets in the b definition of an asset and should be recogni However, particular considerations arise where obtained at significant cost or where suc recommendations for the accounting treatment 294.

General Rules for Tangible Fixed Assets

255 Tangible fixed assets should initially be inclu (a) The cost of acquisition including costs that working condition for their intended use. This construction of such assets but only where the fixed assets and capitalisation of interest shoul whether assets are bought outright or through h (b) If a functional fixed asset is acquired in full included at its full acquisition cost (or in the c charity’s share in the asset (see paragraph 416) (c) Where functional fixed assets have been don their current value at the date of the gift and (see paragraph 111) as an incoming resource. (d) Where functional fixed assets are capitalise result of a change in accounting policy, they s which the gift was included in the Statement o However, if neither of these amounts is ascert current value to the charity should be used. Su

Library document1621710332608186567.xlsx 124 02/01/2022

the relevant places

carrying amount and will not be regarded as a re 256 Where the net book value of a fixed ass impaired and should be written down to its re paragraphs 267 to 272.

Rules for Mixed use of Fixed Assets (Funct

257 Where land and buildings are held for m partly as investment, the balance sheet categor primary purpose for holding the asset and the criteria for balance sheet analysis should be ado (a) Land and buildings held primarily for charit should be regarded as functional fixed assets a asset is wholly or mainly used for charitable pur (b) Land and buildings held primarily for inves wholly or mainly used for investment purposes category of the balance sheet.

(c) Land and buildings which contain clearly purposes ie. partly functional and partly investm apportioned and analysed in the balance sheet

Depreciation of Tangible Fixed Assets (othe

258 Most tangible fixed assets depreciate; that reduction in their useful life through use, the gradually expended over their useful economic of an annual depreciation charge in the Statem sheet as accumulated depreciation deducted fro 259 Tangible fixed assets held for use by the ch be depreciated at rates appropriate to their us depreciation arise where any of the following co (a) the asset is freehold land which is considered (b) both the depreciation charge and the accum (i) the asset has a very long useful life; or

(ii) the estimated residual value (based on price revaluation) of the asset is not materially differe If depreciation is not charged because of imma an annual impairment review (except for chariti (c) the assets are heritage assets and have not 279 to 294).

260 The useful economic lives and residual val the accounting period and, where there is a depreciated over its remaining useful life. 261 Where a fixed asset for charity use compris different useful lives, each component should b over its individual useful life.

Revaluation of Tangible Fixed Assets (othe

262 In accordance with FRS 15, tangible fixed a be revalued unless the charity adopts a policy o it need not be applied to all fixed assets it must if an individual fixed asset is revalued, all other assets can be narrowly defined, within reaso paragraph 273).

263 When an asset is donated or when it is ca policy, its initial valuation will not be regarded class of such assets to be revalued.

264 Similarly, where a charity was holding requirements first applied, (for accounting perio be regarded as a revaluation and no requireme unless the trustees so choose.

265 Where there is a policy to revalue fixed ass The trustees may use any reasonable approach obtaining advice as to the possibility of any

Library document1621710332608186567.xlsx 125 02/01/2022

the relevant places obtaining advice as to the possibility of any Where a charity has a number of such assets, it a rolling basis over a five-year period. Independ in the case of a charity, which instead may obt could be a trustee or employee (see Appendix 2 266 In the case of assets other than propertie second-hand market for the asset, or appropria with reasonable certainty by an appropriate p internal or external to the charity. Where this m updated annually. As an alternative to market replacement cost (see Glossary GL 18).

Impairment of Fixed Assets for Use by the

267 On rare occasions a functional fixed asset m (net book value, at cost or valuation) is higher would require it to be written down to its recove of the net realisable value and the value in use. 268 Value in use is normally the present value asset’s continued use. However many charitie purpose of generating cash flows either by the cases it is not appropriate to measure the value future cash flows. Instead an alternative measu as the intrinsic worth of the service delivery or determine its own measure of service deliv consistently operated.

269 Impairment reviews should only be car recoverable amount of a functional fixed asset far as possible, be carried out on individual as assets can be grouped

(see FRS11 paragraphs 24 to 28). Events or cha

(a) physical deterioration, change or obsolescen (b) social, demographic or environmental cha charity;

(c) changes in the law, other regulations or s charity;

(d) management commitments to undertake a s

(e) a major loss of key employees associated wi (f) operating losses on activities using fixed asse 270 Where an impairment review is required, value of the asset. If this is lower than the considered. If the value in use is considered to valued at the net book value. If a decision is expected net realisable value.

271 Value in use calculations should not be us instance when a new specialised asset is purcha it is unlikely that it will suffer an impairment in s 272 Where there is an impairment loss that ne in accordance with the requirements of FRS methods for some assets). The loss should be t Statement of Financial Activities in accordance the asset should be depreciated over its remain

Disclosure

See the fixed asset notes in the notes section fo

Library document1621710332608186567.xlsx 126 02/01/2022

the relevant places

Text of SORP re heritage assets para 279 to 294

279 FRS 15 requires that all tangible fixed ass paragraph 253). In principle this includes tang scientific importance that are held to advance p 280 However, charities will not necessarily nee that were acquired in past accounting periods circumstances in paragraph 283 below apply. 281 To fall within the definition of heritage a pursuit of preservation or conservation objectiv a preservation or conservation nature, or the h such as educating the public in history, the arts 282 Newly purchased heritage assets should be 283 When heritage assets were acquired in pa difficult or costly to attribute a cost or value excluded from the balance sheet if:

(a) reliable cost information is not available and reliability; or

(b) significant costs are involved in the reconstr valuation which are onerous compared with the assessing the trustees’ stewardship of the asset 284 The assessment of the costs involved in es the benefits derived by users of accounts consideration of any material sub-classes of as the cost/benefit test may not be practical to a considered in the context of particular parts or the context of a general museum valuing a foss of vintage cars may not.

285 FRS 15 provides details of appropriate va structures or sites may present particular valua valued using depreciated replacement cost (s attempting to estimate the replacement cost historic buildings. The uniqueness of certain str events, individuals or periods in history may be potential. The same service potential in terms public may only be achieved through the origina 286 Examples of heritage assets for which a cos (a) museum and gallery collections and other co (b) medieval castles, archaeological sites, burial 287 It may also be difficult or costly to attribu donated where such assets are rarely sold on party who then shortly afterwards donates the considered as reliable cost information and cou donations of similar assets. Where an asset is p reasonable estimate of the cost or value to the lifetime transfers of significant value may also c provide sufficient reliability

Library document1621710332608186567.xlsx 127 02/01/2022

the relevant places provide sufficient reliability.

288 Heritage assets should be included in a se analysed, in the notes to the accounts, into artefacts, and historic houses. An appropriate with paragraphs 258 to 261. As explained in p indefinite useful life and a high residual value re 289 Where assets of historical, scientific or a preservation or conservation purposes, they c assets that do not fall within the heritage assets (a) holds and occupies an historic building as its investment portfolio unrelated to any preservati (b) has in its possession works of art, or a col within its boardroom, as a store of wealth, the preservation or education;

(c) occupies a functional property that is used to (unless the property itself is held for preservatio 290 Charities may be required by trust law to r are effectively prohibited from its disposal w inalienable. Inalienability, of itself, does not prec 291 Inalienable assets that do not fall within th and disclosed in the relevant categories of balan (a) An investment property will be included as a market value and disclosed as part of investmen (b) Functional properties used by a charity in u fixed assets and are included at cost or valued o when a depreciated replacement cost (see Gloss (c) Tangible fixed assets other than properties a 292 Inalienable assets, by their nature, will permanent endowment.

293 Abbeys, Monasteries, Cathedrals, historic meet the heritage asset definition as the prese the primary objective of the charity. Such asse activities of the charity and this may give rise to cost of construction of an asset that has the sam a new structure could recreate the floor area an a structure would not recreate the uniqueness significance. In such cases a valuation of previ the notes should contain a statement to that eff cannot be applied. Similar issues may arise associated with such structures eg religious art

Disclosure

For disclosure requirements see the Notes sectio

Text of SORP re investment assets para 295 to 307

Investment Assets

Library document1621710332608186567.xlsx 128 02/01/2022

the relevant places Investment Assets

295 Investment assets (including investments a held for investment purposes) should be classifi where the intention is to realise the asset witho it should be reclassified as a current asset. The held with the overall intention of retaining the benefit of the charity in the form of income and Valuation of Investment Assets

296 All investment assets other than programm be shown in the balance sheet at market value described below. Market value best represents a charity, given the duty of the trustees to admini the best investment performance without undu All changes in value in the year, whether or not on investment assets” section of the Statement 297 Most freely tradable investments will hav recognised stock exchange. For investment ass price the trustees should adopt a reasonable ap (a) Shares in unlisted companies may be valued earnings or the dividend record, as appropriate. (b) Where the cost of obtaining a valuation by o to the users of the accounts, or lacks reliability, 298 For investment assets other than shares o reasonable approach to market valuations which to obtaining advice as to the possibility of any m there is a material movement the assets must assets it will be acceptable for valuations to be c

Disclosure

See the Notes section under Fixed asset investm

The SORP rules on income SORP paragraphs 94 to 117

General Rules on the Recognition of Incom

94 Incoming resources - both for income and Statement of Financial Activities when the effect in the charity's assets. This will be dependent on (a) entitlement - normally arises when there is c enabling the charity to determine its future app (b) certainty - when it is virtually certain that the (c) measurement - when the monetary value sufficient reliability.

95 All incoming resources should be reported working at the charity’s direction) or its agents charity by individuals not employed or contracte charity are the proceeds remitted to the charity expenses.

96 Within the charity sector entitlement to in transactions varying from contractual (ie in exc value between a seller and a purchaser) to the given to use on any of the charity’s purposes). 97 This SORP seeks to provide guidance on h However, judgement will still be required in d framework and in identifying those factors that for their recognition. The recommendations pro

Library document1621710332608186567.xlsx 129 02/01/2022

the relevant places for their recognition. The recommendations pro principles should be applied in the context of tr charity sector. In order to understand how arrangements, charity trustees need to determi

• What legal arrangements (eg contract or trus any disputes arising are to be settled.

• Whether entitlement to the funding requires performance related grant).

• Whether funds can be used for any of the p used for a specific purpose.

Contractual Arrangements

98 Some charities earn income by providing go charitable activities. Such contractual income is of Financial Activities to the extent that the ch such incoming resources are received in advan resources until the goods or services have b received in advance

should be deferred (Glossary: GL 15) until the ch 99 Certain grant funding arrangements may co performed by the charity. The terms of such fu where the conditions for payment are linked to units of output delivered, for example, number used by beneficiaries. Entitlement to the incom grants (Glossary GL 45) may be conditional upo such circumstances should be recognised as in provided the services or goods.

100 Simply because a grant is restricted to a mean it should necessarily be recognised as a p grant entitlement to the incoming resource on identified as a condition for the grant. Entitle performance conditions are met. This can be co charity may expend funds to particular purpose to be delivered by the recipient charity as a co restricted grants are recognised on the basis set 101 Where charities receive membership subsc may effectively buy services or access to certai is that of a gift, the incoming resource should b subscription purchases the right to services or b as the service or benefit is provided. If the subsc period of membership then recognising such m of time covered by the subscription may be recognition.

102 Charities may also, on occasions, undertak length of time taken to complete such contrac incoming resources and the cost of any reso accordance with the guidance given in SSAP 9. 103 Application Note G to FRS 5 provides speci contractual arrangements. A charity should performance under a long-term contract when consideration. This should be derived from an a provided to its reporting date as a proportion contracts where costs incurred to date reflect th be appropriate to calculate incoming resources proportion of costs incurred to date in compari may be appropriate to use the time spent as a contract where this provides a reasonable e entitlement. The incurrence of costs by the c revenue.

Grants and Donations Receivable

104 A pre-requisite of recognition of a prom Evidence will normally exist when the grant is demonstrable, and no conditions are attached

Library document1621710332608186567.xlsx 130 02/01/2022

the relevant places

resources once the criteria of certainty and mea 105 Charities often receive grants or donations the entity has unconditional entitlement (contro either within the recipient charity's control or meeting such conditions is within the charity conditions will be met, then the incoming resour to whether the recipient charity can meet cond not be recognised but deferred as a liability unt met.

106 For example, a grant may be conditional on successful planning consent. Meeting the cond certain or wholly within the control of the rec unconditional entitlement (control) of the inco incoming resource and corresponding asset sh been met.

107 Conditions such as the submission of acco simply an administrative requirement as oppos of incoming resources.

108 Incoming resources may also be subject period in which the expenditure of resources ca charity's ability to expend the resource until th advance of a grant for expenditure that must accounted for as deferred income and recognis the recipient charity is allowed by the condition 109 Where the existence of a condition pre contingent asset should be disclosed where it is will be met in the future (see paragraphs 340 to 110 Charities are normally entitled to incoming grant or donation without pre-conditions sho resources are received in advance of the expend In such cases the charity has entitlement to th within the discretion of the charity. Such incom related expenditure has not been incurred. Sim donor of any unexpended part of a grant does is recognised when repayment becomes probab 111 Where either incoming resources are given donated (a gift in kind), the charity will normal they are receivable. At this point, all of the Statement of Financial Activities and not de paragraph 110 the possibility of having to re recognition in the first instance. Once acquire unrestricted (see paragraph 117). If its use is designated fund reflecting the book value of th the useful economic life of the asset in line w requirements under accounting standards for t the most appropriate interpretation of SSAP 4 fo Funds Received as Agent

112 Some incoming resources do not belong resources in circumstances where the trustees, legally bound to pay them over to a third p application. In these circumstances the transact payer (who remains the principal) to the specifi responsibility for ensuring the charitable applica recognise the resources in the Statement of Fin 319).

113 However, in some cases an intermediary c transfer to a third party and its trustees wil charitable application. For instance, where the t for the grant of the resources or are able to dire both. Other forms of funding arrangements invo to accept the legal responsibility for the transfe li ti h th thi d t i t h it

Library document1621710332608186567.xlsx 131 02/01/2022

the relevant places application, where the third party is not a charit then be included in the intermediary charity’s (see paragraph 320).

Disclosure

See the notes covering deferred incoming re 'Notes' section of the template. This covers SOR

Incoming Resources Subject to Restriction

116 The fact that a grant or donation is for a recognition within the Statement of Financia accounting purposes between restrictions plac may be used and conditions which must be fu existence of a restriction does not prevent the has entitlement to (control of) the resource and to which the resource can be applied.

117 Funds received for the restricted purpose immediately as restricted funds. The treatmen depend on the basis on which they are held. Th require the fixed asset acquired to be held in a discharge the restriction and the asset will be 111). There is no general rule and the treat individual case (see Appendix 3). Where assets be reflected as a transfer between the relevant

Expenditure/Income on grants and related issues SORP paras 151 to 160

For consistency these rules will also apply reversed, where appropriate

Grants made, conditions and restrictions

151 Certain grants made may contain specific be performed by the recipient of the grant. Th level agreement where the conditions for paym of service or units of output delivered, for exam of a facility used by beneficiaries. Often, in su services to be provided to it or its beneficiarie (Glossary GL 45) should be recognised as resou grant has provided the specified service or good 152 A grant that is merely restricted to a pa performance related grant unless the grant als

Library document1621710332608186567.xlsx 132 02/01/2022

the relevant places

criteria set out above. Similarly, certain restri undertaken over a number of years by the recip be recognised as a performance-related gra commitment or because the grantor is involved part of its grantmaking procedures.

153 For example, a grantmaking charity may f recipient to undertake a programme of work ide objectives or that adds to the stock of knowled undertaken will need to be consistent with the part of its own grant approval processes, be i work. Such an arrangement would not create a funding is not directed at providing a specified condition of payment. Grants without such perf recipient to follow its own programme of work o should be recognised as a liability where a cons (see Paragraph 155).

Grants Payable and Constructive Obligatio

154 In the case of grants (other than perform relating directly to charitable activities, an expenditure is incurred to further the charity's contractual relationship with the recipient of th the charity may still have a liability (Glossary GL 155 Liabilities may arise from a constructive o obligation arises under FRS12 where events h the charity will discharge its obligations. Evide be provided by the charity’s current and pas specific communication of a commitment to the commitment to another party that has been com manner to raise a valid expectation on the pa obligations. Because an obligation always invol funding decision by a charity's trustees does no sheet date unless the decision has been com affected in a sufficiently specific manner to ra discharge its responsibilities.

156 Charities may on occasions make genera example, of an intention or aim of relieving fam of care provided to a particular group of people of ways including mission statements, setting o by making a general policy statement. State obligation as discretion is retained by the cha agreement or offer that relieved a donor charity at a future settlement date would not normall charity. The liability would however be derecog rescinded.

157 A constructive obligation is likely to arise w (a) a specific commitment, or promise to provide (b) this is communicated directly to a beneficiar In such circumstances, the charity is unlikel obligation. However, the recognition of any re attaching to such commitments.

158 A charity may enter into commitments whi either by itself or by the recipient before paym hence expenditure, should be recognised once charity. If the conditions set remain within the discretion to avoid the expenditure and therefor 159 By way of illustration, where a charity make a three year period, the following situations may (a) If the multi-year grant obligation: (i) is conditional on an annual review of progress provided; and

(ii) discretion is retained by the giving charity to

Library document1621710332608186567.xlsx 133 02/01/2022

the relevant places

(ii) discretion is retained by the giving charity to then provided evidence exists (eg from past rev charity has substance, this amounts to a condit year of the funding commitment. If the annual the grant, is not in practice used to determine of the commitment, then the review stipulati liability for the full three years of the grant shou (b) If there is no condition attaching to the grant commitment, the liability for the full three years 160 Commitments may contain conditions tha example, a charity may promise a grant payme funding. As the condition falls outside the c expenditure should be recognised.

General Issues

161 Where a liability is not accrued, because should normally be treated as a contingen outstanding commitments and contingent liabili 162 The trustees may wish to designate some liabilities and other planned expenditure which m 163 Where later events make the recognition o be cancelled by credit against the relevant Activities. The credit should mirror the treatmen liability and should be disclosed separately.

Support costs SORP para 164 to 167

Support Costs

164 In undertaking any activity there may be necessary to deliver an activity, do not themsel activity. Similarly, costs will be incurred in fundraising, and in supporting the governance regional office functions such as general m accounting, information technology, human reso 165 Support costs do not, in themselves, const activities to be undertaken. Support costs ar category they support on the bases set out in p an activity category to be disclosed in the Sta constituent subactivities to be presented at a se the accounts. There is nevertheless legitimat incurred and the policies adopted for their all should be addressed through relevant note disc

Disclosure

For the details of the disclosure requirement section of the accounts

Allocation of costs SORP 168 to 176

168 A reliable approach to cost allocation shou

Library document1621710332608186567.xlsx 134 02/01/2022

the relevant places 168 A reliable approach to cost allocation shou materiality of the amounts involved and the cos accuracy may on occasions only be achievable a 169 In attributing costs between activity catego (a) Where appropriate, expenditure should be al (b) Items of expenditure which contribute dir category, for example, the cost of a staff me activity and working on a charitable project, sh consistent basis.

(c) Depreciation, amortisation, impairment or lo in accordance with the same principles.

(d) Support costs may not be attributable to sing infrastructure that enables output producing act also be apportioned on a reasonable, justifiable being supported.

170 There are a number of bases for apportionm (a) usage - eg on the same basis as expenditure

(b) per capita - ie on the number of people emp (c) on the basis of floor area occupied by an act (d) on the basis of time (eg where staff duties ar 171 The bases for apportionment adopted by a and to the charity’s particular circumstances an fair view. The bases adopted for apportionme periods.

172 Particular issues arise where a charity provi fundraising activity. Information about the aim provided in the context of mail shots, websites, whether a multi-purpose activity arises, and the be drawn between:

(a) publicity or information costs involved in ra fundraising (costs of generating funds) and

(b) publicity or information that is provided in a objectives (charitable expenditure).

173 In the context of a fundraising activity, for expenditure, it must be supplied in an educa information supplied would be:

(a) targeted at beneficiaries or others who can u and

(b) information or advice on which the recipient charity’s objectives; and

(c) related to other educational activities or obje Where information provided in conjunction with should be regarded as targeted at potential do activity.

174 For example, a health education charity tha profession supplying information as to health that should be taken. Such information would f at beneficiaries, advises on steps that can be t objectives in health education. Therefore whe fundraising activity, a joint cost would arise w charitable activities.

Disclosure

See the resources expended accounting policy n

Allocations of gains/losses on General Principles investments and assets to funds 371 Some charities publish financial informa S h i f i

Library document1621710332608186567.xlsx 135 02/01/2022

the relevant places

statutory accounts. Such information or summ 217 Gains and losses arising on disposal, revalu review or in fundraising literature. There are two the charity’s own use or for investment purpos(a) Summarised financial statements which shou investment or other asset concerned is or communicate key financial information without impairment. accounts (for example, as contained in the note 218 Such gains and losses should be recognised(b) Summary financial information which presen (a) impairment losses of assets held for the finances for example, an analysis of incoming regarded as additional depreciation of the impa charity. Such information does not purport to su expended section of the Statement of Financial 372 The distinction between summarised financ (b) gains on the disposal of fixed assets for tTable 10 below: heading “other incoming resources”. Losses on 373 As charitable companies are not listed and included appropriately in the resources exp Companies Act 1985 concerning statutory sum and SORP 218(c) states the provisions of section 240 of the Companies ' revaluation gains or losses (which are not confinancial statements do apply. The recomme - 272)) on assets held for the charity’s own use financial statements are consistent with these s on revaluations of fixed assets for the charity’s o no legal provisions for other charities.

374 As the form in which such information or depending on the purpose for which they have b Exemptions for smaller charities - SOFA recommendations on the content of summ statements. The general principles which should 375 Regardless of the intended circulation There are a number of disclosure exempti o nf fh ghlighted in the template where relevant.nancial statements, the full Annual Report and financial statements:

(a) should contain information on both the StateHowever, it should be noted that the Charities C (b) should be consistent with the statutory acco (c) should not be misleading by either omission The full exemptions are :- 376 Summary financial information will not nece

Financial Activities and balance sheet but shou Appendix 5.3 Accounting statements of Sm the statutory accounts and 5.3.1 The SORP provides a n umber of concessot be misleading information. statutory audit (see Appendix 4 Audit thre Summarised Financial Statements Financial Activities and notes to the accounts: (a) In relation to the Statement of Financial Acti377 Summarised financial statements should b the trustees, indicating:resources expended or incoming resources by (a) that they are not the statutory accounts but Activities. They may instead choose resource Statement of Financial Activities and the balance creates a consistency problem when prepa (b) whether or not the full accounts from whic to modify the templates for their own need (b) Where a small charithave as yet been externall y scrutinised (whadopts an alt e rnathe Financial Activities certain note disclosures maaccountant’s report); and disclosures relate to the constituent cos(c) where they have been externally scru t s of ainised a qualified opinion, limitation of scope, etc;provided on the face of the Statement of Financ this ar(d) wh e :re the report contains any concerns, eg i emphasis of matter, sufficient details should be (Remember this is only to be used w enable the reader to appreciate the significance accomodate an alternative approach as de Refer to Table 10 of the SORP D tails . Contrasting aA n d Informationalysis of activities that have generated funds (e) where acAnalysis of in co unts are produced only for a bming resources from charitable a clearly stated thSupport Costs an a lysis t the summarised financial s extracted from the full accounts of the reportingApportionment of Costs Breakdown of cos(f) details of how t he s o f generating volull annual acco unt s, the eary inco TrusteeAnalysi s of fundraising trading cos’ Annual Report can be ob t ained;s (g) the date on which the annual accounts wereAnalysis of charitable activity costs (h) for charities registered in EnglAnalysis of grantmaking or associ a ted support cnd and Wales accounts have been submitted to the Charity CoAnalysis of governance costs

378 If the full accounts have been externally s

giving an opinion as to whether or not the sum The following exemptions may apply wheth full annual accounts, should be attached. Summary Financial Information (c) Smaller charities are not required to give det 379 Any other summary financial information

statement on behalf of the trustees as to:5.3.2 These concessions are intended to redu small(a) th e r chariti purpos e of the information;s, though any such charity wish (b) whether or nencouraged to d o t it is from the full annual acco so.

(c) whether or not these accounts have been au

Library document1621710332608186567.xlsx 136 02/01/2022

the relevant places (c) whether or not these accounts have been au

reporting accountant’s report; In practice, using the template will not cr (d) details of how the full annual accounts, trust the only disclosure exemption that will b emoluments disclosure appropriate) can be obtained.

Exemptions for smaller charities - Trustees' Report

Appendix 5.4

5.4.1 In England and Wales, all registered ch Report. Regulations made under the Charities A a statutory audit (see Appendix 4 Audit thre Report. This concession applies to all charities re companies.

5.4.2 The minimum content of the abbreviate below.

It would appear that the mimumim require requirement and that the exemption is o highlighted the exemptions in the section

Table 11. Contents of the Trustees’ Annual

(England and Wales – not subject to a statutory

Detail

Reference and administrative details

The name of the charity Any other name by which a charity makes itself The charity registration number (or Scottish Cha The company registration number (if applicable) The address of the principal office of the charity The names of the charity’s trustees or trustee(s the date the report was approved.(where any c corporate, the names of the directors of that bo also be provided) Reference and administrative information

The names of any other person who served as a in the financial year The nature of the governing document and how (or its trustees are) constituted Governance and Management

The methods adopted for the recruitment and a Objectives

A summary of the objects of the charity as set o governing document. Activities

Summary of the main activities undertaken in re those objects. Achievements and Performance

A summary of the main achievements of the cha Policy on reserves Financial

Review Details of any fund materially in deficit a giving rise to the deficit and steps being taken t Funds held as Custodian Trustee A description of the assets which they hold in th

Library document1621710332608186567.xlsx 137 02/01/2022

the relevant places The name and objects of the charity (or charitie behalf the assets are held and how this activity

Details of the arrangements for safe custody an from the charity’s own assets.

Consolidation of Subsidiary Undertakings

Purpose and Scope

381 The purpose of consolidated accounts is to affairs of all the group interests of the reportin principles and methods of consolidation are co irrespective of whether the parent charity constituted.

382 Consolidated accounts are a set of accou parent itself and to those prepared for each of t 383 A parent charity (Glossary GL 44) shou subsidiary undertakings (Glossary GL 44) excep (a) FRS 2 provides for the exclusion of certain su paragraph 384); or

(b) The gross income, after consolidation adjust accounting period is no more than the threshold (c) The results of the subsidiary undertaking(s) a (d) The subsidiary is not a company and, by vi uniting direction under s96 (5) or (6) of the Cha that of the parent charity.

384 FRS 2 allows subsidiaries to be excluded (severe long-term restrictions which substantia rights over the subsidiary undertaking’s assets unlikely that these exclusions will generally app 385 Charities utilise subsidiary undertakings f charitable trading, for investment purposes a between profit and not-for-profit undertakings However, where a subsidiary undertaking is a wound up then the subsidiary undertaking can b

Charitable Subsidiaries

386 Most non-company charitable subsidiaries controlling charity, as they will either be restr Paragraph 383(d)). However, on occasions, a ch not meet the definition of a special trust, for wider than those of the parent charity. Where t benefit) are met, the charitable subsidiary sho arise where the services and benefits provided also contribute to the objectives of the parent c Where (unusually) a subsidiary charity’s object the benefit test of control will not be met and so no consolidation should take place. 387 A subsidiary that is a charity with objects n by the use of one or more restricted fund colum

Determining whether a Subsidiary underta

388 Subsidiary undertakings can be identified b by the parent charity. FRS 2 outlines how such c (a) voting rights (mainly stemming from share o (b) dominant influence over the board or activiti This embodies the requirements of the Compan

Library document1621710332608186567.xlsx 138 02/01/2022

the relevant places This embodies the requirements of the Compan undertakings registered under this Act. 389 A similar relationship to that of a parent an charity transacts with another undertaking in transactions remain with the parent undertakin transferred to another entity whilst retaining ex maintaining them. Such undertakings are rega for in accordance with FRS 5.

390 A charity, however constituted, should b parent charity has the power to exercise, or a the subsidiary or the parent and subsidiary are of the following situations:

(a) the charity trustees and/or members and o right to appoint or remove, a majority of the cha (b) the governing document of the subsidiary ch members the right to direct, or to give conse trustees of the subsidiary charity.

391 The basis for treating a non-company char and some other charity is such that the operati set in accordance with the wishes of the latt relationships described in the previous paragra able to produce evidence to the contrary. 392 Where the objects of a charity are substant charity, the issue of control requires particul occasions, form separate charities to give sup discretion as to the nature and timing of its su paragraph 390 may not exist but dominant i benefiting charity may set out in outline the n Alternatively the parent charity may intervene dominant influence being exercised the criteria

Method of Consolidation

393 The normal rules will apply regarding the m on a line by line basis as set out in FRS 2.

394 All items of incoming resources and res removal of intra-group transactions. Clearly it is way. For instance, incoming resources from a combined with similar activities in the subsidia be combined with similar activities in the sub governance costs in the subsidiary should be ag 395 Each charity should choose appropriate ca Statement of Financial Activities and suitable am reflect the underlying activities of the group. If subsidiary undertaking and the parent charity, s results of the parent charity and each subsidiary

Filing of Accounts with Charity Commission

396 Although consolidated accounts must be p Wales the Charities Act 1993 requires the indiv Commission. To meet these requirements, w included in the same set of consolidated accoun Statements of Financial Activities (one for the gr 397 However, consolidated accounts are often Financial Activities for the parent charity. The C long as gross income/turnover and results of the group accounts must still contain the entity b retains the power to require the production and Activities and similarly members of the public that in the consolidation template availabl of £30 plus VAT, two such SIFAs are include Disclosure

Library document1621710332608186567.xlsx 139 02/01/2022

the relevant places

398 There should be a separate comment in t and performance of each of the charity’s mater is provided for in this template

399 Where consolidated accounts are prepa consolidation and which subsidiaries or assoc consolidation. This is provided for in the cons

The disclosure requirements are shown in the notes to the accounts

Associates, Joint Ventures and Joint Arrangements

Introduction

407 This section explains the additional accoun charity has associates, joint ventures or joint ar

Identification

408 FRS 9 covers the accounting for associates detailed guidance on how to determine the rela exist,consolidated accounts should be prepared 409 Where a charity has a long term particip significant influence over its operating and fin undertaking. Where a charity beneficially holds it will be presumed to have a participating inte financial policy, unless the contrary is shown. 410 Charities providing grants or making progra funding with the provision of advice or expertis charity to provide or nominate a charity tru recipient charityoperates with a small trustee bo An associate will be created if the nomination o informal agreement to exercise significant in recipient charity’s operating andfinancial police used to provide advice or expertise to the rec own policies and strategies then an associate re 411 In a joint venture situation, a separate ent all of which have a say in the operations of the controls the joint venture but all together can 20% or more of the voting rights in an undert such that control is clearly shared with the o venture as opposed to an associate.

412 Often charities also undertake joint arra partnership with other bodies but without estab

Methods of Accounting for Associates, Join

413 Associates should be included in the accoun Statement of Financial Activities should show associates as a separate row after the “ne

Library document1621710332608186567.xlsx 140 02/01/2022

the relevant places associates as a separate row after the ne transfers” row . In the balance sheet, the net i row within fixed asset investments. Where the limited (eg because the majority prohibit any d the valuation.

414 Joint ventures should be accounted for o reporting entity to present its share of the gros theconsolidated profit and loss account (Statem does not form part of the group incoming resou this can be achieved by including gross incomi Financial Activities on a line-by-line basis with incoming resources from joint ventures as a red showing the net interest in the results for the y “net incoming resources/(resources expended)” that of the associates). In the balance sheet th should be shown in a linked presentation within 415 Where there are gains and losses on invest net share relating to associates should be show joint ventures being shown either on a separat Statement of Financial Activities.

416 Where there is a joint arrangement, the c resources expended and the assets and liabilit way as for a branch per paragraphs 77 to 81. severally liable for an obligation, it should accru and treat the part of the obligation which is exp liability.

The disclosure requirements are shown in the notes to the accounts

The SORP in relation to Charitable Companies in the UK

Introduction

419 This section explains the position of this SO this SORP, charitable companies will normally Companies Act. However, the SORP does not should have regard to its own circumstances wh In addition to following the main section of thi there are certain further requirements which mu the most common of these requirements are su the light of the company’s individual circumstan

Accounts and Reports

420 Charitable companies must comply with th content of their accounts. This Act also stipula England and Wales, strictly, the directors of ch and the Trustees’ Annual Report under Part VI o is prepared to accept the directors’ report for fi required under Part VI. Charitable companies exemption to leave out the names of the directo 421 The Companies Act 1985 requires a compa a true and fair view of its state of affairs at the In addition, Paragraph 3.(3) of Part 1, section adapt the headingsand subheadings of the ba where the special nature of the company’s busin

Library document1621710332608186567.xlsx 141 02/01/2022

the relevant placesp p y 422 The requirement to show a true and fair vie charity means that there is a strong presu exceptional circumstances, have to comply w company law. Particulars of any material depar accordance with paragraph 359.

The Statement of Financial Activities and t 423 All charitable companies registered under andexpenditure account in their financial sta designed to include all the gains and losses of and expenditure account and the statement of 3. A separate income and expenditure account where it will probably be required may arise w separately identified within the Statement of F open to challenge if they are included in an inco (a) movement on endowment (capital) funds du (b) unrealised gains and losses arising during th

In order to avoid any challenge, a statuto in this template and it is felt that it is good

Whilst unrealised gains and losses are not allow these are included in the Statement of Financi income and expenditure account would end a charities adopt a policy of continuous revaluat there may be no realised gains to report and unrealised gains.

424 Where the Statement of Financial Activities items in paragraph 423, it may not need to pr account but the headings in the Statement of Fi (a) the title clearly indicates that it includes an totalrecognised gains and losses (if required); an (b) there is a prominent sub total entitled “net is in addition to the heading of “net incoming/(o Care should also be taken to ensure that all rea of Financial Activities in such a way that they within the income and expenditure account. Par losses and reversals which, in accordance wi circumstances andunrealised in others.

425 Where a summary income and expenditur crossreferenced to the corresponding figures distinguish between unrestricted and restricte items are included must be the same as in t separately in respect of continuing operations, a

(a) gross income from all sources;

(b) net gains/losses from disposals of all fixed as (c) transfers from endowment funds of amounts converted into income funds for expending (d) total income (this will be the total of all inco the income funds but not for any endowment fu (e) total expenditure out of the charity’s income (f) net income or expenditure for the year. In pra with specific statutory requirements or those of 426 Charitable companies which require a su prepare consolidated accounts should prepare group.

Library document1621710332608186567.xlsx 142 02/01/2022

the relevant places

Summary Financial Information

When reading this text be careful to di permittted document, which are

1) Summarised financial statements 2) Summary financial information

Summary Financial Information

34 Where summary financial information of a contained in publicity or fundraising material an these accounts should always be fair and accura

Summary Financial Information

429 Charitable companies should follow the re summary financial information should also in statutory accounts for the relevant year(s) have

General Principles

371 Some charities publish financial informa statutory accounts. Such information or summ review or in fundraising literature. There are two (a) Summarised financial statements which sh communicate key financial information withou accounts (for example, as contained in the note (b) Summary financial information which prese finances for example, an analysis of incoming charity. Such information does not purport to su 372 The distinction between summarised financ Table 10 below:

Summarised financial statements Includes a summary of the Statement of Financial Activities and/or Balance Sheet.

The summary is derived from statutory accounts.

A financial statement that purports to be a

Statement of Activities or Balance Sheet or

summary thereof.

Library document1621710332608186567.xlsx 143 02/01/2022

the relevant places Represents the entire finances of a charity or a charity group.

373 As charitable companies are not listed Companies Act 1985 concerning statutory sum the provisions of section 240 of the Companies financial statements do apply. The recomme financial statements are consistent with these s no legal provisions for other charities.

374 As the form in which such information or depending on the purpose for which they have recommendations on the content of summ statements.

The general principles which should be foll

375 Regardless of the intended circulation of financial statements, the full Annual Report and

Any summarised financial statements:

(a) should contain information on both the State

(b) should be consistent with the statutory acco

(c) should not be misleading by either omission

376 Summary financial information will not nece Financial Activities and balance sheet but shou the statutory accounts and not be misleading information.

Summarised Financial Statements

377 Summarised financial statements should b the trustees, indicating:

(a) that they are not the statutory accounts Statement of Financial Activities and the balance (b) whether or not the full accounts from whic have as yet been externally scrutinised (whe accountant’s report); and

(c) where they have been externally scrutinised a qualified opinion, limitation of scope, etc;

(d) where the report contains any concerns, e emphasis of matter, sufficient details should be enable the reader to appreciate the significance (e) where accounts are produced only for a b clearly stated that the summarised financial s extracted from the full accounts of the reporting (f) details of how the full annual accounts, t Trustees’ Annual Report can be obtained;

(g) the date on which the annual accounts were (h) for charities registered in England and Wales accounts have been submitted to the Charity Co 378 If the full accounts have been externally s giving an opinion as to whether or not the sum full annual accounts, should be attached. Summary Financial Information

379 Any other summary financial information statement on behalf of the trustees as to:

(a) the purpose of the information;

(b) whether or not it is from the full annual acco (c) whether or not these accounts have been reporting accountant’s report;

(d) details of how the full annual accounts, appropriate) can be obtained

Library document1621710332608186567.xlsx 144 02/01/2022

the relevant places appropriate) can be obtained.

Accounting for Retirement Benefits

Introduction

430 There are two main types of retirement defined benefit schemes. Definitions for both ap to account for each are included in this section. 431 A charity participating in a multi-employer set in relation to the current service period only the underlying assets and liabilities on a con contributions to the scheme as if it were a defin identify its share of the underlying assets and paragraph 446 should be provided.

Defined Contribution Schemes

432 The cost of a defined contribution sch contributions payable to the scheme in the allocated across the relevant resources expend set out in paragraph 177. The note disclosures 445.

Defined Benefit Schemes

433 FRS 17: Retirement Benefits substantially a (see Appendix 2: FRS 17). The surplus/deficit i the value of the assets in the scheme over/b accordance with FRS 17 principles:

(a) An asset should be recognised to the extent either through reduced contributions in the futu (b) A liability should be recognised to the exten the employer charity. Similar principles should in-service and incapacity benefits, that are n benefit pension scheme.

434 Full actuarial valuations of a defined benefi qualified actuary at intervals not exceeding balance sheet date to reflect current conditions.

435 A surplus or deficit in a defined benefit sch unrestricted funds of the reporting charity. The have control as to the future use of a surplus re a refund from the scheme. Similarly, where a lia to make good a deficit, this liability will normally

Allocation of Retirement Benefit Costs and

436 The change in the defined benefit asset o payable to the scheme which affect the surplus components identified in FRS17. However thes Financial Activities on full implementation of F date and transitional arrangements).

437 Pension costs may be allocated between th Financial Activities on the basis of the charity’s be reasonable and consistent. Allocations of p within the scheme is one approach, although contributions payable) may also produce an should be based on the following:

(a) The changes relating to current or past ser

Library document1621710332608186567.xlsx 145 02/01/2022

the relevant places (a) The changes relating to current or past ser curtailments should be allocated to the appropr paragraph 432.

(b) Pension finance costs arising from changes i assets should be allocated to the appropriate 432. Income arising from these changes sh separately disclosed where material.

(c) Where past service costs, or gains or losses o context of the particular expenditure (or income amounts should be disclosed as exceptional in a Performance (see Appendix 2).

(d) Actuarial gains and losses arising should be of the Statement of Financial Activities under benefit pension scheme”.

Restricted Funds

438 A pension asset should be recognised as ac demonstrated that the economic benefit of the contributions or refunds. Similarly, a pension l where it is demonstrable that a constructive lia met from the particular fund. Such a situation long-term project funded from restricted incom the charity’s own computations. Liaison with necessary in order to establish the basis on wh fund and therefore the pension costs that may b 439 Any allocation of a pension asset or liability basis. Where staff changes or cessation of a pa obligations will no longer accrue to that particu to the unrestricted funds by means of a tra Activities.

440 Where the criteria for the recognition of a met, the related pension costs should be rec Statement of Financial Activities. The compone the same Statement of Financial Activities ca preceding paragraphs.

441 A restricted fund may, however, incur sta pension asset or liability within the restricted restricted fund may be of a short-term natu activities creating uncertainty as to the fund wh contributions resulting from any deficit. In suc Statement of Financial Activities may still be r service cost component of the pension cost rela funds. Such a recharge within the Statement of necessitate a balance sheet adjustment be unrestricted funds should, however, continue to 442 When past service costs and gains and loss may be recharged to restricted funds only w present staff engaged in the activities of the res

Disclosures

443 The disclosure requirements for pension sc summarises the key points. 444 Where a defined contribution scheme is op disclose:

(a) the nature of the scheme,

(b) the costs for the accounting period and

(c) the amount of any outstanding or prepaid co 445 FRS 17 disclosure requirements for defined should refer to the text of the standard in c accounts should include the following informatio

(a) the nature of the scheme,

(b) the date of the most recent full actuarial valu

Library document1621710332608186567.xlsx 146 02/01/2022

the relevant places(b) the date of the most recent full actuarial valu

(c) the contributions made in the accounting years;

(d) the main financial assumptions used at th date;

(e) the fair value of scheme assets analysed bet expected rates of returns;

(f) the present value of the scheme liabilities a fair value of the scheme assets;

(g) an analysis of the amounts for each of the c or credited through the Statement of Financial A 446 Where a charity operating a defined benefi of underlying assets and liabilities cannot be id confirmation from the scheme administrators available information about the existence of the of that surplus or deficit for the employing explanation of the general circumstances giving 447 When a charity operating a defined benefi notes to the accounts (or Trustees’ Annual Repo explain the elect to NOT do in trustees repor application. If a pension liability exceeds the explain any limitations placed on any restricte requirements arising from the disclosed liability. 448 If a material pension asset is disclosed, th should elect to NOT do in trustees report explain asset and give an indication of the period over will accrue to the charity.

Library document1621710332608186567.xlsx 147 02/01/2022

erred to by cells or text boxes

ch is addressed via hyperlinks from or the year ended 31 March 2021. 21 for:

heir interests in the share capital of the company were as follows:

Check the Links page for a wealth of exter Links to external resour

	Links to	other pa
	Tab to the relevant Exc
	Links	Links to ext
	TB	Trial Balanc
	Data	Data sheet
	Cover	Front page o
	Contents	Contents pa
	Director	Trustees Re
	Audit	Independen
	PL	Statement o
	BS	Balance She
	CF	Cash Flow S
	Notes	Notes to the
	DetailPL2	Detailed sch
	Appendix	Activity ana
	Library	Standard te
	Disclosure Disclosure c
	History	Details of a
	CFworking Internal wor
	Workings	Internal wor
	CC31	Independen
	Or for charities in Scotl

accordance with the special provisions of Part VII of the Companies Act 1985 relating to s ation for the year, the taxation charge would have increased/(decreased) as follows:

Return to Trustees Report

y as set out in its governing document.

s as set out in the memorandum and articles of , advancing and maintaining religion and education t t f th Ch h f E l d d ti d

Library document1621710332608186567.xlsx 148 02/01/2022

for a wealth of exter

tenets of the Church of England, and promoting and nominations.

h Isaiah 58 (NKJ) in the City of , West * and ; benefit and in particular by the provisions of food ,

a Sunday School in ; n ; parcel distribution to homeless and needy in *

*.

Return to Trustees Report

cation of all pupils and students attending schools in itment of , and promoting and providing training and

nd families who are clients of statutory or voluntary of which is concerned with the relief of the poor, the other persons in need, by the collection, storage, ure to such persons or in such other ways as the

working of charities in * and to research, develop urage the public to donate furniture to be used as per re sustainable waste management practices.

itable purpose for the benefit of the community in * by the advancement of education, the protection and sickness and distress.

roviding free, confidential, impartial, independent and ublic and by acting in response to the information we ated social policy work. General and specialist advice ed in * and * and outreach services in *, by a Team nded projects targeted at particular groups of people. ecognize the growing and changing needs in the tegy aim to identify gaps in services and to seek

and maintenance of a village hall for the use of the od thereof (hereinafter called "the area of benefit") er opinions, including use for meetings, lectures and leisure time occupation, with the object of improving nd the provision of services ancillary of a village hall. ust for the purpose of a village hall as aforesaid.

that of: enhancing the development and education of y:-

de for the needs of their children through community ation and care facilities and training courses, onsibility for and to become involved in the activities er opportunities for all children whatever their race,

Library document1621710332608186567.xlsx 149 02/01/2022

for a wealth of exter

hildren and their families and promoting public

aims and objects of the Pres- School Learning

age through their leisure time occupation so as capabilities that they may grow to full maturity as heir conditions of life may be improved.

women, girls and their families who are, or are at risk ing or violence through prostitution, with particular vision of, but not exclusively, such services as advice, modation.

on and its impact on individuals and society.

es or differences it seeks to make

Return to Trustees Report

g them with furniture, furnishings and white goods nd enabling them to take their place in society.

ociation of Citizens Advice Bureaux (CitA), namely to : ance of their rights and responsibilities or an inability

lopment of social policies, both locally and nationally. arity is committed to improving the quality of life of gh maximising their income, helping them manage assisting in the resolution of problems which have an

the charity during the year and the position at 31st e to continue its activities during the forthcoming year lfil its obligations.

cultural betterment of the inhabitants of the area of evelopment put forward by the trustees are divided by already completed (comprising making the building be used as a branch library, and a four office block on nt has just started and it will add a small hall to an and cafe area. The final fourth phase of development

Library document1621710332608186567.xlsx 150 02/01/2022

for a wealth of exter

e back of the building, six workshop spaces and car

wrap around care to all children in the area whose

active agents in responding to the sexual exploitation

users

th agencies

o the need for even more effective legislation and xual exploitation by pimps and perpetrators.

ding of the complex and changing operation of pimps, n-country trafficking, and challenging inaccurate

collectively with other parents and offer each other

bjectives for the year.

Return to Trustees Report

amongst individuals and families in the City of * by e, refurbish and repair it where necessary and deliver

r Citizens Advice Bureaux and related organisations in aim of which is to provide a co-ordinated and cohesive 's objects are ‘to promote any charitable purpose for unding areas by the advancement of education, the elief of poverty, sickness and distress.

2005-6 is to achieve self-sustainability. To this end we ces, trying to reduce expenditure and to enhance

to maintain the viability of the charity, and ensure its its long term objectives. The charity also aimed to es, both by obtaining funds from grant making bodies cillary activities that would generate funds for its core

the * region, being in contact with circa 50 families in me active players.

ry, building on established links and proven need for

olice in order to achieve more effective prosecution of nclusion of a relevant police performance indicator. in seeking recognition of the extent of the hidden 'in-

ve the practice of relevant agencies in response to

Library document1621710332608186567.xlsx 151 02/01/2022

for a wealth of exter

ral public about the complex and abusive nature of of all young people.

ation of a coordinated partnership response to meet sentation in racial discrimination cases across Leeds; unter the activities of the far right; on the basis of iorities and lobby the local authority and statutory e local Gypsy and Traveller communities.

ies for achieving its stated objectives. Return to Trustees Report

upport the staff, premises and transport necessary for

ering the period 2004 – 2007, which sets out its plans pment Plan is reviewed on an annual basis

in February 2006 to consider its current scale of

f the performance of the Board through a process arking the Board”; the results will become available

efficient acquisition of products, a more effective use

a sustained advertising campaign, a more efficient

forward-looking view of our business.

ctivities in a variety of local media, and to approach sis.

able to provide adult courses on a variety of subjects, he running costs of the charity out of the surpluses

and development worker (half time each), a full time me administrator. Secure new funding for another two

ocesses of targeting and grooming by pimps; act as evidence systematically

oo are experts; advocate their rights; organise parent rt parents involved in training or telling their stories

follow up to 2005 national * conference, and in e police performance indicator.

his issue at the police vice conference.

to further government consultations

Library document1621710332608186567.xlsx 152 02/01/2022

for a wealth of exter

to further government consultations to relevant government consultations; to produce a fficking. ners to enable better practice in relation to affected portunities both at conferences and within specific o to respond to appropriate media

ng its main programmes, projects, or services vement of the stated objectives.

Return to Trustees Report

t families in *, the charity has delivered in excess of appliances to 2,438 faimiles during the period covered

niture have been replaced and refurbished and more ed for safety and repaired where necessary.

• agreed strategies include:

eneralist and specialist advice services by oping new offices in the * area numbers of volunteers to provide a comprehensive reach groups within the community on uality by:f and volunteers advice sessions specialist advice providers rding and monitoring work s to help review our services

policy team at Citizens Advice ern nancial exclusion and raising these with financial library and information centre, learning net, lifelong eighbourhood nursery, and a rifle club. oan, North * Male Voice Choir, Karate, Flower Craft, , Needlework class, Aerobics, Luncheon Club, Weight ation. sociation of Community Partnerships, Neighbourhood a charitable arts organisation that works with special hey also have a workshop/ artistic editing studio. the hall.

courses for children of all ages. This contributes to the

very successful and generates funds that enables the

Library document1621710332608186567.xlsx 153 02/01/2022

for a wealth of exter

very successful and generates funds that enables the

he Home Office and latterly from the Department for rant Programme, to fund a Parent Support and Advice 5). * took up the post in June 2002 and set up the upport parents in families affected by prostitution and develop and use their skills and knowledge. It has

in need of this service. In 2005-6 , now funded by creasing numbers of parents by providing emotional eetings and a telephone help-line. Over 140 cases y in West and South , but also across the country.

derstanding of the processes by which children and To this end the unit has continued e.g. to disseminate ed by the Parent Support Unit. During the year it ces Act 2003, and a research report Parents, Children loitation.

rs and respected partners in working positively with police, social services, schools. * has continued to s to make a full contribution. She has also continued ocial services. This has included meetings with senior nection with criminal pimping networks, and close e has also delivered training, e.g. to South * Police. t with * Business, *.

e relationships with children at risk of, or involved in, ediating role by bringing parents and children with derstanding.

f parents of the risk of children being drawn into create and seize opportunities in the public arena, of the issues and its work, and has disseminated its he making of a programme for Radio *. It has also be forewarned of the dangers, and has discussed this ing centre, and this has led to increased surveillance and grooming.

evant statutory agencies to attend case conferences arents to enjoy their rights in this matter.

Return to Trustees Report

nt

Library document1621710332608186567.xlsx 154 02/01/2022

for a wealth of exter

Return to Trustees Report

Return to Trustees Report

s, all of whom are volunteers, and utilises the services egular basis, some of whom are involved on training

enerous contribution of time and commitment from professional service is delivered. The * currently has istrative work. Between April 2005 and March 2006 12,000 hours. In addition, the majority of the yed by the Bureau. During this year the Treasurer * sition in London and subsequently * was appointed as have been no other changes to the Board during the

ppreciation to all the staff and volunteers, and their worked tirelessly, giving their commitment and time in to the local community. The Board is also grateful to the Bureau to deliver the core services and specialist

nd administration. ers.

arity as all of the trustees are volunteers. Parents and couraged to participate as volunteers in any and all

harity, apart from the very active Trustees, and the ther. It is, however, currently seeking to develop a e of the new part time development worker. In order ll seek to gather - through relevant local agencies - pport to affected parents. It is hoped that these hough at the point of intense crisis this may not be

rity in relation to its objects

Return to Trustees Report

ctivities are achieved are detailed below:-

including the organising of formal talks and seminars, ber of public bodies and developing and supporting hlighting the role of faith in that search.

actively promotes a free collection service of items ut charge, to families who have been assessed by the e need.

household waste sites and recycled after checking for

Library document1621710332608186567.xlsx 155 02/01/2022

for a wealth of exter

tions were made of items which after checking and elivered to people in need.

ces is provided by * City Council (*CC) and this has arch 2005 the funding from * City Council for the 200,000. As a consequence the Board was compelled and resolved to introduce a revised structure for the ncluding the introduction of the new post of Service he replacement of the site-specific Service Delivery ach office, was introduced in July 2005 and has so far

ortunities for education, cultural activities and leisure. vents which are available.

on of preschool education and all day child care for 2- 6pm five days per week for 50 weeks of the year to sional preschool education to meet Foundation Stage

week to provide activities within the Birth to Three

l age children attending * Primary School, including a centre. During school holidays the centre caters for ximately a 10 mile radius of the centre.

ffered during term times from computer skills to art

work with other agencies

and in public places

tation n and Pimps

taken by the charity

Return to Trustees Report

perate all year collecting, repairing and distributing in need and maintaining links with more than 150 ple with social and material needs.

Library document1621710332608186567.xlsx 156 02/01/2022

for a wealth of exter

e to enjoy improvements to their standard of living In achieving this more than 614 white goods (i.e. ed and recycled as well as more than 550 items of

ce for collecting and distributing furniture and white of * and intends to carry on doing so as long as ce is a proactive recycling programme working in hite goods and furniture.

activity. We only provide space and facilitate other

monthly tea dances and provides private hiring of the

ed Old Fire Station, a multi-purpose building used by es. The Centre serves the rural communities of * and *. It is situated some 11 miles from each of the major ers are sourced locally where possible so as to offer ablish community involvement at grass roots level.

with the Company’s objects clause. The pre-school some 40 places, as well as wrap around care in the as successfully integrated the introduction of 2 year for 3 of the 5 morning sessions, and occupancy was rnoon sessions. A new Children’s Group Manager has ps and move towards full occupancy of the various

sed in popularity throughout the year and now is a g parents. The Holiday Clubs have been very well r activities resulting in repeat bookings and a growing

ourses and enrolled 451 learners. This has exceeded and Skills Council which has supported this aspect of

s from various funding bodies to employ workers, and e, both quantitatively and qualitatively, and reports on always satisfied (and often more than satisfied) the es can be supplied on request. For the purposes of n on objectives, strategy and activities, and evaluate be noted especially that in the nature of the case antitative. At the front line one is listening to parents and recognise the reality of their situation; help them and strength; show them what they can do to help ed; and encourage them to be proactive in mutual ers, and in speaking out in the media.

Library document1621710332608186567.xlsx 157 02/01/2022

for a wealth of exter

Return to Trustees Report

not mandatory)

identified in the accounts , whose support is valued.

publicity in local newspapers and periodicals.

s and hiring of the hall and the Gala.

m the Learning and Skills Council. There are regular supplement grants received.

inst investment objectives set

Return to Trustees Report

estment principles which are described in vestment policies and objectives.

terly in comparison with the statement of ved on the discretionary assets managed

Z, but a minor proportion is held with a the risks and create an operational

a quarterly report on their performance l indices as benchmarks. The Investment he managers to discuss performance in gic issues that the Subcommittee or the

matters referred to in these notes under east annually any issues arising from the licy or strategy which the charity should

in place.

policy described in the financial review ny cash held by the Bureaux in its Bank’s e Bureau’s cash is held in a bank current as and when they become payable

f the charity's objectives

Return to Trustees Report

rity are considered each year by the trustees when ating to finances. Should there be no poverty within

Library document1621710332608186567.xlsx 158 02/01/2022

for a wealth of exter

gi p y to carry out certain works themselves or the Local y would have to seriously consider its future. In like erted elsewhere or cease completely then the Charity cover any of the afore mentioned eventualities.

nce of:

Return to Trustees Report

ecialist Advice Services and a range of other grantbureau has negotiated contracts orkforce

shing new premises in the * area was delayed due to itable. It is now likely that progress on this aim will be

chieve a good working relationship with the staff and streams successfully, so we can continue our capital ract with the community with the aim of regular nd services. To endeavour to attract the interest of the take in the VH activity, by becoming members of the

aintenance

hbouring villages which effectively compete with the

ve. c authorities.

stereotypes and false assumptions are rife among

f securing sufficient funds, both to maintain and also difficult to secure statutory funding. We do not work ore local authority funding is almost impossible. We the Home Office and DfES. For the DfES we are not it is not the parents who cause the problems but the d as working primarily with the ‘front line victims’, i.e. e that parents too are victims but also strategically most effective way of helping the children and young

ds for its services and many tasks to perform, and it is dministrative help, ideally a part-time paid post.

the charity during the year

Library document1621710332608186567.xlsx 159 02/01/2022

for a wealth of exter

ar , plus a new additional minibus. The pastor is a full

and Asian school governors. al and existing governors. unity

Return to Trustees Report

n *, * and *

charity include :-

n has continued , the van having been replaced. The oon, as NCP have sold the premises.

g.

er aspects of the warehouse.

a replacement and one as an extra. One was bought anonymous.

h the year , whilst the Sunday School in * finished due

om 1st June 2005

ce for collecting and distributing furniture and white of * and intends to carry on doing so as long as ce is a proactive recycling programme working in hite goods and furniture.

onal £* in welfare benefits and tax credits, including s.

of a total of £* of household debt. mes, through intervention in respect of repossession

ployment tribunals.

Benefits for * Project and the Advice Service at the * ntinuation funding for its Volunteer Development & work at * prison. Funding was also secured from the rt in May 2006.

volunteers. In the same period 8 volunteers left for ld.

Library document1621710332608186567.xlsx 160 02/01/2022

for a wealth of exter

the year are successfully negotiating a grant funding

• Regeneration Trust, funding which will be coming in

.

catering and general management to achieve a encourage regular users to aspire to more dynamic

l Ball and Gala, monthly tea dances, hiring of the hall, doors replaced.

hich are inherent in work of this kind, we see as the

arly 150 families in three and a half years ding updated leaflet and Sexual Offences Act booklet work with other agencies

and in public places

ed number of requests for talks and contribution to

mentation. There were extensive responses both to ng consultation' - both from the Home Office. n and Pimps

Association of Chief Police Officers)

ude the support from the National Lotteries Charities e area.

ns' work for children of none church going familes . omodate all church activities.

.

Return to Trustees Report

, remain the same. ’s 2006 leaflet focuses these ociety in 2006-7, with the following strategies in each

ontinue to be active agents in responding to sexual tegy: provide direct support in * region through the elop this service by extending it to other parts of the

en get free of their abusers. Strategy: equip parents

Library document1621710332608186567.xlsx 161 02/01/2022

for a wealth of exter

geting and grooming by pimps; to act as mediator lines of communication open; to gather evidence or children.

ers with agencies: Strategy: to support them in the ocate the right of parents to be involved with other ces; and to organise and deliver training to other

he need for more effective legislation and practices to portance of this at both local and national levels, and gy: work principally through the Policy and Research ic elements within the Home Office and senior police; tions, and develop ways of being involved in on-going

d constitution of the charity

ited by guarantee and is therefore governed by a e directors of the company are also trustees of the arity, and membership of the board of trustees is association.There are no restrictions in the governing its investment powers , other than those imposed by

Return to Trustees Report

ed by its memorandum and articles are ....

overned by a trust deed.Eligibility for membership of trustees is governed by the trust deed.There are no operation of the charity or on its investment powers , w.

own Memorandum and Articles of Association.

8 volunteer members who have overall control and ing and all are Directors and trustees.

r implementing policies is carried out by a full time part time employees plus a number of volunteers and

ent and appointment of new trustees

hen beneficiaries and client organisations are invited compliance with the Memorandum and Articles of ng body of trustees for election.

nnected with them there are no individuals who are Return to Trustees Report

e shown in the notes to the accounts. This includes

nnual General Meeting and retire from office at the

Library document1621710332608186567.xlsx 162 02/01/2022

ua Ge e a ee g a d e e o ofi ce a e e elected. Any casual vacancy arising during the year d; that person is then duly elected at the subsequent er and three additional staff are also Trustees, as party has a right to appoint a Trustee.

for a wealth of exter

ular users,and from members of the local community. by the trustees and ratified at the annual general nt and often specialist knowledge. This has always by *’s issues as parents are among the trustees. This those with complementary skills – e.g. finance, nce and knowledge. * has had a very stable group of teeship.

or the induction and training of trustees.

a Management Committee meeting, as well as visiting members of staff. ed with all relevant information from the Charity further information from the Charity itself regarding Return to Trustees Report continual basis, to attend any courses which are ff and volunteers are trained to a very high standard public. The Bureau is a member of the National nown as Citizens Advice) and is subject to a quality ets the requirements and standards set down by the d out in March 2005. e for the training of trustees, other than the "do's and tion pack containing details of the memorandum and erformance to date, budget, insurance cover and a Directors Agreement detailing their obligations as an operate. s; the need for specific skills has also been identified – experience. * will seek to recruit in a variety of ways ht be appropriate and also by sending details of our be inducted by being sent past papers, initially just ers and spending time with existing staff. They will

Library document1621710332608186567.xlsx 163 02/01/2022

for a wealth of exter

ers and spending time with existing staff. They will esponsibilities of trustees as identified by the Charity

rver status and they are supplied with an explanatory

arity and how decisions are made.

ers , but is answerable to four elders, all of whom are

to discuss and plan objectives and implementation with all members .

Return to Trustees Report

ction.

board. It has established sub groups which discuss the ology, premises and staf ng. There is also a standing s. The subgroups are serviced by the manager. The d of trustees and monitor operational activities. Staff ry out day to day work within policies agreed by the authorisation of different amounts.

e affairs of the charity are managed by an executive ry academic term.

al Meeting and consists of the following members:-

asch district) representing Black Governors' Forums, d educational organisations.

uncils

s

y simple majority votes cast by members present,with of an equality of votes, the Chair may excercise a

8 volunteer members who have overall control and ing and all are Directors and trustees.

r implementing policies is carried out by a full time part time employees plus a number of volunteers and

ctors, whose members are also the Trustees of the hroughout the year. At present there are two sub-

Library document1621710332608186567.xlsx 164 02/01/2022

for a wealth of exter

ing both Board members and staff. The terms of firmed during the year. The Finance sub-committee r the annual budgets and to consider other finance meets as and when required for recruitment purposes, urce policy. During the year it has met on a total of 7 ished for specific purposes. All groups report back d. The Board delegates the day-to-day responsibilities District Administrator, a Training Officer, the Service dvice Session Supervisors and by other specialist and

Return to Trustees Report

s a management team. From the board of directors a p" which directly liaises with the Village Hall manager

a monthly basis to discuss and plan objectives and cern are raised with all members . Meeting and consist of the following members:

mbers

may be co-opted by the Directors.

simple majority votes cast by members present, with an equality of votes, the Chair may exercise a second

uding co-opted members, shall at the time of election ent that this requirement cannot be achieved, the e Members to make up the balance subject to each of local Branch Executive Committee of the * Learning *.

or a term of one year at the Annual General Meeting. unless they have already served as Directors in any

swerable to any other organisation.

ciation of Citizens Advice Bureaux, known as Citizens Bureaux in the * Specialist Advice Services Company.

village to assist in fund raising.

Return to Trustees Report

Library document1621710332608186567.xlsx 165 02/01/2022

for a wealth of exter

related parties, including its subsidiaries

h it has many transactions and a controlling interest. there are no transactions with them.

nnected with them there are no individuals who are ated parties are shown in the notes to the accounts. to Trustees.

Return to Trustees Report

exposed and reviews and

ECOMMENDED BY THE CHARITY COMMISSIONERS

uidance is) IS AS FOLLOWS :- (However this is not n required)

h the charity is exposed each financial year when ticular those related to the operations and finances of ajor risks which have been identified, and establish Return to Trustees Report atisfied that the systems are in place to mitigate their identified and reviewed.

E APPENDED INCLUDE :-

n fundraising because its activities are supported by of investment risks and policies adopted to mitigate ples Statement.

of any organisation, and the charity has introduced ignatures being required for payments from the bank explained to members of the charity and are open for

open to risks . The policy is that client's visits and rk and transport.

ussed . Where necessary checks are undertaken with

poverty left and all families and individuals were nd household goods for their needs, or if incoming re to stop, or if local and statutory agencies chose to eetings with the largest and most advanced agencies the increase and the demand is unlikely to be met by y to foresee the future regarding donated furniture, the Charity to cease functioning in a proper manner

w by the auditors, Peter Brown & Co, who advise the the business risk assessment undertaken by them as

Library document1621710332608186567.xlsx 166 02/01/2022

for a wealth of exter

ent. This risk is mitigated by the fact that the charity

ties and individuals

• Christians of whatever denomination.

ss to provide food parcels and furniture.

horities and the local governor forums in the region of

n , and support the retention of Black and Asian

Return to Trustees Report

maintain contacts with minority ethnic governors,

more than 160 statutory and local voluntary agencies, well as liaising regularly with other charities carrying

ps is to provide them with space and support when onally we will provide space and support free or at a pay, with the provision that the applicant should be benefit to our local community.

ganisations.

ption of the activities of pimps and the support of er organisations in its concern for women and girls r violence through prostitution. It has many informal d nationally, in order to offer mutual support and

rves to provide for future activities, and to provide nths ahead in the sum of £X.

ets are retained to produce income income which is ere is no intention in the long term to either increase s policy is justified in that it is necessary to preserve n the activities of the charity.

Return to Trustees Report

ves to provide for future activities and the trustees

Library document1621710332608186567.xlsx 167 02/01/2022

for a wealth of exter

ves to provide for future activities, and the trustees

mined that the existing assets be retained to produce ng activities. The intention in the immediate future is der to preserve the income necessary to maintain the

to cover a reasonable period of expenditure, should d in an interest bearing bank account. Investment ty does not have capital to invest other than to meet

fore has no share capital. As part of the Business and en drawn up. This is split into four priorities: er running costs for a three-month period. tual commitments in respect of staff

acement, relocation costs, etc. onor and not available for general purposes

ms are all included under ‘Unrestricted Reserves’, as

eserves. cific figures are quantified and disclosed in any

after allowing for unrestricted fixed asset funds, total the the only effect of this deficit is on liquidity . If the ceed, then £* will be released to unrestricted funds, roceed, then there will be substantial funds available. , and the trustees are taking steps to reverse the

Return to Trustees Report

enditure in the year under review has arity.

ty, trading subsidiary and donations from charitable

expected a shortfall in the predicted income from in the services able to be offered.

Return to Trustees Report

iety of sources and these are set out in detail on the

Library document1621710332608186567.xlsx 168 02/01/2022

for a wealth of exter

iety of sources, and these are set out in detail on the ge *.

nued to operate with a current membership of 88 paid and other fund-raising activities, are used to support

e the continued financial support from * City Council, y Fund.

tivities, revenue funding (now ended), and all other income allows us to support our objective and stay

dances, hiring of hall for private functions, hiring of village gala.

including the extent (if any) to which social, s are taken into account.

LARGER CHARITY MIGHT BE AS FOLLOWS AND CHARITY

im is to promote religion and education . It has fixed Return to Trustees Report

ding, *, and the income generated by the assets to

oard of trustees has adopted the following objectives: allows the support of an equivalent level of

o provide for a level of income that matches pital over the long term.

urity, with the highest achievable total return of the Church of England.

various financial risks. The board has considered the

the increases in real capital or income

t managers will not achieve the returns

a mix of direct property and marketable investments. vestment managers who have full discretion over the

mately 30% in property (including *) and 70% in ies. These proportions have been adopted to reflect s having considered the balance between risk and

Library document1621710332608186567.xlsx 169 02/01/2022

for a wealth of exter

lines as the Church of England. The instructions given th these guidelines.

ortfolio are only made on the basis of individually he charity currently only holds 2 such investments and pated.

the XYZ Fund. The manager has full discretion, within e aim of the Fund is to achieve steady income and sted in equities. At 30.11.2001 the Fund was invested ties, 9.7% in bonds and 8.2% in property and cash. the unit pricing.

ary portfolio of UK Equities. The manager is aware of ovide capital growth at medium risk by investing in a ective instruments where appropriate. The expenses gh a management charge and the application of a on transactions.

ed as there are no funds available for investment

y derived from grants received from funders to cover cess is required on a continuing basis, the Board has Bank current account with any surplus to be retained

r income, with the exception of a small cash flow, is

oard of Trustees has adopted the following objectives: ws the support of an equivalent level of activity of the

ovide for a level of income that matches inflation and erm; ecurity with the highest achievable total return.

penditure at present beyond secured funding for three not be available after that, and so the Trustees will secure additional funding for new development work k.

e proportion of the assets in a Charity Line account of e of return.

s have been taken into account.

he investment and report regularly to the Trustees.

Library document1621710332608186567.xlsx 170 02/01/2022

for a wealth of exter

Return to Trustees Report

each of the funds

ty's assets in each fund are available and adequate to

urces expended

Return to notes

include dealing costs, and management and advisory ment .

enerating of funds

diture directly related to the objects of the

bjectives

number of client organisations, and every es in relation to pre agreed parameters. The ccept the application subject to conditions.

ant to any organisation , and after approval, val already granted , either before or after nt is to create a creditor for grants relating nt financial year of the trustees immediately o activities in subsequent financial years as NO to these accounts.

such grants approved and unpaid, and a . The comparative figure for 2000 was £*

Return to notes

ves

trading costs that have been incurred in ciate Manager are involved with project ary costs are treated as direct charitable

poses comprising the salary costs of the are involved with project development and

Library document1621710332608186567.xlsx 171 02/01/2022

for a wealth of exter Return to notes

e charity for its charitable purposes has been let to a none charitable organisation. In ord value from fixed assets to investment assets, and the details are shown in the appropriat e directly related to the administration of the charity

nagement of the charity's assets, organisational and statutory requirements.

es expended

costs, where it is impracticable to allocate these costs le expenditure and the trustees have allocated such ollows :-

n different activities

different activities

es expended

osts, rent and other related costs. Such costs are Return to notes pended and between charitable expenditure and f estimates made by the directors.

es expended

nditure not directly related to charitable activity. In matter of judgement as to whether such items are Return to notes trative , and the directors have applied what they rtioning such costs.

es expended

and apportionment of all costs between the different e are based on the test of whether a cost directly ncome.Such identifiable costs are apportioned to the cated to support costs of charitable activities.

Return to notes

t realisable value. Donated goods held in stock are nting purposes.

f an asset. One is for £10,000 and has no restrictions

Library document1621710332608186567.xlsx 172 02/01/2022

for a wealth of exter

her is for £20,000, and is subject to restrictions on

Return to notes

ith £30,000 as capital grant received. Both have the ed on capital assets, so they are treated as £30,000

0,000 is shown as transferred from restricted revenue d asset funds, and £20,000 going into restricted fixed

ng all other transactions, the balance sheet at year 1 ed asset funds £20,000, designated fixed asset funds

spect of the £20,000 grant detailing the basis of the ll detail the restriction

balance sheet at year 2 will be fixed assets £22,500, d designated funds £7,500 and unrestricted revenue unrestricted depreciation of £2,500 and restricted nsfer from restricted fixed asset funds to restricted ed fixed asset funds to unrestricted revenue reserves stricted and restricted revenue reserves.

spect of the £20,000 grant detailing the basis of the ill detail the restriction. If the liability is probable it is ility

s

Return to notes

er to comply with the Statement of Recommended by the Charity Commissioners for England & Wales assets or grants of a capital nature given for specific of the objects of the charity should be credited to the een properly expended on the restricted purpose. The he full cost of acquisition or subsequent revaluation.

s by the grant making organisation on their use and the fixed asset section of these accounts. In such is treated as a restricted fixed asset fund. As the sfer is made from restricted fixed asset funds to munition in the asset subject to the restriction.In this ed from restricted fixed asset funds to unrestricted

ons by the grant making organisation on their use and is treated as a designated fixed asset fund. As the fer is made from designated fixed asset funds to munition in the asset.In this year, a sum of £* (2005 - funds to unrestricted revenue reserves.

for example, the asset’s future sale, is disclosed as a trigger repayment of the grant becomes probable in ed

Library document1621710332608186567.xlsx 173 02/01/2022

for a wealth of exter

nts and to the extent that it may be a departure from e Number 4, such departure is justified on the basis ment of Recommended Practice for Accounting and harity Commissioners for England & Wales.

e of property

he conditional sale of the freehold property has been l never be returned to the payer, and is effectively an ract. However, this amount is then transferred to that if the conditions are met, and the sale proceeds, amount.

d * are fully incorporated within these accounts.

Return to fxed assets

ents and heritage assets)

at:

sed on initial acquisition and included in the balance

valued;

rather than maintains) the performance of tangible

her than investments) fall into two categories, those the running and administration of the charity) and 32). Paragraphs 255 to 278 describe the general rules alance sheet. In principle heritage assets meet the sed and included within a charity's balance sheet. the cost or valuation of heritage assets can only be ch information lacks sufficient reliability. Specific t of heritage assets are set out in paragraphs 279 to

uded in the balance sheet using the following bases. t are directly attributable to bringing the assets into can include costs of interest on loans to finance the e charity has adopted this as a policy for all tangible d cease when the asset is ready for use. This applies hire purchase or finance leasing.

or in part from the proceeds of a grant it should be ase of a joint arrangement at the gross value of the )) without netting off the grant proceeds.

nated, they should be included in the balance sheet at also included in the Statement of Financial Activities

ed some time after being acquired, for example, as a should be included at original cost or at the value at f Financial Activities less an amount for depreciation. ainable, a reasonable estimate of the asset’s cost or Return to fxed assets uch a valuation will be regarded as the asset’s initial

Library document1621710332608186567.xlsx 174 02/01/2022

for a wealth of exter

evaluation (see paragraphs 262 to 266).

set is higher than its recoverable amount, it will be ecoverable amount. This is covered in more detail in

ional and Investment)

ixed purposes, ie. partly as functional property and ry in which they should be included depends upon the e extent to which they are separable. The following opted:

ty use of which a part is leased at a commercial rent and included within tangible fixed assets provided the rposes.

tment purposes (Glossary GL 39) where the asset is should be included within the fixed asset investment

y distinguishable parts which are held for different ment and do not fall under (a) or (b) above, should be between functional and investment assets.

er than Investments)

is they wear out, are consumed or otherwise suffer a passing of time or obsolescence. Their value is thus life. This expenditure should be recognised by means ment of Financial Activities and shown in the balance om the value of the relevant fixed assets.

harity which are included in the balance sheet should seful economic life. The only exceptions to charging onditions apply: d to have an indefinitely long useful life; or ulated depreciation are not material because:

es at the time of acquisition or subsequent ent from the carrying amount of the asset;

ateriality, FRS 15 requires that the asset is subject to es under the threshold for following the FRSSE); or t been included in the balance sheet (see paragraphs

ues of fixed assets should be reviewed at the end of Return to fxed assets material change, the value of the asset should be

ses two or more major components with substantially be accounted for as a separate asset and depreciated

er than Investments)

assets (other than investment assets) do not need to of revaluation. Where such a policy is adopted, whilst be applied to entire classes of fixed assets. Therefore assets in that class must also be revalued. Classes of on, according to the operations of the charity (see

apitalised as a result of the change in an accounting as a revaluation and hence will not require the entire

assets at a revalued amount at the date FRS 15 ods ending on or after 23rd March 2000) this will not ent exists for such assets to be revalued periodically

sets, their value must be updated on a regular basis. to valuation at least every five years, subject only to

material movements between individual valuations

Library document1621710332608186567.xlsx 175 02/01/2022

for a wealth of exter

material movements between individual valuations. t will be acceptable for valuations to be carried out on dent formal professional valuations are not mandatory tain a valuation from a suitably qualified person who 2 FRS 15 ).

es, such as motor vehicles, there may be an active ate indices may exist allowing a valuation to be made erson (but not necessarily a qualified valuer) either ethod of valuation is used the assets’ values must be t value such assets can be recorded at depreciated

Charity

may become impaired. This occurs if its carrying value than its recoverable amount. In such a case FRS 11 erable amount. The recoverable amount is the higher

Return to fxed assets

of the future cash flows obtainable as a result of an es have fixed assets that are not held for the main mselves or in conjunction with other assets. In these e in use of the asset at an amount based on expected ure of its service potential will be more relevant, such r the replacement cost of the asset. Each charity can very but this must be reasonable, justifiable and

rried out where there is some indication that the is below its net book value. Such a review should, as ssets or where this is not possible then categories of

nges which may indicate an impairment include: nce of the fixed asset;

anges resulting in a reduction of beneficiaries for a

standards which adversely affect the activities of a

significant reorganisation;

th particular activities of a charity; ets primarily to generate incoming resources.

the charity should first determine the net realisable

net book value, the value in use will need to be o be above the net book value, the asset should be s made to sell the asset, it should be valued at its

ed to manipulate the write down of fixed assets. For ased, although it may have a low net realisable value, service delivery within the first years after acquisition. eds to be recognised, charities should determine this 11 (whilst being able to use alternative valuation treated as additional depreciation and included in the with paragraph 218. The revised carrying amount of ing useful economic life.

or further details of disclosures

Return to fxed assets

Library document1621710332608186567.xlsx 176 02/01/2022

for a wealth of exter

sets should be capitalised in the balance sheet (see gible fixed assets which are of historical, artistic or preservation and conservation objectives of a charity. ed to capitalise such heritage assets (Glossary GL 32) and omitted from previous balance sheets when the

ssets, the charity must hold the relevant assets in es. The objective of the charity may be specifically of eritage assets may be integral to a broader objective or science as in the case of museums and galleries. initially measured and recognised at their cost. ast accounting periods and not capitalised, it may be to them. In such cases these assets may only be

conventional valuation approaches lack sufficient

Return to fxed assets

uction or analysis of past accounting records or in additional benefit derived by users of the accounts in ts.

stablishing a cost or valuation for heritage assets and from this information will involve the separate ssets held within the heritage asset category. Whilst apply on an individual asset by asset basis, it should r sub-classes of an overall collection. For example, in sil collection may be onerous but valuing its collection

aluation bases. However, certain heritage buildings, ation issues. Whilst most specialised buildings can be see Glossary GL 18), particular issues can arise in of achieving the same service potential of certain ructures that are associated with particular locations,

irreplaceable in terms of recreating the same service s of its heritage value or educational benefit to the al structure or site.

Return to fxed assets

st or valuation may be difficult to attribute include: ollections including the national archives; l mounds, ruins, monuments and statues.

ute a cost or valuation to heritage assets which are

the open market. Where assets are purchased by a e asset to the charity, the purchase price should be uld be used as a reference point for the fair value of partly purchased by the charity and partly donated, a charity should be able to be made. Gifts on death or carry valuations for inheritance tax purposes that may

Library document1621710332608186567.xlsx 177 02/01/2022

for a wealth of exter

eparate row in the balance sheet and can be further classes appropriate to each charity eg collections, depreciation policy should be applied in accordance paragraph 259 certain heritage assets may have an esulting in any depreciation charge being immaterial. rtistic importance are held by a charity but not for cannot be regarded as heritage assets. Examples of s category include situations where a charity:

s administrative offices or as part of a property ion or educational purpose;

lection of historic importance, or antique furnishings e retention of which is unrelated to any objectives of

o house or display a collection of heritage assets on or conservation purposes).

etain an asset indefinitely for its own use/benefit and without external consent. Such assets are termed clude capitalisation of an asset.

he definition of heritage assets, should be capitalised nce sheet and in related notes. For example:

n investment within fixed assets, valued at open nt properties within the investment notes. undertaking its activities are included within tangible on an existing use basis unless of a specialised nature sary GL 18) valuation is adopted.

Return to fxed assets

re included at cost or valued at open market value. belong to a charity’s restricted funds, often being

Churches and ancient centres of learning may not ervation of the buildings they occupy is unlikely to be ets might nevertheless be considered integral to the o difficulties in ascertaining an estimate of the current me service potential as the existing one. For example, nd seating capacity of a medieval Cathedral but such of the original in terms of the religious and historical iously non-capitalised assets may be impractical and ffect explaining why conventional valuation techniques

in the context of artefacts contained within and efacts contained within a cathedral or historic church.

on under heritage assets

Library document1621710332608186567.xlsx 178 02/01/2022

for a wealth of exter

and investment properties (Glossary GL 39) and cash fied as a separate category within fixed assets except out reinvestment of the sale proceeds. In such a case, reason for this is that investment assets are generally em long-term (ie as fixed assets) for the continuing capital appreciation.

Return to fxed assets

me related investments (see paragraph 308), should e or at the trustees’ best estimate of market value as a true and fair view of the value of these assets to the ister the portfolio of investment assets so as to obtain ue risk. Investment assets should not be depreciated. t realised, should be reported in the “gains and losses of Financial Activities (see paragraph 219).

ve a readily available market price eg shares on a sets for which there is no readily identifiable market proach. For example:

d by reference to their underlying net assets or

one of the methods in (a) above outweighs the benefit the investment may be included at cost.

or securities (eg property), the trustees may use any h must be done at least every five years, subject only material movements between individual valuations. If

be revalued. Where a charity has a number of such carried out on a rolling basis over a five-year period.

ments for a discussion of the disclosure requirements.

Return to fxed assets

ming Resources

d endowment funds - should be recognised in the t of a transaction or other event results in an increase n the following three factors being met:

control over the rights or other access to the resource, lication;

e incoming resource will be received;

e of the incoming resource can be measured with

gross when raised by the charity (or by volunteers . However where funds are raised or collected for the ed by the charity, the gross incoming resources of the y by the organisers of the event, after deducting their

coming resources may arise from a wide variety of change for goods or services of approximately equal receipt of unrestricted grants or donations (resources

Return to fxed assets

ow such differing transactions can be distinguished. deciding how any individual transaction fits into this t are likely to lead to different accounting treatments ovided below set out how accounting standards and

Library document1621710332608186567.xlsx 179 02/01/2022

for a wealth of exter

ovided below set out how accounting standards and ransactions that are commonly undertaken within the accounting standards apply to different funding ne for each source of funds:

st law) govern the terms of the arrangement and how

a specific performance to be achieved (a contract or

purposes of the charity, or whether they can only be

Return to fxed assets

ods and/or services in return for a fee as part of their s recognised as incoming resources in the Statement arity has provided the goods and/or services. Where ce then a charity may not have entitlement to these been provided. In this situation incoming resources

Return to SOFA

harity becomes entitled to the resources.

ntain conditions that closely specify the service to be unding may be set out in a service level agreement o the performance of a particular level of service or r of meals provided or the opening hours of a facility ing resources derived from such performance-related on the delivery of the specified level of service and in ncoming resources to the extent that the charity has

particular purpose of the recipient charity does not performance related grant. For a performance related nly arises with the performance of a specific output ment to the grant in such cases only arises as the ontrasted with a restriction that whilst limiting how a es does not require a specific and measurable output ondition of a charity’s entitlement to the funds. Such t out in paragraphs 104 to 111.

criptions, these may be in the nature of a gift, or they n privileges. Where the substance of the subscription be recognised on the same basis as a donation. If the benefits, the incoming resource should be recognised criber receives rights to such benefits evenly over the membership income on a pro-rata basis for the period e an appropriate estimation technique for income

ke activities under a long-term contract. Owing to the cts, it is appropriate to take credit for ascertainable ources expended while contracts are in progress in

ific guidance on revenue recognition under long-term recognise incoming resources in respect of its n, and to the extent that, it obtains entitlement to assessment of the fair value of the goods or services of the total fair value of the contract. There will be he work performed and in such circumstances it would s recognised at the balance sheet date based on the son with total expenditure. In the case of services, it a proportion of the total time to be spent to fulfil the estimate of a charity’s performance and therefore charity, does not, in itself, justify the recognition of

mised grant or donation is evidence of entitlement. formally expressed in writing. Where entitlement is d, such promises should be recognised as incoming

Library document1621710332608186567.xlsx 180 02/01/2022

for a wealth of exter

asurability are met.

with conditions attached that must be fulfilled before ol) of the resources. Meeting such conditions may be reliant on external factors outside its control. Where y's control and there is sufficient evidence that the rce should be recognised. Where uncertainty exists as itions within its control, the incoming resource should til certainty exists that the conditions imposed can be

Return to SOFA

n a charity obtaining matched funding, or subject to a ditions attaching to such grants would not be either ipient charity. The charity would not therefore have ming resource until these conditions were met. The ould not be recognised until the conditions set have

ounts or certification of expenditure can be seen as sed to a condition that might prevent the recognition

to donor imposed conditions that specify the time an take place. Such a pre-condition for use limits the he time condition is met. For example, the receipt in

take place in a future accounting period should be sed as a liability until the accounting period in which to expend the resource.

events the recognition of an incoming resource, a s probable (but not virtually certain) that the condition o 348)

resources when they are receivable. Recognition of a ould not be deferred (Glossary GL 15) even if the diture on the activity funded by the grant or donation. he resource with the timing of the expenditure being ing resources cannot be deferred simply because the milarly, a condition that allows for the recovery by the not prevent recognition. A liability for any repayment ble.

specifically to provide a fixed asset or a fixed asset is lly have entitlement to the incoming resources when e incoming resources should be recognised in the ferred over the life of the asset. As explained in epay the incoming resources does not affect their ed, the use of the asset will either be restricted or s unrestricted the trustees may consider creating a he asset. The relevant fund will then be reduced over ith its depreciation. This treatment accords with the the recognition of assets and liabilities and provides or charities (see Appendix 2: SSAP4).

to the charity, for instance where it receives the acting as agents (and not as custodian trustees), are party and have no responsibility for their ultimate tion is legally a transfer of resources from the original fied third party. If the original payer retains the legal ation of the funds, the intermediary charity should not nancial Activities or the balance sheet (see paragraph

charity may control the use of resources prior to their l act as principal and have responsibility for their trustees of the intermediary charity may have applied ect how the grant should be used by the third party or olving intermediary charities may need their trustees er of the grant to the third party (and for its charitable t ) I ll f th i t th h ld

Library document1621710332608186567.xlsx 181 02/01/2022

for a wealth of exter

ty). In all of these circumstances the resources should Statement of Financial Activities and balance sheet

sources and resources held for third parties in the RP 114 and 115

s

a restricted purpose does not affect the basis of its al Activities. There is an important difference for ced on the purposes for which a particular resource Return to SOFA lfilled prior to entitlement or use by the charity. The e recognition of the incoming resource as the charity is simply limited by the restriction as to the purposes

e of providing fixed assets should be accounted for nt of the fixed assets provided with those funds will e terms on which the funds were received may either a restricted fund or the fixed assets’ acquisition may e held in the unrestricted funds (see also paragraph tment will depend upon the circumstance of each are re-allocated from one fund to another, this should funds.

y for a recipient of a grant when the roles are

conditions that closely specify a particular service to he terms of such grants may be set out in a service ent are linked to the performance of a particular level mple, number of meals provided or the opening hours uch cases, the grant maker will have negotiated the es. Expenditure on such performance-related grants urces expended to the extent that the recipient of the ds.

articular purpose of the recipient does not create a o includes specific performance terms that meet the

Library document1621710332608186567.xlsx 182 02/01/2022

for a wealth of exter

icted grants may fund a programme of work to be pient. Again, this does not mean it should necessarily ant simply because of the period of the funding d in monitoring or influencing the focus of the work as

fund a three year research programme enabling the Return to SOFA entified by the recipient as necessary to meet its own dge on a topic. In order to provide funding, the work e legal objects of the grantmaker which may also, as nvolved in monitoring or influencing the focus of the performance-related grant (see Glossary GL 45) if the d service to the grantmaker or its beneficiaries as a formance conditions that are directed at enabling the or increasing the pool of knowledge in an area of work Return to SOFA structive obligation arises to make the grant payment

ns

mance-related grants) and certain other expenditure exchange for consideration does not arise. Such objects but without creating a contractual or quasihe grant or the charity's beneficiaries. Nevertheless, L 40) which needs to be recognised.

or a legal obligation (Glossary GL 10). A constructive

ave created a valid expectation in other parties that nce that a valid expectation has been created might st practice in discharging such obligations and the e recipient. A constructive obligation always involves a mmunicated to those affected in a sufficiently specific art of the recipient that the charity will discharge its ves a commitment to another party, it follows that a ot give rise to a constructive obligation at the balance mmunicated before the balance sheet date to those aise a valid expectation in them that the charity will

Return to detailed SOFA

l or policy statements of their future intentions, for mine in a particular location or to improve the quality e. Such statements can be communicated in a variety out future plans in a Trustees' Annual Report or simply ments such as these do not create a constructive arity as to their implementation. A term in a grant y from a future obligation in the event of lack of funds y prevent the recognition of a liability by the donor nised when an event requires the funding offer to be

here:

e goods, services or grant funding is given, and ry or grant recipient.

y to have a realistic alternative but to meet the esulting liability will be dependent on any conditions

ich are dependent upon explicit conditions being met ment is made or upon future reviews. A liability, and such conditions fall outside the control of the giving control of giving charity, then the charity retains the re a liability should not be recognised.

es a specific commitment to grant fund a project over y arise:

s that determines whether future funding is

Return to detailed SOFA

o terminate the grant;

Library document1621710332608186567.xlsx 183 02/01/2022

for a wealth of exter

o terminate the grant;

view practice) that the discretion retained by the tion and an immediate liability arises only for the first

review process, although set out in the conditions of whether funding is provided in the subsequent years on should not be interpreted as a condition and a uld be recognised.

t that enables the charity to realistically avoid the s of the funding should be recognised.

at are outside the control of the giving charity. For ent on the condition that the recipient finds matching control of the giving charity, a liability arises and

conditions have not been met, such a commitment t liability. The balance sheet treatment for both ties is given in paragraphs 340 to 348.

of the charity’s income funds to represent contingent may not have created a liability.

of a liability no longer appropriate, the liability should expenditure heading in the Statement of Financial nt originally used to recognise the expenditure for the

support costs (Glossary GL 54) incurred that, whilst ves produce or constitute the output of the charitable

supporting income generation activities such as e of the charity. Support costs include the central or management, payroll administration, budgeting and ources, and financing.

Return to detailed SOFA

titute an activity, instead they enable output-creating re therefore allocated to the relevant activity cost paragraphs 168 to 174. This enables the total cost of tement of Financial Activities and for the cost of the ervice, programme or project level within the notes to te user interest in both the level of support costs ocation to the relevant activity cost categories that losures.

see the 'Analysis of support costs' note in the note

uld be adopted but a charity should also consider the

Library document1621710332608186567.xlsx 184 02/01/2022

for a wealth of exter

uld be adopted but a charity should also consider the st benefit advantages of the approach in that greater at a high incremental cost. ories, the following principles should be applied: llocated directly to an activity cost category. rectly to the output of more than one activity cost ember whose time is divided between a fundraising hould be apportioned on a reasonable, justifiable and

Return to detailed SOFA

Return to detailed SOFA

osses on disposal of fixed assets should be attributed

gle activity but rather provide the organisational tivities to take place. Such costs should therefore e and consistent basis to the activity cost categories

ment that may be applied. Examples include: e incurred directly in undertaking an activity; loyed within an activity; ivity. re multi-activity). a charity should be appropriate to the cost concerned nd selected to enable its accounts to give a true and ent will normally be consistent between accounting

ides information about its activities in the context of a ms, objectives and projects of a charity is frequently collections and telephone fundraising. In determining erefore a need to apportion costs, a distinction should

ising the profile of a charity which is associated with

Return to detailed SOFA

an educational manner in furtherance of the charity’s

publicity or information to be regarded as charitable ational manner. To achieve an educational purpose,

use the information to further the charity’s objectives;

can act upon in an informed manner to further the

ectives undertaken by the charity

a fundraising activity does not meet these criteria, it onors and therefore relating wholly to the fundraising

Return to detailed SOFA

at targeted high-risk beneficiary groups or the medical risks or symptom recognition and advising on steps fall within charitable expenditure in that it is targeted taken and is likely to link to the charity’s activities or en such information is provided in the context of a with costs apportioned between the fundraising and

note

ation or summaries in a format different from the i f i l d d i l

Library document1621710332608186567.xlsx 185 02/01/2022

for a wealth of exter

maries are often included in a non-statutory annual uation or impairment of fixed assets - whether held for o basic types of such summaries: uld be based on the full financial statements andes - will form part of the particular fund in which the was held at the time of disposal, revaluation or providing the greater detail required in the full s to the accounts). d as follows: nts information on a particular aspect of a charity's charity’s own use (ie not investments) should be resources or expenditure on particular activities of a ired asset and included appropriately in the resources mmarise the full statutory accounts. Activities; cial statements and summary information is set out in the charity’s own use should be included under the disposal should be treated as additional depreciation companies, the provisions of section 252 of the mmarised financial statements do not apply. However ended section of the Statement of Financial Activities;

s Act 1985 relating to the publication of non-statutory sidered to be impairment losses (see paragraphs 267 ndations set out below in relation to summarised should be included in the section on gains and losses statutory provisions applying to companies. There are own use.'

Return to detailed SOFA

summaries will be produced will vary considerably, been prepared, it is not practicable to give detailed ary financial information or summarised financial d be followed are set out below.

ns for smalleany summa r y financial information or summaris charities. Some of these have be e d n accounts must always be produced. Any summarised

Commission eement of Fina nc ial Activities and the balance sheet,ourage full disclosure. unts and

or inappropriate amalgamation of information.

essarily contain information on both the Statement of maller Charities uld nevertheless present information consistent with by either omission or inappropriate amalgamation of ions for smaller charities that are not subject to a esholds). The concessions cover the Statement of

be accompanied by a vities, smaller charitie s tatement, signed on b do not need to analys e eitherhalf of activity categories within the Statement of Financial Return to detailed SOFA e classificatia summary o ns to suit their circumstances. f information relating to both the (This aring a standard template and users would have e sheet; ds) ch the summarised financial statements are derived er audit, independent examination, or reportingtive approach to analysis within the Statement of y no longer be necessary, for example, where these d, whether the report contained any concerns such aan activity category or where relevant information i s cial Activities . The disclosure paragraphs affected by is qualified, contains an explanatory paragraph or when the templates have been modified to e provided in the summarised financial statements to escribed above) e of the report; g Characteristics of Summarised Financial Statements Paragraph References in the SORP 122 activitiesranch of the charity (see paragraph 77), it must be 146 statements are for the branch only and have been 166 - 167 g charity (giving its name); 175 - 176 ome 183 - 184xternal scrutiny report (as applicable) and the 186 191 - 194approved; and costs by acs, say whe t her or not the Trustees’ Annual Report and ivity 202, 203(b) ommission. 212 scrutinised, a statement from the external scrutineer, mmarised financial statements are consistent with the her the alternative approach is adopted or not

tails of staff emoluments in bands (paragraph 236). n, in whatever form, should be accompanied by a uce the detail of reporting requirements placed on ing to follow the full recommendations of the SORP is ounts;

udited independently examined or subject to a

Library document1621710332608186567.xlsx 186 02/01/2022

for a wealth of exter

udited, independently examined or subject to a eate undue problems for smaller charities, and tees’ report and external scrutiny report (as e taken up by many such charities is the staff

harities are required to produce a Trustees’ Annual Act 1993 provide for charities that are not subject to esholds) to produce an abbreviated Trustees’ Annual equired to produce the report, and includes charitable

ed Trustees’ Annual Report is summarised in table 11

ement is not greatly different from the standard of little sgnificance. In the template we have on the trustee report

Report for a smaller charity audit)

Paragraph 41(a) known 41(a) arity Number) (if any) 41(b) ) 41(b) y; 41(c) ) for the charity on harity trustee is a body dy corporate should 41(d) a charity trustee 41(e) the charity is 44(a) ppointment of new trustees, 44(b) out in its 47(a) elation to 47(e) arity during the year (54) 55(a) and the circumstances to eliminate the deficit. 55(b) his capacity.

Library document1621710332608186567.xlsx 187 02/01/2022

for a wealth of exter

s) on whose falls within their own objects.

d segregation of such assets

o present a true and fair view of the state of financial ng charity including its subsidiary undertakings. The overed by FRS 2. These principles should be applied and its subsidiaries are companies or otherwise

unts prepared in addition to those prepared for the he subsidiary undertakings in its own right. uld prepare consolidated accounts including all its t where:

ubsidiary undertakings from consolidation (see

ments, (Glossary GL 31) of the group in the d for a statutory charity audit (see Appendix 4); or are not material to the group; or

rtue of being a special trust or a charity subject to a rities Act 1993, has had its accounts aggregated with

from consolidation in certain limited circumstances ally hinder the exercise of the parent undertaking’s or management or subsidiary held only for sale). It is ly to a charitable group.

or a variety of purposes including undertaking nonnd carrying out charitable activities. The difference is not sufficient of itself to justify non-consolidation. registered company which is insolvent and is being be excluded from consolidation.

s will be included in the aggregated accounts of the ricted funds or endowment funds of the charity (see harity may control another charitable entity that does example, because the objects of the subsidiary are the tests for control (the parent’s ability to direct and uld be consolidated. Benefit to a parent charity may by the charitable subsidiary to its own beneficiaries charity or in terms of cash flow to the parent charity. ts are substantially different from the parent charity, o

narrower than its parent will need to be accounted for ns in the consolidated accounts.

aking meets the Control test

by the measure of control (Glossary GL 44) exercised control can be determined in the context of: ownership) and/or ies of the subsidiary. ies Act 1985 which should be followed by those

Return to notes

Library document1621710332608186567.xlsx 188 02/01/2022

for a wealth of exter

ies Act 1985 which should be followed by those

nd subsidiary undertaking may arise where the parent such a way that all the risks and rewards of the g. An example is when the ownership of the assets is xclusive use of those assets and meeting the costs of arded as quasi-subsidiaries and should be accounted

be regarded as a subsidiary undertaking where the ctually exercises, dominant influence or control over managed on a unified basis. Control can arise in any

or employees of the parent charity are, or have the arity trustees of the subsidiary charity; or harity reserves to the parent charity’s trustees and/or ent to, the exercise of significant discretion by the

rity as a subsidiary is that the connection between it ng and financial policies of the former are likely to be ter. This is likely to be the case where one of the aph exists, but trustees may, in a particular case, be

tially or exclusively confined to the benefit of another lar consideration. For example, friends’ groups, on pport to an established charity whilst retaining legal upport. In such cases the formal powers identified in nfluence may arise less formally. For example, the nature or timing of the support it wants to achieve. on a critical matter. Where evidence exists of such for consolidation should be regarded as being met.

method of consolidation, which should be carried out

ources expended should be shown gross after the s desirable that similar items are treated in the same ctivities to generate funds in the charity should be ry, and charitable activities within the charity should bsidiary. Similarly, costs of generating funds and/or ggregated with those of the charity.

tegory headings within the permissible format of the malgamations of activities. The headings used should it is not possible to exactly match items between the segmental information should be provided so that the y undertaking are transparent (see paragraph 405).

Return to notes

n (England and Wales)

prepared under accounting standards, in England and vidual charity’s accounts to be filed with the Charity here the group and parent charity’s accounts are nts, as well as two balance sheets there should be two roup and one for the parent).

filed with the Commission omitting the Statement of Commission is prepared to accept these accounts as e parent charity are clearly disclosed in the notes. The alance sheet of the parent charity. The Commission filing of any individual charity Statement of Financial have a legal right to request this statement. (Note le from Peter Brown and Co at an additional fee ed)

Library document1621710332608186567.xlsx 189 02/01/2022

for a wealth of exter

the Trustees’ Annual Report concerning the activities rial subsidiary undertakings (see paragraph 53). This

red, the policy notes should state the method of ciated entities are included and excluded from the solidation template

the narrative section relating to subsidiaries in

nting requirements in consolidated accounts where a rrangements.

s, joint ventures and joint arrangements and provides ationship between the entities involved. Where these subject to the exemptions in paragraph 383.

pating interest in another undertaking and exercises i nancial policy then this is likely to be an associate 20% or more of the voting rights in any undertaking, erest and significant influence over its operating and

amme related investments may on occasions combine se and on occasions may be invited by the recipient ustee with particular skills or expertise. Where the ody, this might be construed as creating an associate. or appointment is used in conjunction with a formal or nfluence through direct involvement in setting the es. Where the charity trustee appointment is simply ipient charity whilst allowing the charity to adopt its elationship is unlikely to be created.

Return to notes

tity is jointly controlled by two or more undertakings, joint venture, so that no single investing undertaking do so. It is possible for a charity to beneficially hold taking but for the management arrangements to be other partners and hence the undertaking is a joint

angements where they may carry out activities in blishing a separate legal entity.

nt Ventures and Joint Arrangements

nts based on the net equity method. The consolidated the net interest in the results for the year in the et incoming resources/(resources expended) before

Library document1621710332608186567.xlsx 190 02/01/2022

for a wealth of exter Return to notes

et incoming resources/(resources expended) before nterest in associates should be shown as a separate charity’s rights to the associate’s assets are severely dividend distribution) then this should be reflected in

n a gross equity method. This method requires the ss incoming resources of joint ventures on the face of ment of Financial Activities in charities). However, this urces and must be clearly distinguished. For charities ng resources from joint ventures in the Statement of an additional row showing the total share of gross duction in total incoming resources. In addition a row year in the joint ventures as a separate row after the ” row must be included (this may be combined with he share of the gross assets and the gross liabilities fixed assets investments.

return to notes

ments and unrealised gains on other fixed assets, the wn on a separate row, with the gross share relating to te row or combined with the appropriate lines on the

charity’s gross share of the incoming resources and ties should be included in the accounts in the same . If under the arrangement the charity is jointly and ue the part of the obligation for which it is responsible pected to be met by the other parties as a contingent

the narrative section relating to associates in

ORP with respect to charitable companies. In following meet most of the reporting requirements under the reproduce these requirements in full and a charity hen considering the application of the Companies Act. s SORP and the other special sections as applicable, ust be met by charitable companies. Ways of meeting ggested below, but these too should be considered in nces.

he Companies Act 1985 with respect to the form and ates the contents of the annual (directors’) report. In aritable companies have to prepare both that report, of the Charities Act 1993, but the Charity Commission filing under Part VI if it also contains the information s (unlike non company charities) do not have an ors from the Annual Report.

return to notes

ny to prepare annual financial statements which give end of the year and of its profit and loss for that year. A of Schedule 4 to this Act requires the directors to lance sheet and profit and loss account in any case ness requires such adaptation.

Library document1621710332608186567.xlsx 191 02/01/2022

for a wealth of exter

q p ew and to adapt the accounts for the special nature of umption that charitable companies will, in all but ith this SORP in order to meet the requirements of rtures from this SORP are required to be disclosed in

the Summary Income and Expenditure Account

r the Companies Act 1985 must include an income atements. The Statement of Financial Activities is f a charity which would be found in both the income

return to notes

total recognised gains and losses as required by FRS t is therefore not necessarily required. Circumstances here the income and expenditure account cannot be inancial Activities and there are items which may be ome and expenditure account, such as: ring the year; and he year.

ory income and expenditure account is included d practice to use it .

wed in the income and expenditure account, most of al Activities below the point at which a conventional as explained in paragraph 424. Furthermore - where tion of investments (as explained in paragraph 219) all the revaluation movements will be classified as

s of a charitable company does not include any of the roduce a separate summary income and expenditure nancial Activities should be changed so that: n income and expenditure account and statement of nd

income/(expenditure) for the year” which replaces or outgoing) resources for the year”.

alised gains and losses are included in the Statement fall within the bounds of the headings for (a) and (b) rticular attention may need to be given to impairment ith the guidance in FRS 11 , are realised in some

re account is required, it should be derived from and in the Statement of Financial Activities. It need not ed income funds but the accounting basis on which he Statement of Financial Activities. It should show acquisitions and discontinued operations:

ssets belonging to the charity’s income funds; s previously received as capital resources and now

oming resources – other than revaluation gains – of all nds);

e funds;

actice, the format may need to be modified to comply the charity’s own governing document.

mmary income and expenditure account and which a summary income and expenditure account for the

Library document1621710332608186567.xlsx 192 02/01/2022

for a wealth of exter

n and Statements

stinguish between the two different types of

any kind is prepared (including financial information nd annual reviews), charity trustees are reminded that ate. This is dealt with in paragraphs 371 to 379.

ecommendations in paragraphs 371 to 379 but their nclude a statement indicating whether or not the e been delivered to the Registrar of Companies.

ation or summaries in a format different from the maries are often included in a non-statutory annual o basic types of such summaries:

hould be based on the full financial statements and ut providing the greater detail required in the full s to the accounts).

ents information on a particular aspect of a charity's resources or expenditure on particular activities of a mmarise the full statutory accounts.

cial statements and summary information is set out in

Summary financial information

Draws information from only parts of the accounts.

May be based interim accounts or other financial

information as well as statutory accounts.

Makes no reference to either of these primary statements.

Library document1621710332608186567.xlsx 193 02/01/2022

for a wealth of exter

Represents analysis eg. of a particular activity or region.

companies, the provisions of section 252 of the mmarised financial statements do not apply. However s Act 1985 relating to the publication of non-statutory ndations set out below in relation to summarised statutory provisions applying to companies. There are

summaries will be produced will vary considerably, e been prepared, it is not practicable to give detailed ary financial information or summarised financial

lowed are set out below.

any summary financial information or summarised accounts must always be produced.

ement of Financial Activities and the balance sheet, unts and

or inappropriate amalgamation of information.

essarily contain information on both the Statement of uld nevertheless present information consistent with by either omission or inappropriate amalgamation of

be accompanied by a statement, signed on behalf of

but a summary of information relating to both the e sheet;

ch the summarised financial statements are derived ether audit, independent examination, or reporting

d, whether the report contained any concerns such as

g is qualified, contains an explanatory paragraph or e provided in the summarised financial statements to e of the report;

ranch of the charity (see paragraph 77), it must be statements are for the branch only and have been g charity (giving its name);

he external scrutiny report (as applicable) and the

approved; and

s, say whether or not the Trustees’ Annual Report and ommission.

scrutinised, a statement from the external scrutineer, mmarised financial statements are consistent with the

n, in whatever form, should be accompanied by a

ounts;

n audited, independently examined or subject to a

trustees’ report and external scrutiny report (as

Library document1621710332608186567.xlsx 194 02/01/2022

for a wealth of exter

benefit schemes: defined contribution schemes and ppear in the glossary (GL 16 & GL 17). Details of how

defined benefit scheme, where the contributions are , or where the charity is unable to identify its share of nsistent or reasonable basis, should account for its ned contribution scheme. Where a charity is unable to d liabilities of the scheme, the disclosures set out in

heme recognised in the accounts is equal to the accounting period. These pension costs should be ed categories of the Statement of Financial Activities in relation to such schemes are set out in paragraph

affects charities that operate defined benefit schemes n a defined benefit scheme is the excess/shortfall of below the present value of the scheme liabilities. In

that the employer charity is able to recover a surplus re or through refunds from the scheme.

nt that it reflects its legal or constructive obligation of also be adopted in relation to the provision of deathot wholly insured, and provided through a defined

fit scheme should be undertaken by an independent, three years and updated annually at the charity’s .

heme normally gives rise to an asset or liability within e reporting charity will normally be the employer and covered either in the form of reduced contributions or ability arises through a legal or constructive obligation y rest with the main charity’s unrestricted funds.

Gains

or liability (other than that arising from contributions or deficit in the scheme) should be analysed into the se will only be recognised through the Statement of FRS 17. (See Appendix 2 for FRS 17 implementation

he resources expended categories of the Statement of own computations. The basis of the allocation should pension costs based on the staff costs of employees other approaches (eg allocation based on pension equitable allocation. Allocation of the components

rvice costs and gains and losses on settlements and

Library document1621710332608186567.xlsx 195 02/01/2022

for a wealth of exter

rvice costs and gains, and losses on settlements and iate resources expended categories set out in

n the net of the interest costs and expected return on resources expended categories set out in paragraph ould be recognised as an incoming resource and

on settlements or curtailment, are material in the e) category in which they are recognised, the accordance with FRS 3 – Reporting Financial

e recognised within the “gains and losses” categories the heading “actuarial gains and losses on defined

ccruing to a restricted fund only where it can be asset will accrue to a particular fund through reduced iability should be allocated to a particular fund only ability arises to fund the deficit and could properly be may arise where staff are specifically engaged on a e. This allocation may be undertaken on the basis of the provider of a particular restricted fund may be hich any pension asset or liability is allocated to that be properly charged through it.

y to a restricted fund should be reviewed on an annual rticular project indicate that the economic benefits or lar fund then the asset or liability should be allocated ansfer of funds through the Statement of Financial

pension asset or liability within restricted funds are cognised within the restricted funds column of the ents of the pension cost should be recognised within ategories and on the same basis as set out in the

aff costs without the criteria for the recognition of a d fund’s balance sheet being met. For example, a re or staff may be frequently transferred between hich will ultimately recover any surplus or meet future h circumstances, the restricted funds column of the recharged with an appropriate portion of the current ting to the staff engaged in activities within restricted f Financial Activities would, as with any recharge, also etween fund balances. The balance sheet of the recognise the overall pension asset or liability. ses on curtailments and settlements arise, such costs when a charity can demonstrate the costs relate to stricted funds.

cheme contributions are given in FRS17. This section

erated by a charity, the notes to the accounts should

ontributions at the year end.

d benefit pension schemes are detailed and charities completing their disclosure notes. The notes to the on:

uation,

Library document1621710332608186567.xlsx 196 02/01/2022

for a wealth of exter

uation,

period and any agreed contribution rates for future

e beginning of the period and at the balance sheet

tween equities, bonds and other assets and their

nd the resulting surplus or deficit compared with the

component parts of the defined benefit costs charged Activities;

fit scheme has established that the employer’s share dentified on a consistent and reasonable basis (eg by s or actuaries) this fact should be disclosed. Any e surplus or deficit in the scheme and the implications

charity should be disclosed together with a brief g rise to this position.

fit scheme discloses a material pension liability, the ort in the explanation of the policy on reserves) should rt impact, if any, on resources available for general balance on unrestricted funds, the note should also ed fund of the charity to contribute to any resource

e notes to the accounts (or Trustees’ Annual Report) n the nature of the economic benefit derived from the r which any benefit in terms of reduced contributions

Library document1621710332608186567.xlsx 197 02/01/2022

e rnal resources rces page

rts of the accounts production file

cel worksheets in this template

ternal resources page

e entry

of accounts age of acs port nt Examiner's Report

of Financial Activities & I&E ac

eet Statement e accounts hedule to the SOFA alyses per the SORP exts and explanations checklist mendments to templates rkings for cash fow rkings for acs nt Examination directions 2008

and - see OSCR guidance

small companies.

Library document1621710332608186567.xlsx 198 02/01/2022

rnal resources

er to comply with the provisions of the SORP te notes.

Library document1621710332608186567.xlsx 199 02/01/2022

Incorporated	charity - Exempt from external scr
Client	HAWA
Code	0

Schedule prepared by Reviewed by

Incorporated charity - Exempt from external scrutiny

Initial check to establish that exemption from scrutiny is the

Note that the rules are slightly different for unincorporated c Company) charities can NEVER prepare Receipts and Paymen

Establish the gross income. If only a part of a year is involved for any period then gr

Remember that gross income is not the same as turnover, and can include capital g normally included in turnover, including the value of goods and services in kind. Che Charities Act

Unlike audits, the income is not 'pro rata' for a period of less than a year. Throughout the UK, the accounts are subject to a statutory audit if gross income exc before deducting any liabilities exceed £3.26 million. ( But see exemption Engla accounts must be prepared on an accruals basis.

Scotland

There is no exemption from examination in Scotland

England & Wales

In England & Wales, even if total gross assets before deducting any liabilities income is less than £250,000, then no audit is required.

In England & Wales, all accounts with income over £250,000 must be examined holding specified qualifications.

Exemption from external scrutiny for charities in England & W

For accounting periods ending on or after 1st April 2009 -income equal to or less tha

Northern Ireland

The legislation has been enacted, but is not yet implemented.

Also consider if an audit is required because the charity is a part of a g apply. Look at the detailed provisions to determine whether or not an au required These provisions can be complex and reference to the legislatio

required. These provisions can be complex and reference to the legislatio group income, excluding intercompany transactions, exceeds £500,000 , t and an audit is required.

Having established the eligibility for exemption from external sc then consider whether

a) an audit is required by a funder or a conditions of a grant or donation b) an audit is required by the governing document of the charity c) an audit is required under some other statutory or regulatory regime d) the charity is a part of a group. If so different income levels will ap determine whether or not an audit of the charity and/ or the group is requ and reference to the legislation may be required

If all the answer to all these questions is no, then an exemption from extern

Disclosure exemptions for independent examinations

Certain disclosures are compulsory for statutory audits, but there are e audits ( which includes independent examinations). The exemptions are hig areas the SORP does emphasise that full disclosure is encouraged.

Links to sections of the checklist

It is recommended that the first step is a review of the introduction in the case of smaller charities, then work through sections A to H Introduction to checklist

A Trustees' Report

B General Areas

C SOFA

D Balance Sheet

E Notes to the Accounts (including accounting policies)

F Cash Flow statement

G Subsidiaries and consolidation

H Associates and Joint ventures

I Small charity exemptions from disclosure

Introduction

Checklist of disclosures under the Charity SORP 2005 (Revised 200 See disclaimer & terms

This checklist is only for the purposes of charity disclosure. For charities who are also limited companies the appropriate company checklist should also be used, and the SORP should be rev

In the application column 'AA' indicates disclosure is mandatory for all chari Where 'AA' is not shown ,disclosure is only required when relevant

Before conducting this disclosure checklist all relevant Accounting and Auditing standards should be reviewed

In addition review the 'Practice Note on the Audit of Charities in the United Kingdom (revised) published by the APB in April 2002 which includes matters relating to independent examinations

Hint

A useful technique for reviewing the SORP and finding anything rel internet and use the the find facility to seek for key words. This file Click for full text of 2005 SORP

Where an indication is shown that VT accommodates a particular disclosure be taken to indicate that there is the facility for the disclosure within VT or t This checklist is designed to be worked through in conjunction with For smaller charities the exemptions available should be reviewed b A VT indicator simply means the disclosure can be accommodated - not tha The accounts should be checked to see that the disclosure has been identifi Where a disclosure is not accommodated by VT a manual note or amendme Note that in the case of endowment funds this checklist may not co which should be reviewed in detail.

Checklist prepared by

Click for full text of 2005 SORP

Note that the SORP should be referred to for the limited exemption Where narrative rather than numbers is required careful reference

Introduction to SORP checklist

Click for full text o

Before conducting this disclosure checklist all relevant Accounting and Auditing standards should be reviewed

In addition review the 'Practice Note on the Audit of Charities in the United Kingdom (revised) published by the APB which includes matters relating to independent examinations and to the contents of auditors and accountant's reports

A Trustee's Report Return to lead schedule

Click for full text o

Report must be prepared, with notes and accounts

Registered name of charity

Other names by which charity is known

Nature of governing document

Charity number

Company number if relevant

The address of the principal office ( or registered office if a co)

The names of all trustees ( or at least 50 including officers) on the date the report was approved

See requirements if a trustee is a body corporate

Names of all persons who served as trustees during the financial year Note this is different to the requirements of 41(d)

The name of the Chief Executive or other senior staff member(s) to whom day to day management is delegated

If the charity is a company,the names of current directors

The names of bankers,solicitors,auditors,examiners,investment reporting accountants and other professional advisors

The method of appointment or election of trustees

The name of any person or body entitled to appoint trustees

The policies and procedures adopted for the induction and training of trustees

Description of organisational structure and decision making

Where the charity is a part of a wider network then the relationship and its impact must be disclosed

Statement of relationships with other charities & organisations including subsidiaries and charities and other organisations with which it cooperates

Statement of relationships with related parties

A statement of major risks and systems in place to mitigate

Explanation of charity's object by reference to governing document

The charity's aims and the difference it seeks to make through its activities

An explanation of the main objectives for the year

An explanation of the strategies for achieving the objectives

Details of significant activities including programmes, projects and services that contribute to the achievement of objectives

Grant making policy

Where material social or programme investment activities are undertaken the policies adopted should be explained

Comments on contribution from volunteers

See the SORP for requirements re measurement and valuation

The very detailed requirements of the SORP with regard to assessing and reviewing the achievements of the charity and its performance against objectives should be disclosed

A review of charitable activities undertaken explaining performance against objectives set

Comments on performance of fundraising against objectives set where material

Comments on investment performance against objectives set where material

Comments on those factors both within and without the charity's control which are relevant to the achievement of its objectives

A detailed financial review should be disclosed

Policy on reserves. Level of reserves and why held

Where funds are in deficit , an explanation and proposed action This should also be in the notes to accounts

Plans for future periods including key aims and objectives

Where funds held as custodian trustees disclose both as a note to the accounts and in the trustees' report :-

a) A description of the assets involved

• b) The objects of the charity for whom the assets are held and how this activity falls within the charity's own objects

• c) Details of safe custody and segregation arrangements

Comment on the activities and performance of the charity's subsidiaries

Public benefit statement

Report formally approved before signature by the board of trustees

Date of approval shown

Statement of facts disclosed to auditor Mandatory for statutory audits where accounting period commencing on or after 01/04/05

Comparatives where relevant

B General areas Click for full text o Return to lead schedule

Do accounts comply with accounting standards and embrace fundamentsal accounting concepts

Is proper fund accounting adopted and fully disclosed

Duration of accounting period properly disclosed

Is FRS3 relevant with regard to discontinued operations The template will need to be manually amended to cope with this

Category headings may be omitted throughout the accounts when they are nil for both the current and the prior period, except where a nil disclosure is required by specific sections of the SORP

Are realised/unrealised gains and losses kept within the fund to which they relate

Are the movements on each funds reconciled to the opening and closing balances on each fund and disclose the detail required by the SORP

Are branch to branch transactions netted off and are branches properly accounted for in accordance with the SORP

Are fixed assets purchased with a grant and subject to restrictions on sale or use included in a restricted fixed asset fund

Are other fixed assets purchased with a grant included in a unrestricted fixed asset fund

logical consequen

C Statement of Financial Activities Return to lead schedule

Click for full text o

Does the layout follow the prescribed structure adapted for the circumstances (Table 3)

Distinguish between types of funds

Are the rules on income recognition followed

For deferred incoming resources give reasons for deferral and give the analysis required by the SORP

Where resources have been held for third parties give the details required by the SORP

Are incoming resources analysed by activity as in Table 3 of SORP

Do the accounting policies show the basis of any apportionments

Comparative figures

If no entries for both the current and prior year under any category the category may be omitted

Where material details of the types of activities to generate voluntary income should be disclosed in the SOFA or the notes

Restrictions dealt with in accordance with SORP

Material components of donations legacies and similar incoming resources to be shown on SOFA or in notes

Legacies only included in accordance with SORP

Gifts in kind treated in accordance with SORP

Basis of valuation of gifts in kind disclosed and adj on sale

Information re undistributed gifts in kind

Donated goods and services ( eg seconded staff,donated facilities etc) grossed up , valued and treated as incoming resources

and disclosed as required by the SORP

Incoming resources from activities for generating funds dealt with in accordance with SORP

Investment income dealt with in accordance with SORP

Incoming resources from charitable activities dealt with in accordance with SORP and disclosed with the detail required

Gains on disposals of assets included in incoming resources

Analysis of costs of incoming resource activities linked to the relevant incoming resources generated (may be given in notes)

Support costs analysed in detail as required by the SORP

Depreciation etc on charitable assets included in the appropriate fund and activity headings

Gains on disposals treated as incoming resources, losses treated as depreciation in resources expended

Accounting polices disclose the apportionments of costs between activities and the details of any estimation techniques and the basis of multi purpose activity analysis

Are the resources expended analysed as required

Where material, are the costs of generating voluntary income analysed by activity

Where material , are the costs of fundraising analysed by activity

Charitable expenditure analysed and disclosed in accordance with SORP, including analysis by activity and analysis of support costs

Grants payable analysed and disclosed in accordance with SORP, including analysis by activity

Analysis of grants by individuals and institutions and by activity analysis and explanation - may be given in notes The disclosure requirements are details and should be worked through by reference to the SORP

Governance costs should be analysed by nature, and should be fully explained

The nature and purpose of material transfers between funds should be expl

Other recognised gains and losses should be disclosed as set put in the SO and allocated to the section of the SOFA reserved for them

Impairment loss on non investment assets included in depreciation

By default the profit/loss is shown by VT in other incoming resources When a loss occurs a manual adjustment to the TB/schedules will be necessary to include the loss within the depreciation costs. This is achieved by increasing the depreciation and reducing the written value of the asset so there is a notional nil gain

Non impairment gains and losses on revaluation of non investment assets should be included in the section of the SOFA reserved for them

Gains on non investment assets to be included in other incoming resources

Gains and losses on fixed assets to be treated in accordance with the SORP

Losses on non investment assets to be included as additional depreciation

Gains and losses on investment asset to be disclosed and accounted for in accordance with the SORP

D Balance Sheet Return to lead schedule

Click for full text o

The majority of the disclosure requirements are dealt with in the no is adopted, there should be compliance with the disclosure require detail has been correctly computed by the user, and the template c

Does the layout follow the prescribed structure adapted for the circumstances (Table 7)

Comparative figures where relevant

Intangible assets to be disclosed in accordance with FRS10

Tangible fixed assets to be disclosed in accordance with FRS15

Heritage assets to be disclosed separately

Investment assets to be disclosed separately

Programme related investment assets to be disclosed separately

Current assets analysed between stocks and wip, debtors, investments, cash at bank and on hand with subtotal for this group.

Creditors falling due within one year .

A subtotal for net current assets

Total assets less current liabilities

Creditors falling due after one year

Long term debtors if material should be shown separately otherwise show in the notes

( VT does not accommodate this item if it is to be shown in the balance she

Provisions for liabilities and charges

Total net assets

If no entries for both the current and prior year under any category the category may be omitted

For the following special situations refer to the SORP

Defined benefit pension scheme asset/liability

Revaluation reserve

Pension reserve

Positive and negative balances on funds not to be netted off

If a fixed asset is acquired in whole or part by a grant to be shown at full acquisition cost not after netting off . This may be a departure from SSAP 4 in relation to government grants but this is deemed to be the best interpretation of SSAP4 - see appendix to SORP 2.5

When fixed assets have been donated they must be included at the value of the gift shown in the SOFA as a donation

Analyse funds between unrestricted,restricted and endowment See manual for treatment of endowment funds

E Notes to the accounts Return to lead schedule

Click for full text o

Comparatives where relevant

Accounting policies

Accounting policies should comply with FRS18

Accounting policy for the

basis of preparation of accounts ie in compliance with the SORP accounting standards,FRSSE ( if appropriate) Charities Act or Companies Act, historic cost basis except for…..

Accounting policy for departures from SORP or standards giving details required by Para 359

Accounting policy for omission of branches

Accounting policy for incoming resources reviewing all seven categories in Para 362

Accounting policy for liabilities and resources expended reviewing all three categories in Para 363

Accounting policies for the recognition of different classes of costs

Accounting policies for the basis and principles of costs allocation

Accounting policies for capitalisation of fixed assets reviewing all five categories in Para 364

Accounting policies for inclusion of investments reviewing all three categories in Para 365

Accounting policies should show any departure from SSAP 4 in order to comply with appendix 2.5 of the SORP

Accounting policy for depreciation, rates ,method and useful lives

Disclose separately investment assets held for investment return and programme related investments held for charitable activities

Accounting policy for capitalisation of heritage assets and the measurement basis for inclusion in the accounts

Accounting policies for the basis of inclusion of realised and unrealised gains in the SOFA

Accounting policy with regard to the structure of funds,describing the nature of the funds and the policy for the transfer between funds and allocations to designated funds , and also the policy for determining designated funds

Accounting policy note for pension costs and liabilities

Accounting policy note for foreign exchange gains/losses

Accounting policy note for exceptional items

Accounting policy note for finance and operating leases

Accounting policy note for irrecoverable VAT

Accounting policy on the basis of valuation of goods in kind and donated services and facilities

Any assets or liabilities not in balance sheet to be disclosed

Description of the sources of material incoming resources analysing between donors etc

Movement on and reasons for deferred incoming resources

Movements on resources held for third parties

Where notified material legacies have not been provided in the SOFA disclose in notes

Analyse gifts in kind and donated services incoming resources by category staff, donated facilities etc)

Analysis and headings of incoming resources sufficiently detailed to give reader an understanding of the charity

Analysis of material incoming resources from government and other public bodies, distinguishing between donor and type of incoming resources

The analysis of government and public items was a formal requirement of the 2000 SORP. Although not formally in the 2005 SORP it is still felt to be good practice in view of para 83

In adopting the SORP 2005 and changing to activity based reporting the comparatives will need restating in accordance with FRS18

An accounting policy note to cover this is included in the accounting policy section of the template

If a designated fund has been established an explanation of why

the fund has been established should be given

Where material provisions have been cancelled ensure it is correctly accounted for

Analyse grants paid between individuals and institutional

Show total number and total value of grants paid for institutional and individual grants for different charitable purposes

Disclose a sufficient number of institutional grants if more than 50 or all such grants if less than 50, excluding those less than £1000

Disclose name of institution and the number of value of grants given Analyse between different purposes or the same institution

Analyse grants paid by category of function

Exemption from grants disclosure requires correct procedures

Major items of expenditure on charitable activities should be analysed in accordance with the analysis of incoming resources

Support costs of grants to be quantified and analysed by activity

Related party transactions - review SORP

Except for trustees remuneration and expenses only disclose material transactions with related party Trustees benefits and payments to trustees are always material Trustees includes connected parties to trustees

Disclose Name of related party, descriptions of relationship and interests of the parties, description and amount of transaction outstanding balances , and provisions for doubtful debts at the balance sheet date , any amounts written off in year , and any other relevant factors

Disclose details of trustees' remuneration ( always regarded as material no matter how small) analysed by individual

Disclose pension arrangements for trustees

The legal authority for payments to trustees

Note for above sections that related parties and trustees include persons connected with them

If no trustee or person connected with them has received any

remuneration that fact must be stated

If expenses have been reimbursed to trustees the aggregate amount the nature of the expenses analysed over headings and the number of trustees involved must be disclosed . This includes payments to third parties on behalf of trustees

If no trustee or person connected with them has received any expenses that fact must be stated

If indemnity insurance has been purchased from charity funds to indemnify the charity or its trustees, employees or agents against neglect or default this fact and the cost of the insurance should be disclosed

This was a formal requirement of the SORP 2000 but is not explicit in the 2005 SORP. However it is felt to be good practice

Review the SORP regarding disclosure of staff costs

Disclose arrangements with third parties and the cost thereof eg seconded staff. independent employees etc

Disclose total staff costs, salaries, wages employer's NI and pension contributions, numbers of full time equivalent staff and analysed according to the manner in which activities are organised

Show number of employees in bands of £10000 from £60000 upwards. Not applicable if no employee over £60000 Note the definition of earnings for this purpose

Pension details for staff over £60000 should show details required by SORP

If there are no employees with emoluments over £60000 this should be stated

The fees payable to the auditor, independent examiner or reporting accountant should be disclosed analysed between the costs of scrutiny ( ie audit etc) and other services such as taxation, advice and accountancy

Other non statutory costs of external scrutiny need not be disclosed eg accountants for limited companies with less than £90,000 turnover

Review the SORP with regard to ex gratia payments

The amount of any ex gratia payment , the none monetary benefit and any other related expenditure, or waiver of rights to which the charity is entitled should be disclosed and the authority under which the ex gratia payment is made should also be disclosed

Changes in resources applied for fixed assets for charity use should be disclosed if expenditure on fixed assets is material analysed between net movement in funds for year, resources ( net of disposals) used on fixed and programme related investment assets and the remaining net balance available for future use

Long term debtors if not shown in balance sheet should be analysed

Where material, long term debtors should be shown on the face of the Bala Sheet This is not supported by the VT template which will need manual alte

Fixed asset note to analyse between freehold,leasehold,plant and machinery(including vehicles) fixtures and fittings and equipment and payments on account and assets in the course of construction This may be varied to meet circumstances

(in VT only three columns are available and a maximum five columns are required under para 203. However, it is unlikely that any charity would have all five categories . It is possible either to manually amend the column headings in VT or to adapt them in line with the final sentence of para 203. Alternatively the fixed asset note could be duplicated with three headings in one note and two in the other or three columns could be adopted combining say plant and fixtures and fittings and then giving the requisite details in narrative)

The fixed asset note should show opening cost or valuation opening depreciation, additions,disposals,revaluations,transfers, impairment , depreciation for year and closing values of cost or valuation and depreciation and other items in Table 8

Difference of cost from market value of fixed assets

Disclose information on heritage assets as required by SORP

If any heritage assets have not been capitalised or valued this should be stated

The amount spent on heritage assets in the year should be disclosed

Where tangible fixed assets have been revalued disclose all the information required by SORP

The methods used in an impairment review to determine net realisable value and value in use should be disclosed , including the details required by para 277 of the SORP

Where investment asset values are not determined by reference to readily available market prices disclose name, qualifications

and position of valuer and how the value was carried out

If market cannot absorb sale, the trustees should summarise the position

All changes in value of investment assets and the opening and closing book values should be shown - see Table 9

Analyse investments by type of investment . There are six categories specified in the SORP each of which is subdivided into UK and non UK assets. It is unlikely that all 12 categories may arise in real life situations so the VT template provides for the most common situations. Manual amendment may be required in other cases

Details of the structure of the investment portfolio must be given indicating direct and indirect investment in listed securities, specific details of any investments over 5% of the portfolio and any restrictions that apply on the realisation of those assets.

Indicate the value of investments held in each type of fund if not already shown in the overall analysis of assets under para 75(a)

There are specific details required relating to subsidiaries

If material, programme related investments should show similar information to that required for investments

The programme related investments should be analysed between equity, l and other investments and indicate the programme the investments suppor

Unless alternative analysis is more appropriate, debtors should be analysed over the headings shown in para 314

Investments held as current assets should disclose the same details as fixed asset investments

Unless alternative analysis is more appropriate, creditors due within one year should be analysed over the headings shown in para318 Although not required by the SORP , it is usual to disclose VAT and PAYE & NI liabilities as a separate item although these can be combined. Good practice suggests that pension contributions unpaid should be separated out This will enable the figure to be reconciled to the pension disclosure note

Unless alternative analysis is more appropriate, creditors due after one year should be analysed over the headings shown in para318

Where the charity acts as intermediate agent or as a principal the requirements of paras 3188 and 319 should be reviewed

The treatment of commitments should be reviewed

All material commitments,provisions and charges accrued in the balance sh should be disclosed in the notes

Similar items not accrued relating to specific charitable projects should be disclosed where material

Both items above should include the particulars required by para 327 and by para 328

Designated funds relating to intentions to spend and not included as liabiliti should be separately disclosed

Material guarantees given and the conditions on which such guarantees may crystallise

Financial derivatives should be disclosed as required

Review the treatment of contingent assets and liabilities

Material contingent assets and liabilities must be disclosed

For the above disclose nature,the uncertainties that may affect the outcome ,and a prudent estimate of the financial effects, or reasons why such an estimate is not practicable

If assets secure a loan give particulars of the assets secured and the amount of the loan or liability and its proportion of the assets charged

The amounts , interest and repayment terms of any inter fund loans

Loans to trading subsidiaries,interest payable and repayment terms

Consolidated accounts should give the postion of the group as well as the p

Pension disclosures as required by FRS17 Work through the full provisions of paras 443 to 448

The assets and liabilities representing each type of fund

How each fund arose

Restrictions imposed on each fund

Sufficiency of resources in each fund

Liquidity of fund to meet immediate commitments

Explanation of any funds in deficit. There should also be a comment in the trustees' report. Designated funds should never be in deficit

Explanation of material movements in and transfer between funds together with amounts without netting off

Separate statements for each fund may be prepared

Table 2 shows how a funds statement may be preapred

F Cash flow statement Return to lead schedule

Click for full text o

Review the application of cash flow statements

Disclose the items suggested in para 355

G Consolidation of subsidiary undertakings Return to lead schedule

Click for full text o

Review SORP for treatment of consolidation

Comment on the activities and performance of the charity's subsidiaries

Accounting policies for methods of consolidation and inclusion/omission of subsidiaries

The notes to the consolidated accounts should give the position of the group as well as the parent

If subsidiaries are excluded or consolidated accounts are not prepared this should be explained in terms required by 404

Funds analysis of subsidiairies

Disclose retained funds in charity in a separate balance sheet fund This will need manual amendment of the template

The notes should state the aggregate amount of the total investment of the charity in its subsidiary showing

name,means of control o particulars of shareholding, how its activities relate to that of the charity, the aggregate amount of its assets, liabilities and funds, a summary of its turnover and expenditure and profit or loss or similar categories for a charity subsidiary)

Similar details to above should be given for minority holdings in the subsidiary

Segmental information when required by para 405

H Joint Ventures and Associate undertakings Return to lead schedule

Click for full text o

The SORP section on Associates and Joint ventures will need to be fully reviewed for the disclosure requirements

I Small Charity exemptions

Some of these exemptions are not available to limited companies. These by being shown in brown text.

None of these exemptions ( with the exception of adoption of the FRSSE) statutory audit. If a charity is subject to a voluntary non statutory audit, the not taken of the exemptions.

The SORP gives the following guidance on accounting for smaller ch The exemptions are detailed after these notes.

Appendix 5

Accounting for Smaller Charities

Particular accounting disclosures and the activity basis for the analysi Statement of Financial Activities may not be relevant information for t smaller charities. Similarly, the level of detail provided in the Trustees’ Ann on the structure, size and complexity of the charity and be proportionat report. This appendix lists the concessions at the date of publication of this

5.1.1 There are many relatively small charities with very simple str organisations. The vast majority of them will have cash and deposit accoun charitable companies (see 5.1.4) these charities will often find that c accounts meet both their needs and those of others who read their accoun summary of money received and money spent during the year and a list of 5.1.2 In England and Wales, charities whose accounts ‘form and content’ 1993, may choose between preparing accruals accounts and receipts and gross income is not over £100,000.

5 1 3 S tti h Ch iti h

t d d l ti

5.1.3 Scottish Charities whose accounts are prepared under regulatio (Miscellaneous Provisions) (Scotland) Act 1990, may prepare receipts and gross receipts are not over £25,000.

5.1.4 Small charitable companies must always prepare accruals accoun concessions.

5.1.5 As this SORP is applicable to accruals accounts, no specific recomm and payment accounts are provided within this SORP although as explaine encouraged to analyse their receipts and payments based on the activities The Charity Commission for England and Wales produces detailed guidanc accounts.

5.2.1 Any charity (whether or not it is a company) which is under the t described in the Companies Acts (see Appendix 4), can follow the Financ Entities (FRSSE) in preparing its financial accounts except where it conflict case this SORP should be followed. Charities which follow another SORP or in a format required by other bodies, such as HM Treasury, may find tha these purposes. The FRSSE is not relevant to charities preparing cas accounts.

5.2.2 In following the FRSSE, the accounts will meet most of the requireme However:

(a) The accounts should include a Statement of Financial Activities in plac statement of total recognised gains and losses.

(b) The principles of fund accounting should be adopted throughout the acc descriptions of the funds and notes showing the composition of the funds the balance sheet.

(c) All investments, including investment properties, must be shown at mar (d) Those foreign exchange gains and losses which may be allowed to be the FRSSE) must be shown in the gains and losses section of the Statement Financial Activities.

(e) Those exceptional items which are required to be shown after oper appropriate place on the Statement of Financial Activities.

(f) If a charity applying the FRSSE prepares consolidated accounts, it sho practices and disclosures required by accounting standards and the SORP in

The exemptions for smaller charities in the trustees report

Rather than specify the exemptions in the Trustees' Report, the requirements for charities not subject to a statutory audit. If a c non statutory audit, then it is suggested that advantage is not take

In this template at every point in the trustees' report where proforma trsutess report indicates the availablity of the exemption

App 5.4 Trustees’ Annual Reports of Smaller Charities in England a 5.4.1 In England and Wales, all registered charities are required to produce Regulations made under the Charities Act 1993 provide for charities tha audit (see Appendix 4 Audit thresholds) to produce an abbreviated Truste applies to all charities required to produce the report, and includes charit

5.4.2 The minimum content of the abbreviated Trustees’ Annual Report is su

bl C f h

l

f

ll h

Table 11. Contents of the Trustees’ Annual Report for a smaller cha (England and Wales – not subject to a statutory audit)

Details P Reference and administrative information

The name of the charity 41 Any other name by which a charity makes itself known 4 The charity registration number (or Scottish Charity Number) (if any) The company registration number (if applicable) The address of the principal office of the charity; 4 The names of the charity’s trustees or trustee(s) for the charity on the date the report was approved.(where any charity trustee is a body corporate, the names of the directors of that body corporate should also be provided) 41 The names of any other person who served as a charity trustee in the financial year 41( Governance and Management The nature of the governing document and how the charity is (or its trustees are) constituted 44 The methods adopted for the recruitment and appointment of new trustees, 44(b Objectives and Activities A summary of the objects of the charity as set out in its governing document. 47(a) Summary of the main activities undertaken in relation to those objects. 47(e) Achievements and Performance A summary of the main achievements of the charity during the year Financial Review Policy on reserves 55(a) Details of any fund materially in deficit and the circumstances giving rise to the deficit and steps being taken to eliminate the deficit. 55(b)

Funds held as Custodian Trustee

A description of the assets which they hold in this capacity. The name and objects of the charity (or charities) on whose behalf the asse are held and how this activity falls within their own objects.

Details of the arrangements for safe custody and segregation of such asset from the charity’s own assets.

The exemptions for smaller charities in the financial statements

By contrast with the trustees' report exemptions , where requirements, with regards to the main body of the accounts exemptions.

Where these may apply they are highlighted in green at the approp

App 5.3 Accounting statements of Smaller Charities

5.3.1 The SORP provides a number of concessions for smaller charities tha audit (see Appendix 4 Audit thresholds). The concessions cover the Sta notes to the accounts:

(a) In relation to the Statement of Financial Activities, smaller charities do n expended or incoming resources by activity categories within the Stateme instead choose resource classifications to suit their circumstances.

(b) Where a small charity adopts an alternative approach to analysis Activities certain note disclosures may no longer be necessary, for exampl the constituent costs of an activity category or where relevant informat Statement of Financial Activities . The disclosure paragraphs affected by thi

Details Paragraph Para Analysis of activities that have generated funds 122 Analysis of incoming resources from charitable activities 146 Support Costs analysis 166 - 167 Apportionment of Costs 175 - 176 Breakdown of costs of generating voluntary income 183 - 1 Analysis of fundraising trading costs 186 Analysis of charitable activity costs 191 - 194 Analysis of grantmaking or associated support costs by activity 202, 2 Analysis of governance costs 212 Smaller charities are not required to give details of staff emoluments in bands 236 5.3.2 These concessions are intended to reduce the detail of reportin charities, though any such charity wishing to follow the full rec encouraged to do so.

utiny 0 From 1 April 2020 To 31 March 2021 verified 311010

England & Wales ONLY - Not Scotland

Disclosure checklist and cross reference to the SORP verified 311010 Check the Links pag correct procedure Go to main disclosure checklist for a wealth of exte Links to external reso

charities. Incorporated (ie nts Accounts

ross the figures up to one year.

rants and other income which is not eck the definition in the SORP and the

ceeds £500,000 or total gross assets nd & Wales below ). All limited company

s exceed £3.26 million, if the gross

by a professionally qualified examiner,

Wales

an £ 25,000

group. If so different income levels will udit of the charity and/ or the group is on may be required In simple terms if

Links to other parts of the accou Tab to the relevant Excel worksheets in this Links Links to external resources page

on may be required. In simple terms, if then group accounts must be prepared

crutiny under the above headings,

ply. Look at the detailed provisions to uired. These provisions can be complex

nal scrutiny is permissible.

xemptions available to none statutory ghlighted in the templates, but in many

TB	Trial Balance entry
Data	Data sheet
Cover	Front page of accounts
Contents	Contents page of acs
Director	Trustees Report
Audit	Independent Examiner's Report
PL	Statement of Financial Activities
BS	Balance Sheet
CF	Cash Flow Statement
Notes	Notes to the accounts
DetailPL2	Detailed schedule to the SOFA
Appendix	Activity analyses per the SORP
Library	Standard texts and explanations
Disclosur	Disclosure checklist
History	Details of amendments to templa
CFworking Internal workings for cash fow
Workings	Internal workings for acs
CC31	Independent Examination directi
Or for charities in Scotland-see OSCR guid

n, then a review of Section I

8) and cross reference to the text of the SORP

viewed paras 419 to 429

ities

For Scotland - see also the principles set out in Schedule 1 of The Charities Accounts (Scotland) Regulations 2006 For England & Wales see also the principles set out in s8 The Charities (Accounts and Reports) Regulations 2008

e

PN11 The audit of charities in the UK

evant is to load up the pdf file from the e can be loaded from the attached link

e that should only that there is no conflict with VT. h the full text of the SORP to hand for reference before completing the full checklist (see section I) t the disclosure is actually in the accounts fied

ent to the template will be required

over the entire requirements of the SORP

Reviewed by date ns available to some small charities should be made to the SORP SORP ApplicatioY/N/ or N/a paragraph VT = provided for in VT template

of 2005 SORP

In the application column 'AA' indicates disclosure is ma Where 'AA' is not shown ,disclosure is only required whe

PN11 The audit of charities in the UK

of 2005 SORP

35/40	AA	VT
41(a)	AA	VT
41(a)	AA	VT

44(a)	AA	VT
41(b)	AA	VT
41(b)		VT
41(c)	AA	VT
41(d)	AA	VT
& 42
41(e)	AA	VT
& 42
41(f)	AA	VT
Cos Act requirement		VT
41(g)	AA	VT
44(b)	AA	VT
44(b)	AA	VT
44(c)	AA	VT
44(d)	AA	VT
44(e)		VT
44(f)	AA	VT
44(f)	AA	VT
45	AA	VT
47(a)	AA	VT
47(b)	AA	VT
47(c)	AA	VT

47(d)	AA	VT
47(e)	AA	VT
& 48
49		VT
50		VT
51	AA	VT
53	AA	VT
53(a)	AA	VT
53(b)	AA	VT
53(c)	AA	VT
53(d)	AA	VT
55	AA	VT
55(a)	AA	VT
55(b)
57	AA	VT
59(a)		VT
59(b)		VT
59(c)		VT
398		VT

	Charities Act 2006	AA	VT	For accounting periods commencing on
	25	AA
	25	AA	VT
	Companies Act	AA	VT
	requirement
	31	AA	VT
	SORP	ApplicatioY/N/ or N/a
	paragraph		VT =	provided for in
			VT template
of	2005 SORP
	60 to 64	AA	VT
	65 to 72	AA	VT
	31	AA	VT
	90
	91		VT
	73	AA	VT
	74 to 76	AA	VT
	77 to 81	AA	VT
	117	AA	VT

117 AA

VT

	SORP	ApplicatioY/N/ or N/a	ApplicatioY/N/ or N/a
	paragraph		VT = provided for in
			VT template
of	2005 SORP
	82 to 93	AA	VT
	82 to 93	AA	VT
	94 to 113	AA	VT
	114	AA	VT
	115	AA	VT
	118	AA	VT
	118	AA	VT
	31	AA	VT
	91	AA	VT
	122	AA	VT
	various sections	AA
	of SORP		VT
	128		VT
	128	AA	VT
	129 to 130	AA	VT
	131 & 132	AA	VT
	132	AA	VT
	136	AA	VT

137 to 139	AA	VT
142		VT
146	AA	VT
218		VT
various sections	AA	VT
of SORP
166 & 167	AA	VT
& Table 4
73 & 111 & 169(c)		VT
258 to 261
218(b)
175 & 176	AA	VT
177	AA	VT
183 & 184	AA	VT
186	AA	VT
191 to 194	AA	VT
& Table 5
193		VT
201 to 209	AA	VT
& Table 6
212	AA	VT

216	AA	VT
217 to 220	AA	VT
218(a)		VT
218(b)		VT
		by manual
		amendment
218(c)		VT
218(b)		VT
217 and 218		VT
218(b)		VT
219		VT
SORP	ApplicatioY/N/ or N/a
paragraph		VT = provided for in
		VT template
of 2005 SORP
otes. If the template	skeleton
ments, provided the	worked
checklists have been	followed
246	AA	VT
31	AA	VT
252	AA	VT
253 to 278

otes. If the template skeleton ments, provided the worked checklists have been followed

279 to 294		VT
295 to 307		VT
308 to 312		VT
313 to 316	AA	VT
317 to 320	AA	VT
Table 7	AA	VT
317 to 320	AA	VT
317 to 320	AA	VT
315	AA

eet and a manual adjustment is necessary)

321 to 329	AA	VT
Table 7	AA	VT
91	AA	VT
330 to 332		VT
334		VT
335		VT
Accounting Standards	AA	VT
255(b)		VT
255(c)
Appendix 2.5
225(b) & 129(b)		VT
255(c)
247	AA	VT
SORP	ApplicatioY/N/ or N/a

	paragraph		VT = provided for in
			VT template
of	2005 SORP
	31	AA	VT
	356		VT
	358	AA	VT
	359	AA	VT
	360		VT
	362	AA	VT
	363	AA	VT
	363	AA	VT
	363	AA	VT
	364		VT
	365		VT
	Appendix 2.5		VT
	275		VT
	299		VT
	294(c)		VT
	366		VT

368 & 369	AA	VT
370(a)		VT
370(b)		VT
370(c)		VT
370(d)		VT
370(e)		VT
131 and 136		VT
244		VT
122	AA	VT
114	AA	VT
115		VT
128		VT
129 to 136		VT
118	AA	VT
122
83		VT
92		VT
368		VT

324		VT
203		VT
195 to 200		VT
195 to 200		VT
195 to 200		VT
195 to 200		VT
195 to 200
89		VT
166 and 167	AA	VT
221 to 233
226		VT
227		VT
230(b)	AA	VT
230(b)	AA	VT
230(c)	AA	VT
221 to 233		VT
230(d)	AA	VT

231 & 232	AA	VT
233	AA	VT
		VT
234 TO 238	AA
234		VT
235	AA	VT
236	AA	VT
237	AA	VT
238	AA	VT
239	AA	VT
		VT
240 to 241
240		VT

	244		VT
	314	AA	VT
	315
ration
	273		VT
274	and Table 8	AA	VT
	276		VT
	294
	294		VT
	294		VT
	277		VT
	278		VT
	300		VT

rt

301	VT
302 & Table 9	VT
303 & 304	VT
306	VT
307	VT
401	VT
311	VT
312
314	VT
316	VT
318	VT
318	VT
319 & 320	VT

321 to 325
326		VT
326		VT
327 & 328		VT
		VT
329		VT
336		VT
339		VT
340 to 344		VT
345 to 348		VT
346		VT
349(a)		VT
350		VT
350		VT
400		VT
443 to 448		VT
75(a)	AA	VT
75(b)	AA	VT
75(b)	AA	VT
75(b)	AA	VT
75(b)	AA	VT

75(c) VT 75(d) AA VT 76 AA Table 2 VT SORP ApplicatioY/N/ or N/a paragraph VT = provided for in VT template of 2005 SORP 351 to 354 355 SORP ApplicatioY/N/ or N/a paragraph VT = provided for in VT template of 2005 SORP 381 to 406 VT 398 VT 399 VT 400 VT 404 VT 406 401 VT

402 VT 405 VT SORP ApplicatioY/N/ or N/a paragraph VT = provided for in VT template

of 2005 SORP

407 to 408

VT

are indicated in the following notes

are available to entities subject to en it is suggested that advantage is

harities

s of income and costs within the he users of accounts prepared by nual Report is likely to be dependent te to the needs of the users of the SORP.

ructures and no control of other nts but few other assets. Apart from cash-based receipts and payments nts. This form of accounts contains a assets at the end of the year.

are governed by the Charities Act d payments accounts provided their

d d th L R f

ons made under the Law Reform d payments accounts provided their

nts and are not covered by these

mendations on cash-based receipts ed in paragraph 6 such charities are undertaken. ce on the preparation of cash based

thresholds for small companies, as cial Reporting Standard for Smaller ts with this Charities SORP, in which have to prepare additional accounts at they cannot follow the FRSSE for sh-based (receipts and payments)

nts of the SORP for smaller entities.

ce of a profit and loss account and

counts. This will include appropriate s and the differentiation of funds on

rket value.

taken to reserves (as prescribed in t of

rating profit must be shown in an

ould apply the relevant accounting n relation to consolidated accounts.

e SORP sets out the minimum charity is subject to a voluntary en of the exemptions.

an exemption is available the n in green text

nd Wales

a Trustees’ Annual Report.

at are not subject to a statutory ees’ Annual Report. This concession table companies.

ummarised in table 11 below.

i

arity

Paragraph

(a) 41(a) 41(b) 41(b) 41(c)

1(d)

(e)

4(a)

b)

(54)

ts

ets

the SORP sets out minimum s, the SORP sets out specific

priate point in the templates

at are not subject to a statutory atement of Financial Activities and

not need to analyse either resources ent of Financial Activities. They may

within the Statement of Financial e, where these disclosures relate to tion is provided on the face of the is are:

References

184

4 03(b)

g requirements placed on smaller commendations of the SORP is

ge ernal resources urces page

s template

unts production file

Indatory for all charltles n relevant

n or after Aprll 1st 2008

Incorporated charity - Exemp

Client Code

File Section

Schedule prepared by

Schedule Reference

Incorporated charity - Exempt from This template is for charities exemp are for information only For Scottish Charities This checklist only applies to limi

Several of the steps in this checklist

This process is sometimes known colloq Accounting periods commencing before CC31 and CC32- The Carrying Out of This process applies to incorporated charitie the current year or either of the two previou Copyright

Crown copyright material is reproduced wit Accounting periods commencing on or a and the Queen's Printer or Scotland. License Increase the figures above from £250,000 to compilation report will be abolished and repl for their own use but may not reproduce the

Asset test Charity Commissioners' Direction For accounting periods commencing after 27

At all steps in the accounts production All references to 'sections' are to sectio Text in red is by way of explanation and The preparation of an Accountant's Report c Documents CC31 and CC32 appliy to indepeguidelines.

Disclosure exemptions for entities not s Click on the following links to the Comm

Certain disclosures are compulsory for statut in the templates, but in many areas the SOR The narrative explanation to the direc how is an examiner selected and wh detailed knowledge of this section of C

• Link to the Charity commission documents Narrative explanation to directions

• Examination and accounting threshold

• Documentation

• Understanding the charity

4.Accounting records

1. Comparison with accounting records

For further resources go to the 'Links' worksh

N a a G 1 ( o ( c s T

Direction

Examination and accounting thresholds

Direction Examination and accounting thresholds

1. The examiner shall carry out such specific procedures as are considered necessary to provide a reasonable basis on which to conclude:

(i) that an examination is required under section 43(3) of the Charities Act 1993, and that section 43(2) (audit) of the Charities Act 1993 does not apply to the charity; and

(ii) where the charity is a small company charity, that it is exempt from audit in accordance with section 477 of the Companies Act 2006; and

(iii) where accounts are prepared on a receipts and payments basis under section 42(3) of the Charities Act 1993, that the charity trustees may properly elect to prepare accounts under this sub-section.

t a f £ a e

This template is part of a much mo purchased from Sorpaid which enables independent examination to the highes

Contact Sorpaid for details on www.sor

Direction

Documentation

Direction Documentation

1. The examiner shall record the e amination procedures

the examination procedures carried out and any matters which are important to support conclusions reached or statement provided in the examiner’s report.

This template is part of a much mo purchased from Sorpaid which enables independent examination to the highes

Contact Sorpaid for details on www.sor

Direction

Understanding the charity

Direction Understanding the charity

1. The examiner shall obtain an understanding of the charity’s constitution, organisation, accounting systems, activities and nature of its assets, liabilities, incoming resources and application of resources in order to plan the specific examination procedures appropriate to the circumstances of the charity.

This template is part of a much mo purchased from Sorpaid which enables independent examination to the highes

Contact Sorpaid for details on www.sor

Direction

Accounting records

Direction Accounting records

1. The examiner shall review the accounting records maintained in accordance with section 41 of the Charities Act 1993, or, in the case of a charity that is a company, the accounting records maintained in accordance with section 386 of the Companies Act 2006, in order to provide a reasonable basis for the identification of any material failure to maintain such records.

This template is part of a much mo purchased from Sorpaid which enables independent examination to the highes

Contact Sorpaid for details on www.sor

Direction

Comparison with accounting records

Direction Comparison with accounting records

1. The examiner shall compare the accounts of the charity with the charity’s accounting records in sufficient detail to provide a reasonable basis on which to decide whether the accounts are in accordance with such accounting records.

This template is part of a much mo purchased from Sorpaid which enables independent examination to the highes

Contact Sorpaid for details on www.sor

Direction

Analytical procedures

Direction

Analytical procedures

1. The examiner shall carry out analytical procedures to identify unusual items or disclosures in the accounts. Where concerns arise from these procedures, the examiner must seek explanation from the charity trustees. If, after following such procedures, the examiner has reason to believe that in any respect the accounts may be materially misstated then additional procedures, including verification of the asset, liability, incoming resource or application, must be carried out.

This template is part of a much mo purchased from Sorpaid which enables independent examination to the highes

Contact Sorpaid for details on www.sor

Direction

Form and content of accounts

G Direction 7 Form and content of i accounts p 7. The examiner shall carry out i such procedures as the i examiner considers necessary a to provide a reasonable basis r on which to decide whether or b not the accounts prepared P under section 42(1) of the a Charities Act 1993 comply with r the form and content r requirements of the 2008 Regulations including their 7 preparation in accordance with t the methods and principles set r out in the Statement of e Recommended Practice: Accounting and Reporting by 7 Charities (the SORP). Or in the b case of a charity that is a a company, whether or not the r accounts are prepared in S accordance with sections 396 of n the Companies Act 2006, and e are prepared in accordance with c the methods and principles of a the SORP. 7 a c 3 c t t r p 7 t R i a a e w

This template is part of a much mo purchased from Sorpaid which enables independent examination to the highes

Contact Sorpaid for details on www.sor

Direction

Accounting policies, estimates and judgements

Direction Accounting estimates and judgments

policies,

1. When accounts are prepared under section 42(1) of the Charities Act 1993, or in the case of a charity which is a company, prepared under section 396 of the Companies Act 2006, the examiner shall review the accounting policies adopted and consider their

p consistency with the Statement of Recommended Practice: Accounting and Reporting by Charities (the SORP) and their appropriateness to the activities of the charity. The examiner must also consider and review any significant estimate or judgment that has been made in preparing the accounts.

This template is part of a much mo purchased from Sorpaid which enables independent examination to the highes

Contact Sorpaid for details on www.sor

Direction

Trustees' Annual Report

Direction

Trustees’ Annual Report

1. When accounts are prepared under section 42(1) of the Charities Act 1993, or in the case of a charity which is a company, prepared under section 396 of the Companies Act 2006, the examiner shall compare the accounts to any financial references in the charity Trustees’ Annual Report (if any); identifying any major inconsistencies and consider the significance such matters will have on a proper and accurate understanding of the charity’s accounts

G 9 u t n o

9 c c R t R R s

9 b m t s a i l w 9 s a t

This template is part of a much mo purchased from Sorpaid which enables independent examination to the highes

Contact Sorpaid for details on www.sor

Direction

Examiner's Report

Direction

Examiner’s report

1. The examiner shall review and assess all conclusions drawn from the evidence obtained from the examination and consider the implications on the report to be made under Regulation 31 of the 2008 Regulations. If the examiner has cause to make a positive statement on any matter arising from the provisions of Regulation 31(h) or 31(i), or to make a statement on any matter arising from the provisions of Regulation 31(j), then the examiner must ensure so far as practicable that the report gives a clear explanation of the matter and of its financial effects on the accounts presented.

This template is part of a much mo purchased from Sorpaid which enables independent examination to the highes

Contact Sorpaid for details on www.sor

Direction

Statutory Duty to report to the Charity Commission

Statutory duty to report to the Charity Commission

1. Sections 44 and 68A of the Charities Act 1993 place a duty upon the independent examiners of both the noncompany and company charities to make a report to the Charity Commission, where in the course of their examination, they identify a matter, which relates to the activities or affairs of the charity or of any connected institution or body, and which the examiner has reasonable cause to believe is likely to be of material significance for the purposes of the exercise by the Commission of its functions under section 8 or 18 of the Charities Act 1993.

This template is part of a much mo purchased from Sorpaid which enables independent examination to the highes

Contact Sorpaid for details on www.sor

Neither the 1993 nor the 2006 Acts define g Appendix 1 - Calculation of Gross Incom powers to collect information through the An scrutiny requirements set by the Acts, must annually in preparation for the Annual Retur

APPENDIX 1 Gross income is the total recorded income o Calculation of gross income resources received as capital (endowment) f Section 97 of the 1993 Act states that a ref income from all sources including special tru You should calculate income before deductio by the Commission when setting the Annu under section 48 of the 1993 Act. This a The calculation of income should include: preparation for the Annual Return process.

• donations (including covenants, gift aid The definition of gross income (Annual subscriptions (see note 1 below);

Where accounts are prepared on the accrual • gross proceeds from the sale of goods or s

the total incoming resources as shown in th • gross proceeds from fund-raising and othe SORP) for all funds but excluding the receipt including any amount transferred to incom • investment income (including interest, div available for expenditure. (Note that the SORP excludes from total in • other income, which will include: investments which do not form part of ‘gross

• the amount of any unapplied total return Where accounts are prepared on the receip during the year should be included. (see not recorded in the statement from all sources e

• when trustees decide to spend expendab This is because capital receipts are not inc below).

The calculation should exclude the following

The 2005 Regulations (Regulation 8) • receipt of a loan by the charity; Appendix 2 - Flowchart for eligibility for • loan repayments to the charity; Independent examination of charity acc • proceeds of sale of investments and fixed APPENDIX 2 furthering the charity’s objects (“functiona 8. • gains or profits on disposal of investments An independent examiner who has carrie of the 1993 Act shall make a report to the ch• unrealised gains or profits on investments

• unrealised gains or profits on investmentsp Flowchart: Eligibility requirement a) states his name and address and the nam • gains arising from the revaluation of funct b) is signed by him and specifies any relev member;

c) is dated and specifies the financial yeaNote 1: Any gifts or donations (including an prepared; be, retained for investment by the charity d) specifies that it is a report in respect of amay include assets for investment or functio accordance with any directions given by t for a particular charitable purpose. applicable;

e) states whether or not any matter has co Note 2: Any allocation of unapplied total ret which gives him reasonable cause to believeorder from the Charity Commission to operat (i) accounting records have not been kept Act; or

• (ii) the accounts do not accord with those re

(iii) in the case of an examination of accou

the 1993 Act, the statement of accounts doe

case may be, 4 or 5 above, other than any re f) states whether or not any matter has com which, in his opinion, attention should be d accounts to be reached; and

g) contains a statement as to any of the fo course of the examination, namely, that

• (i) there has been any material expenditure the charity; or

1 The reference to Regulation 3 is to the form investment fund, or a special case charity.

2 The reference to Regulation 4 relates to th to Regulation 5 form and contents of statem

(ii) any information or explanation to whic him; or

(iii) in the case of an examination of accou the 1993 Act, any information contained in with any report of the charity trustees prepa in question.

Examples of examiner’s reports

Example 1: Examiner’s unqualified repo Independent Examiner’s Report to the Truste I report on the accounts of the Trust for the y Respective responsibilities of trustees and ex The charity’s trustees are responsible for th an audit is not required for this year (under independent examination is needed. It is my responsibility to:

• examine the accounts (under section 43(3

• to follow the procedures laid down in the 43(7)(b) of the 1993 Act); and

• to state whether particular matters have c

Basis of independent examiner’s report

My examination was carried out in accordan examination includes a review of the accou presented with those records. It also include and seeking explanations from you as truste provide all the evidence that would be requ

p q

on the view given by the accounts. Independent examiner’s statement Appendix 3 - Charities Based in England In connection with my examination, no matt

(1) which gives me reasonable cause to belie APPENDIX 3 • to keep accounting records in accordance Charities based in England and Wales a

• to prepare accounts which accord with thSince the introduction of the Charities and of the 1993 Act; England and Wales which also operate in Sc Charity Regulator (OSCR). Examiners of ch have not been met; or should be familiar with the guidance on the (2) to which, in my opinion, attention should

to be reached. Examiners should also note that where a m Name: identified the report made to the charity reg Relevant professional qualification or body: will determine jointly which regulator takes t Address:

Date: OSCR does not insist on separate Scottish Accounts prepared under the SORP will be a Example 2: Examiner’s qualified report Trustees’ Annual Report addresses activities Independent examiner’s report to the truste

I report on the accounts of the Trust for the y For cross-border charities that prepare recei Respective responsibilities of trustees and ex that need to be met. The main difference is The charity’s trustees are responsible for thof Assets and Liabilities’ and certain notes to an audit is not required for this year (under requirements is available on OSCR’s website independent examination is needed.

It is my responsibility to: The Commission will accept receipts and pa • examine the accounts (under section 43(3 and the Trustees’ Annual Report. The ‘State (including a Statement of Assets and Liab • to follow the procedures laid down in the needed because the Scottish requirements 43(7)(b) of the 1993 Act); and preparing receipts and payments accounts.

• to state whether particular matters have c You can download a ‘Receipts and Payments

Basis of examiner’s statement Trustees and examiners acting for charities My examination was carried out in accordan view OSCR’s website. In particular trustees examination includes a review of the accou charity law and note that in all cases where presented with those records. It also include the examiner must be undertaken by a ‘qu and seeking explanations from you as truste (Scotland) Regulations 2006 . In addition ac provide all the evidence that would be requ within 9 months of the end of an accounting on the view given by the accounts.

Examiners should be aware that in Scotland Independent examiner’s qualified statement making their report and state in their repo The Trust held shares listed on a recognised Annual Report prepared by the charity truste the balance sheet date of £x. These assets

their value being understated by £z in the b The examiner may prepare a combined exa in this respect the accounts do not comply w Example reports provided in this appendix fo In connection with my examination, no otheand Wales and Scotland. my attention:

(1) which gives me reasonable cause to belie EXAMPLE 3.1: EXAMINER’S UNQUAL • to keep accounting records in accordance REGISTERED WITH THE OFFICE OF T ACCOUNTS) • to prepare accounts which accord with th Independent examiner’s report to the t of the 1993 Act I report on the accounts of the Trust for the y

have not been met; or Respective responsibilities of trustees and ex (2) to which, in my opinion, attention should The charity’s trustees are responsible for th to be reached. an audit is not required for this year unde Name: Regulation 10(1)(a) to (c) of the Charities Ac Relevant professional qualification or body: an independent examination is needed T

an independent examination is needed. T Address: undertake the examination by being a qualifi Date:

It is my responsibility to:

Example 3: Examiner’s qualified report

Independent examiner’s report to the truste examine the accounts under section 43 of th I report on the accounts of the Trust for the y Trustee Investment (Scotland) Act 2005 (the Respective responsibilities of trustees and ex to follow the procedures laid down in the The charity’s trustees are responsible for th 43(7)(b) of the 1993 Act; and an audit is not required for this year (under to state whether particular matters have com independent examination is needed. Basis of independent examiner’s report It is my responsibility to: My examination was carried out in accordan • examine the accounts (under section 43(3 is in accordance with Regulation 11 of the includes a review of the accounting record • to follow the procedures laid down in the with those records. It also includes consid 43(7)(b) of the 1993 Act); and seeking explanations from you as trustees provide all the evidence that would be requ • to state whether particular matters have c the accounts present a ‘true and fair view’ below.

Basis of examiner’s statement Independent examiner’s statement My examination was carried out in accordan In connection with my examination, no matt examination includes a review of the accou

presented with those records. It also include (1) which gives me reasonable cause to belie and seeking explanations from you as truste

provide all the evidence that would be requ to keep accounting records in accordance w on the view given by the accounts. and Regulation 4 of the 2006 Accounts Regu Independent examiner’s qualified statement to prepare accounts which accord with the a In connection with my examination, no mat the 1993 Act and section 44(1)(b) of the 200 believe that, in any material respect, the req have not been met; or • to keep accounting records in accordance

(2) to which, in my opinion, attention should • to prepare accounts which accord wto be reached. requirements of the 1993 Act

Name: have not been met. Relevant professional qualification or body: The accounts disclose the receipt of a restrAddress: exists that the unexpected balance of £z, wDate: repaid to the donor.

No other matter has come to my attention in EXAMPLE 3.2: UNQUALIFIED REPORT (F should be drawn in order to enable a proper PREPARING RECEIPTS AND PAYMENTS A Name: Independent examiner’s report to the t Relevant professional qualification or body: I report on the accounts of the Trust for the y Address:

Date: Respective responsibilities of trustees and ex The charity’s trustees are responsible for th an audit is not required for this year unde Regulation 10(1)(d) of The Charities Account that an independent examination is needed.

It is my responsibility to:

examine the accounts under section 43 of Trustee Investment (Scotland) Act 2005 (the to follow the procedures laid down in the 43(7)(b) of the 1993 Act; and

to state whether particular matters have com Basis of independent examiner’s report My examination was carried out in accordan is in accordance with Regulation 11 of the

is in accordance with Regulation 11 of the includes a review of the accounting record with those records. It also includes consid seeking explanations from you as trustees provide all the evidence that would be requ the accounts present a ‘true and fair view’ below.

Independent examiner’s statement In connection with my examination, no matt

(1) which gives me reasonable cause to belie

to keep accounting records in accordance w and Regulation 4 of the 2006 Accounts Regu to prepare accounts which accord with the a the 1993 Act and section 44(1)(b) of the 200 have not been met; or

(2) to which, in my opinion, attention should to be reached.

Name:

Relevant professional qualification or body: Address: Date:

EXAMPLE 3.3: EXAMINER’S UNQUALIFI WITH OSCR) Independent examiner’s report to the t I report on the accounts of the company for

Respective responsibilities of trustees and ex The trustees (who are also the directors of the preparation of the accounts. The truste 43(2) of the Charities Act 1993 (the 1993 A (Scotland) Regulations 2006 (the 2006 Accou

Having satisfied myself that the charity independent examination, it is my responsib

examine the accounts under section 43 of Investment (Scotland) Act 2005 (the 2005 Ac to follow the procedures laid down in the 43(7)(b) of the 1993 Act; and

to state whether particular matters have com Basis of independent examiner’s report My examination was carried out in accordan is in accordance with Regulation 11 of the includes a review of the accounting record with those records. It also includes consid seeking explanations from you as trustees provide all the evidence that would be requ the accounts present a ‘true and fair view’ below.

Independent examiner’s statement In connection with my examination, no matt

(1) which gives me reasonable cause to belie

(1) which gives me reasonable cause to belie

to keep accounting records in accordance w the 2005 Act; and

to prepare accounts which accord with the a Companies Act 2006 , section 44(1)(b) of the which are consistent with the methods and and Reporting by Charities have not been met; or

(2) to which, in my opinion, attention should to be reached.

Name:

Relevant professional qualification or body: Address: Date:

Appendix 4 Example Examiner's Reports

APPENDIX 4 Example examiner’s reports

These example reports are provided complies with the 2008 Regulations. Th may come across in their work.

An ‘unqualified report’ means that at the e has come to their attention that leads them report were not met. However where there Regulations reported by the examiner then t

Please note the new requirement, where th confirm their qualification(s) that permit the

In exceptional circumstances, the Commis instead of an audit. The 2008 Regulations re place of an audit and the date of the Commi

By far the majority of charities are trusts or incorporated under the Companies Acts. Tho charities’ or ‘charitable companies’ for th examiner’s report is different to that of t guidance. If in doubt check the Governing D and articles of association and will have bee

The example examiner’s reports are:

4.1 Unqualified report for a non-company payments accounts).

4.2 Unqualified report for a charitable compa

4.3 Qualified report where a non-company separately identify restricted funds.

4.4 Qualified report where a non-company properly maintain accounting records.

4.5 Qualified report where a non-company c funds were properly spent. (A statutory du example report in Appendix 5 .)

4.6 Qualified report where a charitable com SORP.

EXAMPLE 4.1: EXAMINER’S UNQUALIFIE Independent examiner’s report to the t I report on the accounts of the Trust for the y

Respective responsibilities of trustees and ex The charity’s trustees are responsible for th an audit is not required for this year under independent examination is needed.

It is my responsibility to:

examine the accounts under section 43 of th to follow the procedures laid down in the 43(7)(b) of the 1993 Act; and

to state whether particular matters have com Basis of independent examiner’s report My examination was carried out in accordan examination includes a review of the accou presented with those records. It also include and seeking explanations from you as truste provide all the evidence that would be requ the accounts present a ‘true and fair view’ below.

Independent examiner’s statement In connection with my examination, no matt

(1) which gives me reasonable cause to belie

to keep accounting records in accordance wi to prepare accounts which accord with the a the 1993 Act

the 1993 Act have not been met; or

(2) to which, in my opinion, attention should to be reached.

Name:

Relevant professional qualification or body: Address: Date:

EXAMPLE 4.2: EXAMINER’S UNQUALIFIE Independent examiner’s report to the t I report on the accounts of the company for

Respective responsibilities of trustees and ex

The trustees (who are also the directors of the preparation of the accounts. The truste 43(2) of the Charities Act 1993 (the 1993 A gross income exceeded £250,000 and I am of (named body).

Having satisfied myself that the charity independent examination, it is my responsib

examine the accounts under section 43 of th to follow the procedures laid down in the 43(7)(b) of the 1993 Act; and

to state whether particular matters have com Basis of independent examiner’s report My examination was carried out in accordan examination includes a review of the accou presented with those records. It also include and seeking explanations from you as truste provide all the evidence that would be requ the accounts present a ‘true and fair view’ below.

Independent examiner’s statement In connection with my examination, no matt

(1) which gives me reasonable cause to belie

to keep accounting records in accordance wi to prepare accounts which accord with the section 396 of the Companies Act 2006 and Practice: Accounting and Reporting by Charit have not been met; or

(2) to which, in my opinion, attention should to be reached.

Name: Relevant professional qualification or body: Address: Date:

EXAMPLE 4.3: EXAMINER’S QUALIFIE RECEIPTS AND PAYMENTS ACCOUNTS (N Independent examiner’s report to the t I report on the accounts of the Trust for the y

Respective responsibilities of trustees and ex The charity’s trustees are responsible for th an audit is not required for this year (under independent examination is needed.

It is my responsibility to:

examine the accounts under section 43 of th to follow the procedures laid down in the 43(7)(b) of the 1993 Act; and to state whether particular matters have com Basis of examiner’s statement My examination was carried out in accordan examination includes a review of the accou presented with those records. It also include and seeking explanations from you as truste provide all the evidence that would be requ the accounts present a ‘true and fair view’ below.

Independent examiner’s qualified statement The trustees have prepared receipts and pa within those accounts. At the end of one ch but the money was banked together with received. The accounts show the expendit amounted to £2,837. The trustees pointed o weekly banking of £1,275 but they have now and banked separately.

In connection with my examination, no othe my attention:

(1) which gives me reasonable cause to belie

to keep accounting records in accordance wi to prepare accounts which accord with the a the 1993 Act have not been met; or

(2) to which, in my opinion, attention should to be reached. Name: Relevant professional qualification or body: Address: Date:

EXAMPLE 4.4: EXAMINER’S QUALIFIED ACCOUNTS PROPERLY (NON-COMPANY C Independent examiner’s report to the t I report on the accounts of the Trust for the y

Respective responsibilities of trustees and ex The charity’s trustees are responsible for th an audit is not required for this year under

an audit is not required for this year under independent examination is needed.

It is my responsibility to:

• examine the accounts under section 43 of

• to follow the procedures laid down in the 43(7)(b) of the 1993 Act; and

• to state whether particular matters have c

Basis of examiner’s statement

My examination was carried out in accordan examination includes a review of the accou presented with those records. It also include and seeking explanations from you as truste provide all the evidence that would be requ the accounts present a ‘true and fair view’ below.

Independent examiner’s qualified statement The trustees have prepared receipts and pay £36,873 however no records have been ke made and cash balances were retained unb award of £10,000. The majority of the expe withdrawals using a charity debit card but f play equipment, there are no records of vo with receipts for only £41,732 leaving £44,2

In connection with my examination, no othe my attention, apart from accounting records of the 1993 Act:

(1) which gives me reasonable cause to b accounts which accord with the accounting Act have not been met; or

(2) to which, in my opinion, attention should to be reached. Name: Relevant professional qualification or body: Address: Date:

EXAMPLE 4.5: EXAMINER’S QUALIFIED CHARITY) Independent examiner’s report to the t I report on the accounts of the Trust for the y

Respective responsibilities of trustees and ex The charity’s trustees are responsible for th an audit is not required for this year under independent examination is needed.

It is my responsibility to:

examine the accounts under section 43 of th to follow the procedures laid down in the 43(7)(b) of the 1993 Act; and

to state whether particular matters have com Basis of examiner’s statement My examination was carried out in accordan examination includes a review of the accou presented with those records. It also include and seeking explanations from you as truste provide all the evidence that would be requ the accounts present a ‘true and fair view’ below.

Independent examiner’s qualified statement In connection with my examination, no mat believe that, in any material respect, the req

to keep accounting records in accordance wi to prepare accounts which accord with the a of the 1993 Act have not been met.

The accounts disclose the payment of a mat in country X. The trustees explained that a gave the funds to a representative of XXX how the funds were used and were not able from XXX partner organisation. A concern e evidence available to inform the donor of its

No other matter has come to my attention in should be drawn in order to enable a proper

Name:

Relevant professional qualification or body: Address: Date:

EXAMPLE 4.6: EXAMINER’S QUALIFIED (COMPANY CHARITY) Independent examiner’s report to the t I report on the accounts of the company for

Respective responsibilities of trustees and ex The trustees (who are also the directors of

The trustees (who are also the directors of the preparation of the accounts. The truste 43(2) of the Charities Act 1993 (the 1993 Ac

Having satisfied myself that the charity independent examination, it is my responsib

examine the accounts under section 43 of th to follow the procedures laid down in the 43(7)(b) of the 1993 Act; and to state whether particular matters have com

Basis of independent examiner’s report My examination was carried out in accordan examination includes a review of the accou presented with those records. It also include and seeking explanations from you as truste provide all the evidence that would be requ the accounts present a ‘true and fair view’ below.

Independent examiner’s qualified statement The accounts do not fully comply with com sheet and notes are present but instead o expenditure account, only a profit and loss a the balance sheet are the funds analysed b funds held is detailed in the notes to the acc at the year-end.

In connection with my examination, apart f fully compliant with the accounting requirem principles of the Statement of Recommend come to my attention:

(1) which gives me reasonable cause to accounting records in accordance with sectio

(2) to which, in my opinion, attention should to be reached.

Name: Relevant professional qualification or body: Address: Date:

Appendix 5 Further advicce for examineNote from Sorpaid - many of these defin Accounting Standard or professional gu 1993 Act APPENDIX 5 This means the Charities Act 1993. Further advice for examiners – identifyi 2006 Act

2006 Act Introduction

This means the Charities Act 2006. The examiner’s statutory duty to report m 2005 Regulations section 11 of this guidance. This appendix This means the Charity (Accounts and Repor matters that may be reportable to the Comm Accounting policies

Those principles, bases, conventions, rules A decision to report a matter to the Commi events are reflected in the accounts thro matter is likely to be of material significanc liabilities, gains, losses and changes or movhas to consider the matter identified from th where judgement is required in recordingor an exhaustive list of all matters of ‘mat liabilities. Accounting policies should be reledeciding whether a matter identified is rep financial information presented in the accou matters to report and is only expected to d Accounting standards matter is reportable. Accounts which are intended to show a tru

Accounting Standards Board or its predece Minor breaches of trustees’ obligations or i which professional accountants are expect assets are not normally reportable unless th Accounting Practice” (SSAP), “Financial Re (UITF abstracts). The Commission recognises that reaching a Accruals basis task particularly for volunteer examiners wh This concept requires the effects of transa

accounts for the period in which they occur, There are a number of questions the examin made. This concept is central to the recognit

This phrase has been used to describe acco Is this a matter which causes you, the exam of the 1993 Act. Such accounts should be pr Is this a matter the Commission is likely to n comprise: Is this a matter the Commission needs to kn • a statement of financial activities; Are charity funds or the safety of beneficiari The examiner should check whether the m • a balance sheet; and guidance which are always regarded as rep range of matters which the Commission inv • notes to the accounts. on our website.

If after going through these steps the exam Such accounts should be prepared on a basbeing of ‘material significance’ it can be he fair view and are consistent with accounti not to report will remain with the examine accruals. examiners but we cannot make the decis Charity trustees discussion will not remove the need for a r Charity trustees are defined by section 9 significance. governing document, are responsible for t

charity. In the charity’s governing documWhere a matter is identified which is potent members, governors, or directors, or they mor circumstances. The examiner does not Form and content doubt but the examiner needs to have suffi Statutory requirements as to disclosures, an reportable matter does exist or has occurred Going concern help establish their concern but only to the The concept requires the charity to prepare for their belief about the reportable matter. for the foreseeable future. The going conce

operational activities, is being wound-up or It is also important for the examiner to reme up, liquidate or cease its operational activitie report. An independent examination is not Governing document examiner to look at a limited number of thin The governing document of a charity is any examination are set by the Directions and to be administered. It may be a trust d examiner must not do is ignore a matter ide conveyance, Royal Charter, Scheme of the material significance. the provisions contained in the governing do

Matters suggesting dishonesty or fraud Independent Examinationfunds or assets – criminal activity within Independent examination was introduced by already been reported to the police. Certa audit and provides less assurance both in considered, for example, large or regular ca qualification necessary to undertake such w purposes of the charity, falsifying of accoun kept by the charity and a comparison of the of personal bank accounts to hold charity fu the accounts and consideration of any uwhere the end recipient cannot be identified procedures only become necessary where the accounts and seeking explanations for u satisfactory explanations cannot be obtained

satisfactory explanations cannot be obtained

The examiner is not required to build up a Failure(s) of internal controls, inclu would be required with an audit. Nor is the significant loss or misappropriation of show a “true and fair view”. funds being put at major risk – althoug Letter of engagement failures or risks may still become apparent A letter addressed to the charity trust kept, expenditure regularly taking place with responsibilities of the charity trustees and th credit cards, store cards, e-cards or cash uns include matters such as fee arrangements, never or rarely meeting to administer the statutory work to be undertaken by the exa accounting records or in obtaining a general the content of any such letter should be agre

Material Matters leading to the knowledge or s An item is “material” if, taking all the circu for money laundering or such funds are influence a reader of the report and accoun is a conduit for criminal activity – wh part. accountancy service under contract, and so 2007 and any guidance issued by their prof Professional audit reportable can be a difficult judgment. To be An audit undertaken by a registered auditor that evidence is tentative. Simple speculatio Receipts and payments basis sufficient grounds to form a suspicion. It i This phrase has been used to describe acc laundering – but matters that would require comprise: refusal by trustees to explain an unusual tra • a receipts and payments account; and concerns about the honesty, integrity, or ide large or regular donations that require the c • a statement of assets and liabilities. of the UK or to buy goods or services from th loans from an unknown or unverified source Such accounts do not purport to show a “tru asked to repay by cheque or bank transfer to money received and paid during the year a request by a donor to return funds by ch liabilities at the end of the year. account’; SORP ‘loaning’ of the charity’s bank account to en The Statement of Recommended Practice: A making money transfers inside or outside of out the recommended practice for the purp illogical transactions or routing of funds thro accounts on the accruals basis. The acco unusual investment or property transactions preparing receipts and payments accounts.

Matters leading to belief or suspicion t involved in or used to support terrorism where a concern arises examiners should re website . Where the concern relates to the check whether it is a proscribed organisati that are indicative of money laundering activ Evidence suggesting that in the way the beneficiaries, the charity’s beneficiaries hav examiner is not expected to act as an inspe state of the beneficiaries. Whilst examiners of how the charity operates, for example f complaints or concerns. Examiners may, fo charity, a criminal investigation or an inves necessary eligibility checks on trustees or guidance on protecting children may be help

Significant or recurring breach(es) of e

examiner is not expected to be a legal expe or isolated administrative errors that do no reportable. However, if the amounts involve administration of the charity. At the extrem making the charity effectively a sham or th with the charity or a disregard for legislative unauthorised remuneration or benefits for se paid to provide services to a charity, other t in law are followed and the payment disclose A deliberate or serious breach of an order i l di di h it t t

including suspending a charity trustee, pro particular terms involving significant charita regulatory powers to protect the assets or r consent on particular terms. If, for exam administration of a charity or funds are bei undertaken on a basis that is contradictory t

Any notification or matters reported matters that the examiner is aware categories of reportable matters – The matter, for example, a refusal to provide inf magnitude that the examiner is unwilling t falls within the categories of reportable matt Trustees are separately required to notify th requiring the filing of a serious incident repo the year or as part of their Annual Return serious incident reports, not the examiner’s have had cause to make a serious incident r examiner should ask for a copy and if it is the examiner’s understanding of what has remedy the matter of which they are aware.

An example letter, reporting a matter of ma An example letter is also provided of a m category of ‘material significance’ but where report believing the information to be releva

Example report arising from a legal du Commission ( a sample discretionary re This example provides additional information Whitetree White Town Lane White Whitterington Well County WW1 3ZZ The Complaints Team Manager Charity Commission Direct PO Box 1227 LIVERPOOL L69 3UG

September 15 2009

Dear Sir

Matter of material significance to be brought I am making a report to you in accordance w which I believe is of material significance to Charities Act 1993.

The income of ABC Trust to the year ending AB Donor Trust of £75,000 to fund a planne course of my examination I discovered th occasions taking these funds with him in th XXX a partner organisation. Neither Mr CD n any field reports or other evidence as to how

The trustees remain confident in Mr TZ who facilities run b XXX partner organisation gi

facilities run by XXX partner organisation gi the trustees have sought to obtain field repo journeyed to neighbouring Y Country and hi may now require the return of these funds b money was spent.

Having completed my examination of the a these matters.

Yours faithfully

Mr A Doubt

Example report: A discretionary report Whitetree White Town Lane White Whitterington Well County WW1 3ZZ The Complaints Team Manager Charity Commission Direct PO Box 1227 LIVERPOOL L69 3UG

September 15 2009

Dear Sir

Matter of relevance to the functions of the C

I am making a report to you in accordance w which I believe is of relevance to you in the e

Whilst carrying out the independent examin trustee, Mr Long Service, an honorarium of no power in its constitution to make the pay payment, which is above the level of £1,0 charity law. I understand the trustees have the matter.

Having completed my examination of the ac the payment is shown in the accounts and necessary to provide a proper understanding

Yours faithfully

Mr A Doubt

Appendix 6 Glossary of terms

APPENDIX 6 Glossary of terms

1993 Act

This means the Charities Act 1993.

2006 Act

This means the Charities Act 2006

2008 Regulations

This means the Charities (Accounts and Repo

Accounting policies

Those principles, bases, conventions, rules events are reflected in the accounts thro liabilities, gains, losses and changes or mov where judgment is required in recording the Accounting policies should be relevant and information presented in the accounts.

Accounting standards

Accounts which are intended to show a true by the Accounting Standards Board. These familiar, comprise a number of ‘Statemen Standards’ (FRS) and ‘Urgent Issues Taskforc

Accruals basis

This concept requires the effects of transa accounts for the period in which they occur, made. This concept is central to the recognit

This term has been used to describe accoun the 1993 Act. Such accounts should be pre comprise:

a statement of financial activities; a balance sheet; and notes to the accounts. Such accounts should be prepared on a bas fair view and are consistent with accounti accruals.

Bank reconciliation

A bank reconciliation is a statement which re balance shown in the accounts by adjustin that have been written but not presented a prior to the closing bank balance date.

Charity trustees

Charity trustees are defined by section 9 governing document, are responsible for t charity. In the charity’s governing docum members, governors, or directors, or they m

Control accounts

Control accounts form part of the nominal le control function for sales, purchases, payrol control the total amounts invoiced and cash balance on such accounts can be reconci payment has not been received.

Directors

Directors are one or more persons over th company. The directors form a Board of dire responsible for managing the company’s a legally liable for their actions. The trustees o

Endowment

Endowment funds are a form of restricted fu Income generated from the capital can be s represent property held as endowment for endowment is a fund where the trustees do a fund where the trustees have the option to spending income funds.

Evidence

This phrase is used in Appendix 5 in determ and should be reported. Evidence is the info examination. The sources of evidence avai analytical review, the explanations given in procedures that prove necessary and the ch

Form and content

d

f h

Form and content refers to the statutory req be contained in the accounts.

Fraud

The Fraud Act 2006 established a definition failure to disclose information, or abuse of p is acting dishonestly and is seeking to gain f

Going concern

The concept requires the charity to prepare for the foreseeable future. The going conce trustees intend, to cease operational activiti

Governing document

The governing document of a charity is any to be administered. It may be a trust d conveyance, Royal Charter, Scheme of the the provisions contained in the governing do

Letter of engagement

A letter addressed to the charity trust responsibilities of the charity trustees and th include matters such as fee arrangements, statutory work to be undertaken by the exa the content of any such letter should be agre

Materiality (material)

Materiality is the judgement by the examin the reader’s understanding of the accounts. error or misstatement.

Members

Members of a charity are those persons or c of the charity. The governing documents se and responsibilities of members and the company law the members of a company ar and are also those persons who become m members. Company law and the articles of and removing members, the role and res governance of the charitable company.

Misappropriation

This term is used in Appendix 5 and means t someone’s own use.

Misstatement

This term used in Direction 6, analytical p materially misstated by the inclusion of an i wrong or by the omission of an item that sho

Nominal ledger

Nominal ledger, or general ledger, is an contains the accounting transactions for transactions that have been processed over and financial accounts prepared. Smaller ch analysed cash book normally in an analysed

Payroll summaries

Computerised or manual records indicating employers’ national insurance and other contributions to defined benefit or defined co

Professional audit

An audit is undertaken by a person who is e auditor has to express his or her profess accordance with UK auditing standards.

Receipts and payments basis

This phrase has been used to describe acc comprise:

a receipts and payments account; and a statement of assets and liabilities. Such accounts do not purport to show a ‘tru money received and paid during the year a liabilities at the end of the year.

Restricted income funds

Restricted income funds are funds that the Restricted income funds are subject to sp authority (eg in a public appeal) or created charity.

SORP

The Statement of Recommended Practice – out the recommended practice for the pu accounts of a charity on an accruals basis charities preparing receipts and payments a

Statutory audit

Where the term statutory audit is used this r where the charity’s gross income and/or as appointment as auditor of a company, or a Regulations.

Trial balance

The trial balance is the simple listing of maintained within the charity’s manual reco

Terrorism

Under Part II of the Terrorism Act 2000, the S he/she believes ‘is concerned with terrori

he/she believes ‘is concerned with terrori participates in acts of terrorism, prepares concerned in terrorism either in the UK or ab

Unrestricted funds

Unrestricted funds are funds which the tru purposes. Unrestricted funds may also conta for a particular purpose; these earmarked fu part of the unrestricted funds, though they accruals accounts are prepared, or as part prepared.

Working papers

Working papers are the written or computer of work undertaken, kept by the examiner t they posed and the answers they had to tho review, and copies of any records that may b

The introduction to and narrative expla in pages 1 to 14 of CC31

Introduction: what is this guidance abo

To maintain public confidence in the work o scrutiny of their accounts. Provided a charity exceeds £100,000 its gross assets are not m simpler and less expensive form of external

An independent examination is a simpler fo beneficiaries stakeholders and the public

beneficiaries, stakeholders and the public reviewed by an independent person. For examination will also be an option for elig gross income of more than £10,000 will have

Trustees are responsible for deciding wheth selecting and appointing the independent e to know about independent examination an make the examination effective. Trustees, independent examination involves before understanding what is involved, trustees explanations ready to assist the examiner to

The second part of this guidance, the Direc examiner. Whether acting as a volunteer or and they must follow certain steps in carryin particular matters once they have finishe guidance takes the examiner through the every stage.

Whilst in most cases the examiner will be re a qualified accountant to carry out a proper ability and knowledge to follow the Direction is required by the Regulations. Where gross be a member of a listed body listed in the Ch

Where accruals accounts are prepared the accounting and to be familiar with the ‘St Charities (2005)’, otherwise known as the SO experience to carry out a competent examin if the charity is preparing accruals accounts.

Examiners are therefore recommended to re Directions for independent examination, the about carrying out their work.

To which accounting periods does this g This guidance has been updated for change introduced by the Charities Act 2006 (the 20 (the 2008 Regulations) and should be app eligible small charitable companies incorpo after 1 April 2008. The references provided apply from 6 April 2008.

Guidance for trustees: what to prepare who can do it and how to go about appo

What to prepare? The requirement to prep Trustees should read Charity Reporting and requirements for a Trustees’ Annual Repor Details are also provided about the informat

Small charities, which are not charitable receipts and payments accounts or accrual Receipts and payments accounts offer a s Receipts and payments accounts are simply year reconciling cash and bank balances he any other assets or liabilities at the year en Receipts and Payments Accounts Pack (CC1 receipts and payments accounts, the statem

receipts and payments accounts, the statem a worked example using the pack called ‘St G

All charitable companies must prepare accr of more than £100,000 in a financial yea accordance with the SORP. However, registe their own SORP and should use that instea unlikely to be eligible for independent exam

Accruals accounts are not simply a form o received by the year end) and creditors (mo must also include the cost or valuation of a of investments, the impairment of functio example, accounting for pension arrange accounting than receipts and payments and Board in accounting standards and interpre also comply with the accounting requiremen

For charities not requiring a statutory audit, company charities and our publication Ac accounts, Trustees’ Annual Report and exam For both company and non-company chariti our website.

What is an independent examination? Independent examination was introduced b trustees of smaller charities to opt for this si

An independent examination provides an ex with the relevant ability and experience, exc of one of the bodies listed in the 1993 Act form of scrutiny than an audit and provides out. What the examiner must do is set out in the 2008 Regulations.

An examiner, in their report, is only require things have not been done by the charity. T The examiner is not acting as an auditor and to test the internal financial controls operatin

An examination involves a review of the accounts presented with those records. It a unusual items or disclosures identified. It is an item in the accounts is checked against necessary where significant concerns are explanations cannot be obtained from the tr

In the examiner’s report, the examiner is o come to their attention as a result of the e requirement than that of an audit. An audit statement of opinion on the accounts. In pa accounts show a ‘true and fair view’.

Where a significant concern relating to th understanding of the accounts remains u examiner’s report come to the examiner’s at (see Direction 10). If a matter is identified likely to consider using our enquiry powers on that matter to the Commission in addition

The legal framework: What are the thre The thresholds for independent examination of any changes. The thresholds detailed b calculated in accordance with the Commissio

For non-company charities with accountin charitable companies established under com 2008, the thresholds for statutory audit are:

gross income of more than £500,000; or gross assets of more than £2.8 million where Unless gross income exceeds £100,000 the chart in Appendix 2 sets out the steps for d examination.

Charities below these thresholds for audit m governing document requires otherwise. Th the gross income for the year in question is

Where the gross income of the charity exce 2006 Act introduced a new requirement for listed in the 1993 Act and are also set out in

This guidance also applies to small charitab 2008 which are not required to have a sta audit exemption under company law may o same basis as non-company charities, their their accounts still remains subject to com appropriate.

What is the legal framework for an inde The 1993 Act made provisions for regulatio Annual Reports and the duties of charity aud the 2008 Regulations and apply to accoun provides for some form of independent scrut short of a full requirement for an audit for t registered with the Commission and those ch

The 2006 Act introduced a new legal du Commission where, during the course of the activities or affairs of the charity, or of any believe that the matter is likely to be mate guidance explains the legal duty, gives guid out a report.

Where can I find the Regulations?

The 1993 Act, the 2006 Act and the 2008 R and 2006 Act are available from Office of available on-line.

Checking for other external scrutiny req Having checked whether the charity’s gros there are a number of additional points for t work.

An audit may be needed for other reasons in

under the charity’s governing document governing document – see Appendix 2);

g g pp ) under another statutory or regulatory regim charities; or a requirement placed on the charity by a fun Trustees may also choose an audit if they p work an audit involves and due to develop aware that an audit is likely to be considerab

Charities that are incorporated under compa articles may include an audit requirement. If with the additional accounting and report charitable companies are responsible for incorporate the Trustees’ Annual Report, com

Who can carry out an independent exam Section 43(7)(a) of the 1993 Act allows th appointment of an independent examiner. T taken all the steps they need to take in or examiner should also consider the following

The independent examiner

The charity trustees should take steps to therefore consider carefully the suitability of

An independent examiner as described in s reasonably believed by the charity trustees competent examination of the accounts”. O be a person who is a member of one of the rules of that body to undertake the role of in

Institute of Chartered Accountants in Englan Institute of Chartered Accountants of Scotlan Institute of Chartered Accountants in Ireland Association of Chartered Certified Accountan Association of Authorised Public Accountants Association of Accounting Technicians Association of International Accountants Chartered Institute of Management Accounta Institute of Chartered Secretaries and Admin Chartered Institute of Public Finance and Acc Fellow of the Association of Charity Independ Charity trustees are entitled to pay reasona if they are unable to obtain the services of pay such remuneration and regard it as a pro

An independent person

Independence is important because this mea close personal relationships with the trustee For an examiner to be independent that ind might inhibit the impartial conduct of the ex work and so the person who is the charity’s not mean an examiner cannot be a membe added quality of personal enthusiasm and fa

Where a potential independent examiner congregation, provided they have not been charity, for example by serving on a com connected with the charity trustees, then n necessary ability, experience and qualificati in an annual general meeting would not pr

although active participation in the administ

Whether a connection with the charity affec the following persons will not normally be co

a) the charity trustees or anyone else who is

b) a major donor to or major beneficiary of t

c) a child, parent, grandchild, grandparent, b of any person who falls within sub-paragraph

Requisite ability

In the House of Lords’ debate on the Chariti examiner must obviously be competent for methods, but he need not be a practising society managers, local authority treasurers examiners”.

The quality of the evidence of ability which i receipts and payments basis or an accruals b

It is recommended that trustees of chariti selecting a person who is a member of one person, who demonstrates a good unde knowledge of the SORP.

The majority of charities have a gross inco company law, are able to prepare simple straightforward and provides a simple altern smaller charities. Knowledge of accounting payments accounts.

While previous experience will be very helpf with financial awareness and numeracy skill they have read and understood this guida accounts.

Whether receipts and payments accounts familiarity with the certain basics principle restricted) and capital funds (permanent an of trustees, and the role of the charity’s gov refer to our publication The Essential Trustee

Some charities have a trading subsidiary wh out commercial trading in order that any p gross income of the group, ie the gross in eliminating intra group transactions), excee prepare group accounts. Where the aggreg prepared and audited.

If group accounts were prepared below th examination of those accounts would be on contained in this publication although the pr charity and the examiner. For more informa SORP and for details of the preparation thres (CC15a).

Charity trustees should also satisfy themselv the charity in question which might include t

an involvement in the financial administratio acted successfully as an independent exami relevant practical experience in accountancy

Selection procedures

Before appointing an examiner, we recom confirm that:

they are satisfied as to their independence f where accruals accounts are prepared tha undertake their work including knowledge of they have met any requirements (for examp an examiner; and where appropriate they hold professional indemnity insurance. Where appropriate, the trustees may ask qualifications and this is particularly releva 1993 Act or accounts prepared on an accrua

By obtaining this assurance, whether by e-m trustees can demonstrate they have paid pr ability and practical experience”. Where th letter of engagement setting out the ba engagement should recognise, and not limit

Whilst not all examiners have to hold a profe a person suitable for the circumstances of guidance concerning the requisite ability req

Charity trustees should discuss fully with expectations. They should ensure that the p familiar with the Charity Commission’s Di

provide an independent examiner’s report. W 1993, the examiner should also be convers accounts and the SORP.

Where the charity is a small company, the e Companies Act 2006 as to the form and c SORP.

Charity trustees who follow these guidelines any references, can be satisfied that they ability and experience to undertake a compe

A competent examination is one that is c Directions for independent examination.

Timely filing of the Trustees’ Annual Re

Where the charity’s gross income exceed Commission. The trustees are responsible fo with the independent examiner’s report is s end. Trustees of charitable companies shou months of the financial year end and may fin

The trustees should agree a timescale for Annual Report, accounts and supporting re enough to allow the examination to be com the filing deadline.

If the trustees want the independent exami examiner as part of the engagement. If the before the deadline for filing expires setting likely date filing will be made.

Guidance for the examiner: what is involve independent examination?

Preparatory work

It is important that examiners understand t have the necessary ability and experience t to understand what is involved. The first ste trustees have to do, and describes what independent examination.

Members of professional bodies are recom certificate to accept the appointment, wheth professional body may differ in its requireme

When charging a fee, examiners should als services and so must be conversant with, an of the Proceeds of Crime Act 2002. These pr fee, whether a member of a professional bo for further sources of information, refer to Ap

Familiarity with the Directions and the

The 2008 Regulations and Directions are ma those charities currently excepted from re requirements for the content of the indepe consistently applied. The Directions are mad understand what is involved, each Direction do. The guidance that follows each Directio t th i t f th Di ti

meet the requirements of the Directions.

The purpose of this guidance is to help exa what they have to do and what they have t this guidance before starting an independen

The examiner’s report

The examiner’s role is an important one and also gives the examiner an opportunity to concern. The examiner’s report, which is add the law.

The examiner’s report must meet all the req provided in Appendix 4 are not mandatory a covers all the requirements of the 2008 Reg are set out in Regulation 31 of the 2008 Reg be considered when making a report.

The independent examination report for a c that of a non-company charity because it m 2006. The examiner of a charitable com accounting requirements of small companies

Where the trustees have opted to prepare accounts and any examination would be bas charity law. The examiner will need to dev voluntary examination of group accounts req accounting standards and consolidation pr group’s aggregate gross income exceeds £ accounts must be audited.

The first part of the examiner’s report coni charity is eligible for independent examinati

the name of the charity and period covered eligibility of the charity for an independent e that the examiner has followed the Direction the examiner’s responsibility to note if part attention;

the basis of the examiner’s report, which h involved;

where the trustees have obtained a dispens examiner refers to this fact; and

the examiner’s name, address and any relev exceeds £250,000, the qualification held wh The second part of the report confirms whet Unlike an audit there is no opinion given examiner confirms whether or not anything

proper accounting records have not been ke records have not been kept;

the accounts do not accord with such record where accounts are prepared on an accrua under the 2008 Regulations or if a charitab consistent with the SORP; and

any matter which the examiner believes s understanding of the accounts. Matters that the examiner must report includ

material e penditure or action contrar to th

material expenditure or action contrary to th failure by trustees to provide information an evidence that accounts prepared on an ac Report and in the case of a charitable compa The examiner’s report must be signed by th company may be added, the appointment of company. Where an electronic submission is copy with a typed signature.

Exercising judgement

The examiner’s work involves exercising jud obtained when preparing their report. This which are important terms for the examiner as to the relevance of a matter to their repo

Material/ materiality : Materiality is the ju misstated would affect the reader’s underst importance of the item, error or misstateme the effect is material to how an item or tran policy does not conform with the SORP, the applied to transactions or items in the acco the accounts.

In this guidance materiality is used in conn the underlying judgements, accountancy po accounts.

Significant : This is a term that is used in t the analytical review carried out by the exam report. With resp ect to accounting record complete or the extent to which missing Regarding the analytical review, it requires significant in terms of its size or importance the examiner has made in their review is s amounts or minor matters will not be signi pervasive. Often significance can only be review or has finished their work and is rel matter can be significant even if it’s not mat

Material significance : This is a particular t material significance to the Commission. Th significance to the regulatory functions of th to be material are listed in section 11 of this

What are the expectations of the Commissio

The Commission expects all examiners to ha their ability and to make their examiner’s re out their work to be alert to any matters of m

The Commission is aware that volunteer exa the benefit of the sector. In the event of a c carried out by a volunteer, the Commissio proportionate in our approach when conside has acted honestly. This stance is consistent do not have particular professional skills.

Where the examiner is charging a fee or re expect those services to be provided to a pro

expect those services to be provided to a pro

will demonstrate appropriate technical know are prepared; carry out their work fully in accordance with will be well placed, by virtue of their ability material significance to the Commission. For charities with a gross income exceeding an accountancy body listed in the 1993 Act skill and expertise required in examining Commission expects the examination of t standard. Our expectation is that the examin

will demonstrate appropriate technical know carry out their work fully in accordance with will be well placed, by virtue of their ability matters of material significance to the Comm Overview of the Charity Commission’s Direct The Charity Commission’s Directions provid What are the expectations of the Comm duties of the examiner must be met. There aThe Commission expects all examiners to ha out an examitheir ability a n ation of accrual accoud to make their exami n er’s rets and accounts. In addition, all examiners shout their work to be alert to any matters f m o uld attention which give rise to a legal duty to re

The Commission is aware that volunteer exa Directionthe benefit of the sector. In the event of a c Applicable to receipts and paymentscarried out by a volunteer, the Commissio Appro p licable ortiona t eo accrin o u r approach when consideals accounts Applicable tohas acted honestly. This stance is consistent charitable companiesdo not have particular professional skills.

1. Examination and accounting thresholdsWhere the examiner is charging a fee or re √expect those services to be provided to a pro √

√will demonstrate appropriate technical know are prepared; 2. Documentationcarry out their work fully in accordance with √will be well placed, by virtue of their ability √material significance to the Commission. √For charities with a gross income exceeding an accountancy body listed in the 1993 Act 3. Understanding the charityskill and expertise required in examining √Commission expects the examination of t √standard. Our expectation is that the examin √

will demonstrate appropriate technical know 4. Accouncarry out heir work fully in accordance with t ing records √will be well placed, by virtue of their ability √matters of material significance to the Comm √

Overview of the Charity Commission’s D 5. Comparison with accounting records The Charity Commission’s Directions provid √duties of the examiner must be met. There a √out an examination of accrual accounts and √accounts. In addition, all examiners should attention which give rise to a legal duty to re 6. Analytical procedures

√Although only examiners of accounts prepar √Report for consistency with the accounts, √Trustees’ Annual Report helpful in undertakin

1. Form and contents of accounts Resources to assist trustees , the prepare The Commission has a number of publicatio √freely available from our web site. These an √are listed in Appendix 7.

8. Accounting policies, estimates and judgm The Charity Commission’s Directions co

√an explanation of the objective of each of th √guidance on the circumstances which give ri guidance on operational procedures and m Directions.9. Trustees' Annual Report The Directions (which must be followed) are √print below. As with any guidance, the exam √that may arise in the course of examinatio context of their work.

1. Examiner's report

√All references to ‘sections’ of the Charities A √of the 1993 Act, as amended by the Charitie √of the Companies Act 2006 as they apply fro

Legal duty to report certain matters of mate √ √ √

Although only examiners of accounts prepar Report for consistency with the accounts, Trustees’ Annual Report helpful in undertakin

Resources to assist trustees, the preparers o The Commission has a number of publicatio freely available from our web site. These an are listed in Appendix 7.

The Charity Commission’s Directions Set out below are:

an explanation of the objective of each of th guidance on the circumstances which give ri guidance on operational procedures and m Directions.

The Directions (which must be followed) are print below. As with any guidance, the exam that may arise in the course of examinatio context of their work.

All references to ‘sections’ of the Charities A of the 1993 Act, as amended by the Charitie of the Companies Act 2006 as they apply fro

Direction

----- Start of picture text -----
pt from external scrutiny
HAWA
0
B Planning
----- End of picture text -----

----- Start of picture text -----
B 2 Indepen
external scrutiny verified 31101
pt from external scrutiny so the following notes
----- End of picture text -----

England & Wales ON

Or for charities in Scotland - see OSCR guidance

ited companies which are also Charities

t are required either by statute or by professional guidelines quially as a Compilation Report e 27/02/07 f an Independent Examination :- Checklist for incorporated charities es whose gross income as defined ( ie NOT turnover) on an annualised basis is between £90, s years, then the charity is subject to audit and this process cannot apply.

th the permission of the Controller of HMSO after 27/02/07 o £500,000, on a temporary basis only. When the Companies Act 2006 is brought into force ed end users may download this material to screen and printer laced by Corporate Independent Examinations. When the figure of £250,000 is referred to be e material for any other purpose

• ns 7/02/07, even if the gross income is below £500,000 an audit is still required if gross assets e

process reference should be made to the Reporting Accountant's checklist. ons of the Charities Act 1993 or the Charities Act 2006 - depending on the context

d is not a part of the text of CC31 or CC32 can only be carried out by a qualified accountant and is subject to statutory requirements un ndent examinations for accounting periods commencing on or after 1st April 2008

subject to statutory audit missioners' directions

tory audits, but there are exemptions available to none statutory audits (which includes Repo RP does emphasise that full disclosure is encouraged. ctions covers what is an independent examination, who can do it, hat qualifications and experience are required and so on, and a CC31 is essential to the effective conduct of an examination

CC32 Directions & Guidance to Examiners from 01/10/08

CC32 Directions & Guidance to Examiners from 01/10/08
6. Analytical procedures	Appendices
7. Form and content of accounts
8. Accounting policies, estimates and judgements
9. Trustees'Annual Report	1. Calculating gross inc
10. Examiner's Report	2. Flowchart for eligibil
11. Statutory duty to report to the Charity Commission	3 Charities Based in En
	4. Example examiner's
	5. Identifying matters o
heet	Sample lett
	6. Glossary of terms

Guidance

Notes and cross r

Note that all incorporated accounts must be accruals accounts - receipts and payments accounts are not permissible . Guidance

1.1 Trustees may elect for independent examination (under section 43(3)) and for non-company charities only, the preparation of receipts and payments accounts (under section 42(3)). For either election to be valid, the charity must be within the relevant income bands specified by legislation.

The examiner should take reasonable steps to confirm:

Return to main menu

If gross income ex requires that a 'p carried out. The qualifications an requirements are im

• Institute of Chart

the charity’s gross income for the financial year or aggregate value of assets does not exceed the threshold for independent examination. If gross income exceeds £500,000 or gross income exceeds £250,000 and the aggregate value of assets (before deduction of liabilities) exceeds £3.26 million then an audit is required;

• Institute of Chart

• Institute of Chart

• Association of Ch

• Association of Au

• Association of Ac

• Association of Int

• Chartered Institu

where the charity is a parent charity with one or more subsidiaries (eg. a trading company) that the aggregate gross income of the parent charity and its subsidiaries after consolidation adjustments does not exceed £500,000 as above this threshold group accounts will be required which will require an audit;

where the charity operates branches and these branches are part of the charity (and are not separately registered charities) that any income received by the branches has been included in the gross income of the charity;

f receipts and payments are being prepared, that the charity is not a company incorporated under company aw and that the gross income received in the period is ess than £250,000;

whether the gross income exceeds £25,000 because below this threshold no examination is required by law;

• Institute of Chart

• Chartered Institu

• a Fellow of the As

The 2006 Act rem required that, eve below the audit t accounts audited independent exam financial years. T commencing befor

Appendices

1. Calculating gross inc

whether the charity’s governing document requires any form of professional audit; and

whether any grant condition demands an audit of the accounts.

1.2 Carrying out these procedures at an early stage should prevent the work of the examiner being duplicated by professional audit which would add to the expense for the charity. Where the charity is not eligible for independent examination the accounts should be referred back to the trustees to appoint an auditor where the threshold is exceeded or to consider a voluntary

the threshold is exceeded or to consider a voluntary examination where the charity’s gross income is below £25,000.

1.3 Gross income for threshold purposes should be calculated in accordance with the methods set out in Appendix 1 . If accounts are prepared on the accruals basis then the level of income should be considered on the accruals basis. Where accounts are prepared on the receipts and payments basis then the level of income should be considered on the basis of money actually received. Examiners should also familiarise themselves with the various other threshold bands and their effect on the accounting procedures for charities.

1.4 The examiner should consider at an early stage of the examination the level of income disclosed by the accounting records and by the trial balance. The examiner does, however, need to remain alert to any additional information which may come to attention during the course of the examination which indicates that an income threshold has been crossed.

1.5 The reasonable steps taken to confirm the income of the charity and the outcome of that research should be documented in accordance with Direction 2.

1.6 Where the trustees have requested and obtained in advance from the Commission approval for an ndependent examination instead of an audit, the examiner should obtain a copy of the approval letter from the Commission and make reference to it in the examiner’s report. 1.7 The thresholds for audit, independent examination and for receipts and payments accounts are kept under review. The Government has provided for a review of these thresholds following the Charities Act 2006 and consequently it is important to confirm the thresholds that apply. It is therefore recommended that prior to the ndependent examination taking place that the thresholds are confirmed. Details of all current thresholds can be found by viewing the accounting our website's publication pages.

Return to main menu

ore extensive electronic working paper file which can be an examiner to fully document all aspects of the work of an st professional standards.

paid.com

Guidance

Notes and cross r

Guidance

applies to all forms o

2.1 The examiner’s working papers should provide details of the work undertaken and support any conclusions reached, and record any matters of judgment (see Direction 8) which may arise. Working Return to main menu papers should normally be retained by the examiner for six years from the end of the financial year to which they relate, and would include:

include:

a communication with the trustees which confirms their appointment as the independent examiner. Independent examiners charging a fee or receiving any form of payment should prepare a letter of engagement; a letter of engagement, where appropriate, from the independent examiner to the trustees, together with evidence that this has been accepted by the trustees (for example, a copy of the engagement letter signed by a representative of the trustees);

relevant information extracted or obtained from the governing document, trustees’ meeting minutes and a record of discussions with the charity trustees and the charity’s staff;

notes as to how any areas of concern have been resolved, including meetings with trustees and charity staff, together with details of any verification procedures used;

where verification procedures have been used, details of checks or vouching carried out during the examination, with conclusions reached and any areas of concern identified;

where items are added together as a single entry in the accounts, schedules showing the breakdown of accounting items that have been aggregated for accounts disclosure purposes;

copies of any trial balance and the accounts;

the Trustees’ Annual Report where accruals accounts are prepared (recommended but not required for receipts and payments); and

in exceptional circumstances, copies of any written assurances that the examiner required of the trustees confirming amounts included within the accounts.

2.2 Where the examiner has cause to resign or is unable to complete their independent examination, they should consider the circumstances carefully and decide if there is a duty to report to the Commission, for example, if they have been prevented from completing the examination or have been obstructed by trustees or charity staff in carrying out their examination. Even if there is no duty to report, the examiner may decide that they have identified matters which they wish to report because they consider them to be relevant to the work of the Commission. Further guidance on reporting matters to the Commission is provided in section 11 and Appendix 5 .

Appendices

1. Identifying matters o Sample lett

ore extensive electronic working paper file which can be an examiner to fully document all aspects of the work of an st professional standards.

paid.com

Notes and cross r

Guidance

Guidance

Return to main menu

3.1 For a proper examination to be carried out it is important for the examiner to have an understanding of what the charity is aiming to do and how it goes about doing it. The examiner will need to know about the operations, structure and objectives of the charity. This understanding will help the examiner to plan their independent examination by identifying major projects and important activities of the charity, possible problems or concerns and to provide background to their analytical review. The steps taken by an examiner would normally include:

consideration of the governing document of the charity, paying particular attention to the charity’s objects, powers and obligations; consideration of any matters which would give rise to a statutory duty to make a report to the Commission (see section 11 and Appendix 5 for guidance);

Appendices 5. Identifying matters o Sample lett

discussions with trustees and, where appropriate, the charity’s staff, to understand the activities, structure, aims and objectives by which the charity seeks to achieve its objects;

discussions with the trustees and, where appropriate, the charity’s staff, about the activities of the charity in order to gain an insight into any special circumstances and problems affecting the charity; reviewing the minutes of trustees’ meetings to find out about details of major events, plans, decisions and changes to the trustee body; and obtaining details of the accounting records maintained and methods of recording financial transactions. 3.2 Normally a discussion with one of the trustees and the person who prepared the accounts should provide all the information or explanations required. However if during the independent examination a lack of formal trustee meetings, or of an absence of minute keeping or appropriate record keeping, or over-reliance on a key individual, is identified then the examiner may need to confirm or discuss significant matters with two or more of the trustees and/or members of the charity’s staff to gain the necessary background information for the examination.

ore extensive electronic working paper file which can be an examiner to fully document all aspects of the work of an st professional standards.

paid.com

Guidance

Notes and cross r Return to main menu

Guidance

4.1 The charity trustees are responsible for maintaining the

accounting records. This is an important responsibility and an absence of well organised and complete accounting records gives rise to a significant risk of misstatement and loss from fraud, theft, or the misapplication of charitable funds.

4.2 The examiner is required to review the accounting records with a view to identifying any material failure to maintain such records in accordance with the trustees’ legal duty. A simple review should indicate whether records or vouchers have been kept to support the accounts and whether they appear reasonably complete. Further evidence of the completeness of those records may come from any vouching undertaken following the analytical review. For trustees of non-company charities their duty is under section 41(1) of the 1993 Act. For trustees (normally the directors) of charitable companies their legal duty is under section 386 of the Companies Act 2006.

4.3 The review procedures are not aimed at identifying the occasional omission or insignificant error, but at any gross failure to maintain records in a manner consistent with statutory requirements.

4.4 Accounting records should be well organised and capable of ready retrieval and analysis. The records may take a number of forms, for example book form, loose-leaf binder or computer records.

4.5 The accounting records should:

be up to date; be readily available; and

provide the basic information from which the financial position can be ascertained, not only at the year end, but also on any selected date.

4.6 The accounting records should contain:

details of all money received and expended, the date, and the nature of the receipt or expenditure; and details of assets and liabilities.

4.7 Smaller charities do not have to maintain nominal ledgers to record assets and liabilities, and in such instances the requirements can generally be met by maintaining a simple record of transactions and files for unpaid invoices and amounts receivable. A record of stocks and fixed assets is also generally necessary to meet the accounting requirements.

4.8 Charitable companies are required by section 386 of the Companies Act 2006 to maintain accounting records that contain:

entries from day-to-day of all sums of money received and expended by the company and the matters in respect of which the receipt and expenditure takes place; and a record of the assets and liabilities of the company.

4.9 Charitable companies dealing in goods must also maintain stock records, the particular requirements for which are set out in section 386(4) of the Companies Act 2006.

ore extensive electronic working paper file which can be an examiner to fully document all aspects of the work of an st professional standards.

paid.com

Guidance

Guidance

Notes and cross r

Return to main menu applies to all forms o

5.1 It is necessary to compare the accounts with the underlying accounting records to be satisfied that the accounts properly show what income the charity has received and how it has spent its charitable funds and where transactions relate to restricted or endowment funds that these have been properly recorded and identified in the accounts.

5.2 Where accounts are prepared on the accruals basis, all balances in the accounts will need to be compared with the trial balance or any nominal ledger maintained.

5.3 Where accounts are prepared on the receipts and payments basis, a direct comparison with the cash records of the charity should be carried out if no nominal ledger is kept. Records for receipts and payments accounts may amount to bank statements, a file of receipts and invoices, and a simple listing of transactions in a book, or on paper, or entries in a spreadsheet of amounts paid and received with an explanation by each amount.

5.4 Where entries for transactions are not made directly into the nominal ledger, test checks will also be necessary of the posting of entries from books of prime entry (eg cash book, any sales or purchase ledgers or other day books recording transactions) to the trial balance itself. Similar checks are necessary even where accounting records are maintained by using computer accounting packages.

5.5 A review of bank reconciliations, payroll summaries and control accounts prepared will provide a useful check as to the completeness of posting from books of prime entry.

5.6 There is no requirement for accounting entries to be checked against source documents (eg invoices, supplier statements, purchase orders, gift aid records etc) unless concerns arise during the course of the examination or following the analytical review (Direction 6) which cannot be resolved by seeking explanations or the explanations given are insufficient.

5.7 Whilst the charity trustees are responsible for the preparation of accounts, on occasion the examiner may also prepare the statutory

t b h lf f th t t Th ti f t ill

accounts on behalf of the trustees. The preparation of accounts will not generally impinge on independence provided the examiner ensures that the requirements of the Directions are met and provided that:

the accounting records have been maintained by another person; and the examiner has had no direct involvement in the day-to-day management or administration of the charity.

ore extensive electronic working paper file which can be an examiner to fully document all aspects of the work of an st professional standards.

paid.com

Guidance Notes and cross r Return to main menu Guidance 6.1 The analytical review is an important part of the independent examination. For receipts and payments accounts the analytical review involves comparing the analysis of the cash received and the cash spent in the current year with the previous year to identify any significant changes from year to year. For accruals accounts the analytical review involves both the Statement of Financial Activities and the balance sheet with the analysis comparing both the income and the expenditure and the movement in balance sheet values in the current year with the previous year. The examiner of accruals accounts will be looking for material values which require review. 6.2 It is important that the examiner looks carefully at the accounts to see if they reveal any significant or unusual items, unexpected fluctuations, or inconsistencies with other financial information. It is important the analytical review is documented carefully in the examiner’s working papers. In carrying out the analytical review, steps taken would normally include: comparing the accounts with those for comparable prior periods; comparing the accounts with any budgets or forecasts that have been produced; considering whether incoming resources are consistent with known fundraising sources, for example the history of cash collections or fundraising events, grants received, income from trading, or income from the sale of donated goods; considering whether the spending of charitable resources is consistent with the payroll details and the activities and the objects

consistent with the payroll details, and the activities and the objects of the charity - it is important to have obtained a proper understanding of the nature of the charity’s activities and affairs for this aspect of the review to be successful;

considering whether the liabilities and current assets disclosed are consistent with the scale and type of activities undertaken, or in the case of receipts and payments accounts whether all significant assets and liabilities are listed;

considering whether fixed assets investments are producing income consistent with the nature of assets held;

considering whether any tangible fixed assets held are consistent with the scale and type of activities undertaken by the charity;

and where accruals accounts are prepared confirming with the trustees that they are satisfied the charity is a going concern and that there are no post balance sheet events requiring adjustments to be made to the accounts or disclosure in the notes to the accounts.

6.3 Where analytical review procedures identify any unusual items, unexpected fluctuation or inconsistency then explanations should be sought from the charity trustees or, where appropriate, the charity’s staff.

6.4 Only if the explanations provided by the charity trustees, or where appropriate the charity’s staff, do not satisfy the examiner, will additional procedures be necessary. It is important to document in the working papers what items the examiner has found which require further explanation or review and any additional procedures undertaken to confirm those items or matters. Such procedures may include:

physical inspection of a tangible fixed asset; verification of title to an asset;

inspection of third party documentary evidence (eg invoice, contract or agreement) to verify an expense or liability or to confirm an amount of income received or receivable;

third party certification of a bank balance, or other asset held including the custody of investment certificates; and checking of a post year end receipt or payment to confirm recoverability of a debt or the amount of a liability.

6.5 A comprehensive list of analytical procedures, and of additional procedures where concerns arise, is beyond the scope of this publication, and will to an extent be an area in which the examiner will need to exercise judgment and to draw on experience as to what is reasonable given the size and nature of the charity’s activities.

ore extensive electronic working paper file which can be an examiner to fully document all aspects of the work of an st professional standards.

paid.com

Guidance

Notes and cross r

Return to main menu

Guidance

7.1 By far the majority of non-company charities have a gross ncome below £100,000 and are eligible to prepare receipts and payments accounts. A minority of charities, those with a gross ncome in excess of £100,000 and all charitable companies rrespective of their income, should prepare accruals accounts in accordance with the SORP. On occasion the examiner may encounter receipts and payments accounts which are accompanied by a balance sheet instead of a Statement of Assets and Liabilities. Provided that no non-cash items have been put through the receipts and payments accounts the examiner should treat those accounts as receipts and payments accounts, otherwise the accounts should be regarded as accruals accounts and should be examined accordingly.

7.2 The 2008 Regulations draw heavily on the recommendations of the SORP. Where accruals accounts are prepared the examiner will require access to the SORP and an understanding of its principles to ensure compliance with the 2008 Regulations.

7.3 Where accounts are prepared under section 42(1) (the accruals basis), the 2008 Regulations require the accounts to be prepared in accordance with the method and principles of the SORP. The SORP requires all charities preparing accruals accounts to prepare a Statement of Financial Activities, balance sheet, and accompanying notes to the accounts. Charities eligible for independent examination enjoy greater flexibility and Appendix 5 of the SORP details all the concessions that are available for smaller charities preparing accruals accounts.

7.4 The 2008 Regulations concerning the content of accounts do not apply to the accounts of charitable companies. The accounts of charitable companies must be prepared in accordance with section 396 of the Companies Act 2006. The trustees of a charitable company must prepare accounts to give a ‘true and fair’ view and this will generally involve compliance with accounting standards and the SORP. Financial Reporting Standard 18, Accounting Policies requires particular disclosures to be made and explanations to be provided where a SORP has not been followed.

7.5 The examiner should review accruals accounts in sufficient detail to be able to identify any significant non-compliance with the 2008 Regulations and the methods and principles of the SORP. This will nvolve a review of the format of the Statement of Financial Activities and Balance Sheet and the inclusion of necessary notes to the accounts. These review procedures should be sufficiently detailed to enable the examiner to decide whether or not any non-compliance with the 2008 Regulations or the SORP should be identified in the

i

examiner’s report.

7.6 A set of compliant accounts in the SORP format is available for non-company charities in our Accruals Accounts Pack (CC17).

7.7 For charitable companies, section 396 of the Companies Act 2006 requires the preparation of individual accounts. In the case of not-for-profit undertakings, including charities, the Companies Act 2006 section 474(2) substitutes an income and expenditure account for the profit and loss account. In addition a balance sheet is required and additional information is to be provided in the notes. The SORP requires all charities preparing accruals accounts to prepare a Statement of Financial Activities, balance sheet, and accompanying notes to the accounts. A charitable company will therefore usually submit a Statement of Financial Activities that ncorporates an income and expenditure account, it may however opt to submit both an income and expenditure account and a Statement of Financial Activities. In such cases the examiner will review the two statements for consistency.

7.8 The 2008 Regulations do not specify the form and content of accounts prepared on a receipts and payments basis. The Commission does provide pro forma layout for such accounts in our Receipts and Payments Accounts Pack (CC16).

ore extensive electronic working paper file which can be an examiner to fully document all aspects of the work of an st professional standards.

paid.com

Guidance

Notes and cross r

applies to accruals a receipts and paymen

Guidance

8.1 Receipts and payments accounts report cash book transactions in the period and so are not affected by this Direction. If accounts are prepared on the receipts and payments basis under section 42(3), the only fundamental accounting concept which applies is that of consistency of presentation within the accounts. Accounting policies and judgmental issues have less relevance since the receipts and payments account is simply a factual record of money actually received and spent. The statement of assets and liabilities is a simple schedule of information.

Return to main menu

8.2 Further guidance as to the form and content of receipts and payments accounts can be found in the notes included in our

payments accounts can be found in the notes included in our Receipts and Payments Accounts Pack (CC16).

8.3 Accounts prepared on an accruals basis involve the use of accounting policies that determine how transactions and events are reflected in accounts and estimates. Judgement may be necessary to arrive at monetary values to be included in accounts, for example the length of time over which an asset is to be depreciated.

8.4 Where accounts are prepared under section 42(1) (the accruals basis) or under the Companies Act 2006 section 396 the trustees prepare accounts to give a ‘true and fair’ view, the accounting policies adopted, and also any estimates or judgments made in preparing the accounts, may have a material effect on both the financial activities and state of affairs disclosed by the accounts. Such matters therefore require careful consideration by the examiner although the examiner does not have to form an opinion on whether the accounts give a ‘true and fair’ view.

8.5 The examiner should be satisfied that accounts are prepared on a basis consistent with the going concern assumption and accruals concept, and evaluate the accounting policies adopted and applied for appropriateness to the activities of the charity and consistency with the SORP. The accounting policies adopted should ensure a relevant, reliable, comparable and understandable accounts presentation.

8.6 Where the accounts are not prepared on a going concern basis, the examiner should consider the alternative basis upon which they are prepared and ensure that the basis of preparation is adequately disclosed in the accounting policies section of the notes to the accounts.

8.7 The examiner should evaluate whether the accounting policies adopted are consistent with the methods and principles set out in SORP. Where the accounting policies are not consistent with the SORP this should be drawn to the attention of the charity trustees and if the affect on the accounts is material, the matter should be reported in the examiner’s report unless corrected.

8.8 Where accounts are produced under the Companies Act the trustees must prepare the accounts to give a ‘true and fair’ view. However, the examiner is not required to provide an opinion as to whether the accounts give a ‘true and fair’ view. Where accounting policies are not consistent with the SORP, this should be drawn to the attention of the charity trustees by the examiner, and the item(s) in question, if the inconsistency is material, should be reported in the examiner’s report unless corrected.

8.9 The SORP requires a departure from its recommendations to be explained in the notes to the accounts of both company and noncompany charities. A departure is only justifiable if it is necessary in order to give a ‘true and fair’ view and such circumstances will be rare. In the case of a departure the examiner will need to check that the explanation required by the SORP has been provided. Where a material departure has not been adequately justified or explained, the examiner should make a comment in their report.

8.10 The examiner must evaluate the reasonableness of any

y estimates or judgments made in preparing the accounts where these are material to the accounts. Matters that may require consideration include:

transfers to or from restricted fund accounts;

valuation of gifts in kind;

valuation of fixed asset investments where no market prices exist;

estimates resulting from transactions not being fully recorded in the accounting records; and

where an activity based approach has been adopted, the allocation of costs between the various expenditure categories of the Statement of Financial Activities.

ore extensive electronic working paper file which can be an examiner to fully document all aspects of the work of an st professional standards.

paid.com

Guidance

Notes and cross r

Return to main menu

Guidance

9.1 If accounts are prepared on the receipts and payments basis under section 42(3) there is no requirement placed on the examiner to consider the Trustees’ Annual Report. The examiner may, nevertheless, find the annual report a useful guide to the activities of the charity.

9.2 The Trustees’ Annual Report (or for a charitable company the combined trustees’ and directors’ report) provides a report of the charity’s activities during the financial year. Our publication Charity Reporting and Accounts: The Essentials April 2008 (CC15a) sets out the information that should be contained in the Trustees’ Annual Report and the legal requirements concerning the Trustees’ Annual Report that apply to both company and non-company charities are set out in the 2008 Regulations.

Applies only to but for receipt accounts, the ex the report a usef Required to inconsistencies from Cos Act au to confirm tha consistent with t

9.3 Procedures should be directed at identifying inconsistencies between the Trustees’ Annual Report and the accounts which are misleading or which contradict the financial information contained in the accounts. For example, a review should identify where amounts stated in the Annual Report are not consistent with those in the accounts or the nature or scale of activities described are nconsistent with the level of activity disclosed in the accounts. The evel of reserves stated in the Annual Report should be consistent with amounts disclosed in the charity’s balance sheet.

9.4 Where inconsistencies are identified which are significant, this should be drawn to the attention of the charity trustees. If no appropriate amendment is made to the Annual Report then details of the matter should be provided in the examiner’s report.

ore extensive electronic working paper file which can be an examiner to fully document all aspects of the work of an st professional standards.

Return to m

paid.com

Guidance

Notes and cross r

applies to

Guidance

10.1 The examiner’s report is the outcome of an independent examination and is addressed to the trustees. It either confirms that all the matters the examiner is required to review as set out by the 2008 Regulations have been met, or identifies which requirements have not been met, together with any matters that need reporting for the benefit of the reader’s understanding of the charity’s accounts. The examiner needs to consider carefully the conclusions drawn from their examination, and the impact of these conclusions on their report. Appendix 4 provides illustrative examples of independent examiner’s reports.

10.2 The 2008 Regulations set out the legal requirements for an independent examiner’s report. An independent examination is not an audit and the examiner is required to consider a limited number of specified matters in their report and to confirm that nothing has come to their attention in the course of their examination which leads them to conclude that certain requirement have not been met. The report provides ‘negative’ assurance requiring the examiner to give an opinion only on a matter where they have found that a requirement has not been met. The matters to be reported on are listed in paragraph 10.4.

Return to m

The report shee produce a repor a) complies with reports

b) complies w standards and covered in a rep

but will need m with these guide

10.3 The first part of the examiner’s report is a factual statement. In their examiner’s report the examiner must state:

the examiner’s name and address and the name of the charity concerned;

;

the financial year in respect of which the accounts to which the report relates have been prepared, and where the charity is a charitable company, that the accounts do not require an audit in accordance with Part 16 of the Companies Act 2006;

if the gross income exceeds £250,000, the qualification which enables him or her to act as an independent examiner; any relevant professional qualification the examiner holds;

in the event of the independent examination being allowed by dispensation in place of an audit, the date when the Commission dispensed with the requirement for an audit;

that the report provided relates to an independent examination carried out under section 43 of the 1993 Act and that the examination has been conducted in accordance with the Directions given by the Commission.

10.4 After making these statements, the examiner must then state whether or not any matter has come to attention, in connection with the examination, which gives reasonable cause to believe that in any material respect:

accounting records for non-company charities have not been kept in accordance with section 41 of the Charities Act 1993; or where the charity is a charitable company, the accounting records have not been kept in accordance with section 386 of the Companies Act 2006; or

the accounts do not accord with the accounting records; or where the accounts are prepared on an accruals basis for a noncompany charity under section 42(1) of the Act 1993 and those accounts do not comply with the requirements of the 2008 Regulations setting out the form and content of charity accounts (Charity accounts consist of a Statement of Financial Activities and balance sheet and are prepared in accordance with the methods and principles set out in the Statement of Recommended Practice); or

where the accounts are prepared for a charitable company, the accounts do not comply with section 396 of the Companies Act and the methods and principles of the SORP.

10.5 Where any of the above matters have been identified, and the failure is considered material, there should be a clear explanation of the nature of the failure and, where it can be estimated its financial effects on the accounts.

10.6 Where the concern relates to non-compliance to the form and content of the accounts or material inconsistency with the SORP, the matter should be raised first with the charity trustees to seek the necessary amendment to the accounts.

10.7 The examiner in the second part of the report is also required to state whether or not any matter has come to their attention in connection with the examination to which, in the examiner’s opinion, attention should be drawn in the report to enable a proper understanding of the accounts to be reached. It is expected that

g p only significant matters will be reported. Where accruals accounts are prepared attention is drawn to matters which are material to the accounts. These matters should be brought to the attention of the charity trustees first with a view to seeking an amendment or adjustment to the accounts but if concerns remain the matter should be addressed in the examiner’s report. Where reported the matter concerned should be fully explained together with the financial effects on the accounts.

10.8 There is also a requirement to provide a statement if the following specific matters have become apparent to the examiner during the course of the examination:

any material expenditure or action which appears not to be in accordance with the trusts of the charity;

any failure to be provided with information and explanation by any past or present trustee, officer or employee that is considered necessary for the examination; and

in the case of accruals accounts any material inconsistency between the accounts and the Trustees’ Annual Report and, in the case of a charitable company with the director’s report.

10.9 In order to identify any material expenditure or activities undertaken outside the objects of the charity, an understanding of the stated objects of the charity, as set out in its governing document, is necessary. Small or immaterial levels of expenditure on purposes outside of the objects of the charity will not generally be included in the examiner’s report. Material expenditure, or significant actions, contrary to the trusts of the charity would be a major concern and details should be included on the examiner’s report. The examiner need not carry out specific checks or procedures to identify such breaches, but such matters when identified must be included in the examiner’s report. The examiner will also need to consider whether a separate report of the matter needs to be sent to the Commission. This separate duty is explained fully in section 11 of this guidance.

10.10 Any failure to be provided with information and explanations may seriously hamper an examination. If information and explanations requested are not provided to the examiner’s satisfaction this fact must be included in the examiner’s report. A refusal to provide information or explanations is a serious matter and a separate report to the Commission may again be necessary (see section 11 of this guidance).

10.11 In the case of accounts prepared on an accruals basis any major inconsistency between the accounts and the Trustees’ Annual Report may give rise to misunderstanding. This should be brought to the attention of the charity trustees with a view to the amendment of the discrepancy. If the trustees decline to agree to change their Annual Report or where concerns still exist this must be stated in the examiner’s report.

10.12 For NHS charities independently examined by an examiner appointed by the Audit Commission or the Auditor General for Walesthe examiner has equivalent reporting duties that are set out in Regulation 32 of the 2008 Regulations.

ore extensive electronic working paper file which can be an examiner to fully document all aspects of the work of an st professional standards.

paid.com

Guidance

Notes and cross r

applies to all forms o

Guidance

11.1 In addition to making an examination report on the accounts, the examiner has a separate legal responsibility to report to the Charity Commission if a matter of material significance to the regulatory functions of the Commission is identified. This duty applies to both company and non-company charities which are registered with the Commission and to charities which are currently excepted from registration with the Commission.

11.2 It is important to emphasise there is neither a legal duty nor an expectation that the examiner will actively go looking for matters of material significance that need to be reported. However, where the examiner comes across such matters as part of their work, they must make a report to the Commission. Normally the matter will relate to the year the examiner is reporting upon and the examiner is not required to review the previous year’s accounts and records. However, where a matter comes to light relating to a previous financial year which would give rise to a duty to report, then the examiner should still make a report.

11.3 The Commission and The Office of the Scottish Charity Regulator (OSCR) have agreed a shared list of 8 matters of material significance that should always be reported by an independent examiner. These matters of material significance are set out below:

Matters suggesting dishonesty or fraud involving a significant loss of, or a major risk to, charitable funds or assets. Failure(s) of internal controls, including failure(s) in charity governance that resulted in a significant loss or misappropriation

governance, that resulted in a significant loss or misappropriation of charitable funds, or which leads to significant charitable funds being put at major risk.

Matters leading to the knowledge or suspicion that the charity or charitable funds have been used for money laundering or such funds are the proceeds of serious organised crime or that the charity is a conduit for criminal activity.

Matters leading to belief or suspicion that the charity, its trustees, employees or assets, have been involved in or used to support terrorism or proscribed organisations in the UK or outside of the UK. Evidence suggesting that in the way the charity carries out its work relating to the care and welfare of beneficiaries, the charity’s beneficiaries have been or were put at significant risk of abuse or mistreatment.

Significant or recurring breach(es) of either a legislative requirement or of the charity’s trusts.

A deliberate or serious breach of an order or direction made by a charity regulator under statutory powers including suspending a charity trustee, prohibiting a particular transaction or activity or granting consent on particular terms involving significant charitable assets or liabilities.

Any notification or matter reported to the trustees on resigning as independent examiner or matter that the examiner is aware of on resignation or ceasing to act that falls within the categories of reportable matters set out above.

11.4 Volunteer independent examiners may not encounter these situations very often when reviewing the accounts of charities and so to help them, and to help all examiners, some illustrative examples are provided in Appendix 5 of matters of material significance and where they may be identified in the course of the examiner’s work.

11.5 The examiner must make a report to the Commission only if in the course of their independent examination they identify a matter which they have reasonable cause to believe is likely to be of material significance for the purposes of the exercise by the Commission of its formal inquiry powers under section 8 or 18 of the Charities Act 1993.

11.6 The duty to report relates to information or evidence obtained from the examiner’s work undertaken in fulfilling the Commission’s Directions or whilst acting in the capacity of the examiner of a charity. A reporting requirement would not arise from minor breaches of trustees’ obligations, or isolated administrative errors that are unlikely to jeopardise the charity’s assets or amount to misconduct or mismanagement.

11.7 The duty to report applies to the examiner who must make a report whether or not the matter has already been notified to other regulators or agencies and whether or not the trustees have already advised the Commission, for example, by making a serious incident report. In any event the examiner must keep the particular matters of material significance in mind as they carry out their examination.

11.8 Where the matter to be reported concerns terrorism then the matter must be immediately reported to the Police before the examiner makes their report to the Commission.

11 9 Where the matter to be reported concerns money laundering

11.9 Where the matter to be reported concerns money laundering, those examiners who are charging a fee are providing an accountancy service and so are governed by the Money Laundering Regulations and should advise the Serious Organised Crime Agency in the first instance. However, it is not expected that notifying the Commission, itself a regulator, will give rise to a ‘tipping off’ offence.

11.10 In preparing to make their report to the Commission of a matter of material significance, the examiner should gather together the relevant information or evidence about the matter and make a note of the significant concern(s) identified. The examiner may find it helpful to discuss the matter first with the trustees unless the matter concerns the honesty or integrity of the trustees. In particular, matters that involve terrorism or money laundering must always be immediately reported to the police or Serious Organised Crime Agency and care exercised to ensure risks of ‘tipping off’ do not arise.

11.11 There should not be delay in sending a report to the Commission as the duty to report is immediate. However, the Commission recognises that the examiner will need some time to consider the information or evidence identified and where appropriate to seek clarification or further explanation from the trustees. Where the trustees wish to explain the actions they have taken or propose to take this may be appended to the examiner’s report.

11.12 Where a reporting duty arises the examiner should report the matter either by email or in writing to the Complaints Team Manager, Charity Commission Direct, PO Box 1227, Liverpool, L69 3UG. The email or letter should be headed ‘Independent Examiner reporting a matter of material significance’ and should provide the following information:

the examiner’s name and contact address, telephone number and/or email address;

the charity’s name and registration number (if applicable); a statement that the report is made in accordance with section 44A of the Act 1993;

under which of the eight headings of reportable matters (see paragraph 11.3) the report is being made;

describe the matter giving rise to concern and the information available on the matter reported, where possible, provide an estimate of the financial implications;

where the trustees are attempting to deal with the situation, a brief description of any steps being taken by trustees of which the examiner has been made aware;

if the report concerns terrorist, money laundering or other criminal activity whether you have notified the Serious Organised Crime Agency and/or Police as appropriate; and

if the report concerns the abuse of vulnerable beneficiaries whether you have informed the Police and/or Social Services.

11.13 Section 44 of the 1993 Act also provides a discretionary power or right for the examiner to make a report to the Commission where the examiner becomes aware of a matter, where there is reasonable cause to believe the matter is likely to be relevant to the exercise of any of the Commission’s functions. This is a very broad right and enables the examiner to advise the Commission of any matters that may be relevant to the Commission’s functions

any matters that may be relevant to the Commission s functions but where the matter does not fall clearly within the category of being of material significance. This right might be used by an examiner, for example, where a matter has been identified that the examiner believes the Commission’s input is necessary for its resolution.

11.14 It is not appropriate to give a list of issues where this discretionary power might be used because it is widely drawn and there is no obligation on the examiner to make a report. Examiners are encouraged not to report small or insignificant matters, particularly where such matters have been satisfactorily resolved internally or the matter can be resolved by the examiner through discussion with the trustees in the first instance.

11.15 Where the examiner is exercising their discretion to report a matter, the examiner should report either by email or in writing to: The Complaints Team Manager, Charity Commission Direct, PO Box 1227, Liverpool, L69 3UG.

The examiner should:

state the charity’s name and registration number (if applicable);

state the examiner’s name and contact address, telephone number and/ or email address;

state that the report is made using the examiner’s power of discretion to report a matter relevant to the work of the Commission in accordance with section 44A of the Act 1993; describe the matter and the examiner’s view of its relevance to the work of the Commission, and, where possible, provide an estimate of the financial implications; and

where the trustees are attempting to deal with the situation, give a brief description of any steps being taken by the trustees of which the examiner is aware.

11.16 Appendix 5 provides further advice, particularly for volunteer examiners, on matters of material significance that may be reportable to the Commission. Appendix 5 also provides examples of how a letter to the Commission might be set out where a reportable matter is identified or where the examiner chooses to exercise their discretionary power or right to report a matter. Where a report is made to the Commission under these provisions, the examiner cannot be held to be in breach of any duty to the trustees or the charity, for example, breach of confidence. The examiner enjoys legal protection in relation to the information or opinions contained in the report made to the Commission.

ore extensive electronic working paper file which can be an examiner to fully document all aspects of the work of an st professional standards.

paid.com

gross income, consequently the Charity Commission, in exercising its me nnual Return process and for the administration of the reporting and t interpret the definition of gross income. The definition is reviewed n process, 1993 Act s48(1).

Return to main menu

of the charity in all unrestricted and restricted income funds but not funds nor capital gains in an income fund. ference to the gross income of a charity: “means its gross recorded usts”. This broad definition is interpreted for administrative purposes on of any costs or expenses. ual Return requirements and making the Annual Return regulations administrative definition of gross income is reviewed annually in donations and related tax reclaims) grants, gifts, legacies, and Return 2008) l basis ‘gross income’ should be calculated as: services in furtherance of the charity’s objectives; e Statement of Financial Activities (prepared in accordance with the er activities undertaken for generating funds; t of any endowment; and me funds during the year from endowment funds in order to be vidends, related tax reclaims and rents); and

ncoming resources gains on revaluation of fixed assets or gains on s income’ for these purposes.)

Note that 'gro turnover. It in goods and ser consideration services provid

So accountanc market value included in expenditure. S free by a local

This point is o implications f requirements

n allocated or transferred to unrestricted or restricted income funds pts and payments basis ‘gross income’ is simply the total receipts te 2 below); and excluding the receipt of any endowment. le capital they should include the amount spent as “other income”. luded as income when they first come into the charity (see note 1

from income:

Return to main menu

r independent examination counts assets which are used for the purpose of al fixed assets”); ed out an examination of the accounts of a charity under section 43 s and functional fixed assets; sharity trustees which: assets; and

s assets; and y me of the charity concerned; tional fixed assets. ts for independent examination ant professional qualifications or professional body of which he is a

ar in respect of which the accounts to which it relates have been ny tax related reclaims) etc which the donor expects will be, or may are capital (endowment), and should be excluded. Such donations onal assets, e.g. land and buildings that are to be retained and used an examination carried out under section 43 of the 1993 Act and in the Commission under subsection (7)(b) of that section which are ome to the examiner’s attention in connection with the examination turn will only affect endowed charities that have obtained a consent e that in any material respect: te a total return approach to investments. in respect of the charity in accordance with section 41 of the 1993 cords; or nts a statement of which has been prepared under section 42(1) of es not comply with any of the requirements of Regulation 3 or, as the equirement to give a true and fair view; me to the examiner’s attention in connection with the examination to rawn in the report in order to enable a proper understanding of the ollowing matters has become apparent to the examiner during the e or action which appears not to be in accordance with the trusts of m and content requirement of statements of accounts, other than an he form and contents of accounts of investment funds and reference ent of accounts of a “special case charity”. h he is entitled under Regulation 9 below has not been afforded to nts a statement of which has been prepared under section 42(1) of n the statement of accounts is inconsistent in any material respect ared under section 45 of the 1993 Act in respect of the financial year ort ees of “ABC” Trust year ended 30 April 2007, which are set out on pages 00 to 00. xaminer he preparation of the accounts. The charity’s trustees consider that r section 43(2) of the Charities Act 1993 (the 1993 Act)) and that an 3)(a) of the 1993 Act); General Directions given by the Charity Commission (under section come to my attention. nce with the General Directions given by the Charity Commission. An nting records kept by the charity and a comparison of the accounts es consideration of any unusual items or disclosures in the accounts, ees concerning any such matters. The procedures undertaken do not ired in an audit, and consequently I do not express an audit opinion

, q y

p

p

d & Wales also operating in Scotland er has come to my attention:

eve that in any material respect the requirements

with section 41 of the 1993 Act; and lso operating in Scotland

he accounting records and comply with the accounting requirements d Trustee Investment (Scotland) Act 2005, some charities based in cotland may now also need to register with the Office of the Scottish arities also operating in Scotland, which are registered with OSCR, accounting framework issued by OSCR. be drawn in order to enable a proper understanding of the accounts

atter of material significance ( see section 11 and Appendix 5) is gulator should be forwarded to both the Commission and OSCR who the matter forward.

accounts where accruals accounts are prepared under the SORP. ccepted for filing in both jurisdictions provided some narrative in the - failure to disclose investments at market value in Scotland. es of “ABC” Trust

year ended 30 April 2007, which are set out on pages 00 to 00. ipts and payments accounts there are some additional requirements xaminer s that a ‘Statement of Balances’ is prepared instead of a ‘Statement he preparation of the accounts. The charity’s trustees consider that o the accounts are required. Further guidance on Scottish accounting r section 43(2) of the Charities Act 1993 (the 1993 Act)) and that an e.

ayments accounts that meet Scottish requirements for the accounts 3)(a) of the 1993 Act); ement of Balances’ should however be titled ‘Statement of Balances bilities)’ for filing with the Commission. No additional changes are General Directions given by the Charity Commission (under section meet or exceed the requirements for charities in England and Wales

come to my attention. Work Pack’ produced by OSCR from their website.

which are also registered in Scotland are strongly recommended to nce with the General Directions given by the Charity Commission. An s should ensure the examiner meets the requirements of Scottish nting records kept by the charity and a comparison of the accounts e accruals accounts are prepared by a charity registered with OSCR, es consideration of any unusual items or disclosures in the accounts, ualified independent examiner’ as defined in the Charities Accounts ees concerning any such matters. The procedures undertaken do not ccounts of charities registered in Scotland must file them with OSCR ired in an audit, and consequently I do not express an audit opinion year.

d the examiner is always required to review the Annual Report when ort if there is a material difference between the accounts and the t d stock exchange as a fixed asset investment with a market value at ees. have been included in the accounts at their cost of £y, resulting in

alance sheet. This matter gives me reasonable cause to believe that mination report that satisfies the requirements of both jurisdictions. with the accounting requirements of the 1993 Act. or both company and non-company charities that operate in England r matter except that referred to in the above paragraph has come to

LIFIED eve that in any material respect the requirements REPORT (FOR A NON-COMPANY CHARITY ALSO with section 41 of the 1993 Act; and THE SCOTTISH CHARITY REGULATOR PREPARING ACCRUED

he accounting records and comply with the accounting requirements trustees of “ABC” Trust

year ended 30 April 2009, which are set out on pages 00 to 00.

xaminer

be drawn in order to enable a proper understanding of the accounts he preparation of the accounts. The charity’s trustees consider that er section 43(2) of the Charities Act 1993 (the 1993 Act) or under ccounts (Scotland) Regulations 2006 (the 2006 Regulations) and that The charity is preparing accrued accounts and I am qualified to

The charity is preparing accrued accounts and I am qualified to fied member of (named body).

- a matter to be brought to attention in the report es of “ABC” Trust he Charities 1993 Act and under section 44(1)(c) of the Charities and year ended 30 April 2007, which are set out on pages 00 to 00. 2005 Act); xaminer general Directions given by the Charity Commission under section he preparation of the accounts. The charity’s trustees consider that r section 43(2) of the Charities Act 1993 (the 1993 Act)) and that an me to my attention. nce with the general Directions given by the Charity Commission and 3)(a) of the 1993 Act); e Charities Accounts (Scotland) Regulations 2006. An examination s kept by the charity and a comparison of the accounts presented General Directions given by the Charity Commission (under section deration of any unusual items or disclosures in the accounts, and concerning any such matters. The procedures undertaken do not ired in an audit and consequently no opinion is given as to whether come to my attention. and the report is limited to those matters set out in the statement nce with the General Directions given by the Charity Commission. An er has come to my attention: nting records kept by the charity and a comparison of the accounts es consideration of any unusual items or disclosures in the accounts, eve that in any material respect the requirements: ees concerning any such matters. The procedures undertaken do not ired in an audit, and consequently I do not express an audit opinion with section 41 of the 1993 Act and section 44 (1)(a) of the 2005 Act ulations; and t accounting records and comply with the accounting requirements of tter has come to my attention which gives me reasonable cause to 05 Act and Regulation 8 of the 2006 Accounts Regulations. quirements: with section 41 of the 1993 Act; and be drawn in order to enable a proper understanding of the accounts ith the accounting records and to comply with the accounting icted grant of £x, of which £y was expended in the year. A concern which has been carried forward as a fund balance, may need to be n connection with my examination to which, in my opinion, attention OR A NON-COMPANY CHARITY ALSO REGISTERED WITH OSCR understanding of the accounts to be reached. ACCOUNTS) trustees of “DEF” Trust year ended 30 April 2009, which are set out on pages 00 to 00. xaminer he preparation of the accounts. The charity’s trustees consider that er section 43(2) of the Charities Act 1993 (the 1993 Act) or under ts (Scotland) Regulations 2006 (the 2006 Accounts Regulations) and f the Charities 1993 Act and section 44(1)(c) of the Charities and 2005 Act); general Directions given by the Charity Commission under section me to my attention. nce with the general Directions given by the Charity Commission and e Charities Accounts (Scotland) Regulations 2006 An examination

e Charities Accounts (Scotland) Regulations 2006. An examination s kept by the charity and a comparison of the accounts presented deration of any unusual items or disclosures in the accounts, and concerning any such matters. The procedures undertaken do not ired in an audit and consequently no opinion is given as to whether and the report is limited to those matters set out in the statement

er has come to my attention:

eve that in any material respect the requirements

with section 41 of the 1993 Act and section 44 (1)(a) of the 2005 Act ulations; and

accounting records and comply with the accounting requirements of 05 Act and Regulation 9 of the 2006 Regulations

be drawn in order to enable a proper understanding of the accounts

IED REPORT (FOR A COMPANY CHARITY ALSO REGISTERED

trustees of “WXY Charitable Company”

the year ended 30 April 2009, which are set out on pages 00 to 00.

xaminer

the company for the purposes of company law) are responsible for es consider that an audit is not required for this year under section Act) or under Regulation 10 (1)(a) to (c) of The Charities Accounts unts Regulations) and that an independent examination is needed.

is not subject to audit under company law and is eligible for bility to:

f the 1993 Act) and section 44(1) (c) of the Charities and Trustee ct);

general Directions given by the Charity Commission under section

me to my attention.

nce with the general Directions given by the Charity Commission and e Charities Accounts (Scotland) Regulations 2006. An examination s kept by the charity and a comparison of the accounts presented deration of any unusual items or disclosures in the accounts, and concerning any such matters. The procedures undertaken do not ired in an audit and consequently no opinion is given as to whether and the report is limited to those matters set out in the statement

er has come to my attention:

eve that in any material respect the requirements

eve that in any material respect the requirements

with section 386 of the Companies Act 2006 and section 44(1)(a) of

accounting records, comply with the accounting requirements of the e 2005 Act and Regulation 8 of the 2006 Accounts Regulations; and principles of the Statement of Recommended Practice: Accounting

be drawn in order to enable a proper understanding of the accounts

s

Return to main menu

to help examiners set out their reports in a way which he examples cover a number of situations that an examiner

nd of their examination the examiner is able to report that nothing m to believe that one or more of the specific matters on which they are concerns or non-compliance with the requirements of the 2008 the report is described as ‘qualified’.

he charity’s income is greater than £250,000, for the examiner to m to be eligible to undertake the examination.

ssion may permit an independent examination to be carried out equire the examiner to disclose in their report if the examination is in ssion’s dispensation.

The report shee produce a repor

a) complies with reports

b) complies w standards and covered in a rep

but will need m with these guide

g

r unincorporated associations and only a small number are charities ose charities set up under the Companies Acts are termed ‘company he purposes of this guidance and because of company law the the majority of charities, termed ‘non-company’ charities in this Document of the charity, as a company charity has a memorandum n issued with a company number by Companies House. y charity (applicable to both accruals accounts and receipts and any. y charity preparing receipts and payments accounts had failed to y charity preparing receipts and payments accounts had failed to harity has made a cash payment overseas without evidence that the uty to report to the Commission arose and was reported with the mpany had prepared accounts which were not consistent with the

ED REPORT (FOR A NON-COMPANY CHARITY) trustees of “ABC” Trust year ended 30 April 2009, which are set out on pages 00 to 00.

xaminer he preparation of the accounts. The charity’s trustees consider that section 43(2) of the Charities Act 1993 (the 1993 Act) and that an he 1993 Act; general Directions given by the Charity Commission under section me to my attention. nce with the general Directions given by the Charity Commission. An nting records kept by the charity and a comparison of the accounts es consideration of any unusual items or disclosures in the accounts, ees concerning any such matters. The procedures undertaken do not ired in an audit and consequently no opinion is given as to whether and the report is limited to those matters set out in the statement er has come to my attention: eve that in any material respect the requirements: ith section 41 of the 1993 Act; and accounting records and comply with the accounting requirements of

be drawn in order to enable a proper understanding of the accounts

ED REPORT (FOR A COMPANY CHARITY)

trustees of “WXY Charitable Company”

the year ended 30 April 2009, which are set out on pages 00 to 00.

xaminer

the company for the purposes of company law) are responsible for es consider that an audit is not required for this year under section Act) and that an independent examination is needed. The charity’s qualified to undertake the examination by being a qualified member is not subject to audit under company law and is eligible for bility to: he 1993 Act; general Directions given by the Charity Commission under section me to my attention. nce with the general Directions given by the Charity Commission. An nting records kept by the charity and a comparison of the accounts es consideration of any unusual items or disclosures in the accounts, ees concerning any such matters. The procedures undertaken do not ired in an audit and consequently no opinion is given as to whether and the report is limited to those matters set out in the statement er has come to my attention: eve that in any material respect the requirements: ith section 386 of the Companies Act 2006; and e accounting records, comply with the accounting requirements of with the methods and principles of the Statement of Recommended ties be drawn in order to enable a proper understanding of the accounts

D REPORT - FAILURE TO IDENTIFY A RESTRICTED FUND NON-COMPANY CHARITY) trustees of “ABC” Trust

year ended 30 April 2009, which are set out on pages 00 to 00.

xaminer

he preparation of the accounts. The charity’s trustees consider that r section 43(2) of the Charities Act 1993 (the 1993 Act)) and that an

he 1993 Act;

general Directions given by the Charity Commission under section

me to my attention.

nce with the general Directions given by the Charity Commission. An nting records kept by the charity and a comparison of the accounts es consideration of any unusual items or disclosures in the accounts, ees concerning any such matters. The procedures undertaken do not ired in an audit and consequently no opinion is given as to whether and the report is limited to those matters set out in the statement

t

yments accounts but have not separately identified restricted funds hurch service a special appeal was held for a mission to Samarkand the routine collection and no separate record kept of the amount ture on the mission to Samarkand was separately identified and out that the banking for that service was £1,978 against an average w put in place a protocol to ensure that any appeals are now counted

r matter except that referred to in the above paragraph has come to

eve that in any material respect the requirements:

ith section 41 of the 1993 Act; and

accounting records and comply with the accounting requirements of

be drawn in order to enable a proper understanding of the accounts

REPORT - FAILURE TO PREPARE RECEIPTS AND PAYMENTS CHARITY) trustees of “DEF” Trust year ended 30 April 2009, which are set out on pages 00 to 00.

xaminer

he preparation of the accounts. The charity’s trustees consider that section 43(2) of the Charities Act 1993 (the 1993 Act)) and that an

section 43(2) of the Charities Act 1993 (the 1993 Act)) and that an

the 1993 Act;

general Directions given by the Charity Commission under section

ome to my attention.

nce with the general Directions given by the Charity Commission. An nting records kept by the charity and a comparison of the accounts es consideration of any unusual items or disclosures in the accounts, ees concerning any such matters. The procedures undertaken do not ired in an audit and consequently no opinion is given as to whether and the report is limited to those matters set out in the statement

t

yments accounts and the accounts show cash received in the year of ept to match the record of the donations received to the bankings banked. The only written record retained is a letter advising a grant enditure was made in cash from retained unbanked cash or via cash few receipts were kept. Aside from invoices for utilities and rent and olunteer or other expenses. Total cash spent amounted to £86,000 68 of payments without any supporting records.

r matter except that referred to in the above paragraph has come to s having not been maintained properly in accordance with section 41 believe that in any material respect the requirements to prepare records and comply with the accounting requirements of the 1993

be drawn in order to enable a proper understanding of the accounts

D REPORT - A MATTER TO BE REPORTED (NON-COMPANY

trustees of “ABC” Trust

year ended 30 April 2009, which are set out on pages 00 to 00.

xaminer

he preparation of the accounts. The charity’s trustees consider that section 43(2) of the Charities Act 1993 (the 1993 Act)) and that an

he 1993 Act; general Directions given by the Charity Commission under section me to my attention.

nce with the general Directions given by the Charity Commission. An nting records kept by the charity and a comparison of the accounts es consideration of any unusual items or disclosures in the accounts, ees concerning any such matters. The procedures undertaken do not ired in an audit and consequently no opinion is given as to whether and the report is limited to those matters set out in the statement

t tter has come to my attention which gives me reasonable cause to quirements:

ith section 41 of the 1993 Act; and accounting records and to comply with the accounting requirements

terial restricted grant of £x to the XXX partner organisation operating trustee took the funds over in US dollar currency in a suitcase and partner organisation. However the trustees were unable to explain e to provide evidence by way of receipt or letter of acknowledgment exists that the grant may have to be repaid because of the lack of use. n connection with my examination to which, in my opinion, attention understanding of the accounts to be reached.

REPORT – NOT COMPLIANT WITH SORP AND COMPANIES ACT

trustees of “WXY Charitable Company”

the year ended 30 April 2009, which are set out on pages 00 to 00.

xaminer

the company for the purposes of company law) are responsible for

the company for the purposes of company law) are responsible for es consider that an audit is not required for this year under section t) and that an independent examination is needed.

is not subject to audit under company law and is eligible for bility to:

he 1993 Act;

general Directions given by the Charity Commission under section

me to my attention.

nce with the general Directions given by the Charity Commission. An nting records kept by the charity and a comparison of the accounts es consideration of any unusual items or disclosures in the accounts, ees concerning any such matters. The procedures undertaken do not ired in an audit and consequently no opinion is given as to whether and the report is limited to those matters set out in the statement

t

pany law and are not consistent with the Charities SORP. A balance of a Statement of Financial Activities incorporating an income and account has been prepared. In neither the profit and loss account nor between unrestricted and restricted funds. The amount of restricted counts and relates to a public collection with balance of £x remaining

rom the matter referred above indicating that the accounts are not ments of section 396 of the Companies Act and with the methods and ed Practice: Accounting and Reporting by Charities, no matter has

believe that in any material respect the requirements to keep on 386 of the Companies Act 2006 have not been met; or

be drawn in order to enable a proper understanding of the accounts

ers - identifying matters of material significancenitions are quite simplistic and when in doubt the underlying uidance should be referred to .

ng matters of material significance

matters of material significance to the Commission is explained in x provides further advice, particularly for volunteer examiners, on mission. rts) Regulations 2005 (SI No.572).

and practices that specify how the effects of transactions and other ssion will always involve the use of judgement based on whether a ce to the Commission’s regulatory functions. In effect the examiner ough the recognition, measurement and presentation of assets, vements in funds. They are supplemented by estimation techniques he regulator’s perspective. This guidance is not meant as a checklist g the value of incoming and outgoing resources and assets and terial significance’ that may arise but as an aid to the examiner in evant and reliable and allow comparability and understandability of ortable. Remember the examiner is not expected to go looking for nts. do their best and to act reasonably and honestly when deciding if a

ue and fair view must conform to certain standards issued by the essor, the Accounting Standards Committee. These standards, with isolated administrative errors that do not pose risk to the charities ed to be familiar, comprise a number of “Statements of Standard ey are so frequent as to amount to misconduct or mismanagement. porting Standards” (FRS) and “Urgent Issues Taskforce abstracts”

a conclusion as to whether a matter is reportable can be a difficult o do not hold professional accountancy qualifications. ctions and other events to be reflected, as far as possible, in the , and not, for example, in the period in which any cash settlement is ner can consider to help reach a conclusion: tion of balance sheet assets and liabilities.

ounts prepared in accordance with the requirements of section 42(1) iner, significant concern? repared by the trustees to show a “true and fair view”. The accounts eed to investigate? ow about in order to regulate the sector? es or the public at significant risk?

matter falls within the ‘eight matters’ listed in section 11 of this ortable by the Commission. It can also be helpful to understand the estigates and summaries of completed inquiry cases can be viewed

miner is still unsure if the Commission would regard the matter as elpful to discuss the matter with us. The final decision of whether or is of accounting policies that enable the accounts to give a true and ing standards and the accounting concepts of going concern and r but we at the Commission are willing to discuss the matter with sion for you. It’s also important to remember that any telephone report to be submitted by the examiner if the matter is of material 7 of the 1993 Act and are the people who, under the charity’s

www.charitycommissio

the general control and management of the administration of the

ent they may be called trustees, managing trustees, committee ially reportable we recommend the examiner to record the key facts may be referred to by some other title. need to produce a body of evidence that proves a matter beyond fficient information to give a ‘reasonable cause to believe’ that the alysis and information which should be contained in accounts. d. This may mean the examiner may have to do some extra work to extent necessary to satisfy themselves there is a reasonable cause e accounts on the basis that it will continue in operational existence

rn basis applies to accounts prepared unless the charity has ceased

ember that they do not have a duty to look specifically for matters to liquidated or the trustees have no realistic alternative but to windes. as rigorous as an audit and the 2008 Regulations only require the ngs as part of their examination. The procedures for carrying out an y document setting out the charity’s purposes and, usually, how it is d explained in the guidance that follows each Direction. What the entified whilst acting as a charity’s examiner which is likely to be of eed, constitution, memorandum and articles of association, will, Commission, or other formal documents. The trusts of a charity are ocument(s) of the charity.

d involving a significant loss of, or a major risk to, charitable

or involving the charity should be reported even if the matter has y Part VI of the 1993 Act. It is a less onerous form of scrutiny than an in examination procedures may also highlight risks that should be n terms of the depth of work which is to be carried out and the ash drawing without adequate explanation, expenditure not for the nting records, significant failure to keep accounting records, the use work. An examination involves a review of the accounting records e accounts presented with those records. It also involves a review of unds or the unusual use of agents to make payments for the charity unusual items or disclosures identified. Verification and vouching d. Reviewing accounting records, comparing accounting records with e material concerns or doubts arise from procedures, and where nusual items may identify these matters. d from the trustee body

d from the trustee body. body of evidence to support a positive opinion on the accounts as uding failure(s) in charity governance, that resulted in a e examiner required to form an opinion as to whether the accounts f charitable funds, or which leads to significant charitable gh the examiner is not required to consider internal controls certain during the examination, for example, if accounting records are not tees from the independent examiner detailing the accounting hout authority, pre-signing of cheques, unusually high level of use of he statutory responsibilities of the independent examiner. It may also supported by receipts or without apparent business need or trustees , proposed timetables for the examination and details of any non-charity. These matters might be identified through the review of aminer. The purpose of the letter is to reduce misunderstanding and understanding of how the charity operates. eed in writing with the charity trustees.

uspicion that the charity or charitable funds have been used umstances into account, its inclusion or exclusion would be likely to e the proceeds of serious organised crime or that the charity nts as a whole or in relation to the context of which the items forms here a fee is charged, the examiner is likely to be providing an o the examiner should consider the Money Laundering Regulations fessional body. For volunteer examiners knowing when a suspicion is e reportable a suspicion should be based on some evidence, even if who has to express his or her professional opinion on the accounts. on that a charity may be involved in money laundering would not be is not possible to give a definitive list of the indicators of money counts prepared under section 42(3) of the 1993 Act. The accounts further consideration include:

nsaction;

entity of trustees;

harity to transfer those funds to a nominated party inside or outside he donor or a named third party; e, at a zero, low or commercial rate of interest, which the charity is ue and fair view”; instead they should provide a factual summary of o the donor or a third party; nd a statement providing information as to the charity’s assets and heque or bank transfer because they were ‘paid from the wrong

able deposits or transactions by other third parties or individuals; Accounting and Reporting by Charities, issued in March 2005. It sets the UK on behalf of a third party in return for a fee; pose of preparing the Trustees’ Annual Report and for preparing the ugh a series of bank accounts; ounting recommendations of the SORP do not apply to charities s without a clear investment purpose or rationale.

hat the charity, its trustees, employees or assets, have been m or proscribed organisations in the UK or outside of the UK – ead our Operational Guidance OG 96 Charities and Terrorism on our support of a particular organisation (in cash or otherwise) you can on on the Home Office website at www.homeoffice.gov.uk. Factors vity identified should also be considered.

charity carries out its work relating to the care and welfare of e been or were put at significant risk of abuse or mistreatment – The ector nor to attempt to interpret the physical, emotional or spiritual do not consider internal controls they will have general knowledge from trustees’ minutes, or they may become aware of a pattern of or example, identify information concerning legal action against the stigation or concern raised by another regulator or agency or that staff are not being carried out. Where concerns are identified our pful.

ither a legislative requirement or of the charity’s trusts - The rt and as previously stressed minor breaches of trustees’ obligations ot pose risk to the charities assets or reputation are not normally ed are large or recurring then this can indicate a concern about the e, activities could be unconnected with the purposes of the charity here might be large expenditure for a purpose clearly unconnected e requirements or an unwillingness to rectify a breach, for example, ervice as a trustee (trustees may claim proper expenses and may be than for their services as a trustee, provided the procedures set out ed in accruals accounts).

r or direction made by a charity regulator under statutory powers hibiti ti l t ti ti it ti t

ohibiting a particular transaction or activity or granting consent on able assets or liabilities – On occasions the Commission will use its reputation of a charity or a particular transaction will be subject to a mple, a suspended trustee is known to still be involved in the ing expended when assets are frozen or a significant transaction is to the consent given then this should be reported.

to the trustees on resigning as independent examiner or of on resignation or ceasing to act that falls within the e duty to report cannot be avoided by resigning as examiner. If a formation necessary for the examination or a concern arises of such to continue then the examiner should consider whether the matter ters identified above.

he Commission of matters which fall within the categories of matter ort. These serious incident reports are made by trustees either during to the Commission. It is the trustees’ responsibility to make these duty, but the examiner may find it helpful to ask the trustees if they report. If a serious incident report has been made by the trustees the a matter of material significance make their own report setting out happened and any action the trustees have taken or are taking to

aterial significance to the Commission, is provided in this appendix. matter which is not considered by the examiner to fall within the e the examiner has chosen to exercise the power or right to make a nt to the Commission’s functions.

uty to report a matter of material significance to the Charity eport follows )

n which relates to the example examiner’s report 4.5 in Appendix 4.

sample letters to comm

t to your attention concerning ABC Trust, charity number 1XXX700 with section 44A of the Charities Act 1993 to advise you of a matter o you in the exercise of your functions under section 8 or 18 of the

30 April 2009 was £242,876 and included a restricted grant given by ed project in country X to assist in the relief of poverty. During the at Mr CD, a trustee of the charity, travelled to country X on 10 e form of US dollars in a suitcase and gave these funds to Mr TZ of nor the other trustees have any receipt from Mr TZ nor do they have w the money was used.

o they say they have known for at least a year and believe that the e great benefit to the poor of countr X Follo ing m e amination

ve great benefit to the poor of country X. Following my examination orts from Mr TZ but have been advised that he is unavailable, having s date of return is uncertain. There is a concern that AB Donor Trust because the charity has insufficient records to demonstrate how the

ccounts I provided a qualified independent examiners report due to

of a matter likely to be relevant to the Charity Commission

Charity Commission concerning WWZ Trust, charity number 1XXX900

with section 44A of the Charities Act 1993 to advise you of a matter exercise of your functions under the Charities Act 1993.

nation of WWZ Trust I noted that the trustees had awarded a retiring £1,500 in recognition of his 40 years of trusteeship. The charity had yment and the trustees confirmed that they had not realised that the 000 at which prior Commission approval is required, is contrary to now contacted Charity Commission Direct to ask for your advice on

ccounts, I provided an unqualified independent examiner’s report as I did not consider further explanation in my examiner’s report was g of the accounts given the relatively small amount involved.

orts) Regulations 2008 No.629

and practices that specify how the effects of transactions and other ough the recognition, measurement and presentation of assets, vements in funds. They are supplemented by estimation techniques value of incoming and outgoing resources and assets and liabilities. reliable and allow comparability and understandability of financial

and fair view should conform to certain standards issued or adopted standards, with which professional accountants are expected to be nts of Standard Accounting Practice’ (SSAP), ‘Financial Reporting ce Abstracts’ (UITF abstracts).

ctions and other events to be reflected, as far as possible, in the , and not, for example, in the period in which any cash settlement is tion of balance sheet assets and liabilities.

nts prepared in accordance with the requirements of section 42(1) of epared by the trustees to show a ’true and fair view’. The accounts

is of accounting policies that enable the accounts to give a true and ing standards and the accounting concepts of going concern and

econciles the balance at the bank as at the statement date, with the g the closing bank balance for transactions, for example, cheques and bankings that have been made but not credited, effected on or

7 of the 1993 Act and are the people who, under the charity’s the general control and management of the administration of the ent they may be called trustees, managing trustees, committee may be referred to by some other title.

edger in manual or computer accounting systems and are used as a l and on occasions for cash. In the case of sales or purchase ledger h received or paid against invoices are posted to such accounts. The led to purchases invoiced but unpaid or sales invoices for which

he age of 18 who are responsible in law for the operations of the ectors which constitutes the decision making body and the Board is affairs. Directors have specific duties under company law and are of a charitable company are its directors.

und where trustees are legally required to invest or retain the capital. spent. Normally these funds will represent investments but may also use by the charity. There are two forms of endowment. Permanent not have the power to spend the capital. Expendable endowment is o spend the capital, under certain circumstances, in the same way as

ining whether a matter is of material significance to the Commission ormation or facts gathered by the examiner during the course of the lable include the accounts, the accounting records, the examiner’s n answer to questions, matters established through any verification arity’s other records, for example minutes of trustee meetings.

i

di l l i d i f i hi h h ld

quirements as to disclosures, analysis and information which should

n of fraud. Fraud can be committed by way of false representation, position where the intention is that the person committing the fraud from the fraud or cause another party loss as a result of the fraud.

e accounts on the basis that it will continue in operational existence ern basis applies to accounts prepared unless it is necessary, or the es, wind up or liquidate the charity.

y document setting out the charity’s purposes and, usually, how it is eed, constitution, memorandum and articles of association, will, Commission, or other formal document. The trusts of a charity are ocument(s) of the charity.

tees from the independent examiner detailing the accounting he statutory responsibilities of the independent examiner. It may also , proposed timetables for the examination and details of any nonaminer. The purpose of the letter is to reduce misunderstanding and eed in writing with the charity trustees.

er as to whether any information omitted or misstated would affect Materiality depends on the size, amount or importance of the item,

class of persons defined in the governing document as the members ets out the process for appointing and removing members, the role place membership has in the governance of the charity. Under e the initial subscribers of a company’s Memorandum on registration members and whose name is entered in the company’s register of f association of the company will set out the process for appointing sponsibilities of members and the place membership has in the

to apply or use money or assets owned by the charity dishonestly for

procedures, and means whether in any respect the accounts are item or aspect of the accounts that is factually incorrect, in error, or ould properly be included in the accounts .

----- Start of picture text -----
|||||||||||| |---|---|---|---|---|---|---|---|---|---|---| |accountancy term for the manual or computerised record which| |the period. The ledger contains the detailed history of all the| |a defined period of time from which a trial balance can be extracted| |harities may not maintain a nominal ledger but instead maintain an| |columnar form with income shown separately from expenditure.| |g by named employee, the gross salary paid, employers’ tax and| |employee related costs (eg healthcare plan costs or employer’s| |ontribution pensions), where applicable.| |eligible under the 1993 Act and is normally a registered auditor. The| |sional opinion as to whether the accounts are ‘true and fair’ in| |counts prepared under section 42(3) of the 1993 Act. The accounts| |ue and fair view’; instead they should provide a factual summary of| |nd a statement providing information as to the charity’s assets and| |e trustees are able to spend on particular purposes of the charity.| |ecific trusts which may be declared by the donor(s) or with their| |through a legal process, but are still within the wider objects of the| |Accounting and Reporting by Charities, issued in March 2005, sets| |rpose of preparing the Trustees’ Annual Report and for preparing| |s. The accounting recommendations of the SORP do not apply to| |ccounts.| |refers to the requirement in charity law for an audit to be carried out| |ssets exceed the relevant threshold by a person who is eligible for| |a person approved by the Commission in accordance with the 2008| |the closing balances on all of the separate individual accounts| |rds or computerised records.| |Secretary of State has the power to proscribe any organisation which| |sm’|An|organisation|is|‘concerned|in|terrorism’|if|it|commits|or|

----- End of picture text -----

sm’. An organisation is ‘concerned in terrorism’ if it commits or for terrorism, promotes or encourages terrorism, or is otherwise broad.

stees are able to spend at their discretion for any of the charity’s ain part of the unrestricted funds which the trustees have earmarked unds are called designated funds. Such designated funds are legally y may be reported separately in the balance sheet or notes, where t of unrestricted funds, where receipts and payments accounts are

rised records, such as notes of explanations received and schedules o record what they have done, what they have found, the questions ose questions. Working papers will include the examiner’s analytical be relevant to the examination. The examiner

nation of the directions and guidance as included

ut and who should read it?

of charities, charity law requires most charities to have an external y’s gross income is not more than £500,000, or where gross income more than £2.8 million, then charity law allows trustees to choose a scrutiny called an independent examination.

orm of scrutiny than an audit but it still provides trustees, funders, with an assurance that the accounts of the charity have been

with an assurance that the accounts of the charity have been financial years starting on or after 1 April 2008, independent ible small charitable companies. Also charitable companies with a e to have an examination for the first time.

her to have an independent examination instead of an audit and for xaminer. The first part of this guidance explains what trustees need nd what they must do and provides some recommendations to help and in particular the Honorary Treasurer, need to know what an e they opt to have an examination in place of an audit. By can have their accounting records, Annual Report, accounts and o complete their work in a timely way.

ctions and the appendices provide the essential information for the being paid a fee for their work, the role of the examiner is important ng out the examination and make a report to the trustees setting out d their examination. There is a process to be followed and this Directions, their reporting duties and provides practical advice at

eviewing receipts and payments accounts and so will not need to be independent examination, the examiner still needs a certain level of ns set out in this guidance and to set out their report in the way that income is more than £250,000 charity law requires the examiner to harities Act 1993 (the 1993 Act).

examiner needs to have an up to date understanding of accruals tatement of Recommended Practice: Accounting and Reporting by ORP. The law requires that the examiner has the requisite ability and nation and greater accountancy skills and knowledge will be needed

ead this guidance to find out what they must do to comply with the e content of their report, and for practical guidance about how to go

guidance apply?

s in the scrutiny (independent examination and audit) arrangements 006 Act) and the Charities (Accounts and Reports) Regulations 2008 lied to the examination of accounts of non-company charities and orated under company law for accounting periods beginning on or to company law are to sections of the Companies Act 2006 as they

e, what is an independent examination, the legal framework, ointing an examiner

pare an Annual Report and accounts

Accounting: The Essentials April 2008 (CC15a) to find out about the rt and options for preparing accounts and their external scrutiny. ion update form or Annual Return to be filed with the Commission.

companies registered with Companies House, can prepare either s accounts provided their gross income does not exceed £100,000. imple and flexible alternative to more complex accruals accounts. y an analysed record of the cash received and spent in the financial eld at the beginning and end of the year together with a schedule of nd known as a ‘Statement of Assets and Liabilities’. Our publication 16) provides a pro forma layout for the trustees’ annual report, the ment of assets and liabilities and the examiner’s report. There is also

ment of assets and liabilities and the examiner s report. There is also George’s Youth Club’ on our website.

ruals accounts as must all non-company charities with gross income ar. Charities preparing accruals accounts must generally do so in ered social landlords and higher and further education bodies have ad but the size of these organisations is usually such that they are ination.

of cash accounts plus debtors (money owed to the charity but not oney owed by the charity but not paid by the year end) because they assets, depreciation of fixed assets, provisions, the market valuation nal assets and other accounting adjustments and disclosures, for ements. Accruals accounting is a much more complex form of d follows the accounting rules set out by the Accounting Standards eted by the SORP for the charity sector. Charitable companies must nts of the Companies Act 2006.

the SORP offers a number of concessions and to assist smaller nonccruals Accounts Pack (CC17) provides pro forma layout for the miner’s report which when completed fully meets legal requirements. es, there are also several worked examples of accruals accounts on

by Part 6 of the 1993 Act and Section 43 of the 1993 Act allows mpler form of external scrutiny in place of an audit.

xternal check on the accounts and can be carried out by any person cept where the gross income exceeds £250,000, when only members t can undertake the examination. An examination is a less onerous less assurance in terms of the depth of work which is to be carried n the Directions and the content of the examiner’s report is set out in

d to confirm that no evidence has been found that suggests certain This form of ‘negative assurance’ is a more limited form of scrutiny. d so is not required to plan the work, for example, to identify fraud or ng in the charity.

accounting records kept by the charity and a comparison of the also involves a review of the accounts and the consideration of any important to note that verification and vouching procedures, where an original document such as an invoice or a receipt, only becomes identified from the work of the examiner, or where satisfactory ustees.

only required to provide a statement on specific matters that have xamination procedures specified in the Directions. This is a simpler tor is required to build up a body of evidence to support a positive articular, an auditor is required to form an opinion as to whether the

he accounts arises that the examiner considers important to the unresolved or other matters arise that must be included in the ttention, then consideration will be needed as to how this is reported which is of material significance to the Commission where we are (see Appendix 5) the examiner also has to make a separate report n to the examiner’s report attached to the accounts.

esholds for independent examination?

n are subject to review and this guidance will be updated in the event below were in place as at 1 April 2008. Gross income should be on’s guidance, as set out in Appendix 1.

ng periods commencing on or after 27 February 2007, and for mpany law with accounting periods commencing on or after 1 April

e gross income is more than £100,000 in the financial year. n the gross asset threshold of £2.8 million does not apply. The flow determining whether an individual charity is eligible for independent

ay normally opt for an independent examination unless the charity’s ere is normally no requirement for any independent scrutiny where £10,000 or less.

eeds £250,000 and the charity is not subject to statutory audit, the r the examiner to be a member of a listed body. These bodies are the ‘Selection of Examiners’ section of this guidance.

le companies for accounting periods commencing on or after 1 April atutory audit. Although charitable companies which are eligible for pt for an independent examination in place of a charity audit on the duty to maintain accounting records, and the form and contents of mpany law. The guidance refers to the Companies Act 2006 where

ependent examination?

ons governing the form and content of charity accounts, Trustees’ ditors and independent examiners. These requirements are set out in nting periods commencing on or after 1 April 2008. The 1993 Act tiny for the accounts of all but the smallest charities, but this will fall the majority of charities. The legal framework applies to all charities harities currently excepted from registration.

uty for independent examiners to make a written report to the eir examination, they become aware of a matter which relates to the connected institution, or body, and they have reasonable cause to erial to the Commission in the exercise of its inquiry functions. This ance on what must be reported and provides examples of how to set

Regulations apply to England and Wales only. Copies of the 1993 Act Public Sector Information’s website. The 2008 Regulations are also

quirements

ss income and gross assets are below the charity audit threshold, the trustees to consider before the examiner is appointed and starts

ncluding a requirement:

for an audit (although the trustees may be able to amend the

me, such as those relating to registered social landlords and NHS

nder or lender.

refer the higher level of assurance that it provides. Due to the extra pments in International Standards on Auditing, trustees need to be bly more expensive than an independent examination.

any law will have a memorandum and articles of association and the f the charity is a company then the examiner will need to be familiar ing requirements that apply to small companies. The trustees of ensuring that the content of the director’s report, which can mplies with the requirements of the Companies Act 2006.

mination? How to select your examiner

e Commission to issue guidance to charity trustees regarding the Trustees should read the following sections to ensure that they have rder to properly select and appoint their examiner. The prospective guidelines prior to accepting the appointment.

ensure that a competent examination takes place and they will f a prospective independent examiner.

section 43(3)(a) of the 1993 Act is “an independent person who is to have the requisite ability and practical experience to carry out a Once a charity’s gross income exceeds £250,000, the examiner must following bodies listed in the 1993 Act and should be allowed by the ndependent examiner:

d and Wales nd

nts s

ants nistrators countancy dent Examiners

ble remuneration to an independent examiner for their services and a competent examiner on a voluntary basis, should be prepared to oper cost of administering the charity.

ans that the examiner is not influenced, or perceived to be, by either es or by day to day involvement in the administration of the charity. dividual should have no connection with the charity trustees which xamination. An examiner cannot independently review his or her own s book-keeper cannot be the charity’s examiner. However this does er or supporter of the charity and often some involvement brings an amiliarity to the role of examiner.

is a member of the charity, for example a member of a church involved in the day-to-day decision making or administration of the mmittee or sub-committee convened by the charity, and are not normally they may act as an examiner, subject to their having the ion required. Also the right to take part or attendance as a member reclude the examiner from conducting an independent examination

tration of the charity through tabling resolutions would.

cts independence will depend upon the particular circumstances but onsidered to be independent:

s closely involved in the administration of the charity;

he charity; or

brother or sister, spouse, civil partner, business partner or employee h (a) or (b) above.

es Bill which led to the 1993 Act, it was stated that “an independent r the task that he is to do and he must be familiar with accounting accountant. We have in mind ... people such as bank or building s or retired accountants. They would all be suitable as independent

s required will depend upon whether the accounts are prepared on a basis, and the size and nature of the charity’s transactions.

es preparing their accounts on an accruals basis should consider of the accountancy bodies listed in the 1993 Act, or similarly skilled erstanding of accountancy principles, accounting standards and

ome below £100,000 and, unless constituted as a company under receipts and payments accounts. This form of accounting is very native to accruals accounts that fully meets the legal requirements of g standards and the SORP is not required to examine receipts and

ful, where receipts and payments accounts are prepared, any person ls should be competent to act as an independent examiner provided ance and apply it when reviewing a set of receipts and payments

s or accruals accounts are prepared, the examiner needs some es including the different types of income funds (unrestricted and nd expendable endowment), the nature of trusts, the responsibilities verning document. For more information about the duties of trustees e: What you need to know (CC3) concerning the duties of trustees.

hich is often registered as a company under company law and carries profits made can be Gift Aided to the charity. Unless the aggregate ncome of the charity together with that of any subsidiaries (after ed the statutory threshold of £500,000 there is no requirement to gate gross income exceeds £500,000 the group accounts must be

his threshold then they would be non-statutory accounts and any n a voluntary basis and not covered by the Directions or guidance rinciples could be applied by a contractual arrangement between the ation on group accounts please refer to the relevant section of the shold to Charity Reporting and Accounting: The Essentials April 2008

ves that prospective examiners have practical experience relevant to that person having:

on of a charity of a similar nature; or ner on previous occasions for such charities; or y or commerce.

mmend that the trustees should ask the prospective examiner to

from the charity and its trustees;

t they believe they have the necessary ability and experience to f the SORP;

ple, a practising certificate) of their own professional body to act as

an examiner to give details of their experience, accreditation, or nt where the examiner has to be a member of a body listed in the als basis are being examined.

mail, letter, or where a fee is charged in the engagement letter, the roper regard to the requirement to select an examiner with “requisite he examiner is charging a fee the trustees should be notified by a sis on which the examiner has agreed to act. These terms of , the examiner’s statutory duties.

essional accountancy qualification, the trustees must always appoint the charity and the trustees should ensure that the Commission’s quired of the examiner for accruals accounts has been followed.

h the prospective examiner the work of the charity and their prospective independent examiner has a copy of this guidance and is rections to independent examiners and understands the duty to

Where accruals accounts are prepared under section 42(1) of the Act sant with the 2008 Regulations as to the form and content of those

examiner should also be aware of the accounting requirement of the ontent of those accounts in addition to having familiarity with the

s and gain suitable assurances from prospective examiners, and from have taken all reasonable steps to appoint an examiner with the etent independent examination of their accounts.

conducted with reasonable skill and care in accordance with the

port and accounts

s £10,000 charities must file their report and accounts with the or ensuring that their Trustees’ Annual Report and accounts, together submitted to the Commission within 10 months of the financial year uld note that the filing with Companies House is required within 9 i nd it convenient to file with the Commission at the same time.

r completion of the examination with the examiner. The Trustees’ ecords and information should be provided to the examiner early mpleted and for the accounts to be approved by the trustees before

ner to deal with filing then this should be agreed in writing with the e filing is likely to be late the trustees should alert the Commission g out the circumstances, the action the trustees are taking, and the

ed, what do I have to do and what do I do once I have finished my

the nature of their role and are satisfied before they start that they o undertake a competent examination. It is important for examiners p is to read the first section of this guidance which sets out what the an independent examination is and what the thresholds are for

mmended to check whether they are required to hold a practising her charging a fee or acting as a volunteer. The requirements of each ents for a practising certificate and professional indemnity insurance.

so be aware that they are considered to be providing accountancy nd comply with the Money Laundering Regulations and the provisions rovisions apply to anyone who carries out accountancy services for a ody or not. The Commission is not the regulator for this area of law; ppendix 7.

Regulations

andatory and apply to examinations of both registered charities and egistration. The 2008 Regulations and Directions ensure that the endent examiner’s report and the processes examiners follow are de by the Charity Commission under powers given in the 1993 Act. To n is followed by additional explanatory guidance setting out what to on is not mandatory but is recommended to help ensure examiners

miners understand what is involved in undertaking an examination, o report. It is recommended that examiners take some time to read t examination.

d their report provides assurance about certain specific matters and draw the attention of the reader of the accounts any matters of dressed to the trustees, must contain all the information required by

quirements of the 2008 Regulations. The example examiner’s reports and the examiner can develop their own wording provided the report gulations. The specific reporting duties of the independent examiner gulations. Direction 10 and related guidance sets out what needs to

charitable company incorporated under company law is different to ust also consider the accounting requirements of the Companies Act mpany will therefore need some understanding of the additional s.

e group accounts on a voluntary basis these will be non-statutory sed on agreement between the charity and the examiner rather than velop their own form of report based on the work undertaken. Any quires a high level of accountancy skill including an understanding of rinciples. Where group accounts are required by law because the £500,000 then independent examination is not an option as such

firms a number of factual matters that assure the reader that the on and that the examiner has followed the Directions. In particular:

by the accounts; examination as opposed to an audit;

ns;

ticular matters set out in the 2008 Regulations have come to their

helps the reader of the report to understand what the examination

sation to have an independent examination instead of an audit, the

vant professional qualification held and, if the charity’s gross income ich enables them to act as the examiner.

her or not particular matters were identified during the examination. on whether the accounts give a ‘true and fair’ view; rather the has come to attention to indicate that:

ept, or in the case of a charitable company that adequate accounting

s;

als basis they fail to comply with relevant accounting requirements le company with section 396 of the Companies Act 2006 or are not

should be drawn to the attention of the reader to gain a proper de:

he trusts of the charit

he trusts of the charity;

d explanations to which the examiner is entitled; and

ccruals basis are materially inconsistent with the Trustees’ Annual any the directors’ report.

he examiner in their own name. Whilst the name of a partnership or f an examiner relates to the individual rather than the partnership or made to the Commission, it may be an image of the original or be a

dgement in carrying out their work and in accessing the information guidance uses terms material, significant and material significance r to understand as these terms will inform an examiners judgement rting duties. These are explained in more detail below.

dgement by the examiner as to whether any information omitted or tanding of the accounts. Materiality depends on the size, amount or ent. An accounting policy is sometimes described as material where nsaction is recognised, measured or disclosed in accounts. Where a e examiner has to consider whether the effect of that policy when unts is so material as to affect the presentation or understanding of

ection with accruals accounts and requires the examiner to look at olicies, or basis for amounts that are material in the context of the

this guidance in connection with the keeping of accounting records, miner and in describing the considerations that affect the examiner’s ds, significance is the extent to which the records found are not information creates doubt about the adequacy of record keeping. s the examiner to think about whether a matter or an amount is e to require explanation. For the report, it is whether a finding that significant enough to need inclusion in the examiner’s report. Small ficant but can become significant if their occurrence is frequent or assessed when the examiner has either carried out the analytical flecting about what has been found and is preparing the report. A terial in term of its amount alone.

term used in the statutory definition of the duty to report matters of his requires an understanding of those matters that are of material he Commission. Those matters that the Commission always consider guidance with further guidance provided in Appendix 5.

on of the examiner?

ave read this guidance and followed the 10 Directions to the best of eport honestly. The Commission expects the examiner when carrying material significance which they are also under a duty to report.

aminers, who are not charging a fee, are giving their time freely for concern arising about the adequacy of an independent examination on will take into account the nature of the voluntary role and be ering any failure in the examination process provided the examiner t with the view the Courts take of volunteers who act as trustees who

eceiving payment they are providing accountancy services and we ofessional standard and our expectation is that a paid examiner:

----- Start of picture text -----
|||||| |---|---|---|---|---| |ofessional standard and our expectation is that a paid examiner:| |wledge, including familiarity with the SORP where accruals accounts| |the Directions; and| |y and experience, to fulfil their statutory duty to report matters of| |£250,000 in England and Wales the examiner must be a member of| |t. In setting this threshold Parliament recognised the higher level of| |g these larger charities. Consequently whether paid or not, the| |these larger charities to have been carried out to a professional| |ner:| |wledge, including familiarity with the SORP;| |the Directions; and| |, experience and qualification, to fulfil their statutory duty to report| |mission.| |tions| |mission of the examiner?|de the procedural basis or framework to define how the reporting| |are 10 specific Dave read this gu dance and follow|i|rections that the|e|d the 10 Directions to the best ofxaminer must address in carrying| |d 7 Directions applying to the examination of receeport honestly. The Commission expects the exam ner when carrying|i|pts and payments| |material significancd consider if matt|e|rs of material significance have come to their which they are also under a duty to report.| |eport to the Commission.| |aminers, who are not charging a fee, are giving their time freely for| |concern arising about the adequacy of an independent examination| |on will take into account the nature of the voluntary role and be| |ering any failure in the examination process provided the examiner| |t with the view the Courts take of volunteers who act as trustees who| |eceiving payment they are providing accountancy services and we| |ofessional standard and our expectation is that a paid examiner:| |wledge, including familiarity with the SORP where accruals accounts| |the Directions; and| |y and experience, to fulfil their statutory duty to report matters of| |£250,000 in England and Wales the examiner must be a member of| |t. In setting this threshold Parliament recognised the higher level of| |g these larger charities. Consequently whether paid or not, the| |these larger charities to have been carried out to a professional| |ner:| |wledge, including familiarity with the SORP;| |the Directions; and| |, experience and qualification, to fulfil their statutory duty to report| |mission.| |Directions| |de the procedural basis or framework to define how the reporting| |are 10 specific Directions that the examiner must address in carrying| |d 7 Directions applying to the examination of receipts and payments| |d consider if matters of material significance have come to their| |eport to the Commission.| |red on an accruals basis are required to review the Trustees’ Annual| |examiners of receipts and payments accounts may still find the| |ng their examination.|

----- End of picture text -----

ers of accounts and the independent examiner ons, designed to specifically to assist in the preparation of accounts, nd other publications that may be of particular help to the examiner

onsist of ents

e 10 Directions;

ise to a legal duty to make a report to the Commission; and ethods which will help examiners to meet the requirements of the

e reproduced in bold print, with explanatory guidance set out in light mples given and procedures suggested cannot meet all circumstances on and judgment will need to be exercised by all examiners in the

Act 1993 in the Directions and guidance which follow are to sections es Act 2006. The references provided to company law are to sections om 6 April 2008.

rial significance to the Charity Commission

red on an accruals basis are required to review the Trustees’ Annual examiners of receipts and payments accounts may still find the ng their examination.

of accounts and the independent examiner

ons, designed to specifically to assist in the preparation of accounts, nd other publications that may be of particular help to the examiner

e 10 Directions;

ise to a legal duty to make a report to the Commission; and ethods which will help examiners to meet the requirements of the

e reproduced in bold print, with explanatory guidance set out in light mples given and procedures suggested cannot meet all circumstances on and judgment will need to be exercised by all examiners in the

Act 1993 in the Directions and guidance which follow are to sections es Act 2006. The references provided to company law are to sections om 6 April 2008.

0 From 1 April 2020 To 31 March 2021

Reviewed by

ndent Examiner's checklist

10

LY - Not Scotland

for a wealth of external resources Links to external resources page

Links to other parts of the accounts production file

Tab to the relevant Excel worksheets in this template 000 and £250,000. If the gross income was over £250,000 in Links Links to external resources page TB Trial Balance entry Data Data sheet some time in late 2007 Cover Front page of accounts, the reporting accounts procedure or elow change it to £500,000 Contents Contents page of acs Director Trustees Report xceed £2.8 Audit ~~million~~ Independent Examiner's Report PL Statement of Financial Activities & I&E ac BS Balance Sheet nder the Co CF ~~mpanies Act (section 2~~ Cash Flow Statement 49) and under professional Notes Notes to the accounts DetailPL2 Detailed schedule to the SOFA Appendix Activity analyses per the SORP orting Acco Library untantStandard texts and explanations's Reports). The exemptions are highlighted Disclosure Disclosure checklist History Details of amendments to templates CFworking Internal workings for cash fow Workings Internal workings for acs CC31 Independent Examination directions 2008 Or for charities in Scotland - see OSCR guidance

come

ity for independent examination gland & Wales also operating in Scotland reports of material signifcance ters to Commission under Appendix 5

reference to file documentation

applies to all forms of account

xceeds £250,000, then the Charities Act 2006 rofessional' independent examination must be Examiner must hold one of the following d meet whatever practisiing certificate mposed by the relevant body:-

tered Accountants in England and Wales tered Accountants of Scotland tered Accountants in Ireland hartered Certified Accountants uthorised Public Accountants counting Technicians ternational Accountants te of Management Accountants tered Secretaries and Administrators te of Public Finance and Accountancy; or ssociation of Charity Independent Examiners.

oves the “2 year rule” requirement. This rule n if the charity’s income (and expenditure) was hreshold in the current year, it must have its if its income or expenditure exceeded the mination threshold in either of the two preceding The old rule appplies to accounting periods e 27th February 2007

come

reference to file documentation of account

of material signifcance ters to Commission under Appendix 5

reference to file documentation

applies to all forms of account

of material signifcance ters to Commission under Appendix 5

reference to file documentation

applies to all forms of account

reference to file documentation of account

reference to file documentation

applies to all forms of account

reference to file documentation applies to accruals accounts - not to receipts and payments accounts

reference to file documentation

accounts - not to nts accounts

reference to file documentation

accrual accounts, ts and payments xaminer may find ful guide identify major - this differs udit requirement at the report is the acs

main menu

reference to file documentation

all forms of account

main menu

et in this template if correctly utilised should rt that :-

h these directions and guidance for unqualified

with all current professional guidelines and good practice in relation to the matters to be port

modification for qualified reports in accordance elines and the examples shown in Appendix 4

reference to file documentation of account

ss income' is not the same as ncludes the notional value of rvices provided in kind, for no or at a discount, ecluding ded by volunteers.

cy fees provided at less than a would be grossed up and gross income and in Similarly with rooms provided authority etc etc

often overlooked and can have for a number of threshold

et in this template if correctly utilised should rt that :-

h these directions and guidance for unqualified

with all current professional guidelines and good practice in relation to the matters to be port

modification for qualified reports in accordance elines and examples

I

n.gov.uk/investigations/inquiryreports/inqreps.asp

ission

Template h

Version 11 Company Type Method Version Copyright Cleared

Sep 1999 Sep 1999 Sep 1999 Sep 1999 Sep 1999 Sep 1999 Feb 2000 Feb 2000 Feb 2000 Oct 2000 Oct 10/01 Mar 2002 May 2002

History document1621710332608186567.xlsx 371 02/01/2022

Dec 2002 November 20 05/05

11/06 12/06

History document1621710332608186567.xlsx 372 02/01/2022

01/07

02/07 06/07

06/08

07/08 05/08 05/09 10/09 12/09

03/10

History document1621710332608186567.xlsx 373 02/01/2022

11/10

History document1621710332608186567.xlsx 374 02/01/2022

istory - Type Charities

Change

HAWA

Small company adopting the Financial Reporting Standard for Smaller Entities (effective March 2000)

Trial balance to be entered manually Version 5 - October 2000

VT Software Limited 1995-2000

Notes/ Comments/ Outstanding points

For advice on using this workbook, click on the Template Instructions button at the righthand end of the VT toolbar, choose the VT Final Accounts Help Topics command from the Help menu, or refer to the printed user guide.

The words applicable to small companies are no longer required in the audit opinion and have been removed

Exceptional year 2000 software modification costs added to the Operating profit note

Exceptional costs associated with introducing the Euro added to the Operating profit note

The words applicable to small companies are no longer required in the audit opinion and have been removed

Exceptional year 2000 software modification costs added to the Operating profit note

Exceptional costs associated with introducing the Euro added to the Operating profit note

The words (effective March 2000) have been added to the reference to the FRSSE in the audit report

The words and in accordance with the Financial Reporting Standard for Smaller Entities (effective March 2000) have been added to the Accounting Policies note in both the full and the abbreviated accounts.

The reference to the FRSSE at the foot of the full balance sheet has been removed

No changes

Revised for dividends ac

Revised to incorporate the requirements of the SORP 2001

Revision to treatment of capital reserves to comply with requirements of the Charity Commissioners that all funds should be carried forward on the SOFA

Further analysis available between restricted and unrestricted funds in the balance sheet including revaluation reserve and capital reserve

Inclusion of schedule of grants made and investment income received in detailed P&L

Inclusion of designated funds

History document1621710332608186567.xlsx 375 02/01/2022

Inclusion of a statement of total recognised gains

Inclusion of detailed reconciliation of all funds to balance sheet

Inclusion of suggested wordings in the trustees report that can be edited or selected to meet appropriate circumstances. These have been extracted from real life situations, but with all items that might identify the charity deleted.

Certain headings in the trustees report have been expanded . The method of election of trustees has been added to comply with recent SORP requirements

Examples of common situations have been given in the trustees report

Those items in the trustees report that are only mandatory in certain circumstances can now be autohidden. Those that are always mandatory cannot be so hidden

Comments have been added in the trustees report highlighting mandatory matters of disclosure. These can be edited out

A new section showing trustees in office at the date the accounts are approved has been added to comply with the SORP

A new section has been added to the trustees' report detailing adequacy of funds

Minor changes have been made to the text of trustees responsibilities, and a specific declaration of compliance has been added

Intangible incoming resources have been provided for to cover such items as seconded salaries

Gains on disposals of fixed assets is now included above the line as other incoming resources. If there are losses this line will have to be cut and pasted into the expenditure section

The option under the SORP has been taken to include an additional line in the SOFA for 'net incoming resources available for charitable applications'

The accounting policy notes have been adapted to cover a number of common situations, and can be modified to meet particular situations by editing. Care should be taken when editing as certain phrases are mandatory

New accounting policy notes have been added to cover fund structures polices, investment policies,pension contributions,foreign exchange gains and losses, exceptional items , unrealised and realised gains, stocks and work in progress,charitable expenditure, investment property,inalienable assets and investments.

The note about indemnity insurance for trustees has been reworded

The notes relating to deferred funds and to third party funds have been laid out in a different manner consistent with corporate charity requirements

National insurance contributions have been analysed out in the staff note

The pensions disclosure relating to employees has been developed

History document1621710332608186567.xlsx 376 02/01/2022

The explicit negative statements relating to no trustees' remuneration and expenses have been included

There is now an analysis of assets and liabilities by type of fund

The headings on the fixed asset note have been expanded. If material the SORP requires analysis between fixtures,fittings and equipment on the one hand and plant and machinery and vehicles on the other. It may be necessary to amend the headings of the columns to meet particular circumstances

The fixed asset note has been modified to include the requirements of paras 223 and 230 of the SORP

The investment note has been expanded and has been more automated than before However, there are specific situations not covered by the standard note and reference should be made to the SORP

Amounts due from subsidiary and associated undertakings can now be accommodated

within the debtors and creditors notes, but manual entry will have to be made to extract the figure from debtors or creditors

Reminder re disclosure of security is given under the loans note

This Charities Statement of Recommended Practice (SORP) is applicable to all accounting per Depreciation of fixed assets now appears by default under charitable expenditure.beginning on or after 1 April 2005. Early adoption is encouraged. Any depreciation other than charitable expenditure ( not common) will have to be manually entered

The statement of trustees' responsibilities has now been amended to comply with the suggested form in Practice Note 11 The Audit of Charities issued by the APB

Certain items on the data sheet have been eliminated as they are redundant as the information is also entered via the Trial Balance

Accounting policy notes modified to improve disclosure re para 36A Sch CA1985

Audit report modified to comply with present best practice

003 updates made to disclosures in notes to comply with developing practice

Revised to incorporate the requirements of the SORP 2005 Revised to include specific references to the SORP when relevant Extracts from the SORP are included in the SORP worksheet

Greater use of text boxes, particularly in the trustees' report to facilitate editing Greater use of flags such as 'INSERT ' to indicate where data should be input

Autohidden advisory notes to indicate the statutory source and explanation of disclosure requirements that can be used as a disclosure checklist.

Approval' and 'Review' boxes attached to the autohidden advisory notes Revised to comply with the 2005 FRSSE

Links to various web based technical resources

This involved a major rewrite to meet the objectives as stated by the Charity Commission in their statement on the SORP ( see SORP worksheet)

correct error in formula of movement of funds note

Library of standard texts updated

History document1621710332608186567.xlsx 377 02/01/2022

adjustments made to improve the autohide facility

adjustments made to the audit reports to comply with best practice

Library of sample texts extended and hyperlinks to it improved

correct error in formula of movement of funds note

Revisions to wording of reports etc

corrections to a reported error on the autohide on the investment note

Incorporated compilation report template converted to independent examination Updated for the Charities Act 2006 Updated for the Companies Act 2006 Updated for the FRSSE 2007 Updated for the SORP 2005 revision in 2008 Layout of detailed schedule to SOFA improved The above changes cover the transitional period from the old legislation to the new and will be further revised when the transitional period has ended

Modify the Examiner's Report to comply with Reg 31 of the 2008 Regulations Correct error on reporting of legacies received correct the transfer of comparative figures change to the accounting policy note on the statutory basis of accounts preparation change to the description of incoming resources under accounting policies reference to irrecoverable VAT included in expenditure accounting policy minor change to the reference to the FRSSE and FRS1 add automatic cross cast to the movements of funds note

Updated to include all aspects of CC31 June 2008 Directions and Guidance from the Charity Commission Layout of detailed schedule to SOFA modified Links to external resources updated Complying with the new 'public benefit requirement' in the trustees' report Disclosure checklist updated Update to include the modifications to the SORP in June 2008 Changed the wordings of the balance sheet information to reflect Companies Act 2006 changes which apply to accounting poeriods commencing on or after 6th April 2008

Updated with new thresholds for accounting periods ending on or after 06/04/09 Greater clarity on disclosures on trustees' report Revised exemption limits

Company number inserted in Balance Sheet in anticipation of new regulations

Statement of directors' responsibilities 1985 changed to 2006 and the word proper changed to adequate

All transitional information between old and new legislation removed Help system improved to allow all SORP and legal material to be viewed via comments Formal reports updated to accord with latest requirements

Correcting error in inclusion of professional fees in Detailed summary as notified to us by a user

History document1621710332608186567.xlsx 378 02/01/2022

Revision of the guidance on audit exemption

Updated throughout for the Guidance to Scottish Charities issued by OSCR Updated the Guidance covered in CC31 and CC32 Update the guidance for the trustees report Updated the external links page

Made minor textual alterations to the statutory reports The Home Page instructions were updated Updated the Examiner's reports Altered the 'look' of many elements without changing the substance

History document1621710332608186567.xlsx 379 02/01/2022

Check the Links page for a wealth of external resources Links to external resources page

	Links to	other parts of the accounts produc
	Tab to the relevant Excel worksheets in this template
	Links	Links to external resources page
	TB	Trial Balance entry
	Data	Data sheet
	Cover	Front page of accounts
	Contents	Contents page of acs
	Director	Trustees Report
	Audit	Independent Examiner's Report
	PL	Statement of Financial Activities & I&E ac
	BS	Balance Sheet
	CF	Cash Flow Statement
	Notes	Notes to the accounts
	DetailPL2	Detailed schedule to the SOFA
	Appendix	Activity analyses per the SORP
	Library	Standard texts and explanations
	Disclosure Disclosure checklist
	History	Details of amendments to templates
	CFworking Internal workings for cash fow
	Workings	Internal workings for acs
	CC31	Independent Examination directions 2008
	Or for charities in Scotland-see OSCR guidance

History document1621710332608186567.xlsx 380 02/01/2022

riods

History document1621710332608186567.xlsx 381 02/01/2022

ction file

History document1621710332608186567.xlsx 382 02/01/2022

HAWA

Workings at 31 March 2021

Normally no entries should be made to these pages as the integrity of the d Intangible fixed assets previous years £ Goodwill:

Cost B/fwd Additions Disposals C/fwd Amortisation B/fwd Provided during the year On disposals C/fwd Net book value Net book value b/fwd per current year trial balance	- - -
	-
	- - -
	-
	-
	-

The workings below form the basis for the Fixed asset note. Whenever AutoHide is tu or off the appropriate columns below are re-copied to the Notes sheet. Tangible fixed assets

Cost At 1 April 2020 Additions Disposals Surplus on revaluation At 31 March 2021 Depreciation At 1 April 2020 On disposals Surplus on revaluation Charge for the year At 31 March 2021 Net book value At 1 April 2020 At 31 March 2021	£ - - - - - - - - - - - - Freehold Land and buildings	£ - - - - - - - - - - - - Leasehold Land and Buildings	£ - - - - Plant, Machinery & Vehicles
			-
			- - - -
			-
			-
			-

Tangible fixed assets previous year

383

Cost At 1 April 2020 Additions Surplus on revaluation Disposals At 31 March 2021 Depreciation At 1 April 2020 Charge for the year Surplus on revaluation On disposals At 31 March 2021 Net book value	£ - - - - - - - - - - - Land and buildings	£ - - - - - - - - - - - Leasehold Land and Buildings	£ - - - - Plant, Machinery & Vehicles
			-
			- - - -
			-
			-

The workings below form the basis for the Investments note. Whenever AutoHide is or off the appropriate columns below are re-copied to the Notes sheet. Investments

Cost At 1 April 2020 Additions Disposals At 31 March 2021	Listed # Unlisted Investments#Investments £ £ - - - - - - - -	Listed # Unlisted Investments#Investments £ £ - - - - - - - -
		-

Investments previous year

Cost B/fwd Additions Disposals C/fwd	Listed # Unlisted Investments#Investments £ £ - - - - - - - -	Listed # Unlisted Investments#Investments £ £ - - - - - - - -
		-

384

data in the accounts may be affected

urned on

Total £ - - - - - - - - - - - -

385

Total £ - - - - - - - - - - -

turned on

Total £ - - - -

Total £ - - - -

386