Charities Regulatory Developments & SORP Reporting Features

Charities Regulatory Developments and SORP Reporting Features, July 2018

Proposed new SORP-making body from 1 January 2019

The Northern Ireland and Republic of Ireland charity regulators are to be included in a new charity sector SORP-making body. The four charity regulators of the UK and Ireland will for the first time work together to develop the charity accounting framework for use across all four law jurisdictions. This is a very welcome development and hopefully will lead to a more streamlined reporting structure for the sector

The Financial Reporting Council (FRC) has approved the addition of the Charity Commission for Northern Ireland and the Charities Regulatory Authority (CRA) for the Republic of Ireland as joint members of the SORP-making body with the Charity Commission for England and Wales (CCEW) and the Scottish Charity Regulator (OSCR). The inclusion of the CRA is subject to the SORP being formally adopted by way of regulation in the Republic of Ireland.

The regulators will begin developing the new SORP from 1 January 2019.

Main Features of SORP Annual Trustee Report, Financial Reporting and Disclosures

Compliance Statement

  • For a charity to state that it has prepared its accounts in accordance with the SORP it must adhere to the SORP requirements for the preparation of both the accounts and trustees’ report

Charity specific requirements

  • Trustees’ annual report
  • Fund accounting disclosures
  • Format of statement of financial activities (Income and expenditure)
  • Additional disclosures aimed at providing a high level of accountability and transparency to donors, funders, financial supporters and other stakeholders

Principal contents of the trustees’ report:

  • Objectives and activities, Achievements and performance
  • Financial review and comment on Reserves Policy
  • Structure, governance and management, Reference and administrative details
  • Exemptions from disclosures (if any)
  • Each Charity is unique and therefore the trustees’ report must reflect this
  • This is a very important document that helps in communicating with all stakeholders and needs careful attention and input by the trustees as well as management.

Relate Software will have a fully compliant product available for you in good time for the new requirements.