Recent changes for charities include around model accounts and audit/examiner reporting requirements.

Model accounts

The Charity Commission has updated its accounts pack for charitable companies.

CC17 Charity accounting templates: accruals accounts (CC17) SORP FRS 102 for charitable companies provides templates, suggested notes and explanation of the accounts and they have been updated for Update Bulletin 1 which applies for accounting periods beginning after 1 January 2016.

Matters for reporting by auditors and examiners

The Charity Regulators (Office of the Scottish Charity Regulator (OSCR), the Charity Commission for England and Wales (CCEW) and the Charity Commission for Northern Ireland (CCNI)) have listened and responded positively to the comments received on the consultation they undertook – Reporting matters of material significance to a UK charity regulator: Revised guidance for auditors and independent examiners.

The result is that they have made significant alterations to the proposed changes, removed several matters of material significance, amended or clarified some wording and reverted to the original wording in one matter of material significance, being ‘Matters suggesting dishonesty or fraud involving a significant loss of, or a major risk to, charitable funds or assets’.

The new list of nine matters of material significance includes two (matters 8 and 9) that need to be reported:

  • If an auditor has concerns regarding a charity’s accounts and issues a modified audit opinion report or qualified independent examiner’s report.
  • Where an auditor has concerns that conflicts of interests or related party transactions have not been properly managed or declared.

The changes apply for accounting periods beginning after 1 May 2017. This and earlier guidance can be found here

Article from ACCA In Practice