charities working across borders · charities working across borders • framework for accounting...
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PRECISE. PROVEN. PERFORMANCE.
Charities Working Across Borders
6th February 2018
Rosemary Peters Gallagher
Partner
MS(NI) LLP 2018
Moore Stephens (NI) LLP
Whilst every care has been taken to ensure the accuracy of the content of this presentation, no responsibility for loss occasioned to any person acting or refraining from action as a result of the material in this presentation can
be accepted by Moore Stephens(NI) LLP
MS(NI) LLP 2018
Charities Working Across Borders
Contents
• Current accounting and reporting requirements
• Similarities and Differences
• Gift Aid / Charitable Donation Scheme
• Charities and trading – the pitfalls
• Latest Developments
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NI ROI
Charities Act (NI) 2008 and
Charities Act (NI) 2013Charities Act 2009
Companies Act 2006 Companies Act 2014
The Charities (Accounts and
Reports) Regulations (NI) 2015
Charities Working Across Borders
MS(NI) LLP 2018
Charities Working Across Borders
• Framework for accounting and reporting provided in
part 8 of the Charities Act (NI) 2008
➢ Supporting regulations which provide detail such as:
• Provisions for determining the financial years of a charity
• The form and contents of statements of account (including notes, and the
methods and principles for their preparation)
• The form and content of group accounts
• The duties of an auditor or independent examiner and the content of their
reports
• Auditors’ and examiners’ rights of access to records, information and
explanations
• Dispensation from audit requirements
• The content of the trustees’ annual report
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SORPs have been developed for:
• General charities;
• Special case charities:
- Charities which are registered housing associations, which will use the SORP for registered social housing providers
- Charities which are further education or higher education institutions, which will use the SORP for further and higher education
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Charities Working Across Borders
Gross Income Presentation of accounts External Scrutiny
Up to £250,000
Statement of accounts (unless
trustees elect to use receipts
and payments basis)
TAR and annual monitoring
return
Independent examination
Over £250,000 up
to £500,000
Statement of accounts
including TAR and annual
monitoring return
Independent examination
by qualified person
Over £500,000 Statement of accounts
including TAR and annual
monitoring return
Audit
Thresholds for accounting periods
beginning on or after 01/01/2016 (NI)
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Gross Income Presentation of accounts External Scrutiny
Up to 10,000 euro
Profit & Loss Account (or I & E
Accounts and statement of
assets and liabilities) optional
10,001 to 100,000
euro
Profit & Loss Account (or I & E
Account and statement of
assets and liabilities) required
Over 100,001 euro
Full set of audited accounts
Audit
Annual Reporting Requirements (ROI)
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Charities Working Across Borders
Content of Trustees
Report
Objectives and activities
Achievements and performance
Financial review
Plans for future periods
Structure, governance and
management
Reference and administrative
details
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Unrestricted
funds
Restricted
funds
Endowment
funds
Total
funds
Prior
period
total
funds
Further
details
Income and Endowments from:
Donations and legacies A1
Charitable activities A2
Other trading activities A3
Investments A4
Other A5
Total
Expenditure on:
Raising funds B1
Charitable activities B2
Other B3
Total
Net income / (expenditure)
Transfers between funds C
SOFA
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Unrestricted
funds
Restricted
funds
Endowment
funds
Total
funds
Prior
period
total
funds
Further
details
Income and Endowments from: (Continued)
Other recognised gains/(losses)
Gains/(losses) on revaluation of
fixed assets
D1
Gains/(losses) on investment
assets
D2
Actuarial gains/(losses) on defined
benefit pension schemes
D3
Net movement in funds
Reconciliation of funds: E
Total funds brought forward
Total funds carried forward
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SOFA Continued………
Charity governing document
• Understand what the charity is set up to do – its purposes
• What powers it has
• Membership (if relevant)– Who can be members;
• Rules about meetings
• The role of the officers
• How to change the governing documents
• Who can vote
• Other laws and regulations eg Charity Law, Company Law, Health andSafety, Employment Law, Tax Law, Protection of the vulnerable, PublicLiability. etc, etc….
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Charities Working Across Borders
Charities Working Across Borders
• Gift Aid – NI
• Charitable Donation Scheme – ROI
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Charities Working Across Borders
Gift Aid – NI
• Changes to gift aid declaration
-Taxpayer needs to confirm their understanding re
any shortfall
• Personal Savings Allowance
• Abolition of tax credits attached to dividends
• Gift Aid Small Donations Scheme (GASDS)
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Charities Working Across Borders
Charitable Donation Scheme – ROI
Qualifying donation:
• Payment of at least 250 euro in a single year
• Payment of less than 1m euro in a single year
• Money or designated securities
• Not repayable
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Charities and Trading
• VAT pitfalls
• Beware of VAT thresholds ( anomaly re provision ofservices)
• Business v non business
• Zero rating is specific to individual countries in the EU
• Vatable or exempt
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Charities Working Across Borders
VAT Compensation Refund Scheme (ROI)
• Capped fund of 5m euro available 2019
• Refund of proportion of VAT based on level of non-public funding
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Charities Working Across Borders
Other issues for charities
• Brexit
• Funding and reserves
• Pension deficits
• Increasing regulation
• GDPR
• SORP consultation
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Charities Working Across Borders
Round up of Charity Commission NI guidance
• New guidance on fundraising
• Registration list renamed – combined list
• Guide to giving safely to charity
• Reporting relevant matters of interest (auditors and indexaminers)
• Guidance on serious incident reporting
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Charities Working Across Borders
Useful websites
• www.nicva.org
• www.wheel.ie
• www.moorestephens.co.uk/ni
• www.charitycommissionni.org
• www.charitiesregulatoryauthority.ie
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Charities Working Across Borders
New online course for:
• “The Informed Trustee” in conjunction with STEP and Edinburgh Napier University
• For new, aspiring and established trustees
• www.STEP.org
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Charities Working Across Borders
Dr Rosemary Peters Gallagher OBE, D.Sc.,
BSc (Hons), FCA, D.CHA
• Partner in charge of Audit & Assurance Department (NI)
• Heads up firm’s Charity/Not for Profit Department
• Responsible for delivery of external and internal audit, accounting, advisory
and consultancy services including corporate governance
• Diploma in Charity Accounting
Contact details:
Telephone: 028 903 29481 (Belfast)
028 703 52171 (Coleraine)
Email: [email protected]
MS(NI) LLP 2018