Scottish Charity Accounts A guide to the Charities Accounts (Scotland) Regulations 2006 for advisors of smaller charities. 2.1 version 2. Scottish charity accounts. Charity accounts communicate important information about a charity’s activities Clear, concise, consistent
2.1 version 2
For whom are charity accounts prepared?
Advisors of small charities need to be able to:
Where will you find the accounting provisions?
Where will you find detailed guidance?
What is the scope of the Act and Regulations?
What do the Act and Regulations cover?
What does the Act say?
Section 44 of the Act requires charities to keep proper accounting records
What are ‘proper accounting records’?
Section 4 of the Regulations requires accounting records to:
- show, day by day, the money received and spent
- record the assets and liabilities
- disclose the financial position at any time
- enable the production of a statement of account in line with the Regulations
In what form should accounting records be kept?
Not specified form in the Regulations but examples are given in the guidance:
How long must accounting records be kept?
What do the Regulations contain?
Apply to all charities
Apply to some charities
What types of accounts do the Regulations permit?
Which type of accounts should a charity prepare?
This will depend upon:
What is the income threshold for receipts and payments accounts?
* total income of the charity for that particular year excluding any income that is part of a permanent endowment fund
** Changing in April 2011
What should a set of receipts and payments accounts consist of?
When are fully accrued accounts required?
Accounts must comply with the methods and principles of the Accounting and Reporting by Charities: Statement of Recommended Practice (the 2005 Charities SORP)
What should a set of fully accrued accounts consist of?
What types of external scrutiny of accounts do the Regulations provide for?
All charities must have their accounts externally scrutinised. There are two (previously three) types:
What type of scrutiny must a charity have for its accounts?
The appropriate type of scrutiny will depend upon:
What type of scrutiny is required for receipts and payments accounts?
An independent examination (IE), unless an audit is required by:
Charity trustees may specify a new accounting reference date for either: