Charities Working Across Borders

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1 Charities Working Across Borders 6 th February 2018 Rosemary Peters Gallagher Partner PRECISE. PROVEN. PERFORMANCE.

2 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

3 Contents Current accounting and reporting requirements Similarities and Differences Gift Aid / Charitable Donation Scheme Charities and trading the pitfalls Latest Developments

4 NI ROI Charities Act (NI) 2008 and Charities Act (NI) 2013 Charities Act 2009 Companies Act 2006 Companies Act 2014 The Charities (Accounts and Reports) Regulations (NI) 2015

5 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

6 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

7 Thresholds for accounting periods beginning on or after 01/01/2016 (NI) Gross Income Presentation of accounts External Scrutiny Up to 250,000 Over 250,000 up to 500,000 Statement of accounts (unless trustees elect to use receipts and payments basis) TAR and annual monitoring return Statement of accounts including TAR and annual monitoring return Independent examination Independent examination by qualified person Over 500,000 Statement of accounts including TAR and annual monitoring return Audit

8 Annual Reporting Requirements (ROI) 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

9 Content of Trustees Report Objectives and activities Achievements and performance Financial review Plans for future periods Structure, governance and management Reference and administrative details

10 SOFA 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

11 SOFA Continued 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

12 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 and Safety, Employment Law, Tax Law, Protection of the vulnerable, Public Liability. etc, etc.

13 Gift Aid NI Charitable Donation Scheme ROI

14 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)

15 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

16 Charities and Trading VAT pitfalls Beware of VAT thresholds ( anomaly re provision of services) Business v non business Zero rating is specific to individual countries in the EU Vatable or exempt

17 VAT Compensation Refund Scheme (ROI) Capped fund of 5m euro available 2019 Refund of proportion of VAT based on level of nonpublic funding

18 Other issues for charities Brexit Funding and reserves Pension deficits Increasing regulation GDPR SORP consultation

19 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 ind examiners) Guidance on serious incident reporting

20 Useful websites

21 New online course for: The Informed Trustee in conjunction with STEP and Edinburgh Napier University For new, aspiring and established trustees

22 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: (Belfast) (Coleraine) rpetersg@msca.co.uk

Financial disclosure reporting checklist

Financial disclosure reporting checklist Charities (FRS 102) Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with