Charity financial reporting

Accurate financial information is a key element of the operation of a charity. Annual reporting is a part of this process.

The format of charity annual financial statements is determined by reference to the Charity SORP and, if it is a limited company, the Companies Act 2006.

There are a number of issues specific to charities, including, for example:

  • heritage assets;
  • donated goods, services and assets;
  • accounting for designated and restricted funds.
  • director / trustee disclosures covering objectives, public benefit and other matters.

Financial information produced to a high standard can offer many advantages. At times, the annual accounts will be seen by a variety of stakeholders, including:

  • banks;
  • existing or potential donors or grant-making bodies;
  • beneficiaries;
  • The Charity Commission;
  • HMRC.

It is therefore essential to ensure that financial reports are comprehensive, accurate and comply with current and relevant legislation.

We have extensive experience in dealing with charity issues. We take seriously our ethical duty to charity trustees and directors in assisting them to meet their obligations to ensure that financial information is accurate and compliant with relevant and current legislation.

If you require advice or would like to discuss charity annual reporting, please contact us.