Reporting to the Charity Commission – What’s Required? (Resource contributed by Richmond Council for Voluntary Service) This is an outline of the general reporting requirements for registered charities. It is not a comprehensive list of all the details required in either report or accounts. In addition, you may find that your own organisation’s governing document imposes stricter requirements than the Commission in which case you must follow your governing document.
Reporting Requirements Turnover/Assets < £10,000 £10,000 - £25,000 £25,000 - £250,000, £250,000 - £500,000, assets <£3.26m £250,000 - £500,000, assets >£3.26m > £500,000 > £1,000,000
Obligations Prepare Annual Report and Accounts Make them available to the Commission on request Submit Annual Update Prepare Annual Report and Accounts Make them available to the Commission on request Submit an Annual Return (part A) Prepare Annual Report and Accounts (accounts must be independently examined) Submit them to the Commission (within 10 months) Submit an Annual Return (part A ) Prepare Annual Report and Accounts (accounts must be independently examined) Submit them to the Commission (within 10 months) Submit an Annual Return (part A ) Prepare Annual Report and Accounts (accounts must be audited) Submit them to the Commission (within 10 months) Submit an Annual Return (part A ) Prepare Annual Report and Accounts (accounts must be audited) Submit them to the Commission (within 10 months) Submit an Annual Return (part A & B) Prepare Annual Report and Accounts (accounts must be audited) Submit them to the Commission (within 10 months) Submit an Annual Return (part A, B & C)
Note: Thresholds are reviewed from time to time; always double check the latest information Code of Good Governance for Smaller Organisations: Useful Resources
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Form of Accounts Type of Organisation Not a company Company
Turnover <£250,000 >£250,000 Any
Type of accounts Receipts and payments Accruals in accordance with SORP Accruals in accordance with SORP
For further details check the Charity Commission website at: www.charity-commission.gov.uk In particular, read ‘CC15b - Charity Reporting and Accounting: The essentials’: www.charity-commission.gov.uk/publications/cc15b.aspx and ‘File early – A Challenge to the Sector’: www.charity-commission.gov.uk/manage_your_charity/fileearly.aspx Charities Which Are Also Companies Charities which are also Companies must additionally follow the reporting requirements for Companies. Virtually all local service delivery organisations will qualify as ‘small’ Companies, which typically means that they meet at least two out of the following three criteria: Turnover: < £6.5m Balance sheet total:< £3.26m Employees: < 50 (There are other criteria, but they seldom apply to charitable companies) Small companies benefit from less onerous reporting requirements than medium or large companies. Small companies also qualify for exemption from audit if both the balance sheet and turnover thresholds above apply to them, and therefore the main drivers for independent examination and audit are the Charity Commission requirements. However all companies must: • Submit an annual return • Prepare annual accounts • File the annual accounts at Companies House by the due date (within 9 months; Commission: 10 months) Penalties are imposed for late submission To find out in more detail what Reporting requirements affect Companies, visit the Companies House website.
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“Life of a Company - Part 1 Annual Requirements - GP2” is a good place to start. Find it at: www.companieshouse.gov.uk/about/ gbhtml/gp2.shtml#ch6
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