charities working across borders · charities working across borders • framework for accounting...

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


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


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• 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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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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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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• Gift Aid – NI

• Charitable Donation Scheme – ROI

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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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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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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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Other issues for charities

• Brexit

• Funding and reserves

• Pension deficits

• Increasing regulation

• GDPR

• SORP consultation

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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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Useful websites

• www.nicva.org

• www.wheel.ie

• www.moorestephens.co.uk/ni

• www.charitycommissionni.org

• www.charitiesregulatoryauthority.ie

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http://www.nicva.org/

http://www.wheel.ie/

http://www.moorestephens.co.uk/ni

http://www.charitycommissionni.org/

http://www.charitiesregulatoryauthority.ie/

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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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

charities working across borders · charities working across borders • framework for accounting...

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