Trustees Annual Reports. Trustees Annual Reports. Trustees Annual Reports

Transcription

1 Association of Charity Independent Examiners Scottish Conference 26 August 2016 Trustees Annual Reports Michael Brougham MCIBS FCIE Trustees Annual Reports Basic Concepts It should not been seen simply as a statutory requirement to satisfy the regulator; an administrative nuisance to be avoided until the examiner threatens to resign, or a blatant copy of last year s report. It should help users to understand what the charity is set up to do It should complement the financial statements It should tell the story of the charity and what it has achieved It should be interesting, informative and relevant It should be proportionate to the size of the charity It can exceed the minimum statutory requirements Trustees Annual Reports Requirements for: Receipts & Payments Accounts Accruals Accounts SORP 2005 Accruals Accounts SORP (FRSSE) & SORP (FRS102) Accruals Accounts SORP (FRS102) (Bulletin 1) 1

2 Trustees Annual Report Reference & Administrative details Structure, Governance & Management Who are we? How do we work? (inc Reserves Policy) Future Plans (optional below audit) What are we doing, and for whom? What did we do? How well did we do it? What difference did we make? How did we afford it? What are we planning? TAR Receipts & Payments Accounts Reference and Administrative Details Name Charity Number Principal Office address (or name & address of a trustee) Trustees in post on date of approval (can be limited to 50) Trustees for the charity (if any) Any other trustees who served during the year Optional Bankers & Professional Advisers TAR Receipts & Payments Accounts Structure Governance & Management How the charity is constituted (legal form) Details of the governing document Recruitment & appointment of trustees Any external body entitled to appoint trustees The charity s objects as per the governing document Summary of activities during the year in furtherance of the objects Summary of what the charity has achieved during the year in relation to its objects 2

3 TAR Receipts & Payments Accounts Reserves policy & amount of reserves held Purpose of any designated funds and likely timing of expenditure Explanation of any fund in deficit, and steps being taken to rectify Analysis of any donated facilitates and services Future Plans (optional) A summary of the charities plans for the future and what it is looking to achieve. TAR SORP 2005 All as per Receipts & Payments Accounts, plus: Reference & Administrative details Charitable Companies Company number / Address of Registered Office Trustees same as Directors (no 50 limit) Small company declaration above approval signature The name of any Chief Executive Officer/Senior Staff Member Names & Address of Bankers, Professional Advisers TAR SORP 2005 Structure, Governance & Management How the charity is constituted (legal form) Details of the governing document Recruitment & appointment of trustees Any external body entitled to appoint trustees Induction & training of trustees Organisational structure Details of any wider network or umbrella groups Relationship with related parties/subsidiaries Risk statement / trustee review / mitigation 3

4 TAR SORP 2005 Summary of objects as set out in governing document Summary of main activities carried out Aims including changes or differences it seeks to make. Main objectives for the year Strategies for achieving objectives Significant activities (explaining objectives, activities, projects or services identified in the activities analysis in the SoFA. Grant making policy (if material) Social/Programme related investment policy (if material) Use and contribution of volunteers TAR SORP 2005 Summary of main achievements during the year Review of activities against objectives set Review of fundraising against objectives set (if material) Review of investment performance against objectives set (if material) Commentary on other factors (whether or not within the charity s control) e.g. employees, users, beneficiaries and the charity s position in the wider community TAR SORP 2005 Reserves policy & amount of reserves held Purpose of any designated funds and likely timing of expenditure Explanation of any fund in deficit, and steps being taken to rectify Principal funding review How expenditure has supported key objectives Investment policy & objectives (if material) including extent (if any) to which social, environmental &/or ethical considerations are taken into account 4

5 TAR SORP 2005 Future Plans (optional below audit) Aims and key objectives set together with any activities planned to meet them Funds held as Custodian Trustee A description of the assets Name & objects of the charity for whom the assets are held How this activity falls within the charity's own objects Arrangements for safe custody & segregation for charity s own assets TAR SORP (FRSSE) & SORP (FRS102) (inc Reserves Policy) Future Plans (optional below audit) Structure, Governance & Management Reference & Administrative details What are we doing, and for whom? What did we do? How well did we do it? What difference did we make? How did we afford it? What are we planning? How do we work? Who are we? TAR SORP (FRSSE) / (FRS102) Explain activities, projects or services as per the accounts Numerical information should be constituent with the accounts Criteria or measures used to assess success More detail on short/longer-term aims & objectives Explanation of the activities volunteers support or help to provide Details of the contribution in terms of hours or staff equivalents 5

6 TAR SORP (FRSSE) / (FRS102) The report should identify the difference the charity's work has made to its beneficiaries and (if possible) any wider benefits to society as a whole Balanced picture of a charity's progress against objectives Consider inputs, activities, outputs, outcomes and impacts TAR SORP (FRSSE) / (FRS102) A review of the financial position at the end the reporting period If trustees consider holding reserves is unnecessary, this must be disclosed and the reasons given Any uncertainties re going concern must be disclosed. Financial effect of significant events Investment policy & objectives set (if material) Principal risks / uncertainties / plans & strategies for management TAR SORP (FRSSE) / (FRS102) Factors likely to affect future financial performance Principal funding sources / how these support key objectives Impact, if any, of any material pension liability Social, environmental & ethical considerations in investment policy (if material) 6

7 TAR SORP (FRSSE) / (FRS102) Reserves Policy Total funds at year end Identify funds which are restricted or not available for general purposes. Explain any material designated funds or funds otherwise committed at the year end and likely timing of expenditure Amount of any fund that can only be realised by disposing of tangible or programme related investments Amount of reserves after allowing for the above. Compare with policy / explain steps to regularise if necessary TAR SORP (FRSSE) / (FRS102) Future plans (optional below 500k income) Summary of plans for the future, including aims and objectives and details of any plans to meet them Trustees perspective of the future direction of the charity If relevant, how past experience has influenced plans and decisions re allocation of resources Structure governance and management As per SORP 2005 (large & small) Exemption for disclosure of 50+ trustees removed Reference and administrative details As per SORP 2005 (large & small) TAR SORP (FRS102) Bulletin 1 Nothing specific to TAR (Module 1), but consider for financial review Definition of large charity 500k income, rather than audit Amendment to measurement of donated goods Max amortisation for goodwill raised from 5 years to 10 years No reversal of impairment losses for goodwill Cash flow statement not mandatory below 500k income Merger accounting prohibited for companies that enter into a business combination with a third parity. Effective in Scotland for accounting periods starting in

8 Thank you Any questions? 8