Category Archives: Charity

Charity and Voluntary Sector

Charity reserves: building financial resilience

Giles Kerkham

There has been a significant change in the focus of the Charity Commission’s guidance on reserves (CC19 – revised in 2016). The new key messages include underlying steer towards keeping reserves to address risks of ‘unplanned closures’ and to plan for the maintenance of essential services. This is a turnaround from having to justify why reserves are being retained, to requiring an explanation as to why they are adequate.

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Charities’ management accounts: what do they need to show?

Jo Fox

Consider a charity which delivers services that are funded through a blend of contracts and grant income. To comply with the Charity Statement of Recommended Practice (SORP), the year end accounts need to recognise income from service contracts to the extent that the service had been delivered, whereas grant income would generally be recognised at the point that the grant was receivable.

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Budget 2017 – What it means for the Not for Profit Sector

Giles Kerkham

With the vast majority of measures already being announced, and with very few sector specific announcements, there were no real surprises for the Not for Profit (NFP) sector in the 2017 Spring Budget.

Items with a NFP focus which were previously made public and will come into effect shortly include:

Amendments to Social Investment Tax Relief (SITR) – whilst the government has increased the amount of investment which can be raised under this scheme to £1.

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How effective is finance reporting to your charity board?

Chris Yeates

With MHA, we have created Keeping Your Charity on the Right Track, a 12 month programme to help you improve your organisational governance in a stepped and measured way.  Each month’s article covers an area of charity governance for review and leads you through good practice.

Often as board members rotate, the new trustees simply accept what has gone before and receive the same financial reports without question.

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How effective is your charity board?

Giles Kerkham

With MHA, we have created Keeping Your Charity on the Right Track, a 12 month programme to help you improve your organisational governance in a stepped and measured way. Each month’s article covers an area of charity governance for review.

To be effective, charity board members must fully understand their role.

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Academies Financial Handbook 2016 – key changes

Chris Yeates

The Education Funding Agency (EFA) has released the Academies Financial Handbook 2016, which is effective from 1 September 2016.

We consider the Handbook essential reading for trustees, members, accounting officers and chief finance officers/school business managers. Must-reads are Annex B: Schedule of freedoms and delegations and Annex C: Schedules of requirements.

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Charity Audit Survey success

admin

Our Not for Profit team was delighted to have been singled out once again for praise by Charity Finance magazine as part of its annual survey.
 
The Charity Finance Audit Survey examines questionnaires completed anonymously by more than 1,000 UK charities, along with audit data from the UK’s Top 350 charities by income.

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