Welcome to the second installment in Tait Walker’s blog series on the new Charity SORP, which follows our charity seminar giving an overview of the upcoming changes. We have also produced some accompanying bite sized guides – all of which are linked in our blog posts.
The new SORP rules come into effect from 01/01/15 applying to year ends after 31/12/15. For most charities, this means that it impacts the 31/03/16 for the first time.
If you are unsure which of the SORPs you should apply, please refer to our SORP guide.
The Trustees Annual Report (TAR) is identical whether you are preparing the accounts using either FRSSE or FRS102. The TAR continues the requirement that the charity must tell its story in a balanced manner, bringing the financial statement numbers to life. The report and accounts should provide a picture of the charity’s outputs and outcomes, or its impact.
In regards to the content of the Trustees Annual Report, there are a number of headings specifying the requirements that all charities must follow. They are:
- Objectives and Activities
- Achievements and Performance
- Financial Review
- [Plans for Future Periods – Large only]
- Structure, Governance and Management
- Reference and Administrative Details
- Exemptions from Disclosure
- Funds Held as Custodian Trustee on Behalf of Others
There is no fixed order to follow and the headings can be re-arranged to suit the story that the charity is delivering in its TAR.
These headings are explained in detail in our bite sized guide on TAR, which can be accessed here.
If you require any further advice regarding your Trustees Annual Report, please contact Simon Brown on 0191 285 0321 or email firstname.lastname@example.org