Different rules will apply about how annual accounts must be presented depending upon the legal form or structure of your organisation (and whichever legislation regulates the charity, i.e., the term ‘audit’ will require the organisation to engage the services of an accountant to ‘audit’ the books, or ‘independent examiner’ only requires the organisation to ask someone independent of the organisation with some financial knowledge to examine the accounts, eg a book-keeper.)
Annual accounts contain three elements:
The Financial Statement - either a Receipts and Payments Account or an Income and Expenditure Account
A Balance Sheet - A Statement of Balances is the simpler form of this
Notes to the Accounts.
In preparing those accounts, it is important to:
select suitable accounting policies and then apply them consistently
make judgements and estimates that are reasonable and prudent
prepare the accounts on the basis that the charity is a going concern, unless it seems likely that the organisation will not continue in business.
Your management committee is responsible for keeping proper accounting records which make clear with reasonable accuracy at any time the financial position of your organisation.
If you are a recognised charity you will be expected to submit your accounts and annual report to OSCR along with your annual return.
For suggested formats please contact Sue.Jack@vonef.org.uk for a copy
of the OSCR guidelines on accounts for charitable organisations.
