Charities SORP

Application guidance for charity accounting

Meeting of the Charities SORP-making body

Conference call - 11 May 2020


Joint Chairs:
Laura Anderson, Office of the Scottish Charity Regulator (OSCR)
Nigel Davies, Charity Commission England and Wales (CCEW)
Sarah Finnegan, Charity Commission for Northern Ireland (CCNI)

In attendance as observer(s):
Jenny Carter, Financial Reporting Council (FRC)
Jelena Griscenko, Charities Regulator (CR)

Purpose of the meeting:

To consider the next steps in the engagement strategy following the discussion at the preceding meeting of the Charities SORP Committee and review outstanding actions.

Agreed actions from the meeting:

  • In view of the number and areas of interest of applicants, it was agreed to take forward six engagement strands with some strands and a further letter advising the next steps to be prepared (OSCR)
  • Added as an annex to the letter the role of the convenor as amended by Committee feedback (CCEW)
  • With respect to the six strands, each regulator to take designated strands and act to appointment the convenor(s) and act as the facilitator:
    • Trustees (CCNI)
    • Smaller charities and independent examiners (OSCR)
    • Professional and technical with two groups to run within this strand (CCEW)
    • Larger charities (CCEW)
    • Major funders and donors and government and public bodies (CR)
    • Academics and regulators and proxies for the public interest (OSCR)
  • Agreed to recirculate the schedule of applicants for each regulator to confirm applicant details so that the strands can be populated (OSCR)
  • Agreed once convenors are appointed that after an initial conference call with all the convenors that each regulator then leads in advising the next steps for the strand members.
  • Agreed that prior to convening the engagement strands that the role of the convenor be explored at the next SORP Committee meeting (OSCR)
  • Additional points agreed following the SORP Committee meeting:
    • That the request to change the advice on defining gross income as turnover for Information Sheet 6 is not accepted as the policy aim is for turnover to be the normal trading income of a company and that is equivalent to gross income
    • The request to convene a working group not proceed and instead the alternative approach suggested of endorsing emerging good practice be taken forward
  • The topic of going concern was discussed but it was noted that there is a wealth of information from the FRC and other sources and so no further action considered necessary
  • Agreed to bring a research paper to the October meeting on findings from accounts research as a catalyst for discussion (CCEW)
  • Agreed to set up a progress meeting with CIPFA (CCEW)