Peter Toner Head of Charity Policy and Legislation DSD

 Richard Worledge - Charities Team VCU  Myles McKeown - CCNI  Denise Copeland - NICVA

 To assist you to formulate your responses to the consultation  To explain the rationale and background  To explain briefly what the Regulations mean for you  To explain how you can respond to the consultation  To give you an opportunity to ask questions about how to respond

DRAFT Charities (Accounts and Reports) Regulations (Northern Ireland) 2015

 Transparency  Accountability  Public confidence

 The Charities Act (Northern Ireland) 2008 established the Charity Commission for Northern Ireland and set the regulatory framework for charities here  The Department is making these regulations in accordance with the Act  Consultation

 The Regulations for the first time in NI: Prescribe the form and contents of statements of accounts and annual reports recognise certain differences for charities

 All charities registered in NI  Effective from 1 January 2016, for financial years of charities beginning on or after that date The Report and Accounts are to be filed with CCNI within 10 months of the end of the financial year - for publication

 The annual income thresholds determine the accounting and reporting requirements which are applicable to a particular charity  The annual income thresholds set out in the Charities Act are: up to £100k; over £100k, up to £500k; and over £500  Minimal impact

Charities must;  Produce Accounts (depending on the threshold)  Produce an Annual Report detailing how they have performed for the public benefit  File with CCNI

What it means for charities with a gross annual income up to £100k  Can elect to do receipts and payments account and a statement of assets and liabilities  Accounts to be independently examined – competent person

 Must prepare accruals accounts applying Financial Reporting Standard (FRS) 102 and the applicable Statement of Recommended Practice (SORP)  Have accounts independently examined by a qualified person – bodies stipulated in the Charities Act

 Must prepare accruals accounts applying FRS 102 and the applicable SORP  Have accounts audited – by someone qualified to audit charity accounts

 Where the annual income of a parent charity and its subsidiaries exceeds £500k (excluding intra group transactions)  Parent charity produces a group account which treats the group as if it were a single entity

Three options are proposed:  The current thresholds contained within the Charities Act  Increase independent examination by a qualified person to £250k, audit threshold to remain at £500k; or  Increase independent examination by a qualified person to £250k, audit threshold increased to £1m

 The regulations will affect all charities registered in NI  The requirements should not be onerous  Most of what is stipulated will already be done by most charities  The regulations will provide clarity and transparency for the charity sector in NI which is good for both the charities themselves and the public generally

 All views are welcome  Online through Survey Monkey – easiest way to respond!  or hard copy on template (which can be requested from the Charities Team in VCU) are alternative ways to respond  Responses must be received by 30 October 2015