SORP it OUT! Archie McDowall

What is the SORP? Statement Of Recommended Practice Accounting and reporting by charities (2005)

Current situation Income > £250,000 must use SORP Income < £250,000 option to prepare Receipts and Payments accounts Currently many congregations voluntarily prepare SORP accounts

Looking Ahead Current income limits will still apply BUT New SORP issued

2016 and beyond Current SORP for smaller charities will be withdrawn Early indications that most exemptions will be removed Compliance with remaining SORP will be more challenging Receipts and Payments Accounts

Main Changes from Current SORP Trustees’ Report Expanded Reserves Policy All trustees’ names must be provided

Main Changes from Current SORP SOFA Number of headings reduced Descriptions simplified Comparatives for all columns required

Main Changes from Current SORP Balance Sheet Investment properties Social investments shown separately Debtors due after more than one year

Main Changes from Current SORP Accounting Policies Recognition of income Donated goods Accrual for annual leave and sick leave

Main Changes from Current SORP Trustees’ Remuneration Trustees’ expenses include costs paid to third parties Total amount donated by Trustees must be disclosed Expenses waived by Trustees must be disclosed

Main Changes from Current SORP Employees’ Remuneration Contributions to employees’ pension fund must be disclosed Details of redundancy and termination payments Total paid to key management personnel

Main Changes from Current SORP Funds received as an agent Consortium arrangements

Social Investments Investments which further the cause of the charity

SORP it Out !

I Spout Rot!