1. Community buildings in a changing landscape
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Community buildings in a changing landscape
Chapter 1

2. Chapter 1
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Reporting requirements for charities

3. No further inspections from Local Authority officers
Shift towards self-regulation of
community buildings
This short series of training modules will take you through the changes to the regulations so that you can be confident you are doing things correctly.
If there are any issues or questions which arise from the training then please visit the RAY website or call us on
No further inspections from Local Authority officers
“Over the last few years there has been a shift towards the ‘self-regulation’ of community buildings. This means that the responsibility has shifted to the Management Committee to demonstrate that it has fulfilled the regulations rather than being subject to an annual ‘inspection’ by a Local Authority officer. This short series of training modules will take you through the changes to the regulations so that you can be confident you are doing things correctly.
If there are any issues or questions which arise from the training then please visit the RAY website or call us on
RAY can provide you with support for you community building through regular e-bulletins, facilitating local networks and training opportunities and through access to information sheets covering all aspects of managing a community building. “
Responsibility has shifted to the management committee

4. Guidance in this DVD applies to all charities
Charitable objectives
Guidance in this DVD applies to all charities
Issues guidance
Sets reporting requirements
Income of £5,000+
“Village halls and other community buildings that have charitable objectives are classed as charities. Charities with an annual income of £5,000 or more must register with the Charity Commission. The Charity Commission is the regulatory body for charities and issues guidance for charity trustees and also sets the reporting requirements. However, the guidance in this DVD applies to all charities, regardless of whether they are registered with the Charity Commission”.
Register with the Charity Commission

5. Charity accounts By law all charities must:
Prepare and maintain account records
Prepare accounts
Publish an Annual Report
Make the accounts available to the public
Print the registered charity name or number on all documents
More info:
“By law all charities must:
Prepare and maintain accounting records, these records, which may be in the form of cash books, invoices or receipts must be retained for at least six years
Prepare annual accounts
Publish an annual report
Make the accounts available to the public on request. This is vital to the principle of public accountability and must be complied with in all cases. A reasonable charge to cover the costs of complying with the request, for example, to cover photocopying and postage costs, can be applied. As a matter of good practice a copy of the Trustees' Annual Report should be sent with the accounts.
You must also print the registered charity name or number on all documents such as fundraising appeals, advertisements for events, letters, cheques, bills, invoices and receipts”.

6. Financial reporting Income threshold Requirement
£500, Professional audit
< £10, Annual update
£25,000 - £250,000 Annual return, Simplified accounts
Annual report
Examination or audit
£250,000 - £500,000 Annual return, Full accounts
Examination or audit
£10,000 - £25,000 Annual return
“Depending on the amount of income your charity secures throughout the year, there are different financial reporting requirements that you will need to follow.
Where your charity has an income of less than £10,000, you simply need to produce an Annual Update
Where your charity secures an income of between 10 and £25,000, you need to produce an Annual Return
Between 25 and £250,000 you will need to produce an Annual Return, a set of Simplified Annual Accounts and an Annual Report. These documents should then be subject to an independent examination or audit.
Between 250 and £500,000 the requirements are the same, except your annual accounts will not be simple, they will be full accounts prepared on an accruals basis.
For charities with an income in excess of £500,000 a professional audit will be required”.

7. Financial reporting Name and number Date and number of days overdue
Once you have submitted your annual documents, the Charity Commission publish information on their website for viewing by the general public. This includes:
Name and number
Date and number of days overdue
Objects
Current trustees
Correspondence address
“Once you have submitted your annual documents, the Charity Commission publish information on their website for perusal by the general public. This includes:
The name and number of the charity
The date the charity sent in its annual reporting data (and the number of days overdue if it has not been received)
The objects of the charity
The names of the current trustees
And the address of the ‘correspondent’.
It is very important that a charity reports on time. Funding agencies are interested in this information and will check to see that a charity is complying with reporting regulations and may reject a funding application if reporting is not up-to-date”.

8. Reporting changes
Minor changes to administrative arrangements in Trust Deeds no longer require the authority of the Charity Commission
Changes to Objects, a Dissolution Clause or clauses relating to Powers are not allowed
“In addition to financial reporting; you may need to notify the Charity Commission of changes to your charity.
Under the 2006 Charities Act minor changes to the administrative arrangements in Trust Deeds no longer require the authority of the Charity Commission.
A properly constituted General Meeting of the charity can approve a ‘Deed of Variation’. However, once agreed the documents must then be lodged with the Charity Commission.
Charities must also be aware that they cannot change their Objects, a Dissolution Clause or clauses relating to Powers”.

9. For further information please contact RAY on 0845 313 0270