The Charities Accounts (Scotland) Regulations 1992

Regulation 4

SCHEDULE 1 ACCOUNTS, NOTES TO THE ACCOUNTS AND THE REPORT

PART 1 Information to be shown in the Balance Sheet and Income and Expenditure Account

1.  The balance sheet shall:—

(a) classify the assets into fixed assets, investments, including investment properties, and current assets; and classify the liabilities into current liabilities being amounts falling due within one year of the balance sheet date and long term liabilities being those falling due after more than one year after the balance sheet date, in such a way as will enable the user to gain a proper appreciation of their spread and character;

(b) analyse the total amount of assets less liabilities between its major funds; and

(c) indicate, wherever possible, which assets and liabilities form part of endowment and other restricted funds.

2.  The income and expenditure account shall set out the aggregate income and expenditure and any appropriations therefrom for the financial year in sufficient detail as may reasonably enable the user to gain a proper appreciation of the transactions and the surplus or deficit for that year; and in particular the following, if any, shall be shown separately:—

(a) realised gains on investments;

(b) realised gains on the disposal of fixed assets;

(c) income from investments other than land and buildings;

(d) rents from land and buildings;

(e) gross income from fund raising activities;

(f) legacies but excluding any amounts provided to form part of a permanent endowment fund;

(g) grants received and receivable but excluding any amounts provided to form part of a permanent endowment fund;

(h) donations (excluding legacies) received and receivable but excluding any amounts provided to form part of a permanent endowment fund;

(i) gross income from trading activities;

(j) other material income;

(k) realised losses on investments;

(l) realised losses on the disposal of fixed assets;

(m) expenses of fund raising activities;

(n) publicity expenses;

(o) administrative costs detailing material items;

(p) the remuneration of the auditor or independent examiner in respect of—

(i) audit services; and

(ii) other services such as taxation advice, consultancy, financial advice and accountancy;

(q) grants and donations made relating directly to charitable activities;

(r) other expenditure relating directly to charitable activities;

(s) gross expenditure on trading activities; and

(t) other material expenditure.

PART 2 Information to be shown in the Statement of Balances and Receipts and Payments Account

1.  The statement of balances shall—

(a) reconcile the cash and bank balances at the beginning and end of the financial year with the surplus or deficit shown by the receipts and payments account;

(b) summarise the changes in the holding of investments and other assets including gifted assets during the financial year;

(c) distinguish between the major funds, the investments and other assets; and

(d) state an estimate of the liabilities at the end of the financial year showing separately any contingent liabilities.

2.  The receipts and payments account shall set out the aggregate receipts and payments for the financial year in sufficient detail as may reasonably enable the user to gain a proper appreciation of the transactions and the excess of receipts over payments or payments over receipts for that year; and in particular the following, if any, shall be shown separately:—

(a) proceeds of sale of investments;

(b) proceeds of sale of assets;

(c) income from investments other than land and buildings;

(d) rents from land and buildings;

(e) proceeds from fund raising activities;

(f) legacies;

(g) grants received;

(h) donations (excluding legacies) received;

(i) gross trading receipts;

(j) other material receipts;

(k) purchases of investments;

(l) purchases of other assets;

(m) expenses of fund raising activities;

(n) publicity expenses;

(o) administrative costs detailing material items;

(p) gross trading payments;

(q) the remuneration of the auditor or independent examiner in respect of—

(i) audit services; and

(ii) other services such as taxation advice, consultancy, financial advice and accountancy;

(r) grants and donations relating directly to charitable activities;

(s) other payments relating directly to charitable activities; and

(t) other material payments.

PART 3 Information to be shown in the Report

The report shall contain, so far as it is applicable,—

(a) Details of the legal and administrative arrangements including the nature of the founding document, the names and designations of those who are or have been, at any time during the financial year, trustees, and the manner of their appointment, the principal address of the body and details of any restrictions in the way the body may operate;

(b) an explanation of the objectives and organisational structure of the body;

(c) a review of the financial position and an explanation of the salient features of the statement of accounts;

(d) a review of the development, activities and achievements during the year;

(e) any other information necessary, for a proper appreciation of the financial position taking into account future plans and commitments;

(f) particulars of any connected body including the address and nature of the relationship; and

(g) particulars of any material transactions between connected bodies.

Regulation 5

SCHEDULE 2

PART 1 Additional information to be provided by way of Notes to the Accounts

In respect of the balance sheet and income and expenditure account—

(a) a statement of the accounting policies adopted by the recognised body in determining the amounts to be included in the balance sheet and income and expenditure account including such policies with respect to but not restricted to such matters as fixed assets, the use of designated funds, legacies, grants payable and receivable, investments and income therefrom;

(b) the nature and purpose of each of the major funds;

(c) details of the movements on permanent endowment funds to be shown;

(d) except where provided in the statement of accounts and as required in paragraph (c) above a reconciliation of the total opening funds to the total closing funds, by major fund, summarising the income and expenditure of each fund and detailing any movements between them during the financial year;

(e) details of any grant or grants paid which exceeds or exceed in aggregate the greater of £1,000 or 2percnt; of the gross income from all sources for the financial year; separate disclosure shall not be required where the grant or grants is or are made for the benefit of an individual; and grants made for the benefit of individuals should be aggregated and the total, number and range of grants shown;

(f) particulars of all material commitments showing separately those in respect of specific charitable and other purposes;

(g) any guarantees given or other contingent liabilities and the conditions under which such liabilities might arise;

(h) any loans or other liabilities secured on the assets;

(i) the aggregate amount, if any, of any remuneration o`r reimbursement of expenses paid to the trustees and the aggregate amount, if any of any consideration paid to or receiveable by third parties for making available the services of the trustees unless disclosed in the statement of accounts;

(j) the total emoluments paid to employees and the average number of employees during the financial year;

(k) such other information as may reasonably assist the user to understand the statement of accounts; and

(l) in respect of those bodies who satisfy any two of the following conditions:—

(i) the gross income from all sources exceeds £2,000,000 per annum;

(ii) the number of its employees exceeds 50; or

(iii) the balance sheet total exceeds £975,000

a financial statement analysing cash flows under the headings of operating activities, returns on investments and servicing of finance, taxation, investing activities and financing.

PART 2 Additional information to be provided by way of Notes to the Accounts

In respect of the statement of balances and receipts and payments account—

(a) the nature and purpose of each of the major funds;

(b) except where provided in the statement of accounts, a reconciliation of the total opening funds to the total closing funds, by major fund, summarising the receipts and payments of each fund and detailing any movements between them during the financial year;

(c) details of any grant or grants paid which exceeds or exceed in aggregate 2percnt; of the gross receipts from all sources for the financial year; separate diclosure shall not be required where the grant or grants is or are made for the benefit of an individual; and grants made for the benefit of individuals should be aggregated and the total, number and range of grants shown;

(d) the aggregate amount, if any, of any remuneration or reimbursement of expenses paid to the trustees and the aggregate amount, if any, of any consideration paid to or receiveable by third parties for making available the services of the trustees unless disclosed in the statement of accounts; and

(e) such other information as may reasonably assist the user to understand the statement of accounts.