The Charities (Accounts and Reports) Regulations 2008

Regulation 9

SCHEDULE 2 NOTES TO THE STATEMENT OF ACCOUNTS PREPARED BY A CHARITY THAT IS NOT AN INVESTMENT FUND OR SPECIAL CASE CHARITY

1.—(1) Subject to sub-paragraphs (2) and (3) and in so far as it is not provided in the statement of financial activities or in the balance sheet, the information to be provided by way of notes to the accounts is—

(a) particulars of any material adjustment made under regulation 8(8);

(b) a description of—

(i) each of the accounting policies which—

(aa) have been adopted by the charity trustees; and

(bb) are material in the context of the accounts of the charity; and

(ii) the estimation techniques adopted by the charity trustees which are material to the presentation of the accounts;

(c) a description of any material change to policies and techniques referred to in paragraph (b), the reason for such change and its effect (if material) on the accounts, in accordance with the methods and principles set out in the SORP;

(d) a description of the nature and purpose of all material funds of the charity in accordance with the methods and principles set out in the SORP;

(e) such particulars of transactions of the charity, or of any subsidiary undertaking of the charity, entered into with a related party as are required to be disclosed by the SORP;

(f) such particulars of the cost to the charity of employing and providing pensions for staff as are required by the SORP to be disclosed;

(g) such particulars of the emoluments of staff employed by the charity as may be required by the SORP to be disclosed;

(h) a description of any incoming resources which represent capital, according to whether or not that capital is permanent endowment;

(i) an itemised analysis of any material movement between any of the restricted funds of the charity, or between a restricted and an unrestricted fund of the charity, together with an explanation of the nature and purpose of each of those funds;

(j) the name of any subsidiary undertaking of the charity, together with a description of the nature of the charity’s relationship with that subsidiary undertaking, and of its activities, and, where material, a statement of the turnover and net profit or loss of the subsidiary undertaking for the corresponding financial year and any qualification expressed in an auditor’s report on the accounts of the subsidiary undertaking for that financial year;

(k) particulars of any guarantee given by the charity, where any potential liability under the guarantee is outstanding at the date of the balance sheet;

(l) particulars of any loan outstanding at the date of the balance sheet—

(i) which was made to the charity and which is secured by an express charge on any of the assets of the charity; or

(ii) which was made by the charity to any subsidiary undertaking of the charity;

(m) particulars of any fund of the charity which is in deficit at the date of the balance sheet;

(n) particulars of any remuneration paid to an auditor or independent examiner in respect of auditing or examining the accounts of the charity and particulars of any remuneration paid to the auditor or independent examiner in respect of any other services rendered to the charity;

(o) subject to paragraph (2), such particulars of any grant made by the charity as may be required by the SORP to be disclosed;

(p) particulars of any ex gratia payment made by the charity;

(q) an analysis of any entry in the statement of financial activities relating to resources expended on charitable activities as may be required by the SORP to be disclosed;

(r) such particulars of any support costs incurred by the charity as may be required by the SORP to be disclosed;

(s) an analysis of any entry in the balance sheet relating to—

(i) fixed assets;

(ii) debtors;

(iii) creditors,

according to the categories set out in the SORP;

(t) an analysis of all material changes during the financial year in question in the values of fixed assets, in accordance with the methods and principles set out in the SORP;

(u) in the case of any amount required by any of the preceding sub-paragraphs other than sub-paragraph (i), (o) or (t) to be disclosed, the corresponding amount for the financial year immediately preceding the relevant financial year;

(v) a statement as to whether or not the accounts have been prepared in accordance with any applicable accounting standards and statements of recommended practice and particulars of any material departure from those standards and statements of practice and the reasons for such departure;

(w) where the charity trustees have exercised their powers under regulation 3(4)(b) so as to determine an accounting reference date earlier or later than 12 months from the beginning of the financial year, a statement of their reasons for doing so;

(x) if, in accordance with regulation 8(4)(d), the charity trustees have departed from any requirement of regulation 8, particulars of any such departure, the reasons for it, and its effect; and

(y) any additional information which–

(i) is required to ensure that the statement of accounts complies with the requirements of regulation 8; or

(ii) may reasonably assist the user to understand the statement of accounts.

(2) The charity trustees of a charity that is a charitable trust created by any person (“the settler”) are not required to disclose under paragraph (o) of sub-paragraph (1) any excepted information if the disclosure of that information would fall to be made at a time when—

(a) the settlor; or

(b) the spouse or civil partner of the settlor,

is still alive.

(3) In this Schedule—

(a) “corresponding financial year” has the meaning given by regulation 9(3);

(b) “excepted information” means—

(i) the identities of recipients of grants made out of the funds of the charity;

(ii) the amounts of individual grants so made.