News
Failing accounts
Over the last two years, OSCR has taken a pragmatic approach and where accounts have not met the required standard we have written to the charity with a qualified pass letter, highlighting the deficiencies requiring compliance in the following year.
Accounts which do not include compliant receipts and payment accounts and statement of balances (R&P) or a Statement of Financial Activities and balance sheet (accrued) for accounting periods ending 31 March 2008 and later, will be returned to the charity. The charity will then have to make the necessary changes to the accounts and re-submit the accounts to OSCR within 60 days.
References in documents
The References in Documents Regulations are now in force for charities that were on the Register before 1 October 2007. Those coming onto the Register after this date have six months from the date of entry to comply.
The Regulations require all charities to put their name, as entered on the Register, their Scottish charity number and any other name that they are commonly known by, on specified documents. Documents include: church notices, advertisements and leaflets.
A charity whose name does not contain the word "charity" or "charitable" must also state on documents the fact that it is a charity.
For further information and details of which documents these regulations apply to please read our guidance
Companies Act 2006 - changes to external scrutiny requirements for Scottish Charitable companies
With effect from 1 April 2008, section 1175 and Part 1 of Schedule 9 of the Companies Act 2006 came into force.
This has the effect of removing the special rules regarding the audit of small charities that existed under the Companies Act 1985. For financial years beginning on or after 1 April 2008, small Scottish charitable companies are subject to the external scrutiny requirements set out in the Charities Accounts (Scotland) Regulations 2006.
In practical terms, small charitable companies will be subject to the independent examination/audit thresholds as set out in the 2006 Account Regulations. Only where a charitable company is a large company and over the audit threshold set out in the Companies Act 2006 would they be required to have an audit under that legislation as well as the 2006 Accounts Regulations.
This change is effective for accounting periods starting on or after 1 April 2008.
The table below shows the external scrutiny requirements for Scottish charitable companies under both the Companies Act 1985 and the new regime under the Companies Act 2006.
Criteria (see also note below)
| External Scrutiny |
Companies Act 1985
|
Companies Act 2006
|
|
Independent examination by a qualified person
|
Gross income £90,000 or less and gross assets of not more than £2.8m
|
Gross income less than £500,000 and gross assets not more than £2.8m
|
| Accountant's report in accordance with the Companies Act 1985 |
Gross income more than £90,000 but not more than £250,000 and gross assets not more than £1.4m |
Not applicable
|
|
Audit
|
Gross income £90,000 or less and gross assets over £2.8m
or
Gross income more than £90,000 but not more than £250,000 and gross assets more than £1.4m
or
Gross income more than £250,000
|
Gross income of £500,000 or more
or
Gross assets more than £2.8m
|
Note: where the charity has an existing constitutional requirement to have the accounts audited or where the charity trustees decide to do so, the thresholds noted here will not be relevant.
Whistleblowing
Guidance is now available on OSCR's website on the statutory duty of auditors and independent examiners to report matters of material significance to charity regulators. The guidance has been developed and agreed by OSCR and the Charity Commission for England and Wales.
The guidance applies to auditors and reporting accountants and independent examiners of Scottish charities.
In addition to the duty to report matters of material significance to the charity regulators, there is also a discretionary right for auditors and independent examiners to report to the regulator any matters that they believe may be relevant to the work of the regulator.
Download a copy of the guidance here
The guidance mirrors that contained in Appendix 6 of the consultation draft of Practice Note 11, The Audit of Charities in the United Kingdom, published by the Auditing Practices Board (APB) in April 2008. Auditors should refer to this publication for more detail regarding both the audit of charities and the 'whistleblowing' duty.
The consultation being run by the APB on Practice Note 11 is open until 10 July 2008. The consultation is available on the APB website
OSCR's Accounts Guidance will be updated to reflect both the changes in relation to the Companies Act 2006 and whistleblowing in the autumn.
Scottish Consumer Council (SCC) study: Complaints in the Charity Sector
The Scottish Consumer Council (SCC) surveyed 185 large registered charities, each with an annual income of over half a million pounds. The survey identified good practice across many organisations with three quarters actively providing information to consumers about how to complain. The same number also provided information to staff on complaints procedures.
OSCR supported this study through representation on its working group and would encourage all charities to have a look. A copy of the study is available on the SCC's website
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Recent Publications
One Plus Case Study
In early May OSCR produced its case study report into the collapse of charity number SC011688 One Plus: One Parent Families. The report, the first of its kind, examined the reasons behind the charity's collapse to identify any lessons for the sector generally.
Copies of the report are available to download here
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Website features
Online events booking
People wishing to book onto an OSCR event can now do so online. OSCR's online events booking form allows individuals to apply for attendance at any of OSCR's events.
You can view OSCR's diary of events here
New website features
Visitors to OSCR's website are now able to benefit from a number of added features including:
- automatic front page charity count
- 'print this page' and 'email a friend' buttons
- improved website feedback forms.
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Forthcoming Events
OSCR 'Meet the Regulator' Roadshows
You still have time to book your place at OSCR's Meet the Regulator roadshows. The half day training events are aimed at charity trustee administrators of smaller charities (with an income less than £100,000).
The events will cover compliance issues including charity accounting, consents and notifications and charity trustee duties.
Places are still available for some events. Please click on the dates below to book your place:
10 June 2008: Royal College of Physicians and Surgeons of Glasgow, Glasgow - fully booked
11 June 2008: Dark Island Hotel, Isle of Benbecula
12 June 2008: Tarbert Community Centre, Tarbert
Meet OSCR at the Gathering
OSCR is to host a question and answer session at this year's SCVO The Gathering in Glasgow.
The event, titled "Charities and social economy - Lessons for trustees and service commissioners", will take place in the Leven Room at the SECC from 9.00am to 10.30am on Friday 20 June 2008. Kirsty Gray, OSCR's Head of Monitoring and Investigation, will draw upon the Regulator's experience in this area including lessons learned from the demise of the One Plus charity. Alistair Thornley, Cassafuir Partnerships Limited, will outline his experience in advising public sector commissioners.
The event is free of charge but places are limited to 75 and early booking is recommended. To book your place email OSCR's Communications Team at communications@oscr.org.uk
Further information on SCVO's The Gathering can be viewed at their website
OSCR conference
OSCR will be announcing dates for its second conference soon. Full details will be available shortly on our website at www.oscr.org.uk
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Featured organisation
Find out more about the Fundraising Standards Board (FRSB)
The Fundraising Standards Board (FRSB) has been set up as an independent body to administer the scheme for the self-regulation of charity and voluntary sector fundraising. The scheme is supported by the Scottish Government and provides voluntary rather than statutory regulation of fundraising activities. The aim underpinning the scheme is to maintain and build public trust and confidence in fundraising.
For an annual fee, charities that join the scheme will be able to display the FRSB "tick" logo to show that they are committed to being open and fair, honest and legal in their fundraising activities. Members agree to follow high standards by adhering to the Fundraising Promise and to the Institute of Fundraising's Codes of Fundraising Practice.
OSCR has agreed a Memorandum of Understanding with the FRSB and supports this initiative. For more information, contact the FRSB's office in Scotland on 0845 688 9894 or at membershipscotland@frsb.org.uk or in writing to:
FRSB Scotland
22A/1 Calton Road
Edinburgh
EH8 8DP
Have your charity's details changed?
Charities have a duty to inform OSCR about the following changes no later than three months after the change has taken place.
You should tell us when:
- the Principal contact changes
- the contact details of the existing Principal Contact changes
- the accounting year end date has changed
- changes unrelated to purposes are made to the constitution
- when any change consented to by OSCR is implemented.
For more information on when you should contact OSCR please read our contact OSCR postcard.
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