The 2005 Act requires charities to keep proper accounting records. The 2006 Regulations specify that the accounting records must be sufficiently detailed to show and explain the transactions of the charity. In particular they must be able to:
The 2005 Act also specifies that charities must keep accounting records for at least six years from the end of the financial year in which they are made. However, charity trustees should be aware that the length of time they need to keep records may also be governed by other legislation or by agreements with funding bodies.
The records kept by charities will vary depending on circumstances and may be manual or computerised. Examples of records that a charity should keep are:
Examples of other records that a charity may keep are: