Oversight Panel convened to review of the committee and the SORP-making process
The four charity regulators in the UK and Republic of Ireland have decided to hold a governance review of the constitution and composition of the Charities Statement of Recommended Practice (SORP) committee and the SORP making process.
The governance review will be undertaken by an Oversight Panel comprising an observer representative nominated by the FRC and a representative from each of the four charity regulators. The panel will be assisted by the staff of the CCEW and OSCR.
The work of the panel will be overseen by Professor Gareth Morgan, an independent Chair retained by the SORP-making body.
The purpose of the governance review is:
The Charities SORP is the set of rules which governs charity accounting for charitable companies and larger charities and was initially developed by the Charity Commission for England and Wales (CCEW) and the Scottish Charity Regulator (OSCR). The Charity Commission for Northern Ireland (CCNI) were added as joint members of the SORP-making body in June 2018. The Financial Reporting Council have also approved the inclusion of the Charities Regulator in the SORP-making body but this is subject to the SORP being formally adopted for use in the Republic of Ireland and made mandatory for Irish charities.
The charity regulators have identified that as a minimum the governance review shall consider the following matters:
The governance review will be undertaken during 2018 and the conduct of the review, the taking of evidence, publicising of the process, and the identification and invitation of participants, and any other relevant matter shall be determined by the Oversight Panel. Any recommendations from the review requiring change to the composition of the advisory SORP Committee and the SORP development process will be taken forward by the SORP-making body in 2019 in time for the development of the next full SORP.
Charities SORP Committee Governance Review Panel Chair, Professor Gareth Morgan, said,
"As someone who has had a long interest in the Charities SORP, both as an academic researcher and as a practitioner, I am very much aware of its significance in achieving massive improvements in charity accounts and reporting since the first modern SORP was issued in 1995. Going forward in 2018, I am delighted that the four charity regulators across the UK and Ireland will together form the new SORP-making body. In the circumstances, it is entirely right to begin with a review of the governance processes in developing new versions of the SORP, and I am honoured to have been asked to chair that review".
Laura Anderson of OSCR who is one of the joint Chairs of the SORP Committee, said,
"On behalf of the charity regulators involved in the SORP process we welcome Gareth taking on the role of Chair. The review comes at a critical juncture as we look to take stock and develop the next SORP with the needs of all four charity law jurisdictions in mind. To be effective we need a SORP process that is fully representative and delivers a SORP that it is clear, accurate and meets the reporting needs of the users of charity reports and accounts whilst upholding the standards issued by the FRC."
Notes to Editors