NICVA response on the Charities (Accounts and Reports) Regulations (NI) 2015

16 Oct 2015 Denise Copeland    Last updated: 2 Nov 2015

NICVA has submitted its response to DSD on the charities accounting and reporting consultation and is urging all organisations to do the same.

NICVA’s response is based on its role as the representative body for the voluntary and community sector in Northern Ireland.  Comments are based on practice and informed by previous charity regulation consultations and the roundtable discussion held in NICVA on 25 September following DSD’s information session on the consultation.

Executive Summary

While NICVA agrees that it is necessary to have regulations for the preparation and scrutiny of charity accounts it does not agree with DSD’s preferred options for the income thresholds.

  • NICVA does not agree that the income thresholds should remain at the 2008 Act levels as these are too low.
  • NICVA believes that charities with an income under £250,000 should be permitted to prepare receipts and payments accounts.
  • NICVA believes that charities with an income under £250,000 should be permitted to have an independent examination by someone that the charity trustees believe has the requisite ability and experience.
  • NICVA believes that charities with an income between £250,000- £1m should be eligible to have an independent examination by a qualified person.
  • NICVA believes that the threshold for audit should be £1m (subject to an assets threshold).
  • NICVA believes that an asset threshold should be introduced for consideration for audit if the audit threshold is increased to £1m.
  • NICVA proposes that charities with  an income over £250,000 and gross assets of at least £3.26m should be required to have an audit.
  • NICVA believes that the threshold for the preparation of group accounts should be aligned to the audit threshold of £1m.
  • NICVA believes that a de minimis threshold should be introduced for very small charities.
  • While not part of this consultation, NICVA believes that DSD should review the requirement that very small organisations must register with CCNI.

Please see our response document attached for full details of our rationale.

 

by Denise Copeland

Governance and Charity Advice Manager

[email protected]