Financial Reporting by Charities

Financial Reporting Standards for Charities – Current Requirements (June 2016)

All registered charities are required to complete an annual return to the CRA, by 10 months after the financial year end.  This is an online process and includes:

  • Providing details of your charity's activities during the reporting period
  • Providing income and expenditure information about your charity
  • Uploading accounts and reports as pdfs for the period
  • Making a declaration that your charity's details are up to date and your annual return is complete.

The Number and Type of Documents required in order to complete your annual report will depend on the size of your charity in terms of gross annual income.

A charity with a Gross Annual income of less than €10,000 is required to complete the financial information section.  It is optional for a charity in this income bracket to submit a profit and loss account (or income and expenditure account and statement of assets and liabilities) for the reporting period.

A charity with a Gross Annual income of €10,001 - €100,000 is required to complete the financial information section and is required to provide:

  • A profit and loss account (or income and expenditure account and statement of assets and liabilities) for the reporting period.

A charity with a Gross Annual income of more than €100,001 is required to complete the financial information section and is required to provide:

  • A full set of audited accounts for the reporting period - including directors and auditors reports.

Organisations NOT legally required to provide annual accounts

  1. Charities with a gross income of less than €10,000
  2. Education Bodies
  3. Companies who are registered with the CRO.

The Charities Act 2009 provides for annual accounts produced by incorporated charities for the CRO under the Companies Acts to be obtained by the Charities Regulatory Authority (CRA). Such charities are not required to provide additional accounts to the Charity Regulator, though they are required to complete the annual activity report.

Please see the CRA website for more details - please see here for current reporting requirements.

Financial Reporting Standards for Charities – The Future

There is a great variation in terms of the quality and range of information currently provided by charitable companies in their financial statements to the Companies Registration Office (CRO). Some charities comply with the minimum standards required under company law, some Irish charities go beyond the minimum, whilst some even comply with the Statement of Recommended Practice for Financial Reporting by Charities (SORP) standard, which is recommended best practice by the Accounting Standards Board (ASB).

The Charities Regulatory Authority has established a consultative panel to produce long-term guidelines on the content of the Annual Activity Report and on the Annual Statement of Accounts, including the SORP standard.  The Wheel recommends that its members review the SORP standard and familiarise themselves with the different administrative processes it will require and the higher level of both financial and reporting requirements it outlines.

For an example of a SORP compliant audited accounts please see The Wheels Annual Report & Accounts click here.

For the full Statement of Recommended Practice guidelines click here.