I am about to prepare accounts for a Federation. Basically what will happen is that funding from Income Streams will come from a Funding Council through this Federation and straight out to 4 association bodies. In other words the funds will basically simply transfer through the Federation body, albeit with various delays while the 4 Association bodies submit bids.
Do I need to prepare a Profit and Loss and Balance Sheet?
Any help greatly received
Replies (10)
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?
That is not a type of entity. Any organisation can call itself non-profit.
I think John needs you to be much more specific - club, ltd co (inc which type)
Check belief
If you are going to do the accounts for this "Federation" you need to be certain of its legal status. Loathe as I am to refer to the gov.uk website, I would suggest checking the list of legal structures here and confirming with the officers of the Federation which best fits. I believe it is an Association. It's the first year accounts have been produced.https://www.gov.uk/business-legal-structures/overview
You also need to find out why the funds are being paid to this Federation in the first place. Why can the funding council not pay to the four associations direct, if all the money ultimately goes to them? Is this in fact a joint venture between the four associations? (meaning the Federation has no separate legal existence at all)
You need to answer these questions before you even consider what accounts, if any, are required.
It may be the accountable body
In the public sector it is common for a single entity to be made the accountable body for a funding stream. I suggest you get hold of the funding agreements and see who is required to do what.
Cheers, Neil
Assets?
I would suggest that you look at the Charity Commissioners website for the size of organisation and follow their accounting requirements. If there are no assets other than a bank account a Balance sheet seems rather pointless, as there are not usually any delays after entitlement occurs.
It is possible that they may change their status to one of the CC types so complying from the beginning will make any change over easier.
e.g. CIO's up to a certain size only need a statement of receipts and expenses etc etc