OSCR's forcing us to change from Accrual to Receipts/Payment accounting :(

OSCR's forcing us to change from Accrual to...

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(Unpaid) I prepare accounts for a Scottish Local Community Association (LCA), turnover variable but <£5,000 this year.

LCA are currently paying annual Independent Accountant fees of just under £500 (~10% of T/O).  The reason LCA has to incur these fees is because it's doing Accrual Accounting - which (as we all know) gives a much better assessment of their year-end position,

However, the OSCR website tells me that, if we revert to "Receipts and Payments" - aka cash-accounting - we don't need a professional accountant - just an "Independent examination by someone with the requisite skills under s11(1) of the 2006 Regulations" described as: "...  someone independent of the management and administration of the charity and whom the charity trustees believe has the required skills and experience to carry out a competent examination of the accounts."  

So, to avoid a ~£500 fee to get accrual accounts "Professionally assessed", LCA is being forced to revert to cash-accounting next year. 

Comments/advice/sympathies welcome.  

Any advice how to influence OSCR?  I will phone them to ask about their criteria for "Professionally assessed".

jane

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By paulwakefield1
19th Feb 2013 08:28

Two thoughts

1) How easy would it be to prepare both sets of Accounts? You could use the accruals accounts internally as "management accounts" and file the R&P accounts. Is there in fact much difference bewtween the two year on year anyway?

2) Find an appropriate person who will do it foc. It sounds like a small job and it shouldn't be too hard to find a suitably qualified community minded examiner.

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By grumpy83
19th Feb 2013 13:43

I'm come across this too where I need to keep things within the correct year to make sense of the overall figures.

I've found entries dated '30/06' that don't clear through the bank even for a couple of weeks very helpful!!!!

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