(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
Replies (2)
Please login or register to join the discussion.
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.
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!!!!