No panic it was just a late night straw poll. They are getting legal advice.
They are bound to the NJC payscales (education based) so they have the 1870 Apportionment Act?!? to content with which states the (rather odd) 1/365th deduction. But this appears to be rather blunt with no mention of variable daily hours.
Thanks everyone. I will ensure he understands this must only be used for living expenses to be sure to not fall foul being seen as any business support.
indeed - my poor use of language. The key I was getting to is that the balance sheet assets are reduced, rather than creating a new asset with the charge
OK yeah. so essentially treat the debt and the potential recovery separately. If a bad debt provision is made, the debtor is removed - and if subsequently any recovery is made via the charge, then apply the income against the bad debt provision at that point - as no asset exists from just having a charge.
As far as I understand the accrual for the gas has just been a finger in the air. They have no idea what usage has incurred due to not knowing their meter. I'm not their auditor though clearly in the prior years the auditor must have been happy with the building up, my involvement is more on a restructuring and possible combination planning (which would bring to the fore the need to bottom this out for sure). I will raise it with the auditor at their March year end.
In your case it's the opposite - the Charities Act (ChA) trumps the Companies act(CA). Case in point - The CA requires audit if the company is not considered small, however if your charity is over £1m income you have to get an audit and cannot apply the Small Company Exemptions - so ChA trumps CA. Similarly, the CA is silent on a £25k threshold but ChA is not (or at least the ChA regs) so again this trumps the CA and an IE is required once you go over £25k
My answers
Hi folks
No panic it was just a late night straw poll. They are getting legal advice.
They are bound to the NJC payscales (education based) so they have the 1870 Apportionment Act?!? to content with which states the (rather odd) 1/365th deduction. But this appears to be rather blunt with no mention of variable daily hours.
I'll update as it becomes clearer
Thanks everyone. I will ensure he understands this must only be used for living expenses to be sure to not fall foul being seen as any business support.
indeed - my poor use of language. The key I was getting to is that the balance sheet assets are reduced, rather than creating a new asset with the charge
OK yeah. so essentially treat the debt and the potential recovery separately. If a bad debt provision is made, the debtor is removed - and if subsequently any recovery is made via the charge, then apply the income against the bad debt provision at that point - as no asset exists from just having a charge.
helpful, thank you
Thanks for your response. Some good thoughts. As far as I understand they cannot identify the meter despite some efforts with the other tenant.
I'll discuss these ideas with them when I meet next.
Hi
As far as I understand the accrual for the gas has just been a finger in the air. They have no idea what usage has incurred due to not knowing their meter. I'm not their auditor though clearly in the prior years the auditor must have been happy with the building up, my involvement is more on a restructuring and possible combination planning (which would bring to the fore the need to bottom this out for sure). I will raise it with the auditor at their March year end.
yeah it isn't a problem as such and certainly not my problem but it's just an odd situation and the accruals will continue to build up ad infinitum...
though perhaps the 6 years limitation statute applies to company debts?
If they ever are released it potentially upsets all sorts of things such as historical overhead charges to restricted funds.
thank you for this confirmation
many thanks for your input
Hi
In your case it's the opposite - the Charities Act (ChA) trumps the Companies act(CA). Case in point - The CA requires audit if the company is not considered small, however if your charity is over £1m income you have to get an audit and cannot apply the Small Company Exemptions - so ChA trumps CA. Similarly, the CA is silent on a £25k threshold but ChA is not (or at least the ChA regs) so again this trumps the CA and an IE is required once you go over £25k
hope that helps