Accounting & Reporting | Finance Toolkit

Finance Toolkit / Section 2

Section 2

Accounting & Reporting

Accounts will be produced annually to 31st December, in line with the whole Church in Wales.

Church in Wales Accounting Rules

All Ministry Area Councils are required to prepare an annual report and accounts which must:

  • Comply with the Church in Wales Constitution and the Accounting regulations set out within the Constitution and Charity Law
  • Be retained along with all of the accounting records for 6 years
  • Be available for inspection by the Archdeacons
  • Be available to the public on request

Charity Commission Rules: Accounting Requirements

Accounting Reporting Basis

Gross Income Accounting Reporting Basis
Below £250,000 Can opt for Receipts & Payments accounting + assets and liabilities statement
Over £250,000 Accruals Accounts: statement of financial activities + balance sheet

Scrutiny Requirements

Income / Gross Assets of MA Scrutiny
MA income less than £25,000 None
MA income £25,001 to £1 million Independent Examination *
MA income £1 million or more Audit
Gross Assets over £3.26 million and income over £250,000 Audit

* where income is above £250,000 the Independent Examiner must be qualified.

Notes:

  1. Income is defined as the total income recorded in all unrestricted, designated and restricted funds but not endowment (capital) funds.
  2. Small Charitable Companies (income below £6.5 million and gross assets below £3.6 million) are subject to the above scrutiny provisions. Charitable Companies above the small company thresholds must abide by the provisions of the Companies Act.

Independent Examiner Definition: An independent examiner as described in the Charities Act is “an independent person who is reasonably believed by the charity trustees to have the requisite ability and practical experience to carry out a competent examination of the accounts”.

Once a charity’s gross income exceeds £250,000 the examiner must be a person who is a member of one of a list of regulated bodies listed in the Charities Act and should be allowed by the rules of that body to undertake the role of independent examiner (detailed list can be found on the ACAT website).

My Fund Accounting Software

My Fund Accounting is the updated version of the Finance Co-ordinator, by Data Developments. It is a software accounting software package for use by Treasurers.

The programme produces accounts that conform to SORP 015 and FRS 102 standards, and has been designed in conjunction with the Representative Body of the Church in Wales (RB) and the Charities Commission. As such it will be updated to reflect any future changes in institutional or legal requirements, without the need for intervention by MA Treasurers.

Benefits of My Fund Accounting

My Fund Accounting was designed by a Church Treasurer for Church Treasurers to use. The Church in Wales version of the software uses the same account headings that treasurers are currently familiar with and, at the end of the financial year, produces the annual finance return to send to the RB.

My Fund Accounting can be accessed anywhere with an internet connection and from almost any device. The software should save time for treasurers and make reporting requirements much easier. For example, the software can produce an Annual Report template which includes all the financial data required by the Charity Commission along with headings to help guide the writing of the report. Any changes to requirements by Charity Commission or the RB will automatically be updated by Data Developments.

The software is being implemented throughout the Church in Wales and Swansea and Brecon Diocese is fully funding its purchase for all Ministry Areas (and their churches) to ensure that all MA’s are able to benefit without cost.

← Section 1: Roles Section 3: Regulatory Background →