We’ve tried to avoid jargon in KeyStone but there are ...



| |Statement |Use this space to record any actions |We do |We can |Complete |

| | |you need to take and/or the locations|it |prove it |(initialled and|

| | |of your evidence | | |dated by |

| | | | | |assessor) |

| | | | | | |

|3.1 |Your annual accounts are presented in a clear | | | | |

| |and understandable way and meet your | | | | |

| |constitutional, legal and funders’ | | | | |

| |requirements. | | | | |

| | | | | | |

| |Examples of evidence include: | | | | |

| | | | | | |

| |Annual accounts | | | | |

| | | | | | |

| |Governing document | | | | |

| | | | | | |

| |Funders’ conditions | | | | |

|3.2 |If you are neither a charity or company your | | | | |

| |accounts are approved and presented to members| | | | |

| |in accordance with your governing document. | | | | |

| | | | | | |

| |Examples of evidence include: | | | | |

| | | | | | |

| |Copies of annual accounts | | | | |

| | | | | | |

| |Minutes of meetings | | | | |

| |As a charity your accounts are approved by | | | | |

| |trustees before filing your accounts with OSCR| | | | |

| |in good time. | | | | |

| | | | | | |

| |Examples of evidence include: | | | | |

| | | | | | |

| |Copies of annual accounts | | | | |

| | | | | | |

| |Minutes of meetings | | | | |

| | | | | | |

| |Entry on OSCR website | | | | |

| |As a company your accounts are approved by | | | | |

| |trustees before filing with Companies House in| | | | |

| |good time. | | | | |

| | | | | | |

| |Examples of evidence include: | | | | |

| | | | | | |

| |Copies of annual accounts | | | | |

| | | | | | |

| |Minutes of meetings | | | | |

| | | | | | |

| |Entry on Companies House website | | | | |

|3.3 |You meet all legal requirements regarding | | | | |

| |fund-raising for events such as raffles and | | | | |

| |street collections. | | | | |

| | | | | | |

| |Example of evidence includes: | | | | |

| | | | | | |

| |Raffle license | | | | |

|3.4 |You meet the requirements of HM Revenue and | | | | |

| |Customs and make the most of tax concessions. | | | | |

| | | | | | |

| |Examples of evidence include: | | | | |

| | | | | | |

| |Tax returns | | | | |

| | | | | | |

| |PAYE statements | | | | |

| | | | | | |

| |VAT returns | | | | |

| | | | | | |

| |Gift Aid returns | | | | |

|3.5 |You meet any requirements of funders for | | | | |

| |claiming, spending and reporting on money | | | | |

| |received. | | | | |

| | | | | | |

| |Examples of evidence include: | | | | |

| | | | | | |

| |Applications for funding | | | | |

| | | | | | |

| |Funding (grant) claim forms | | | | |

| | | | | | |

| |Records of spend in relation to funding | | | | |

| |(grants) | | | | |

| | | | | | |

| |Copies of terms and conditions from funders | | | | |

| | | | | | |

| | | | | | |

| | | | | | |

| | | | | | |

|3.6 |You keep up to date financial records and pay | | | | |

| |bills and issue invoices on time. | | | | |

| | | | | | |

| |Examples of evidence include: | | | | |

| | | | | | |

| |Accounts book/spreadsheet | | | | |

| | | | | | |

| |Records of invoices and payments | | | | |

| | | | | | |

| |Regular bank | | | | |

| |reconciliations | | | | |

|3.7 |Your management meetings review the financial | | | | |

| |situation at least quarterly. | | | | |

| | | | | | |

| |Examples of evidence include: | | | | |

| | | | | | |

| |Minutes of meeting | | | | |

| | | | | | |

| |Current balance sheet | | | | |

| | | | | | |

| |Treasurer’s report | | | | |

|3.8 |You make sure you make the most of available | | | | |

| |reliefs and concessions | | | | |

| | | | | | |

| |Examples of evidence include: | | | | |

| |Water rates exemption | | | | |

| |Business rates exemption | | | | |

| |Free waste disposal | | | | |

Section complete (

Signed

Date

| |Things to think about |Where to get help |

|3.1 |Your annual accounts are presented in a clear and understandable way and meet your constitutional, legal and funders’|

| |requirements. |

| |For charities: your accounts need to be prepared and |OSCR accounting regulations |

| |scrutinised in accordance with OSCR regulation. |

| | |ng/ |

| | | |

| | |Your local Third Sector Interface or Council for Voluntary |

| | |Service can give you help and information on producing |

| | |charity accounts |

| | |

| | |ontact-details/ |

| | | |

| | |SCVO – Financial and business management |

| | |.uk/running-your-organisation/finance-business-|

| | |management/ |

| |For Companies Ltd by Guarantee: your accounts need to be |Companies House – Accounts guidance |

| |prepared and scrutinised in accordance with company | |

| |regulation. | |

| |For Voluntary Associations (that are not charities): |OSCR receipts and payments guidance |

| |There is no regulator for your accounts and you are only | |

| |answerable to your members. You’ll need to provide |

| |accounts in line with your constitution. The OSCR |ity-accounting/receipts-and-payments-accounts |

| |guidance for receipts and payments accounts may be a good| |

| |model to use as it’s familiar to funders. | |

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|3.2 |Your accounts are approved by trustees before filing with Companies House or OSCR, or in accordance with your |

| |governing document. |

| |There is no need to lay accounts before an AGM for |Companies House – Accounts guidance |

| |approval before sending to OSCR or Companies House unless| |

| |your governing document specifically requires it. But if | |

| |you are a company you must send members a copy before | |

| |they are due to be filed with the registrar of companies.| |

| | | |

| | | |

| |It is normal to consider the accounts at the AGM and make| |

| |them easily available to members. | |

| |Things to think about |Where to get help |

|3.3 |You meet all legal requirements regarding fund-raising for events such as raffles and street collections |

| |It’s important that your fundraising is accountable |Scottish Fundraising Standards Panel – Codes of fundraising |

| |and transparent. The Codes of Fundraising Practice |practice |

| |will help keep you legal. | |

| | | |

| |If you are holding a raffle with pre-printed tickets|Institute of Fundraising - Raffles and lotteries |

| |sold before the draw you’ll normally need to have a |

| |small lottery licence from your local council. |-disciplines/auctions-raffles-lotteries-and-gamification/raffles|

| | |-and-lotteries/ |

|3.4 |You meet the requirements of HM Revenue and Customs and make the most of tax concessions |

| |Income tax and national insurance |SCVO – Tax and VAT |

| |It is the employer’s duty to deduct income tax from |

| |the pay of employees whether or not directed to do |anagement/tax-vat/ |

| |so by the tax office. Take care to check the tax | |

| |status of all people working in the hall regardless |SCVO - Payroll services |

| |of how much or little they are paid. If you are in | |

| |any doubt whether income tax is payable or not | |

| |contact your tax office. National Insurance |Your local Third Sector Interface or Council for Voluntary |

| |contributions are related to employee’s earnings and|Service may have a payroll service. |

| |are collected along with income tax under the PAYE |

| |procedures. |t-details/ |

| |Crosscheck Section 2:1 | |

| | |Cash-online - Payroll |

| | |cash-.uk/content/1/25/ |

| | | |

| | |Business Gateway – Pay: your obligations as an employer |

| | |

| | |ployer |

| |If you are a charity, using Gift Aid means that for |HMRC - Gift Aid |

| |every pound that’s given to you in donations (not | |

| |hire charges) you’ll get an extra amount from the | |

| |HMRC. |Institute of Fundraising - Gift Aid |

| | |

| | |ndraising/tax-effective-giving-and-vat/gift-aid/ |

| |Corporation and Capital gains tax |SCVO – Tax and VAT |

| |Limited companies and unincorporated organisations |

| |are liable for Corporation Tax on their profits. |anagement/tax-vat |

| |This includes all charities, with the exception of | |

| |charitable trusts, which are liable for Income Tax. | |

| |However, there are a number of tax exemptions |DIY Committee Guide - Charities, Tax and Trading |

| |available to charities which mean that they usually |article/charities-trading-tax-subsidia|

| |do not pay Corporation Tax. |ries |

| |Charitable status allows for exemption from payment | |

| |of capital gains tax. Voluntary organisations | |

| |without charitable status are not exempt from | |

| |capital gains tax. | |

|3.4 |You meet the requirements of HM Revenue and Customs and make the most of tax concessions |

| |VAT |SCVO - Tax and VAT |

| |VAT is a complicated area. Most village halls won’t |

| |be registered for VAT unless their income meets the |anagement/tax-vat |

| |threshold. Charities are eligible for some special | |

| |concessions which enable them to buy goods at zero |HMRC – Charities and tax |

| |or lower rates, including disabled access and fuel. | |

| | | |

| |As all VAT regulations are subject to regular | |

| |updating and change it is vital for voluntary | |

| |organisations to constantly review their VAT | |

| |position, possibly with the help of their | |

| |professional advisers. | |

|3.5 |You meet any requirements of funders for claiming, spending and reporting on money received |

| |It is important that you meet the terms of any grant|SCVO – Charity accounts and financial reporting |

| |fund that receive and record the income and |

| |expenditure properly and enter as restricted funds |anagement/charity-accounts-financial-reporting/ |

| |if required | |

| | |OSCR – Charity accounting |

| | | |

|3.6 |You keep up to date financial records and pay bills and issue invoices on time |

| |It’s important to keep on top of financial |Cash-online provides information on basic financial skills |

| |transactions and record keeping, pay bills and issue|needed to run successful charities and voluntary organisations |

| |invoices on time. You’ll need this information so | |

| |that you can give accurate report to the committee. | |

| | |SCVO – Financial and business management |

| | |

| | |anagement/ |

|3.7 |Your management meetings review the financial situation at least quarterly |

| |Good management of your hall means that your |SCVO – Charity accounts and financial reporting |

| |committee need up to date, regular and accurate |

| |reports on your financial situation |anagement/charity-accounts-financial-reporting |

|3.8 |You make sure you make the most of available reliefs and concessions |

| |The Scottish Government has an exemption scheme to |SCVO – Water and Sewerage Exemption Scheme |

| |help charities and Community Amateur Sports Clubs |

| |(CASCs) with the cost of their water and waste water|anagement/water-sewerage-exemption-scheme |

| |bills. The scheme is administered by the water | |

| |industry on behalf of the Scottish Government. You | |

| |need to apply each year. | |

| | | |

| |Business premises occupied by a registered charity |SCVO – Tax & VAT |

| |or registered community amateur sports club and used|

| |wholly and mainly for charitable purposes (e.g. an |anagement/tax-vat |

| |office, workshop or community building) can apply to| |

| |the local authority for relief from the unified | |

| |business rate. Charities qualify for mandatory | |

| |business rates relief of 80%. The remaining 20% may | |

| |be (and often is) granted by the local authority; so| |

| |it is possible for a charity to attain 100% relief | |

| |from rates. | |

| | | |

| |Organisations in receipt of rates relief will also | |

| |often get waste collection fees waived. Contact your| |

| |local authority. | |

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