Media regulator Ofcom has published ‘Community radio: volunteer input’, containing guidelines for community radio stations that wish to use volunteer time as part of station turnover (e.g. when calculating allowed income from sponsorship).

Download in pdf, 112KB, from http://www.ofcom.org.uk/radio/ifi/rbl/commun_radio/volunteerinput.pdf. Community Media Association will be producing more detailed guidance shortly (http://www.commedia.org.uk).

An updated version of the Charity Commission’s directions and guidance on Independent Examination of Charity Accounts (CC31) in England and Wales brings it up to date in terms of legislation and accounting regulations.

It also addresses the inclusion of charitable companies in the statutory IE regime from 1st April 2008 and the new ‘Duty to Report’ to the Commission on certain issues (the old Direction 12) has been completely re-written with greater detail and a change of emphasis. The duty applies to any work carried out from 1st April, with the other provisions applying to accounting periods beginning on or after 1st April 2008.

In web or pdf versions from http://www.charitycommission.gov.uk/publications/ccpubsar.asp.

(From Fiona Gordon, ACIE)

A final consultation on a new Financial Reporting Standard on Heritage Assets follows an earlier discussion paper and exposure draft.

Third Sector reports that proposals which would have required charities to spend resources on valuing assets that hadn’t had a purchase price or prior valuation have been dropped. Download the Financial Reporting Exposure Draft: ‘Heritage Assets’ (FRED 42), in pdf, 212KB.

Deadline for responses 10th October.

The first systematic look at the effectiveness of Receipts and Payments (annual) accounts used by smaller charities, carried out on behalf of the Association of Charity Independent Examiners, found a very wide range of views.

Professional accountants and non-accountants alike had views ranging from believing that the R and P approach is clear and effective to serious concerns and that even the smallest charities should be required to produce SORP accounts.

The report ‘The Use of Receipts and Payment Accounts for Financial Reporting by Smaller Charities’ argues that the R and P regime is not flawed but needs additional investment and attention to make it work. In the long run the law should be changed to allow for regulations on R and P accounts, with a formal standard created in the meantime.

Download the report from http://www.shu.ac.uk/research/cvsr/outputs.html

HM Revenue and Customs has issued an alert on scam emails with a fake HMRC heading, asking for banking details so that a repayment can be issued.

HMRC Charities will never contact your charity or Community Amateur Sports Club by email for this type of information. http://www.hmrc.gov.uk/charities/scam.htm.

HM Revenue and Customs has launched a consultation on ideas to simplify the VAT partial exemption rules, inviting comments on the three partial exemption areas identified as simplification priorities by businesses: standard method, de minimis rules and Capital Goods Scheme.

HMRC Brief at http://www.hmrc.gov.uk/briefs/vat/brief3008.htm, or go direct to the consultation document (pdf, 289KB). Respond by 30th September.

Given the importance of partial exemption (and its complexity) to many medium and large charities, Charity Finance Directors’ Group is encouraging responses and has a briefing note via http://www.cfdg.org.uk/cfdg/inf_con_partialexemptioncaptialgoods.asp.

Unity Trust Bank has announced a Community Asset Transfer loan account, for any charitable, voluntary or community group taking on a community asset transferred from public ownership under the government scheme.

News item, or go direct to account details at http://www.unity.co.uk/CAT.

This year’s Risk Survey from Charity Finance Directors’ Group with PKF is exploring the sector’s “risk appetite” - the level of risk with which organisations are comfortable.

To find out more and complete the survey, see http://www.pkf.co.uk/charitiessurvey.

The Charity Commission has updated its guidance ‘Trustee expenses and payments’ (CC11, at http://www.charitycommission.gov.uk/publications/cc11.asp), in light of the Charities Act 2006 changes which allow charity trustees to be paid for providing goods and services.

It gives answers on such questions as
* when trustees can be paid for supplying goods and services;
* what to do about accountability and management of conflicts of interest;
* when it might be appropriate to pay a trustee for their trusteeship; and
* what does and does not count as reasonable expenses.

Plaza Publishing News Alert reports a major shake-up in charity sector audit and accounts expertise, with the well-known expert Pesh Framjee and four of his team at Deloitte moving to competitors Horwath Clark Whitehill. Both firms audit significant numbers of major charities.

News item at http://www.charityfinance.co.uk/home/content.php?id=1976&pg=15&cat=58.

SROI UK is providing a resource and networking opportunity for anyone interested in the development of the concept of Social Return on Investment, measuring the social value of an organisation’s work.

The network launched at the SROI Exchange conference in Manchester recently. http://www.sroi-uk.org.

Senior professionals with extensive experience in charity accounting and financial management have their last chance to apply for this experience to be recognised for a Diploma in Charity Accounting from the Institute for Chartered Accountants in England and Wales. This route will close at the end of July.

ICAEW information: http://www.icaew.com/index.cfm?route=142832, Third Sector news item at http://www.thirdsector.co.uk/News/813822/ (registration required).