Charity Grant
mowzer
Registered Posts: 67 Regular contributor ⭐
Hi
Not sure if this is a silly question, but i'm preparing the accounts of a small charity which has received a grant during the year of about £30,000. They had not used it by the year end and i am unsure of where to put it in the accounts.
Should it just be shown as a debtor in the balance sheet and disclosed in the notes?
Please advise :001_smile:
Not sure if this is a silly question, but i'm preparing the accounts of a small charity which has received a grant during the year of about £30,000. They had not used it by the year end and i am unsure of where to put it in the accounts.
Should it just be shown as a debtor in the balance sheet and disclosed in the notes?
Please advise :001_smile:
0
Comments
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Hi Mowzer,
If you have received a grant then surely this would be a credit?
If the grant was given for a specific reason then I would put this into a restricted fund account at the bottom part of the balance sheet to be drawn upon at some point in the future.
Poodle0 -
Thanks
It is for something specific so that helps0 -
I would show it as deferred income on the balance sheet, it should not hit the SOFA.0
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Thanks0
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I'm sure Steve will correct me if i'm wrong here but this is dealt with under SSAP 4:
http://www.frc.org.uk/asb/technical/standards/pub0399.html
As the funds have been received but not spent at the year-end I would think that they would be held as a current liability on the balance sheet.
Regards
Dean0 -
Hi
I usedto be employed by a large university that was a charity and regularly received restricted funds.
I used to treat these as follows:
On receipt the funds were credited to a 'restricted funds' reserve. As the funds were spent for the restricted purpose matching amounts were journaled as income to the SOFA.
I also had to add a 'restricted funds reconciliation' note to the accounts.
Unless the SORP has changed then I would imagine that this is still what you have to do
Poodle0 -
Dean,
SSAP 4 deals with Government Grants, rather than charitable grants. SSAP 4 is considered to be somewhat beyond the scope of charities as there is a 'SoRP'.
It is a long time since I have done any work on charities and am a bit out of date, but I do know the income recognition for charities has been recently revamped. I have provided a link which should answer your queries:
http://www.stewardship.org.uk/documents/SORP_2005_detailed_draft.pdf
I think section 6 might shed some light for you all.
Kind regards
Steve0 -
Thanks Steve,
I tried to find this document but could not
Poodle0 -
Good morning,
just tagging onto the good points raised previously;
either show as restricted or unrestricted funds,-- restricted if monies are
designated for specific purposes,
best wishes,
paulr.0 -
Dean,
SSAP 4 deals with Government Grants, rather than charitable grants. SSAP 4 is considered to be somewhat beyond the scope of charities as there is a 'SoRP'.
It is a long time since I have done any work on charities and am a bit out of date, but I do know the income recognition for charities has been recently revamped. I have provided a link which should answer your queries:
http://www.stewardship.org.uk/documents/SORP_2005_detailed_draft.pdf
I think section 6 might shed some light for you all.
Kind regards
Steve
Thanks a lot
I feel a lot more confident seeing it for myself :001_smile:0 -
I work for a charity and it should be shown in the SOFA and a credit balance on the balance sheet under deferred income.0
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Thanks James
I only do accounts for the one charity voluntarily, so needed a bit of a reminder about where things go!
Think i've got it sorted now :001_smile:0
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