Question relating to charity assets

FionaMessenger
FionaMessenger Registered Posts: 1 New contributor 🐸
in General accounting discussion
I do the bookkeeping for a charity (CIO) I also work for, for about 2 years. I have effectively copied how it has been done in the years previously, but in the course of my training I am wondering if a certain aspect has been done right. I am a Level 3 student, the accounts are signed off by an external accountant.

Our yearly return is expressed as a detailed SPL, itemised income and expenses accompanied by a statement from the CEO.

The charity is a music school, and over the years has been donated various musical instruments. These are loaned out to students for a 'donation'. I would guess that the saleable value of these instruments is probably somewhere in the region of £10K - some are very cheap, some are quite valuable but there are a lot of them.

As far as I can see, these instruments have never been classed as assets, and I am thinking they should be and that we should also have an SFP.

The question I have is that is there any circumstance whereby these would NOT be regarded as the charity's assets, before I go to my boss and tell her she needs to value them and agree depreciation rules and declare them on an SFP. I am not sure if they are regarded as the charity's property, or the CEO's and does that make a difference. Given that the previous person who did these accounts was fully qualified, this potential oversight seems ridiculous. Do we have to have an SFP as a CIO?

Any insight and experience on this gratefully received!

Comments

  • shamilkaria
    shamilkaria Registered Posts: 101 Dedicated contributor 🦉
    Hi @FionaMessenger

    I hope you are well?

    Because it is charity accounting their rules are slightly different they follow SORP / FRS 102. The below link may help you answer your question. Its from Gov.UK and if you do a search for donated goods etc it should hopefully give you a guide.

    https://assets.publishing.service.gov.uk/media/5e6102c286650c513b442f14/charities-sorp-frs102-2019a.pdf

    Good luck, I hope you find what you are looking for in that link. Just keep in mind the accounting for charities is slightly different their requirements can differ depending on the size for example some dont get audited etc for example.

    I hope this helps you.

    Kind regards

    Shamil

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