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VT Charity template manual

1. 17 18 19 20 Any payments due under the contract shall be paid to the licensor by cheque or bank transfer or by credit card payment online within one working day of the creation of the contract All disks documents and other physical material supplied to the licensee by the licensor remain the property of the licensor If the licensor does not accept the offer by the licensee then any monies paid by the licensee shall be returned forthwith All contents of this software are suggestive and are no substitute for the exercise of professional skill by the user and no warranty is given either explicitly or by implication that any accounts produced by this software will comply with any legislative requirement SORP Accounting or Auditing Standard without the application of such professional skill by the user The licensor reserves the right to charge the licensee on a fair time basis for any time spent in assisting the licensee with understanding or operating any aspects of third party software including Microsoft Windows Microsoft Excel or VT software The manual and the templates are to be read together as one document and using the templates for any purpose is deemed to be acknowledgement that any user has assented to these terms and conditions Copyright in Excel vests in Microsoft Inc on their usual terms and conditions Copyright in the Charity templates vests in Undershot Ltd Acomb Grange Grange Lane York YO23 3QZ Th
2. 49 sorpaid com from Peter Brown amp Co Step 3 Turn Autohide off and enter analysed items in Appendices DetailPL1 Note that the detailed schedules on DetailPL2 must be completed before these appendices are completed otherwise there will be differences identified on the analysis The charity formats required by the SORP require a degree of analysis which would make the Trial Balance very cumbersome if it were all included The appendices on worksheet DetailPL1 show the analysis required by activities It would be very inefficient to reserve space for all the possible numbers of boxes in the Trial Balance Also some of the disclosure items do not readily lend themselves to automation Future releases of these templates will endeavour to automate more of the process but there will always be large areas that cannot be automated This version has automated much more than previous versions The approach used is to enter the information on the Appendix page of the template ie worksheet DetailPL1 Autohide should be turned off for this As always there are hyperlinks to assist with navigation and there are specific instructions about how to complete the schedules In order to ensure the accuracy and consistency of data you should ensure that no data is entered where there is an indication the data is automatically picked up from elsewhere For each section of income that must be analysed information can be entered in the relevant cells
3. If you have installed the templates and followed the configuration instructions the charity templates should appear in the VT file lists on the usual VT menus If the message template does not exist appears this means you have installed our templates in a folder other than the default folder or you have configured our templates with an incorrect name The remedy for this is to look on the VT file menu and identify the default folder and ensure that our templates have been installed to that folder with the correct names and that you have used the correct names when configuring them You could alternatively use the search facility on your computer to locate our templates which have probably been installed to the default folder mentioned in the manual above and the VT template folder and move our templates into the correct folder If the above situation occurs it is likely to be an error made during your installation so you should recheck all the steps you have followed in the manual However there may still be a problem even after you have fully checked the installation There is a very occasional problem that occurs with some Window Systems and some VT installations in certain environments where our templates appear in the VT menu lists after you have configured them but where they disappear when you exit Excel and do not reappear We have not been able to fully explain this phenomena but it does not prevent you from
4. When all the analysis has been entered the proof line below each section should show that the analysis reconciles to the Trial Balance If it does not do so the reasons should be investigated When the total column reconciles then the proof lines will be hidden using the autohide facility The appendix to the template is structured to accommodate six activities for detailed analysis as required by the SORP as our research showed that this would meet the needs of the vast majority of charities However if further analysis is required further columns of analysis can easily be added to a VT worksheet by using the insert column command The proof totals will need altering if this happens The column headings for activities only need to be entered in appendix 1 They will be automatically replicated in the other schedules This is done by selecting column G on the Appendix work sheet and by inserting the required number of columns to the left DO NOT OVERWRITE COLUMN G The column headings and the sign should be entered in the new columns and the amounts entered in the relevant rows The various proof totals will not include the totals of the new columns so the proof totals will not agree They should be made to agree by altering the Excel formulae in the proof total cells Alternatively if the user is happy the figures are correct the proof total can be altered to zero to suppress the proof line If fewer columns of activity are requir
5. in the PL section is self totalling and no data requires entry in the PL section Total funds column current year The first group is used to enter the Trial Balance from the constituent group company as prepared in the individual company accounts with no adjustment or variation from the figures used in the individual accounts The second group is used to make consolidation adjustments These should be documented in a supporting working paper file The adjustments are entered as negative or positive to eliminate inter company transactions which should of course contra so the balance of such adjustments should equal zero Other self cancelling adjustments such as goodwill can also be entered The third group of columns comprise the Trial Balance after adjustment and is automatic so no date needs to be entered All the columns at the foot of the Trial Balance should equal zero The Trial Balance in the third group of columns is transferred to the overall consolidated Trial balance on worksheet TB which is used for preparing the consolidated accounts To extend the number of subsidiary companies beyond two please contact Sorpaid for advice PDF created with pdfFactory trial version www pdffactory com 49 sorpaid com from Peter Brown amp Co Preparing accounts for charities with endowment funds There are specific rules in the SORP for dealing with endowment funds and there are definitions relating to the various types of en
6. some of the underlying data and checking the VT properties a Enter the Trial Balance and check for internal consistencies b Enter data in the pastel green data boxes on the Data worksheet c Check the VT Properties are properly set Entering the Trial Balance The Trial Balance is entered on the TB worksheet This is different from the usual VT Trial Balance in that the Trial Balance is analysed between Restricted and Unrestricted funds It is beyond the scope of these notes to explain the accounting principles behind this analysis which must be carried out before using the templates and adequately recorded in the underlying working papers The Trial balance has a total column which is coloured yellow and there are other yellow cells on the Trial Balance No entries should be made in any cell on the Trial Balance which are coloured yellow as these are total cells summing up other cells or are text cells which are required elsewhere by cross reference Data may be entered in blue cells There are cells which are coloured in a pastel shade of green These may be altered but great care should be taken when doing so as they are mainly categories defined in the SORP In all versions on the Trial Balance the items marked X will require analysis in detail on P amp L2 to reconcile to the TB totals In a conventional use of VT the Trial Balance is proved by checking that the totals equal zero In these templates the valida
7. templates c Remove change or obscure any of our or any third party proprietary notices labels or marks The licensee acknowledges that the licensor retains ownership of all intellectual property rights in and to the templates and any amendments made to it by us regardless of form including any back up copies the licensee shall make and subject to this licence you shall not have any right to use them PDF created with pdfFactory trial version www pdffactory com 21 The licensee may use the templates without time limit and shall be entitled to such free upgrades as the licensor may issue for the period up to 30 June or 31 December in the following the first anniversary of the date of the contract PDF created with pdfFactory trial version www pdffactory com 4 sorpaid com from Peter Brown amp Co Terms and conditions upon which the VT Charity templates are supplied cont 22 After the first anniversary of the date of the contract the licensee shall be entitled to such upgrades from time to time as the licensor shall determine provided that the licensee has paid an annual maintenance charge at the standard rate of the licensor then prevailing 23 The licensee acknowledges that the allocation of risk in this agreement reflects the price paid for the templates and also the fact that it is not in the licensor s control how and for what purpose the programme is used In no circumstances therefore will the licensor be liabl
8. using the templates The templates are there on your computer and can be used it is just that they do not appear in the VT file lists The remedy is simple Locate our templates they have probably been installed in the default folder mentioned in the installation section of this manual or you could use the search facility Select the templates one by one the file names are Indexam10 xlt Unincexemp10 xlt Unincaud10 xit Incaudit10 xlt Incexemp10 xit Corpexam10 xlt Right click on each template choose Send to from the drop down list and choose Desktop from the dropdown list This process will create a shortcut to the template from your desktop PDF created with pdfFactory trial version www pdffactory com sorpaid com from Peter Brown amp Co You can use this shortcut to directly access the template in Excel without having to use the VT file menu Excel will load up with all the VT toolbars and you will be able to use the templates in the normal way PDF created with pdfFactory trial version www pdffactory com 4 sorpaid com from Peter Brown amp Co Terms and conditions upon which the VT Charity templates are supplied Definitions SORPaid is a trademark of Undershot Ltd Peter Brown amp Co is a trading name of Undershot Ltd The licensor is Undershot Ltd a limited company registered in England company number 4114468 whose registered office is Aco
9. all included For example every source of grant aid must be listed and in some charities this can be a large number of items It would be very inefficient to reserve space for all the possible numbers of boxes in the Trial Balance Also some of the disclosure items do not readily lend themselves to automation Future releases of these templates will endeavour to automate more of the process but there will always be large areas that cannot be automated This version has automated much more than previous versions The approach used is to enter the information on the DetailPL2 worksheet of the template Autohide should be turned off for this As always there are hyperlinks to assist with navigation and there are specific instructions about how to complete the schedules In order to ensure the accuracy and consistency of data you should ensure that no data is entered where there is an indication the data is automatically picked up from elsewhere For each section of income that must be analysed information can be entered in the relevant cells If more rows are needed these can be inserted Rely on autohide to remove superfluous rows do not delete the rows as you may alter the internal consistency of the template When all the analysis has been entered the proof line below each section should show that the analysis reconciles to the Trial Balance If it does not do so the reasons should be investigated When the total column reconciles th
10. audit in the Template name box 6 Then type in unincaud8 xIt in the File name manual entry box 7 Then click on OK 8 Repeat steps 4 to 7 for each of the following templates Template Name File name manual entry Unincorporated Charity Exempt from scrutiny unincexemp10 xlt Unincorporated Charity Independent Exam Indexam10 xlt Unincorporated Audit unincaud10 xlt Incorporated Charity Exempt from scrutiny incexemp10 xlt Incorporated Charity Independent Exam Corpexam10 xlt Incorporated Charity Audit Incaudit10 xlt Any previous templates can still be accessed see Reusing templates The above steps will configure your templates for 2005 SORP compliant accounts The configuration process is continued for further templates on the next page Very occasional problem If after doing all this your templates do not appear in the VT file lists click here PDF created with pdfFactory trial version www pdffactory com 49 sorpaid com from Peter Brown amp Co Configuring your templates for first use continued The above steps will configure your optional extra templates If you have acquired the optional extra templates you will wish to configure them You should repeat steps 4 to 7 above for each of the following templates Template Name File name manual entry Consolidation of charities 2008 Incaudit1 Ogroup xit Charity with endowment funds incorporated incend10 xlt Chari
11. autohide automatically When all the analysis has been entered the proof line below each section should show that the analysis reconciles to the Trial Balance If it does not do so the reasons should be investigated All the templates have been prepared based on interpretations of the Companies Act and the SORP There are alternative ways of presenting the information which are equally valid The differences are also carried forward to step 4 on the home page where every figure should be zero before proceeding Turning autohide on may help in locating errors Turn autohide off and correct errors Particular situations Incoming Resources that have been deferred and funds carried forward or third party funds The Sorp requires disclosure of funds brought forward and carried forward analysed by source It also requires disclosure of deferred items Deferred items relate in the main to time related grants where the grant has been received in advance and the period of the grant straddles the accounting date A creditor for grants received in advance is therefore included within creditors On the other hand a surplus may arise on a fund during the year which is carried forward in reserves PDF created with pdfFactory trial version www pdffactory com 49 sorpaid com from Peter Brown amp Co The disclosure combines the requirements of both these situations There are three notes for deferred incoming resources and reserves one for d
12. installation path as C Documents and Settings All Users Application Data VT Accounts This is the default path used by our installation files Even if this is not the path used in your installation the automated installation will usually work However if when at the configuration stage see later the templates are not accessible then attempt a reinstallation by redownloading the files and when prompted by the unzipping process substitute your actual path for the default one that is prompted Previous versions of the templates will not be overwritten and can be reused on future occasions Reusing templates When you have read the covering letter in Part A click on the zip file on the CD Charity508 exe to open it The file may be displayed simply as Charity508 12 After the link is clicked click on the Run box You may then receive a security alert Please be assured that these files have been virus tested and are known to be safe for installation 13 Click on the Run box to continue This is the point at which you can insert an alternative path if you wish to overwrite the default installation 14 Click on Unzip to continue 15 You will at this point be asked for the password provided in your confirmation email 16 After entering the password click OK 17 Click OK again and close 18 If you have purchased any of the optional extra templates you will have been supplied with additiona
13. not as a range The new upgrades will reduce the number of blank rows and rather will require the insertion of a new blank row to improve the presentation of the accounts No harm can be down by row insertion using normal Excel techniques Blank in this context does NOT include lines that have a figure in it even if it is zero END OF NOTE a Turn Autohide off and complete the Trustees Report Remember this is the report of the trustees and they should provide it and approve it before it is inserted into the text of the accounts b Insert page breaks throughout the accounts and organise print layout Use standard VT techniques for this purpose Due to the unpredictability of certain situations extra blank lines have been left in on some notes In some situations this may give rise to large blank areas in accounts These can be deleted using the Excel row delete utility However great care should be taken with this and it is advisable to delete rows one ata time rather than as a group This is because there may be hidden blank lines that contain formulae Provided batches of rows are not deleted then no danger to the integrity of the template should arise c Do preview of accounts and extract page numbers for the data sheet and cover sheet etc At this stage the Balance Sheet Notes SOFA STRGL and all supporting schedules should be reviewed both with autohide off and autohide on and all the disclosure prompts should be conside
14. of analysis it is then necessary to input the breakdown of several figures into the accounts into supporting schedules The template will automatically inform the user if the schedules do not balance back to the prime figures in the accounts and the Trial Balance The accounts are automatically formatted with note numbers and page numbers enabling a full set of accounts to be printed off A PDF file can be produced so that the end product can be sent by email Throughout the templates there are comment boxes in a text box to the right or above of the particular accounts element giving the relevant disclosure requirements of the SORP or of Company Law or accounting Standards that apply to that particular element of the accounts together with links to a library of publications and reference material on the internet This text box no longer has an approval and review section to enable authority to be given for the deletion or variation of the particular item as was the case in previous releases as feedback from users said this was not required Using these comment boxes means the version of the accounts when autohide is turned off can be used as a virtual disclosure checklist in addition to the formal checklist in the checklist section There is also a built in disclosure checklist We believe that the use of the comments and the disclosure checklist should enable a fully compliant set of accounts to be produced in most circumstances The latest
15. of the template Total B by replacing the figures already in the depreciation section with the figures in the depreciation section plus the loss previously replaced in Other Operating Income ie Total A Total B treating Total A as positive In most circumstances the headings in the SOFA are the ones that are required by disclosure requirements and should not be amended If detail is required to be shown that can be given in the detailed section described below The differences are also carried forward to step 2 on the home page where every figure should be zero before proceeding Turning autohide on may help in locating errors Turn autohide off and correct errors Analysis by activity The following comments are not mandatory for smaller charities not subject to a statutory audit where a simpler approach is permitted but not encouraged The 2005 SORP limits the amount of expenditure that can go into governance or administration and requires the bulk of what would previously have been shown under these headings to be included within the activities such as charitable activities raising funds service delivery etc This analysis can be done in two ways It can be done in the supporting working papers before the figures are entered to the Trial Balance All costs except the limited amount of governance costs would be analysed directly to the activity PDF created with pdfFactory trial version www pdffactory com
16. one off or bespoke notes or accounting policies that are required in the circumstances Most notes to the accounts are either automatically linked to the trial balance or have completion notes in the text but it might be helpful at this stage to check that all the figures so far appear to be correct Step 7 Complete the narrative of text notes or delete text to autohide text only notes Turn Autohide off and use standard VT techniques to complete this stage Step 8 Compare Notes with prior year a Turn Autohide on and compare the accounts with the prior year Check to see whether any notes etc are missing b Turn Autohide off and correct any errors PDF created with pdfFactory trial version www pdffactory com 49 sorpaid com from Peter Brown amp Co Step 9 Completion stage DELETION OF ROWS IMPORTANT NOTE Users should note that due to the complexity of the SORP when autohide is initiated there is some variation as to the number of blank rows that appear particularly in the notes This occurs more frequently than would be the case with a non charity VT template In order to make the accounts look presentable it is very tempting to delete a range of blank rows However the range may contain some hidden rows and these may contain formulae that impact on other areas of the accounts Deleting such rows might cause errors in the templates If blank rows are to be deleted they should only be deleted a row at a time and
17. particularly in the CASH Flow work sheet The CF sheet if this has been selected via the VT properties dialogue box PDF created with pdfFactory trial version www pdffactory com 49 sorpaid com from Peter Brown amp Co Limitations and parameters Automatic Trial Balance input At present the templates only support the VT option direct trial balance input and they do not support automatic trial balance input from VT transaction The reason for this is the complexity involved with the required analysis of every nominal code item into the type of funds and the analysis required by activity and also the frequent change in layouts required by legislative changes Number of charities for whom accounts can be prepared There is no limit on the number of charities for whom accounts can be prepared Number of activities which can be analysed as required by the SORP The appendix to the template is structured to accommodate six activities for detailed analysis as required by the SORP as our research showed that this would meet the needs of the vast majority of charities However if further analysis is required further columns of analysis can easily be added to a VT worksheet by using the insert column command The proof totals will need altering if this happens The detailed procedure is outlined in the ten step process Endowment funds The basic templates do not accommodate endowment funds as a separate column and any endowment fund
18. ring fenced manner e The emphasis on activity accounting so that for example money expended on telephone might appear in the accounts under the activity headings fundraising ancillary trading and support costs of grants rather than under telephone e The concept of incoming and outgoing resources which may include capital receipts and payments rather than purely profit and loss items Different forms of account may be prepared depending on assets gross income and legal status Reference should be made to the detailed provisions Note that the definition in law of gross income differs from the Companies Act definition of turnover and includes capital grants and receipts and a fair value for goods and services donated in kind so that an entity that might appear to be audit exempt may not in fact be so Note that there are complex requirements for groups of charities when considering gross income and audit exemption PDF created with pdfFactory trial version www pdffactory com 49 sorpaid com from Peter Brown amp Co In these notes reference is made to gross income limits but the asset limits should not be overlooked where appropriate as an audit will be required if gross assets exceed 2 8 million Also it should be remembered that gross income figures must be annualised ie 50 000 over five months is 120 000 per annum It should be noted that a carefully crafted letter of engagement i
19. specific reports PDF created with pdfFactory trial version www pdffactory com 49 sorpaid com from Peter Brown amp Co Appendix 5 This appendix is intentionally blank PDF created with pdfFactory trial version www pdffactory com 49 sorpaid com from Peter Brown amp Co Appendix 6 Purchasing the templates An order can either be placed by using the form on the web site www sorpaid com or by contacting SORPaid direct If you use the order form on the internet then your order will be automatically processed and as soon as you have paid by credit card you will be presented with a Download Now button which will enable you to download the templates from our web site If you order by post then please supply the details required on our web based order form ie name address etc and upon receipt of your cheque we will either send you a CD or give you a password for the web site whichever you prefer Please refer to the licensing section above to calculate the fee chargeable If we have agreed special arrangements then please refer to these on the order form All cheques should be payable to Peter Brown amp Co As an alternative to payment by cheque payment may be made directly to our bank account details of which are shown on the order form on the website PDF created with pdfFactory trial version www pdffactory com 49 sorpaid com from Peter Brown amp Co Appendix 7 Installation problem
20. the fee in his her PDF created with pdfFactory trial version www pdffactory com 49 sorpaid com from Peter Brown amp Co tax return This may have VAT implications and if properly documented may save the charity a VAT charge An alternative is for the firm to pay the individual an annual retainer to sign all such certificates If so this retainer should be declared on the individual s tax return and be an expense in the firm s accounts This again may have VAT implications The report in the standard files reflects the requirement that an individual not a firm can only certify an independent examination The Charity Commission are known to be enforcing this point c Unincorporated charities exempt from external scrutiny If gross income is less than 25 000 per annum and remember gross income for this purposes includes the proviision of notional goods and services in kind then the charity is exempt from external scrutiny but must still prepare accounts and a compliant Trustees Annual Report d Unincorporated Charities Audit This applies to any unincorporated charity where the gross income exceeds 500 000 or gross assets exceed 3 26 million or where an audit is required by the governing document or by a third party Different gross income figures may apply in the case of a group of charities Clearly a registered auditor can only undertake the work but as the work is not an audit of a company the precise p
21. version of the templates version 10 01 March 2010 is compliant with the 2005 SORP as modified in June 2008 and the 2008 FRSSE and has a large number of new features that were not available in earlier versions The compilation report in previous releaes is no longer relevant and has been removed Future releases will include templ tes for ClOs when these are up and running The basic templates are Unincorporated Charities Incorporated charities Exempt from any external scrutiny Exempt from any external scrutiny Independent Examination Independent Examination Audit Audit PDF created with pdfFactory trial version www pdffactory com 49 sorpaid com from Peter Brown amp Co Overview continued There is an optional extra template for consolidating a group of charities Although these templates will produce accounts for charities with endowment funds in simple cases more complex cases will require further analysis and there is an optional endowment fund template In the past we have found that many users are able to use the basic templates even for endowment funds Charity accounting contains principles that may not be familiar to general practice accountants Some of these features are covered in this manual in outline However this manual is not intended to do any more than point users in the direction of more technically based information and should not be regarded as being in any way a comprehens
22. version www pdffactory com 49 sorpaid com from Peter Brown amp Co Enhancements and improvements in release 10 01 March 2010 since version 5 08 issued in 2009 May 09 Updated with new thresholds for accounting periods ending on or after 06 04 09 Statement on balance sheet for audit exemption revised to meet statutory guidance May 09Greater clarity on disclosures on trustees report Revised exemption limits Oct 09Company number inserted in Balance Sheet in anticipation of new regulations Dec 09Statement of directors responsibilities 1985 changed to 2006 and the word proper changed to adequate Dec 09 This template should be used only for accounting periods commencing on or after 6th April 2008 Mar 10All transitional information between old and new legislation removed Help system improved to allow all SORP and legal material to be viewed via comments Formal reports updated to accord with latest requirements Correcting error in inclusion of professional fees in Detailed summary as notified to us by a user incorporated audit and incorporated audit exempt only Note there has been a major change in which the statutory framework is explained and the guidance to users on disclsoures is presented All such items are now in comment boxes which substanitally reduces the sizes of the files PDF created with pdfFactory trial version www pdffactory com 49 sorpaid com from Peter Brown amp Co VT compatible charity templates Ope
23. when you first attempt to use the unincorporated templates it will never happen and you need not worry In such circumstances there is no conflict with your setup If it does happen to you then please take the following steps a email us to tell us you have the problem so we can keep abreast of the situation Please tell us precisely what version of Excel and windows you are using b in the meantime you can use the templates quite happily in the following way 1 open the template using the VT command open template Click OK when it prompts you that you are opening a template 2 when the template is opened immediately save it as a xls file with a suitable name in whatever folder you would normally save your accounts 3 you can then use this file in the normal way and change its properties and carry out any other VT function as normal PDF created with pdfFactory trial version www pdffactory com 49 sorpaid com from Peter Brown amp Co Appendix 3 Known errors and conflicts continued In other words you are simply using the open template command instead of open workbook command Otherwise there is no difference in the usage of the template The templates VT and Excel will work quite normally using this procedure We can confirm that there is absolutely no problem in using the method explained above to bypass this problem It will not harm your Excel or VT files or templates and the charity template
24. Another list appears and one of the options is Template Files Location That will give the location on your computer where the templates must be installed If it is not the default location you can insert the specific path when unzipping the file Previous versions of the templates will not be overwritten and can be reused on future occasions Reusing templates When you have read the covering letter in Part A click on the zip file on the CD Vista508 exe to open it The file may be displayed simply as Vista508 12 After the link is clicked click on the Run box You may then receive a security alert Please be assured that these files have been virus tested and are known to be safe for installation 13 Click on the Run box to continue This is the point at which you can insert an alternative path if you wish to overwrite the default installation 14 Click on Unzip to continue 15 You will at this point be asked for the password provided in your confirmation email 16 After entering the password click OK 17 Click OK again and close 18 If you have purchased any of the optional extra templates you will have been supplied with additional installation details and passwords for those templates You have at this stage successfully installed the templates and it now only necessary to configure the templates to VT s requirements before you are ready to prepare a set of accounts Click
25. Commissioners are to be complied with The regulations are contained within booklet CC63 CC63a or CC31 and CC32 depending upon the accounting period concerned These directions cover the nature and volume of tests to be carried out and the form that working papers should take Although the law permits an unqualified accountant to carry out some examinations it is perhaps unwise for somebody to accept appointment who is not in practice and does not have the benefit of professional indemnity insurance Even many accountants in practice are unaware of the stringent requirements of the directions of the Charity Commissioners The directions are reproduced in full in the form of a checklist in the VT templates for the preparation of accounts of Registered Charities There is also a link to the directions on the Link page of the templates It is probable that professional rules of the various Chartered Institutes and the ACCA prevent a qualified accountant from undertaking the duties of an independent examiner whatever the levels of gross income unless that person holds a practising certificate If a qualified accountant who does not hold a practising certificate contemplates accepting appointment as an independent examiner the precise position should be checked with the professional body concerned See the ACCA guidelines to which there is a link on the Link Page of the templates which probably prohibit such work unless the work is honorar
26. How Trustees should select an independent examiner How an examiner should carry out an independent examination Consultancy We offer a consultancy service to charities other accountants and trustees on afee basis that is agreed at the outset Telephone help line For a fee of 100 per year another firm of accountants can have telephone support on technical charity issues terms and conditions apply Audit If a charity is subject to audit and you are not a registered auditor we can take instructions to act as auditors where you still do the underlying accountancy work and we carry out a pure audit on terms to be agreed directly with the client There is no geographical limit to this service Money Laundering Compliance A simple set of pricedures for complying with Money Laundering requirements when acting for a charity 30 plus VAT for an unlimited number of charities renewable annually PDF created with pdfFactory trial version www pdffactory com 49 sorpaid com from Peter Brown amp Co Appendix 2 Obtaining the optional extra templates The optional extra templates are Template Name File name manual entry Consolidation of charities 2005 Incaudit1 Ogroup xIt Charity with endowment funds incorporated incend10 xlt Charity with endowment funds unincorporated uncend10 xit Contact Peter Brown amp Co to discuss your requirements PDF created with pdfFactory trial version www pdffactory com 49 sorpa
27. Note that the hyperlinks in this document may not work if the document is viewed through certain internet browsers They will work if the document is downloaded to disk sorpaid com 4 from Peter Brown amp Co Templates for producing SORP compliant charity accounts to be used in conjunction with VT Final Accounts Software Operating Manual March 2010 Peter Brown amp Co Chartered Certified Accountants and Registered Auditors Acomb Grange Grange Lane York YO23 3QZ Tel Fax 0871 288 2391 Peter Brown amp Co is a trading name of Undershot Ltd Registered in England Co no 4114468 Director P Brown Bsc Hons FCCA FCIE DchA Peter Brown amp Co has been awarded the ACCA quality Assurance Mark NOTE Excel 2007 compatibility and Vista and Windows 7 compatibility We are not aware of any compatibility issues with recent or proposed upgrades to Excel or to Vista or to Windows 7 but if any problems are experienced by users then please bring them to our attention A Vista and Windows 7 download is included in the installation package Note that the Charities Act 2006 has altered many of the thresholds and different thresholds apply for accounting periods beginning on or after 27th February 2007 beginning on or after 1 April 2008 and accounting periods ending on or after 6 April 2009 note the difference between commencing and ending Full details are in the updated templates PDF created with pdfFactory trial
28. Purchasing the templates Appendix 7 Intermittent installaion issue Terms and conditions of the use of the templates Recent bulletins posted on the website PDF created with pdfFactory trial version www pdffactory com 49 sorpaid com from Peter Brown amp Co Overview The SORPaid templates are designed to integrate with the well known VT Accounts Production software to produce accounts for both incorporated and unincorporated charities The accounts produced will comply both with the SORP and with the Companies Act and also with audit and other regulatory requirements They contain detailed checklists and prompts that will assist greatly in achieving correct disclosure The SORPaid templates use the VT Manual input of Trial balance method to input a previously prepared and fully analysed Trial Balance into a modified VT worksheet The Trial Balance is split between Restricted and Unrestricted funds and a user follows a ten step procedure from Trial Balance input to the production of final accounts The charity templates are only available with manual trial balance input and will not accommodate linked input from VT transaction in view of the complexity of different situations that can arise with charities This automatically transfers the data into a Statement of Financial Activities an Income and Expenditure Account a Balance Sheet and related notes and schedules Because the Charity SORP requires a great deal
29. aid com from Peter Brown amp Co The philosophy of the SORP and the different types of charity accounts Note that the Charities Act 2006 has altered many of the thresholds and procvedures and reports The templtes include all of these changes up to date to 28 February 2010 The Law in Scotland is different and where these differences are important they are highlighted below The concepts underpinning the SORP Unincorporated charities Receipts and Payments Accounts Unincorporated Charities The Independent Examination Unincorporated Charities Audit Incorporated Charities Under 90 000 gross income Incorporated Charities The Accountant s Report Over 90 000 gross income Incorporated Charities Audit Incorporated Charities Independent examination applies to accounting periods commencing on or after 01 04 08 The concepts underpinning the SORP The SORP 2005 is a complex document and introduces a change in emphasis from the SORP 2000 and a number of new concepts that will have an impact both on the form that final accounts will take and the methods adopted for record and bookkeeping The SORP was modified in June 2008 To an accountant who does not specialise in charity accounting there are perhaps three important underlying concepts to come to terms with These are e The importance of fund accounting that is to say accounting for funds of different types or from different sources in a
30. and Settings All Users Application Data VT Accounts This is the default path used by our installation files Even if this is not the path used in your installation the automated installation will usually work However if when at the configuration stage see later the templates are not accessible then attempt a reinstallation by redownloading the files and when prompted by the unzipping process substitute your actual path for the default one that is prompted Previous versions of the templates will not be overwritten and can be reused on future occasions Reusing templates 6 When you have read the Covering letter A click on the link to VT Charity Templates version 5 08 and download file Charity508 exe 7 After the link is clicked click on the Run box You may then receive a security alert Please be assured that these files have been virus tested and are known to be safe for installation 8 Click on the Run box to continue This is the point at which you can insert an alternative path if you wish to overwrite the default installation 9 Click on Unzip to continue 10 You will at this point be asked for the password provided in your confirmation email 11 After entering the password click OK 12 Click OK again and close PDF created with pdfFactory trial version www pdffactory com 49 sorpaid com from Peter Brown amp Co 13 If you have purchased any of the optional extra templ
31. arameters of the audit should be contained in an engagement letter e Incorporated Charities Remember incorporated charities can NEVER prepare Receipts and Payments accounts The Accountant s Report or Compilation Report This was abolished for accounting periods commencing on or after 1 April 2008 f Incorporated Charities Audit Charities whose gross income exceed 500 000 or exceed the asset tests of 3 26 million are subject to a statutory audit by a registered auditor Charities can also be subject to a none statutory audit as a result of provisions in their governing document or that are imposed by donors If a charity has a trading subsidiary then the aggregate group requirements for the preparation of group accounts and the audit of group accounts are complex It can be that charities with turnovers below 500 000 are subject to audit in such circumstances The legislation should be referred to PDF created with pdfFactory trial version www pdffactory com 49 sorpaid con from Peter Brown amp Co g Incorporated charities Independent Examination The requirements are different in Scotland For accounting periods ending on or after April 1 2009 all incorporated charities with a gross income in excess of 25 000 and which are not subject to the audit regime are obliged to have an independent examination carried out in accordance with the directions contained within CC31 and CC32 Charities whose gr
32. are legal professional and practical issues relating to the extent to which the Independent Examiner can prepare the accounts which are subsequently examined In the area of audit this is the well understood issue of self review and auditing ethical standards have addressed this issue in relation to audits and it is not unwise to follow the basic principles in relation to Independent Examination This is hinted at in the Directions and Guidance issued by the Charity Commission and was explicit in the various briefing papers leading up to the drafting and publication of CC32 In the audit field an auditor can only assist with accounts preparation in a mechanical sense where the auditor does not have to make substantive judgements in relation to the accounts The judgments made are those of the directors who on the basis of evidence supplied instruct the auditors to make adjustments This is generally taken to be that the directors must supply the auditor with a Trial Balance extracted from proper accounting records and the auditor should only in unusual circumstances be involved in the work before a proper balanced and documented Trial Balance is extracted These principles can clearly be seen to have influenced the wording of the directions in CC32 Many small charities may not be capable of preparing a Trial Balance in such a way and it is important therefore that a Chinese Wall is created between those persons in a firm who mi
33. ates you will have been supplied with additional installation details and passwords for those templates You have at this stage successfully installed the templates and it now only necessary to configure the templates to VT s requirements before you are ready to prepare a set of accounts Click here to go to the configuration stage If you require any assistance installing the templates please consult the user manual which will also be installed as a Word document in the C vicharities folder on your computer Alternatively you can email Alternatively you can email info sorpaid com Please ensure you put sorpaid in the subject line to overcome our spam filter PDF created with pdfFactory trial version www pdffactory com sorpaid com from Peter Brown amp Co Part B Vista and Windows 7 Users installing the templates themselves the instructions for Pre Vista are in the section above 5 The VT Charity templates must be stored in the same folder on your computer as your VT templates This will usually be C ProgramData VT Accounts Vista users will be installing the file Vista508 exe automatically to the required location You can confirm where your files are located by loading up Excel along the menu bar on the top of the screen is a menu item VT Final Accounts lf you select that a drop down list appears and you should select File Another list appears and one of the options is Template F
34. ccounts accord with any similar figures contained within the trustees report There are similar wordings in the Scottish equivalents The paragraph states that we can give general advice on the requirements and will assist the trustees in preparing a compliant report provided suitable text is supplied to us So it is quite proper for the Examiner to receive a draft report from the trustees review it and suggest to the trustees that they might not have included suitable text in order to comply with the requirements in say areas A and B and to request suitable text to make it more compliant The Examiner might also give examples of how other charities have worded their report in similar circumstances What the Examiner must not do is supply text to be inserted into the report Peter Brown amp Co trading as SORPAID offer an arm s length service to any charity or Examiner for whom we do not act to assist them in drafting their report In such PDF created with pdfFactory trial version www pdffactory com 49 sorpaid com from Peter Brown amp Co circumstances as we are not the Examiners we would go somewhat further than the prohibitions set out above and would suggest forms of words that the trustees may wish to consider Both charities and other Examiners find this to be a useful service which is charged on afee basis agreed on a case by case basis PDF created with pdfFactory trial version www pdffactory com 4 sorp
35. contents OSCR have indicated that as a part of their review of accounts they look for professional wording that might indicate the report is not the product of the trustees themselves The Examiner and his staff must therefore be very careful to ensure that they do not have material input into the report There are clearly sections of the report where there is a direct linkage between the accounts and the report for example in relation to Financial Performance The Examiner has to consider the consistency of the report with the accounts so should be careful to avoid situations where the Examiner is reviewing his own work The Examiner must ensure that instructions are obtained from the trustees to incorporate the figures in the accounts into the TAR This is covered in Peter Brown amp Co s standard letters of engagement These have the following clause The Trustees Report under section 45 1 of the Charities Act 1993 and Regulation 40 of the 2008 Regulations and sections 415 and 416 Directors Report of the Companies Act 2006 is as explained above the responsibility of the trustees It is not permitted for us to draft the report but we can give general advice on the requirements and will assist the trustees in preparing a compliant report provided suitable text is supplied to us You also instruct us to amend the report in relation to any accounting figures contained within the accounts so that any figures in the final a
36. dependent Examination Template This does not require a profit and loss account as all the information required is shown in the SOFA Unincorporated Audit template This is similar to the Independent Examination Template except that the precise terms and scope of the audit instructions will have to be disclosed Unincorporated exempt from external scrutiny template This is similar to the Independent Examination Template except that the precise terms and scope of the accountant s instructions will have to be disclosed in a tailored report PDF created with pdfFactory trial version www pdffactory com 49 sorpaid com from Peter Brown amp Co Preliminary steps cont Incorporated Charity exempt fronm external scrutiny as gross income below 25 000 As with all the corporate templates this incorporates the requirements of both the Charities Act and the Companies Act The precise terms and scope of the accountant s instructions will have to be disclosed in a tailored report Incorporated Charity Independent Examination This applies to accounting periods commencing on or after April 1 2008 As with all the corporate templates this incorporates the requirements of both the Charities Act and the Companies Act The report will be the statutorily required wording Incorporated Audit template As with all the corporate templates this incorporates the requirements of both the Charities Act and the Companies Act The report will be
37. dowment funds Refer to SORP 70 to 71 and Appendix 3 3 for the detailed rules relating to what should be included in the SOFA and what should be included as capital movements outside the SOFA Check that these accounts as drafted comply with the rules The basic principle is that income from the endowments is usually entered into either restricted or unrestricted funds as appropriate with only the costs of managing the endowments going into the capital movement of funds A more sophisticated template than the standard and fuller versions is available from Peter Brown amp Co to accommodate endowment funds in a separate column The standard and fuller versions of the templates do not accommodate endowment funds as a separate column and any endowment funds must be aggregated with the restricted funds and explained in detail in any notes The statement provided in the notes will apply to the majority of small charities The SORP must be fully checked for disclosures relating to endowment funds The template available from Peter Brown amp Co that deals with the endowment funds in a separate column enables those payments and receipts which alter the capital value of the endowment to be entered into the SOFA under endowment funds These items effectively create a separate income and expenditure account for the endowment fund allowing for both investment gains and management expenses to be credited or debited to the capital accounts as movements
38. e for any indirect consequential incidental or special damage or loss of any kind including loss of profits business chargeable time anticipated savings goodwill any business interruption or loss or corruption of data however caused and whether arising under contract tort or otherwise 24 The contract between the licensor and the licensee of the templates specifically excludes any liability arising to third parties under the Contracts Rights of Third Parties Act 1999 PDF created with pdfFactory trial version www pdffactory com 49 sorpaid com from Peter Brown amp Co Recent bulletins posted on the website All bulletins up to 28 February 2010 are incorporated within this manual For subsequent bulletins look on www sorpaid com PDF created with pdfFactory trial version www pdffactory com PDF created with pdfFactory trial version www pdffactory com
39. e fuller version and to secure updates thereafter there is an annual maintenance charge of 36 plus VAT If you purchased the VT Charity templates after 1 January 2009 and before 30 June 2009 you are entitled to free updates to the templates until 30 June 2010 If you purchased the VT Charity templates after 1 July 2009 and before 31 December 2009 you are entitled to free updates to the templates until 31 December 2010 If you purchased the VT Charity templates after 1 January 2010 and before 30 June 2010 you are entitled to free updates to the templates until 30 June 2011 If you purchased the VT Charity templates after 1 July 2010 and before 31 December 2010 you are entitled to free updates to the templates until 31 December 2011 PDF created with pdfFactory trial version www pdffactory com 49 sorpaid com from Peter Brown amp Co Support from SORPaid and annual maintenance charges continued Updated manual This manual is updated from time to time and the latest version can be downloaded from the internet either as a PDF file or a Word file using the following links Web based manual in PDF Web based_manual in Word format Website There is a wealth of supporting resources and technical information on our web site which is www sorpaid com PDF created with pdfFactory trial version www pdffactory com 49 sorpaid com from Peter Brown amp Co Assisting the charity in preparing the accounts There
40. e templates are supplied on the basis that while every care and effort has gone into their development they are supplied to professional persons who will be expected to use their own skill and judgment based on their experience when they use these templates Accordingly no liability can be accepted howsoever arising to any person for any loss arising from the use of these templates The templates are licensed for use on one computer only with permission to make and store a backup copy If copies are made for use on additional computers then an additional license fee is payable in accordance with the current schedule on the website www sorpaid com In consideration of the acceptance by the licensee of these terms and conditions and payment of the licence fee the licensor grants a none exclusive non assignable right to use the templates The licensee may use the templates on single personal computers or laptops to the maximum number for which a licence fee has been paid The licensee may transfer the templates from one computer to another owned by the licensee provided they are not used on more than the number of computers at any one time that the licence permits Other than permitted under this agreement or by law the licensee shall not a use copy transfer sell sub licence lease mortgage rent loan publish or distribute this programme to any other person b alter adapt merge modify translate or create derivative works from the
41. ed then the columns may be deleted Before you delete a column be certain that is what you wish It might be safe to save the file before deletion so that you can revert to the original if necessary Delete the column by selecting the column by PDF created with pdfFactory trial version www pdffactory com 4 sorpaid com from Peter Brown amp Co placing the mouse at the head of the column then using the edit menu in Excel give the delete command Note that the tables should all add up to the figures in the SOFA so there will always be the necessity for a column headed Other to include the balance of items not included in specific activity columns The default templates include headings for Fundraising and Other but these headings can be altered The differences are also carried forward to step 3 on the home page where every figure should be zero before proceeding Turning autohide on may help in locating errors Turn autohide off and correct errors Note that the Appendices require landscape printing This can be set using Excel s Page Setup feature PDF created with pdfFactory trial version www pdffactory com 49 sorpaid com from Peter Brown amp Co Step 4 Turn Autohide off and insert figures in notes where required The charity formats required by the SORP require a degree of analysis which would make the Trial Balance very cumbersome if it were all included For example every source of
42. ellow contain formulae and data should not be entered into such cells unless there is a very clear and specific reason why the formulae should be overwritten If data is entered into the cell then very great care should be taken there is not a consequential amendment to other cells in the workbook We decided against protecting such cells using the Excel protection facility for two reasons The first is that there may be occasional reasons why the layout has to be modified The second is that the Excel protection facility interacts with the VT autohide facility with unpredictable results All lines which are proof totals and which autohide when they are zero when all figures have been correctly entered are entered in red bold text All instructions on the use of the templates are shown in red bold text in a text box Such instructions will autohide automatically All hyperlinks to text websites or other data are shown with a blue underlined text_and with a pale straw background These will all autohide auomatically Exemptions available to smaller charities not subject to statutory audit are shown in green bold text in a text box Such instructions will autohide automatically On the Trial Balance those narrative cells with a light green shade should only have the text altered after careful thought All rows or columns that require figures to be entered have blue cells adjacent to them All cells which self total have yellow cells adjacent to
43. en the proof lines will be hidden using the autohide facility If you have selected to use the Cash Flow work sheet in the VT properties box then if you have not completed the analysis on DetailPL2 or have entered anything incorrectly then it is quite likely that VT s own validation processes will highlight a difference on the CF worksheet The proof lines are carried automatically to the SOFA and it might be easier to detect differences by running autohide as the differences will be highlighted in red on the face of the SOFA The differences are also carried forward to step 2 on the home page where every figure should be zero before proceeding There will often be a body of text in comments in a text box above or to the right of the start of the note which outlines in detail the provisions of the SORP or of Company Law or accounting Standards that apply to that particular element of the accounts together with links to a library of publications and reference material on the internet This means that the version of the accounts when autohide is turned off can be used as a virtual disclosure checklist These technical details will always autohide automatically PDF created with pdfFactory trial version www pdffactory com 49 sorpaid com from Peter Brown amp Co Step 2 continued Each line in each one of these schedules will autohide when zero so there is no need to delete unused lines This technique applies to grants receivable
44. er c vicharities and will copy manuals and instruction documents into that folder It is essential that users read the covering letter before proceeding to part B The covering letter is installed in the C vicharities templates folder on your computer Read Covering letter A for this installation Now go to PART B on the next page PDF created with pdfFactory trial version www pdffactory com sorpaid com from Peter Brown amp Co Installation from a CD continued Vista and Windows 7 Users _ XP and other users click as appropriate Part B XP Users installing the templates themselves Password required the instructions for Vista users follows this section 11 None VISTA users should use the installation file Charity508 exe Pre Vista installations of VT will have located the VT templates in a particular location on your computer and these templates must be installed into the same location or into the default location as shown below for the charity templates to successfully work with VT You can find out where your files are located by loading up Excel Along the menu bar on the top of the screen is a menu item VT Final Accounts If you select that a drop down list appears and you should select File Another list appears and one of the options is Template Files Location That will give the location on your computer where the templates must be installed Later versions of VT will usually have the
45. esignated funds one for unrestricted funds and one for restricted funds The totals in each one of these notes will represent revenue reserves plus capital reserves plus revaluation reserves plus the creditor for grants received in advance The note shows for each donor or source the balance brought forward which may represent all or some of the totals referred to above the amounts received in the year the amounts released to the SOFA in the financial year and the amount carried forward at the end of the year which again may represent all or some of the totals referred to above The aggregate totals brought forward and carried forward are reconciled to the total of balance sheet reserves and the creditor shown in the Balance Sheet It may be that under designated funds and unrestricted funds identifying some or all of the funds to particular donors may by inappropriate In such a case that particular part of the fund would be described as General Funds under the column heading Donor However in respect to restricted funds the donors should each be identified It should be noted that the designated funds note will require the manual insertion of the creditor figure The format of these disclosures has been developed after a great deal of careful thought and reference to the SORP but we would always welcome suggestions for alternative treatments Capital reserve and fixed asset funds and grants for fixed assets Before
46. ght assist a charity in producing this basic Trial Balance document and the Independent Examiner who examines the finished product Guidance 5 7 covers the issues involved This might create a problem for an Examiner who does not have staff and it is felt that to meet the independence requirements in relation to self review that the Examiner in such cases should ensure that an outsider takes the accounts to Trial Balance However guidance 4 7 may assist with this in relation to unincorporated charities CC32 envisages that the norm is that a full set of fully finalised accounts is produced for examination That rarely is the case but CC32 does recognise this in Guidance 5 7 The starting point for accounts preparation is a Trial Balance which is assumed to be ina fairly final form This means that at the completion of an assignment you may have two extreme versions of a file One would be where the client has produced a fully SORP compliant set of accounts for examination together with full supporting documentation even perhaps a working paper file In such a case the examination parts of the file will be completed by the examiner but only those sections of the accounts preparation file that are inherent parts of the examination process will be completed The Trial Balance may well not be completed and the various lead schedules may not be completed provided the papers supplied by the client have broken down the various items in the acco
47. grant aid must be listed and in some charities this can be a large number of items It would be very inefficient to reserve space for all the possible numbers of boxes in the Trial Balance Also some of the disclosure items do not readily lend themselves to automation Future releases of these templates will endeavour to automate more of the process but there will always be large areas that cannot be automated This version has automated much more than previous versions The approach used is to enter the information on the notes page of the template Autohide should be turned off for this Internal cross references between notes will need manual entry As always there are hyperlinks to assist with navigation and there are specific instructions about how to complete the schedules In order to ensure the accuracy and consistency of data you should ensure that no data is entered where there is an indication the data is automatically picked up from elsewhere There will often be a body of text in comments in a text box above or to the right of the start of the note which outlines in detail the provisions of the SORP or of Company Law or accounting Standards that apply to that particular element of the accounts together with links to a library of publications and reference material on the internet This means that the version of the accounts when autohide is turned off can be used as a virtual disclosure checklist These technical details will always
48. here to go to the configuration stage If you require any assistance installing the templates please consult the user manual which will also be installed as a Word document in the C vicharities folder on your computer Alternatively you can email Alternatively you can email info sorpaid com Please ensure you put sorpaid in the subject line to overcome our spam filter PDF created with pdfFactory trial version www pdffactory com 49 sorpaid com from Peter Brown amp Co b Installation from the internet Note The steps indicated below are for Windows XP or Vistaor Windows 7 and may be slightly different for other operating systems Step 1 Quick installation guide and operating manual No password required at this stage The website address for downloads is http www sorpaid com downloads deliveryindex0808 htm Step 1 on the downloading website consists of downloading the covering letter quick installation guide and manual You should click either Vista and Windows 7 or XP on the downloading website and then click where indicated to download the covering letter quick installation guide and manual The file being downloaded is vtinstall508 exe 1 After the link to the manual is clicked click on the Run box You may then receive a security alert Please be assured that these files have been virus tested and are known to be safe for installation 2 Click on the Run box to continue 3 Cl
49. hich will require disclosure in a STRGL Balance Sheet A balance sheet is required Supporting notes There is a great deal of information required to be disclosed in the notes The Trustees report The trustees report is in a specified format which can easily be adapted to meet company act requirements as a director s report PDF created with pdfFactory trial version www pdffactory com 49 sorpaid com from Peter Brown amp Co Reconciliation of figures The Charity Commissioners and OSCR will reject accounts if the balance on the SOFA does not transparently reconcile to the funds carried forward on the balance sheet Summary Information For an unincorporated charity there is the option to produce summary or extracted information for the purposes of public documents However for a corporate charity the only lawful option is to produce abbreviated accounts and in the context of a charity these are not helpful as the information they disclose is not normally relevant The various types of accounts that may be prepared are Requirements in Scotland differ a Unincorporated charities Receipts and payments accounts Accounts on a cash basis without any adjustment for accruals are only permitted if the gross income of the charity is less than 250 000 per annum and even here the recommendation of the SORP is that proper accruals accounting be adopted It is not considered good practice to prepare receipts and paymen
50. ick on Unzip to continue 4 Click OK and close It is essential that users read the covering letter before proceeding to step 2 The covering letter is installed in the C vicharities templates folder on your computer Read Covering letter A for this installation and then go to step 2 on the next page either Vista and Windows 7 or XP PDF created with pdfFactory trial version www pdffactory com 49 sorpaid com from Peter Brown amp Co Step 2 Templates download Password required in this stage Vista and Windows 7 Users XP and other users XP Users Instructions for Vista users follow this section 5 XP users will be installing the installation file Charity508 exe XP installations of VT will have located the VT templates in a particular location on your computer and these templates must be installed into the same location or into the default location as shown below for the charity templates to successfully work with VT You can find out where your files are located by loading up Excel Along the menu bar on the top of the screen is a menu item VT Final Accounts If you select that a drop down list appears and you should select File Another list appears and one of the options is Template Files Location That will give the location on your computer where the templates must be installed Later versions of VT will usually have the installation path as C Documents
51. id com from Peter Brown amp Co Appendix 3 Known problems and conflicts The following are known issues and solutions are set out in this appendix Conflict with operating systems error message contact vendor click here Error message workbook is read only click here A conflict between Excel and the templates that can occur on rare occasions with certain operating systems and how to deal with it It appears there may be a conflict between certain of the macro commands used in the templates with certain versions of Windows and Excel We have also been informed by two specialists independently that this appears to be a fault in Microsoft Excel not a fault in Windows VT or in our templates The problem only applies to certain versions of Excel and apparently only in combination with certain versions of Windows On the rare occasions that this occurs it need not cause a problem for users as it is easily overcome and it need not affect your usage of the templates When you have updated the new templates you will find you can use the VT command to Open a template with no problem However in certain rare circumstances if you attempt to use the VT command to open a workbook XL crashes and displays the message contact the vendor This is more likely to happen with the unincorporated charity templates This may not happen to you but if it does then the problem can be overcome quite easily If it does not happen
52. iles Location That will give the location on your computer where the templates must be installed If it is not the default location you can insert the specific path when unzipping the file Previous versions of the templates will not be overwritten and can be reused on future occasions Reusing templates 6 When you have read the covering letter in Part A click on the link to VT Charity Templates version 5 08 Vista version and download file Vista508 exe 7 After the link is clicked click on the Run box You may then receive a security alert Please be assured that these files have been virus tested and are known to be safe for installation 8 Click on the Run box to continue This is the point at which you can insert an alternative path if you wish to overwrite the default installation 9 Click on Unzip to continue 10 You will at this point be asked for the password provided in your confirmation email 11 After entering the password click Ok 12 Click OK again and close 13 If you have purchased any of the optional extra templates you will have been supplied with additional installation details and passwords for those templates You have at this stage successfully installed the templates and it now only necessary to configure the templates to VT s requirements before you are ready to prepare a set of accounts Click here to go to the configuration stage If you require any assi
53. in reserves The income that does not alter the capital of the fund from the endowment funds will be analysed into restricted or unrestricted columns as is appropriate The notes in the template have suitable alterations to enable the disclosure requirements to be complied with However it should be emphasised that although this template provides for any item of income or expenditure to be included in the SOFA but it is a matter of professional judgement whether or not that should be the case and whether it should be in the endowment column or in other columns Direct capital movements outside the SOFA should be summarised and entered in the Balance Sheet section of the Trial Balance under endowment funds Except for the minor amendments to the notes and the addition of a third column in the Trial Balance and the Profit and Loss Account the endowment template operates in the same manner as all other version 5 templates PDF created with pdfFactory trial version www pdffactory com 49 sorpaid com from Peter Brown amp Co Using the resource links There are various links at several points on the templates where relevant resources can be accessed However the main resource area is on the links worksheet where there are links to a wide range of publications from the Charity Commission Companies House the Inland Revenue and from professional sources These links can only be accessed through an internet connection These li
54. income in kind charitable activities activities for generating funds other operating income and support costs for grants etc A similar scheduling technique applies to grants payable and to investment income Grants payable appear in the account as a one line entry cross referenced to a detailed schedule at the end of the detailed profit and loss account showing the required disclosures Investment income appears in the main body of the account showing the required headings These headings and the related numbers should not be edited as they cross refer to the detailed schedule at the end of the detailed profit and loss account just before the grants schedule It is this schedule which should be filled in and that will update the main account The other headings in the detailed schedule to the SOFA are automatically linked to the trial balance Manual amendments to adjust the Statement of Financial Activities the SOFA Note that realised gains on fixed assets are required to be shown as other operating income whereas equivalent losses are allocated to a position lower down in the SOFA This may mean that when accounts are in a final draft in certain circumstances a manual alteration has to be made to comply with disclosure requirements This is done by replacing the negative figures Total A in the Other Operating Income section of the Detailed P amp L with zero and showing the figures for the losses in the relevant depreciation section
55. ions for the templates Finally we would welcome news of additional links to websites that we can add to the links page PDF created with pdfFactory trial version www pdffactory com 4 sorpaid com from Peter Brown amp Co Bookkeeping to assist in SORP accounting The depth of analysis required by the SORP and the specific systems of internal control required by the Charity Commission require careful thought about the systems of bookkeeping and accounting to be adopted In addition many donors have specific requirements about monitoring performance This poses two challenges for trustees charity administrators and accountants in practice The obvious one is how do you prepare a set of accounts that discloses all the information stipulated Less obvious perhaps is how do you efficiently and accurately record the detail of analysis that is required by the SORP or by donors so that when the accounts are prepared they show the correct information at the lowest possible cost in management time and accountancy fees SORPaid s charity templates can help you to produce SORP compliant accounts However software tools require a deep understanding of the concepts of charity accounting before they can be usefully employed Our training videos and CDs and our courses and seminars can help with this However as a part of our suite of services we can offer a consultancy approach With the new emphasis on analysing performance by act
56. ive guide to law or practice PDF created with pdfFactory trial version www pdffactory com 49 sorpaid com from Peter Brown amp Co Frequently asked Questions and news of updates On the website www sorpaid com you will find news bulletins posted which deal with frequently asked questions and also details of any corrections or updates that have been issued and how these may be dealt with If you encounter a difficulty with the templates please check the web site Each bulletin has a brief description of the nature of the problem in the contents which can be found by clicking on Resources and then News Bulletins Any updates arising as a result of a bulletin can be downloaded using the link and password with which you have been supplied PDF created with pdfFactory trial version www pdffactory com sorpaid com from Peter Brown amp Co Online operating manual and on disk operating manual On disk operating manual The operating manual is supplied on CD when an installation CD is purchased and is installed as a word file and as a PDF file in the following location by the installation programme C vicharities templates It might be useful to create a shortcut to the manual and place it on your desktop On line operating manual Clearly a copy of the operating manual on disk may become out of date as amendments are issued An up to date copy of the manual can be downloaded to your computer over the Interne
57. ivities rather than by nominal headings many existing accounting and reporting systems will struggle to meet the requirements and an in depth review will often be necessary The sooner such a review is undertaken the better because the costs of analysing historical information to meet the SORP disclosure requirements might be high if the systems are not put in place as soon as possible By visiting a charity and understanding what it is attempting to achieve and how it is operating we can design an overall system of internal control Such a system might involve controls over cash income system to monitor trading income systems of delegation and so on and would be tailored to the needs of the particular charity Even a very small charity could benefit from such an exercise and the costs will always be proportionate to the size of the charity Peter Brown amp Co can also carry out regular internal audit checks and one off investigations Visit our website www sorpaid com for further details PDF created with pdfFactory trial version www pdffactory com 49 sorpaid com from Peter Brown amp Co About SORPaid and Peter Brown amp Co Peter Brown amp Co is the trading name of Undershot Ltd a practising firm of Chartered Certified Accountants and Registered Auditors SORPaid is the brand name under which these templates are marketed The contact details are Peter Brown amp Co Acomb Grange Grange Lane York YO23 3QZ Teleph
58. k However if when at the configuration stage see later the templates are not accessible then follow the procedures detailed under installation from a CD or installation from the internet Previous versions of the templates will not be overwritten and can be reused on future occasions see Reusing templates Click here to install from a CD Click here to install from the internet PDF created with pdfFactory trial version www pdffactory com 49 sorpaid com from Peter Brown amp Co a Installation from a CD Note The steps indicated below are for Windows XP and Vista and may be slightly different for other operating systems Part A installing the quick installation guide and operating manual no password required 1 2 8 9 Ensure your computer is switched on Place the CD in the drive of your computer Click on the Start button on the computer desktop Click on My Computer Click on the CD drive which will probably be D or E Click on the zip file vtinstall508 exe to open it The file may be displayed simply as vtinstall508 After the link is clicked click on the Run box You may then receive a security alert Please be assured that these files have been virus tested and are known to be safe for installation Click on the Run box to continue Click on Unzip to continue 10 Click OK and close This process will create a folder on your comput
59. l installation details and passwords for those templates PDF created with pdfFactory trial version www pdffactory com sorpaid com from Peter Brown amp Co You have at this stage successfully installed the templates and it now only necessary to configure the templates to VT s requirements before you are ready to prepare a set of accounts Click here to go to the configuration stage If you require any assistance installing the templates please consult the user manual which will also be installed as a Word document in the C vicharities folder on your computer Alternatively you can email info sorpaid com Please ensure you put sorpaid in the subject line to overcome our spam filter PDF created with pdfFactory trial version www pdffactory com 49 sorpaid com from Peter Brown amp Co Part B Vista and Windows 7 Users installing the templates themselves Password required the instructions for XP are in the section above 11 The VT Charity templates must be stored in the same folder on your computer as your VT templates This will usually be C ProgramData VT Accounts Using the file on the CD Vista508 exe will install the templates automatically to the required location You can confirm where your files are located by loading up Excel along the menu bar on the top of the screen is a menu item VT Final Accounts If you select that a drop down list appears and you should select File
60. ltered For example if a note says see the information in note 20 the words note 20 will have to be manually altered This does not apply to notes on the P amp L SOFA and BS which automatically cross reference to the notes to the accounts Care should be taken to complete blank details on the detailed schedules and the notes before initiating autohide otherwise important details may inadvertently be suppressed as autohide will ignore blank items We find that a full detailed visual scan from top to the bottom of the worksheet with autohide switched off is the most effective working technique inserting figures and text as you go Due to the unpredictability of certain situations extra blank lines have been left in on some notes In some situations this may give rise to large blank areas in accounts These can be deleted using the Excel row delete utility However great care should be taken with this and it is advisable to delete rows one at a time rather than as a group and ensure that ONLY blank lines are deleted Blank in this context does NOT include lines that have a figure in it even if it is zero This is because there may be hidden blank lines that contain formulae Provided batches of rows are not deleted then no danger to the integrity of the template should arise Red text in the body of the accounts ie not in the explanatory notes will require manual editing The colour of the text can be changed to normal black after edi
61. mb Grange Grange Lane York YO23 3QZ The licensee is the legal person with whom the licensor has contracted under these terms and conditions or offers to so contract The templates also referred to as programmes are those Excel templates designed to assist in producing charity accounts in conjunction with Excel the industry standard spreadsheet programme published by Microsoft Inc and VT the addon to Excel published by VT Software Ltd The contract is any contract for the supply of templates and other documentation either by sale or licence arising either from an order in the standard form transmitted electronically from the web site of SORPaid or in other written or verbal form communicated to the licensor by the licensee Use means to load execute store transmit display or otherwise utilise the templates for legitimate business purposes Any phrase or word such as He shall include the female or plural equivalent Jurisdiction Regardless of where the purchaser may be located any contract between the licensor and the licensee in relation to the templates is governed by the laws of England and is subject to the exclusive jurisdiction of the English Courts Contractual terms and conditions 1 A contract shall be created when an offer in the form of an order is communicated by the licensee electronically in writing or verbally to the licensor and has been accepted by the licensor such acceptance t
62. mmend using the old templates for accounting periods commencing on or after 1 April 2009 as your accounts may not be fully compliant This is a point to watch particularly if you adopt the practice of copying last year s file and reusing it for this year s accounts you should create a new template file for accounting periods commencing on or after 1 April 2009 using the new templates Unlike non charity accoujts changes in formats are quite frequent and rolling figures forward using the standard VT procedures may produce wrong formats PDF created with pdfFactory trial version www pdffactory com 49 sorpaid com from Peter Brown amp Co A technical note on how the templates have been installed on your computer This manual is installed from the file vtinstall10 exe into a folder entitled C vicharities It might be useful to create a shortcut to the manual and place it on your desktop The templates themselves are stored in the following folders on your computer Which ones are the templates which are used by your installation of Excel will depend on how your Excel was installed XP users C Documents and Settings All Users Application Data VT Accounts In unusual circumstances your Excel installation may be in a different location from the above If so the templates have been installed but your Excel installation will fail to identify them when you configure your templates for first use and you will receive an error mes
63. ng an earlier year s file the detailed schedules that need to be completed to meet the disclosure requirements and which are shown in the Detailed P amp L account will only be updated by this process in those areas where an analysed schedule is not required Those items on the Detailed P amp L where a detailed schedule is required will be those sections which have a proof total which states this will autohide when the proof total agrees to the Trial Balance In these areas only it will still be necessary to enter comparatives manually on the Detailed P amp L The posting of comparatives does not work on the group accounts template and will have to be entered manually If not using a previous year s file a VT workbook should be created for the particular job by clicking on the file command in Excel then clicking on VT then clicking on New Accounts Workbook Select the type of workbook required eg Independent examination then click OK When prompted fill in the workbook properties All the above steps are standard VT procedures and should be familiar to users Having loaded up the workbook the precise status of the assignment eg audit independent examination etc should be confirmed This is done by going to Accounts Preparation Process Preliminary on the home page of the worksheet and clicking on the first step of the disclosure checklist The various templates available are Unincorporated In
64. nks may contain material provided to Peter Brown amp Co Chartered Certified Accountants Acomb Grange Grange Lane York England YO23 3QZ by third parties Those providing such material are responsible for ensuring that it complies with international and national law P Brown amp Co reserves the right to delete suspend or change the position of any such material and accepts no liability for any error or omission in it These links are to other third party sites not in the control of Peter Brown amp Co Those links are not warranted in any way and Peter Brown amp Co accept no responsibility for the contents of such third party websites PDF created with pdfFactory trial version www pdffactory com 49 sorpaid com from Peter Brown amp Co The library of standard texts These are to be found on the library worksheet and are hyperlinked from the relevant points in the template We have incorporated in these standard texts a number of examples that we have seen in real situations However we would like to develop this library of texts and would welcome any user emailing us texts in Word format that we could incorporate in future releases PDF created with pdfFactory trial version www pdffactory com 4 sorpaid com from Peter Brown amp Co Notifying SORPaid of errors improvements enhancements and suggestions These templates have been carefully researched and structured However there may be certain situations we have
65. not envisaged that may give rise to unexpected errors and feedback would be helpful to enable us to update the templates It is also possible that there are errors in the logic of the spreadsheets we hope not but with such a complex project it is possible There is also the possibility of ambiguity or lack of clarity as to how a particular situation should be treated In any of these cases it would be helpful to have in writing or by email the following A description of the problem giving details of the formulae and cells involved The circumstances that gave rise to the problem Confirmation of which of the templates gave rise to the problem If it is a matter of technical application of the SORP or of accounting standards your views on the issues concerned with precise technical references 2252 If possible please email us a copy of the entire file that has the problem within it Alternatively a printout of the relevant page would help We recognise there is a confidentiality issue here and would quite understand if the file were anonymised by the removal of distinguishing items such as client name etc However we are an ACCA firm and would regard ourselves as having the status of consultants in this regard and would therefore be bound by the relevant ACCA rules We would also welcome suggestions for improvements and enhancements to the templates We would also be delighted to receive testimonials and recommendat
66. notes eg Creditors The hyperlinks take the user to the part of the note that will be part of the substantive note usually the title of the note eg Creditors due within one year In the current version of the templates there may be a body of text in comment taxt box above or to the right of the start of the note which outlines in detail the provisions of the SORP or of Company Law or Accounting Standards that apply to that particular element of the accounts together with links to a library of publications and reference material on the internet This means that the version of the accounts when autohide is turned off can be used as a virtual disclosure checklist These technical details will always autohide automatically DO NOT DELETE ROWS UNLESS YOU ARE SURE OF THE RESULT SEE THE DETAILED NOTES FOR STEP 9 FOR FURTHER DETAILS PDF created with pdfFactory trial version www pdffactory com 49 sorpaid com from Peter Brown amp Co Preliminary steps Before proceeding decide whether comparative figures are going to be automatically transferred from an earlier year s file Differing requirements may apply for year to year eg commencing before 31 March 2008 and ending on or after 1 April 2008 If using an earlier year s file then instead of creating a work book from the file menu as described below load the file in question and save it with another file name and change the year end in the work book properties box If usi
67. o be indicated by the supply to the licensee of instructions for downloading the templates from the internet or the placing in the post a CD addressed to the licensee at the address communicated to the licensor 2 The licensor shall be under no obligation to accept the offer from the licensee 3 The contract shall incorporate all these terms and conditions except where specifically modified by a written consent by the licensor The licensee warrants that before communicating the order to the licensee he has examined these terms and conditions on the website of the licensee or in the manual of procedures which was supplied by download and has consented to them 4 Ifthe licensee does not agree with these terms and conditions then the templates must be removed from the licensee s computer and all passwords etc destroyed and licensor should be notified in writing of the position and any monies paid shall be refunded If such written notice is not received within seven days of delivery of the PDF created with pdfFactory trial version www pdffactory com templates then the user will be deemed to have agreed to those terms and conditions PDF created with pdfFactory trial version www pdffactory com 49 sorpaid com from Peter Brown amp Co Terms and conditions upon which the VT Charity templates are supplied cont 5 10 11 12 Copyright in VT vests in VT Software Ltd on their usual terms and conditions 14 15 16
68. on the internet are quite large and if you do not have broadband it is possible in some cases that your internet service provider may have not supplied you with a big enough buffer to download If you are unable to download from the internet for any reason then please contact us by telephone and we will supply you with a CD If you have just been supplied with a CD the templates will be up to date but as time marches on they may become out of date and updates can be downloaded Annual maintenance fees are payable on 30 June or 31 December each year and the passwords are changed at this point so that only authorised users can download updates If you have a valid maintenance agreement in force or you are still within the first period after purchase and have mislaid the password then please telephone SORPaid and the password will be supplied Vista and Windows 7 Users VISTA and Windows 7 users should use the installation file Vista508 exe Your data will be installed into apath C ProgramData VT Accounts Previous versions of the templates will not be overwritten and can be reused on future occasions see later XP users and earlier forms of Windows XP users should use the installation file Charity508 exe By default your data will be installed into a path C Documents and Settings All Users Application Data VT Accounts Even if this is not the path used in your installation the automated installation will usually wor
69. one 0871 288 2391 Fax 0871 288 2391 Email info sorpaid com The firm has a number of clients who are registered charities and has developed these templates for use by their own firm in preparing accounts in compliance with the revised SORP These templates are available for general use subject to the licensing and other legal terms described elsewhere in these notes Because it is assumed that any users of these templates not only have a good working knowledge of Excel and VT but also are qualified accountants then the help and support on the technical aspects of these templates is limited We are able to offer limited telephone support on initial installation but after that Peter Brown amp Co reserve the right to charge a professional fee for the time engaged Any purchaser of the templates would be advised when it was felt that a fee basis would be appropriate and the fee basis would be discussed and agreed before proceeding It is likely that because of the specialised nature of charity accounting that many users of the templates would feel they might need the benefit of technical assistance in this way and Peter Brown amp Co would be willing to assist We also are aware that our templates are used by accountants who are not registered auditors and if any such accountants have charity clients who require an audit then Peter Brown amp Co will be able to undertake such work in appropriate circumstances Fuller details of Peter Br
70. oss income exceeds 250 000 must appoint a qualified accountant as an examiner The details and procedures explained under b above Independent examination of unincorporated charities apply in very large measure to examinations of incorporated charities g Incorporated charities exempt from external scrutiny If gross income is less than 25 000 per annum and remember gross income for this purposes includes the proviision of notional goods and services in kind then the charity is exempt from external scrutiny but must still prepare accounts and a compliant Trustees Annual Report PDF created with pdfFactory trial version www pdffactory com 49 sorpaid com from Peter Brown amp Co The ten step approach to preparing charity accounts using the SORPaid charity templates See the note about hyperlinks as this is crucial to using the templates effectively The following comments are of general application at each stage of the process Text boxes that contain instructions will automatically disappear when autohide is initiated Text boxes that are a part of the body of the accounts can be made to disappear during autohide by deleting the various text prompts from the text boxes concerned This does not apply to those text boxes that will always be applicable and if their deletion is required you will have to use the VT autohide formatting tools Any internal cross references between notes will have to be manually a
71. own amp Co can be found on www sorpaid com PDF created with pdfFactory trial version www pdffactory com 49 sorpaid com from Peter Brown amp Co Appendix 1 Other charity related products from SORPAID See our website for full particulars www sorpaid com or contact us for details on 0871 288 2391 or email us at info sorpaid com Courses We have a programme of courses on charity issues We can organise bespoke courses for an individual firm or a group of firms tailored to their specific training requirements on a very cost effective basis Costs start from 300 per day plus travelling costs Working Paper files Independent Examination is a very specialist area and there is little professional guidance available We publish a model working paper file in electronic form that meets all the requirements of CC31 and CC32 Directions and Guidance and meets all the current professional and good practice standards The 2008 version is available from November 2008 at a cost of 30 plus VAT Users of the IE file who have also purchased a licence for the VT Charity Templates will be supplied with a free software link between the two applications There is no limit to how many charities the file may be used for but it is time limited and must be renewed annually DVDs and CDs We are currently updating and renewing our library of CDs and DVDs and the following are planned for publication in late 2008 or early 2009
72. prior year Check to see whether any notes etc are missing b Turn Autohide off and correct any errors Step 9 a Turn Autohide off and complete the Trustees Report b Insert page breaks throughout the accounts and organise print layout c Do preview of accounts and extract page numbers for the data sheet and cover sheet etc d Enter data in the pastel blue data boxes on the Data worksheet e Enter page numbers on cover sheet a Tailor the audit accountant s report b Ensure correct page numbers are referred to c Work through disclosure checklist and check Auditing Standards SORP and Accounting Standards Step 10 Do full review of the draft accounts correct any errors and print off drafts Disclosure checklist DO NOT DELETE ROWS UNLESS YOU ARE SURE OF THE RESULT SEE THE DETAILED NOTES FOR STEP 9 FOR FURTHER DETAILS PDF created with pdfFactory trial version www pdffactory com 49 sorpaid com from Peter Brown amp Co A note about hyperlinks Except within the text of the accounts themselves it is possible to jump between key parts of the templates using hyperlinks by clicking with the mouse on the blue underlined links In the key primary statements there is a hyperlink to every relevant element of the statement at the head of the financial statement So for example in the Notes worksheet at about row 20 there is a link to Notes in support of the Balance Sheet Following that link then gives links to the specific
73. rating Manual Contents Overview Frequently asked Questions and news of updates On line operating manual and the manual on disk VT software which must be installed before these templates are installed Installation Configuring your templates for first time use Reusing templates from previous installations How the files are installed and located on your computer The optional extra templates Conventions used in the templates Limitations and parameters Carry Forward of figures from one year to the next Importing from VT Transaction and from Sage Support from SORPaid and annual maintenance charges The philosophy of the SORP and the different types of charity accounts Assisting the charity in preparing the accounts Assisting the charity in preparing the Trustees Annual Report The ten step approach to preparing accounts and how to use the templates in practice Disclosure checklist Preparing consolidated group accounts Preparing accounts for charities with endowment funds Using the resource links The library of standard texts Notifying SORPaid of errors improvements enhancements and suggestions Bookkeeping to assist in SORP accounting About SORPaid and Peter Brown amp Co Appendix 1 Other Charity products and services from SORPAID Appendix 2 Obtaining the optional extra templates Appendix 3 Known conflicts and problems Appendix 4 Variations for charities in Scotland Appendix 5 Blank Appendix 6
74. re very willing to offer limited telephone support on initial installation and advice on technical difficulties with the operation of the software itself In practice as the templates are Excel based we have found that very rarely has there been the necessity for any detailed support although on occasion we have referred users to VT for help with aspects specific to VT Software However in the past we have found that because of the specialised nature of charity accounting many users of the templates feel they need the benefit of technical accountancy assistance Peter Brown amp Co are able to offer an annual retainer for telephone support on technical charity accounting matters for 100 per annum plus VAT This will entitle a user to up to four hours technical discussion per annum On more complex matters specific instructions would be taken If any user who did not take advantage of the annual retainer required assistance on technical accounting matters Peter Brown amp Co reserve the right to charge a professional fee for the time engaged Any purchaser of the templates would be advised when it was felt that a fee basis would be appropriate and the fee basis would be discussed and agreed before proceeding Annual maintenance charge The templates are updated from time to time and free updates will be available to download from the internet to any user up to the 30th June or 31st December after the first twelve months after purchase of th
75. red d Enter data in the pastel blue data boxes on the Data worksheet Enter data in the pastel blue data cells on the Data worksheet You will have already entered data in the pastel green cells in step 1 Some of the data is different from the usual VT templates The data sheet shows the dates of the accounting period in yellow cells As always never enter data into yellow cells PDF created with pdfFactory trial version www pdffactory com 49 sorpaid com from Peter Brown amp Co Data may also be entered showing whether the accounts are for a year or a period anda client code may be entered These are feature more extensively used in our electronic working paper files but the data is employed on the disclosure checklist At the foot of the data sheet there is text in which can be entered the page numbers of the accounts so that text will appear on the profit and loss and balance sheet referring to the pages of notes Preview the accounts and enter the correct page references in this cell e Enter page numbers on cover sheet f Tailor the audit accountant s report Do not overlook the provision of the Charities Accounts amp Reports Regulations 2005 which stipulate the contents of reports in addition to other requirements g Ensure correct page numbers are referred to h Work through disclosure checklist and check Auditing Standards SORP and Accounting Standards PDF created with pdfFactory trial version www pdffac
76. s function normally when they are used in this method ie use open template command instead of open workbook command and then act as normal thereafter Sorry for this problem but it is not of our making The following problem has been identified on certain Excel installations and comes to light when you first attempt to save a workbook using a template Occasionally due to security routines built into Excel the templates are flagged as read only on a computer installed from CD Before proceeding go into the XLstart folder from My Computer This will be a subfolder of Office or Office10 or Office11 which are themselves subfolders of Microsoft Office within the Program Files folder Right click on each of the files you have installed as named above Click on the properties tag and if the Read Only box is ticked then untick it and tick the Archive box Then click on Ok Do this for each file PDF created with pdfFactory trial version www pdffactory com 49 sorpaid com from Peter Brown amp Co Appendix 4 variations for charities in Scotland Notes for Charities Registered in Scotland The templates themselves give information about the legal requirements in Scotland The templates contain reports which are specific to Scotland but these need to be activated Go to the report section on each template and at the top of the page there is an explanation of how to activate Scotland
77. s important in accepting any charity engagement Reference should also be made to accounting standards and auditing standards in addition to the SORP as these often contain matters specific to charities The SORP Statement of Recommended Practice for Reporting and Accounting has very detailed disclosure requirements and these must be studied in depth The Primary statements required by the SORP for accruals accounting The SOFA There is a primary statement similar to a profit and loss account but not identical This is a Statement of Financial Activities SOFA which must show all incoming and outgoing resources Unlike a profit and loss account it also includes capital flows The Charity Commissioners will reject accounts if the balance on the SOFA does not transparently reconcile to the funds carried forward on the balance sheet Profit and Loss account or Income and Expenditure account For a corporate charity there is still the requirement under the companies act to prepare the profit and loss account If there is a conflict between the SORP and the Companies Acts then the Companies Acts prevail Cash Flow Statement A cash flow statement must be prepared unless an exemption has been claimed Statement of Recognised Gains and Losses If here are recognised gains and losses other than those in the profit and loss account then a STRGL is required It is likely that any charity holding investments will have unrealised gains w
78. s may well be an infrequent occurrence Because of the analysis between restricted and unrestricted funds in charity accounts the presence of formulae in cells is quite common These are all the cells on the Trial Balance that are shaded yellow Itis therefore essential that the blue cells giving rise to the totals in the yellow cells are reduced to zero before manually entering this year s new trial balance b Because of the state of continuous change in the law with charity accounts it will be incorrect to use a copy of last year s file as the basis for this year s accounts as a new template will be required to comply with the law This will mean that the entire trial balance both current and comparative will require to be manually entered into the template that is to be used for this year We would recommend that a template is commenced ab initio each year using the current templates applicable to that year s accounts This may involve say half an hour of extra work in manually entering the figures PDF created with pdfFactory trial version www pdffactory com 49 sorpaid com from Peter Brown amp Co Support from SORPaid and annual maintenance charges Technical support with the templates Because it is assumed that many users of these templates not only have a good working knowledge of Excel and VT but also are qualified accountants then the help and support on the technical aspects of these templates is limited We a
79. s must be aggregated with the restricted funds and explained in detail in any notes The statement in this note will apply to the majority of small charities The SORP must be fully checked for disclosures relating to endowment funds A more sophisticated template may be purchased from Peter Brown amp Co to accommodate endowment funds in a separate column PDF created with pdfFactory trial version www pdffactory com 4 sorpaid com from Peter Brown amp Co Carry Forward of figures from one year to the next There is a standard procedure within VT that transfers enables a copy of last year s file to be used by automatically transferring figures from last year s trial balance to this year There is an icon in the toolbar that enables this to be done gt In earlier versions of these templates because of the complexities of some of the programming issues involved this did not always work correctly on every occasion Improvements were made to this in the July 2007 update but the matter has been fully corrected in this release and the update facility will work as intended by the normal VT routines However caution should still be used for two reasons a When using this routine a VT message will indicate that where a cell contains a formula in the current year TB then although the data will be correctly transferred to the comparative year the formula in the current year will not be overwritten In none charity accounts thi
80. sage when you try to create a VT workbook In such cases you can simply deal with the problem yourself or alternatively you can telephone Peter Brown amp Co for assistance To deal with it yourself locate the active folder for Excel by searching for XLStart When you have found it copy and paste the templates from one of the three locations mentioned above to the correct location Vista and Windows 7 users C ProgramData VT Accounts PDF created with pdfFactory trial version www pdffactory com 49 sorpaid com from Peter Brown amp Co The optional extras The following optional extra templates can be purchased using the order form at the end of this manual Consolidation of charities 2005 Incaudit1 Ogroup xit Charity with endowment funds incorporated incend10 xlt Charity with endowment funds unincorporated uncend10 xit The endowment fund templates have additional columns to accommodate the extra disclosure requirements However the basic templates can be used for this purpose in smaller or more simple cases PDF created with pdfFactory trial version www pdffactory com 49 sorpaid com from Peter Brown amp Co Conventions used in the templates A system of colour coding of text and spreadsheet cells has been used throughout the templates to indicate various matters to the user In all versions the following conventions apply All cells shaded in blue may have data entered into them All cells shaded y
81. shown as mandatory some information must be shown even if the text states that such circumstances do not apply To fail to disclose a mandatory item will mean that the accounts do not comply with the regulations It would be unwise to delete or autohide a mandatory note unless it is clearly not applicable in the circumstances A non mandatory note can be hidden by deleting the text in the sample and autohiding The Trustees report There are extensive headings which we believe cover the vast majority of disclosure requirements In each text box when the disclosure requires a mandatory item to be disclosed then this is highlighted by the word MANDATORY This of course can be edited out and replaced by the text appropriate to the case Where a note or disclosure is shown as mandatory some information must be shown even if the text states that such circumstances do not apply To fail to disclose a mandatory item will mean that the accounts do not comply with the regulations It would be unwise to delete or autohide a mandatory note A non mandatory note can be hidden by deleting the text in the sample and autohiding PDF created with pdfFactory trial version www pdffactory com 49 sorpaid com from Peter Brown amp Co Step 6 Insert any one off or bespoke notes or accounting policies Firstly Turn Autohide on and review work so far Turn Autohide off and correct any errors Secondly Using standard VT techniques insert any
82. stance installing the templates please consult the user manual which will also be installed as a Word document in the C vicharities folder on your computer Alternatively you can email Alternatively you can email info sorpaid com Please ensure you put sorpaid in the subject line to overcome our spam filter PDF created with pdfFactory trial version www pdffactory com 49 sorpaid com from Peter Brown amp Co Configuring your templates for first use Having successfully installed the templates on your computer you must now set them up as working templates within VT Load Excel and then use the following steps to confirm that the VT software is correctly installed 1 2 3 4 Click on the tools menu Click on the Add ins menu Confirm that the VT Final Accounts and VT Functions Library are both ticked Click on the cancef button on the Add ins option box to ext from the tools menu Now set up the templates within VT by using the following steps 1s Click on the VT Final Accounts tab on the menu bar If you are using an old installation of VT then you may have to look under the main Excel file menu and select VT and proceed to step 3 below 2 Click on the file menu that drops down from the VT Final accounts menu item 3 Click on Template List 4 Click on the Add button 5 Then type in Unincorporated charity
83. t There is a choice of a Word file or a PDF file The manual can be downloaded by following the steps below 1 Ensure your computer is switched on 2 Load your web browser and go to http www sorpaid com downloads vtmanual doc 3 When the file is opened click on the File menu and save the file using the Save as Command and save it into the folder c vicharities 4 When prompted click OK to overwrite the existing file Repeat the process for the PDF file using http www sorpaid com downloads vtmanual pdf You will need to have Adobe acrobat installed on your computer to read the PDF file This manual will be up to date at all times PDF created with pdfFactory trial version www pdffactory com sorpald com amp from Peter Brown amp Co VT software VT Final Accounts consists of an add in program and statutory final accounts templates for Microsoft Excel 95 or later The add in program extends the functionality of Excel and provides features such as automatic note numbering and the automatic hiding of blank rows and notes It also provides an easy way of printing out multiple sheets of an Excel workbook with all the pages correctly numbered A separate add in program VT Data Export enables accounts data for unincorporated businesses to be transmitted to tax return software VT Final Accounts does not have its own program icon It is accessed entirely from within Excel VT Final Accounts prod
84. the SORP 2000 it was often the case that accountants would create a capital reserve fund to represent funds used to acquire fixed assets with grant aid There was extensive correspondence on this matter with the Charity Commissioners culminating with a letter from them dated 20 March 2002 which can be copied to users on request The thrust of this correspondence is that the term Capital Reserve may be misleading in view of the more general use of the term in published accounts The alternative and acceptable way of dealing with this has been provided for in the revised templates Where funds have been granted to purchase a fixed asset they are restricted until spent on the asset The funds when spent may then be credited to a fixed asset fund The fixed asset fund is restricted if the donor restricts the use to which the asset must be put or places conditions upon its disposal If there are no such restrictions ie once the asset has been purchased the donor is no longer concerned with the issue and then the funds may be credited to an unrestricted fixed asset fund As an asset is depreciated then the amount of the fixed asset fund may be reduced by transferring the amount of depreciation to reserves Whether this transfer is to restricted or unrestricted reserves will depend on the circumstances The SORP 2005 lays down specific guidelines in these areas and they are referred to in the templates PDF created with pdfFactory
85. the statutorily required wording Remember unless the charity falls above the Companies Act audit thresholds then the audit is a Charities Act audit NOT a Companies Act audit This means the wording of the report is different the duties undertaken are different and the requirement to file resignation notices does not apply Planning guidelines and checklists Reference is made in parts of the templates to The Charity Commissioners Directions contained within booklet CC63 and CC31 These relate specifically to independent examinations The directions are however a useful guide to other areas of charity accounting The Charity Commission also produce a number of other booklets for the guidance of those preparing accounts These should be reviewed together with any relevant Auditing or Accounting Standards and the SORP 2005 itself The SORP Statement of Recommended Practice for Reporting and Accounting has very detailed disclosure requirements and these must be studied in depth The accountant should then work through the remaining items under preliminary as described on the home page making appropriate work plans etc It is beyond the scope of this manual to describe the full planning stages of an assignment but these should meet the requirements of all applicable standards and guidelines PDF created with pdfFactory trial version www pdffactory com 49 sorpaid com from Peter Brown amp Co Step 1 Entering the Trial balance
86. them On the home page the ten steps to accounts production are shaded with grey cells The conventions on the following page apply in addition to the conventions shown above PDF created with pdfFactory trial version www pdffactory com 49 sorpaid com from Peter Brown amp Co All cross references to the SORP and guidelines on how to comply with the SORP and any other disclosure requirement and professional and technical guidelines are shown in comment boxes in a text box either above or to the right of the relevant item Such instructions will autohide automatically In all versions any shaded cells will disappear when the final accounts are produced On the Trial Balance the items marked X will require analysis in detail on worksheet DetailPL2 to reconcile to the TB totals and to include the totals in the Detailed Schedule to the SOFA In addition to the items requiring analysis for the Detailed Schedule to the SOFA several items will require analysing or manually entering on the notes to the accounts All items that require analysis will if analysed incorrectly show up as an error either on the SOFA or the Balance Sheet or in the notes and on the home page These errors will be clearly indicated as an analysis imbalance or similar Whenever an error of analysis is highlighted it is very often going to be the case that the VT balancing and proving button the 123 button is also going to indicate an imbalance
87. ting using the usual Excel buttons DO NOT DELETE ROWS UNLESS YOU ARE SURE OF THE RESULT SEE THE DETAILED NOTES FOR STEP 9 FOR FURTHER DETAILS The next pages set out the ten step process in details PDF created with pdfFactory trial version www pdffactory com from Peter Brown amp Co 49 sorpaid com Preliminary steps and the subsequent ten step process The outline of these steps is shown below The more detailed narrative should be viewed via the links Preliminary To meet the planning requirements of the Charity Commission and of professional bodies accounting standards and auditing standards Step 1 a Enter the Trial Balance and check for internal consistencies b Enter data in the pastel green data boxes on the Data worksheet c Check the VT Properties are properly set Step 2 Turn Autohide off and enter analysed items in detailed PL2 Step 3 Turn Autohide off and enter analysed items in Appendices in DetailPL1 Step 4 Turn Autohide off and insert figures in notes where required Step 5 Turn Autohide off suppress the inappropriate accounting policies and notes in the trustees report Step 6 Turn Autohide on and review work so far Turn Autohide off and correct any errors Insert any one off or bespoke notes or accounting policies Step 7 _ Turn Autohide off and complete the narrative of text notes or delete text to autohide text only notes Step 8 a Turn Autohide on and compare the accounts with the
88. tion of the figures is taken a little further and there are figures at the bottom of the Trial Balance which are carried forward on the Step 1 on the Home Page All these totals should be zero for the Trial Balance to be correct This checking procedure validates the following Interfund transfers Balance Sheet movements in depreciation to Profit and Loss depreciation and impairment charges Brought forward items on fixed assets depreciation and funds These differences if any are summarised in the schedule at the bottom of the Trial Balance entitled Proof of internal consistency of accounting entries When the Trial Balance has been correctly entered and totals to nil the next stage of the process can be commenced The Data sheet Enter data in the pastel green data boxes on the Data worksheet Do not enter any further data at this stage Some of the data is different from the usual VT templates The data sheet shows the dates of the accounting period in yellow cells As always never enter data into yellow cells The VT Properties Check the VT properties dialogue box and ensure that all the settings are correct PDF created with pdfFactory trial version www pdffactory com 49 sorpaid com from Peter Brown amp Co Step 2 Turn Autohide off and enter analysed items in Detailed PL2 worksheet The charity formats required by the SORP require a degree of analysis which would make the Trial Balance very cumbersome if it were
89. tory com 49 sorpaid com from Peter Brown amp Co Step 10 Review of the draft accounts and print off drafts Do full review of the draft accounts correct any errors and print off drafts Remember when printing the Appendices from DetailPL1 that the Appendices require landscape printing This is achieved by using the Page setup Feature of Excel PDF created with pdfFactory trial version www pdffactory com 49 sorpaid com from Peter Brown amp Co The disclosure checklist This is built into the templates but can be purchased separately for 10 plus VAT It contains a checklist derived from CC63 or CC31 Directions issued by the Charity Commissioners and from the SORP together with a disclosure checklist fully cross referenced to the SORP The checklist shows those disclosures that are mandatory for all charities distinguished from those disclosures that only apply when circumstances of a particular charity require it The checklist also indicates whether the VT template can accommodate the required disclosure or not The fact that the template can accommodate the disclosure does not mean that the disclosure is automatic There are many cases where the disclosure has to be manually input but the facility is there to accommodate the disclosure In those rare or unusual cases where the VT template does not accommodate the disclosure a bespoke note should be drafted to cover the circumstances PDF created with pdfFactory
90. trial version www pdffactory com 49 sorpaid com from Peter Brown amp Co Preparing consolidated group accounts The template should be installed as described in the installation section of this manual and as described on the CD supplied The template is configured as for an audit but if required for non audit cases it merely requires the alteration of the certificate and of the note at the foot of the balance sheet detailing the exemption It is not anticipated that a consolidation template will be commonly required for non audit cases The template is designed for small groups and there may be further disclosure requirements in the case of a larger group but these can be inserted by reference to a standard disclosure checklist The template is designed for a three member group ie holding company and two subsidiaries but can be extended without limit to larger groups This is done as described below The template has four Trial Balance worksheets The worksheet TB is automatically completed from the other sheets and there is no need to enter data This Trial Balance is the TB of the consolidation itself The other three Trial Balance worksheets are TB 1 TB 2 and TB 3 Each of these comprises three groups of columns Each group of columns contains the following four individual columns Unrestricted funds PL only Restricted funds PL only Total Funds and Prior Year Total The Total funds column current year
91. trial version www pdffactory com 49 sorpaid com from Peter Brown amp Co Step 5 Suppress the inappropriate accounting policies and notes in the Trustees report Turn Autohide off and the consider the accounting policies and notes in the trustees report Accounting policies As always there are hyperlinks to assist with navigation and there are specific instructions about how to complete the schedules In order to ensure the accuracy and consistency of data you should ensure that no data is entered where there is an indication the data is automatically picked up from elsewhere There will often be a body of text in comments in a text box above or to the right of the start of the note which outlines in detail the provisions of the SORP or of Company Law or accounting Standards that apply to that particular element of the accounts together with links to a library of publications and reference material on the internet This means that the version of the accounts when autohide is turned off can be used as a virtual disclosure checklist These technical details will always autohide automatically There are extensive headings which we believe cover the vast majority of disclosure requirements In each text box when the disclosure requires a mandatory item to be disclosed then this is highlighted by the word MANDATORY This of course can be edited out and replaced by the text appropriate to the case Where a note or disclosure is
92. ts accounts except for the smallest charity Clearly incorporated charities are not able to prepare accounts on a receipts and payments basis There is no fixed format laid down for preparing accounts on a receipts and payments and for this reason we do not supply a template b Unincorporated Charities The Independent Examination For accounting periods ending on or after 1 April 2009 The regulations permit unincorporated charities with a gross income of less than 500 000 and whose gross assets are below 3 26 million to have an independent examination rather than a more formal audit This is only provided either the governing document or a grant aider of the charity does not require an audit The reference to income for previous years and to the level of expenditure has been abolished An independent examination may be carried out by an unqualified accountant but the law is that if the gross income exceeds 250 000 then a qualified accountant must be used PDF created with pdfFactory trial version www pdffactory com 49 sorpaid com from Peter Brown amp Co The regulations governing an independent examination There are very stringent rules covering the appointment of an independent examiner and the duty of trustees to ensure the examiner is competent to carry out the work An Independent Examination is not a procedure to be undertaken lightly experience as an auditor is desirable if the directions issued by the Charity
93. ty with endowment funds unincorporated uncend10 xit If you would like details of how to obtain these optional extras then click here After following all the above steps you should exit from the template list and your templates will now be available for use If when when you first attempt to save a workbook using a template and obtain an error message saying that the worksheet is read only this is a security routine built into Excel and is a known problem See Appendix 3 for how to deal with it Reusing templates from earlier installations The templates you have just installed are the up to date versions containing current statutory requirements All the file names end in the suffix 10 Previous installations have file names ending in the suffix 8 or 5 and will be valid for earlier legislative requirements It may be that when preparing old overdue accounts a user wishes to use the old templates This is not a problem as the current installation has not overwritten the old templates which remain on the computer If you have used the standard file names suggested above then you may have pointed the computer towards the new files rather than the old but all that is necessary to reactivate the old files and run them alongside the new ones is to repeat steps 4 to 7 above but using as a descriptor something like Independent Exam old version and a file name indexam5 xlt or indexam8 xlt We would not reco
94. uces accounts from trial balance stage upwards It also contains an optional extended trial balance VT Transaction a separate package which runs directly in Windows can be used to record day to day transactions or to process incomplete records A trial balance can be entered either directly into Excel or automatically obtained from VT Transaction The program is produced by VT Software Swan Centre Fishers Lane LONDON W4 1RX Tel 020 8995 1142 Fax 020 8995 1763 Email info vtsoftware co uk Web www vtsoftware co uk It is assumed that any user of the VT templates for the preparation of accounts of Registered Charities is fully aware of all the operating features of both Excel and VT and is able to use the program effectively Because this knowledge is assumed Peter Brown amp Co reserve the right to levy a fee for any support related to the use or installation of Excel or of VT Software products PDF created with pdfFactory trial version www pdffactory com 4 sorpaid com from Peter Brown amp Co Installation of charity templates from SORPaid Before installation you must first have installed VT Final Accounts and Excel addon programme available from VT software The templates will not operate if these programmes have not been installed The templates can be supplied on a CD or can be downloaded from the internet Most users will be able to download these files from the internet with no problem However the zip files
95. unts and these retained by the examiner and are cross referenced in the IE File PDF created with pdfFactory trial version www pdffactory com 49 sorpaid com from Peter Brown amp Co The other extreme would be where all that is supplied is a Trial Balance and where funds analysis and SORP drafting need to be done In such a case all the relevant sections of the accounts working paper file will be completed together with the examination file itself The aim should always be to avoid duplication of work already done by the client provided it is clear this can be relied upon and to carry out the examination in the most time efficient way PDF created with pdfFactory trial version www pdffactory com sorpaid com from Peter Brown amp Co Assisting the charity in preparing the Trustees Annual Report While it is permissible to assist the client with the preparation of the accounts there must be much greater circumspection in relation to the Trustees Annual Report There are statutory provisions and detailed guidance that make it clear that the TAR must be owned by the trustees as a body It is not the work of the Chairman or the Treasurer and most certainly not the work of the Independent Examiner It should be drafted and considered by all trustees before being finally approved by them as their report The Trustees may delegate the drafting of parts of the report provided they accept full responsibility for its
96. y and in respect of an entity with a gross income of less than specific levels of income As an independent examiner is just that independent then honorary work might suggest some kind of gratuity to the entity which may prejudice independence and under the SORP a value must be put upon the work and be treated as income and expenses It is suggested that non practising certificate holders proceed with caution VERY IMPORTANT LEGAL AND PROFESSIONAL NOTE An independent examination must not be signed in the name of a firm but in the name of an individual Hence the report is worded with l and me rather than we and our Steps should be taken to ensure that professional indemnity cover extends to certificates signed in the name of an individual instead of the firm and the letter of engagement should be between the charity and the independent examiner not his or her firm If qualified the authorisation department of the professional body must also be satisfied that the individual has authorisation by way of a practising certificate For sole practitioners this will in fact not be significant and the fee will be included in the VAT return and accounts of the firm For partnerships and incorporated practices on the other hand it would be sensible to ensure that either payment for fees is made direct to the independent examiner by the charity or that the firm acts simply as a conduit The independent examiner should declare

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