# Charity reporting & accounting needs to change, says SORP panel

- Link: https://fundraising.co.uk/2019/06/07/charity-reporting-accounting-needs-to-change-says-sorp-panel/
- Published: 2019-06-07T09:00:26+01:00
- Author: Melanie May

**Charity reporting and accounting must be refocused with the views and needs of
the users of charity reports and accounts at their centre, the SORP governance review
panel has found.**

The panel was set up to review the future development of charity reporting and accounting
and has now published its final report making a number of recommendations under 
five key themes.

It has made the recommendations to ensure that the way that charities report on 
their work and account for their income under the Statement of Recommended Practice(
SORP) meets new public expectations and is fit for the future.

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The Charities SORP (Statement of Recommended Practice on Accounting and Reporting
by Charities) sets out the financial reporting requirements that apply to almost
all charities preparing accounts, designed to give a true and fair view.

The [final report](https://www.gov.uk/government/publications/charities-sorp-governance-review-2018-to-2019)‘
s recommendations include:

 * The needs of the wider public and beneficiaries require a refocusing of the SORP
   and greater simplification of reporting requirements for smaller charities
 * The SORP Committee should be retained but reforms are needed regarding size, 
   composition and clarification of the respective roles of the SORP-making body
   and SORP Committee
 * Broader and ongoing engagement is needed with a much wider group of stakeholders
   if the SORP is to continue to be fit for purpose
 * The sector and charity regulators should collaborate to identify and codify best
   practice in non-statutory financial reporting

Launched by the UK and Republic of Ireland’s four charity regulators, the review
took place during 2018 and early 2019, and included a public consultation and events
for participants to share their views. The 36 recommendations will now be submitted
to the charity regulators for consideration and response.

Charities SORP Committee Governance Review Panel Chair, Professor Gareth Morgan,
said:

> “I was delighted when the charity regulators launched this Review and honoured
> to act as the Independent Chair. As an academic, and as a charity practitioner,
> I am aware of the strengths of the Charities SORP but I have also been aware of
> concerns expressed by some. Our consultation led to a wide range of really constructive
> suggestions, and I am confident that if the Panel’s recommendations are implemented
> the SORP will be considerably more effective in future.”

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   10 June 2019)
 * **[Donor withholds €250,000 over governance concerns](https://fundraising.co.uk/2019/09/26/donor-withholds-e250000-over-governance-concerns/)**(
   26 September 2019)
 * **[Charity Governance Awards issue last call for entries](https://fundraising.co.uk/2020/01/16/charity-governance-awards-issue-last-call-for-entries/)**(
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