News

Accounting and reporting

29 November 2017

CFG submits consultation response to Annual Return 2018 Survey

CFG has submitted its proposed revisions and recommendations on charities Annual Return 2018. Our response draws on the evidence gathered through our consultation process with our members and the wider sector.

Where next?

Events »

Thursday, 13 March 2025
Technical Update Conference More »

News »

Tuesday, 10 December 2024
A comprehensive update for faith-based organisations More »

Our recommendations are summarised below:

CFG welcome the effort that the Charity Commission has made to seek to improve the layout and presentation of the Annual Return in order to make it more user-friendly. The Charity Commission is also to be commended for its efforts to engage charities in user testing, which CFG members have engaged in, so that it is able to get the best designed interface possible.
However, we are concerned that the additional questions that the Charity Commission is seeking to include will eliminate most of the time savings that this new approach will generate. Feedback from members indicates that the new questions will actually lead to the Annual Return becoming much more burdensome for charities, particularly those that have more complex financial structures such as those that work overseas or deliver public services.
We are concerned about the lack of a rationale behind many of the new questions that the Charity Commission wishes to add to the Annual Return. There is a concern that the Charity Commission is seeking to collect data in the hope that there will be a productive use for it, rather than having a clear plan for what the information will be used to achieve.
The lack of resourcing of the Charity Commission in recent years means that the regulator has not been in a position to adopt digital accounting reading technology, such as iXBRL, which could reduce the administrative burden on charities. Rather than asking charities to manually populate the data it wants to have access to, the Charity Commission should make the case to government for investment in digital technology to improve its operations.
It is important that the Commission’s reach does not extend its grasp and that it only focuses on those areas of risk where there is both a pressing need and where there is the resource to act upon the data received. The Charity Commission should not hide behind a “wall of data” when regulating the sector.
CFG were also disappointed with the Commission’s decision to issue a press release in the week before the consultation deadline finished which said that responses had been “largely positive”. The Charity Commission opens itself up to accusations that it is seeking to lead or influence responses towards more positive feedback. We have emphasised to the Charity Commission that they must not be seen to be shaping or seeking to influence consultation responses.

You can read our recommendation in full.

« Back to all news

News

CFG submits consultation response to Annual Return 2018 Survey

Related Content

Media release: 80% UK charities say they will have to cut costs

A message to our members

New faces at CFG: Welcome Kath and Sue!

Presentation: Finance as the Turnaround Leader

A year of purpose and empowerment

Scotland charities and 31 December filing deadlines

Sector experts join forces on charity investment governance

Charities and insolvency: a briefing (updated March 2023)

CFG's Trustee's Annual Report 2021/22

Help the Charity Commission develop digital reporting

Cash Held as Investment

Financial disclosure reporting checklist: Charities SORP (FRS 102)

CFG Annual Conference gets off to a flying start

Nonprofit storytelling

CFG responds to first ever consultation on developing global financial reporting standards

Finance Focus July 2021

HSBC Private Banking leads the way for CFG's Annual Conference 2021

Finance Focus June 2021

Finance Focus May 2021

Finance Focus April 2021

CFG Briefing: Budget 2021

Finance Focus January 2021

Finance Focus November/December 2020

Finance Focus October 2020

Welcome to IFR4NPO

Finance Focus September

Coronavirus: financial reporting issues for charities

How to guide: Covid 19 Charities SORP Committee Guidance

Finance Focus July 2019

Annual Report 2017-18: Empowering Your People

Finance Focus May 2018

The key to good governance - truly understanding the business

Sarah Atkinson - Have your say on the annual return for charities

Do I need a fraud response plan?

Fraud and the 3 C's

CFG has submitted a response to the Financial Reporting Council’s invitation to comment on the exposure draft of Practice Note 11: The Audit of charities in the United Kingdom (PN 11)

How can charities ensure they work towards gender equality in their organisation?

What can charities learn from the recent fraud cases?

Record management in charities: a toolkit for improvement

Annual Report 2016-17

IFS 2017 Green Budget – the good, the bad, and the worrying?

Responsible Record Keeping: what do voluntary organisations need to know?

Consultation response - Research exercise on charities SORP (FRS 102)

You must not miss your chance to shape the next SORP

CFG Consultation Response for Matters of Material Significance

Tony Armstrong looks at Devolution: working with local organisations to transform public services

Devolution is our chance to advocate for the most vulnerable

CFG's SORP Survey

Record management in charities: a toolkit for improvement

EU Referendum: What could this mean for charities?

Another day, another opportunity for charities to engage in a consultation

Friday Afternoon Fraud

Is the SORP FRS 102 working for you?

Which SORP is right for you?

Banking for Charities

Annual Report 2015-16

Hunting for the silver lining; the IFS, the economy and charities.

What did the Romans ever know about data protection?

Cuts to BLF could have big financial consequences for charity sector

What’s the risk? Implications of the summer budget for housing associations

Audit or independent examination?

Why is transparency and reporting important for charities?

A chance to restart the social investment conversation

Can charities help end the ‘pushmi-pullyu’ of local government spending to support prevention?

Caron’s comment: can profit and social change mix?

Audits, thresholds and transparency

Best foreign exchange practice for Charities and NGOs - white paper

Are charities losing their voice?

Vision for sector post-2015. What did the politicians have to say at the CFG Annual Conferece?

Making CFG fit for the future

Annual Report 2013-14

Accounting at the sharp end: A report from the Community Accountancy Conference 2014

'Professionalism' is not a dirty word

A change in economic outlook- is your charity sinking or swimming… tell us!

Accounting for different charity structures

CFG has its say on the Charities SORP consultation

CEO pay - the wrong reaction?