The Institute of Certified Public Accountants (CPA) has joined forces with the Disability Federation of Ireland (DFI) to produce a best practice guide on financial management policies and procedures for Community and Voluntary organisations. The series of guides aims to assist such organisations meet the standards set out in the Charities Bill 2007, published in April 2007 by the Department of Community, Rural and Gaeltacht Affairs.  The 4 guidance documents below provide a straightforward framework for Community and Voluntary organisations to keep proper accounts:

 

 

Key Features of the Charities Bill 2007 (704KB)

 

The Charities Bill 2007 contains significant legislative changes for the sector.  This guide reports on the key features of the Bill to equip Community and Voluntary organisations for the changes that lie ahead of them.

 

Guidance on the Preparation of Annual Accounts for Community and Voluntary Organisations (2MB)

 

One of the major impacts of the proposed Charities Bill is the obligation to file annual report and accounts. Although the exact structure of annual accounts is yet to be established, when preparing their accounts it would be prudent of organisations to consult the Statement of Recommended Practice: Accounting and Reporting by Charities (SORP 2005).  This includes the statement of financial activities (SoFA), which is designed to show all incoming resources, all resources expended and reconcile all changes in funds held by the organisation. This document lays out a typical SoFA.

Internal Control Checklist for Community & Voluntary Organisations (2MB)

 

This document is designed to assist organisations evaluate their performance against internal control recommendations by answering a simple set of Yes/No questions under the headings Governance, Income, Expenditure and Reporting.  If the answer is ‘No’ to many of these questions, it may be advisable to re-evaluate procedures within the organisation.

 

Budgeting and Variance Analysis for Community and Voluntary Organisations (2MB)

 

One of the objectives of good budgeting is to provide a base against which actual financial results can be compared. This guidance documents sets out the format of a simple Income and Expenditure statement, comparing Actual with Budget.  Community and Voluntary organisations must investigate all causes of variance and take appropriate action; indicating what the cause was, and what is be done to rectify the situation.