Integrated Reporting
Posted: Thursday 3 June 2010
The Charities and Trustees (Scotland) Act 2005 (the “Act”) requires charities to report to OSCR on an annual basis. The information obtained by OSCR is used as part of its annual monitoring of charities and to update the Scottish Charity Register.
In October 2009, OSCR launched a consultation on its ‘Integrated Reporting’ proposals. At that time, OSCR had been in operation for over 4 years and it was felt that a review of the information supplied by charities and how it is used by OSCR was appropriate to ensure that it remains relevant and of interest to both charities and the public.
Revised Reporting Regime
Four key aspects were identified in the development of a revised reporting regime:
- a review of the Register;
- a review of OSCR’s annual monitoring programme;
- the streamlining and integration of the Rolling Review programme into the annual monitoring programme; and
- the introduction of online services.
Proposals for Change
OSCR has now published the results of the consultation, with the majority of those who responded being in favour of ‘Integrated Reporting’. The following proposals for change are due to be implemented:-
- Revised annual monitoring programme
All charities registered in Scotland are currently required to comply with certain annual reporting requirements, including the submission of annual accounts to OSCR. Changes to the requirements will include a significantly reduced and simplified Annual Return and a revised Supplementary Monitoring Return form to avoid duplication.
OSCR’s Rolling Review programme, which assesses individual charities to determine whether they meet the charity test under the Act, will be incorporated into the revised annual reporting requirements.
Thematic reporting (in addition to individual assessment) will be introduced. This will enable OSCR to investigate how compliance with the Act (including meeting the charity test, for example) can best be integrated with the revised annual monitoring programme.
- Revised Scottish Charity Register
The new Register will draw on the information obtained via the annual monitoring programme and include graphically presented financial data for all charities. OSCR will not publish charity annual accounts or lists of charity trustees, but the additional information is intended to provide a more complete picture of a charity’s financial state.
- OSCR Online
Online services will allow charities to update specific details held by OSCR and complete their annual reporting requirements online. This will provide a more flexible and accessible way of updating records, and enables charities to maintain the accuracy of the information published on OSCR’s website.
The Next Steps
Any changes which lessen the burden of compliance for charities are to be welcomed.
These proposals will be presented for final approval to OSCR’s Board later in 2010 and it is intended that the revised reporting programme will be in place by no later April 2011.
Morton Fraser’s Charities Team is led by Adrian Bell and has considerable experience in the formation of, and provision of ongoing advice to charities in Scotland including advising on incorporation, mergers and regulatory matters. The team adopts a cross-departmental approach drawing on both corporate/commercial experience and private client trust experience.
