Hoja de trabajo “RBS” (Requerimiento Bruto de Solvencia)

England and Wales

1. In England and Wales the Charities Act 1993 as amended by the Charities Act 2006 (the ‘1993 Act’) provides the primary legislative framework for charity regulation by CCEW. In particular CCEW is responsible for the registration, supervision and regulation of charities that are not exempt. A public register of charities is maintained. All charities must register with CCEW unless:

 _{gross income in the financial year is £5,000 or less; or}

 _{the charity is excepted from registration and gross income in the financial is £100,000}

or less; or

 _{the charity is exempted from registration by order or regulation.}

2. Under the 1993 Act as amended, CCEW may by order require any person to furnish them with any information in their possession which relates to any charity and is relevant to the discharge of their functions. These powers extend to all charities whatever their legal form. Certain types of charity may also be monitored by other bodies, for example, by the Higher Education Funding Council for England in the case of universities in England.

Excepted charities

3. Excepted charities are regulated by CCEW. They are called excepted charities because they have been excepted from registration with CCEW by order or regulation. However, with effect from 31 January 2009 excepted charities with a gross income of more than £100,000 in a financial year must register with CCEW.

4. Examples of excepted charities include charities connected with churches and chapels belonging to various Christian denominations, armed forces charities wholly or mainly concerned with the promotion of efficiency of the armed forces and Scout and Guide groups.

5. In addition, a number of previously exempt charities became excepted on 1 June 2010 including the University of Wales, Student Unions in England and Wales, the Colleges of the Universities of Oxford, Cambridge and Durham, Eton and Winchester Colleges, the Church Commissioners and the Representative Body of the Welsh Church.

6. Excepted charities are required to prepare annual accounts and are subject to the same audit or examination requirements as registered charities. If registered, they must also prepare an annual report and annual return and file them and their accounts with CCEW. Even if unregistered, they can be required under s.46 of the Charities Act 1993 to prepare an annual report and to file it together with their annual accounts.

Exempt charities

7. Exempt charities in England and Wales are excluded from CCEW’s supervision and monitoring. From 2010 onwards, principal regulators are being appointed for different classes of exempt charities, to promote compliance with charity law. Exempt charities do not register with CCEW, nor do they submit accounts and annual returns. However, they do have the same status and tax benefits as other charities and must comply with general charity law and they can seek advice and apply for Schemes and most enabling orders. Most exempt charities are listed in Schedule 2 of the Charities Act 1993 and are generally subject to their own statutory and regulatory provisions. Examples include English universities, many maintained schools, and many national museums and galleries. 8. Where no suitable principal regulator can be identified for a class of exempt charities, that

class of charities will lose its exempt status and become excepted. A number of previously exempt charities became excepted on 1 June 2010 and are listed in paragraph 5 above.

9. Registered charitable societies within the meaning of the Friendly Societies Act 1974 or the Industrial and Provident Societies Act 1965 in England and Wales are also currently exempt charities under Schedule 2 of the 1993 Act. However, it is anticipated that these classes of charities other than those which are registered providers of social housing will become excepted some time in 2011.

10. The 1993 Act requires the accounts of exempt charities to be prepared on a ‘true and fair’ basis. The accounting, reporting and audit requirements placed on exempt charities will also be dependent on how such charities are constituted and any specific statutes or regulations applying to them. For example, if constituted as companies then reporting rights and duties will apply.

Scotland

11. In Scotland the main primary legislation is the Charities and Trustee Investment (Scotland) Act 2005. Supervision of charities registered in Scotland is carried out by OSCR. OSCR’s statutory functions are to:

 _{maintain the Scottish Charity Register (including granting charitable status);}  _{encourage, facilitate and monitor compliance with the 2005 Act (Scotland); and}  _{identify and investigate apparent misconduct, following which it has the power to take}

remedial action. Northern Ireland

12. CCNI was established in 2009 and is in the process of assuming responsibility for the registration and monitoring of charities from the Charities Branch of the Voluntary and Community Unit of the Department for Social Development. The old regulatory framework under which charities operated is provided primarily by the Charities Act (Northern Ireland) 1964 and the Charities (Northern Ireland) Order 1987, are in the process of being replaced by new provisions in the Charities Act (Northern Ireland) 2008. Some of the 2008 Act’s provisions have been commenced, such as those which established CCNI. However, at present, under section 3 of the Charities Act (Northern Ireland) 1964 the Department for Social Development may, with the consent of the Attorney-General, require any person having in his possession any documents relating to a charity to give the documents (or copies) to the Department if it has reason to believe that the charity’s property may have been concealed, misapplied or withheld. The legislation is widely drawn and would cover both audit clients’ documents held and auditor’s own working papers.

13. The new 2008 Act will provide for audit requirements in Northern Ireland and these are the same as those which apply to charities in England and Wales. The relevant sections of the Charities Act (NI) 2008 have not been commenced, and until they are, section 3 of the Charities Act (Northern Ireland) 1964 is the effective statutory requirement which applies to auditors. Therefore, there are no statutory provisions relating to auditor’s rights to information and explanations at this time. As full access to information is fundamental to the proper conduct of an audit in accordance with ISAs (UK and Ireland, an auditor who is unable to obtain all the information and explanations it considers necessary for the purposes of forming an opinion will qualify the auditor’s report accordingly. Similarly no legislation covers auditor’s reports to trustees at present.

Friendly and Industrial and Provident Societies

14. There are relatively few remaining charitable friendly societies – the Financial Services Authority regulates those that remain. The primary legislation relating to charitable societies is the Friendly Societies Act 1974, although new registrations under this Act are not permitted. Societies can be incorporated under the Friendly Societies Act 1992 but the purposes defined in Schedule 2 of this Act are unlikely to be charitable. A charitable

incorporated society is not an exempt charity. A number of charities, primarily Registered Social Landlords, are constituted as industrial and provident societies.

15. The accounting requirements for industrial and provident societies are set out in the Friendly and Industrial and Provident Societies Act 196856, which require accounts to be prepared giving a true and fair view. All industrial and provident societies are required to submit an annual return, including the accounts, which are public records. Similar provisions apply to charitable societies registered under the Friendly Societies Act 1974. 16. In Scotland, charities which are registered under the Friendly Societies Act or the

Industrial and Provident Societies Act are still subject to the provisions of the 2005 Act (Scotland) and 2006 Regulations (Scotland) (as amended). Registered Social Landlords in Northern Ireland register under the Industrial & Provident Societies Act (Northern Ireland) 1969, and are also required to register with the Department of the Environment.

56 The Friendly and Industrial Provident Societies Act 1968 is to be renamed the Co-operative and Community Benefit Societies Act 1968.