CFDG welcomes publication of SORP 2005

4th March 2005

The Charity Finance Directors' Group has welcomed the publication of the Statement of Recommended Practice 2005 by the Charity Commission.

They also expressed delighted that the SORP has taken on board so many of the recommendations made in its publication "Inputs Matter". New provisions such as the restructuring of the Statement of Financial Activities so there is a correlation between income streams and related activity costs, were put first put forward in the CFDG report.

Shirley Scott , Chief Executive said: "The aim of the SORP and of the Inputs Matter Report is to improve the quality of reporting in the charity sector so that all those engaging with the charity, whether as Trustee, employee, funder or beneficiary, can fully understand what the charity does and how it acquires and uses the resources available to it. We believe that adhering to the new SORP will help charities to achieve that aim."

"Although we are disappointed that the requirements on heritage assets will not be changed, we welcome the fact that the consultation period gave the museums and gallery sector a chance to air their concerns about this issue and we hope that their comments will inform subsequent SORP reviews."

CFDG with the Charity Commission is preparing a book of examples to accompany the SORP.  

Notes to Editor:

1. The Charity Finance Directors' Group was set up in 1987 and is an umbrella group that specialises in helping charities to manage their finance-related functions.

2. CFDG's 1000 plus members are responsible for the finances of charities with a wide variety of income levels. Over 60% of the top 500 charities are members of the CFDG. Between them our members manage some £10 billion in charity income per year.

3. 'Inputs Matter: Improving the Quality of Reporting in the Charity Sector' was released in November 2003. The report made significant, wide ranging, and occasionally controversial recommendations to improve the quality of inputs into annual reports and accounts. The report focuses on inputs into charity accounts because it was felt that charities could more successfully measure their outcomes and impact if the definitions of inputs were clarified.

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