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Challenges and uncertainties

Surveying trustees' annual reports in the charity sector

This past year has been one of change as charities tackled the introduction of FRS 102 and a new Statement of Recommended Practice (SORP). Charities have been challenged to provide a clear vision with balanced reporting of achievements, successes and lessons learned.

In our previous survey, we reflected on the poor use of key performance indicators (KPIs) in reports and questioned whether charities could ‘raise the bar’ when telling their story under the new SORP. You will see from our review that KPIs remain under used across the sector, with around only a third of larger charities reporting against at least one KPI (where a target was clearly set and reported against). However, when considering key management personnel disclosures, how the charity mitigates risks, the details provided on reserves, reports have become more transparent in compliance with the new SORP.

This is our first survey under the new SORP and we look at the transition and compliance with the new SORP across a range of areas, focussing on the trustees’ annual report, but sometimes considering the information provided in the statement of financial activities (SOFA), balance sheet and notes to check the consistency of presentation and information throughout the trustees’ reporting.

Challenges and uncertainties: Surveying trustees' annual reports in the charity sector
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