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It is now possible to produce a set of incorporated and unincorporated charity accounts on an accruals basis. This is only permitted when using the ICHA (incorporated charities) or UCHA (unincorporated charities) chart or a chart that has been created based on either chart.
The charts are based on the ELTD chart from code 500 onwards; the balance sheet coding remains virtually identical to the ELTD chart.
Click the links below to jump to a particular
section:
Getting Started with Charities
Support
Costs & Basis of Allocation
CSV Import
Set the business type to Charity - Incorporated or Charity – Unincorporated in the Client | View tab
Set up the charitable company’s funds in Edit | Funds. An unrestricted general fund will be set up by default. If no additional funds are required all postings will be made against the unrestricted general fund.
If additional funds are required, they can be set up by clicking new. Each fund will need to be attributed against a fund type e.g. Unrestricted, Restricted or Endowment.
All postings need to be allocated to a fund. If more than the default (unrestricted general) fund exists, the user will be prompted to attribute a fund to each posting. This fund will remain the default fund selected until another fund is chosen. An unlimited number of funds can be created.
If there is more than one fund each fund will need to be treated as an individual trial balance and net off to zero, splitting out the analysis of the balance sheet across the appropriate fund.
A report showing the trial balance by individual fund may be run via Reports | Basic Trial Balance | OK | OK | OK | Display each fund in separate columns.
To post a transfer between funds, it is necessary to post two entries per fund, one within the transfer codes of 968/11-30 and the other to where the transfer is occurring. For an example of how to post a transfer see our KB Item 6015 or search 'transfer between funds' on our KnowledgeBase.
If a pension reserve
or a revaluation reserve is required, these will need to be created
under Edit | Funds and attributed
to the relevant fund type.
Set up the charitable company’s activities’ in Edit | Activities. When using certain nominal codes you will be required to attribute an activity against them, for example, code 189 grants to institutions. If only one activity is created, this will remain the default throughout posting.
Six activities will be set up for charity accounts by default. These will not be selectable in the posting screen, IRIS will automatically recognise the groups which have been posted to and show the breakdown of these accordingly.
If the charity pays grants to institutions, these grants need to be created under Edit | Grants. When posting to the code 189, grants to institutions it is necessary to select which grant the posting relates to from the pop up screen. Please note, other grants (codes, 5, 44 and 190) are not required to be setup under Edit | Grants but if used may provide a more detailed breakdown.
Charities with gross income or total expenditure above £500,000 are required to split out their support costs and attribute them against the relevant activity. To aid this process there are six individual sections on the chart (Groups 181-328). If gross income is below this threshold, the user should post to only one of these sections for the note not to be detailed in this way.
There are two alternative ways to post to Support Costs.
If the exact amounts are known per activity, under Edit | Support Costs deselect Support Costs Active for the current posting entry. When posting to support costs activities will need to be selected.
If the exact amounts are unknown under Edit | Support Costs for each main heading required in the notes, a basis of allocation per fund is required. This can be setup based on ratios or percentages. For example Management costs may need to be split across the activities based on head count. This can be achieved by selecting the magnifying glass. The settings are on a per posting entry basis and may be altered each financial year.
By default IRIS will show the totals of the Support costs in a table similar to that provided in the SORP. If a further analysis of accounts that comprise the total is required by either accounts or groups this may be provided via the data screen in Edit | Data Screens | Notes to the Financial Statements | SOFA Items | Support Costs | Analysis
To import a trial balance from excel, ensure the excel file is saved in a CSV format and the fields are in the following order: Amount, Account, Narrative, Date, Work Ref, Partner/Director/Officer (PDO), Branch, Enterprise, Fund ID, Activity ID
Compulsory fields to be completed: Amount, Account, Narrative, Fund ID and Activity ID (where applicable). All other fields may be left blank, although if required information is missing these will be required during the import.
IRIS Charities will link with the Fixed Asset Register, postings will be imported into the support costs codes. Currently, IRIS Charities does not link up to Auditor or Business Tax.
The use of aliases is being phased out, for any alternatives to the reports you will need to use Edit | Data Screens | Presentation Options
The current phase of the Charity formats will not include: Groups/Consolidations, Management reports, Lead schedules, registered social landlords, industrial and provident societies and schools. Additionally, disclosures for FRS 17 defined benefit pension schemes, Movement in provisions and Revaluation analysis are not included in this phase, to add the relevant disclosure it will be necessary to use the appropriate Freeform data screen.
IRIS will try to include many of these on future releases, as with all IRIS products we are happy to note user requests and try to include these wherever possible.