All charities must keep accounting records and prepare accounts.
Registered charities must also prepare an annual report to accompany their accounts and make these documents available to the public on request. These documents should give the reader a clear picture of the financial health of the charity, including its main activities and impact, its sources of income, its expenditure and its assets.
The annual accounts and reports of registered charities with an annual income of over £25,000 are freely available for public scrutiny on the Charity Commission’s website.
All charitable companies irrespective of size and all other charities with an income of more than £250,000 must prepare their accounts in accordance with the Statement of Recommended Practice (SORP).
The SORP requires that larger charities (income over £500,000) in their trustees’ annual report must include in their financial review an explanation of any factors that are likely to affect the financial performance or position going forward.