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Voluntary Action Scotland Conference 2012 Lisa McGhee Acting Development Manager

Voluntary Action Scotland Conference 2012 Lisa McGhee Acting Development Manager. Outline of session. A brief reflection on: OSCR Online SCIOs Some discussion around: Our engagement with the (old) CVS Network Our engagement with the (new) TSIs And an update on: Reorganisation.

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Voluntary Action Scotland Conference 2012 Lisa McGhee Acting Development Manager

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  1. Voluntary Action Scotland Conference 2012 Lisa McGhee Acting Development Manager

  2. Outline of session A brief reflection on: • OSCR Online • SCIOs Some discussion around: • Our engagement with the (old) CVS Network • Our engagement with the (new) TSIs And an update on: • Reorganisation

  3. OSCR Online

  4. OSCR Online The new online service to help charities: • submit their Annual Return (AR) and Supplementary Monitoring Return (SMR) forms online • Submit annual accounts online • update charity details online

  5. Thinking about OSCR Online? • Easy to use • Prevents errors in completing forms • Saves time and money • Access from OSCR website • Available 24/7

  6. But its not all about online filing… • There is enhanced information available on the Scottish Charity Register • Expenditure figures • For larger charities, an analysis of income and expenditure via pie charts • We’ve introduced streamlined AR and SMR forms • Quicker and easier to complete • Overdue submissions are highlighted in red • Area for OSCR notes is included

  7. How do I register? • Charities indicating a preference for online filing were automatically registered for the new online service • You can register at any time for online services through the OSCR website • Online tutorials available

  8. Changes to the Return forms (1) Annual Return form • Simplified and no longer includes all the standing data • Now requires expenditure for the period • Asks for number of charity trustees at the end of the period • Asks for the number of paid staff at the end of the period • Includes an identifier question 5

  9. Changes to the Return forms (2) Supplementary Monitoring Return form • Some questions removed as these are included on the Annual Return form • Removal of the section on connected trading companies • Full balance sheet information to be given where previously we asked for highlights • A further identifier question is included 5

  10. SCIOs

  11. What is a SCIO? • Scottish Charitable Incorporated Organisation (SCIO) • SCIO is a new legal form, which allows Scottish charities to incorporate without having to become companies

  12. Why the SCIO? Long standing concerns about unincorporated charities: • Charity trustees have personal liability • Members liable to contribute if wound up • No legal identity - charity trustees undertake transactions on the charity’s behalf • Creditor confidence - no public notice of dissolution

  13. Why the SCIO? What about the company limited by guarantee? • Offers limited liability • Offers separate legal identity • Is credible to third parties (esp. creditors) • BUT • Regulated both by OSCR and by Companies House

  14. Key features: OSCR’s role OSCR is the regulator of the legal form, not just its charitable status, so: • same role as for other charities • plus it’s OSCR who incorporates the SCIO • and it’s OSCR who dissolves the SCIO (not just giving consent)

  15. Key features: the Register The existence of a SCIO as corporate body depends on its entry in the Scottish Charity Register, so: • No such thing as a SCIO without charitable status • When a SCIO is removed from the Register, it ceases to be a SCIO

  16. Key features: creditor protection Elements of protection for creditors: • Solvent dissolution: application notice is publishedand the SCIO must write to its known creditors • Insolvent dissolution: notice of application is published, sequestration procedure followed thereafter • Creditor-led sequestration (through court): notice of sequestration is published

  17. Compliance – what’s different? Differences from other charities: • Some charity trustee duties apply to members • Duty to keep and supply to public a register of charity trustees • Duty to keep and supply to members a register of members • References to SCIO status

  18. Preparing accounts – what are the requirements? • Accounting requirements are as for an unincorporated association: • Receipts and payments accounts for SCIOs up to £250k income • Accrued accounts for SCIOs over £250k income

  19. Constitutions • Basic elements of a SCIO constitution are required (no steer on the exact form and content): • Name and purposes • Restrictions on powers • Structure • Procedural rules (meetings, quorum, voting rights) • Charity trustee rules (appointment, withdrawal, remuneration, conflict of interest) • Membership rules (appointment, withdrawal) • Purposes for which surplus assets may be used on dissolution

  20. How many SCIOs are there? • Quite a few! At the end of August 2012: • 238 SCIOs incorporated since 1 April 2011 (out of 1131 new charities altogether) • Proportion increasing – 77 SCIOs so far this year out of 267 total new charities • 103 applications from unincorporated charities to move to SCIO • 5 applications to convert company to SCIO

  21. Discussion

  22. Charity Reorganisation

  23. Amended regulations due soon! • Amended Regulations due to come into effect on 1 November 2012 • Updated OSCR Guidance expected soon Key changes: • Fast track process for charities with an income under £1k (13-week turnaround; no publication) • Regulations allow for representations for and against a proposed reorganisation scheme • Updated OSCR Guidance expected soon! 4

  24. Restricted Fund Reorganisation

  25. New to 2012! Restricted fund: “property (including money) given to a charity for a specific purpose and in respect of which conditions have been imposed as to its use” If a charity does not have the power to vary the terms of a restricted fund nor has the power to vary/remove a condition imposed on the charity in relation to the use of the fund, it can ask OSCR to approve a ‘restricted fund reorganisation scheme’. 4

  26. More on restricted funds Similar to charity reorganisation - fairly technical. For us to approve an application: • The reasons for reorganising the restricted fund must reflect one of the five conditions set by the legislation • Reorganisation must fulfil the (one) outcome set by the legislation • The charity must declare that it has been unable to ascertain the wishes of the donor (and is therefore applying to OSCR to reorganise instead)

  27. Regulations due late 2012 • Regulations due to come into effect on 1 November 2012 Points to note: • Fast track process for restricted funds with an income under £1k (13-week turnaround; no publication) • Regulations allow for representations for and against a proposed reorganisation scheme • New OSCR Guidance expected soon 4

  28. Thank you for listening Please visit our website www.oscr.org.uk and subscribe to OSCR Reporter

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