Year End Accounts (Accruals) - Other Notes
This support article provides guidance on how to complete the 'other notes' section for Year End Accounts.
For information on completing other sections of the Year End Accounts, please see these further support articles:
IMPORTANT: Before creating accounts, you must complete all of the year-end checks needed to ensure the financial data in your accounts is correct - find out more.
Note: If you have any questions about completing any of the fields within this section, you will need to contact your Independent Examiner. Whilst our support team is always happy to help with software-related questions, accounting questions need to go to your Independent Examiner.
IMPORTANT: ExpensePlus does not provide advice on how to create accounts, and it is each organisation's own responsibility to ensure that their charity accounts comply with the law, taking professional advice as necessary.
Note: this is only applicable for churches and charities that create accounts on an Accruals basis
Volunteers (required field)
This field has the following default text, which can be customised:
The charity benefits greatly from the voluntary contributions of time and money. Please refer to the trustees' report for further detail about volunteer contributions in the organisation.
Independent Examination Fees (required field)
This field has the following default text, which needs customisation to include the cost of independent examination fees for both the current and prior financial years:
Fees payable to the independent examiner for independent examination were: [amount] (fee payable in the prior year: [amount]).
Note: The amount for the prior year should be stated in your prior year accounts.
The amount for the financial year the accounts relate to will be the amount agreed with your independent examiner (if this changes, then you will be able to update this prior to signing off your accounts).
Staff Costs (required field)
This field has the following default text, which needs customisation to include amounts and numbers of employees for the current and prior financial years:
The total staff costs and employee benefits for the reporting period are analysed as follows:
Gross wages and salaries: [amount], Employers NI costs [amount], Employers Pension costs [amount]
(prior year Gross wages and salaries: [amount], Employers NI costs [amount], Employers Pension costs [amount])
The average number of employees during the year was [number]
(the average number of employees during the prior year was [number])
No employees received employee benefits of more than £60,000 during the year or prior year.
Important: If any employees received salaries of more than £60,000 per year, then the final sentence of the default text will need to be removed, and the names and salaries of employees with salaries over £60,000 will need to be included.
Note: The amounts for prior year should be stated in your prior year accounts.
Top Tip: If you are using the payroll upload module, then the amounts for the financial year you require can be found at the click of a button within the payroll upload module. Alternatively, it's typically easiest to find the amount from payroll software / outsourced payroll provider.
Key Management Personnel (required field)
This field has the following default text, which needs customisation to include details of the key personnel, along with the total employment costs in both the current and prior financial years:
The charity considers its key management personnel to be [Insert text here].
The total employee benefits received by the key management personnel (including employer national insurance and pension contributions) was [amount] (total employee benefits for the prior year were: [amount]).
Note: Key Management personnel might just be trustees, but is could also include for example your senior leadership team. If you are unsure, you may wish to check what was stated in your prior year accounts.
The total employee benefits amount will typically be just the salary costs of any of your key management personnel employed by the charity.
The amount for the prior year should be stated in your prior year accounts.
Top Tip: If you are using the payroll upload module within ExpensePlus, then it's easy to find the amount for the financial year you require.
Simply assign an employee tag called 'key management personnel' to the relevant employees, then within this report select the financial year, select the pay period as 'all months' and filter by 'employee tag' to provide you with the total needed.
Alternatively, you should be able to get the amount from payroll software / outsourced payroll provider.
Note: The total amount will typically include both 'gross pay', 'employer pension contributions' and 'employer NI contributions'.
Trustee Remuneration (required field)
This field has the following default text, which needs customisation to include how many trustees received remuneration, and for any trustees that this applies to, the amount of remuneration received in both the current and prior financial years:
During the year [number] trustees received remuneration. The remuneration paid during the year was for the employees' role within the charity and not for their role as a trustee.
The total remuneration paid during the year is as follows: [trustee name] [amount], [trustee name] [amount], [trustee name] [amount]
(amounts from the prior year were: [trustee name] [amount], [trustee name] [amount], [trustee name] [amount])
Note: If any of the trustees have received remuneration, then this number needs to be stated. Typically be just the salary costs of each trustee employed by the charity.
The trustee names and amounts for the prior year should be stated in your prior year accounts.
Top Tip: If you are using the payroll upload module within ExpensePlus, then the amounts each trustee has been paid for the financial year you require can be found by within this report selecting the financial year, then selecting the pay period as 'all months' to view the total needed.
Alternatively, you should be able to get the amount from your payroll software / outsourced payroll provider.
Note: the total amount will typically include both 'gross pay' and 'employer pension contributions'.
Note: if no trustees received remuneration, then the default text can simply be replaced with "None of the trustees have been paid any remuneration or received any other benefits from employment with the charity or a related entity."
Trustee Expenses (required field)
This field has the following default text, which needs customisation to include the total expenses trustees collectively were paid in both the current and prior financial years:
During the year the [number] of trustees incurred out-of-pocket expenses totalling [amount].
(prior year [number] trustees incurred out-of-pocket expenses totalling [amount])
All expenses were incurred for the day-to-day running of the charity's activities.
Note: The amount for the prior year should be stated in your prior year accounts.
Top Tip: The Seach All Purchases report within ExpensePlus provides an easy way to find expenses and mileage claims paid to each trustee for the financial year you require.
Simply select the period as the 'prior financial year' and search for the 'payee'. This report can be downloaded as .csv and further filtered or amended to find the total amounts required.
Trustee Donations (required field)
This field has the following default text, which needs customisation to include the total donations trustees collectively donated both the current and prior financial years:
During the year the total aggregated donations made to the charity by the trustees was [amount].
There were no conditions attached to the donations. (total aggregate donations from prior year were [amount])
Note: The amount for the prior year should be stated in your prior year accounts.
Top Tip: Donor Tags provide an easy way to tag donors who are 'trustees'. This will enable you to filter using donor tags within this report to find the total donations for the financial year you require.
IMPORTANT: Where the donations given include donations that have conditions, the sentence relating to this needs to be removed, and further details about the conditions and restrictions on the donations given need adding.
Tangible Fixed Assets
This data in this section will auto-populate, so other than checking that it is correct, no additional input is required.
Investments
This data in this section will auto-populate, so other than checking that it is correct, no additional input is required.
Note: this section will be hidden on the Year End report download if there are no investments in either the financial year or the prior financial year
Debtors
Accounts Receivable
This section requires you to break down the 'accounts receivable' balance sheet total
Note: this needs to be rounded to the nearest pound, and add up to your balance sheet total
To view the transactions that make up the balance sheet amount, click the link (as shown).
- Gift Aid - this is the total of any Gift Aid due in from HMRC
- Trade Debtors - this is the total of any outstanding customer invoices
If you need to add any additional rows to this section, you can do so by clicking the 'add/edit' button.
Prepayments
This section requires you to break down the 'prepayments' balance sheet total.
Note: this needs to be rounded to the nearest pound, and add up to your balance sheet total
To view the transactions that make up the balance sheet amount, click the link (as shown).
Typically the whole amount simply gets stated as a 'prepayment', but if you need to add additional rows to this section, you can do so by clicking the 'add/edit' button.
Creditors
Accounts Payable
This section requires you to break down the 'accounts payable' balance sheet total.
Note: this needs to be rounded to the nearest pound, and add up to your balance sheet total
To view the transactions that make up the balance sheet amount, click the link (as shown).
- Finance Lease Liabilities - This is the total of any Finance Lease Liabilities (if relevant)
- Tax & Social Security - This is the total of any PAYE owed to HMRC (typically just the payment to HMRC from the final month of financial year)
- Trade Creditors - This is the total of any purchases that hadn't been paid at year end (if auto-accruals are enabled, this will typically be the total of all other auto-accrued expenditure)
- Accruals - This is the total of any costs incurred that are yet to be billed (typically the manual accounts payable adjustments you have added)
If you need to add any additional rows to this section, you can do so by clicking the 'add/edit' button.
Deferred Income
This section requires you to break down the 'deferred income' balance sheet total.
Note: this needs to be rounded to the nearest pound, and add up to your balance sheet total
To view the transactions that make up the balance sheet amount, click the link (as shown).
Typically the whole amount simply gets stated as a 'deferred income', but if you need to add additional rows to this section, you can do so by clicking the 'add/edit' button.
Loans
This data in this section will auto-populate, however, if 'Loan Types' have not been set for the loans that your charity has, then a warning will alert you to needing to set these within the loans module.
Note: this section will be hidden on the Year End report download if there are no loans in either the financial year or the prior financial year
Analysis of Charitable Funds
This data in this section will auto-populate, so other than checking that it is correct, no additional input is required.
Fund Transfers
This data in this section will auto-populate based on the fund transferred entered within this screen. Other than checking that it is correct, no additional input is required.
IMPORTANT: You may wish to update the description of your fund transfers to make them suitable for someone reading your year end accounts.
Fund Descriptions
This data in this section will auto-populate, however, if 'Fund Descriptions' have not yet been entered for each of your funds, then a warning will alert you to funds that need updating within the fund settings screen.
IMPORTANT: You may wish to check that both your fund names and fund descriptions are suitable for someone reading your year-end accounts.
Transactions to Related Parties
This field has the following default text, but in many cases this may need updating:
There were no transactions related parties during the accounting period.
IMPORTANT: If there were any related party transactions during the text needs to be updated to include details of any related party transactions.
Related parties include:
- Charity Trustees & Key Management Personnel - because they control and manage the charity's administration.
- Close Family Members - this includes parents, grandparents, siblings, children, and grandchildren of Charity Trustees and Key Management Personnel, because they may be expected to influence or be influenced by the trustee in their dealings with the charity.
- Entities the charity controls or has a significant interest in - these include subsidiaries, joint ventures, and associates.
An example of a related party transaction could be a charity trustee (or close family member of one of your charity trustees) who is:
- Employed by your charity
- Given a gift of money
- A director of a company which supplies goods or services to your charity
IMPORTANT: If you are unsure as to what related party transactions need to be disclosed in your charity accounts, you should check with your independent examiner.
If a disclosure note is needed, here is template text that can be used:
For aggregated donations received from related parties:
During the year the charity received donations totalling [amount] (prior year: [amount]) from related parties (which includes trustees, any other members of key management and anyone closely connected to them).
For aggregated expenses paid to trustees:
During the year the charity paid expenses totalling [amount] (prior year: [amount]) to the trustees.
Expenses paid included [explain nature of expenses e.g. travel, conferences etc.] whilst carrying out duties associated with being trustees.
Reimbursements for expenses incurred when acting as agent for the charity or incurred when undertaking employment duties not connected with serving as a trustee are not included in this disclosure.
For employment of a related party (repeated if multiple):
During the year the charity also made the following payments to [name], who is closely related to [name of related party], who is [a trustee / a member of key management], received employment benefits totalling [amount] (prior year: [amount]) for providing [nature of service provided e.g. administrative] services to the charity
For grants given to a related party (repeated if multiple):
During the year [name], who is closely related to [name of related party], who is [a trustee / a member of key management], received received grants totalling [amount] (prior year: [amount]) for providing [nature of grant given e.g. mission activities overseas].
For rent paid to a related party (repeated if multiple):
During the year [name of related party], who is [a trustee / a member of key management], received rent totalling [amount] (prior year: [amount]) from the charity for a property [connection to property e.g. owned and occupied by that individual] which was used by the charity to [nature of use e.g. to provide accommodation for other staff]
For a payment to a company of a related party (repeated if multiple):
During the year the charity paid [amount] (prior year: [amount]) to [name of company] for [nature of product or service e.g. building services]. [Name of related party], who is [a trustee / a member of key management] is a [director/shareholder] of [name of company]
For money owed to a related party at the end of the financial year (repeated if multiple):
At the end of the financial year, [name of related party] was owed [amount] (prior year: [amount])
IMPORTANT: If you are unsure as to the wording of a disclosure note (or if a different disclosure note is needed), you should speak to your independent examiner.
Prior Period Adjustments
This field has the following default text, which may need updating:
There were no prior year adjustments.
Note: Prior year adjustments are adjustments that are needed to correct the accounts for the prior year that were submitted to Charity Commission (not adjustments needed within ExpensePlus to ensure ExpensePlus matches your prior year accounts)
IMPORTANT: If there were any prior year adjustments, then the default text needs to be replaced with text that includes details of any adjustments made.
Don't forget: As well as including the details of any adjustments in the prior year, you may also need to make the adjustments within so that the figures for the prior year include the adjustments described.
Pensions (if applicable)
This field has the following default text, which may need updating:
The charity operates a defined contribution pension scheme. Contributions are charged to the Statement of Financial Activities as they become payable in accordance with the rules of the scheme.
IMPORTANT: the note regarding pensions in this 'other notes' section is different to the note that relates to pensions in the 'accounting policies' section.
Note: this section is only not applicable if you don't have any employees enrolled in a pension scheme or offer any pension schemes (typically only the case when your charity does not have any employees)
Note: If you have a Baptist Union Pension scheme, you can find further guidance here, and you can find the suggested text (including the up-to-date figures needed) in Note 28 of this template
Note: If you have a Church of England pension scheme, you will find the text for this disclosue note in your previous years accounts. For up to date actuarial valuations and any other updates needed, you are are best to speak with your diocese.
Other (Optional)
This section is an optional section you can use to add any additional disclosures that are needed.
Note: this section will be hidden on the Year End report download if it is left blank
To find answers to other Frequently Asked Questions relating to Year End Accounts check out this help guide article.