Scottish charity law consultation a missed opportunity, says RSM

Nick Sladden

In its response to the consultation which closes on 1 April, RSM highlighted that a broader review would have ensured that Scotland’s legislative framework is fit for purpose and reflects how modern charities are run and governed, and how they want to report.

The firm has suggested that the current primary legislation covering charities is too detailed and should be radically altered to become more principles-based, with any necessary detail included in secondary legislation with room for guidance to be issued by the charity regulator OSCR.

The firm is also encouraging the Scottish Government to review the key differences in the accounting, auditing and independent examination requirements across the UK nations to ensure that divergence is both minimised and fully justified.

Nick Sladden, RSM’s head of charities, said: “Currently charities across the UK are subject to the same accounting framework and the same Statement of Recommended Practice yet the legislation often means charities have to prepare different accounts for the different regulators which adds an unnecessary layer of administrative burden.

“We therefore urge the Scottish Government to take the opportunity of this update to streamline charity law and regulations around accounting, independent examination and audit to provide much greater consistency across the UK. This would be an important step in reducing the cost of compliance for cross border charities.”

RSM works with more than 1,000 charities across Scotland and the rest of the UK, including as accountant, independent examiner, internal auditor and external auditor.