SOFA format

Often the accounting system records income and expenditure by type and not by the new functional classification. This should not be abandoned as it has its uses - budgetary control and disclosure of certain items such as salaries, which is still required in the notes to the account. Try to aggregate the information under the appropriate functional headings. This can be done manually or by using a standard computer spreadsheet.

Statement of Financial Activities for the year ended 30 September 2003

Balance sheet as at 31 March 2002
		Unrestricted funds		Restricted funds		Total funds
		£'000's		£'000's		£'000's
Incoming resources
Donations and gifts		250		100		350
Legacies		100		-		150
Local authority contracts		50		-		50
Investment income - interest		22		10		32
Total incoming resources		472		110		582
Resources expended
Direct charitable expenditure
Care for the elderly		200		50		250
Information and education		100		-		100
Fundraising and publicity		50		50		100
Management and administration		100		50		150
Total resources expended		450		150		600

Columnar format

The layout, with columns, is set out in the regulations and must be followed. The minimum requirement will be a column for unrestricted funds, one for restricted funds and one for permanent endowments - if there are any.

Find out more about other accounting issues and examples in the In more depth section.