Meeting planned for NHS charities

Charity Commission moves to keep accounts separate from those of public bodies

The Association of NHS Charities and the Charity Commission are planning a meeting later this month to discuss how to prevent the accounts of NHS charities being consolidated into public sector balance sheets.

Last year, the Department of Health said charities might be forced to consolidate their assets into the accounts of their associated NHS trusts under a new regulation, IAS 27: introduced by the Treasury, this says all organisations must record their subsidiaries' assets on their balance sheets.

The department has said this could include many of the 282 NHS trusts that act as sole trustees for their associated charities. Janet Perry, financial controller of the NHS, wrote to strategic health authorities in October warning them trusts might be forced to consolidate.

However, the Charity Commission has objected to the proposals, describing them as "wholly inappropriate".

Nick Brooks, head of not-for-profit at accountants Kingston Smith, who will also attend the meeting, said charity representatives were likely to ask the Treasury not to apply IAS 27 to NHS charities for another year to give them time to resolve the dispute.

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