Childcare and early education
The Department of Children, Equality, Disability, Integration and Youth has issued an information sheet for core funding financial reporting requirements years 1 and 2, to entities providing childcare and early education services regarding the transitional arrangements for the application for funding under a new model called ‘Together for Better’.
These transitional arrangements will be in place for the next two reporting periods (years ended 31 August 2023 and 31 August 2024).
This reporting regime includes a requirement that the childcare service providers engage a professional accountant to submit an income and expenditure report. Service providers will make an online declaration that they have authorised the accountant to make the submission for them.
The following matters should be noted:
- The report is to cover expenses incurred on a cash basis for the year ended 31 August.
- The requirement is for expenditure incurred in the relevant period only, with no accruals or prepayments.
- Income will be pre-populated in the online platform.
- Where a client has a different year end, time apportionment is not accepted.
While charities are not-for-profit organisations, not all not-for-profit organisations are charities
The Consultative Committee of Accountancy Bodies – Ireland has engaged with the department to discuss the nature, cost and extent of the work expected, and has highlighted concerns regarding the request for the professional accountant to submit the report on behalf of a client, who is responsible for disclosing all relevant information.
Given the potential scope of this activity, accountants should have ACCA’s code of ethics in mind. The Irish Auditing & Accounting Supervisory Authority’s (IAASA) Ethical Standard for Auditors (Ireland) will apply where the accountant is also the statutory auditor, and members should be cognisant of any conflicts with other engagements they may undertake for their clients. This includes consideration of section 5.129 of the IAASA Ethical Standard for Auditors (Ireland) 2020, where applicable.
The IAASA noted climate change impact being disclosed by companies
Not-for-profit organisations
While charities are not-for-profit organisations, not all not-for-profit organisations are charities under the Charities Act 2009. The Charities Regulator has issued guidance that clarifies, for example, that a political party or a trade union cannot be a charity, and that a charity must provide a public benefit rather than help for one individual.
It is an offence for an organisation to wrongfully describe itself or its activities as a charity, or cause people to reasonably believe that it is a charity.
Financial statement disclosure
The IAASA has published a summary of the outcomes of its examinations of financial reports completed in 2023 for public interest entity companies.
Those inspected include: AIB Group, Bank of Cyprus Holdings, Cairn Homes, Bank of Ireland Group, CRH, Dalata Hotel Group, Dignity Finance, Flutter Entertainment, Glenveagh Properties, Hostelworld Group, Irish Continental Group, Irish Residential Properties REIT, Kenmare Resources, Kerry Group, Kingspan Group, Permanent TSB Group, Ryanair Holdings, and Smurfit Kappa Group.
Ireland has lost out to Germany in its bid to host Europe’s new anti-money laundering authority
The most common finding was that ‘No instances of non-compliance were detected’. The IAASA also noted climate change impact being disclosed by companies.
AMLA
Ireland has lost out to Germany in its bid to be the host country for Europe’s new anti-money laundering authority (AMLA), which the EU has announced will be based in Frankfurt and begin operations in mid-2025. It will have more than 400 staff members.
AMLA is the centrepiece of the reform of the EU’s anti-money laundering framework. It will have direct and indirect supervisory powers over obliged entities, and the power to impose sanctions and measures.
