News October 21, 2018

Camphill Village Trust implements component accounting software to meet SORP/FRS 102

Camphill Village Trust (CVT) has selected MRI Software’s (MRI) fixed asset software to improve the financial reporting for its 300+ properties. Driven by the decision to implement component accounting under SORP guidelines, the charity recognised the need to move away from its current spreadsheet based system and invest in a specialist solution to confidently manage the increase in assets as a result of componentisation.

With an annual turnover of £20 million and 317 staff, CVT is a leading, long established and progressive UK charity supporting adults with learning disabilities, mental health problems and other support needs. It supports people in their home life, work, social and cultural activities throughout its 9 urban and rural communities across England.

We are confident that the new software will enable our transition to component accounting to be as smooth and painless as possible…

Recommended to CVT by its auditors, MRI’s software was selected as system of choice due to its proven reputation and extensive use by more than 180 not-for-profit (NFP) and housing clients. Going forward, the charity’s asset register will increase from 300 to almost 2,500 records under component accounting for which depreciation calculations and detailed reporting will be required. Balbinder Lally, Central Financial Controller at Camphill Village Trust comments, “Even managing our small number of property assets on a spreadsheet had started to become time consuming and its limitations for analysis and reporting were apparent. Whilst as a charity we are not yet enforced to comply with SORP requirements, we were keen to follow best practice and to get our accounts, processes and procedures up to date in preparation for meeting any future regulations.”

Lally continues, “The new system will allow CVT to adopt component accounting with the peace of mind that all data is recorded within a central location and most importantly, that the depreciation on each component is being calculated correctly and that all financial reporting is accurate.”

Used alongside CVT’s finance system, Sage 50, MRI’s software will provide the charity with the facility to create user-definable fields for comprehensive searching and analysis as well as the ability to produce instant analysis reports in accordance with SORP for past, present and future periods. In addition, having access to a comprehensive user audit trail and the ability to import component replacement assets with automatic disposal of the existing component record will not only ensure resource efficiency across the department but also greatly simplify year-end procedure.

Due to go live with the new system in April 2016, CVT is busy preparing its accounts to start the new financial year on the right note and in compliance with SORP/FRS 102 requirements. Lally concludes, “We have so far been impressed with the professionalism displayed by MRI and the expertise provided in demonstrating the system’s functionality and highlighting best practice based on similar industry user experiences. We are confident that the new software will enable our transition to component accounting to be as smooth and painless as possible and also provide us with a platform to increase our asset visibility and accountability.”

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