Annual financial report: there are two, and they are not the same
One forms part of the annual accounts and is approved by the members' meeting. The other is filed with Hacienda, has a deadline of its own and is owed only by entities on the patronage regime.
The document in which a non-profit body sets out its income and expenditure for the year, identified by category and by project.
The notes to the annual accounts
It is one of the pieces of the annual accounts: it completes, expands on and comments on the balance sheet and the profit and loss account. Its content is set by whichever chart of accounts applies, which for state-level foundations and associations declared to be of public benefit is the one in RD 1491/2011.
The financial report under Ley 49/2002
Article 3.10 of Ley 49/2002 requires entities on that tax regime to draw up an annual financial report «en la que se especifiquen los ingresos y gastos del ejercicio, de manera que puedan identificarse por categorías y por proyectos, así como el porcentaje de participación que mantengan en entidades mercantiles» — setting out the year's income and expenditure so that they can be identified by category and by project, together with any holdings in commercial companies.
RD 1270/2003 pins down the content and the deadline: it is filed with the Tax Agency within seven months of the year-end. And it exempts from filing it — not from drawing it up — entities whose total income does not exceed €20,000 and which hold no interest in commercial companies.
An example of how it is laid out
An association with €84,000 of income in the year:
- Membership fees: €31,000 · Public grant: €40,000 · Donations: €13,000
- And the spending broken down by project: summer school €46,200, after-school support €28,400, running costs €7,900
That second breakdown — by project, not by nature — is exactly what the rules ask for and what almost no association's accounts are set up to give.
The mistake that comes up most
Filing form 200 and treating the year as closed. They are separate obligations: the Corporation Tax return does not replace the financial report, and the report does not replace the return. And the Ley 49/2002 one has a seven-month deadline, not six and not twelve.
Where this carries on in Cairos: An association's accounts and obligations.
Terms that go with this one
Almost no tax concept makes sense on its own. These three are the ones that most often turn up beside it.
Entidad de utilidad pública
The administrative declaration recognising that an association serves the general interest, with associated advantages and accountability obligations.
AccountingAnnual accounts
The set of documents with which a company closes its financial year, which its general meeting approves and which it files at the Registro Mercantil.
Non-profit bodiesCuenta justificativa
The file with which the recipient of a grant proves to the awarding body that the activity was carried out and how the funds were spent.
This, handled without thinking about it
Cairos keeps the invoices, the record books and Hacienda's forms from the same data, so the theory on this page turns into boxes that are already filled in.
No card and no minimum term.