I''m trying to get my head around the Charity Sorp (FRS102)for our charity accounts. We have one charity where due to the asset value and capital expenditure pushes it over the £1m income threshold. Basically the Council maintains the asset and insures it. The Council covers the cost of repairs and maintenance, the income is basically to match the capital expenditure. The SORP says that there should be a cashflow statement, but as the Charity does not have a bank account or any cashflow it seems to be a pointless exercise to include the cash flow. Any increase in reserves is the increase in the Revaluation Reserve. I''m guessing that there are quite a few authorities with charities like this, what are others doing?