Fourteen out of 27 charities, which had been part of the Charity Commission's inquiry into late filers, did not meet reporting obligations after being removed from the inquiry, according to report published today.
As part of its class inquiry into charities who fail to file accounts properly in two consecutive years, so-called ‘double defaulters’, the Commission today published a report on 27 charities that submitted their accounts between 2014 and 2016 since being investigated.
Six of these charities closed and failed to tell the Commission, six had filed their accounts with Companies House but failed to submit them to the Commission, while two submitted accounts without the correct external scrutiny. The rest met their reporting requirements.
Additionally, in the 2015-2016 class inquiry, three charities have been moved into separate investigations after evidence was uncovered of poor financial management and misuse of charity funds. These charities were Chevras Machzikei Mesifta, Achiezer Association Ltd and Achiezer.
See in Charity Finance
Nigel Davies, head of accountancy services at the Commission, said: “It is disappointing that it required our regulatory action to ensure these charities complied. They showed the ability to report well when they put the effort in as the majority of the charities involved in the class inquiry eventually filed good quality accounts.
“However, it is concerning that the underlying attitude to compliance on basic duties and accountability to donors and the public remains poor. This report sends a clear message to trustees that we will take robust action to tackle non-compliance so that charity funds are declared and accounted for on the register of charities.”
The first phase of the Charity Commission’s inquiry into double defaulting charities began in September 2013 and looked at those with an income of over £500,000, although the threshold was then lowered to £250,000. The investigation is ongoing.
Related articles
