The dog ate my accounts (and other reasons for non-compliance)

Last year the Charity Commission’s Wales office began a campaign to improve the accountability of charities in Wales as figures showed consistently lower compliance rates than in England.

Charities with an income over £10,000 are legally required to complete and submit an Annual Return. If the charity’s income is over £25,000, trustees also need to send us accounts and a copy of the Trustees’ Annual Report (TAR).

All documents must be submitted within 10 months of the charity’s financial year end. If documents are not received on time the charity’s entry on the public register is clearly marked in red to show they are not complying with their legal requirements.

Happily, compliance rates for charities in Wales have improved in the last year meaning they are more transparent and accountable to their donors and beneficiaries. However, the Charity Commission is continuing with its campaign to encourage charities to file early and keep out of the red.

During its campaign, the Charity Commission has heard a variety of reasons for not complying on time, including, genuinely, the one in the headline. To help trustees, here are a few of the most common issues and how they can be avoided:

1. We haven't had the AGM yet but will send them as soon as possible after the meeting.

Unless the charity’s governing document specifically requires adoption or approval of the accounts and reports there is no need to wait for the AGM before filing with the Commission.

If the governing document does require approval of the accounts at the AGM and this is close to the compliance deadline, it may be possible to change the date of the AGM using either the amendment provisions in the governing document or by using the statutory power of amendment.

2. You didn't send us a form this year.

Paper forms are no longer routinely sent as all the information can now be submitted online. The Commission’s online services provide a quick and easy way to complete the annual return, update trustee information and change charity details. All that’s needed to access the online services is a password which can be ordered from the website via the Online Services Home Page.

Charities will receive a notice (by post or email) as soon as possible after the end of their financial year inviting them to complete their form online.

If a paper form is needed, do not leave it until the last minute before requesting one. A pre-printed form could take up to 7 working days to be generated and posted by which time a submission could become overdue. A form can also be ordered from the Online Services Home Page. Alternatively, you can call our ordering service on 0845 045 4002 (8:30am to 5:30pm, Monday to Friday). 

 

3. I thought the accountant had sent the accounts/ The accountants have had them for months now

The responsibility for filing rests with the trustees. If the charity’s accountants, auditors or independent examiners are filing on your behalf then make sure this responsibility is communicated, recorded and clearly understood. Set a deadline when you expect the accounts to be filed and check that it has been done.

4. The trustees are aboard/not available at this time of year and can't sign the accounts/report.

Careful planning is the key to producing a timely, good quality trustees’ report and set of accounts. Successful charities prepare a timetable well before the year end and make key decisions before the process of preparing the accounts starts. Remember charities have 10 months to submit the accounts and annual report – you don’t have to wait until the last month to do it!

5. We have submitted them but the Commission hasn’t received them.

If you are completing the information online you must remember to click on ‘Submit’. You will then receive an email confirming receipt of your online Annual Return or Update. It usually takes 24 hours after online submission to update the charity’s entry on the Register of Charities. You can check this by going to the online Register of Charities and searching under the charity's registered number.

Charities submitting documents by post should allow up to a week at our busiest times (October – January) when checking receipt on the Register. Very occasionally there can be problems with postal delays which is why we recommend that our customers use our online service

Things to note

• The Charity Commission is the independent regulator of charities in England and Wales. See www.charitycommission.gov.uk for further information or call our contact centre on 0845 300 0218.

• More information about our online services can be found at www.charitycommission.gov.uk/common/onlineservicesinfo.asp

• The Charity Commission’s Wales office is on the 8th Floor, Clarence House, Clarence Place, Newport, South Wales, NP19 7AA

• In January 2009 the Charity Commission published a report on the Welsh charitable sector, A snapshot of charities in Wales.  The report includes a range of previously unpublished information on the activity of Welsh charities registered with the Commission, including the following key findings:

• There are just over 9,000 registered charities in Wales;
• They have a combined income of just under £1bn;
• 90% of them carry out their work solely in Wales.

For further information on this story please contact Rosie Stokes on 01633 225510.