Charity Commission: Inquiry into late filed accounts
The Charity Commission has launched a statutory inquiry into charities that within the last five years have failed to file their annual returns, accounts or reports for two or more years.
They have begun by targeting charities who have double defaulted, with income of over £500,000.
The Commission says that failure to submit annual documents "amounts to mismanagement and/or misconduct in the administration of a charity and is often associated with wider mismanagement and poor governance, including the misapplication or abuse of charitable funds".
Charities with income over £10,000 must file an annual return every year. All registered charities are required to inform the Charity Commission about any changes to the charity's details and provide details of their income and expenditure. Charities with income over £25,000 must also submit a copy of their accounts when filing their annual return.
Key action point:
- Charities required to file annual returns and accounts should ensure that they do so within the requisite period of ten months from their financial year end.