300 Scots Charities Break Rules On Accounts

Scotland’s charity regulator yesterday named and shamed 300 charities that have failed to file accounts as part of its a tough response to a series of high-profile scandals.

{mosimage}The Office of the Scottish Charity Regulator (OSCR) said the organisations had failed to meet deadlines under new powers brought in to restore public confidence in the sector.

Among charities included on the list are Cash for Kids, the Scottish Schools Football Association, the Queen’s Own Highlanders Regimental Trust Regimental Museum, Bell Baxter High School “Fund Fair” fund and the National Trust for Scotland Kincardine & Deeside Members Centre.

While many of the first 294 charities now included on the “late list” may simply have forgotten to update basic details, such as contact information, they still face being removed from the charities register and thus lose their charitable status, the watchdog said.

Based on figures submitted for the previous year, more than £10m is estimated to be unaccounted for in total.

The monthly list is being published on OSCR’s website detailing those charities that have failed to submit their most recent accounts and an annual return form within six months of the stated deadline, which is 10 months after their relevant financial year-end. The first round of charities published have March, April and May 2006 financial year-ends.

If OSCR has not received an annual return and accounts from a charity within 12 months of the deadline date, the charity is at risk of removal from the Scottish Charity Register.

OSCR also has powers to appoint an accountant to prepare accounts for a charity. If the regulator makes use of this power, the charity trustees would be personally liable for costs.

The OSCR said the aim was to “encourage compliance” with the law and to “highlight the importance of reporting to the regulator”.

OSCR’s head of monitoring and investigation, Kirsty Gray, said that over 97% of Scotland’s 23,500 charities had submitted their details on time but that public confidence required that those failing to do so were highlighted.

She said: “All charities depend upon public confidence and are therefore accountable to the public on how charitable funds are used.

“Every charity must supply us with their accounts and an annual return or monitoring return form within a specified time so that we, as regulator, can be satisfied that charities are demonstrating public accountability.”

Charities are required to inform OSCR of a principal contact, to whom all documentation, updates and reminders are issued.

If the contact has changed and OSCR has not been notified, the charity may not receive OSCR’s communication and reminder letters.

Ms Gray added: “I would encourage charities to regularly check their entry in the Scottish Charity Register to ensure that OSCR has the correct contact details.”

The need for stronger powers was highlighted by two cases in particular, which The Herald helped to expose at the time.

Moonbeams, which was set up in 1992, was suspended in December 2003 after it was discovered only £70,000 of £3m raised had gone to cancer victims and their families. Breast Cancer Care Scotland spent just £1.5m from £13m collected.

As a result, the Charities and Trustee Investment (Scotland) Act came into force, placing a legal obligation on each charity to submit accounts for scrutiny.