The Importance of Submitting Accounts on Time: BFON Trust face Statutory Inquiry

The Charity Commission has recently opened a statutory inquiry into BFON Trust, a charity whose objectives are to relieve poverty, sickness and infirmity amongst those in need.

The inquiry has been launched following the charity’s failure to file its annual accounts. BFON Trust, only last year, came out of a similar inquiry into charities that have failed to comply and send accounts on two or more occasions. However, after submitting their outstanding accounts in June last year for the 2012 and 2013 financial years they have failed to submit their 2014 financial accounts that were due by 31 January 2015 (and are still outstanding). The charity is now facing a class inquiry against them due to their inability and failure to file their accounts for the third year running.

Submitting On Time

• Accountability - Both the charity sector and the public are advocates for transparency in charity accounts. By submitting accounts on time, it helps to retain the public’s confidence in the charity sector. Failure to do so can promote governance issues and a lack of trust.
• Compliance – Depending on the income band that the charities fall into, it is mandatory for all companies to submit accounts. Smaller charities must make contact with the commission on their position. Failure to file in a timely manner is a criminal offence and charities can be faced with a Statutory Inquiry by the commission.
• Grant Funders – The inability to submit accounts hinders charities of any grants that they could be entitled too. Many funders, especially smaller ones, are less willing to invest extensively into a charity if they are not up-to-date with their annual accounts. By submitting accounts on time, charities make it easier for funders to authorise grants.

Submitting accounts on time is imperative, which why it is vital that you do not underestimate the importance of the legislation – If you want to discuss your particular circumstances please give us a call or email suda@raffingers-stuart.co.uk