Regulatory Action Against Charity for Non-Compliance
The Charity Commission has initiated a statutory inquiry into Community Accountancy Self Help (CASH) due to the charity’s repeated failures to submit the required accounting information. This decision follows a pattern of non-compliance, highlighting significant regulatory concerns.
Details of the Inquiry
The inquiry will focus on the extent to which CASH’s trustees have complied with their legal duties regarding the administration, governance, and management of the charity.
Specifically, it will examine the charity’s statutory accounting and reporting responsibilities, as well as the adequacy of the trustees’ oversight of the charity’s operations and financial management.
The Commission will assess the risks to the charity, its beneficiaries, and its assets, and determine any necessary actions to resolve these concerns.
Broader Implications for Charity Governance
This inquiry underscores the importance of stringent financial controls and compliance with regulatory requirements within the charity sector.
The failure to submit accounts and conduct proper financial reviews can erode public trust and confidence in charities, which is a critical aspect of their operational viability.
Statistics and Timeline
- CASH has failed to submit accounts for multiple financial years.
- The charity was placed into the ‘Double Defaulter’ Class Inquiry in January 2023 for failing to meet reporting requirements.
- The statutory inquiry was formally opened on 20 November 2024 under section 46 of the Charities Act 2011.
Charity Commission’s Perspective
The Commission’s decision to open an inquiry is not taken lightly and is based on a careful assessment of regulatory concerns. Our goal is to ensure that charities comply with their legal duties and maintain public trust.
Helen Stephenson, Chief Executive at the Charity Commission.
The Commission’s stance emphasizes the need for charities to adhere strictly to their reporting and governance obligations to avoid such inquiries and maintain the integrity of the sector.
Future Actions and Compliance
- The inquiry will result in a detailed report outlining the issues investigated, actions taken, and outcomes achieved.
- Charities are advised to review their governing documents and ensure compliance with all regulatory requirements to avoid similar actions.
- The Commission will continue to monitor and regulate charities to ensure they meet their statutory obligations.
Local Impact on Charitable Services
The inquiry into CASH, which provides financial advice and training to small charities and voluntary groups, may have local implications for the services these organizations provide.
The disruption could affect the financial management and operational efficiency of these groups, potentially impacting their ability to serve disadvantaged communities.
Immediate Implications
The launch of this statutory inquiry highlights the immediate need for CASH to address its accounting and reporting deficiencies to restore regulatory compliance and public trust.
Broader Significance for the Charity Sector
This inquiry serves as a reminder to all charities of the importance of rigorous financial management and compliance with regulatory requirements.
It underscores the Commission’s commitment to ensuring that charities operate transparently and effectively, maintaining the trust and confidence of the public and donors.
