F1Part 1Charities
Chapter 6Charity accounts
Duty to keep accounts etc.
I1I244Accounts
1
A charity must—
a
keep proper accounting records,
b
prepare for each financial year of the charity a statement of account, including a report on its activities in the financial year,
c
have the statement of account independently examined or audited, and
d
after such examination or audit, send a copy of the statement of account to OSCR,
in accordance with regulations under subsection (4).
2
Accounting records kept in pursuance of subsection (1)(a) must be preserved by the charity for 6 years from the end of the financial year F5to which they relate.
F42A
Where the charity ceases to be a charity before the end of the period mentioned in subsection (2), the records must be preserved for the remainder of that period by—
a
the body which was the charity, or
b
where that body ceases to exist, a person notified to OSCR who, immediately before it ceased to exist, was—
i
a charity trustee of the charity, or
ii
where the body was not a charity at that time, concerned in the management or control of the body.
3
F6Subsections (2) and (2A) are without prejudice to any other enactment or rule of law.
4
The Scottish Ministers may by regulations make provision about the matters referred to in subsection (1) including—
a
the meaning of “financial year”,
b
the information to be contained in the accounting records and statement of account,
c
the manner in which that information is to be presented,
d
the keeping and preservation of the accounting records,
e
the methods and principles according to which, and the time by which, the statement of account is to be prepared,
f
the time by which the copy statement of account is to be sent to OSCR,
g
examination or audit of the statement of account,
h
such other matters in relation to the accounts of a charity as the Scottish Ministers think necessary or expedient.
5
Regulations under subsection (4) may make different provision in relation to different types of charity, including provision exempting charities of a particular type from some or all of the requirements of this section.
I345F2Failure to provide statement of account: preparation by appointed person
F71
This section applies where—
a
a charity has failed to send a copy of its statement of account to OSCR in pursuance of section 44(1)(d), and
b
the time by which the statement was due to be sent to OSCR by virtue of provision made under section 44(4)(f) has passed.
2
OSCR may, after notifying the charity of its intention to do so, appoint a suitably qualified person (an “appointed person”) to prepare such a statement of account.
3
An appointed person is entitled—
a
on giving reasonable notice, to enter premises occupied by the charity at all reasonable times,
b
to have access to, and take possession of, any document appearing to the appointed person to relate to the financial affairs of the charity, and
c
to require any charity trustee, or agent or employee, of the charity to give the person such assistance, information or explanation as the appointed person may reasonably require.
4
The charity trustees of the charity are personally liable jointly and severally for—
a
any costs incurred by OSCR in relation to the appointment of the appointed person, and
b
the expenses of the appointed person in performing that person's functions under this section.
5
The appointed person must—
a
send to OSCR the statement of account prepared in pursuance of subsection (2),
b
submit to OSCR a report on the affairs and accounting records of the charity, and
c
send a copy of the statement of account and report to each person appearing to the appointed person to be a charity trustee of the charity.
6
A person who, without reasonable excuse, refuses or fails to comply with a requirement of an appointed person under subsection (3) is guilty of an offence and liable on summary conviction to a fine not exceeding level 3 on the standard scale.
45AF3Failure to provide statement of account: removal from Register
1
This section applies where—
a
a charity has failed to send a copy of its statement of account to OSCR in pursuance of section 44(1)(d),
b
the time by which the statement was due to be sent to OSCR by virtue of provision made under section 44(4)(f) has passed,
c
the charity has not responded to communications from OSCR in respect of the failure, and
d
a statement of account has not been prepared, and is not being prepared, under section 45.
2
OSCR may give the charity notice of its intention to remove the charity from the Register.
3
Unless the charity makes contact with OSCR within 3 months of the date on which notice under subsection (2) is given, OSCR may remove the charity from the Register.
4
A notice under subsection (2) must set out—
a
that the notice has been given because the criteria in paragraphs (a) to (d) of subsection (1) have been met, and
b
that the charity may be removed from the Register unless it makes contact with OSCR within the period specified in subsection (3).
5
OSCR—
a
must publish on its website a list of charities to which a notice under subsection (2) has been issued and remains in effect,
b
may take such further steps as appear to it to be appropriate with a view to bringing the giving of a notice under subsection (2) to the attention of persons likely to be affected by it.
6
In relation to a SCIO, the power in subsection (3) to remove a charity from the Register is a power to take steps in accordance with regulations made under section 64(1)(d) to secure the dissolution of the SCIO and, following such dissolution, to remove it from the Register.
Pt. 1 Ch. 5A inserted (1.10.2010 for specified purposes, 1.11.2012 in so far as not already in force) by Public Services Reform (Scotland) Act 2010 (asp 8), ss. 125(1), 134(7); S.S.I. 2010/321, art. 3, Sch.; S.S.I. 2012/218, art. 2