Charities and Trustee Investment (Scotland) Act 2005

Duty to keep accounts etc. S

44 Accounts S

(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 [F1 to which they relate].

[F2 (2A) 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) [F3 Subsections (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.

Textual Amendments

F1 Words in s. 44(2) substituted (1.4.2024) by Charities (Regulation and Administration) (Scotland) Act 2023 (asp 5), s. 21(2), sch. para. 12(2); S.S.I. 2024/63, reg. 2(1), sch. Pt. 1

F2 S. 44(2A) inserted (1.4.2024) by Charities (Regulation and Administration) (Scotland) Act 2023 (asp 5), s. 21(2), sch. para. 12(3); S.S.I. 2024/63, reg. 2(1), sch. Pt. 1

F3 Words in s. 44(3) substituted (1.4.2024) by Charities (Regulation and Administration) (Scotland) Act 2023 (asp 5), s. 21(2), sch. para. 12(4); S.S.I. 2024/63, reg. 2(1), sch. Pt. 1

Commencement Information

I1 S. 44 in force at 1.1.2006 for specified purposes by S.S.I. 2005/644, art. 2(1), Sch. 1

I2 S. 44 in force at 1.4.2006 in so far as not already in force by S.S.I. 2006/189, art. 2(1), Sch. Pt. 1

45 [F4 Failure to provide statement of account: preparation by appointed person] S

[F5 (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), 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.

Textual Amendments

F4 S. 45 heading substituted (1.4.2024) by Charities (Regulation and Administration) (Scotland) Act 2023 (asp 5), ss. 12(3), 21(2); S.S.I. 2024/63, reg. 2(1), sch. Pt. 1

F5 S. 45(1) substituted (1.4.2024) by Charities (Regulation and Administration) (Scotland) Act 2023 (asp 5), s. 21(2), sch. para. 13(2); S.S.I. 2024/63, reg. 2(1), sch. Pt. 1

Commencement Information

I3 S. 45 in force at 1.4.2006 by S.S.I. 2006/189, art. 2(1), Sch. Pt. 1

[F6 45A Failure to provide statement of account: removal from Register S

(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.]

Textual Amendments

F6 S. 45A inserted (1.4.2024) by Charities (Regulation and Administration) (Scotland) Act 2023 (asp 5), ss. 12(4), 21(2); S.S.I. 2024/63, reg. 2(1), sch. Pt. 1