Source: http://www.legislation.gov.uk/ukpga/2011/25/part/8
Timestamp: 2017-12-15 08:37:01
Document Index: 712734119

Matched Legal Cases: ['art 8', 'art 8', 'art. 1', 'art. 12', 'art. 1', 'art. 12', 'art. 1', 'art. 12', 'art. 5', 'art. 5', 'art. 1', 'art. 12', 'art 42', 'art 4', 'art 4', 'art. 4', 'art. 2', 'art. 4', 'art. 2', 'art. 4', 'art. 2', 'art. 4', 'art. 2', 'art. 4', 'art. 2', 'art. 4', 'art. 2', 'art. 4', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 4', 'art. 2', 'art. 4', 'art. 2', 'art. 4', 'art. 2', 'art. 4', 'art. 2', 'art. 4', 'art. 2', 'art. 4', 'art. 2', 'art. 4', 'art. 2', 'art. 1', 'art. 12', 'art. 4', 'art. 1', 'art. 12', 'art 2', 'art. 1', 'art. 12', 'art. 1', 'art. 12', 'art. 1', 'art. 12', 'art. 1', 'art. 12']

Charities Act 2011, Part 8 is up to date with all changes known to be in force on or before 15 December 2017. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.
Part 8E+WCharity accounts, reports and returns
C1Pt. 8 applied (with modifications) (2.1.2013) by The Charitable Incorporated Organisations (Insolvency and Dissolution) Regulations 2012 (S.I. 2012/3013), regs. 1, 41
CHAPTER 1E+WIndividual accounts
130Accounting recordsE+W
(1)The charity trustees of a charity must ensure that accounting records are kept in respect of the charity which are sufficient to show and explain all the charity's transactions, and which are such as to—
(a)disclose at any time, with reasonable accuracy, the financial position of the charity at that time, and
(b)enable the trustees to ensure that, where any statements of accounts are prepared by them under section 132(1), those statements of accounts comply with the requirements of regulations under section 132(1).
(2)The accounting records must in particular contain—
(a)entries showing from day to day all sums of money received and expended by the charity, and the matters in respect of which the receipt and expenditure takes place, and
(b)a record of the assets and liabilities of the charity.
131Preservation of accounting recordsE+W
(1)The charity trustees of a charity must preserve any accounting records made for the purposes of section 130 in respect of the charity for at least 6 years from the end of the financial year of the charity in which they are made.
(2)Subsection (3) applies if a charity ceases to exist within the period of 6 years mentioned in subsection (1) as it applies to any accounting records.
(3)The obligation to preserve the accounting records in accordance with subsection (1) must continue to be discharged by the last charity trustees of the charity, unless the Commission consents in writing to the records being destroyed or otherwise disposed of.
132Preparation of statement of accountsE+W
(1)The charity trustees of a charity must (subject to section 133) prepare in respect of each financial year of the charity a statement of accounts complying with such requirements as to its form and contents as may be prescribed by regulations made by the [F1Secretary of State].
(a)for any such statement to be prepared in accordance with such methods and principles as are specified or referred to in the regulations;
(b)as to any information to be provided by way of notes to the accounts.
(3)Regulations under subsection (1) may also make provision for determining the financial years of a charity for the purposes of this Act and any regulations made under it.
(4)But regulations under subsection (1) may not impose on the charity trustees of a charity that is a charitable trust created by any person (“the settlor”) any requirement to disclose, in any statement of accounts prepared by them under subsection (1)—
if the disclosure would fall to be made at a time when the settlor or any spouse or civil partner of the settlor was still alive.
F1Words in s. 132(1) substituted (9.11.2016) by The Transfer of Functions (Elections, Referendums, Third Sector and Information) Order 2016 (S.I. 2016/997), art. 1(2), Sch. 2 para. 25(2)(t) (with art. 12)
134Preservation of statement of accounts or account and statementE+W
(1)The charity trustees of a charity must preserve—
(a)any statement of accounts prepared by them under section 132(1), or
(b)any account and statement prepared by them under section 133,
for at least 6 years from the end of the financial year to which any such statement relates or (as the case may be) to which any such account and statement relate.
(2)Subsection (3) applies if a charity ceases to exist within the period of 6 years mentioned in subsection (1) as it applies to any statement of accounts or account and statement.
(3)The obligation to preserve the statement or account and statement in accordance with subsection (1) must continue to be discharged by the last charity trustees of the charity, unless the Commission consents in writing to the statement or account and statement being destroyed or otherwise disposed of.
136Exempt charitiesE+W
(1)Nothing in sections 130 to 134 (preparation and preservation of individual accounts) applies to an exempt charity.
(2)But the charity trustees of an exempt charity—
(a)must keep proper books of account with respect to the affairs of the charity, and
(b)if not required by or under the authority of any other Act to prepare periodical statements of account must prepare consecutive statements of account consisting on each occasion of—
(i)an income and expenditure account relating to a period of not more than 15 months, and
(ii)a balance sheet relating to the end of that period.
(3)The books of accounts and statements of account relating to an exempt charity must be preserved for a period of at least 6 years unless—
(a)the charity ceases to exist, and
(b)the Commission consents in writing to their being destroyed or otherwise disposed of.
CHAPTER 2E+WGroup accounts
138Preparation of group accountsE+W
(1)This section applies in relation to a financial year of a charity if—
(a)the charity is a parent charity at the end of that year, and
(b)(where it is a company) it is not required to prepare consolidated accounts for that year under section 399 of the Companies Act 2006 (duty to prepare group accounts), whether or not such accounts are in fact prepared.
(3)If the requirement in subsection (2) applies to the charity trustees of a parent charity (other than a parent charity which is a company) in relation to a financial year—
(a)that requirement so applies in addition to the requirement in section 132(1) (statement of accounts), and
(b)the option of preparing the documents mentioned in section 133 (account and statement) is not available in relation to that year (whatever the amount of the charity's gross income for that year).
(a)the requirement in subsection (2) applies to the charity trustees of a parent charity in relation to a financial year, and
(b)the charity is a company,
that requirement so applies in addition to the requirement in section 394 of the Companies Act 2006 (duty to prepare individual accounts).
(5)Subsection (2) is subject to section 139.
(2)The requirement in section 138(2) does not apply to the charity trustees of a parent charity in relation to a financial year if the aggregate gross income of the group for that year does not exceed such sum as is specified in regulations made by the [F2Secretary of State].
(3)Regulations made by the [F2Secretary of State] may prescribe circumstances in which a subsidiary undertaking may or (as the case may be) must be excluded from group accounts required to be prepared under section 138(2) for a financial year.
F2Words in s. 139(2)(3) substituted (9.11.2016) by The Transfer of Functions (Elections, Referendums, Third Sector and Information) Order 2016 (S.I. 2016/997), art. 1(2), Sch. 2 para. 25(2)(u) (with art. 12)
140Preservation of group accountsE+W
(1)The charity trustees of a charity must preserve any group accounts prepared by them under section 138(2) for at least 6 years from the end of the financial year to which the accounts relate.
(2)Subsection (3) applies if a charity ceases to exist within the period of 6 years mentioned in subsection (1) as it applies to any group accounts.
(3)The obligation to preserve the accounts in accordance with subsection (1) must continue to be discharged by the last charity trustees of the charity, unless the Commission consents in writing to the accounts being destroyed or otherwise disposed of.
141“Parent charity”, “subsidiary undertaking” and “group”E+W
(2)A charity is a parent charity if it is (or is to be treated as) a parent undertaking in relation to one or more other undertakings in accordance with the provisions of section 1162 of, and Schedule 7 to, the Companies Act 2006.
(3)Each undertaking in relation to which a parent charity is (or is to be treated as) a parent undertaking in accordance with those provisions is a subsidiary undertaking in relation to the parent charity.
(4)But subsection (3) does not have the result that any of the following is a subsidiary undertaking—
(b)any institution which, by virtue of a direction under section 12(1), is to be treated as forming part of a charity for the purposes of this Part, or
(c)any charity to which a direction under section 12(2) applies for the purposes of this Part.
(5)“The group”, in relation to a parent charity, means that charity and its subsidiary undertaking or undertakings, and any reference to the members of the group is to be read accordingly.
(6)For the purposes of this section and the operation for those purposes of section 1162 of, and Schedule 7 to, the Companies Act 2006 “undertaking” means—
(a)an undertaking as defined by section 1161(1) of the 2006 Act, or
142“Group accounts”E+W
(1)For the purposes of this Part, “group accounts” means consolidated accounts—
(b)complying with such requirements as to their form and contents as may be prescribed by regulations made by the [F3Secretary of State].
(3)Regulations under subsection (1) may also make provision—
(a)for determining the financial years of subsidiary undertakings for the purposes of this Part;
F3Words in s. 142(1)(b) substituted (9.11.2016) by The Transfer of Functions (Elections, Referendums, Third Sector and Information) Order 2016 (S.I. 2016/997), art. 1(2), Sch. 2 para. 25(2)(v) (with art. 12)
143Exempt charitiesE+W
Nothing in sections 137 to 142 (preparation and preservation of group accounts) applies to an exempt charity.
CHAPTER 3E+WAudit or examination of accounts
Audit or examination of individual accountsE+W
144Audit of accounts of larger charitiesE+W
(a)the charity's gross income in that year exceeds [F4£1 million], or
(b)the charity's gross income in that year exceeds the accounts threshold and at the end of the year the aggregate value of its assets (before deduction of liabilities) exceeds £3.26 million.
F4Words in s. 144(1)(a) substituted (with application in accordance with art. 5 of the commencing S.I.) by The Charities Act 2011 (Accounts and Audit) Order 2015 (S.I. 2015/321), arts. 1, 3
145Examination of accounts an option for lower-income charitiesE+W
(3)If subsection (1) applies to the accounts of a charity for a year and the charity's gross income in that year exceeds £250,000, a person qualifies as an independent examiner for the purposes of subsection (1)(a) if (and only if) the person is independent and—
[F5(k)the Institute of Financial Accountants;
(l)the Certified Public Accountants Association.]
(6)The [F6Secretary of State] may by order—
F5S. 145(4)(k)(l) inserted (with application in accordance with art. 5 of the commencing S.I.) by The Charities Act 2011 (Accounts and Audit) Order 2015 (S.I. 2015/321), arts. 1, 4
F6Words in s. 145(6) substituted (9.11.2016) by The Transfer of Functions (Elections, Referendums, Third Sector and Information) Order 2016 (S.I. 2016/997), art. 1(2), Sch. 2 para. 25(2)(w) (with art. 12)
146Commission's powers to order auditE+W
(3)The expenses of any audit carried out by an auditor appointed by the Commission under subsection (2), including the auditor's remuneration, are recoverable by the Commission—
149Audit or examination of English NHS charity accountsE+W
(2)If section 144(1)(a) or (b) is satisfied in relation to that financial year of the charity, the accounts of the charity for that year must be audited by [F7a person who—
(a)is eligible for appointment as a statutory auditor under Part 42 of the Companies Act 2006,
(b)is eligible for appointment as a local auditor (see Part 4 of the Local Audit and Accountability Act 2014), or
(c)is a member of a body for the time being specified in regulations under section 154 and is under the rules of that body eligible for appointment as auditor of the charity.]
(3)In any other case, the accounts of the charity for that financial year must, at the election of [F8the charity trustees] , be—
(a)audited by [F9a person who is within subsection (2)(a), (b) or (c)] , or
(b)examined by [F10a person who is qualified to be an independent examiner] .
[F11(3A)For the purposes of subsection (3)(b), a person is qualified to be an independent examiner if (and only if)—
(a)the person is independent,
(b)the charity trustees reasonably believe that the person has the requisite ability and practical experience to carry out a competent examination of the accounts, and
(i)falls within a description of person for the time being included in the list in section 145(3), or
(ii)is eligible for appointment as a local auditor (see Part 4 of the Local Audit and Accountability Act 2014).]
[F13(5)The Commission may—
(a)give guidance to charity trustees of an English NHS charity in connection with the selection of a person for appointment as an independent examiner;
(b)give such directions as it thinks appropriate with respect to the carrying out of an examination in pursuance of subsection (3)(b);
and any such guidance or directions may either be of general application or apply to a particular charity only.]
[F16(ba)the National Health Service Commissioning Board,
(bb)a clinical commissioning group,
(bc)trustees for the National Health Service Commissioning Board appointed in pursuance of paragraph 11 of Schedule A1 to the National Health Service Act 2006, or
(bd)trustees for a clinical commissioning group appointed in pursuance of paragraph 15 of Schedule 1A to that Act,]
F17(f). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F18(8). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F7S. 149(2)(a)-(c) substituted (1.4.2017) by Local Audit and Accountability Act 2014 (c. 2), s. 49(1), Sch. 12 para. 119(2); S.I. 2015/841, art. 4 (with Sch. para. 11) (as amended (27.6.2016) by S.I. 2016/675, art. 2)
F8Words in s. 149(3) substituted (1.4.2017) by Local Audit and Accountability Act 2014 (c. 2), s. 49(1), Sch. 12 para. 119(3)(a); S.I. 2015/841, art. 4 (with Sch. para. 11) (as amended (27.6.2016) by S.I. 2016/675, art. 2)
F9Words in s. 149(3)(a) substituted (1.4.2017) by Local Audit and Accountability Act 2014 (c. 2), s. 49(1), Sch. 12 para. 119(3)(b); S.I. 2015/841, art. 4 (with Sch. para. 11) (as amended (27.6.2016) by S.I. 2016/675, art. 2)
F10Words in s. 149(3)(b) substituted (1.4.2017) by Local Audit and Accountability Act 2014 (c. 2), s. 49(1), Sch. 12 para. 119(3)(c); S.I. 2015/841, art. 4 (with Sch. para. 11) (as amended (27.6.2016) by S.I. 2016/675, art. 2)
F11S. 149(3A) inserted (1.4.2017) by Local Audit and Accountability Act 2014 (c. 2), s. 49(1), Sch. 12 para. 119(4); S.I. 2015/841, art. 4 (with Sch. para. 11) (as amended (27.6.2016) by S.I. 2016/675, art. 2)
F12S. 149(4) omitted (1.4.2017) by virtue of Local Audit and Accountability Act 2014 (c. 2), s. 49(1), Sch. 12 para. 119(5); S.I. 2015/841, art. 4 (with Sch. para. 11) (as amended (27.6.2016) by S.I. 2016/675, art. 2)
F13S. 149(5) substituted (1.4.2017) by Local Audit and Accountability Act 2014 (c. 2), s. 49(1), Sch. 12 para. 119(6); S.I. 2015/841, art. 4 (with Sch. para. 11) (as amended (27.6.2016) by S.I. 2016/675, art. 2)
F14S. 149(7)(a) omitted (1.4.2013) by virtue of Health and Social Care Act 2012 (c. 7), s. 306(4), Sch. 5 para. 184(a); S.I. 2013/160, art. 2(2) (with arts. 7-10 Sch. para. 1 Sch. para. 6 Sch. para. 16)
F15S. 149(7)(b) omitted (1.4.2013) by virtue of Health and Social Care Act 2012 (c. 7), s. 306(4), Sch. 5 para. 184(b); S.I. 2013/160, art. 2(2) (with arts. 7-10 Sch. para. 1 Sch. para. 6 Sch. para. 16)
F16S. 149(7)(ba)-(bd) inserted (1.10.2012) by Health and Social Care Act 2012 (c. 7), s. 306(4), Sch. 5 para. 184(c); S.I. 2012/1831, art. 2(2)
F17S. 149(7)(f) omitted (1.4.2013) by virtue of Health and Social Care Act 2012 (c. 7), s. 306(4), Sch. 5 para. 184(d); S.I. 2013/160, art. 2(2) (with arts. 7-10 Sch. para. 1 Sch. para. 6 Sch. para. 16)
F18S. 149(8) omitted (1.4.2017) by virtue of Local Audit and Accountability Act 2014 (c. 2), s. 49(1), Sch. 12 para. 119(7); S.I. 2015/841, art. 4 (with Sch. para. 11) (as amended (27.6.2016) by S.I. 2016/675, art. 2)
150Audit or examination of Welsh NHS charity accountsE+W
Audit or examination of group accountsE+W
(b)if section 149 applies in relation to that year, by [F19a person, appointed by the charity trustees of the parent charity, who is within section 149(2)(a), (b) or (c)] ;
(6)[F20Section 149(6) applies] in relation to any appointment under subsection (4)(b) as [F21it applies] in relation to an appointment under section 149(2).
F19Words in s. 151(4)(b) substituted (1.4.2017) by Local Audit and Accountability Act 2014 (c. 2), s. 49(1), Sch. 12 para. 120(2); S.I. 2015/841, art. 4 (with Sch. para. 11) (as amended (27.6.2016) by S.I. 2016/675, art. 2)
F20Words in s. 151(6) substituted (1.4.2017) by Local Audit and Accountability Act 2014 (c. 2), s. 49(1), Sch. 12 para. 120(3)(a); S.I. 2015/841, art. 4 (with Sch. para. 11) (as amended (27.6.2016) by S.I. 2016/675, art. 2)
F21Words in s. 151(6) substituted (1.4.2017) by Local Audit and Accountability Act 2014 (c. 2), s. 49(1), Sch. 12 para. 120(3)(b); S.I. 2015/841, art. 4 (with Sch. para. 11) (as amended (27.6.2016) by S.I. 2016/675, art. 2)
152Examination of accounts an option for smaller groupsE+W
(b)section 151 (audit of accounts of larger groups) does not apply in relation to that year.
(a)this section applies in relation to a financial year of a parent charity,
(b)the aggregate gross income of the group in that year exceeds the sum specified in section 145(1), and
(c)subsection (6) or (7) (NHS charity: group accounts) does not apply in relation to it,
the group accounts for that year must, at the election of the charity trustees of the parent charity, be examined by an independent examiner (as defined in section 145(1)(a)) or audited by a person within section 144(2)(a) or (b).
(b)any order under section 153(1).
(4)If subsection (2) applies to the group accounts for a year and the aggregate gross income of the group in that year exceeds the sum specified in section 145(3), a person qualifies as an independent examiner for the purposes of subsection (2) if (and only if) the person is independent and meets the requirements of section 145(3)(a) or (b).
(a)give guidance to charity trustees of a parent charity in connection with the selection of a person for appointment as an independent examiner;
(b)give such directions as it thinks appropriate with respect to the carrying out of an examination in pursuance of subsection (2);
(a)this section applies in relation to a financial year of a parent charity, and
(b)section 149 (audit or examination of English NHS charity accounts) also applies in relation to that year,
the group accounts for that year must at the election of [F22the charity trustees of the parent charity be audited by a person, appointed by those trustees, who is within section 149(2)(a), (b) or (c); or examined by a person, appointed by those trustees, who is qualified to be an independent examiner] .
Subsections [F23(3A), (5) and (6)] of section 149 apply for the purposes of this subsection as they apply for the purposes of section 149(3)[F24; except that in subsection (3A)(b) of that section the reference to “the charity trustees” is to be read as a reference to “the charity trustees of the parent charity].
(b)section 150 (audit or examination of Welsh NHS charity accounts) also applies in relation to that year,
the group accounts for that year must, at the election of the Auditor General for Wales, be audited or examined by the Auditor General for Wales.
References in this Act to an auditor or an examiner have effect in relation to this subsection as references to the Auditor General for Wales acting under this subsection as an auditor or examiner.
(8)If the group accounts for a financial year of a parent charity are to be examined or audited in accordance with subsection (2), section 145(1) applies in relation to the parent charity's own accounts for that year (whether or not it would otherwise so apply).
(9)Nothing in subsection (6) or (7) affects the operation of section 149(3) to (6) or (as the case may be) section 150(3) in relation to the parent charity's own accounts for the financial year in question.
F22Words in s. 152(6) substituted (1.4.2017) by Local Audit and Accountability Act 2014 (c. 2), s. 49(1), Sch. 12 para. 121(2)(a); S.I. 2015/841, art. 4 (with Sch. para. 11) (as amended (27.6.2016) by S.I. 2016/675, art. 2)
F23Words in s. 152(6) substituted (1.4.2017) by Local Audit and Accountability Act 2014 (c. 2), s. 49(1), Sch. 12 para. 121(2)(b); S.I. 2015/841, art. 4 (with Sch. para. 11) (as amended (27.6.2016) by S.I. 2016/675, art. 2)
F24Words in s. 152(6) inserted (1.4.2017) by Local Audit and Accountability Act 2014 (c. 2), s. 49(1), Sch. 12 para. 121(2)(c); S.I. 2015/841, art. 4 (with Sch. para. 11) (as amended (27.6.2016) by S.I. 2016/675, art. 2)
153Commission's powers to order audit of group accountsE+W
(1)The Commission may by order require the group accounts of a parent charity for a financial year to be audited by a person within section 144(2)(a) or (b) if it appears to the Commission that—
(a)section 151(4)(a), or (as the case may be) section 152(2), has not been complied with in relation to that year within 10 months from the end of that year, or
(b)although section 151(4)(a) does not apply to that year, it would nevertheless be desirable for the group accounts for that year to be audited by a person within section 144(2)(a) or (b).
But this subsection does not apply if section 149 or 150 (audit or examination of NHS charity accounts) applies in relation to the parent charity for that year.
(2)If the Commission makes an order under subsection (1) with respect to group accounts, the auditor must be a person appointed by the Commission unless—
(b)the charity trustees of the parent charity themselves appoint an auditor in accordance with the order.
(a)from the charity trustees of the parent charity, who are personally liable, jointly and severally, for those expenses, or
(b)to the extent that it appears to the Commission not to be practical to seek recovery of those expenses in accordance with paragraph (a), from the funds of the parent charity.
Regulations relating to audits and examinationsE+W
(1)The [F25Secretary of State] may by regulations make provision—
[F26(aa)specifying one or more bodies for the purposes of section 149(2)(c);]
F25Words in s. 154(1) substituted (9.11.2016) by The Transfer of Functions (Elections, Referendums, Third Sector and Information) Order 2016 (S.I. 2016/997), art. 1(2), Sch. 2 para. 25(2)(x) (with art. 12)
F26S. 154(1)(aa) inserted (1.4.2017) by Local Audit and Accountability Act 2014 (c. 2), s. 49(1), Sch. 12 para. 122; S.I. 2015/841, art. 4
155Power of Commission to direct compliance with certain regulationsE+W
If any person fails to afford an auditor or an independent examiner or examiner any facility to which the auditor, independent examiner or examiner is entitled by virtue of section 154(1)(d) or (e), the Commission, for securing that the default is made good, may by order give such directions as it thinks appropriate—
(a)to that person,
(b)if the audit or examination is of individual accounts, to the charity trustees for the time being of the charity concerned, or
(c)if the audit or examination is of group accounts, to the charity trustees for the time being of such member of the group as the Commission thinks appropriate.
Duty of auditors etc. to report matters to CommissionE+W
156Duty of auditors etc. to report matters to CommissionE+W
(1)This section applies to a person (“P”) who—
(a)is acting as an auditor or independent examiner appointed by or in relation to a charity under sections 144 to 146 (audit or examination of individual accounts),
(b)is acting as an auditor or examiner appointed under section 149(2) or (3) (audit or examination of English NHS charity accounts), or
(c)is the Auditor General for Wales acting under section 150(2) or (3) (audit or examination of Welsh NHS charity accounts).
(2)If, in the course of acting in the capacity mentioned in subsection (1), P becomes aware of a matter—
(b)which P has reasonable cause to believe is likely to be of material significance for the purposes of the exercise by the Commission of its functions under the provisions mentioned in subsection (3),
P must immediately make a written report on the matter to the Commission.
(a)sections 46, 47 and 50 (inquiries by Commission);
(b)sections 76 and 79 to 82 (Commission's powers to act for protection of charities).
(4)If, in the course of acting in the capacity mentioned in subsection (1), P becomes aware of any matter—
(a)which does not appear to P to be one that P is required to report under subsection (2), but
(b)which P has reasonable cause to believe is likely to be relevant for the purposes of the exercise by the Commission of any of its functions,
P may make a report on the matter to the Commission.
(5)Where the duty or power under subsection (2) or (4) has arisen in relation to P when acting in the capacity mentioned in subsection (1), the duty or power is not affected by P's subsequently ceasing to act in that capacity.
(6)Where P makes a report as required or authorised by subsection (2) or (4), no duty to which P is subject is to be regarded as contravened merely because of any information or opinion contained in the report.
158Application of duty in relation to auditors etc. of group accountsE+W
(1)Subsections (2) to (6) of section 156 (duty of auditors etc. of individual accounts to report matters to Commission) apply in relation to a person appointed to audit, or report on, any group accounts under sections 151 to 153 as they apply in relation to the person referred to in section 156 as “P”.
(2)In section 156(2)(a), as it applies in accordance with subsection (1), the reference to the charity or any connected institution or body is to be read as a reference to the parent charity or any of its subsidiary undertakings.
159Application of duty in relation to Companies Act auditorsE+W
(1)Sections 156(2) to (6) and 157 (duty of auditors etc. of individual accounts to report matters to Commission) apply in relation to a person acting as a Companies Act auditor of a charitable company as they apply in relation to the person referred to in section 156 as “P”, but reading any reference to P's acting in the capacity mentioned in section 156(1) as a reference to the person acting as a Companies Act auditor.
Exempt and excepted charitiesE+W
160Exempt charitiesE+W
(1)Nothing in sections 144 to 155 (audit or examination of accounts) applies to an exempt charity.
(2)Sections 156(2) to (6) and 157 (duty of auditors etc. of individual accounts to report matters to Commission) apply in relation to a person appointed to audit, or report on, the accounts of an exempt charity which is not a company as they apply in relation to the person referred to in section 156 as “P”, but reading—
(a)any reference to P's acting in the capacity mentioned in section 156(1) as a reference to the person acting as a person so appointed, and
(b)any reference to the Commission or to any of its functions as a reference to the charity's principal regulator or to any of the latter's functions as principal regulator in relation to the charity.
(3)Nothing in section 158 (duty of auditors etc. in relation to group accounts) applies to an exempt charity.
CHAPTER 4E+WAnnual reports and returns and public access to accounts etc.
Annual reports etc.E+W
162Charity trustees to prepare annual reportsE+W
as may be prescribed by regulations made by the [F27Secretary of State].
F27Words in s. 162(1) substituted (9.11.2016) by The Transfer of Functions (Elections, Referendums, Third Sector and Information) Order 2016 (S.I. 2016/997), art. 1(2), Sch. 2 para. 25(2)(y) (with art. 12)
[F28162AAnnual reports: fund-raising standards informationE+W
(1)If section 144(2) applies to a financial year of a charity, the annual report in respect of that year must include a statement of each of the following for that year—
(a)the approach taken by the charity to activities by the charity or by any person on behalf of the charity for the purpose of fund-raising, and in particular whether a professional fund-raiser or commercial participator carried on any of those activities;
(b)whether the charity or any person acting on behalf of the charity was subject to an undertaking to be bound by any voluntary scheme for regulating fund-raising, or any voluntary standard of fund-raising, in respect of activities on behalf of the charity, and, if so, what scheme or standard;
(c)any failure to comply with a scheme or standard mentioned under paragraph (b);
(d)whether the charity monitored activities carried on by any person on behalf of the charity for the purpose of fund-raising, and, if so, how it did so;
(e)the number of complaints received by the charity or a person acting on its behalf about activities by the charity or by a person on behalf of the charity for the purpose of fund-raising;
(f)what the charity has done to protect vulnerable people and other members of the public from behaviour within subsection (2) in the course of, or in connection with, such activities.
(2)The behaviour within this subsection is—
(a)unreasonable intrusion on a person's privacy;
(b)unreasonably persistent approaches for the purpose of soliciting or otherwise procuring money or other property on behalf of the charity;
(c)placing undue pressure on a person to give money or other property.
(a)“commercial participator” and “professional fund-raiser” have the meaning given by section 58 of the Charities Act 1992 (control of fund-raising: interpretation));
(b)“fund-raising” means soliciting or otherwise procuring money or other property for charitable purposes.
(4)Section 58(6) and (7) of the Charities Act 1992 (references to soliciting money etc) apply for the purposes of this section as they apply for the purposes of Part 2 of that Act.]
F28S. 162A inserted (1.11.2016) by Charities (Protection and Social Investment) Act 2016 (c. 4), ss. 13(4), 17(4); S.I. 2016/815, reg. 4(c) (with reg. 5)
163Transmission of annual reports to Commission in certain casesE+W
(1)Where a charity's gross income in any financial year exceeds £25,000, a copy of the annual report required to be prepared under section 162 in respect of that year must be transmitted to the Commission by the charity trustees within—
164Documents to be transmitted with annual reportE+W
166Annual reports and group accountsE+W
as may be prescribed by regulations made by the [F29Secretary of State].
F29Words in s. 166(2) substituted (9.11.2016) by The Transfer of Functions (Elections, Referendums, Third Sector and Information) Order 2016 (S.I. 2016/997), art. 1(2), Sch. 2 para. 25(2)(z) (with art. 12)
168Excepted charitiesE+W
Annual returnsE+W
169Annual returns by registered charitiesE+W
Availability of documents to publicE+W
171Supply by charity trustees of copy of most recent annual reportE+W
172Supply by charity trustees of copy of most recent accountsE+W
CHAPTER 5E+WPowers to set financial thresholds
174Powers to alter certain sums specified in this PartE+W
(1)The [F30Secretary of State] may by order amend any provision listed in subsection (2)—
(a)by substituting a different sum for the sum for the time being specified in that provision, or
(b)if the provision specifies more than one sum, by substituting a different sum for any sum specified in that provision.
section 133 (gross income in connection with option to prepare account and statement instead of statement of accounts);
section 144(1)(a) or (b) (gross income and value of assets in connection with requirements as to audit of larger charities);
section 145(1) (gross income in connection with option to have accounts examined instead of audited);
section 145(3) (gross income in connection with requirements as to qualifications of independent examiner);
section 163(1) or (2) (gross income in connection with requirements to transmit annual report to Commission);
section 169(2) (gross income in connection with requirement to prepare annual return).
F30Words in s. 174(1) substituted (9.11.2016) by The Transfer of Functions (Elections, Referendums, Third Sector and Information) Order 2016 (S.I. 2016/997), art. 1(2), Sch. 2 para. 25(2)(aa) (with art. 12)
175Aggregate gross income of groupE+W
The [F31Secretary of State] may by regulations make provision for determining for the purposes of this Part the amount of the aggregate gross income for a financial year of a group consisting of a parent charity and its subsidiary undertaking or undertakings.
F31Words in s. 175 substituted (9.11.2016) by The Transfer of Functions (Elections, Referendums, Third Sector and Information) Order 2016 (S.I. 2016/997), art. 1(2), Sch. 2 para. 25(2)(bb) (with art. 12)
176Larger groups: “relevant income threshold” and “relevant assets threshold”E+W
(1)The reference to the relevant income threshold in paragraph (a) or (b) of section 151(1) is a reference to the sum prescribed as the relevant income threshold for the purposes of that paragraph.
(2)The reference to the relevant assets threshold in paragraph (b) of section 151(1) is a reference to the sum prescribed as the relevant assets threshold for the purposes of that paragraph.
(3)“Prescribed” means prescribed by regulations made by the [F32Secretary of State].
F32Words in s. 176(3) substituted (9.11.2016) by The Transfer of Functions (Elections, Referendums, Third Sector and Information) Order 2016 (S.I. 2016/997), art. 1(2), Sch. 2 para. 25(2)(cc) (with art. 12)