Accounts & Returns
Duty to keep proper books of account.
The charity trustees of a charitable organisation shall, in relation to that charitable organisation, keep or cause to be kept proper books of account, whether in the form of documents or other record, that—
- correctly record and explain the transactions of the organisation,
- enable the financial position of the organisation to be determined with reasonable accuracy at any time,
- enable the charity trustees to ensure that any statements of account are prepared in compliance with regulations made, and
- enable the accounts of the organisation to be readily and properly audited.
The books of account of a charitable organisation shall be kept on a continuous and consistent basis; that is to say, the entries therein shall be made in a timely manner and be consistent from one year to the next.
Books of account shall contain—
- entries, from day to day, of all sums of money received and expended by the charitable organisation concerned and the matters in respect of which the receipt and expenditure takes place, and
- a record of the assets and liabilities of the charitable organisation.
The charity trustees of a charitable organisation shall make the books of account, the annual statement of accounts and any account and statement prepared , of the charitable organisation, available in written form in an official language of the State at all reasonable times for inspection, without charge, by persons entitled pursuant to this Act to inspect the books of account of the organisation.
A charity trustee who contravenes these provisions is guilty of an offence.
It shall be a defence to proceedings for an offence consisting of the contravention for the defendant to prove that he or she believed on reasonable grounds that a competent and reliable person (other than the defendant) was duly charged with the duty of ensuring compliance and was in a position to discharge that duty.
The provision does not apply to charitable organisations that are companies.
Annual statement of accounts.
The charity trustees of a charitable organisation shall, in respect of each financial year, prepare a statement of accounts ( referred to as the “annual statement of accounts”) in such form and containing information relating to such matters as may be prescribed by regulations made by the Minister.
Where the gross income or expenditure of a charitable organisation in a financial year does not exceed €100,000, the charity trustees may, instead of preparing an annual statement of accounts in respect of that year, prepare an income and expenditure account in respect of, and a statement of the assets and liabilities of, the charitable organisation.
A charity trustee who contravenes this provision shall be guilty of an offence. It shall be a defence to proceedings for an offence consisting of a contravention o for the defendant to prove that he or she believed on reasonable grounds that a competent and reliable person was duly charged with the duty of ensuring compliance with that requirement and was in a position to discharge that duty.
This provision does not apply—
- to a charitable organisation that is a company,
- to an education body,
- to a charitable organisation in respect of a financial year in which its gross income or total expenditure is less than €10,000, or such greater amount, not exceeding €50,000, as may be prescribed, or in relation to a centre for education designated by the Minister
Annual returns under Companies Acts.
The registrar of companies shall, as soon as practicable after receiving the annual return of a company in respect of which it has received a notification give a copy of that annual return and copies of all documents annexed to the annual return to the Authority.
Annual audit or examination of accounts.
The accounts of a charitable organisation in respect of a financial year (referred to as the “relevant financial year”) shall be audited not later than 9 months after the end of the relevant financial year by a qualified person if the gross income or total expenditure of the charitable organisation in—
the relevant financial year,
- the financial year (if any) of the charitable organisation immediately preceding the relevant financial year, or
- the financial year (if any) of the charitable organisation immediately preceding the year.
exceeds such amount as may be prescribed.
The Minister shall not prescribe an amount greater than €500,000.
Subject to the below the accounts of a charitable organisation (other than a charitable organisation in respect of a financial year shall, at the election of the charity trustees, either—
- be examined by an independent person approved by the Authority, being a person who has the requisite ability and practical experience to carry out a competent examination of the accounts, or
- be audited by a qualified person,
not later than nine months after the end of the financial year concerned.
The Authority may give a direction to the charity trustees of a charitable organisation requiring that the accounts of the charitable organisation in respect of such financial year as is specified in the direction be audited by a qualified person.
Where there has been a contravention of the above obligation or the Authority is not satisfied with the manner in which the accounts of a charitable organisation to which that provision applies have been audited, the Authority may appoint such qualified person as it considers appropriate to audit the accounts concerned.
Where there has been a contravention or the Authority is not satisfied with the manner in which the accounts of a charitable organisation have been examined or audited, as the case may be, the Authority may appoint such qualified person as it considers appropriate to audit the accounts concerned.
The expenses incurred in the carrying out of an audit by a person including the auditor’s remuneration shall be recoverable by the Authority as a simple contract debt in any court of competent jurisdiction—
- from the charity trustees of the charitable organisation (who shall be jointly and severally liable for those expenses), or
- from the charitable organisation concerned, where it is not practicable to recover them from the charity trustees.
The Authority may give such directions as it considers appropriate, with respect to the carrying out of an examination to charity trustees of a particular charitable organisation or generally.
Where, in relation to a charitable organisation, there is a contravention of this provision, the charity trustees shall each be guilty of an offence.
It shall be a defence to proceedings for an offence consisting of the contravention of a requirement for the defendant to prove that he or she believed on reasonable grounds that a competent and reliable person was duly charged with the duty of ensuring compliance with that requirement and was in a position to discharge that duty.
A charity trustee who obstructs or fails to cooperate with a person appointed or who fails to give him or her such assistance as he or she may require for the purpose of carrying out an audit of the accounts of the charitable organisation concerned shall be guilty of an offence.
Where, in relation to a charitable organisation, there is a contravention of a requirement in a direction, each of the charity trustees of the organisation shall be guilty of an offence.
This provision does not apply—
- to a charitable organisation that is a company,
- to an education body,
- to a charitable organisation in respect of a financial year in which its gross income or total expenditure is less than— €10,000, or such greater amount, not exceeding €50,000, as may be prescribed,or
- in relation to a centre for education designated by the Minister
A “qualified person” means—
- a person who, in accordance with Companies Act is qualified to be appointed as a company auditor, or
- in relation to a charitable organisation that is established in an EEA state, and does not have a principal place of business in the State,
- a person who is qualified under the law of that EEA state to perform functions the same as or similar to those performable in the State
Regulations in relation to audits, etc.
The Minister may by regulations—
- make provision in relation to the duties of an auditor, or independent person carrying out an audit or examination, including provision in relation to the making of a report as respects to the annual statement of accounts or the income and expenditure account and statement of assets and liabilities, as may be appropriate.
- make provision in relation to the making by an independent person of a report in respect of an examination carried out by him or her,
- confer on such an auditor or independent person the power to inspect books, documents and other records (however kept) relating to a charitable organisation,
- confer on such an auditor or independent person a power to require, in the case of a charitable organisation, information and explanations from past or present charity trustees of the charitable organisation, or from past or present members of staff of the charitable organisation.
If any person fails to afford an auditor or an independent person any facility to which he or she is entitled by virtue of regulations the Authority may give that person, or the charity trustees for the time being of the charity concerned, such directions as the Authority thinks appropriate.
A person or charity trustee, as the case may be, who does not comply with a direction shall be guilty of an offence.
Annual Reports
The charity trustees of a charitable organisation shall, not later than 10 months or such longer period as the Authority may specify, after the end of each financial year, prepare and submit to the Authority a report (referred to as the “annual report”) in respect of its activities in that financial year.
The Minister may make regulations for these purposes. The regulations may—
- contain different provisions in relation to different classes of information and different classes of charitable organisations,
- require that an annual report contain such information (other than information required to be provided in an annual report as may be specified in the regulations, and
- provide that a report shall be prepared in such manner as is specified in the regulations.
The following shall be attached to an annual report submitted by a charitable organisation:
- a copy of the annual statement of accounts or the income and expenditure account and the statement of assets and liabilities as the case may be, in respect of the financial year concerned;
- where the accounts of the charitable organisation have been audited, a copy of the auditor’s report;
- where the accounts of the charitable organisation have been examined by an independent person, a copy of the independent person’s report.
A copy of the accounts prepared by a charitable organisation in accordance with the Companies Acts shall, in respect of the financial year concerned, be attached to an annual report submitted by that charitable organisation.
This applies to a charitable organisation that—
- is a company, and
- is not required to annex its accounts to the annual return made by it to the registrar of companies under the Companies Acts.
An annual report submitted to the Authority and any document attached thereto shall be kept by the Authority for such period as it thinks fit.
A charitable organisation that is a corporate body that contravenes this provision shall be guilty of an offence. Where, in relation to a charitable organisation, there is a contravention, each of the charity trustees of the organisation shall be guilty of an offence.
The requirement to Provide Information
The Authority may, by direction in writing, require a charitable organisation to provide the Authority with such information as it may reasonably require to enable it to perform its functions. A charitable organisation shall comply with a direction made.
Public inspection of annual reports, etc.
Subject to any enactment or rule of law prohibiting the disclosure of information, the Authority shall make available for inspection by members of the public all annual reports and documents attached thereto that remain in its keeping, at all reasonable times during the period for which it continues to remain in its keeping or such lesser period as it considers appropriate and at such place or places as it determines.
This does not apply to a private charitable trust. A “private charitable trust” means a charitable trust that is not funded by donations from the public.