The trustees’ annual report and accounts are important to public trust and confidence because they set out what activities have been undertaken, the money received and spent. Charities with an income above £25,000, and all Charitable Incorporated Organisations (CIOs) must file copies of their trustees’ annual report, accounts and external scrutiny report (audit or independent examiners’ report) with the Commission.
As part of its aim to ensure that charities comply with this requirement, the Commission undertakes a programme of work to identify and follow up on charities that have not provided the required information for two years or more.
These ‘double defaulting’ charities are given the opportunity to file these documents within a certain time period. If they do not comply with this request, they are put into a class inquiry, opened under section 46 of the Charities Act 2011.