Outstanding Charity, Union Financial Statements

Madam President, you will recall that the 2013 Speech from the Throne committed Government to amending the Charities Act 1978 to protect the public interest by: expanding the definition of charitable organizations to include entities that raise funds from private sources; establishing new offences for non-disclosure and non-distribution of public funds; and giving the Charity Commissioners increased regulatory authority.

Likewise Madam President, Government is committed to protecting the interests of members that are required to render membership fees for participation in various Unions.

It is imperative that both registered charities and trade unions comply with their statutory reporting requirements, which were enacted to provide transparency in relation to these organizations’ operations.

Madam President, under Section 8 of the Charities Act 1978, registered charities are required to submit a copy of their financial statements to the Registrar General within 6 months of the end of each financial year.

As of June 2013 there were 373 registered charities. There are 50 registered charities that have not provided their financial statements since 2010.

Section 8(2) of the Charities Act 1978 states that failure to comply with this reporting requirement is a ground for the cancellation of a charity’s registration. The Registrar General has already contacted the delinquent charities and given them a deadline by which all of the outstanding accounts must be submitted. The deadline for submission for each non-compliant charity has been communicated directly to each organization and extends to the end of July 2013.

Madam President, the Charity Commissioners have taken the view that those that do not comply by the deadline without good reason will have their registration cancelled. To this end, all charities are encouraged to contact the Registrar General as soon as possible to make the necessary arrangements as it relates to their required submission.

Madam President, under section 18 of the Trade Union Act 1965, registered trade unions must submit an Annual Return to the Registrar General by the 1st June every year. The Annual Return includes an audited statement of the receipts, funds and effects of the trade union, and a completed Form P, which provides the names of the union’s officers and trustees.

As of 1st June 2013, only one trade union had complied with the statutory requirement to have its Annual Return for 2012 submitted by the deadline. Of the remaining trade unions, two have only their 2012 Annual Returns outstanding, four have outstanding Annual Returns for 2011 and 2012, and one has not submitted an Annual Return since 1997 due to technical and organizational challenges. The Registrar General remains in contact with the trade unions on an ongoing basis in an effort to achieve full compliance.

Madam President, notwithstanding the delayed submissions, the Ministry is satisfied that the Unions are indeed making good progress in addressing the issue of outstanding accounts. In fact, we are encouraged by the progress made to date and we encourage continued diligence in this respect.

Our efforts will continue to be directed towards achieving statutory compliance and protecting the public interests.

Thank you Madam President.

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