Europe, UK (Commonwealth Union) – The English and Welsh charity watchdog has reprimanded Calderdale Metropolitan Borough Council by issuing an Official Warning, following the council’s neglect of its responsibilities as trustee for 13 charitable organizations. This marks the inaugural instance of the regulatory body delivering such a warning to a local government authority.
Calderdale is among more than 1,200 councils across England and Wales that serve as trustees for various charities. The charities managed by this council include significant community assets like Bacup Road Recreational Ground, Tetley Memorial Park, and the Public Central Library.
The regulator’s Chief Executive recently alerted all local authorities to the “substantial administrative challenges” they may face if they do not adequately meet their trustee obligations. In his communication, David Holdsworth outlined steps councils can take to ensure they are compliant, such as reviewing the regulator’s newly updated guidance for local authorities acting as charity trustees and the accompanying guide for councilors.
The letter further made recommendations that charities maintain a register of assets and land held in trust to ensure councils manage these properly in their role as trustees. Failing to accurately identify charitable assets could result in the loss of essential public facilities, and if charity laws are not adhered to, the Commission may intervene.
It was indicated that as trustees, councils are responsible for overseeing the charity’s operations, managing its assets, and fulfilling all the duties required of any trustee, including submitting annual returns to the Charity Commission.
Calderdale Metropolitan Borough Council has neglected to submit the required annual returns and accounts for all 13 charities under its care, with some being overdue for several years. The Official Warning indicates that this failure, along with the council’s non-compliance with an action plan issued by the Commission in 2023, constitutes misconduct and/or mismanagement in the administration of the charities.
To address the misconduct and/or mismanagement outlined in the Official Warning, the council is required to submit all outstanding accounts.
Tracy Howarth, Assistant Director of Regulatory Services, at the Charity Commission says “All trustees have a responsibility to their charities and beneficiaries to ensure that their charities are well managed. This is a duty that is really important when vital community assets are in their care.”
