Calderdale Council receives official charity warning

The Charity Commission, the regulator for charities in England and Wales, has issued an Official Warning to Calderdale Metropolitan Borough Council for failing to fulfill its duties as the trustee of 13 charities. This marks the first time the Commission has issued such a warning to a local authority, underscoring the seriousness of the council’s shortcomings.

Calderdale Council is one of over 1,200 councils across England and Wales that act as trustees for charities. The charities under Calderdale’s care include significant community assets such as Bacup Road Recreational Ground, Tetley Memorial Park, and the Public Central Library. These assets play a vital role in the local community, making proper management essential.

The Charity Commission’s Chief Executive, David Holdsworth, recently addressed all local authorities, warning of the potential “significant administrative headaches” that could arise from failing to properly manage charitable duties. His letter outlined several key actions that councils should take, including reviewing the Commission's updated guidance for local authorities as charity trustees and maintaining a register of charitable assets and land.

Calderdale Council's failure to file annual returns and accounts for all 13 charities, with some accounts overdue for several years, prompted the Official Warning. The council also failed to comply with an action plan issued by the Commission in 2023. The Commission has labeled this failure as misconduct and/or mismanagement in the administration of the charities.

To address the issues outlined in the Official Warning, Calderdale Council is required to file all outstanding accounts and implement measures to ensure future compliance with accounting responsibilities. The Commission has also instructed the council to update contact details for all charities, maintain a local register of the charities and their assets, hold regular trustee meetings, and review financial controls for all 13 charities.

Tracy Howarth, Assistant Director of Regulatory Services at the Charity Commission, emphasised the importance of trustee responsibilities, particularly when managing vital community assets. She stated, "In failing to file accounts or take action, even after we provided advice and gave support to comply with our instructions, Calderdale Council fell below the standard we, and the public, expect of trustees."

The Charity Commission has warned that any further failure to comply with the required remedial steps or any additional breach of duty could result in more severe regulatory actions against Calderdale Council. This unprecedented warning serves as a stark reminder to all local authorities about the critical importance of understanding and fulfilling their roles as trustees.