Calderdale Metropolitan Borough Council has become the first local authority in England and Wales to be issued with an official warning by the Charity Commission.

The regulator has made the move after the council “failed to comply with its duties as trustee of 12 charities”.

This includes concerns of its role overseeing “several assets which are important to the local community”, including Bacup Road Recreational Ground, Tetley Memorial Park and Public Central Library.

During its investigation the regulator found that the council had failed to file annual returns and accounts for all 13 charities it is a trustee of. These have been overdue “for several years”, it added.

An action plan had been issued to Calderdale council last year but this was not complied with, a situation that “amounts to misconduct and/or mismanagement” by the local authority.

Following the official warning the council has been asked by the regulator to ensure it meets its accounting responsibilities for the charities it is a trustee of.

It must also provide up to date contact details for all the charities, hold regular trustee meetings and ensure all councils “are aware of their duties and responsibilities”.

In addition, the council must review the financial controls of all charities and provide evidence to the regulator of action being taken.

Further regulatory action will be taken by the Commission if the council fails to act, the regulator has warned.

The warning to Calderdale council has also been issued amid concerns raised by Charity Commission chief executive David Holdsworth last month about a rise in cases where local authorities were failing in their role as charitable trustees of land and properties.

He wrote to all council chief executives to remind them of their duties. Common issues he highlighted include councils changing the status of charitable land and “disposing of it in a way that is incompatible with its charitable purposes”.

“All trustees have a responsibility to their charities and beneficiaries to ensure that their charities are well managed,” said Charity Commission assistant director of regulatory services Tracy Howarth.

“This is a duty that is important when vital community assets are in their care.
“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.

“In light of this we have now issued it with an Official Warning, which is the first time we’ve used this power with any council.

“All local authorities who serve as trustees should take note of our advice to ensure they understand what it means to be a trustee.”

Calderdale Council's deputy leader Scott Patient said the local authority is taking the Charity Commission's concerns "very seriously".

“We accept that our work to file accounts for the charities for which we are Trustee should have been better, and the delay does not meet our high service standards," he said.

“We are confident that the charitable purpose of all the charities is being fulfilled.

“We are working to correct the delayed filing of accounts and will act on all of the Charity Commission’s requirements. We will learn from this and put procedures in place to make sure it doesn’t happen again.”

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