Compliance of Voluntary Organisations Dr. Anthony J. Abela Medici Commissioner for Voluntary Organisations

compliance of voluntary organisations What is Compliance On enrolment, voluntary organisations (VOs) are obliged to adhere to Subsidiary Legislation 492.01 (Annual Returns and Annual Accounts) Regulations 2012 5/6/2019 compliance of voluntary organisations

compliance of voluntary organisations On enrolment, the administrators declare in writing, signed by one of the administrators, that they are aware of their obligations under these regulations which shall apply with effect from the date of enrolment - article 3 (3) of Subsidiary Legislation 492.01 5/6/2019 compliance of voluntary organisations

Overriding Regulations In the case of VOs which are enrolled, these regulations shall prevail over any regulations establishing the form and content of annual reports and annual accounts and methods of review which may apply in terms of the Second Schedule to the Civil Code or in terms of any other law which may be applicable to the particular legal form of an organisation - article 3(4) of Subsidiary Legislation 492.01 5/6/2019 compliance of voluntary organisations

compliance of voluntary organisations In accordance with article 4 of the Voluntary Organisations Act (Chapter 492 of the Laws of Malta), only voluntary organisations which are enrolled with the Commissioner and compliant with Subsidiary Legislation 492.01 can: 5/6/2019 compliance of voluntary organisations

compliance of voluntary organisations Benefits in Enrolling receive or be the beneficiary of grants, sponsorships or other financial aid from the Government, any entity controlled by the Government or the Voluntary Organisations Fund be the beneficiary of any policies supporting voluntary action as these may be developed by the Government 5/6/2019 compliance of voluntary organisations

compliance of voluntary organisations Benefits in Enrolling receive or be the beneficiary of exemptions, privileges or other entitlements in terms of any law  be a party to contracts and other engagements, whether against remuneration or not, for the carrying out of services for the achievement of its social purpose at the request of the Government or any entity controlled by the Government” 5/6/2019 compliance of voluntary organisations

Benefits vs. compliance Voluntary organisations applying for any funding scheme or other benefits as detailed in article 4 of the Voluntary Organisations Act, must ensure that they are compliant with this Act and Subsidiary Legislation 492.01 5/6/2019 compliance of voluntary organisations

compliance of voluntary organisations VOs are required to present their Annual Returns and Annual Accounts punctually and in full, using the content and form for submitting their annual accounts as specified by Schedule 2 of the same Subsidiary Legislation in accordance with their category. The dates for filing of Annual Returns and Annual Accounts are clearly established in Schedule 4 of the Subsidiary Legislation as follows:   Category 1 by not later than 15th March Category 2 by not later than 30th April Category 3 by not later than 31st August 5/6/2019 compliance of voluntary organisations

compliance of voluntary organisations Voluntary organisations will receive a reminder when their Annual Returns and Annual Accounts are due. 5/6/2019 compliance of voluntary organisations

Powers of the Commissioner Enrolled voluntary organisations are reminded about the powers of the Commissioner against defaulting enrolled voluntary organisations in accordance to article 12 of Subsidiary Legislation 492.01, which states: 5/6/2019 compliance of voluntary organisations

Powers of the Commissioner (Art. 12) The Commissioner shall be empowered to take all the necessary measures against defaulting enrolled voluntary organisations which include the following:   5/6/2019 compliance of voluntary organisations

compliance of voluntary organisations if after the lapse of sixty days from the due date of filing mentioned in Schedule 4, an enrolled voluntary organisation has not yet filed the annual return with all the required documents as attachments, the Commissioner shall send a written warning to the administrators regarding the default and shall provide the administrators with an opportunity to explain the reason or reasons for the delay and may thereafter set a new deadline for filing if the reason or reasons given are valid; 5/6/2019 compliance of voluntary organisations

Powers of the Commissioner should the administrators not provide any valid reason for the breach, or fail to observe a new deadline set by the Commissioner for filing, if any such reason is valid, the Commissioner shall be empowered to apply to the Administrative Review Tribunal with any or all of the following requests: 5/6/2019 compliance of voluntary organisations

Powers of Commissioner (i) to prohibit public collections until the annual return with all the required documents as attachments, are filed; ii) to request the disqualification of the administrators; (iii) if the breach is not remedied within nine months, to cancel the enrolment of the voluntary organisation in accordance with article 19 of the Act.” 5/6/2019 compliance of voluntary organisations

Powers of the Commissioner   Moreover, the Commissioner has the power to open an investigation into the organisation in accordance with articles 19 and 34 of the Voluntary Organisations Act (Cap. 492 of the Laws of Malta) which investigation will render the organisation liable to being fined. 5/6/2019 compliance of voluntary organisations

Responsibility of Administrators Voluntary organisations are reminded that it is the responsibility of its administrators to ensure that their Annual Returns and Annual Accounts are submitted in full and on time.   5/6/2019 compliance of voluntary organisations

Additional powers to the Commissioner The Amendments to the Voluntary Organisations Act (Chapter 492 of the Laws of Malta) will give the Commissioner for Voluntary Organisations the obligation to disenrol any VO which is in default for a number of months or years without the need to refer the case to the Administrative Review Tribunal. 5/6/2019 compliance of voluntary organisations

Issue of Compliance Certificate The Commissioner issues a Compliance Certificate to voluntary organisations when annual returns and accounts are submitted in accordance with Subsidiary Legislation 492.01. 5/6/2019 compliance of voluntary organisations

compliance of voluntary organisations Achieving Compliance VOs shall prepare an annual report with the content and in the form laid down in Schedule 1 of Subsidiary Legislation 492.01 – article 4(1) 5/6/2019 compliance of voluntary organisations

compliance of voluntary organisations Definition of Revenue Revenue means any income, donations, grants and any other funds raised through activities or fundraising that are received by the VO in the relevant financial period, net of expenses which are directly related or connected to the income, donations or grants - Subsidiary Legislation 492.01, article 2(1). 5/6/2019 compliance of voluntary organisations

Annual Returns (Art. 4(2)) The Annual Return shall include a statement on the number of members as at the date of the annual return An organisational chart A copy of the annual report which shall be authenticated by one administrator A copy of the annual accounts which shall be authenticated by two administrators as per Schedule 2 5/6/2019 compliance of voluntary organisations

compliance of voluntary organisations Annual Returns A statement of account relative to any event organised and / or activity performed to make public collections which shall be drawn up in accordance with Schedule 3 All VOs shall keep an updated list of members in a register of members and the Commissioner may request in writing such a list signed by 2 administrators. 5/6/2019 compliance of voluntary organisations

compliance of voluntary organisations Annual Returns A copy of any written resolution or decision of the appropriate body or person whereby the statute is amended, together with a copy of any documents amending the Statute authenticated by a Notary in the case of a public deed and by one administrator in other cases 5/6/2019 compliance of voluntary organisations

compliance of voluntary organisations Annual Returns A revised and updated certified copy of the Statute which shall consolidate therein all other changes made in the Statute. (track changes) – Subsidiary Legislation 492.01 – article 8(b) 5/6/2019 compliance of voluntary organisations

Common Issues in Non Achievement of Compliance Enrolled voluntary organisations who do not submit their Annual Returns and Annual Accounts by the date as prescribed in the Subsidiary Legislation 492.01 5/6/2019 compliance of voluntary organisations

Common Issues in Non Achievement of Compliance Only partial submissions are submitted Missing required signatures, No submission of Annual Administrative Report Annual Accounts are not submitted as per their Category as set by the Subsidiary Legislation. 5/6/2019 compliance of voluntary organisations

Common Issues in Non Achievement of Compliance Enrolled VOs that do not have : (i) a proper hand over and/or (ii) adequate hand over from the previous committee members/administrators. This is particularly prevalent in student voluntary organisations. 5/6/2019 compliance of voluntary organisations

Common Issues in Non Achievement of Compliance When administrators are not collaborative and take more time than provided, to submit the necessary requested documents and/or clarifications. Even though reminders are sent prior to deadlines, these are not being headed by certain enrolled VOs. 5/6/2019 compliance of voluntary organisations

Compliance Certificate The Commissioner and his Staff are there to help and assist all Voluntary Organisations in achieving compliance so long as it is within the Law to do so. 5/6/2019 compliance of voluntary organisations