2. Reporting matters of material significance
Laura Anderson
Head of Enforcement, Scottish Charity Regulator

3. The basics
All independent examiners and auditors of Scottish charities have a legal duty to report matters of material significance to OSCR
Legal duty stems from section 46 of the 2005 Act
Covers all charities and all independent examiners and auditors
Duty to report matters of material significance
Discretion to report other matters

4. More detail about reporting
Preferable to make the report in writing. Send confidentially by to
Provide as much information and detail as possible but don’t delay unnecessarily to gather information
Our expectation is that independent examiners and auditors fulfil their duties and use their unique position appropriately to help us regulate
We take a dim view of those who fail in their duties – you have a part to play in effective regulation

5. Current consultation
UK-wide consultation on the matters that must be reported
Changes are based on regulatory experience and the establishment of a regulator in Northern Ireland
Consultation open until 11 September

6. The matters to be reported (1)
Matters suggesting dishonesty or fraud involving a material loss of, or a material risk to, charitable funds or assets
Failure of internal controls, including failure in charity governance that resulted in/could give rise to, a material loss or misappropriation of charitable funds
Knowledge or suspicion that the charity or charitable funds have been used for money laundering or such funds are the proceeds of serious organised crime or that the charity is a conduit for criminal activity
Matters leading to the knowledge or suspicion that the charity, its trustees, employees or assets, have been involved in or used to support terrorism or proscribed organisations
Evidence suggesting that the charity’s beneficiaries have been or were put at significant risk of abuse or mistreatment

7. The matters to be reported (2)
Single or recurring breach(es) of either a legislative requirement or of the charity’s trusts leading to material charitable funds being misapplied
Evidence suggesting a deliberate or significant breach of an order or direction made by a charity regulator under statutory powers
On making a modified audit opinion, emphasis of matter or qualified independent examiner’s report, a report setting out the nature of the issue with supporting reasons and notification of the action takenby the trustees subsequent to that opinion/report
Evidence that, without reasonable cause, trustees have not taken action on matters identified by the auditor or examiner in their scrutiny of accounts for a previous year
Evidence suggesting that conflicts of interest have not been managed by the trustees in accordance with guidance issued by the charity regulator and/or related party transactions have not been fully disclosed in all respects required by the applicable SORP.

8. Feedback needed on…
Are these the correct matters that should be reported to the charity regulator?
Are the matters described in a clear and helpful way?
Are there any other matters which should be included or should any be removed?

9. Thank you for listening
Final reminders:
Consultation open until 11 September
Respond by or post
Take the opportunity to have your say
Thank you for listening