Accounts) Regulations, 2012

L.N. 73 of 2012

VOLUNTARY ORGANISATIONS ACT

(CAP. 492)

Voluntary Organisations (Annual Returns and Annual

Accounts) Regulations, 2012

IN exercise of the powers conferred by paragraph (m) of

sub-article (1) of article 42 of the Voluntary Organisations Act,

the Minister of Justice, Dialogueand the Family, has made the

following regulations:-

(1) The title of these regulations is the Voluntary

Organisations (Annual Returns and Annual Accounts) Regulations,

2012. (2) These regulations shall come into force on the 17th

February, 2012.

(Regulation 4)

Content and form of annual return

Purpose

The purpose of the annual return is to provide the Commissioner and any

1. interested persons with up to date information about the enrolled voluntary organisation, its

administrators and its activities, generally. It is important that the exercise be qualitative in

that the persons preparing the annual return must give a true account of the facts.

Content and form

The content and form of the annual return with all the required

2. documents as attachments that each enrolled voluntary organisation shall file duly filled with

the Commissioner, is as follows

Contents and Form of Annual Return

Annual Return of

___________________________ (name of enrolled

voluntary organization)

Date to which this return is made up: ____________________________ (being the

anniversary of the voluntary organisation’s date of

enrollment)

1. Address

(Address of the office of the enrolled voluntary organization)

2. General Information about the Voluntary Organisation

VO number

Contact Details

Website

* If the voluntary organisation is a foreign or international organisation, fill in the details of

the local representative. It must be ensured that the address that is included is the address of

the local representative in Malta.

3. Administration

Particulars of the persons who are administrators of the enrolled voluntary organisation at the

date of this return.

Name

Nationality

Usual residential address

4. Declaration of Completeness and Correctness

Date: ________________

I hereby confirm that the details provided, including the attached Appendices, are complete

and truthful as to their contents.

(signature)

Name of Administrator

5. Appendices

Appendix A – Organisational Chart

Appendix B – Documents amending the Statute and/or an updated copy of the

Statute which shall consolidate therein all other changes made in the enrolled

voluntary organization (if applicable)

Appendix C – Annual Report

Appendix D – Annual Accounts

*Tick documents attached

(1)

In these regulations unless the context otherwise

requires

“accountant” shall have the same meaning as assigned

to it in the Accountancy Profession Act. Suchperson shall not

be an administrator, a member or an employee of the enrolled

voluntary organisation he is drawing up and signing the

accounts for.

“the Act” means the Voluntary Organisations Act;

“active member” means a member of an enrolled

voluntary organisation who has paid such membership fee as

may be applicable for the current year and who forms part

of the statutory bodies or any of the sub-committees of the

enrolled voluntary organisation;

“administrator” shall have the same meaning as assigned

to it by the Act when used in the context of voluntary

organisations;

“auditor” shall have the same meaning as assigned to it

in the Accountancy Profession Act. This person shall not be

an administrator, a member or an employee of the enrolled

voluntary organisation the accounts of which he is auditing.

“Board of Appeal” shall have the meaning assigned to it

in the Act;

“Category 1 enrolled voluntary organisations” means

those enrolled voluntary organisations whose annual revenue

does not exceed or is equal to two hundred thousand euro (€

200,000) subject to the accounts threshold adjustments laid

down in Schedule 5 to these regulations;

“Category 2 enrolled voluntary organisations” means

those enrolled voluntary organisations whose annual revenue

exceeds two hundred thousand euro (€ 200,000) subject to

the accounts threshold adjustments laid down in Schedule 5

to these regulations;

“the Commissioner” shall have the same meaning as

assigned to it in the Act;

“enrolled voluntary organisation” means a voluntary

organisation that is enrolled in terms of the Act;

“expenses” means the ordinary expenses for the

administration of the voluntary organisation and any expenses

incurred in fundraising activities but shall not include

payments and expenditure made to donees or applied for the

benefit of the goals and purposes of the voluntary organisation

pursuant to its objects;

“financial period” means a period of one year or as

specified in Schedule 4 to these regulations;

“part-time employee” shall have the same meaning as

assigned to it in the Employment and Industrial Relations

Act;

“revenue” means any income, donations, grants and any

other funds raised through activities or fundraising that are

received by the voluntary organisation in the relevant financial

period, net of expenses;

“the Second Schedule” means the Second Schedule to

the Civil Code;

“voluntary organisation” shall have the same meaning as

assigned to it in the Act;

“volunteer” shall have the same meaning as assigned to

it in the Act;

“VO number” means the number allocated to a voluntary

organisation by the Commissioner upon enrolment;

“whole-time employee” shall have the same meaning

as assigned to it in the Employment and Industrial Relations

Act.

(2) Terms used in these regulations and which are not

defined shall have the same meaning as that assigned to them in the

Act or in the Second Schedule.

(Regulation 5)

Content and form of annual accounts

Purpose

The principal aim of the requirement to prepare annual accounts is to enhance

1. transparency in the activities undertaken by enrolled voluntary organisations. In this way,

enrolled voluntary organisations demonstrate their responsibility towards legislative and

policy support, public generosity and help guard against misuse.

Accounts can be very technical documents which are not easily understood by the general

public. It is for this reason that accounts should be prepared in a user friendly format which

can easily be understood by the average person.

The accounts should highlight the methods adopted to ensure that all income and expenditure

is properly recorded and that there is transparency with regards to any benefits, expenditure,

and remuneration or reasonable honorarium, received directly or indirectly by persons

involved in an enrolled voluntary organisation and persons supporting the purposes of an

enrolled voluntary organisation.

Since the public is primarily concerned with the manner in which donated funds are utilised

by enrolled voluntary organisations, it is critical that the accounts indicate fully the sums

received, the sums disbursed and how they have been spent.

The accounts of an enrolled voluntary organisation must be sensitive to the fact that the

enrolled voluntary organisation is non-profit making and may carry out a social purpose and

is dependent on donations and voluntary grants. If an enrolled voluntary organisation engages

in public or other collections it is subject to much greater levels of disclosure and is far more

accountable because it has been afforded public trust.

Content and form of annual accounts

The level of annual accounts which each enrolled voluntary

2. organisation shall have to file with the Commissioner will depend on the amount of its annual

revenue. It will depend on whether the enrolled voluntary organisation is a Category 1

enrolled voluntary organisation or a Category 2 enrolled voluntary organisation.

(a)

Category 1 enrolled voluntary organisations

Basis of accounting - cash basis

The duly filled annual accounts that Category 1 enrolled voluntary organisations shall file

with the Commissioner shall be cash basis accounts and shall contain the content and be in

the form indicated hereunder.

Details of the income and expenditure should be given for every fund raising activity with the

proceeds transferred to the income and expenditure account.

Name of voluntary

organisation:____________________________

VO number:________________

Year ended:__________________

Income

Donations received

Interest on fixed deposit accounts

Interest on savings accounts

Interest/dividends on investments

Membership fees

Proceeds from sale of fixed assets

Rents receivable

Sponsorships received

Fund Raising Activity 1 – net

Fund Raising Activity 2 – net

Fund Raising Activity 3 – net

Fund Raising Activity 4 – net

Fund Raising Activity 5 – net

Fund Raising Activity 6 – net

Other income

Total income

Expenditure

Advertising

Annual registration fees

Cleaning and consumables

Conferences and training

Insurance - motor vehicle

Insurance – other

Internet

Licences

Mobile expenses

Postages

Professional fees (accountants, lawyers etc)

Rent

Repairs and maintenance – equipment

Repairs and maintenance - motor vehicle

Repairs and maintenance - office/buildings

Salaries

Stationery and printing

Subscriptions

Telephone

Travelling – Foreign

Travelling – Local

Wages

Water and Electricity

Website expenses

Expense 1

Expense 2

Other expenses

-

Total expenditure

Excess of Income over Expenditure

-

Excess of Expenditure over Income

-

Funds movement

At

beginning

Movements

At end of

of year

for year

year

€

€

€

Cash in

hand/petty cash

Current accounts

Savings

accounts

Fixed Deposit

accounts

Malta

Government

Stocks

Shares – Local

Other local

investments

Foreign

investments

The accounts have been approved by the members at the Annual/Bi Annual

General Meeting held on

The accounts have been approved by the members at the Annual/Bi Annual

General Meeting held on

Administrator

Administrator

Signature

Signature

Name of

Name of Administrator

Administrator

Date: ________________________

(b)

Category 2 enrolled voluntary organisations

Basis of accounting - General Accounting Principles for Smaller Entities

The duly filled annual accounts that Category 2 enrolled voluntary organisations shall file

with the Commissioner shall be based on the General Accounting Principles for Smaller

Entities as found in Schedule Regulation 4 of the Accounting Profession (General

Accounting Principles for Smaller Entities) Regulations.

(1) These regulations shall apply to all enrolled

voluntary organisations.

(2) Where an organisation which is not enrolled is first

granted a certificate of enrolment upon enrolment, these regulations

shall apply with effect from the commencement of the financial

period starting immediately after the date of enrolment. For the

purposes of first enrolment, the Commissioner shall receive annual

reports and annual accounts of the organisation in the form in

which they have been prepared. The Commissioner shall receive

such annual accounts even if not in compliance with regulation 5

of these regulations.

(3) On enrolment, the administrators shall confirm

with the Commissioner by means of a declaration in writing signed

by one of the administrators that they are aware of the obligations

of the voluntary organisation under these regulations with effect

from the date of enrolment.

(4) (a) In the case of voluntary organisations 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.

(b) The annual report and annual accounts prepared

by an enrolled voluntary organisation in accordance with

these regulations shall be deemed to be compliant with any

requirements relating to annual reports and annual accounts

laid down in the Second Schedule and any regulations

issued thereunder, in such manner that an enrolled voluntary

organisation shall not be required to prepare any additional

annual reports and annual accounts for the purposes of the

Second Schedule and any regulations issued thereunder. In

such cases a copy of the annual report and annual accounts

certified by the Commissioner’s officers shall be transmitted

by the enrolled voluntary organisation to the Registrar for

Legal Persons who shall file such copy in the Register for

Legal Persons.

(c) The enrolled voluntary organisation which is

registered as a legal person with the Registrar for Legal

Persons shall transmit a copy of the annual report and annual

accounts to the Registrar for Legal Persons as aforesaid

within fifteen days from the day on which they are filed with

the Commissioner.

(5) A voluntary organisation which is registered as a

legal person with the Registrar for Legal Persons but which is not

enrolled shall not qualify for the exemption in sub-regulation (4) of

this regulation from the provisions of the Second Schedule and any

regulations issued thereunder and shall be bound to comply fully

with the Second Schedule and any regulations issued thereunder.

(Regulation 6)

Review procedures

The Commissioner reserves the right to appoint any qualified person to

1. scrutinise or draw up a report on the accounts of any enrolled voluntary organisation when he

deems fit. This shall be without any pre notice.

The Commissioner shall on a sample and roster basis engage qualified

2. persons to conduct a random check on the cash basis accounts of Category 1 and to report

The responsibility and cost of the reviews in paragraphs 1 and 2 of this

3. Schedule shall be borne by the Commissioner.

(1) Enrolled voluntary organisations shall prepare

an annual return with the content and in the form laid down in

Schedule 1 to these regulations.

(2) The annual return shall include the following

documents as attachments to it

(a) an organisational chart;

(b) 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, if any;

(c) a revised and updated certified copy of the statute

to be authenticated by a Notary in the case of a public deed

and by one administrator in other cases and shall consolidate

therein all other changes made in the voluntary organisation

until such date, if any;

(d) a copy of the annual report that shall be

authenticated by one administrator;

(e)

a copy of the annual accounts that shall be

authenticated by two administrators.

(Regulation 7)

Period of coverage of annual return, date of filing of annual return and financial period

of annual accounts

Period of coverage of annual return

The annual return for enrolled voluntary organisations shall cover a

1. year from the date of enrolment of the voluntary organisation of each year. The annual return

and all the required documents as attachments shall be filed by not later than thirty days from

the date of enrolment of the voluntary organisation of each year.

Financial period of annual accounts

The annual accounts of all enrolled voluntary organisations shall cover

2. a year from the date of enrolment of the voluntary organisation of each year. The annual

accounts and all the required documents shall be filed by not later than three months from the

date of enrolment of the voluntary organisation of each year. Those enrolled voluntary

organisations which require any changes within the accounting period shall request

permission from the Commissioner to affect such changes and shall provide an explanation as

to why any change is necessary. The Commissioner, in such instances, shall write to the

enrolled voluntary organisation concerned to indicate whether or not he approves such

changes and to inform the enrolled voluntary organisation of the due date of filing of the

annual return with all the required documents as attachments.

Enrolled voluntary organisations shall draw up annual

accounts in accordance with the requirements laid down in

Schedule 2 to these regulations and shall submit the same as an

attachment to the annual return.

(Regulation 8)

Accounts threshold adjustments

A Category 1 enrolled voluntary organisation shall automatically

1. convert into a Category 2 enrolled voluntary organisation when the revenue of the voluntary

organisation exceeds two hundred thousand euro (€ 200,000) for three consecutive calendar

years. When this happens the enrolled voluntary organisation shall inform the Commissioner

in writing within fourteen days from the day on which this comes to the voluntary

organisation’s knowledge.

A Category 2 enrolled voluntary organisation shall automatically

2. convert into a Category 1 enrolled voluntary organisation when the revenue of such voluntary

organisation does not exceed two hundred thousand euro (€ 200,000) for three consecutive

calendar years. When this happens the voluntary organisation shall inform the Commissioner

in writing within fourteen days from the day on which this comes to the voluntary

organisation’s knowledge.

It shall be the duty of the administrators of the enrolled

voluntary organisation to report to the Commissioner of Voluntary

Organisations any changes among administrators or in the

representation of enrolled voluntary organisation, within fourteen

days of the date of the affected change.

(Regulation 9)

Notification of changes among administrators or in the representation of an enrolled

voluntary organisation

Date: ________________

VO number

Name of voluntary organisation

Delivered by

To the Commissioner of Voluntary Organisations

(name of enrolled voluntary organisation)

hereby gives notice in accordance with Article 6 of the Voluntary Organisations (Annual

Returns and Annual Accounts) Regulations, 2012 that:-

Effective Date of Change

(signature)

Name of Administrator

(1) An enrolled voluntary organisation may alter or

add to its Statute.

(2) It shall be the duty of the administrators of the

enrolled voluntary organisation to deliver to the Commissioner

of Voluntary Organisations for registration a printed copy of any

decision of the executive committee of the organisation, within

fourteen days after the date of the decision, together with a revised

and updated copy of the statute, as amended by the said decision

and incorporating all the changes effected to date relating to the

administrator or representation of the organisation.

(3) Any alteration or addition to the statute of the

enrolled voluntary organisation shall not take effect, unless and

until it is registered as provided in subregulation (2) hereof.

(4) The administrators of the enrolled voluntary

organisation shall be responsibe for ensuring that any proposed

amendments to the statute of the voluntary organisation, are

correct, complete and in full compliance with these regulations and

any other applicable lawfrom time to time.

(Regulation 10)

Notification of alterations and additions in the statute of an enrolled voluntary

organisation

Date: ________________

VO number

Name of voluntary organisation

Delivered by

To the Commissioner of Voluntary Organisations

(name of enrolled voluntary organisation)

hereby gives notice in accordance with Article 7 of the Voluntary Organisations (Annual

Returns and Annual Accounts) Regulations, 2012 that:-

Effective Date of Change

(signature)

Name of Administrator

€1.89

Enrolled voluntary organisations shall be subject to

such review procedures as are specified in Schedule 3 to these

regulations.

Enrolled voluntary organisations shall prepare annual

returns for the period of coverage, file such annual returns on

particular dates and shall prepare annual accounts for financial

periods specified in Schedule 4 to these regulations.

The accounting thresholds for enrolled voluntary Accounts threshold

organisations may be adjusted as specified in Schedule 5 to these adjustments.

regulations.

The Commissioner shall be empowered to take all

the necessary measures against defaulting enrolled voluntary

organisations which include the following

(a) if after the lapse of sixty days from the due date

of filing mentioned in paragraph 2 of Schedule 4 to these

regulations, 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.

(b) should the administrators in paragraph (a) hereof

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 Board of Appeal with any or all of the following

requests

(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.