VOLUNTARY ORGANISATIONS (ANNUAL RETURNS AND ANNUAL ACCOUNTS) REGULATIONS

(ANNUAL RETURNS AND ANNUAL ACCOUNTS)

SUBSIDIARY LEGISLATION 492.02

VOLUNTARY ORGANISATIONS

(ANNUAL RETURNS AND ANNUAL ACCOUNTS)

REGULATIONS

31st July, 2020

LEGAL NOTICE 317 of 2020.

(1)

The title of these regulations is the Voluntary

Organisations (Annual Returns and Annual Accounts) Regulations.

(2)

The scope of these regulations is to ensure transparency

and accountability in the preparation and submission of annual returns

and annual accounts by voluntary organisations, carrying out activities

intended to achieve the principal purpose and objectives of such

organisations.

(Regulation 5)

Category status of voluntary organisations

1. A Category 1 voluntary organisation shall automatically

convert into a Category 2 voluntary organisation, when the generated

revenue and income of the voluntary organisation exceeds fifty

thousand euro (€50,000) in respect of each financial year but does not

exceed or is equal to two hundred and fifty thousand euro (€250,000).

When this occurs, the voluntary organisation shall inform the

Commissioner in writing within fourteen (14) days from the date on

which this fact comes to the voluntary organisation’s knowledge.

2. A Category 1 voluntary organisation shall automatically

convert into a Category 3 voluntary organisation, when the generated

revenue and income of the voluntary organisation exceeds two hundred

and fifty thousand euro (€250,000) in respect of each financial year.

When this occurs, the voluntary organisation shall inform the

Commissioner in writing within fourteen (14) days from the date on

which this fact comes to the voluntary organisation’s knowledge.

3. A Category 2 voluntary organisation shall automatically

convert into

(a)

a Category 1 voluntary organisation when the

generated revenue and income of such voluntary organisation

does not exceed fifty thousand euro (€50,000) in respect of each

financial year. When this occurs the voluntary organisation shall

inform the Commissioner in writing within fourteen (14) days

from the date on which this fact comes to the voluntary

organisation’s knowledge;

(b)

a Category 3 voluntary organisation, when the

generated revenue and income of such voluntary organisation

exceeds two hundred and fifty thousand euro (€250,000) in

respect of each financial year. When this occurs, the voluntary

organisation shall inform the Commissioner in writing within

fourteen (14) days from the date on which this fact comes to the

voluntary organisation’s knowledge.

4. A Category 3 voluntary organisation shall automatically

(ANNUAL RETURNS AND ANNUAL ACCOUNTS)

convert into a Category 2 voluntary organisation, when the generated

revenue and income of the voluntary organisation exceeds fifty

thousand euro (€50,000) in respect of each financial year but does not

exceed or is equal to two hundred and fifty thousand euro (€250,000).

When this occurs, the voluntary organisation shall inform the

Commissioner in writing within fourteen (14) days from the date on

which this fact comes to the voluntary organisation’s knowledge.

5. A Category 3 voluntary organisation shall automatically

convert into a Category 1 voluntary organisation, when the generated

revenue and income of the voluntary organisation does not exceed fifty

thousand euro (€50,000) in respect of each financial year. When this

occurs, the voluntary organisation shall inform the Commissioner in

writing within fourteen (14) days from the date on which this fact

comes to the voluntary organisation’s knowledge.

In these regulations, unless the context otherwise

requires

"accountant" shall have the same meaning assigned to it by

article 2 of the Accountancy Profession Act and for the purpose of

these regulations shall not be an administrator, a member or an

employee of the enrolled voluntary organisation for which the

accountant is drawing up and signing the accounts;

"the Act" means the Voluntary Organisations Act;

"administrator" shall have the same meaning assigned to it by

the Act;

"affiliated organisation" means any voluntary organisation

established by the administrators, founders or promoters of a parent

voluntary organisation, to achieve the same or ancillary purposes from

common funds or opportunities;

"annual accounts" means all accounting records of income and

expenditure kept by a voluntary organisation for the respective

financial year;

"auditor" shall have the same meaning assigned to it by article 2

of the Accountancy Profession Act, and for the purpose of these

regulations shall not be an administrator, a member or an employee of

the enrolled voluntary organisation for which the auditor is auditing

the accounts;

"Category 1 voluntary organisation" means a voluntary

organisation whose generated revenue and income does not exceed or

is equal to fifty thousand euro (€50,000), subject to the provisions

(ANNUAL RETURNS AND ANNUAL ACCOUNTS)

stipulated in Schedule III;

"Category 2 voluntary organisation" means a voluntary

organisation whose generated revenue and income exceeds fifty

thousand euro (€50,000) but does not exceed or is equal to two hundred

and fifty thousand euro (€250,000), subject to the provisions stipulated

in Schedule III;

"Category 3 voluntary organisation" means a voluntary

organisation whose generated revenue and income exceeds two

hundred and fifty thousand euro (€250,000), subject to the provisions

stipulated in Schedule III;

"the Commissioner" shall have the same meaning assigned to it

by the Act;

"criminal activity" means an activity carried out by a voluntary

organisation or a member thereof, which is contrary to law or which

breaches any of the provisions of the Criminal Code, the Code of Police

Laws and, or the Prevention of Money Laundering Act;

"employee" means a person not being an administrator, who has

entered, or is employed by virtue of a contract of service with the

voluntary organisation, or any person who has undertaken personally to

execute any work or services for, and under the immediate direction

and control of a voluntary organisation against remuneration, but

excluding any work or services performed in a professional capacity or

as a contractor for another person, when such work or service is not

regulated by a specific contract of service. Such work or services to

voluntary organisations may include, but are not limited to fundraising

activities or public events;

"financial period" means a period of twelve (12) months or such

period as specified in Schedule VII, covering the respective financial

year and which shall be deemed to commence from the date of

enrolment;

"GAPSME" means General Accounting Principles for Small and

Medium-Sized Entities as established under the Accountancy

Profession (General Accounting Principles for Small and Medium-

Sized Entities) Regulations;

"generated revenue" means the gross income generated from the

use of capital or assets, donations, grants and any other funds raised

through public events or fundraising activities which are received by

voluntary organisations during the respective financial year, before any

costs or expenses are deducted;

"IFRS" means International Financial Reporting Standards;

"income" means

(ANNUAL RETURNS AND ANNUAL ACCOUNTS)

(i)

any subsidies, grants or donations made to the

relevant organisation, but does not include internal transfers

within and between affiliated organisations and, or parent and

subsidiary organisations;

(ii)

any cash deposits made to the organisations or any

other transfer of funds under terms which indicate that it is not

an ordinary commercial arrangement but is intended to operate

as a grant or donation to the organisation and includes

membership fees;

(iii) any donation in kind relating to any property,

assets of any kind, whether corporeal or incorporeal, movable

or immovable, tangible or intangible, and any legal document

or instrument, signed and attested, which assigns or conveys

title to the property or confirms any interest therein;

"market levels and market conditions" shall have the same

meaning assigned to it by article 2 of the Act;

"ordinary expenses" means expenses incurred for the

administration of the voluntary organisation and any expenses incurred

in fundraising activities or public events, or for the purpose of

attaining the principal purpose and objectives of the voluntary

organisation, but shall not include any form of remuneration paid to

donees;

"parent organisation" means an organisation which qualifies as a

voluntary organisation established under article 3 of the Act and which

may constitute or establish subsidiary voluntary organisations or

segregated cells, as the case may be, and which is required to prepare

the annual accounts for the respective financial year;

"respective financial year" means the financial year in respect of

which annual accounts are prepared by voluntary organisations;

"Second Schedule" means the Second Schedule of the Civil

Code;

"segregated cells" means cells established by enrolled voluntary

organisations in the manner provided by articles 20 and 20B of the

Second Schedule of the Civil Code, for the purpose of protecting and

separating the assets and liabilities, income, capital or property

pertaining to the organisation itself from those pertaining to other cells

or subsidiaries forming part of such voluntary organisation;

"statute" shall have the same meaning assigned to it by article 2

of the Act;

"subsidiary organisation" means an enrolled voluntary

organisation which forms part of a parent voluntary organisation,

(ANNUAL RETURNS AND ANNUAL ACCOUNTS)

provided that its purposes shall be consistent with the principal purpose

and objectives of the parent organisation;

"third party" means any person who has an interest, or is

involved in any manner in the matters of a voluntary organisation, but

shall not, for the purpose of these regulations, include a public officer, a

member of the Police Force, or any other member from the entities or

authorities concerned for the purpose of obtaining and disclosing any

necessary information mentioned in paragraph 5 of Schedule VI, or any

other member from the entities or authorities listed in paragraph 6 of

Schedule VI;

"voluntary organisation" means an organisation established in

accordance with article 3 of the Act;

"voluntary organisation number" means the number allocated to

a voluntary organisation by the Commissioner upon its enrolment.

"volunteer" shall have the same meaning assigned to it by article

2 of the Act.

(Regulations 4 and 7)

Content and form of annual returns

(applies to all categories of voluntary organisations)

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

documents as attachments duly filled and compiled, which each

voluntary organisation shall file with the Commissioner shall be as

follows

Content and Form

Annual return of

Name of voluntary organisation

In respect of financial year ending

VO number

Registered address

Postcode

Telephone number/s

Fax number

E-mail address/es

Website

Name of contact person

Designation

Mobile/telephone number

(ANNUAL RETURNS AND ANNUAL ACCOUNTS)

FOREIGN OR INTERNATIONAL

ORGANIZATION/S

If the voluntary organisation is a foreign or international

organisation, indicate the details of the local representative and the

registered address of the local representative in Malta.

Name and Surname

ID card number or registration number

Registered address

Telephone number/s

Mobile number

E-mail address/es

ORGANISATIONAL

CHART

(Attach as Appendix A: the organisational chart)

The organisational chart shall illustrate the organisational

structure of the voluntary organisation. It shall contain a diagram of the

different bodies making up the voluntary organisation, an internal

breakdown of the functions and roles of each designated body, and it

shall indicate the ultimate beneficial owner of the voluntary

organisation.

The chart shall describe the management and administrative

structure of the voluntary organisation and shall indicate the

responsibility of each administrative board and any working group/s,

the relationships of the administrative board/s and any working group/s

with each other, and the hierarchy of management and administration.

The organisational chart shall also indicate who is responsible

for the day-to-day operations of the voluntary organisation. If the

organisation has any employees and, or volunteers, these details shall

also be included in the organisational chart.

LIST OF CURRENT

ADMINISTRATORS

(Attach as Appendix B: the current list of the administrators of the

voluntary organisation)

For former administrators

Name, surname, nationality, ID card number, residential address,

designation and signature.

(ANNUAL RETURNS AND ANNUAL ACCOUNTS)

For new administrators

Name, surname, nationality, ID card number, residential address,

designation and signature. A copy of the passport or ID card

authenticated by a lawyer or notary having a warrant to exercise his

profession in Malta.

DOCUMENTS

AMENDING THE

STATUTE

(Attach as Appendix C: the documents amending the statute)

Has the statute of the voluntary organisation been amended in

the period covered by this annual return?

Yes

No

If the answer to the above question is 'Yes', there shall be

attached any documents amending the statute and, or a revised and

updated certified copy of the statute and all other changes made in the

organisation until such date, amalgamated therein. Such documents

shall also include minutes of the Annual General Meeting (AGM) or

the Extraordinary General Meeting (EGM) approving the amended

statute.

MEMBERSHIP

(applies only to associations)

Number of registered members within the organisation as on the

date of the annual return

'Members' means those members who have a right to vote at the

General Meeting of the voluntary organisation. A complete list of

names and surnames of members, with addresses and identity card

numbers shall be retained by the voluntary organisation and may be

requested by the Commissioner for Voluntary Organisations or his

representative at any time.

ANNUAL

REPORT

(Attach as Appendix D: a copy of the annual report signed by at

least two administrators of the voluntary organisation (also

referred to Administrative Report or Activity Report).

ANNUAL

ACCOUNTS

(Attach as Appendix E: a copy of the annual accounts signed by at

(ANNUAL RETURNS AND ANNUAL ACCOUNTS)

least two administrators of the voluntary organisation).

STATEMENT OF ACCOUNTS

WITH REGARD TO PUBLIC

COLLECTIONS

Purpose

1. A statement of accounts regarding public collections shall

be prepared by a voluntary organisation to enhance transparency in the

activities undertaken and in the events organised by a voluntary

organisation to make public collections.

Content and form of statement of accounts

2. The duly filled and compiled statement of accounts that a

voluntary organisation shall file with the Commissioner shall consist of

and be in the form indicated hereunder.

Statement of accounts

1. Details regarding organised events or performed

activities

Name of voluntary organisation

VO number

Date of statement

(a)

Type of event and, or activity

(b)

Period during which or date when

the event took place and, or the activity was

(c)

Place where the event took place

and, or the activity was performed

2. Collection of Proceeds

Amount in €

(a)

As per list of collectors and

respective amounts attached hereto

(b)

From other sources (indicate the

(c)

Donations, as per list attached

3. Expenses

Amount in €

(a)

Printing and stationery

(ANNUAL RETURNS AND ANNUAL ACCOUNTS)

(b)

Postage

(c)

Advertising

(d)

Remuneration

(e)

Any other form of payment

(f)

Other expenses

4. Balance Disposal (Indicate details

Amount in €

including name of all beneficiaries and

amounts)

A minimum of two signatures of administrators is required

Full name and surname of administrator

Signature of administrator

Full name and surname of administrator

Signature of administrator

Full name and surname of administrator

Signature of administrator

Declaration of Completeness and Correctness

By means of this declaration, I hereby confirm that the details

provided, including the attached appendices, are complete and

truthful as to their contents.

Full name and surname of administrator

Signature of administrator

Date

Enclosures*

Appendix A - Organisational chart

Appendix B - List of the current administrators

(former and new)

(ANNUAL RETURNS AND ANNUAL ACCOUNTS)

Appendix C - Documents amending the statute

(if applicable)

Appendix D - Annual report

Appendix E - Annual accounts

Appendix F - Statement of accounts for public

collections (if applicable)

* Tick documents where applicable

(1)

These regulations shall be binding on all enrolled

voluntary organisations.

(2)

Without prejudice to the provisions established in these

regulations, the provisions laid down in the Prevention of Money

Laundering Act shall apply mutatis mutandis to all enrolled voluntary

organisations.

(3)

These regulations shall apply with immediate effect from

the commencement of the financial period with effect from the date of

the enrolment of a voluntary organisation. For the purpose of first

enrolment, the organisation shall submit its annual return and annual

accounts to the Commissioner in the form in which they have been

prepared. The Commissioner shall receive such annual returns and

annual accounts, even if the said are not in compliance with regulation

(Regulations 4 and 8)

Content and form of annual accounts

The threshold of annual accounts which each voluntary

organisation shall file with the Commissioner depends on the amount

of its generated revenue and income and on whether such organisation

is a Category 1, a Category 2 or a Category 3 voluntary organisation.

(a)

Category 1 voluntary organisations

Basis of accounting - on a cash basis

The duly filled and compiled annual accounts that Category 1

voluntary organisations shall file with the Commissioner shall be

prepared on a cash basis accounts and shall consist of the content and

form indicated hereunder

Provided that, if at the end of its financial year, a Category 1

voluntary organisation has creditors or debtors, these shall be indicated

to the Commissioner in the annual report.

Details of the income and expenditure shall be indicated for

every fund raising event and, or activity and the proceeds shall be

transferred to the income and expenditure account.

Name of voluntary organisation

VO number

Financial year ending

Amount in €

Income

Donations received in cash

Donations received in kind

Interest on fixed deposit accounts

Interest on savings accounts

(ANNUAL RETURNS AND ANNUAL ACCOUNTS)

Interest/dividends on investments

Government local funds

EU funds

Private funds

Membership fees

Proceeds from sale of fixed assets

Rents received

Sponsorships received

Fund raising event/activity 1 - net

Fund raising event/activity 2 - net

Fund Raising Event/Activity 3 - net

Fund Raising Event/Activity 4 - net

Fund Raising Event/Activity 5 - net

Fund Raising Event/Activity 6 - net

Other income

Total income

Expenditure

Amount in €

Advertising

Annual registration fees

Cleaning and consumables

Conferences and training

Insurance - motor vehicle/s

Insurance - other

Internet

Licences

Mobile expenses

Postage expenses

Professional fees (accountants, lawyers etc)

Rent

Repairs and maintenance -equipment

Repairs and maintenance - motor vehicle

Repairs and maintenance - office/buildings

Remuneration

Any other form of payment on fund raising

(7%)

Stationery and printing

Subscriptions

Telephone

Travelling (foreign)

Travelling (local)

(ANNUAL RETURNS AND ANNUAL ACCOUNTS)

Wages

Water and electricity

Website expenses

Expense 1

Expense 2

Other expenses

Total expenditure

Excess of income over Expenditure

Excess of expenditure over Income

Cash/Bank deposits/

Beginning of

Movements of

End of

Investments

financial

financial year

financial

year in €

in €

year in €

Cash in hand/petty cash

Current accounts

Savings accounts

Fixed deposit accounts

Malta Government Stocks

Shares

Local investments

Foreign investments

Other assets and liabilities

Estimated value/amount in €

Freehold immovable property

Leasehold immovable property

Equipment,

furniture

and

fittings

(depreciation)

Motor vehicles (depreciation)

Works of art (appreciation)

Creditors

Debtors

Loans

Equity

Others

(ANNUAL RETURNS AND ANNUAL ACCOUNTS)

The accounts have been approved by the members at the Annual

General Meeting held on .........................................

Full name and surname of administrator

Signature of administrator

Full name and surname of administrator

Signature of administrator

Full name and surname of administrator

Signature of administrator

Date

(b)

Category 2 Voluntary Organisations

Basis of accounting - accrual basis

Category 2 Voluntary Organisations shall keep their

accounting records under the accrual basis and prepare financial

statements in conformity with the requirements of GAPSME.

The financial statements shall be duly verified and signed by an

external accountant.

(c)

Category 3 Voluntary Organisations

Basis of accounting – accrual basis

Category 3 voluntary organisations shall keep their

accounting records under the accrual basis and prepare financial

statements in conformity with the requirements of IFRS. The

financial statements shall be duly verified and signed by an

auditor.

Where compliance with the provisions of Schedule III is

not sufficient or inconsistent in order to provide an actual and

transparent analysis of a voluntary organisation’s financial

performance and in the case of Category 1 and Category 2

voluntary organisations, of their financial position, the

additional information necessary to provide an actual and

transparent analysis shall be provided in the accounts or in the

annual report of the voluntary organisation.

(ANNUAL RETURNS AND ANNUAL ACCOUNTS)

(1)

L-amministraturi tal-organizzazzjonijiet volon-

tarji għandhom iħejju prospetti u kontijiet annwali skont l-Iskedi II u

III.

(2)

Il-prospetti annwali mħejjija mill-amministraturi tal-

organizzazzjoni volontarja għandu jkollhom l-informazzjoni kollha

dwar l-attivitajiet li jkunu saru mill-organizzazzjoni matul is-sena

finanzjarja rispettiva li għaliha l-kontijiet annwali jkunu ġew mħejjija.

(3)

Il-kontijiet annwali ta’ organizzazzjoni volontarja

għandhom jistabbilixxu l-metodi adottati sabiex jiġi żgurat li d-dħul u

l-infiq kollu jkunu debitament reġistrati u li jkun hemm trasparenza

fir-rigward ta’ kull benefiċċju, infiq u remunerazzjoni li jkun ġie

riċevut mill-membri u l-impjegati tal-organizzazzjoni volontarja jew

kull persuna li tkun qiegħda tipprovdi servizzi sabiex tippromwovi l-

iskop u l-għanijiet prinċipali tal-organizzazzjoni.

(4)

Il-kontijiet annwali ta’ organizzazzjoni volontarja

għandhom ukoll jistabbilixxu li l-organizzazzjoni volontarja ma

tagħmilx profitt u li tiddependi fuq donazzjonijiet u għotjiet volontarji

Iżda jekk organizzazzjoni volontarja tagħmel ġbir

pubbliku, hi għandha tkun soġġetta għal aktar kontabilità skont ir-

regolament 11, meta tkun qiegħda tirreġistra kull dħul u nfiq,

b’kunsiderazzjoni għall-fiduċja pubblika li minnha tkun tgawdi l-

organizzazzjoni.

(5)

Għall-fini tas-subregolament (4), il-prospett annwali

għandu jinkludi dik l-informazzjoni kollha dwar l-organizzazzjoni

volontarja, kif jista’ jkun meħtieġ, kif ukoll dwar l-amministraturi u l-

attivitajiet tagħha inġenerali, u l-persuni li jkunu qegħdin iħejju l-

prospetti annwali għandhom jagħtu rendikont veritier tal-fatti.

(Regulation 6)

Notification of changes among administrators of a voluntary

organisation or any change of the representative resident in Malta of

the voluntary organisation where such organisation is a foreign or

international organisation

VO number

Name of the voluntary organisation

Delivered by

To the Commissioner for Voluntary Organisations

........................................................ (Name of Voluntary Organisation)

is hereby giving notice in accordance with regulation 6 of the Voluntary

Organisations (Annual Returns and Annual Accounts) Regulations,

2020 that

Effective date of change: ................................................

Full name and surname of administrator

Signature of administrator

Full name and surname of administrator

Signature of administrator

Full name and surname of administrator

Signature of administrator

L-istatus tal-kategorija ta’ organizzazzjoni volontarja

għandu jiġi aġġustat kif stabbilit fl-Iskeda I.

ANNWALI U KONTIJIET ANNWALI)

(Regulation 14)

Notification of amendments and additions made to the statute of a

voluntary organisation

VO number

Name of the Voluntary Organisation

(ANNUAL RETURNS AND ANNUAL ACCOUNTS)

Delivered by

To the Commissioner for Voluntary Organisations

............................................................. (Name of the Voluntary

Organisation) hereby gives notice in accordance with regulation 14 of

the Voluntary Organisations (Annual Returns and Annual Accounts)

Regulations,

that:........................................................................................................

Effective date of change: ..............................................

Full names and surnames and signatures of all administrators

Full name and surname of administrator

Signature of administrator

Full name and surname of administrator

Signature of administrator

Full name and surname of administrator

Signature of administrator

L-amministraturi

tal-organizzazzjoni

volontarja

għandhom jinfurmaw lill-Kummissarju b’kull bidla fost l-

amministraturi tal-organizzazzjoni volontarja jew, jekk dik l-

organizzazzjoni tkun organizzazzjoni barranija jew internazzjonali,

b’kull bidla fir-rappreżentant residenti Malta tal-organizzazzjoni

volontarja, fi żmien erbatax-il (14) ġurnata mid-data ta’ meta tkun

seħħet il-bidla, skont l-artikolu 12 (d) u (e) tal-Att, billi tintuża l-

formula stabbilita fl-Iskeda IV.

(Regulation 15)

Review procedures by the Commissioner

1. The Commissioner has the right to appoint any qualified

person to scrutinise or draw up a report on the accounts of any

voluntary organisation when he deems fit and necessary to do so. This

shall be done without any ulterior notice.

2. The Commissioner shall on a roster basis engage

qualified persons to conduct a random check on a sample basis of the

cash basis accounts of Category 1 voluntary organisations and report

accordingly.

3. The responsibility and costs of the reviews indicated in

paragraphs 1 and 2 shall be borne by the Commissioner.

4. Saving the provisions mentioned in the preceding

paragraphs, the Commissioner shall, in order to investigate matters or

the conduct of affairs of a voluntary organisation, in terms of the

(ANNUAL RETURNS AND ANNUAL ACCOUNTS)

powers vested in him by means of article 34 of the Act, have the right

to request any information, documents and, or clarifications from the

administrators of any voluntary organisation, as he may deem

necessary in the circumstances

Provided that, notwithstanding the provisions of sub-article (3)

of article 12D of the Act, voluntary organisations which are not subject

to mandatory enrolment pursuant to article 12D and which are obliged

to notify the Commissioner of their existence, shall at the end of the

respective financial year, submit a copy of their annual accounts to the

Commissioner.

5. The Commissioner shall also, in terms of article 34 of the

Act, be entitled to request any information from any public or private

entity or authority, or disclose any information to such entity or

authority, for the purpose of investigating matters of a voluntary

organisation, when he has a suspicion that such voluntary organisation

or a member thereof is carrying out any activity relating to money

laundering and financing of terrorism, or any other illicit or criminal

activity as defined in terms of these regulations

Provided that any information requested by the

Commissioner in this regard shall not be divulged to third parties in

terms of these regulations

Provided further that where the Commissioner requests

such information, he shall, upon a demand made by such entity or

authority, provide justifiable reasons thereto, as he may deem necessary

in the circumstances.

6. Saving the provisions of paragraph 5, the Commissioner

is entitled to obtain any information from other entities or authorities,

including but not limited to, the Registrar for Legal Persons, the Malta

Security Service, Jobsplus, the Commissioner of Police, the

Commissioner for Revenue, the Financial Intelligence Analysis Unit,

the Asset Recovery Bureau, the Malta Financial Services Authority, the

Commissioner for Revenue and the Courts of Justice and also to

disclose any information to such other entities or authorities

Provided that such information may include any other

information from the Registrar of Courts and, or the Office of the

Attorney General or the Office of the State Advocate respectively,

relating to any pending criminal or civil proceedings, with particular

reference to any information concerning the attachment, freezing,

confiscation and seizure of assets

Provided further that any privileged information obtained

by the Commissioner upon such request, shall be used exclusively for

the purposes of the powers vested in him in terms of this article and

shall not be made accessible to the public.

(ANNUAL RETURNS AND ANNUAL ACCOUNTS)

7. The Commissioner may also request any member or

administrator of the voluntary organisation, or those claiming or

alleging to be members or administrators of the voluntary organisation

concerned, to submit a conduct certificate issued under the Conduct

Certificates Ordinance (Cap. 77), and may refuse to issue an enrolment

certificate to such member or administrator of the voluntary

organisation, or withdraw any issued enrolment certificate, if such

member or administrator of the voluntary organisation fails to provide

such conduct certificate.

8. Subject to the provisions of sub-article (3) of article 3 of

the Conducts Certificate Ordinance (Cap. 77), the Commissioner may,

in the course of his investigations, request a complete record of

criminal convictions of any member or administrator of a voluntary

organisation. The Commissioner may refuse to issue an enrolment

certificate, or withdraw any issued enrolment certificate, if the person

to whom the record of criminal convictions relates refuses to give his

consent as required under sub-article (3) of article 3 of the Conducts

Certificate Ordinance (Cap. 77).

9. For the purpose of this Schedule and in the course of any

investigation made under article 7(1)(g) of the Act, the Commissioner

shall have the power to summon witnesses and to administer an oath to

any person concerned in the investigation and require them to give

evidence.

10. In the event that such person refuses to produce the

requested information, the Commissioner may impose an

administrative fine not exceeding five hundred euro (€500).

(1)

Il-prospetti annwali preżentati mill-organizzaz-

zjonijiet volontarji għandhom ikunu mħejjija skont il-kontenut u fil-

forma stabbilita fl-Iskeda II u għandhom jinkludu s-segwenti

dokumenti bħala annessi għall-istess

(a)

tabella organizzattiva;

(b)

il-lista tal-amministraturi skont l-aħħar ġurnata

tas-sena finanzjarja rispettiva;

(ċ)

il-lista tal-amministraturi kurrenti;

(d)

id-dokumenti li jemendaw l-Istatut;

(e)

kopja tar-rapport annwali li għandu jiġi awtentikat

minn tal-inqas minn żewġ amministraturi;

(f)

kopja tal-kontijiet annwali li għandhom jiġu

awtentikati minn tal-inqas minn żewġ amministraturi u

għandhom jiġu mħejjija skont ir-rekwiżiti stabbiliti fl-Iskeda II;

u

(g)

fil-każ ta’ ġbir pubbliku, rendikont tal-kontijiet li

jkollu x’jaqsam ma’ kull avveniment organizzat u, jew attività

mwettqa sabiex isir ġbir pubbliku li għandu jiġi mħejji skont ir-

rekwiżiti stabbiliti fl-Iskeda II.

(2)

Organizzazzjonijiet volontarji għandhom iżommu kopja

tal-kontijiet annwali, rapporti annwali u rekords oħra rilevanti għal

perijodu ta’ għaxar (10) snin wara l-perjodu finanzjarju li għalih ikunu

jirreferu.

(3)

L-informazzjoni dwar l-attivitajiet li jiġu mwettqa minn

dawk l-organizzazzjonijiet volontarji matul is-sena finanzjarja

rispettiva għandha tiddaħħal fir-rapport annwali imħejji mill-membri

ta’ dik l-organizzazzjoni u għandha

(a) tispeċifika s-sena finanzjarja rispettiva li għaliha r-

rapport ikun jirreferi;

(b)

tinkludi sommarju li jkun jiddeskrivi

(i)

l-attivitajiet prinċipali li jkunu saru mill-organizzazzjoni

ANNWALI U KONTIJIET ANNWALI)

biex tippromwovi l-iskop soċjali tagħha, inkluż dak li jikkwalifika

bħala benefiċċju pubbliku; u

(ii)

il-kisbiet prinċipali tal-organizzazzjoni matul is-sena

finanzjarja rispettiva;

(ċ)

tinkludi reviżjoni tal-pożizzjoni finanzjarja

tal-

organizzazzjoni fl-aħħar tas-sena finanzjarja rispettiva; u

(d)

tkun datata u ffirmata minn tal-inqas minn żewġ

amministraturi.

(4)

Għall-fini ta’ dan ir-regolament, l-informazzjoni li

jkollha x’taqsam ma’ attivitajiet finanzjarji li jiġu mwettqin

minn organizzazzjonijiet volontarji għandha tipprovdi analiżi

attwali u trasparenti tal-qligħ iġġenerat, dħul, infiq, assi u

passiv għas-sena finanzjarja rispettiva, fil-kategoriji rispettivi

tagħhom.

(5)

L-informazzjoni msemmija f’dan ir-regolament

tista’ tiġi preżentata wkoll fil-format elettroniku tagħha.

(Regulations 16 and 17)

1. Financial period of annual return and annual accounts

The annual return and annual accounts of a voluntary

organisation shall cover a financial year as stated in the statute of the

organisation

Provided that

(a)

if a voluntary organisation was enrolled between 1st

January and 30th June of any year, its first annual return and annual

accounts shall cover the period commencing on the date of its

enrolment up to the end of its first financial year;

(b)

if a voluntary organisation was enrolled between 1st July

and 31 st December of any year, its first annual return and annual

accounts shall cover the period commencing on the date of its

(ANNUAL RETURNS AND ANNUAL ACCOUNTS)

enrolment up to the end of its first financial year.

Those voluntary organisations which need to amend the financial

period shall request the permission from the Commissioner to effect

such amendment and shall provide a justified reason for said

amendment.

The Commissioner, in such instances, shall write to the

voluntary organisation concerned to indicate whether or not he

approves such change and to inform the voluntary organisation of the

due date of filing of the annual return with all the required documents

as attachments thereto.

2. Date of filing of annual return and annual accounts

The annual return and annual accounts including all the required

documents as attachments thereto shall be filed as specified hereunder

by not later than

(a)

ninety (90) days from the end of the respective

financial year in the case of Category 1 voluntary organisations;

(b)

one hundred and eighty (180) days from the end of

the respective financial year in the case of Category 2 voluntary

organisations; and

(c)

two hundred and forty (240) days from the end of

the respective financial year in the case of Category 3 voluntary

organisations

Provided that if Category 1 voluntary organisations opt to

have their annual accounts subject to GAPSME in accordance with

their respective statute, the annual return and accounts including all

the required documents as attachments thereto, shall be filed by not

later than one hundred and eighty (180) days from the end of the

respective financial year

Provided further that, if Category 1 and Category 2

voluntary organisations opt to have their annual accounts subject to

full audit (IFRS) in accordance with their respective statute, the

annual return and accounts including all the required documents as

attachments thereto, shall be filed by not later than two hundred and

forty (240) days from the end of the respective financial year.

(ANNUAL RETURNS AND ANNUAL ACCOUNTS)

(4)

Upon enrolment, the administrators of the concerned

voluntary organisation shall submit a written declaration signed by all

the administrators as prescribed in Schedule VIII.

4. (1)

The administrators of voluntary organisations shall

prepare annual returns and annual accounts in accordance with

Schedules II and III.

(2)

The annual returns prepared by the administrators of the

voluntary organisation shall contain all the information on the activities

carried out by the organisation during the respective financial year for

which accounts have been prepared.

(ANNUAL RETURNS AND ANNUAL ACCOUNTS)

(3)

The annual accounts of a voluntary organisation shall

establish the methods adopted to ensure that all income and

expenditure is properly recorded and that there is transparency with

regard to any benefits, expenditure and remuneration received by

members and employees of a voluntary organisation or any person

providing services in order to promote the principal purpose and

objectives of the organisation.

(4)

The annual accounts of a voluntary organisation shall

also establish that the voluntary organisation is non-profit making and

is dependent on donations and voluntary grants

Provided that if a voluntary organisation engages in

public collections, it shall be more accountable in accordance with

regulation 11, when recording all income and expenditure, taking into

consideration that the organisation has been vested with public trust.

(5)

For the purpose of sub-regulation (4), the annual return

shall include all such information about the voluntary organisation, as

may be required, as well as about its administrators and its activities in

general, and the persons preparing the annual returns shall give a true

account of the facts.

5. The category status of voluntary organisations shall be

adjusted in the manner established in Schedule I.

6. The administrators of the voluntary organisation shall

report to the Commissioner any changes among administrators of the

voluntary organisation or, where such organisation is a foreign or

international organisation, any change of the representative resident in

Malta of the voluntary organisation, within fourteen (14) days from the

date of the effected change, in terms of article 12 (1)(d) and (e) of the

Act, using the prescribed form in Schedule IV.

7. (1)

The annual returns submitted by the voluntary

organisations shall be prepared in accordance with the content and

form laid down in Schedule II and shall include the following

documents as attachments thereto

(a)

an organisational chart;

(b)

the list of the administrators as on the last day of

the respective financial year;

(c)

the list of the current administrators;

(d)

the documents amending the Statute;

(e)

a copy of the annual report which shall be

authenticated by at least two administrators;

(ANNUAL RETURNS AND ANNUAL ACCOUNTS)

(f)

a copy of the annual accounts which shall be

authenticated by at least two administrators and shall be drawn

up in accordance with the requirements prescribed under

Schedule II; and

(g)

in the case of public collections, a statement of

account relative to any event organised and, or an activity

performed to make public collections which shall be drawn up in

accordance with the requirements established in Schedule II.

(2)

Voluntary organisations shall keep a copy of the annual

accounts, annual reports and other relevant records for a period of ten

(10) years following the financial period to which they refer.

(3)

The information regarding the activities carried out by

such voluntary organisations during the respective financial year shall

be entered in the annual report prepared by the administrators of such

organisation and shall

(a) specify the respective financial year to which the

report refers;

(b)

contain a summary which describes

(i)

the principal activities undertaken by the

organisation to promote its social purpose, including that

which qualifies as public benefit; and

(ii)

the principal achievements of

the

organisation during the respective financial year;

(c)

contain a review of the organisation’s financial

position at the end of the respective financial year; and

(d)

be dated and signed by at least two administrators.

(4)

For the purpose of this regulation, the information

regarding the financial activities carried out by voluntary organisations

shall provide an actual and transparent analysis of the generated

revenue, income, expenditure, assets and liabilities for the respective

financial year, in their respective categories.

(5)

The information referred to in this regulation may

also be submitted in electronic format.

8. (1)

Administrators of a voluntary organisation shall

prepare their annual accounts in accordance with Schedule III.

(2)

Category 2 and Category 3 voluntary organisations shall

also keep records of assets and liabilities. The obligations under this

sub-regulation shall also apply to

(ANNUAL RETURNS AND ANNUAL ACCOUNTS)

(a)

in the case of a parent voluntary organisation, the

annual accounts prepared and submitted by the parent

organisation;

(b)

in the case of a subsidiary or affiliated voluntary

organisation, the annual accounts prepared by the subsidiary or

affiliated organisation, submitted individually or separately

from those prepared and submitted by the parent voluntary

organisation;

(c)

in the case of an individual voluntary

organisation, which is neither a parent voluntary organisation

nor a subsidiary or affiliated voluntary organisation, the annual

accounts prepared and submitted by the individual voluntary

organisation; and

(d)

in the case of segregated cells of a voluntary

organisation, the annual accounts which relate to such cells,

prepared and submitted by the voluntary organisation.

(Regulation 3(4))

Declaration Form

The administrators of an enrolled voluntary organisation hereby

declare that they are aware that the organisation is obliged to submit

the annual returns of the voluntary organisation to the Commissioner

for Voluntary Organisations on a yearly basis for the respective

financial year, pursuant to procedures relating to mandatory

enrollment in terms of the Act and the regulations made thereunder,

and that they shall be held responsible for submitting such documents.

The administrators of a non-enrolled voluntary organisation

pursuant to article 12C of the Act, hereby declare that they are aware

that the organisation is obliged to submit a declaration including the

total amount of income and expenditure of the voluntary organisation

to the Commissioner for Voluntary Organisations on a yearly basis for

the respective financial year and that they shall be held responsible for

submitting such declaration.

Details of all administrators

Full name and surname of administrator

Signature of administrator

Identity card number

Designation

Full name and surname of administrator

Signature of administrator

Identity card number

Designation

Full name and surname of administrator

Signature of administrator

Identity card number

Designation

Date:......................................

All voluntary organisations shall keep an updated list of

members in a register of members

Provided that the voluntary organisations shall not be

required to submit the list of members of an organisation with the

annual return, notwithstanding that the Commissioner may request in

writing that such a list, signed by two administrators, be submitted to

him and upon such demand, the administrators shall submit the said

list to the Commissioner within fifteen (15) days from notification of

the request.

(1)

The members and employees of a voluntary

organisation may be entitled to remuneration for services rendered to

such organisation in terms of the market levels and market conditions

as defined in the Act, and such services shall be published in the

annual report.

(2)

Administrators of a voluntary organisation shall

(a)

declare the amount of remuneration received by

its employees; and

(b)

provide a copy of the contract of employment to

the Commissioner, which shall be used by the Commissioner

for internal purposes only.

(3)

Saving the provisions of sub-regulation (2), in the case of

voluntary organisations receiving government funds, the employees of

such voluntary organisations shall be entitled to remuneration which

shall not exceed the salary of a public officer or a civil servant, when

compared to their respective designated role in such organisation.

(ANNUAL RETURNS AND ANNUAL ACCOUNTS)

(4)

The Commissioner shall in all cases mentioned under

sub-regulation (2), and in order to ensure that employees are not paid

exorbitant rates, be entitled to obtain from the voluntary organisation or

any other entity or authority concerned, the number of employees in

such organisation and their respective designated role, together with

any other information which the Commissioner may require in this

regard.

(5)

The remuneration of persons who are employed to carry

out management duties, executive functions or fundraising activities in

a voluntary organisation shall not be such as to materially prejudice the

voluntary organisation from achieving its principal purpose and

objectives.

(1)

Voluntary organisations shall draw up a statement

of account related to any event organised and, or any activity

performed to make public collections in accordance with the

requirements established under Schedule II and shall submit the same

as an attachment to the annual return.

(2)

Where donations which exceed five thousand euro

(€5,000) over a period of one financial year are offered to a voluntary

organisation or a member or an administrator of such voluntary

organisation, it shall be the duty of the voluntary organisation or its

members or administrators to identify the donor offering the donation,

to verify the exact amount of the donation being offered and to declare

the source of the said donation by means of a declaration made to the

Commissioner, with special reference to donations offered in cash or in

kind.

(3)

Voluntary organisations shall issue receipts for every

donation received exceeding five euro (€5) per day and shall keep such

receipts for at least five years.

(1)

Where the annual accounts for Category 3

voluntary organisations have been prepared for the respective financial

year, the certified public auditor carrying out the audit shall make a

report thereon to the administrators of the organisation.

(2)

The report prepared in accordance with sub-regulation (1)

shall

(a)

state the name and address of the auditor and the

name of the organisation concerned;

(b)

be signed by the auditor;

(c)

be dated and shall specify the financial year in

respect of which the accounts have been prepared;

(d)

specify that it is a report in respect of an audit

(ANNUAL RETURNS AND ANNUAL ACCOUNTS)

carried out in terms of this sub-regulation;

(e)

specify that the audit has been prepared in

accordance with IFRS; and

(f)

state whether in the auditor’s opinion the financial

statements comply with the requirements of these regulations,

and whether they give a true and fair view of the financial

performance and financial position of the voluntary

organisation.

(3)

Where the auditor has formed the opinion that

(a)

accounting records have not been kept in

accordance with these regulations;

(b)

the accounts did not accurately reflect the annual

return;

(c)

any information contained in the accounts was

inconsistent in any material aspect with any report of the

administrators prepared in terms of regulation 7(2) with regard

to the respective financial year; or

(d)

any information or explanation to which the

auditor is entitled under regulation 13 has not been provided to

the auditor,

he shall include a statement of that opinion, providing the reasons

for such opinion.

(4)

The auditor shall in preparing his report, carry out such

investigations, as may be necessary, in order to be able to form an

opinion on the financial statements of the voluntary organisation.

(5)

Such audit shall also apply to Category 1 and Category 2

voluntary organisations, where such organisations have stipulated in

their statute that their annual accounts shall be subject to full audit.

(1)

Any person carrying out an audit of the annual

accounts of an organisation shall have access to any books, documents

and other records which relate to the organisation concerned, to the

extent that such person considers such access necessary for the

purpose of inspection, as a result of the audit which is being carried

out.

(2)

The person carrying out an audit pursuant to the

preceding sub-regulation, is entitled to request information from past

or present members or administrators of the organisation, or from past

or present employees of the organisation, as he deems necessary for

the purposes of carrying out such audit.

(ANNUAL RETURNS AND ANNUAL ACCOUNTS)

(3)

Where an auditor is carrying out an audit of the annual

accounts of a parent organisation, the auditor is also entitled to

(a)

access to information mentioned in sub-regulations

(1) and (2), as modified in order that the subsidiary

organisations included in the parent organisation are treated as

an individual organisation;

(b)

access to any books, documents and other records

which relate to any of the subsidiary organisations, included in

annual accounts and which the auditor deems necessary for the

purpose of inspection, as a result of such audit;

(c)

access required in the case of any such subsidiary

or affiliated organisations, to such information from past or

present administrators or members of such organisations; and

(d)

require that the administrators of a parent

organisation take all such steps as are deemed reasonably

necessary, to obtain from any such subsidiary or affiliated

organisations, such information as the auditor may reasonably

require for the purposes of carrying out such audit.

(4)

Where an auditor is carrying out an audit of segregated

cells, the auditor is obliged to audit such cells in terms of regulation 12.

(1)

A voluntary organisation may amend or add to the

contents of its statute, including any change of its members in

accordance with the statute.

(2)

The administrators of any voluntary organisation shall

within fourteen (14) days after the date of the written resolution or

decision for registration, submit to the Commissioner the following

information

(a)

a copy of any written resolution or decision of the

body or juridical person of the voluntary organisation, whereby

the statute is amended, together with a copy of any document

amending the statute, authenticated by a notary in the case of a

public deed; or duly signed by all the administrators in other

cases;

(b)

a revised and updated certified copy of the statute

authenticated by a notary in the case of a public deed, or duly

signed by all the administrators in other cases, which shall

consolidate therein all other changes made in the voluntary

organisation until such date, including any changes effected

among the administrators of the voluntary organisation; or any

change of the representative resident in Malta of the voluntary

organisation, where such organisation is a foreign or

(ANNUAL RETURNS AND ANNUAL ACCOUNTS)

international organisation.

(3)

All changes made to the statute shall be clear,

unequivocal and easily identifiable. Voluntary organisations shall

submit two copies of the statute, one representing a previous version

of the statute containing the changes mentioned above and the other

representing a new version thereof. Voluntary organisations registered

with the Registrar for Legal Persons shall first notify the Public

Registry and provide the Commissioner with proof of such notification

referring to those changes.

(4)

Any amendment or addition to the statute of a voluntary

organisation referred to in sub-regulation (2), shall not come into

force, unless it is registered as provided in sub-regulation (2), using

the prescribed form stipulated in Schedule V.

(5)

The administrators of any voluntary organisation shall be

responsible for ensuring that any amendments or additions to the

statute of the voluntary organisation are correct, complete and in full

compliance with the Act, these regulations and any other law or

regulation that may apply from time to time.

(6)

All voluntary organisations shall, within fourteen (14)

days notify the Commissioner of any changes in the administrators, or

the representative resident in Malta in case of an international

organisation. Voluntary organisations which are also registered with

the Registrar for Legal Persons shall first notify the Public Registry

and provide the Commissioner with proof of such notification.

(7)

Where for any reason the change in administrators or

resident representative is not notified as aforesaid to the

Commissioner, the persons who appear as administrators in the records

of the Commissioner shall remain accountable to the Commissioner

until such time as the change is notified.

The annual accounts of a voluntary organisation shall be

subject to such review procedures as are specified in Schedule VI.

Voluntary organisations shall prepare annual returns and

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

and annual accounts on the specified dates and shall prepare annual

accounts for such financial periods as specified in Schedule VII.

(1)

Where a voluntary organisation fails to submit the

annual return with all the required documents as attachments after the

lapse of thirty (30) days from the due date of filing of the annual return

specified in Schedule VII, the Commissioner shall communicate a

warning in writing to the administrators regarding such failure and

shall provide the administrators with an opportunity to give justified

reasons for the delay and may, if the Commissioner is of the opinion

that the delay is justified, extend the period for filing the annual return.

(ANNUAL RETURNS AND ANNUAL ACCOUNTS)

(2)

Where the voluntary organisation fails to provide a valid

reason for the delay or fails to observe the extended period set by the

Commissioner for filing the annual return, the Commissioner may

cancel the enrolment of the voluntary organisation in accordance with

the Act.