Charities flouting the law ? Minors
The vast majority of Bermuda's registered charities are flouting the law by not being current with financial statement filing requirements, it was reported to the House of Assembly on Friday.
Opposition United Bermuda Party MP John Barritt fired off a series of questions to Health Minister Patrice Minors in an attempt to get a clear picture of charities' non-compliance.
Mrs. Minors reported that 276, or 74 percent, of Bermuda's registered charities were delinquent in their duty to file up-to-date financial statements.
The Charities Commission, which is the responsibility of the Health Ministry, undergoes a process which could end in cancelling a delinquent charity's registration if it does not satisfy the regulator that it should not be stricken off the list, the Minister explained.
"However, in the Commission's deliberation as to whether it should cancel a registration, it must take into consideration more factors than the absence of timely reporting," the Minister added.
"Arguably timely financial reporting, whilst important in measuring accountability, is not the only benchmark in measuring a successful charity. There are 373 active charities. If the Commission was to take a Draconian approach by striking charities that did not submit timely financial reporting there would be virtually no charities in operation."
She said she accepted that the situation was unsatisfactory and was then asked by the UBP's Trevor Moniz whether she was prepared to resign if the charities continued to be delinquent, but the Speaker disallowed the question.
Asked what Government's policy was with regard to charities which did not comply with the regulations, Mrs. Minors said that the Accountant General had tightened up the rules governing Government grants.
"These new financial instructions call for stricter levels of accountability for organisations receiving funding to supply quarterly or annual financial records, as the case may warrant and other additional outcome data," she said.
"The Ministry of Health and Family Services is moving towards a model that will require all grant recipients to provide the required financial information before their third quarter or annual transfer is made as a condition of their grant.
This methodology will work in tandem with the requirement of Section Eight of the Charities Act to ensure compliance by the Charities."