Financial reporting requirements

Introduction

The Local Government & Housing Act 1989 includes specific reference to the accountability of voluntary organisations to their statutory funders.

Section 37 of the Act requires organisations receiving a grant or loan of £2,000 or more from a local authority to make a statement, in writing, of the use to which the grant/loan was put within 12 months of it being made.  Sub-section 37 (4) says that the statement can be made in the annual accounts of the organisation.

Your funding agreement states that London Councils requires all organisations receiving a grant in excess of £2,000 to include a Section 37 statement in their independently audited accounts. (Standard Grant Conditions 2.7 paragraph f)