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

Section 37 of the 1989 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 3 (4) provides that the statement can be made in the annual accounts of the organisation.

This Funding Agreement requires all Funded Organisations receiving a Grant in excess of £2,000 to include a Section 37 Statement in their independently audited accounts. (Standard Conditions of Grant 12.13)

The purpose of the Section 37 Statement is to ensure that:

  • The Grant was spent on the purposes for which it was awarded
  • Other funders can easily see the purposes for which the Grant was made
  • the possibility of double-funding is reduced.

The Section 37 Statement must form part of the main body of the accounts, so that anybody who receives the accounts has access to the it.


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