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Title: | Financial reporting for Maltese voluntary organisations : an assessment |
Authors: | Abela, Matthew |
Keywords: | Financial statements -- Malta Nonprofit organisations -- Malta Charity laws and legislation -- Malta |
Issue Date: | 2017 |
Abstract: | PURPOSE: One of the objectives of this study is to analyse the legal aspects of the current Maltese VO regulatory framework, and the guidelines and best practices currently being adopted by Maltese charities in compiling their financial reports. Given the current low adherence levels, the second objective of this research is to analyse the key operational internal control and other challenges being faced by Maltese charities in complying with the existing VO regulatory framework. In the light of the two abovementioned objectives, this study is also intent on determining the need and nature of professional guidance within the Maltese charity regulatory framework, and how this may be introduced. DESIGN: Objectives were achieved through the implementation of a mixed methods research design. An online questionnaire was administered amongst all Maltese enrolled VOs, and semi-structured interviews were conducted with the financial administrators of eleven large Maltese charities. FINDINGS: Charities are aware of the fact that the local VO sector is still in its infancy. However, findings indicate a general yearning for regulation which is not too detailed, and which grants greater flexibility to enrolled VOs. Rather than being advantaged, enrolled charities feel that they are being disadvantaged when compared to other unenrolled charities. As enrolment is not mandatory, unenrolled VOs have no financial reporting requirements with which they are obliged to abide. The lack of legislative powers granted to the Commissioner for Voluntary Organisations makes it difficult for him to take legal action against non-adhering charities. The law does not provide sufficient information as to what is to be included in the annual report, and discussed during the annual general meeting. This is instilling a laissez-faire attitude within the sector. CONCLUSIONS: This study concludes that while the existing VO regulatory framework was a considerable improvement, lacunae still persist. One fundamental flaw in the current framework is that it does not specifically require the mandatory enrolment of charities. Professional guidance offered to charities and increased levels of financial professionalism are as yet still wanting. Thus, education is the key to a more efficient charity sector. VALUE: It is hoped that this study contributes to the enhancement of Maltese VO regulation. The amendments to the existing charity regulatory framework put forward in this study are likely to promote the development of the local VO sector. |
Description: | M.ACCTY. |
URI: | https://www.um.edu.mt/library/oar//handle/123456789/30487 |
Appears in Collections: | Dissertations - FacEma - 2017 Dissertations - FacEMAAcc - 2017 |
Files in This Item:
File | Description | Size | Format | |
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17MACC003.pdf Restricted Access | 22.56 MB | Adobe PDF | View/Open Request a copy |
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