Q. What are my obligations as an enrolled EB?
A.
EBs must ensure that all LCF funds are spent correctly, maintain thorough records of all LCF income and expenses, and meet all statutory reporting requirements.
To understand your responsibilities as an enrolled EB, take Entrust's 30-minute online training. Access it here:EB Enrolment Module link.
Q. What is forcible revocation?
A.
If an EB seriously breaches the Landfill Tax Regulations 1996, we may refer them to HMRC for enforced revocation.
If an EB is forcibly revoked, they can no longer receive or spend LCF money. Additionally, all Directors or Trustees of the EB will be disqualified from participating in any other EB now or in the future. HMRC also has the authority to reclaim tax credits from the donating LO if contributions were not spent correctly.
Q. Can I start a project as soon as I have enrolled?
A.
No. All projects must be approved by your fund provider and approved by ENTRUST before any Landfill Communities Fund (LCF) money can be spent or works carried out.
Q. When you're completing a compliance inspection, who do you need to see and at which sites?
A.
We will need to speak with those knowledgeable about your management procedures, financial records, and LCF project records, or someone authorised to discuss these areas.
Most visits occur at the EB's registered address, where records are typically kept. However, we can conduct inspections at the most suitable location for your EB. Additionally, we may need to visit one or more project sites to ensure they comply with the original project approval and remain in use. We will inform you in advance which sites we plan to visit.
Q. What information do the compliance inspectors need?
A.
The inspectors will need to see all documents and records which demonstrate how Landfill Communities Fund (LCF) monies have been spent and evidence that regulatory obligations have been met. These will include:
- Bank statements and mandates for LCF accounts;
- Management accounts and information on your running costs charged to the LCF;
- Details of how qualifying contributions have been spent and information on Contributing Third Parties;
- Project files (including project costings, budgets, project expenses and invoices);
- Any contracts, planning permission or other legal obligations;
- Any documented procedures you use;
- Your Board papers and project approvals; and
- Your governance structure.
We will provide specific details of what documents we require when confirming the timing of the inspection. During the inspection the inspector may also ask to see additional random samples of files, this is normal audit practice.
Prior to the inspection we will review the information already provided to us, including Statutory Annual Returns; details of LCF Contributions and Transfers, Director/Trustee records and your Governing Documents so that we do not ask for information previously supplied. As part of your preparation for an inspection it would be helpful if you could review these details to ensure all of your records are up-to-date.
You can find out more about our inspection process in our compliance inspections leaflet available on the Compliance Inspection Process page of our website.
Q. Why am I being inspected?
A.
ENTRUST is the Regulator of the Landfill Communities Fund appointed by HM Revenue & Customs (HMRC). In order to satisfy our Regulatory duties we carry out an annual schedule of compliance inspections. The majority of our inspections are routine and are nothing to be concerned about.
Our inspections are identified through our risk model which consists of a number of risk indicators. The key indicators include:
- The amount of Landfill Communities Fund (LCF) monies received, spent or uncommitted;
- Performance in complying with statutory obligations, such as submitting Statutory Annual Returns, reporting of Contributions or Transfers; and
- The results of previous compliance inspections.
We will also take into consideration any other information received which may indicate possible non-compliance with the Regulations. You can find out more about our inspections in our compliance inspections leaflet available on the Compliance Inspection Process page of our website.
Q. What can I expect at a compliance inspection?
A.
We carry out two main types of inspection: a project compliance (PC) inspection and a control framework inspection (CFI). Both of these will look at how your organisation is managed. A PC inspection will focus on your EB's delivery of projects. A CFI inspection is more detailed and in addition to reviewing project delivery will also cover your EB's governance and management arrangements.
The length and detail of the inspection will vary dependant on the size of your organisation. A Compliance Inspector will make contact to arrange a convenient date and time for the inspection and will explain what we intend to review, including details of specific projects, and will explain what will be required of you. This will also give you a chance to ask any questions you may have. We will then confirm all of the details discussed in an email or a letter.
We understand that Environmental Bodies in some cases are run by volunteers or individuals, we will therefore try and ensure that any disruption to you is minimised. However if you have any concerns please speak to your Compliance Inspector when arranging the visit or the Compliance Manager. All contact details are held on our website.
On occasion, we may complete a desktop review instead of an inspection visit. If we complete a desktop review we will need you to supply all of the documentary evidence to us to support the review.
You can find out more about our inspections in our compliance inspections leaflet available on the Compliance Inspection Process page of our website.
Q. Why do you carry out compliance inspections?
A.
ENTRUST is the regulator of the Landfill Communities Fund (LCF) appointed by HM Revenue & Customs (HMRC). We have a duty to make sure that Environmental Bodies (EBs) receiving LCF monies are meeting the requirements of the Landfill Tax Regulations 1996.
One way of doing this is by visiting you and your projects to look at your procedures and records. We will always notify you, prior to the visit, of the documentation we will wish to review. We will give you as much prior notice of our intention to visit as possible.
We can also offer advice and recommendations for improvement at the inspection.
You can find out more about our inspections in our compliance inspections leaflet available on the Compliance Inspection Process page of our website.
Q. How do I subscribe to an RSS?
A.
Most modern browsers have an RSS feature as part of their bookmarks system. To subscribe either click on the small RSS symbol, normally located at the right hand side of the address bar, or go to our RSS feed page and you should be prompted with on-screen instructions.
Q. What is RSS?
A.
RSS is a technology for collecting content from various sources and displaying it all in one place. It is automatically updated at regular intervals so when you check your RSS Reader or Aggregator you can be sure it is displaying up to the minute information.
If you subscribe to a site's RSS feed you can stay up to date with the site's news, or whatever other content they may choose to transmit, without having to visit the site every time.