Council is sole trustee of charity - is the charity exempt from financial regs and public contract regulations?

Question

Council is sole trustee (and main funder) of a charity. It has decided to subsidize the charity, and the charity committee (cllrs) is looking to award a contract to a supplier. Is the charity (and thus, in effect, the cllrs and council) exempt from following the council financial regulations when awarding the contract? And, is the charity covered by the Public Contracts Regs 2015?

Answer 1

Regardless of councillors being trustees the charity is an entity separate from the Parish Council and must abide by the rules and requirements set by their incorporation with the charity commission. The supply of funds to the charity from the PC is to be carried out under PC policies and rules.