Charity China order loss: when to report
Report promptly when a sourcing incident causes or risks significant harm in your charity’s context. Suspected crime is usually reportable; a lost deposit needs assessment of its cause and impact. Trustees remain responsible even if someone else submits the report. Supplier evidence can be gathered by Cambridge China Bridge.
Assess the charity’s exposure
This guide concerns charities in England and Wales. Significance depends on the charity’s circumstances, including its finances, operations and reputation. A missing deposit, unsafe goods or exposed beneficiary information needs an assessment of the consequences, rather than a decision based only on the invoice value.
Prepare a short impact note: money lost or still at risk, replacement purchasing needs, affected services and any risk to people. Explain whether the charity can continue the planned activity. Keep confirmed facts, allegations and unanswered supplier questions separate.
Separate suspected fraud from commercial loss
Actual or alleged criminal activity is usually reportable, with exceptions for minor crime and minor impact. Fraud has no minimum reportable loss figure; repeated low-value incidents can also warrant reporting. Supplier silence alone does not establish fraud. Record what supports the suspicion, such as false identity documents or diverted payment details.
For other financial losses, assess whether services or reserves are threatened. The guidance excludes ordinary bad debts unless they significantly threaten solvency. Do not automatically classify a missing deposit as an ordinary bad debt. Document the cause and impact, and use our supplier payment fraud guide for immediate bank and evidence actions.
Put trustees in charge of the report
Trustees retain responsibility, although submission can be delegated. Report an actual or alleged serious incident promptly. Do not wait for a criminal case to finish, or treat a report to another agency as a substitute. The person submitting must confirm authority from the trustee body.
Name the reporting lead and record trustee awareness, authority and the reporting decision. If deciding against reporting, retain the reasons and identify what new evidence would trigger reassessment. Use the existing charity sourcing approval pack to trace the original purchasing decision.
Prepare a clear incident account
Use the Commission’s serious incident online form. Explain what happened, when it happened and was discovered, its impact, and how the charity is responding. Include the reporting contact, charity identity, relevant agency references, trustee awareness, applicable procedures and prevention measures.
Build the account from the order, invoice, payment confirmation, supplier correspondence and approval record. State the amount paid, recovery status and service consequences without presenting hoped-for refunds as recovered money. Describe payment holds, supplier checks and replacement plans, naming the person responsible for each action.
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Keep the response and evidence current
Notify the Commission of material changes or significant developments, including allegations found to be groundless. Keep its incident reference with the case file. Record recoveries, revised loss estimates and changes to the charity’s ability to deliver services.
Ask Cambridge China Bridge’s staff in China for dated supplier and order findings to support the charity’s account. Keep these separate from trustee conclusions. Before restarting purchasing, review the order and payment approval controls and record the evidence needed to release any further payment.
Frequently asked questions
Must a charity report every lost supplier deposit?
Assess the cause and impact. Suspected crime is usually reportable. An ordinary bad debt is excluded unless it significantly threatens solvency; do not assume every missing deposit belongs in that category.
Can a small supplier fraud be a serious incident?
Yes. Fraud has no minimum reportable loss figure. Assess seriousness in the charity’s context, including repeated incidents, harm and potential risks.
Can an employee submit the charity’s report?
Yes, with authority from the trustees. Reporting can be delegated, but trustees retain ultimate responsibility for ensuring a timely report.
Should we wait until the fraud investigation ends?
No. Report a serious actual or alleged incident promptly, explaining known facts and current actions. Update the Commission when material facts change.