ENTRUST
ENTRUST is the regulator of the Landfill Communities Fund (LCF) and does not allocate or have influence over the distribution of landfill tax monies. The LCF operates with a Landfill Operator (LO) passing the tax forgone element of its landfill tax liability to Environmental Bodies (EBs) who are then obligated to spend the monies on one or more of the 'approved objects' appearing in the Landfill Tax Regulations 1996 and subsequent amendments (Regulations).
Both the EBs' activities and the works they undertake through delivering an approved object (via a project) is regulated by ENTRUST. ENTRUST has adopted the approach of a proactive regulator with a 'risk based' approach to both the operations of the 2750+ EBs it regulates and the projects delivered.
ENTRUST also reviews all the work the EBs wish to undertake by assessing the project work in advance of it taking place or any monies being spent. ENTRUST does this by advising and guiding applicants to a point where the intent of the project is clearly to deliver an approved object. Over 34,000 projects have been approved by ENTRUST since the inception of the Scheme in 1996.
It is the role of the EBs to ensure that LCF monies are spent in accordance with the Regulations. It is the role of ENTRUST to audit and verify the compliance of this activity which it does primarily through compliance inspections.
ENTRUST issue guidance to EBs on how to operate compliantly. If an EB is found to be non-compliant, enforcement action may be taken. This includes advice and guidance, but the ultimate sanctions are revocation from the scheme by HMRC or clawback of the LCF funding from the contributing LO.
The safeguards to ensure that landfill tax monies are applied and spent in accordance with the Regulations are through the management and control of funds by the EBs. It is ENTRUST's role to regulate these EBs.