The Charity Commission is investigating a disability charity over concerns regarding an internal dispute and “significant payments” that may have been made without board approval.
Adapt North East is being probed due to concerns that the dispute may have caused disruption for the charity’s staff and beneficiaries, the commission said in its statutory inquiry announcement.
Registered in 1998, the Northumberland-based charity provides community transport, social prescribing and wheelchair hire services.
The regulator first assessed financial and governance concerns in July this year, then opened a regulatory compliance case in September, before escalating its action further to launch a statutory inquiry after it became aware of an internal dispute.
It said the dispute affected the charity’s operations and the ability of trustees to engage with the regulator’s enquiries.
The commission will examine whether Adapt North East has properly assembled a “willing and capable” board.
It will also consider whether trustees complied with the law in the charity’s administration, governance and management.
Alleged unauthorised personal benefit and conflicts of interest are other possibilities being explored by the commission in its investigation.
“The regulator is concerned about the potential impact the ongoing dispute, and any disruption it has caused, is likely to have on those who rely on its services and the charity’s staff,” the commission stated.
It will also examine whether Adapt North East had appropriate financial controls in place.
In response, an Adapt North East spokesperson said its board would “cooperate fully” with the commission, including passing over information.
The charity recorded a total income of £1m in the year to 31 March 2025, a rise from £976,000 the year prior.
Its total expenditure increased marginally to £1.07m that year from £982,000 the previous year.
In its most recent accounts, the charity stated: “None of the trustees (or any persons connected with them) received any remuneration or benefits during the current or prior year.”
