A Catholic charity registered in 1966 has agreed to undertake a governance review after an investigation found trustee failings including late filing of accounts.
The Order of Friars Minor Conventual filed its financial information late for four consecutive years from 2020 to 2023, two of which were overdue by more than two years, but has now filed all its outstanding accounts during the course of a statutory inquiry.
The Charity Commission’s inquiry, which closed this week, also found that two of the charity’s five friaries in England were not registered with the Land Registry and that the legal title to one of the buildings was being held in the name of former trustees.
In response to this finding, the charity’s trustees are now working with consultants to ensure property details are kept up to date and have agreed to introduce an asset management policy.
The regulator concluded that the trustees were responsible for misconduct and mismanagement in the administration of the charity.
However, the commission said it was satisfied with the steps the current trustees were taking to improve the governance and financial management of the charity.
Complex governance structure
The international Order of Friars Minor, headquartered in Italy, was founded by Francis of Assisi in 1209.
The commission found that the UK charity is part of a complex structure including involvement in the wider international order within the Catholic Church, with which it also has to comply.
It found that the current trustees’ knowledge and understanding of the Order of Friars Minor Conventual’s governing document was limited, and that the charity lacked a policy on managing conflicts of interest.
The trustees have agreed to carry out a governance review, considering matters such as their induction procedures and the membership of the trustee board, as well as ensuring that they have appropriate procedures in place to manage any conflicts of interest which may arise, particularly when individuals hold roles in multiple entities in the wider structure.
They have also agreed to review their governing document to ensure that it continues to meet the charity’s needs.
Taken together, the failings by the trustees in relation to their oversight of the charity’s operations and activities outlined above amount to misconduct and/or mismanagement in the administration of the charity.
Financial controls
The inquiry found that the charity lacked a number of key policies or procedures, particularly in relation to its financial controls.
However, during the inquiry, the trustees engaged a firm of charity consultants and are now implementing a plan directed towards ensuring compliance with their legal obligations and commission guidance in the future.
The current trustees also acknowledged that the charity’s past safeguarding procedures required improvement.
Civil Society has asked the charity to comment.
