Instances where charities have paid "excessive" expenses to trustees are among some of the main concerns reported to the Charity Commission for Northern Ireland in its first three years.

The Charity Commission for Northern Ireland has received 284 concerns in the three years it has been investigating charities.

A document released by the Commission this month called Latest lessons learned from concerns about charities said that, although the charities may have healthy reserves in place, the expenses could be viewed by others as excessive.

It added that although such expenses may have been authorised, and in line with charity law, the collective impact of expenses viewed as unnecessary can create a perception that is detrimental to the charity’s reputation.

Frances McCandless, chief executive of the Charity Commission for Northern Ireland, said about concerns reported: "One of the issues identified are payments and expenses for trustees, with the report providing guidance on how to ensure you are following the right practices when tendering for contracts or paying out-of-pocket costs to trustees.

"Other areas we have looked at include recruiting staff and charity property, for example buying or leasing property, which are just some of the key governance areas which trustees should be aware of."

The report also mentioned that there are examples of a lack of clarity when trustees and their families are appointed as service providers. It added that this could lead to a perception that trustees were benefitting from their position within the charity and, as a result, not demonstrating a fair use of charitable funds.

A further concern raised was related to disagreements and disputes within charities. The Commission suggested governance failures by trustees were present, which included a failure to hold regular trustee meetings, to publish financial information to members and to act in line with the organisation’s governing document.

Poor recruitment practices and conflicts of interest were also flagged. The Commission said examples of this include a board meeting in which a board member was recruited to a position within a charity; and another where a close relative of a trustee was hired to a job role, with the selection again taking place at a board meeting.

Of the 284 concerns received in the last three years, which averaged at about eight new concerns a month, 232 have now been concluded. The remaining 52 are still under investigation.

McCandless said: "The majority of concerns we receive involve minor governance issues, easily put right with the correct advice or guidance from the Commission.

"That’s why reports such as Latest lessons learned are so important, as they take common issues from those concerns and provide advice and information to help charities get their governance right from the start."

The Commission has also suggested that it does not know how many charities are in operation in Northern Ireland, stating that it is estimated to be somewhere in the region of 7,000 to 12,000 organisations. The Commission has begun the process of registering all of these charities operating in Northern Ireland.