The Charity Commission has frozen the bank accounts of Families Against Neuroblastoma and appointed two interim managers to take control of its assets while it investigates concerns over the charity’s governance.
The regulator opened a statutory inquiry into the charity, which registered in 2010 and promotes the physical and mental health of sufferers of neuroblastoma, an aggressive form of childhood cancer, in the UK, on 13 June.
Steven Law and John Ariel, partners at the accountancy firm Baker Tilly Restructuring and Recovery have been appointed interim managers to take control of the charity and its assets to the exclusion of FAN’s sole trustee, the Commission said.
The charity said no one was available to comment on the inquiry.
A spokesman for Baker Tilly said the firm wanted to reassure the families involved with the charity that its funds have been secured and they will still be able to access them in case of need.
There are about 40 families involved with the charity and 14 open fundraising appeals running on its site, he said.
The Commission said it was investigating a number of concerns but its focus was “a lack of proper governance structure at the charity, and as a result the risks that may arise to the charity’s funds or other property”.
According to its latest accounts filed with the regulator, the charity had income of £1.4m in the year to 31 March 2013 and spent £472,667. FAN carried forward funds of £1.9m.
The interim managers have written to the families involved with FAN, saying: “Our role as interim managers is firstly to secure the charity’s funds, and I would like to put your mind at rest that we have done so, and thereafter to take control of the day to day running of the charity assisted by the remaining staff, until such time as a new board of trustees can be appointed.
“I would like to reassure families that we are continuing to operate the charity as normal, which will enable beneficiaries to access the funds raised by their appeals in case of need.”
The inquiry will look at the financial management of the charity, the accounting treatment of funds raised, the administration, governance and management of the charity and whether or not the trustees have complied with their duties and responsibilities under charity law.
