Charity’s bank account frozen after trustees fail to provide evidence for spending

25 Jul 2022 News

The Charity Commission has opened a statutory inquiry into a charity after trustees were not able to provide evidence that all funds have been spent in furtherance of its purposes.

The Air Ambulance Foundation UK aims to provide financial support to air ambulance services throughout England and Wales.

Data on the Commission’s website for the financial year ending 30 April 2021 states the report was filed 94 days late, but is now up to date.

Those same accounts note three substantial donations, (£200,000, £55,642.94 and £41,072.19) were received during the year from estates of members of the public.

Meanwhile, the charity's total listed expenditure for the year was £18,790.

The regulator assessed the charity’s banking records and asked the trustees to evidence how certain payments were in furtherance of its objects. 

As they failed to do so the regulator opened an inquiry and used its powers to freeze the charity’s bank account, so as to protect its assets.

The statutory inquiry will examine the administration, governance and management of the charity. In particular it will look at whether the trustees can fully account for the charity’s expenditure, and if expenditure has been in furtherance of the charity’s objects.

Civil Society News was not able to contact the charity for comment.

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