Commission appoints managers to community centre after trustees resign

25 Jul 2022 News

The Charity Commission has appointed two interim managers to Shire Way Community Association after all of its trustees resigned.

The regulator opened a statutory inquiry into the charity in January over concerns about the trustees’ management of the charity’s resources and financial affairs including evidence of the organisation paying wages despite having no employees listed in its accounts.

All the trustees have since resigned, leaving the Gloucestershire-based charity unable to function. Shire Way provided education and leisure services to local residents.

The Charity Commission appointed Charles Turner and Paul Barber of corporate restructuring firm Begbies Traynor as interim managers to the charity on 18 July as part of its inquiry.

Turner and Barber will be responsible for securing the charity’s assets and reviewing its financial viability.

After this, the pair will either implement new governance arrangements or, if it is found to no longer be viable, wind the charity up.

They may also approach third parties over future arrangements for the charity’s key property assets.

Confusion over wages

The Commission opened its statutory inquiry after the charity’s trustees were over two months late filing its 2020 accounts and annual return with the regulator. The accounts have yet to be filed.

Shire Way was previously part of the double defaulters inquiry for charities that have repeatedly filed their accounts late.

The Commission said it “found evidence of payments of ‘wages’, despite accounts for 2019 stating the charity has no employees”.

Those 2019 accounts state that the charity had an income of nearly £95,000, most of which came from trading activity connected to the social club.

Meanwhile, expenditure was over £100,000 and its unrestricted funds were £459,000.

The Commission’s inquiry into the charity continues.

Civil Society News was unable to get a comment from the charity.

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