'Mismanagement' at charity that failed to file accounts for five years, says Commission

03 May 2019 News

The Charity Commission has concluded that there was “mismanagement in the administration” of a charity that failed to file it annual accounts for five years.

The regulator opened a statutory inquiry into Chabad Lubavitch UK, a Jewish charity, in 2017, following its concerns about the finances of the charity. Yesterday it published the findings and said that the charity had issues in its financial management, but that there was no fraud or misappropriation of charity assets. 

The Commission report said that financial controls in the charity “were inadequate for a charity of this size and complexity”. It also said that gaps in the financial reporting meant they were not as accurate as they could have been.

It said poor coordination of filing financial information from branches of the charity to the central body contributed to the issues.

Amy Spiller, head of investigations team at the Charity Commission, said: “This inquiry highlighted poor management and controls in the administration of the charity. The public rightly expect trustees to take their responsibilities seriously, so that charities can deliver on their mission and purpose effectively, and inspire trust.”

During the course of the inquiry, the charity improved its financial reporting and is now up to date with its accounts.

Spiller added: “I am pleased that our intervention has led to increased transparency, so that the public are better able to see how the charity manages its finances. I expect these steps towards improved governance and reporting to continue.”

The charity has an annual income of £8.5m. It is governed by one trustee.

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