The Charity Commission is investigating a Hartlepool community association, having developed concerns about whether trustees have managed the charity and its finances properly.

The Manor Residents Association is under investigation over possible trustee mismanagement or misconduct regarding the charity’s finances, whether there has been serious governance failures and whether trustees have fulfilled their legal obligations. The regulator is also looking into what it described as “the apparent significant risk to, and potential loss of, the charity’s funds or other property”.

The Commission today announced it opened an investigation into the Manor Residents Association of Owton Manor in the County Durham city earlier in October after having developed concerns about the governance of the charity following an employment tribunal ruling against it in May this year.

The regulator said it has been in contact with the charity trustees since May, but has been unhappy with assurances they provided.

The Commission has restricted the charity’s bank accounts and the variety of transactions trustees may enter into using the accounts, including the sale of property.

Manor Residents Association would not provide any comment on the investigation.

The Charity Commission will release a full report into the investigation after its conclusion.