The Charity Commission has ordered trustees of a charity to keep records of cash donated and improve other aspects of governance, following an investigation.
According to an investigation report, published today, Al-Hassan Education Centre’s trustees had failed to comply with the charity’s own governing document, by not holding an annual general meeting. There had also been mismanagement of financial governance, including not having controls or policies for cash collected at Friday prayers.
Al-Hassan Education Centre was originally part of the commission’s class inquiry into charities that had not filed their annual accounts for two years. In the process of taking action to ensure the charity complied with its obligations to file accounts, the commission became concerned about other aspects of governance.
The commission has used its powers to tell the trustees that they must hold an AGM by 20 June and that before it does so it must give between seven and 28 days’ notice to people entitled to attend.
It has also told the charity to review all its policies, including its terrorism policy. The charity must also adopt a policy for loans, hold at least two trustee meetings a year and keep a record of cash donations after Friday prayers.
Carl Mehta, head of investigations enforcement at the commission, said: “The trustees in this case failed to take basic steps to ensure that the charity’s funds were able to be accounted for. This is simply not acceptable and I expect the trustees to take measures to speedily correct this.”
“For many faith groups, collecting funds in cash is likely to be a regular occurrence as part of worship or devotion. Charities must ensure that they have in place effective and proper financial controls to ensure those funds are safeguarded.”
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