Harrow Council has launched an investigation into the use of public funds for the voluntary sector in the wake of a financial scandal at a major charity in the borough.

This summer, Harrow Council asked PriceWaterhousCoopers to investigate financial irregularities at Harrow Association of Voluntary Services (HAVS).

PWC uncovered that unauthorised bonuses had been handed out to HAVS staff, including £30,000 to the chief executive. 

Harrow Council has suspended all its funding of £92,000 to HAVS.

Now, a panel of councillors will hold a challenge panel investigation into HAVS and look at the the mechanisms that the council has in place to monitor the use of public funds within voluntary sector organisations. The panel will deliver its findings in January next year.

Meanwhile, Newcastle City Council has launched a £10m fund for the voluntary and community sector.
 
The Newcastle Fund will be worth at least £10m over four years and brings together a range of separate grant funds operated by the council.

The funding will be targeted at community and voluntary-based projects that support the most vulnerable residents and communities in Newcastle.

The priorities for the fund will be projects and services that help achieve the outcomes of the city’s sustainable community strategy.