Late-filing charity under Commission probe restructures

24 Jan 2014 News

One of the charities involved in the Charity Commission’s class inquiry into late filing of accounts has decided to register each of its churches as separate charities.

One of the charities involved in the Charity Commission’s class inquiry into late accounts filing has decided to register each of its churches as separate charities.

The Charity Commission today published inquiry reports into the Apostolic Faith Mission International Ministries UK and three other charities, also faith-based, that have been removed from the double defaulters class inquiry after filing accounts. The report into the Apostolic Faith Mission International Ministries UK, reveals that the organisation is now "at an advanced stage of decentralisation".

The charity explained its failure to file its accounts as related to problems with management “due to a centralised structure, whereby a people accountable are far from the activities”.

It told the Commission that reminders from the Commission had not been passed on to the right people. Most churches have now been registered as a separate charities. The organisation will soon meet to discuss other changes and strategies "to ensure that there is no recurrence of failure of compliance on the main charity and by the independent charities". 

Branches have been registered in Leeds, Doncaster, South East London and Manchester, according to the Commission's website.

In 2010, the Apostolic Faith Mission International Ministries, got most of its £1m income from what it describes as "love offering" (£100,000) and tithes (£500,000) . It spent a large proportion of this (£295,538) on what it calls "spiritual leader costs", a range of expenditure on the charity’s pastor, including mobile phone expenses, hospitality and council tax. 

Other excuses for late filing

The three other charities under investigation by the Charity Commission for late filing of accounts had other excuses, including not having the time: 

The Society of Friends of the Torah - Assets had been transferred to another charity in the form of a limited company, Society of Friends of the Torah, the charity said. Trustees had asked if the old charity could be removed without filing final accounts, but the Commission told them in August 2012 that they needed to file final accounts.

Parochial Church Council of the Ecclesiastical Parish of St Peter, Notting Hill - Trustees told the Commission that: “The auditors came to look at the accounts and picked up on a few minor issues. The problems which you have highlighted are related to the involvement of our auditors and our communication with them.”

Azhar Academy - Trustees told the Commission that they had “been extremely active with major new projects" and that  "our preoccupation with these major activities and being trustees of a voluntary nature” as well as work commitments were why they had failed to file accounts.

Since filing their accounts all four charities have been removed from the inquiry. Any issues with the accounts will be followed up separately by the Commission.

Michelle Russell, head of investigations and enforcements, said the Commission had considered the numerous excuses.“None of these reasons alleviate the trustees from the duty to file accounts on time,” she said.

So far 13 of the 24 charities that formed a part of thehave filed their accounts with 11 charities remaining part of the class inquiry.

The Commission issued reports on five of the charities that had filed their reports in November.

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