An investigation into a charity which was persistently late filing accounts has now closed, finding that there was mismanagement and misconduct in the administration of the charity by its trustees.
The charity was investigated after a Charity Commission accountant scrutinised the charity’s accounts and identified that they were not compliant with the charity accounting regulations. It identified issues with the charity’s internal financial controls financial management, in particularly in relation to how cash was handled.
The commission had first opened a class inquiry into the charity, Apostolic Faith Mission International Ministries UK, in September 2013. The charity had been one of several to form part of the class inquiry into charity that were in default of their statutory obligations to meet reporting requirements.
After submitting its outstanding documents, it ceased to be part of the class inquiry in November 2013. However, the charity went on to default on the required 2013 documentation, leading the commission to open a statutory inquiry into the charity.
The investigation found that trustees failed to meet their legal obligations, and that the financial governance of the charity was inadequate, particularly in relation to how cash was handled, and as a result the charity’s assets were “placed at risk which amounted to mismanagement on the part of the trustees”.
The commission said its subsequent engagement with the charity had a positive effect and that the charity had ensured the improvement of its financial governance. It said that the charity is now in a position of compliance with its statutory requirements to submit accounting information for the first time in 10 years. It yesterday published its inquiry report.
Carl Mehta, head of investigations, enforcement at the Charity Commission, said: “Charities enjoy a range of benefits as a result of their status, but they also have a duty to the public, as well as a legal duty, to be transparent regarding their finances and submit accounts to be displayed on the register of charities.
“The commission takes this responsibility seriously and regards it as mismanagement and misconduct in the administration of the charity when a charity fails to submit their accounts. Trustees must also ensure that their accounts comply with the relevant accounting standards and that their charity has robust financial controls in place. “
The charity did not respond to an invitation to comment.
Related articles
