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The Charity Commission is taking a tougher approach to non-compliance in charities

A report of the Commission’s investigations and compliance case work shows that 23 out of the 29 most serious investigations involved concerns linked to fraud, financial abuse and financial mismanagement.

The Commission reviewed 2,770 sets of charity accounts, including accounts reviewed as part of a random sample, and those reviewed as part of specific projects, such as reviewing accounts that had characteristics similar to those of the accounts of The Cup Trust.

Sam Younger, the Commission’s Chief Executive believes that to prevent abuse, it is vital that trustees understand and take seriously their legal duties including protecting funds and other property, as problems are often a result of weak oversight by trustees or because one or two trustees are allowed to dominate inappropriately, resulting in mismanagement and misconduct.

The regulator now routinely uses its information gathering powers under the Charities Act 2011 to require trustees to provide information during statutory inquiries and launched a new Operations function monitoring team to follow up on operational compliance cases, checking that trustees have implemented the action plan and have followed the Commission’s advice on how to put things right. The Commission has also updated its Memorandum of Understanding with HMRC, making more specific the types of information the two agencies agree to exchange.

http://www.charitycommission.gov.uk/our-regulatory-work/reporting-our-regulatory-work/tackling-abuse-and-mismanagement-reports-of-the-commissions-investigations-and-compliance-case-work/tackling-abuse-and-mismanagement-executive-summary/

 

 

Date: 18th December, 2013
Author: Wendy Bambrick

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