Charity Commission opens statutory inquiry into ‘double defaulter’ charity

Children Care Centre says it is meeting with the regulator in July

The Charity Commission has opened a statutory inquiry into a charity that has not submitted any accounts for the past two years.

Children Care Centre had already been warned by the commission over late filing of its accounts in 2018 and 2019.

The regulator will now consider whether trustees at the charity have breached their duties.

A statutory inquiry gives the commission full access to its legal powers.

Children Care Centre was set up to support the Amod Orphanage in India.

It was included in the commission’s ‘double-defaulter’ inquiry in 2021, which looked into charities that had filed their accounts late for two years in a row. Children Care Centre was 988 days late filing its 2018 annual report, and 623 days late with its 2019 report.

The charity received advice from the regulator, but then “trustees defaulted on their legal duty to submit annual returns for the financial years ending in March 2020 and 2021”, the commission said in a statement.

The Charity Commission opened a statutory inquiry earlier this month and will consider whether Children Care Centre has complied with its financial reporting duties and whether there has been mismanagement or misconduct at the charity.

According to the last accounts the charity filed with the commission, which cover the year to the end of March 2018, Children Care Centre had an income of £333,338 and spent £111,087. The year before, its income was £318,061 and its expenditure was £1,231,725.

A spokesperson for the charity told Third Sector that a meeting with the regulator was scheduled for next month, and it would not comment until after the inquiry was finished.

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