The Charity Commission is considering whether to investigate My Generation, the charity run by Conservative parliamentary candidate Shaun Bailey, after its annual report showed nearly £16,000 of its spending could not be accounted for.
The charity spent £201,859 in the financial year 2008/09, providing receipts for £185,907 of this, leaving £15,952 without any supporting records. Its income that year was £169,824.
Bailey is chief executive of the charity, which runs community projects for young people. He is standing as the Conservative candidate for Hammersmith, west London, a new and highly marginal constituency resulting from boundary changes.
Bailey's main opponent is the Labour candidate, Andy Slaughter, who was MP for the neighbouring constituency of Ealing, Acton and Shepherd's Bush in the last Parliament. Observers say the campaign is highly charged.
In a statement, Bailey said the trustees believed the discrepancy arose because the charity changed accountants and it appeared that the old accountants did not pass all the invoices on to the new accountants.
"As soon as the paper trail is clarified, the complete 2008/9 accounts will be re-submitted so that everything is clear," he said. "The charity's accountants are waiting to see what information can be recovered and then will provide an explanation to the Charity Commission."
A Charity Commission spokeswoman said: "We are assessing this issue in line with normal procedure in order to determine what role, if any, there may be for us."
The charity's website says:"We aim to inspire people to lead more socially responsible lives and open up a life of opportunity through specific empowerment projects in order to break away from a growing dependency culture."