The Charity Commission has opened a statutory inquiry into a Manchester-based education and urban regeneration charity after potential unauthorised payments to a trustee and possible breaches of charity law emerged.
The regulator said today it had opened an inquiry into the Moss Side & Hulme Community Development Trust after the charity persistently failed to submit its accounts on time.
It had been included in the commission’s class inquiry into charities that had defaulted on their annual reporting obligations in two of the past five years.
According to the Charity Commission website, the charity has been late with its accounts in four of the previous five years, ranging from being 74 days late to 161 days late.
The latest accounts for the year to 31 August 2017 show that the charity had an income of £216,160 and spending of £304,179.
The charity was removed from the class inquiry on 29 March this year after it filed its accounts, but it then failed to submit its next set of accounts on time.
The commission said that the failure to file its accounts on time was a "serious regulatory concern" and evidence of misconduct and mismanagement in the charity’s administration.
Financial information submitted by the charity, according to the commission, raised further concerns about potential unauthorised payments to a trustee and other breaches of charity law affecting the charity’s management.
The inquiry will therefore consider the trustees’ compliance with their legal obligations and previous regulatory guidance, as well as whether there have been any unauthorised payments to trustees.
A spokesman for the Moss Side & Hulme Community Development Trust said the charity had no comment to make.