The Charity Commission has recently initiated a statutory inquiry into the Centre for Skills Enhancement Limited, a Christian charity registered in 2006. The inquiry comes as a result of growing concerns regarding potential misconduct and mismanagement within the charity’s administration, posing a significant risk to its property, beneficiaries, and overall mission.
Established with the primary aims of alleviating poverty, supporting humanitarian causes, and providing basic education, the Centre for Skills Enhancement Limited has encountered several issues that have prompted the Charity Commission to intervene.
Among the concerns raised is the potential submission of inaccurate financial accounts by the charity to the Commission. It is believed that these accounts omitted crucial details about related party transactions and possible misapplication of funds, including unauthorised payments to a trustee. Furthermore, the regulator has observed that the charity submitted accounts that do not comply with the Statement of Recommended Practice (SORP).
In light of these concerns regarding financial mismanagement and the risk it poses to the charity’s assets, the Charity Commission has exercised its powers to freeze the Centre for Skills Enhancement Limited’s bank account, allowing for a thorough investigation into the matter.
Additionally, the regulator will examine whether the charity has been operating with an insufficient number of trustees. While the governing document requires three trustees, it appears that the charity only had one. However, following the initiation of the inquiry, the Centre for Skills Enhancement Limited has informed the Commission that it has appointed two new trustees.
The statutory inquiry will focus on several key regulatory issues. Firstly, it will evaluate the extent to which the trustees have fulfilled their legal duties regarding the administration, governance, and management of the charity, with a particular emphasis on financial management and any unauthorised benefits received by trustees or related parties. Additionally, the inquiry will seek to determine if any misconduct or mismanagement has occurred and whether regulatory action is necessary. It will also scrutinise the charity’s adherence to legal requirements in accurately accounting for its funds and assets, as well as assess if the charity is effectively fulfilling its objectives and operating for the public benefit.
If further regulatory issues arise during the course of the inquiry, the Charity Commission retains the right to expand its scope accordingly.
As per its policy, once the inquiry has been concluded, the Charity Commission will publish a comprehensive report, outlining the specific issues examined, the actions taken, and the outcomes of the investigation.
