Regulatory inquiry reveals accounts discrepancies at education charity

Following a regulatory inquiry, the Charity Commission has ordered an education charity to address and improve “significant and inherent” governance weaknesses – which the regulator says are putting its funds at risk.

An inquiry into practices at BIETEC Learning and Development Training Centre revealed discrepancies in the charities accounts and cash flow with regards to income and expenditure declarations, the Commission has said.

According to reports, £969,319 of income and £719,836 of expenditure had passed through the charity’s bank account without being declared between 2009 and 2013.

The Commission’s inquiry also revealed a significant lack of separation between private company, BIETTEC – owned and operated by two of the charity’s trustees – and the charity itself.

Of the disputed funds, charity trustees said these were intended for the private company BIETTEC, but had been ‘mis-banked’, and redirected to the charity.

The regulator’s final decision found that there was no misapplication of charity funds.

However, the charity’s trustees were deemed ‘negligent’ for their failure to address ‘serious concerns’, and BIETEC Learning and Development Training Centre was ordered to improve its governance and administration.

The Charities Team at Moore Thompson can review your financial position and help to ensure that you are fully compliant and tax-efficient at all times. For more information, please contact us.