The Charity Commission has opened a statutory inquiry into Cardiff Sixth Form College over concerns about governance and financial management at the independent fee-paying educational institution once dubbed ‘Britain's brainiest school’
The inquiry began in July and follows on from a compliance case in April 2016 relating to the charity’s failure to submit its accounts. The Commission reviewed the charity’s accounts and identified a number of regulatory concerns, resulting in a books and records visit being conducted in July 2016.
Cardiff Sixth Form College recorded an income of £7.5m for the financial year ending 31 August 2014, rising to some £9.9m the following year. For both years, spending outstripped income.
The Commission said it has identified regulatory concerns about the charity’s governance, financial management and significant related party transactions between the charity and some of its former trustees.
The regulator says the charity does not appear to have identified and/or managed conflicts of interest and there have been significant high value transactions which may not have been properly authorised.
The inquiry will examine the financial management of the charity, in particular whether the charity has sufficiently robust internal financial controls, and whether there has been any misconduct and/or mismanagement by the trustees.
It will also examine the administration, governance and management of the charity by the trustees with specific regard to decision making.
It will consider whether there has been any unauthorised private benefit to trustees (current and former) or connected parties, and whether any conflicts of interest have been properly identified and managed by the charity.
On 1 November 2016 the Commission appointed Emma Moody of law firm Bond Dickinson as an interim manager to the exclusion of the current trustees to review the governance infrastructure, as well as financial controls, and to manage and oversee the proposed sale of Cardiff Sixth Form College to Dukes Education.
In addition, the interim manager will consider pursuing legal action if the charity has lost money as a result of any breach of trustee duties.
South Wales Police is also investigating a number of allegations concerning historic financial irregularities at the sixth form college.
The Commission stresses that opening an inquiry is not in itself a finding of wrong doing. It will publish a report on the issues examined when the inquiry has concluded.
