The charity was founded in 2007 by Luke Lancaster and reported an income of over £400,000 for the financial year ending 31 October 2014, the most recent accounts available, with spending totalling £348,710.

The charity has objects to support young people through the provision of recreational and leisure time activities, and to advance the education of young people.

The commission engaged with the charity in September 2011, again the following year and also in October 2015, over concerns regarding personal benefit and conflicts of interest, and provided regulatory advice and guidance to the trustees.

In June 2016, the commission received further information which it says indicates that individuals may have been receiving significant private benefit from the charity since 2010.

As a result, the commission has concerns that the trustees have not acted on previous regulatory advice and guidance and have not properly identified or managed the conflicts of interest.

In addition, the commission is not satisfied that the trustees have exercised sufficient control and management of the charity’s property including its funds and that the charity may be operating without the required number of trustees which raises concerns regarding the validity of the trustees’ decisions.

The inquiry will examine the charity’s administration, governance and management with specific regard to the trustees’ decision making. It will also look at the financial management of the charity, in particular whether the charity has sufficiently robust internal financial controls.

According to the Young Pioneers 2014 trustees’ report and accounts, the primary focus for 2013/14 was training young people to deliver events for the benefit of other young people though a series of national and regional STEM events at Big Bang Technology Shows. The charity also provided 20 STEM ambassador scholarships based on coding and the use of Raspberry Pi computers.

The report states: ‘Overall during this accounting period the charity has provided alternative education weekly for five young people on an annual basis and trained over 30 youth technology trainers and ran national events which engaged over 80,000 young people.’

 There is a note to the accounts on related parties. This states: ‘During the year fees were payable to Mrs S Lancaster (company secretary) and her husband Mr P Lancaster totalling £47,686 (2013 - £42,852) in respect of their services provided to the charity regarding teaching, delivery of services, training, strategic leadership and management co-ordination’.

The noted stated the fees have been paid in accordance with the relevant provisions in the charitable company's memorandum and articles of association.

‘The fees chargeable revolve around the specialist teaching and delivery and planning of the courses as well as the guardianship and mentoring of Luke (founder of Young Pioneers), the continued growth of the charity and the delivery of courses to young people in need,’ the note said.

The accounts note stated that in connection with this, the charity has reimbursed travel, clothing and subsistence expenses during the year in respect of attending meetings and events relevant to the charity's activities.

The commission says it will publish a report once its inquiry is concluded, detailing any actions and outcomes.