The charity’s activities include caring for and supporting stray dogs in east Hampshire and west Sussex. Its annual income and expenditure over the last four years has averaged around £170,000.

In March 2017 the charity’s independent examiner reported anomalies in the charity’s financial records. The Commission subsequently reviewed the charity’s financial records and identified concerns about its financial controls.

The charity also failed to submit its accounts for the financial year ending 31 March 2016, which were due by 31 January 2017 and the accounts for 2015 are not compliant with the statement of recommended practice, and have not been independently examined.

The inquiry will examine the administration, governance and management of the charity by the trustees with specific regard to the extent to which they have responsibly managed the charity’s resources and financial affairs, in particular the adequacy of the charity’s financial controls.

It will also look at whether the trustees have adequately managed risks to the charity, its property and reputation including the risks of misappropriation and misapplication of charity funds, and whether they have avoided or managed conflicts of interest.

The inquiry will examine the extent to which any failings or weaknesses identified in the administration of the charity during the conduct of the inquiry were a result of misconduct and/or mismanagement by the trustees.

As a result of its concerns regarding the charity’s financial controls, the Commission has made an order to freeze the charity’s bank accounts, together with a separate order restricting the trustees from entering into transactions in the administration of the charity without the authority of the Commission.

The Commission stressed that opening an inquiry is not in itself a finding of wrongdoing. Once the inquiry is concluded, it will publish the findings and actions that resulted.

Report by Pat Sweet