Financial control inquiry into RAF mess charities takes off

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The Charity Commission has launched a statutory class inquiry into over 60 Royal Air Force (RAF) mess charities after receiving notification of a £72,000 fraud at two of them, which has prompted questions about governance and financial controls

There are 61 RAF mess charities in the UK, plus six others overseas, all of which provide amenities, facilities and services for service personnel. 

The commission was notified by the managing trustee of two RAF mess charities of a fraud carried out by a contractor’s employee at RAF Honington. Subsequently the individual pleaded guilty to fraud by abuse of position involving more than £72,000 and was sentenced to 18 months in May 2016.

The Charity Commission says the level of loss was significant for the two mess charities at RAF Honington, which have a combined annual income of approximately £225,000.

In addition, the regulator says the losses, which occurred over a period of at least two years, raise serious regulatory concerns as all RAF messes have standardised financial control systems. The inquiry will consider whether adequate steps were taken to safeguard the funds of the other mess charities.

In addition to the financial losses, the incident had a serious impact on the ability of the two mess charities to prepare, maintain and preserve accurate accounting records. As a result the RAF Honington mess charities did not fully comply with their legal obligations under the Charities Act 2011, including failing to file accounts with the commission for the last three years.

The newly announced inquiry will look at whether, and to what extent, other losses have occurred at other messes. If this is so, it will examine whether adequate steps were or are being taken to recover any such losses and the adequacy of serious incident reporting by the managing trustees of registered RAF mess charities. The commission will also consider the adequacy of the RAF mess charities’ control procedures and practices.

Once the inquiry is concluded, the commission will make public its report. 

Pat Sweet | Reporter, Accountancy Daily [2010-2021]

Pat Sweet was the former online reporter at Accountancy Daily and contributor to the monthly Accountancy magazine, pub...

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