The charity has objects to advance religion in accordance with the Orthodox Jewish faith and to relieve poverty.

In June 2014 it was added to a class inquiry into charities in default of their statutory reporting obligations, having at that point failed to file annual returns, reports and accounts with the commission by the due dates for four years.

Reports and accounts submitted since have raised significant regulatory concerns.

These include the fact that annual accounts initially submitted for the financial periods ending 30 September 2009 and 31 December 2010 contained no independent audit reports, which was in breach of the Charities Act given the charity’s income.

Analysis of the charity’s bank statements by the commission highlighted a significant discrepancy with the financial activity declared in its 2011 accounts, which reported an income of approximately £140,000 and expenditure of £139,000.

The charity has since resubmitted a conflicting set of accounts for 2011 which show an income of approximately £632,000 and expenditure of £724,000. The resubmitted accounts for 2011 contains a qualified audit opinion, which prompted concerns about the charity’s financial affairs.

In addition, in 2011, the charity failed to meet repayment obligations to a lender, resulting in the repossession of the charity’s properties and a loss to the charity of £256,084.

That same year, the charity took out a loan for £131,489, which has not been repaid. The charity has failed to adequately explain why it did not make its repayment obligations or what it did with the money it borrowed.

The inquiry will examine the reliability and accuracy of the charity’s financial reporting, and the adequacy of the charity’s financial management controls and whether this has resulted in a substantial level of charity funds being lost, misappropriated or misapplied.

The Commission says it will publish a report on its findings in due course.