The Charity Commission has opened a new statutory inquiry into the Cymmer Workmens Hall and Institute, over concerns about the charity’s governance, trading activities and accounting policies
The charity, based in Wales, operates a social club and funds educational activities. Its property is used by local community groups.
The Commission has previously provided advice and guidance to the trustees regarding substantial levels of non-primary purpose trading that the charity has undertaken and the charity’s failure to submit statement of recommended practice (SORP) compliant accounts.
The Commission is also concerned that there appears to be only one active trustee of the charity.
The charity was included and subsequently removed from the Commission’s class inquiry in 2014 after submitting the outstanding accounts, but fell into default and became part of the class inquiry again in February 2017.
After further reminders from the Commission the charity submitted late accounts for 2014 and 2015 but these were not compliant with the SORP. The accounts show income and expenditure for the past five years of between £270,000 and £320,000.
The investigation is examining the charity’s control systems, looking at whether any trading carried out by the charity is compliant with current legislation, and how the charity complies with its governing document.
It will also consider the extent to which any failings or weaknesses identified in the management and administration of the charity were a result of misconduct and/or mismanagement by the trustees, and whether any steps need to be undertaken to modify the operating structure and governing document framework of the charity and social activities associated with the charity’s property.
A meeting with the one active trustee has already taken place and an order under S84 Charities Act 2011 has been issued to the charity requesting the submission of all outstanding documents by 6 March 2018. The Commission reports that, to date, the trustee has co-operated fully with the inquiry.
Once the inquiry is over, the Commission will publish a report detailing what issues the inquiry looked at, what actions were undertaken y and what the outcomes were.
Report by Pat Sweet
