Regulator investigates charity over lack of accounts

The Charity Commission has opened a statutory inquiry into Jalalabad Association to look into concerns over potential mismanagement in the administration of the charity, which has failed to submit accounts for four years

The charity, whose objects include the advancement of the religion of Islam throughout the Hereford and Worcester area, was previously included in a class statutory inquiry after failing to fulfil its statutory duty to submit its necessary financial information to the Commission for five consecutive years.

As part of the class inquiry the Commission made an order compelling the trustees to provide, within a specified time frame, the outstanding information and to undertake a review, implementing changes to the charity’s procedures and practices around the preparation and submission of financial information.

The trustees failed to comply with this order, but eventually submitted a set of accounts and a trustees’ report for the financial year ending 31 March 2013, 1735 days late.

The trustees continue to be in default of their statutory duty to file annual returns and accounts with the Commission, with information for the years 2012 and 2014 - 2017 still outstanding.

As a result of the trustees’ continued non-compliance, the Commission has now opened a separate statutory inquiry into the extent to which the trustees are complying with their legal duties in respect of their administration, governance and management of the charity.

The inquiry will consider whether a properly appointed board of trustees is exercising proper and adequate oversight over the charity’s affairs; the effectiveness of its financial management, include its financial controls; whether the charity is complying with legal obligations for the preparation and filing of the charity’s accounts and other information and returns; and how far the trustees have complied with previously issued regulatory guidance.

It is the Commission’s policy, after it has concluded an inquiry, to publish a report detailing what issues the inquiry looked at, what actions were undertaken as part of the inquiry and what the outcomes were.

Report by Pat Sweet

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