The Charity Commission has published a report on its inquiry into the Mohiuddin Trust, (formerly known as Al Ehya Trust) revealing a number of problematic issues in the running of the charity.

The charity provides financial and educational support to four educational establishments in the earthquake areas of Kashmir and Pakistan.

The inquiry looked at a number of issues, including potential misapplication of the charity’s funds, the management of conflicts of interest relating to a loan to a company connected with two of the trustees and the trustees’ role and financial management of the charity.

The Charity Commission viewed the financial governance of the charity as poor, its record-keeping poor and there were weaknesses in its internal financial controls and procedures.

However, additional trustees have now been appointed and improvements made to the charity’s management and administration. An action plan is being implemented and the charity’s progress will be monitored by the Commission.

The Commission’s report also highlights issues for the wider sector.

These highlight some wider governance issues which are pivotal in the managing of charities as trustees have, and must accept, ultimate responsibility for the affairs of a charity, ensuring that it is well-run and carrying out the work it was set up to do.

Ensuring robust and adequate financial controls are in place to properly manage and protect property is vital for all charities.

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