20/07/10

By Andrew Holt

The Charity Commission has today published a report on its inquiry into the charity Independence South West, which runs a day care and respite centre for severely disabled adults in South West England, finding against the charity's chair.

The investigation was opened after the Commission was anonymously informed that the chair of the charity was being investigated by the police in connection with alleged fraud against a public body.

The Commission’s investigation looked at a number of issues, including whether a trustee was receiving unauthorised benefits.

This related to the way in which the charity employed and paid its chair to work as the charity’s Chief Executive Officer (CEO).

The investigation also looked at the misuse of charity resources, safeguarding procedures for the charity’s vulnerable beneficiaries and the charity’s failure to co-operate with the Commission.

The Commission’s investigation found that the chair had misused the charity’s invoices resulting in two police cautions for fraud by false representation.

The inquiry also found that the chair received unauthorised trustee payments as the CEO of the charity, and that the charity’s vulnerable beneficiaries had been put at risk due to poor management, lack of staff training and inadequate safeguarding procedures.

The Commission’s involvement has ensured that the chair resigned from the board of trustees and from the position of CEO.

The charity has now elected new trustees and a new chair of the board.

The details of the Commission’s investigation and its full findings are set out in the report published today.

The case highlighted issues for the wider sector.

These included trustees’ duty to ensure their charity’s reputation is not brought into disrepute because it fails to manage risks or complaints properly.

Trustees of charities working closely with vulnerable beneficiaries should pay particular attention to risks associated with the nature of their work.

Trustees must react quickly and responsibly to allegations of harm to beneficiaries to ensure that no beneficiaries are at risk.

Trustees should also ensure they manage their charity according to the provisions of its governing document

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