The Charity Commission has launched a statutory enquiry into the running of a disability charity that has been blighted by an internal dispute.

The regulator is warning that the disagreement is impacting ADAPT (North East)’s “ability to operate” and trustees’ “ability to engage as a collective with the regulator’s enquiries”.

It fears the row threatens to bring the charity “to a halt”.

The Commission first began assessing the charity’s governance and financial management in July, amid allegations “of significant payments being made without full approval of the trustee board”.

A compliance case was opened two months later, which is now escalated to the statutory enquiry.

“The regulator is concerned about the potential impact the ongoing dispute, and any disruption it has caused, is likely to have on those who rely on its services and the charity’s staff,” it said.

The charity provides services including community transport, social prescribing and wheelchair hire in the North East of England to support people with disabilities or mental health problems, and their families.

The regulator will look at whether the charity has a “properly composed board of trustees who are willing and capable of managing it”.

Trustees’ decision making, whether there has been unauthorised personal benefit and any potential conflicts of interest will also be looked at, as will its financial management.

Any potential impact on the charity’s beneficiaries will also be looked at.

According to the charity register ADAPT (North East)'s income for the year ending March 2025 was £1,004,904 and it spent £1,068,346 over the same period.

Its income for this period included £304,711 from eight government contracts and £105,617 from six government grants.

It has 35 members of staff and is supported by five trustees and 15 volunteers, details the register.

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