The Charity Commission has opened a statutory inquiry to examine ongoing regulatory concerns regarding the trustees' management and administration of Zlotchiv (charity register number 1181876).
The charity , which is a charitable incorporated organisation, awards grants for the advancement of Jewish faith and education as well as for the relief of those in need.
Zlotchiv's trustees have failed to meaningfully engage and cooperate with the Commission about regulatory concerns, which has resulted in the regulator escalating a compliance case to a statutory inquiry.
The Commission's concerns are about irregularities in the charity's financial management, including a series of bounced cheques from the charity's bank account alongside payments, which appear to be related party payments, that were not disclosed by the charity in its annual returns.
Trustees are expected to act in the best interests of the charity and properly manage any conflicts of interest between the charity and other parties. They must also provide accurate information annually to the Commission, which in this case includes a trustees' annual report, accounts and external scrutiny report.
The inquiry will examine if the trustees are complying with their legal duties in respect of the administration, governance and management of the charity, with particular regard to:
the charity's financial management, including the charity's viability, the extent of any related party transactions and unauthorised trustee personal benefit
the trustees' compliance with the charity's governing document
the extent to which any failings or weaknesses identified in the administration of the charity are a result of misconduct and/or mismanagement by the trustees
The scope of the inquiry may be extended if additional regulatory issues emerge during the Commission's investigation.
