The regulator is investigating Flic-Flac Gymnastics Club, in Chorley, Lancashire, amid concerns about payments made to trustees.
The charity was set up to encourage young people to take part in gymnastics.
The charity was already under investigation as part of the Commission's 'double defaulters' class inquiry, after it was identified as persistently late in filing its accounting information. Generally, this is regarded as mismanagement and/or misconduct in the administration of the charity.
Subsequently, further regulatory concerns emerged and on 23 July 2024 a separate inquiry was opened.
The Commission has identified concerns about payments to trustees that may be unauthorised by the charity's governing document, as well as concerns around managing conflicts of interest in relation to any trustee payments.
The charity is also currently operating with an insufficient number of trustees.
The inquiry will examine the following charity regulatory issues:
- Whether the trustees are complying with their legal duties, with particular regard to their accounting and reporting responsibilities; their compliance with the charity's governing document; and the extent of any unauthorised trustee personal benefit.
- The extent to which any failings or weaknesses identified in the administration of the charity by the inquiry are a result of misconduct and/or mismanagement by the trustees.
The Commission may extend the scope of the inquiry if additional regulatory issues emerge.
It is the Commission's policy, after it has concluded an inquiry, to publish a report detailing the issues examined, any action taken, and the inquiry's outcomes.
