Regulator investigates charity over financial controls
Source: gov.uk (2025-02-19)

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 (https://register-of-charities.charitycommission.gov.uk/en/charity-search/-/charity-details/5134415/governing-document), 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.

ENDS

Notes to editors

The Charity Commission is the independent, non-ministerial government department that registers and regulates charities in England and Wales. Its ambition is to be an expert regulator that is fair, balanced, and independent so that charity can thrive. This ambition will help to create and sustain an environment where charities further build public trust and ultimately fulfil their essential role in enhancing lives and strengthening society. Find out more: About us - The Charity Commission - GOV.UK (https://www.gov.uk/government/organisations/charity-commission/about)

On 6 January 2025, the Charity Commission opened a statutory inquiry into the charity under section 46 of the Charities Act 2011 as a result of its regulatory concerns that there is or has been misconduct and/or mismanagement in the administration of the charity.

A statutory inquiry is a legal power enabling the Commission to formally investigate matters of regulatory concern within a charity and to use protective powers for the benefit of the charity and its beneficiaries, assets, or reputation.

An inquiry will investigate and establish the facts of the case so that the Commission can determine the extent of any misconduct and/or mismanagement; the extent of the risk to the charity, its work, property, beneficiaries, employees or volunteers; and decide what action is needed to resolve the concerns.

Press office

Email xxx@xxx.xx (mailto:xxx@xxx.xx)

Out of hours press office contact number: xx-xxxx-xxxx