The Charity Commission have launched a statutory inquiry into Zlotchiv over concerns about its financial controls.
It appears that irregularities in the charity’s financial management include a series of bounced cheques from the charity’s bank account alongside payments that appear to be related party payments but were not disclosed by the charity in its annual returns.
A statutory inquiry allows the Charity Commission to formally investigate and use protective powers for benefiting the charity and its beneficiaries, assets, or reputation. Once the extent of risk has been determined, the Commission will decide what action is needed.
The inquiry emphasises the importance of charities maintaining good financial controls. It is also important to respond and cooperate with the Commission in the event of queries to avoid a simple compliance matter escalating to a statutory inquiry.
