A building preservation charity committed “serious regulatory” blunders, including misuse of funds and assets, the Charity Commission said today.

The charity, which operates in the UK and Ukraine, is the subject of a statutory inquiry by the regulator.

A statement by the Commission today said an initial look at the charity’s accounts identified possible “abuse” by the trustees for “significant private gain”. It also raised concerns that it was not operating for the public benefit and that trustees failed to manage conflicts of interest.

As a result, the regulator used its protective powers to prevent the trustees and their bankers from parting with property or charity funds – including investments and a grade two listed building.

The inquiry will also examine financial controls at the charity – including management and application of charity funds, property and assets and whether there has been any misconduct or mismanagement. If so, the regulator said it will consider “remedial regulatory action” if necessary.

The charity’s administration and governance will also be under scrutiny – particularly whether the trustees have “acted prudently” and “exercised reasonable care in respect to the day-to-day running of the charity”, the regulator said.  

The regulator will also examine whether the trustees have fulfilled their duties under charity law.

The charity’s income has decline dramatically over the last three years – from £112,641 in 2013, to £15,968 in 2014 and just £3,622 last year.

But spending has remained high, despite the income drop – with outgoings of £112,355 last year.

The charity was approached by Civil Society News for comment but did not respond by the time of going to press.