The Charity Commission is investigating a religious charity over concerns about irregularities in its financial management including cheques bouncing from its bank account.
Zlotchiv, which operates out of east London, had been subject to a compliance case but the commission has escalated its investigation to a full statutory inquiry after the charity’s two trustees failed to “meaningfully engage and cooperate” with its concerns.
The charity registered in February 2019 and awards grants for the advancement of Jewish faith and education, as well as relief for those in need.
Its annual income was recorded at totalling just over £723,000, in its most recent accounts for the year to May 2023, which were filed on time.
Commission concerned over additional financial irregularities
In addition to the regulator’s concerns over the bounced cheques from the charity’s bank account, it is also investigating a series of payments, which it says appear to be “related party payments”, that were not disclosed by the charity in its annual returns.
The statutory 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 Zlotchiv’s financial management, including its viability, the extent of any related party transactions, and unauthorised trustee personal benefit.
It will also investigate the trustees’ compliance with the charity’s governing document, as well as the extent to which any failings or weaknesses identified in the administration of the charity are caused by misconduct or mismanagement by the trustees.
The scope of the inquiry may be extended if additional regulatory concerns emerge during the commission’s investigation.
Civil Society has asked Zlotchiv for comment.
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