Charities investigated over poor financial management
Concerns including the use of blank cheques have led to new inquiries into two charities funding educational institutes in Israel.
The Charity Commission has launched two inquiries into The Telz Talmudical Academy and Talmud Torah Trust and The Gevurath Ari Torah Academy Trust. The regulator’s concerns relate to financial management and controls within the charities, including the use of signed blank cheques.
The charities, which share trustees, were registered in 1987 and 1991 respectively, and raise funds for faith institutes in Israel.
The regulator is concerned about the charities’ financial management after discovering that one trustee, who lives in Israel, is in possession of the charities’ cheque books containing a number of blank cheques pre-signed by the trustees who live in the UK.
The charities also operate heavily in cash, which the Commission advises against, overseas and do not maintain adequate records to supplement this. The trustees could not provide sufficient evidence that they were monitoring or verifying the end use of the charities’ funds overseas.
These significant concerns required further scrutiny, so the Charity Commission opened inquiries into the two charities on 17 July 2023. The inquiries will examine the following regulatory issues:
- the administration, governance, and management of the charities by the trustees
- the financial controls and management of the charities
- the conduct of the trustees
The Commission may extend the scope of the inquiries if additional regulatory issues emerge.
Following the opening of the inquiries, the Commission exercised its powers under the Charities Act 2011 and made an order to restrict the trustees from entering into certain transactions. This order prohibits the trustees from carrying out several financial transactions, which includes withdrawing charitable funds in cash and pre-signing cheques.
It is the Commission’s policy to publish a report upon concluding an inquiry to detail its findings, conclusions, and any regulatory action taken.
Notes to Editors
- The Charity Commission is the independent, non-ministerial government department that registers and regulates charities in England and Wales. Its purpose is to ensure charity can thrive and inspire trust so that people can improve lives and strengthen society.
- The inquiries were opened on 17 July 2023, under section 46 of the Charities Act 2011.
- Section 76(3)(f) of the Charities Act 2011 gives the Commission power to restrict the transactions which may be entered into, or the nature or amount of the payments which may be made, in the administration of a charity without the approval of the Commission.
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