The regulator is investigating Flic-Flac Gymnastics Club, in Chorley, Lancashire, amid concerns about payments made to trustees.
The charity was set up to encourage young people to take part in gymnastics.
The charity was already under investigation as part of the Commission’s ‘double defaulters’ class inquiry, after it was identified as persistently late in filing its accounting information. Generally, this is regarded as mismanagement and/or misconduct in the administration of the charity.
Subsequently, further regulatory concerns emerged and on 23 July 2024 a separate inquiry was opened.
The Commission has identified concerns about payments to trustees that may be unauthorised by the charity’s governing document, as well as concerns around managing conflicts of interest in relation to any trustee payments.
The charity is also currently operating with an insufficient number of trustees.
The inquiry will examine the following charity regulatory issues:
- Whether the trustees are complying with their legal duties, with particular regard to their accounting and reporting responsibilities; their compliance with the charity’s governing document; and the extent of any unauthorised trustee personal benefit.
- The extent to which any failings or weaknesses identified in the administration of the charity by the inquiry are a result of misconduct and/or mismanagement by the trustees.
The Commission may extend the scope of the inquiry if additional regulatory issues emerge.
It is the Commission’s policy, after it has concluded an inquiry, to publish a report detailing the issues examined, any action taken, and the inquiry’s outcomes.
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.
- Since 25 July 2022, Flic-Flac Gymnastics Club has been subject of the Charity Commission’s ‘double defaulter’ class inquiry. The double defaulter inquiry targets charities that have failed to submit accounting information within statutory deadlines for two or more years. Through this proactive work, the Charity Commission has ensured £282 million of charity income is accounted for.
- On 23 July 2024, the Commission opened a separate 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.
- The charity’s public record on the Register of Charities
denotes its accounts are overdue and it is subject to formal inquiry. - The Charity Commission has a range of guidance available for trustees on issues such as managing charity finances and managing conflicts of interest.
