Ummah Welfare Foundation under investigation
The Charity Commission opened a statutory inquiry into Ummah Welfare Foundation (registered charity number 1150190) on 6 August 2014.
Please note: This press release concerns the Ummah Welfare Foundation (registered charity number 1150190). It is NOT related to the Amanat Charity Trust (registered charity number 1000851), which operates under the working name Ummah Welfare Trust.
The charity has objects to relieve poverty and sickness and advance education throughout the world by the provision of services.
The Charity Commission carried out a compliance visit to the charity in June 2013, which included an inspection of the charity’s books and records. During the visit, concerns were identified regarding the governance and financial management of the charity, which the regulator provided specific advice and guidance on. The Commission carried out a second follow up compliance visit in May 2014 to ensure assurances made were kept and assess what improvements had been made in the administration of the charity. The trustees had not implemented the advice provided by the regulator.
The inquiry will examine:
The financial management, administration and governance of the charity by the trustees
The decision-making of the charity trustees
Whether or not the trustees have complied with and fulfilled their duties and responsibilities as trustees under charity law
In particular this includes:
The trustees’ failure to implement the advice and guidance provided regarding the governance of the charity including due diligence and monitoring procedures and trustee decision-making
The management of conflicts of interest and financial controls in place at the charity
Financial record keeping and the failure to adequately account for cash withdrawals, transfers and the proper end use of funds
The trustees’ failure to submit annual accounts for the financial year ending 31 July 2013
In order to protect the charity’s funds, the Commission has used its temporary and protective powers under section 76 of the Charities Act 2011 to freeze the charity’s bank account and suspend one of the trustees.
The purpose of an inquiry is to examine issues in greater detail and investigate and establish the facts so that the regulator can decide what action needs to be taken to resolve the serious concerns, if necessary using its legal powers to do so.
It is the Commission’s policy, after it has concluded an inquiry, to publish a report detailing what issues the inquiry looked at, what actions were undertaken as part of the inquiry and what the outcomes were. Reports of previous inquiries by the Commission are available on its website.
The charity’s details can be viewed on the Commission’s online charity search tool.
For press enquiries contact the press office.
Notes to Editors
- The Charity Commission is the independent regulator of charities in England and Wales.
- Our mission is to be the independent registrar and regulator of charities in England and Wales, acting in the public’s interest, to ensure that:
- charities know what they have to do
- the public know what charities do
- charities are held to account
- Section 46 of the Charities Act 2011 gives the Charity Commission the power to institute inquiries. The opening of an inquiry gives the Commission access to a range of protective and remedial powers.
- The Commission’s decision to announce the opening of a statutory inquiry is based on whether it is in the public interest to do so and with consideration of our objective to increase public trust and confidence in charities. Read more information on the Commission’s policy and factors taken into account when deciding to issue a press release.