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Charity Commission launches another inquiry into Muslim charity

Charity Commission launches another inquiry into Muslim charity

Categories: Latest News

Wednesday September 03 2014

The voluntary sector publication, Third Sector, and Civil Society Media report on the Charity Commission’s decision to open an inquiry into the Muslim charity Ummah Welfare Foundation (UWF). The UWF is not to be confused with the similar named British Muslim charity, Ummah Welfare Trust.

In a press release last Thursday, the Charity Commission announced its decision stating thr inquiry had been opened on 6 August.

The inquiry follows the Commission’s compliance visit to the charity in June last year to investigate the late submission of the charity’s accounts and to inspect its account books and records. The watchdog reports that it consequently identified concerns about the charity’s governance and financial management and provided advice and guidance to meet the regulator’s standards.

A second compliance visit was made in May 2014 at which the Commission concluded that the UWF had failed to implement the advice provided by the Commission.

The inquiry is now expected to assess trustees’ financial management, administration and governance of the charity; the decision-making of the charity trustees; and whether the trustees have “complied with” and “fulfilled their duties and responsibilities” under charity law.

The inquiry will examine in particular the trustees’ failure to implement the advice provided on governance including due diligence and monitoring procedures, the management of conflicts of interests and financial controls in place.

Moreover, the inquiry will look at the charity’s financial record keeping, its failure to “adequately account for cash withdrawals, transfers and the proper end use of funds” as well as “its failure to submit annual accounts for the financial year ending 31 July 2013”.

Using its temporary and protective powers under section 76 of the Charities Act 2011, the Commission has further frozen the charity’s bank account and suspended one of the charity’s two trustees.

The announcement of an inquiry into UWF follows a series of inquiries launched by the regulator into Muslim charities including Muslim Aid, Islamic Education and Research Academy, Children in Deen, and Al Fatiha Global.

It is noteworthy that the Charity Commission’s approach to monitoring Muslim charities has received criticisms from the head of the charity chief executives body ACEVO, Sir Stephen Bubb, who was expected to hold a meeting with the Commission to raise concerns about ‘a perception of bias’ and the apparent disproportionate targeting of Muslim charities.  

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