THE Charity Commission has begun a formal investigation into a North Yorkshire-based charity after identifying a number of serious regulatory concerns about its operation and financial management.

The commission – the independent regulator of charities in England and Wales – said there was a disparity between the level of funds flowing through the bank account of The Cowesby Trust and those disclosed in its annual returns.

It said it had established that “large sums of money” had been paid from the charity to an unconnected company and to the charity’s sole trustee, Hugh Morgan-Williams.

The Cowesby Trust – which takes its name from the village of Cowesby, about four miles north of Thirsk – was formed 53 years ago and describes itself as making grants to people facing accommodation hardship.

The Charity Commission said it had received information about the Trust and as a result had already analysed the charity’s bank accounts.

These had now been frozen in order to prevent the trustee and the charity’s bankers from parting with any of the charity’s property without permission of the Commission.

It said The Cowesby Trust was also operating in breach of its governing documents which stated there should be at least three trustees.

“This gives rise to serious concerns about the legitimacy of the trustee decision making and whether charitable property has [been] misapplied for non-charitable purposes”, it said.

According to the charity’s last annual return, filed in October this year, for the financial year ending December 31 2015 it had an income of £2,721, but spent £8,425.

The inquiry will examine financial controls, management and application of charity funds, property and assets and also its administration, governance and management.

It will also examine whether the charity is operating for the public benefit, whether there has been any misconduct and/or mismanagement and whether remedial regulatory action is necessary.

The statutory inquiry could take up to a year and following its conclusion a report will be published detailing any outcomes.

A spokesman for the Commission said it could force the removal of a trustee in order that they be replaced by someone else.

A reporter contacted Mr Morgan-Williams by phone at his home in Cowesby, but no response was received.

  • The website used by the charity appeared to be no longer working when The Northern Echo tried to access it, while e-mail messages also bounced back.