Statutory inquiry report: Growth for Adolescents and Providing Support (GAPS NI)

Statutory inquiry report: Growth for Adolescents and Providing Support (GAPS NI) March 2018

Report on the closure of a statutory inquiry, instituted by the Charity Commission for Northern Ireland under section 22 of the Charities Act (Northern Ireland) 2008, into the charity Growth for Adolescents and Providing Support (GAPS NI). Contents Section 1: Introduction 3 The inquiry report The charity Background to the inquiry Section 2: Executive summary 7 Section 3: Statutory inquiry and findings 10 Section 4: Conclusion 21 Issues for other charities Issues for funders, stakeholders and the general public 2

Section 1: Introduction The inquiry report 1.1 The Charity Commission for Northern Ireland (the Commission) categorises its investigations as self-regulatory, regulatory and statutory depending on the risk posed to the charity beneficiaries, the charity and the sector. These terms are indicative of potential outcomes whereby a charity may be encouraged to self-regulate, may be issued regulatory guidance or where, due to the severity of risk assessed, there may be a requirement for the use of statutory powers assigned to the Commission by virtue of the Charities Act (Northern Ireland) 2008 (the Act). More information on the different types of investigation can be found in the Concerns and decisions sections of the Commission s website: www.charitycommissionni.org.uk 1.2 The Commission instituted a statutory inquiry into the charity Growth for Adolescents and Providing Support (GAPS NI) on 26 June 2017. The Commission s inquiry was focused on the governance and financial control of the charity. Commissioners broadened the scope of the inquiry on 18 September 2017 to include an incorporated body of the same name registered at Companies House and of the same registered address. 1.3 While there may be ongoing litigation or investigations by other statutory bodies relating to actions or individuals in this case, the statutory inquiry has now been closed as the charities are themselves closing or in the process of being wound up. 1.4 Under section 22(6)(a) of the Act, the Commission considers it appropriate to publish this report, which includes public notification of the closure of the statutory inquiry and that the charities themselves have ceased to operate and will be marked as removed from the Commission s register of charities in due course. The charities 1.5 The Commission considers that the charity trustees have, by error or by design, created more than one legal entity in the name of GAPS NI, 3

an unincorporated association established in 2010 and governed by a constitution and a company incorporated in 2011 governed by memorandum and articles of association. A third governing document was also submitted on behalf of GAPS NI to Land & Property Services (LPS) in 2014. Despite there being more than one legal entity and three governing documents in existence, GAPS NI was run as one charity with a single bank account. As such, for the purpose of this report GAPS NI will hereinafter be referred to as the charity. The different governing documents which existed for this charity are explained in the following chart: GAPS NI the Unincorporated body Documented by its constitution as having been established in 2010 Registered with the Commission on 30 September 2016 using the 2010 constitution Charity Point of Contact - Mr Damien Harte GAPS NI the Incorporated Body Incorporated on 18 February 2011 Achieved charitable tax status from HMRC with effect from 21 March 2012 Same address and bank account as registered charity Director - Mr Damien Harte GAPS NI the body granted rates relief by LPS NI Constitution for unincorporated body of same name and address but different wording than registered charity submitted in 2014 for rates exemption. Rates exemption worth 25K per annum on facilities at Centrepoint Lurgan occupied by charities referred to as GAPS NI Applicant for rates exemption - Mr Damien Harte (Chariperson) Rates exemption removed by LPS on 6 November 2017, with effect from 27 October 2017,following CCNI Statutory Inquiry 1.6 The known charity trustees registered with the Commission are: Mr Damien Harte Ms Shelley Treanor Mr Anthony Creaney The charity s main activities appear to have centred exclusively on the use of indoor sports facilities, primarily football, at Centrepoint, Lurgan. 4

1.7 The charity s purposes/objectives include the following: Promoting the fostering of positive mental health and to improve the emotional wellbeing of young people/adolescents residing in the area of benefit. Advancing the education of the public (community) into, and raising awareness of, the causes and effects of youth wellbeing issues and into matters relating to the nature of negative adolescent behaviour. Promoting the use of sporting activity, which will foster and improve positive mental health and emotional wellbeing of young people/adolescents residing in the area of benefit. Background to the inquiry 1.8 Concerns in relation to GAPS NI were first raised with the Commission on 21 March 2017. The concerned party wishes to retain their anonymity, which is guaranteed by the Commission subject to legal direction of the Charity Tribunal or other Courts. The concerns related specifically to the source and application of charitable funds, including: Misappropriation of monies Potential inappropriate private benefit to charity trustees or other parties Sources of funds received by the charity were not transparent. Following further investigations and concerns, the Commission s inquiry also considered suspicions regarding money laundering. 1.9 On 11 April 2017 the Commission wrote to charity trustees and requested details of the sources of charity income, minutes of their meetings since 2014, charity accounts, bank statements and a reconciliation of expenditure against the bank statements. 1.10 On 4 May 2017 documents were delivered by hand to Commission staff by Mr Damien Harte, who identified himself as the Chairperson of GAPS NI. Mr Harte was also recorded as the GAPS NI point of contact with the Commission and was responsible for the submission of the charity s registration application. 1.11 Following review of the documents received from Mr Harte, the Commission noted that the charity trustees had failed to provide details of 5

all sources of charity income or to reconcile charity expenditure against the charity bank account statements as requested. It was also noted that letters provided to support large donations, including one donation of 10,000, from different parties, were facsimiles of each other. Minutes of meetings were scant in detail with errors duplicated from one meeting to the next. The Commission considered that the documents may have been fabricated retrospectively and/or were fraudulent. 1.12 On 24 May 2017 the Commission wrote to charity trustees and advised them that the requested reconciliation of transactions remained outstanding and invited them to make a declaration confirming that the information already provided was complete and accurate to the best of their knowledge and belief. The outstanding material and the declaration were requested to be provided to the Commission by 8 June 2017. 1.13 At the same time the Commission issued a section 23 order to the Bank of Ireland requesting information pertaining to the GAPS NI charity bank account including copies of specific records of lodgements into the account so that transactions could be verified against information received from the charity. 1.14 On 26 May 2017 Commission staff received a telephone call from Mr Damien Harte who stated that the omission of previously requested information was his fault and that this would be provided by him along with the requested declaration from charity trustees as soon as possible. 1.15 Mr Harte failed to provide the requested materials and a Statutory Inquiry was instituted by the Commissioners on 26 June 2017. 1.16 The issues considered by the Commissioners in their determination to institute a statutory inquiry included: The failure of charity trustees to comply with reasonable requests for information from the Commission such as the reconciliation of transactions. That false and misleading information may have been submitted to the Commission and in particular the source of a donation to the charity of 10,000. That considerable funds donated to the charity may not have been lodged in the charity bank account. 6

Section 2: Executive Summary 2.1 Following the receipt of serious concerns, including money laundering and other criminal activity, the Commission was quick to act in its investigation of the charity. While the Commission is not in a position to investigate or confirm allegations of criminal activity, (that being a matter for the PSNI) it must act swiftly to protect charitable property where there is evidence of risk. 2.2 The conduct of charity trustees in their submissions, mismanagement of the charity and lack of co-operation with the Commission demonstrated sufficient risk for the Commission to act using its most serious powers. 2.3 Through this inquiry the Commission has found that: Documents and details supplied to the Commission by Mr Damien Harte were fraudulent. This included the presentation of a letter purporting to be from a woman regarding her late husband s legacy, which was a donation of 10,000 to the charity. The Commission found that the purported author of this letter had died over 17 years previously and her late husband had not actually died at the time of the donation (see para 3.5). This transaction was accompanied by fabricated minutes, where the noted minute taker (Ms Shelley Treanor, who is Mr Damien Harte s mother) was the true donor of the 10,000 to the charity. No satisfactory explanation was received from any charity trustee as to why these attempts were made to cover the true financial donation to the charity. At least 51,359 of cash noted as received by the charity cannot be traced through the charity s accounts. This loss to the charity has been reported to the police. Documents supplied to other funders, principally by Mr Damien Harte, were fraudulent, including documents submitted in 2017 under the name of a former charity trustee who had died in 2016. 7

Mr Damien Harte presented false information to the charity Making a Change MAC (NI) to secure 4,500 for his own remuneration as a charity employee (which is prohibited by the charity s governing documents) and withheld this information from minutes of meetings of the charity, and from his fellow charity trustees. Documents presented to the Commission by Mr Damien Harte were fabricated to detail a false representation of the charity board including the involvement of at least one other party as a charity trustee without their knowledge or consent. Charity trustees failed to maintain accurate records of meetings or decisions of the charity. The Commission has received evidence that the minutes of meetings received from Mr Damien Harte all appear to have been created long after the meetings were held. Charity trustees failed to demonstrate proper financial control. Mr Damien Harte and Ms Shelley Treanor failed to comply with orders of the Commission. No activities by the charity were evidenced by the Commission as furthering the charity s purposes. 2.4 Summary of actions taken and findings of the Commission: The Commission suspended and then removed Mr Damien Harte as a charity trustee of GAPS NI having found him responsible for mismanagement and misconduct in his actions. Mr Harte is now disqualified from acting as a charity trustee throughout the UK. The Commission suspended Mr Anthony Creaney as a charity trustee of GAPS NI on the basis of his involvement in mismanagement and misconduct in relation to the charity. Mr Creaney subsequently resigned from his role. The Commission appointed an Interim Manager (Deloitte (NI) Ltd) to manage the property and affairs of the charity who then decided to close the charity, having passed the minimal remaining charity assets to another charity. 8

Ms Treanor failed to comply with orders/directions, but as evidence held by the Commission indicated that she had not been acting as a charity trustee, the charities were no longer operating and as a proportionate regulator, it was determined that no further action was to be taken against her. As the charity has no further assets available to pursue its charitable objectives and it has been estimated by the Interim Manager that at least 51,359 of charitable funds may have been misapplied, the Commission has reported the matter to the Police Service of Northern Ireland for their action. A review of the charity s bank statements identified that a total of 184,685 had been paid by the charities in respect of rent and management fees since August 2014. The Commission referred the approximately 25,000 per annum rates exemption enjoyed by GAPS NI (who were in occupation of a property in Centrepoint, Lurgan from May 2014) to LPS on 1 November 2017. Exemption from rates was removed by LPS on 6 November 2017 with effect from 27 October 2017. 2.5 How the Commission used its powers: The Commission immediately restricted transactions of the charity on the institution of the statutory inquiry. The Commission directed charity trustees to attend its premises and give evidence under oath regarding the management of the charity. The Commission directed the charity s bank to monitor the transactions of the charity and report any suspicious activity to the Commission. The Commission suspended and/or removed charity trustees whom it found to be responsible for or privy to misconduct/mismanagement. The Commission appointed an Interim Manager to safeguard charity property. 9

2.6 The Commission is content that its actions in this case were proportionate. This charity was not representative of the many well governed charities in Northern Ireland who deliver an excellent service to their beneficiaries. The public, and the charity sector, should be encouraged that the regulator will act to use its powers to protect charity assets. Section 3: Detailed statutory inquiry findings Information gathering 3.1 During the course of this inquiry the Commission availed of its statutory powers under sections 22(3) and 23 of the Charities Act (Northern Ireland) 2008 to compel parties to provide information, copies of documents and/or to give evidence to the Commission in person on 17 separate occasions. Mr Damien Harte and his mother Ms Shelley Treanor, who were both listed as charity trustees of GAPS NI, are the only parties who failed to meet with the lawful obligations of these directions/orders of the Commission. Mr Harte failed to provide access to original documents including employment records which should have been held by the charity in line with its legal responsibilities. Ms Treanor failed to meet with Commission staff or provide responses under statutory declaration. 3.2 The Commission also gathered information and documents from other sources such as funders and shared information with other statutory bodies including the Police Service of Northern Ireland, Her Majesty s Revenue & Customs, Land & Property Services (NI) and the Department for Communities. Submission of false and misleading information to the Commission 3.3 Any person that knowingly or recklessly provides the Commission with information which is false or misleading in a material particular may be guilty of an offence by virtue of section 25 of the Charities Act (Northern Ireland) 2008. If that person is involved in the management of a charity then this may exacerbate any risk perceived by the Commission in relation to the proper application of charity property and may attract the use of statutory powers such as those detailed in this report. The Commission may also seek to prosecute individuals in some cases. 10

Submission of documents and verbal testimony 3.4 During the course of this inquiry the majority of documents received from the charity which were of questioned provenance or content were received directly from Mr Damien Harte who had been acting as the Commission s designated point of contact for GAPS NI and held the office of Chairperson on the charity s Executive Committee. The documents of most concern purported to be minutes of meetings held by the charity between 2014 and 2017 and letters from individual donors. 3.5 The purported minutes of meetings contained textual errors which were replicated from one meeting to the next (regardless as to which charity trustee was recorded as secretary) and all were signed by Mr Damien Harte as Chairperson. In one instance a discussion was minuted of the receipt of an alleged legacy of 10,000 from Mr Anthony Creaney s late father (and former GAPS NI charity trustee), Mr James Creaney. This meeting was recorded as having occurred during June 2016 and correspondence was cited in the discussion from a woman identified as the widow of Mr James Creaney who bestowed the legacy. However, Commission enquiries established that Mr James Creaney was still alive at the time of this alleged charity meeting (he died during August of that year) and the alleged author of the letter had in fact died some seventeen years previously. The letter was also produced to the Commission by Mr Damien Harte and was noted to be of the same style and format as a second letter from another unrelated alleged donor. Mr Damien Harte acknowledged what he described as errors in the minutes in a meeting with the Commission on 28 July 2017, and claimed to have no knowledge of the origins of the letter from the late Mrs Creaney, other than to say that he found it in some papers in the office. Mr Harte insisted the meeting had taken place, but explained that the legacy was in fact 1,000 and that the 10,000 donation was actually made by his own mother Ms Shelley Treanor, despite the fact that she was recorded as secretary and minute taker to this particular meeting and thus would have been incorrectly recording her own donation. 3.6 The Commission has received evidence that the minutes of meetings received from Mr Damien Harte and referenced above all appear to have been created long after the meetings were held. 3.7 The Commission audio recorded testimony from witnesses including Mr Damien Harte and Mr Anthony Creaney on twelve separate occasions. 11

Mr Anthony Creaney met more frequently and voluntarily with the Commission than his fellow charity trustees. Ms Shelley Treanor failed to comply with Commission Section 22(3) directions to provide evidence either in person or in writing under statutory declaration. A significant amount of verbal testimony provided by the charity trustees was deemed to be as inaccurate and misleading as their written submissions and was a factor in further actions detailed below. Use of powers 3.8 The Commission s use of powers in this inquiry other than Section 22(3) Directions are detailed below. Order No: Date of Order Recipient Section of Charities Act Ord0140 30 October 2017 Mr Damien Harte S33(2) Ord0139 27 October 2017 Ord0138 27 October 2017 Ord0135 17 October 2017 Ord0134 25 September 2017 Ord0133 25 September 2017 Ord0132 Deloitte (NI) Ltd Mr Anthony Creaney LUSH Ltd Growth for Adolescents & Providing Support (company number NI606227) Growth for Adolescents & Providing Support (company number NI606227) 18 September 2017 Mr Damien Harte S33(1)(vii) S33(1)(i) S23(1) S36(2) S33(1)(vi) S33(1)(i) Ord0128 11 August 2017 Mr Damien Harte S23(1) Action Order removing Mr Damien Harte Order appointing interim manager Order to suspend Mr Anthony Creaney Order to provide information and documentation Order to give specific directions for protection of charity Order to restrict transactions Order to suspend Mr Damien Harte Order to provide information and documentation 12

Ord0127 29 June 2017 Bank of Ireland UK S36(2) Ord0126 29 June 2017 Mr Damien Harte S36(2) Ord0125 29 June 2017 Mr Anthony Creaney S36(2) Ord0124 29 June 2017 Mr Paul Carvill S36(2) Ord0123 29 June 2017 Ms Shelley Treanor S36(2) Ord0121 29 June 2017 Mr Damien Harte S33(1)(vi) Ord0120 29 June 2017 Mr Paul Carvill S33(1)(vi) Ord0119 29 June 2017 Mr Anthony Creaney S33(1)(vi) Ord0118 29 June 2017 Ms Shelley Treanor S33(1)(vi) Ord0113 25 May 2017 Bank of Ireland UK S23(1) Order to give specific directions for protection of charity Order to give specific directions for protection of charity Order to give specific directions for protection of charity Order to give specific directions for protection of charity Order to give specific directions for protection of charity Order to restrict transactions Order to restrict transactions Order to restrict transactions Order to restrict transactions Order to provide information and documentation Suspension of Mr Damien Harte (section 33(1)(i)) and notice of intention to remove him as a charity trustee (section 33(2)) 3.9 The Commission s grounds for this action on 18 September 2017 included the following. That Mr Damien Harte was responsible for and privy to a failure to keep records of meetings and decision making within the charity and then compiled false records retrospectively to present to the Commission in an attempt to conceal his mismanagement and to 13

mislead the Commission regarding the true governance of the charity in an action considered to amount to misconduct. That Mr Damien Harte was responsible for the submission of false and misleading information to the Commission in the form of fabricated correspondence from a deceased third party falsely attributing 10,000 of charity funding to a former and also now deceased charity trustee Mr James Creaney (father to the existing charity trustee Mr Anthony Creaney). This action was considered by the Commission to amount to misconduct. That Mr Damien Harte was responsible for the submission of false and misleading information to the Commission regarding the role and status of Mr Paul Carvill, claiming both that he was a charity trustee and office holder for GAPS NI when the latter vehemently denied this and has evidenced his absence abroad or at other commitments for a significant number of charity meetings documented to the Commission by Mr Harte. This false claim that Mr Carvill was a charity trustee and participated in Board meetings and decision making is considered to amount to an act of misconduct. That Mr Damien Harte was responsible for and privy to the failure to safeguard charity property and to maintain appropriate records, in his mismanagement of Mr Anthony Creaney (charity trustee of GAPS NI) allowing him to withdraw cash unsupervised from charity funds generated from cash sales and facilities hire as a salary whilst he was prohibited from receiving such remuneration by virtue of the charity s governing documents. The Commission s enquiries at the time suggested that at least 16,000 was paid in cash to one or more volunteers including Mr Creaney during the financial period 2014-2015 and during August 2015 to August 2016. That Mr Damien Harte presented false information to the charity Making a Change MAC (NI) to secure 4,500 for his own remuneration as a charity employee (which is prohibited by the charity s governing documents) and withheld this information from minutes of meetings of the charity, and from his fellow charity trustees. This was considered as further evidence of both mismanagement and misconduct on his part. 14

That Mr Damien Harte was responsible for the failure to comply with an order of the Commission. On 11 August 2017 the Commission ordered Mr Harte by virtue of section 23 of the Charities Act (Northern Ireland) 2008 to provide the original version of the signed trustee declaration as submitted electronically to the Commission on 6 April 2016 by him and any and all records relating to the employment and remuneration of staff employed by the charity from 1 January 2014. The failure to comply with the Order amounts to misconduct on the part of Mr Harte. Removal of Mr Damien Harte as a charity trustee (section 33(2)) 3.10 On 30 October 2017 the Commission ordered the removal of Mr Damien Harte as a charity trustee, officer and agent of GAPS NI following our consideration of representations received. The grounds for this action were as those detailed at paragraph 3.4 above. Suspension of Mr Anthony Creaney (section 33(1)(i)) and appointment of an interim manager (section 33(1)(vii)) 3.11 On 27 October 2017 the Commission suspended Mr Anthony Creaney as a charity trustee, officer and agent of GAPS NI and appointed Deloitte (NI) Ltd as Interim Manager to manage the affairs and property of the charity and report back to the Commission on the financial position making recommendations as to future actions. The Commission s grounds for this action included the following. That Mr Anthony Creaney was privy to a failure to keep records of meetings and decision making within the charity and then submitted false and misleading information under affirmation in audio recorded meetings with Commission staff about the conduct of those charity meetings, associated decisions made and those in attendance. It was considered that the submission of false and misleading information amounts to misconduct. That Mr Anthony Creaney was privy to the submission of false and misleading information to funders of the charity s including correspondence purporting to have emanated from his late father Mr James Creaney (the letter being dated after his death) which resulted in the obtaining of at least 1,500 from LUSH Ltd. It was considered that this amounts to misconduct. 15

That Mr Anthony Creaney was responsible for and privy to the failure to safeguard charity property and to maintain appropriate records, in his inappropriate receipt of remuneration as an employee of the charity, despite being prohibited by charity rules from receiving same while serving as a charity trustee. Mr Creaney admitted taking cash from income generated from the hiring of the charity s 4G football facility, failing to keep adequate records, and failing to have fellow charity trustees audit these payments or lodgements at the bank. It was considered that this amounts to misconduct in the misapplication of charity property and mismanagement. That Mr Anthony Creaney was responsible for the failure to safeguard charity property in relation to a 3,972.50 deficiency in lodgements to the charity s bank account between 1 August 2014 and 30 September 2014 against takings identified by him to the Commission from sales of drinks and hiring of the charity s facilities. This period was selected as a random sample to compare potential income generated against actual lodgements at the charity s bank. Mr Creaney estimated total takings of 11,919 for that 2 month period on examination of records created by him and presented during a meeting with the Commission. He was subsequently unable to explain why only 7,946.50 was lodged at the charity s bank account over the same period. Additionally, the Commission noted that between June 2016 and October 2017 the charities received approximately 17,000 from donations and funding over and above proceeds which should have been generated from its sales of drinks and facility hire of the 4G football pitches and dance studio. Mr Creaney denies taking any remuneration from the charity between August 2016 and October 2017, but was unable to explain why the balance at the charity s bank account was now less than 1,000 and what had happened to the 17,000 or any surplus generated by facility hire and sales. No audit trail exists to provide any explanation of the disparity within the account. It was considered that this amounts to mismanagement of the charity s finances and potentially misconduct in the misapplication of charity property. 3.12 Following the suspension of Mr Harte, Mr Anthony Creaney appeared to be the only charity trustee acting for the charity. The Commission therefore determined that the appointment of an Interim Manager to the exclusion of trustees was necessary to safeguard existing 16

and future property of the charity. The Interim Manager was charged with reporting on the true financial position of the charity, taking immediate action in relation to debtors and creditors and making recommendations as to any future disposal or governance arrangements. 3.13 Mr Anthony Creaney resigned as a charity trustee of GAPS NI less than one week after the Commission suspended him from acting as a charity trustee. Interim Manager s Report 3.14 Deloitte (NI) Ltd s report to the Commission was received within four weeks of their appointment and included the following points. No records of any board meetings had been kept in relation to meetings held by the charity. As such, no corroborating evidence was identified for any important decisions made since the Company commenced trading in August 2014. A review of the charity s financial information identified that the cash books kept by the charity to record the income generated from the hiring of the 4G football pitches, sale of soft drinks and hiring of the dance studio were poorly maintained, at times with little or no detail regarding funds received. No records explaining the charity s expenditure were provided or identified. There was an apparent lack of segregation of duties as Mr Anthony Creaney was able to control the recording of income generated, collect the cash and was noted as responsible for the storing and lodging of same. The lack of internal controls gave rise to a potential for error and fraud. When combined with the lack of accurate and reconciled record keeping, this failed to safeguard the charity s property. Personal payments were made to both Anthony Creaney and Damien Harte from the charity s bank account totalling 2,128.58, contrary to the Charity s governing document. 17

There was insufficient information available to calculate the total quantum of cash funds paid to volunteers. A reconciliation of the charity s cash book against the income lodged in the charity s bank account has identified a deficiency in lodgements of 51,359. However, as the charity s cash book has not been adequately maintained, the figure presented cannot be verified and, consequently, it would be reasonable to assume that the deficiency is greater than the amount stated. A review of the charity s bank statements identified that a total of 184,685 had been paid by the charity in respect of rent and management fees since August 2014 for the lease of Centrepoint. On review of the financial position, it was identified that the charity was unable to meet the financial obligations of the leases solely on the income generated from their core activities. Consequently, following discussions with Centrepoint Leisure Limited s legal representatives, the keys to the premises were returned to the managing agents, Kingham Property Specialists, Lurgan, on 7 November 2017. Having reviewed the charity s financial affairs, it was apparent that the charity is unable to continue as a going concern as they are unable to meet their financial obligations as they fall due solely on the income generated from their core activities, being the rental of the 4G football pitches, adjoining dance studio and sale of soft drinks. From the information provided by the charity and the Interim Manager s report, the charity has been meeting these obligations to date through core income being supplemented by other donations and grants, the source of which cannot be verified and as such are deemed to be unreliable in nature. In addition to the inability to continue to trade, the charity has not been operating according to their charitable purposes as there have been incidences of cash payments being made to trustees and volunteers, contrary to the charity s governing document, and a disparity in the income generated as per the charity s cash book to that lodged to the charity s bank account. No evidence has been made available to suggest that any alternative conclusion could be drawn. 18

3.15 The Interim Manager determined that the charity was not in a position to continue as a going concern and should be closed. 3.16 The Interim Manager reported additionally that on inspection of the charity premises at Centrepoint the only remaining assets of the charity were five children s bikes and associated equipment for Balanceability training. The bikes were funded by the Big Lottery Fund to support the charity s Balanceability classes. The Interim Manager contacted the funder and they agreed that the bikes could be donated to another charity offering such classes. Consequently another charity was offered and accepted the donation of the bikes and associated equipment. Comments received from named parties 3.17 The Commission shared this report with named parties. 3.18 The Commission notes that Mr Creaney accepts that there was mismanagement but denies being responsible for any misappropriation of funds. 3.19 A response was received on behalf of Mr Harte stating that the report was inaccurate, but no detail was provided. Section 4: Conclusion 4.1 The Commission s inquiry into the charity known as GAPS NI is now concluded following the determination that the charity should close and confirmation that its remaining assets have been passed to another charity. Issues for other charities 4.2 The Commission has published guidance entitled Running your charity, which provides support for trustees on key aspects of running a charity effectively. It is available in the Charity essentials section of www.charitycommissionni.org.uk. Sections 3 and 5 of the guidance have particular relevance here in relation to the requirements for charity trustees: to know their roles and responsibilities to maintain and retain proper financial records. 19

Issues for funders, stakeholders and the general public 4.3 One of the Commission s objectives is to increase the public trust and confidence in charities, and stresses that conduct as described in this report is not representative of the charity sector in Northern Ireland. It is, however, vital that funders, charity stakeholders and the general public do question any documents or statements made to them where they have concerns about the manner in which they are delivered or the truthfulness of their content. Charity trustees should expect funders, stakeholders and the general public to question their applications for funding, their application of charity property and their governance from time to time and those questions should be answered in a timely and open manner to ensure confidence. 4.4 The Commission s guidance on raising concerns about charities may be found at the following link: http://www.charitycommissionni.org.uk/concerns-anddecisions/concerns-about-charities-guidance/ 4.5 This report concludes the Commission s statutory inquiry into GAPS NI. 20

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