Probed housing charity fails to file accounts

by Mario Christodoulou

More from this author

09 Jul 2009

  • Comments

The accounts relating to a charity for the homeless that is being investigated by the housing regulator for alleged misuse of public funds within the organisation are now 159 days overdue.

The Novas Scarman Group, is being probed by government watchdog the Tenant Services Authority, which could seize the charity's property.

The authority hired BDO Stoy Hayward to look into the possible misuse of public funds and financial mismanagement.

In a statement the TSA reserved its right to take over properties owned by the charity and hand them on to another landlord. 'Subject to representations, [the TSA] can use its statutory power to direct the NSG to transfer its land to another registered social landlord,' a spokeswoman said. 'However, no decisions have yet been made.'

The late accounts relate to what was The Scarman Trust for 2007/08, in the year before it became part of the Novas Scarman Group early last year. The Charity Commission said it was in the process of removing the trust from its register. An executive summary of the BDO investigation has been circulated on the internet since late June after being leaked to online whistleblower website WikiLeaks.

The report, dated 15 December, 2008, alleges that the company's financial woes are in part the result of financial mismanagement, nepotism and cronyism within the NSG.

NSG rejected the allegations saying in a statement posted on its website: 'This one-sided document contains a number of allegations that have been strenuously disputed by NSG.'

NSG attributed its financial difficulties to plummeting property prices and credit issues. It offered an apology for what it described as 'failure to manage some elements of our finances'.

NSG did not respond to questions by Accountancy Age. BDO said that the report was not leaked by the firm and it was trying to establish how the report got into the public domain. NSG will meet with the TSA later this month.

NSG was formed following the merging of three bodies - The Novas Group, PATH and The Scarman Trust - in early 2008.

The 159-day default period comes on top of a ten-month grace term extended to all registered charities following the end of the financial year.

Visitor comments

blog comments powered by Disqus
display:none

Add your comment

We won't publish your address


By submitting a comment you agree to abide by our Terms & Conditions

Your comment will be moderated before publication

Submit
  • Send

conservatoire-for-dance-and-drama

Finance-Director-part-time

Conservatoire for Dance and Drama, London, Permanent, Part Time, £60,000 pro rata

 

 

Newsletters

Get the latest financial news sent directly to your inbox

  • Best Practice
  • Business
  • Daily Newsletter
  • Essentials

Careers

Search for jobs
Click to search our database of all the latest accountancy roles

Create a profile
Click to set up your profile and let the best recruiters find you

Jobs by email
Sign up to receive regular updates with the latest roles suitable for you

Briefings

budget-management

Why budgeting fails: One management system is not enough

If budgeting is to have any value at all, it needs a radical overhaul. In today's dynamic marketplace, budgeting can no longer serve as a company's only management system; it must integrate with and support dedicated strategy management systems, process improvement systems, and the like. In this paper, Professor Peter Horvath and Dr Ralf Sauter present what's wrong with the current approach to budgeting and how to fix it.

cchcover

iXBRL: Taking stock. Looking forward

In this white paper CCH provide checklists to help accountants and finance professionals both in practice and in business examine these issues and make plans. Also includes a case study of a large commercial organisation working through the first year of mandatory iXBRL filing.