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A social housing provider has been issued an official warning by the charity sector regulator over “serious governance issues”.
The Charity Commission delivered the warning this week to a trustee of Expectations (UK), a Birmingham charity that is registered as a provider of social housing.
Expectations came under scrutiny from the commission in August 2017 over concerns about its governance and viability.
It has been given the official warning for failing to comply with two action plans issued by the Charity Commission to rectify the problems.
The Charity Commission said it is “concerned by serious governance issues within the charity and has advised of the need to strengthen the board to bring additional skills and expertise into the charity”.
Marc Blanchette, the trustee of the charity who was handed the warning, had been told to publish a business plan proving Expectations’ financial viability to provide its service and manage debts.
But the Charity Commission said that plan was not provided “despite several requests” until it took steps to impose an official warning.
And it expressed concerns over an emergency loan from a company “whose director is an associate of a former trustee”.
The decision to accept the loan was not documented, the commission said, meaning it is not clear whether any conflict of interest was identified and managed.
Expectations has also breached its legal duty to file an annual return and accounts for 2015/16 and 2016/17 and gave the Charity Commission “inconsistent” information compared to that given to another regulator, according to the warning.
It is not clear if this other regulator is the Regulator of Social Housing, which has been contacted for comment.
The Charity Commission said Expectations has taken steps to address its governance concerns and appointed five new trustees to its board.
The official warning is intended to make the charity aware that a breach, misconduct or mismanagement has taken place and provide advice on resolving the issue.
Tracy Howarth, head of regulatory compliance at the Charity Commission, said: “We want to see all charities thrive, so I welcome the arrival of new trustees at Expectations UK.
“This should signal a watershed moment for the charity, and I expect the new board to take swift steps towards tightening its governance and management.
“Charity trustees should at all times consider the needs of their beneficiaries, and be driven by their charitable purpose and mission in everything they do.
“The regulator will be engaging with the new trustees, as well as Mr Blanchette, as part of its ongoing case. Any further breaches of charity law or regulatory advice would be of serious concern to the commission.”
Inside Housing has made attempts to contact Expectations (UK) and Mr Blanchette.