An international poverty relief charity has been issued a warning by the Charity Commission for failing to keep proper minutes and to correctly manage a conflict of interest.
Penny Appeal received an official warning from the regulator for failing to keep trustee minutes, not acting in the best interest of the charity and failing to manage a perceived conflict of interest regarding its relationship with its major supplier.
The warning, which was issued in September, told the charity to “ensure contracts with third parties are reviewed well in advance of their expiry date” and confirm that the decisions made are “in the charity’s best interests”.
The regulator also required the charity to “ensure conflicts of interest, including perceived conflicts of interest, are identified and managed”.
The charity said in a statement: “The board of trustees of Penny Appeal are committed to addressing the findings of the Charity Commission.
“We can confirm that the current board of trustees have already ensured that the three findings have already been substantially addressed and corrective actions put in place to ensure Penny Appeal operates to the highest standards of corporate governance.
“The board of trustees regret that these issues ever arose in the past but are committed to building a stronger organisation which provides the highest levels of accountability and transparency.”
The charity said a board-appointed audit, finance and risk committee had overseen comprehensive and robust procurement, tendering and contracting policies and procedures.
It also committed to completing all the regulator’s requirements by the 19 November deadline.
A Charity Commission spokesperson said: “Following a regulatory compliance case into Penny Appeal, we issued the charity an official warning on 29 September.
“We continue to engage with the trustees of Penny Appeal to assess whether appropriate steps are being taken to address concerns and recommended actions.”
The commission said the charity responded by the deadline.
Penny Appeal provides poverty relief across Asia, the Middle East and Africa, with dedicated programmes to help the “poor and needy”.
Its latest accounts, covering the year ending 31 December 2022, show its total income was £23m and its total expenditure was £22m.