Regulator uncovers financial mismanagement at charity

The Charity Commission has unveiled troubling financial mismanagement at Mountain of Fire and Miracles Ministries International, a charity that promotes Christianity through a network of branches across the UK. The inquiry commenced following identified concerns over financial operations, including alleged misappropriation of charity funds, indicating that former and current trustees lacked vital oversight and control.

Key findings from the inquiry have shown that the charity's trustees could not adequately manage over 100 bank accounts maintained by various branches. As a consequence, charity funds were exposed to significant risk, spanning the organisation’s vast network. To rectify the serious governance concerns raised, the Commission appointed an interim manager in 2019 to support the remaining trustees in establishing essential financial controls.

The complex structure of the charity has been cited as a contributing factor to its financial issues, evolving from a few branches into a sprawling organisation of over 90 locations without a corresponding enhancement in governance. Branches operated independently, creating individual bank accounts without central oversight and failing to report their income promptly. This lack of coordination led to inaccuracies in financial reporting and substantial risk exposure for charitable funds.

The inquiry uncovered alarming decisions made by branch offices, such as property acquisitions undertaken without the knowledge or approval of trustees. This resulted in significant financial losses, including instances where branches occupied properties without necessary planning permissions, ultimately leading to legal ramifications with local councils. Furthermore, the trustees' negligence in regularising employment contracts resulted in costly settlements due to employment disputes.

In response to these findings, the Charity Commission acted decisively, freezing the organisation's assets to avert further loss. An interim manager was appointed to instate robust financial controls and enhance governance structures. The complexity of the reform process and ensuing legal challenges prolonged the interim manager’s tenure until their discharge in September 2024.

After the comprehensive reforms were completed, the Commission issued an order for the charity to adhere to a regulatory action plan focused on governance and policy enhancements. The Commission is now satisfied that the trustees have adhered to the action plan.

Amy Spiller, Head of Investigations at the Charity Commission highlighted that "the rapid growth of a charity comes with correspondingly larger potential risks, as our inquiry clearly shows." She noted that the trustees' fundamental failure to maintain financial controls placed donor funds at severe risk across the network. With the intervention of the Commission and the interim manager, Spiller observed that the trustees could implement essential reforms, allowing the charity to operate effectively and concentrate on fulfilling its charitable objectives.

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