The Charity Commission has recently released the results of its investigation into The Cowesby Trust, uncovering financial misconduct by the sole remaining trustee, Mr. Morgan-Williams.
The Cowesby Trust, established in 1963, has the noble purpose of providing relief to individuals living in Cowesby and neighboring parishes who are in need, in hardship, or in distress. However, the Commission’s inquiry has revealed serious breaches of trust by Mr. Morgan-Williams, the trustee responsible for managing the charity’s affairs.
Misuse of Funds
During the investigation, it was discovered that Mr. Morgan-Williams had spent a staggering £110,000 of charity funds on renovating his personal cottage. Although he claimed that these expenditures were covered by three loans from the charity, the inquiry found no evidence to support this, nor any involvement from other decision-makers. The Commission concluded that this unsecured investment was not in the best interests of the charity.
Furthermore, the trustee spent an additional £69,500 on two antique Mulberry longcase clocks, which he dubiously labeled as an ‘investment’ for the charity. However, these clocks were found to be displayed in his own home, raising concerns about their intended purpose. Similar to the previous instance, no justifications were provided to prove that this decision served the charity’s interests.
Lack of Benefit to Beneficiaries
Another disheartening revelation from the inquiry was the fact that The Cowesby Trust had failed to utilize any of its funds between 2009 and 2016 to further its objectives or benefit any beneficiaries. This failure highlights a significant oversight on the part of Mr. Morgan-Williams and calls into question his commitment to fulfilling the charity’s purpose.
Commission’s Response
The Charity Commission swiftly intervened upon discovering the misuse of funds. Amy Spiller, the Head of Investigations at the Commission, underscored the crucial role of trustees in prioritizing the best interests of their charities. She stated that any breach of this trust would prompt intervention from the Commission. Fortunately, the inquiry successfully identified the amount of misappropriated funds, which have now been fully repaid.
To prevent such incidents in the future, the Commission urges all trustees to exercise caution when making decisions that impact their charities. They offer a comprehensive 5-minute guide on their website, specifically designed to assist trustees in making valid and beneficial choices for their organizations. It is highly recommended that all charity managers familiarize themselves with this guide to ensure they act in accordance with their charity’s best interests.
Commission’s Actions
In response to the misconduct, the Commission took decisive actions. In October 2016, they directed the two banks associated with The Cowesby Trust to seek approval from the regulator before engaging in any transactions involving the charity’s property. This measure aimed to safeguard the charity’s assets from further misappropriation.
Subsequently, in June 2017, the Commission suspended Mr. Morgan-Williams and appointed two additional trustees to oversee the organization’s operations. This step aimed to restore proper governance and prevent any continuation of the trustee’s misconduct.
In August 2018, the Commission went a step further and disqualified Mr. Morgan-Williams from holding any trustee position or senior management role in charities for a period of 10 years. This action reflects the severity of his actions and sends a clear message about the consequences of breaching the trust placed in trustees.
Restoration and Repayment
In April 2020, The Cowesby Trust finally received a total settlement of £136,039.79 from Mr. Morgan-Williams. This amount fully covered the outstanding sums he owed to the charity. Additionally, the two Mulberry clocks, which were initially purchased as part of the mismanaged funds, were sold. The proceeds from the clock sales have been earmarked to support the charity’s beneficiaries, providing a small silver lining in this unfortunate situation.
Source: Gov[Dot]UK
