Trustees were found to have mismanaged a Leeds charity when they repeatedly failed to file accounts.
The Charity Commission today said it uncovered evidence of inadequate financial governance at the Al-Hassan Education Centre, based in Shepherds Lane.
It said trustees were not able to fully account for the charity’s funds in relation to cash collected and spent following Friday prayers.
Other failings included not holding an annual general meeting since July 2013, not filing accounting information for 2011/12 and 2012/13, and having no policy for loans and money laundering.
Carl Mehta, head of investigations at the commission, said: “The trustees in this case failed to take basic steps to ensure that the charity’s funds were able to be accounted for.
“This is simply not acceptable and I expect the trustees to take measures to speedily correct this.”
The inquiry considered that the trustees had not acted in the best interests of the charity, put its funds at risk and concluded there was mismanagement and misconduct by the trustees.
It issued an order in November instructing the trustees to regularise governance, submit outstanding information and review policies.
Education Centre chairman and trustee Akhlaq Mir told the YEP: “There are no further issues now. Whatever they have requested, we have provided. There were a few things we didn’t know about the charity regulations. We’ve now done everything asked.”
The centre was opened in March 1999 and became a registered charity in November that year. Its activities include supplementary classes, a youth sports club, a luncheon club and a funeral service.