A CHARITY in the North-East could be facing an investigation after a complaint was made about a trustee and the financial management of its funds.

Saltburn Community and Arts Association has been contacted by the Charity Commission following the complaint last month as tension rises between members.

Concern has been raised in the town that the charity is in severe financial difficulties and members were unable to get answers as the group was forced to adjourn last month’s annual general meeting as there was insufficient number of people present to make it quorate.

Board member Peter Neal accepted that the charity had endured some financial difficulties but denied it was bankrupt.

The local businessman said: “We have been working through some issues and we have worked through them successfully.

"The board is working together to try and change the constitution as we have too many members and we are finding it difficult to get everyone in one place at the same time.

“The charity is solvent, we have had a difficult year, sometimes charities do have a difficult time, and the country is in deep recession so getting funding is difficult.

“We have just taken on a large building and have invested in that but if you ask our accountants they will be able to confirm that we are solvent.”

Last year, the group took over the running of old Saltburn Junior School and transformed it into a community arts facility.

The organisation also runs numerous events throughout the town as well as running Saltburn Theatre.

Mr Neal added: “Community groups are well known for their differences and the change from one generation to another can sometimes prove difficult.

“However, everyone concerned with the charity has its best interests at heart but there has been some difficulties.”

The Northern Echo:
Board member Peter Neal

Last year, the charity was fined for failing to submit its accounts on time and as of March 2012 had more than £50,000 in its accounts.

A Charity Commission spokeswoman confirmed that they were awaiting further information before any decision could be made relating to action.

She said: “The Commission received a preliminary complaint about a trustee of the charity and related financial management of charitable funds. We are currently awaiting further information which we will assess to determine whether we will take any regulatory action.”