The Charity Commission has launched a statutory inquiry into Devon Freewheelers which transports blood and medical equipment by motorbike to NHS sites, amid concerns over its accounts.
The charity had been placed into the regulator’s double defaulter class inquiry after failing to submit its accounts for its financial years ending 2020 and 2021.
This latest probe has launched after its overdue accounts were submitted and the Commission found “a number of related party transactions and potential irregularities in the charity’s accounts when compared to information drawn from the charity’s bank statements”.
In addition, the Commission is “concerned about conflicts of interest and whether the charity is operating in line with its objects”.
Under investigation are the charity’s financial management, whether unauthorised personal benefit or breach of trust has occurred by any current or previous trustees and whether conflicts of interest have been effectively managed.
It will also look at whether there has been any misconduct or mismanagement by the current or previous trustees.
We’ve opened an inquiry into Devon Freewheelers after inconsistencies were identified in its accounts.
— Charity Commission (@ChtyCommission) November 8, 2023
We also have concerns relating to conflicts of interest and whether the charity is operating in line with its objects.
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Health regulator concerns
The Charity Commission’s decision to launch a statutory inquiry is the latest problem to beset the Honiton, Devon, based charity, after its patient transport service was formally suspended by the Care Quality Commission in July 2021.
The health regulator’s head of hospital inspection Cath Campbell said at the time that it believed “people may be exposed to the risk of harm if we did not take urgent action”.
This included patients being offered care and treatment outside of the scope of their registration, including giving oxygen by staff without the correct training. The charity decided to cancel its registration to provide patient transport services, the health regulator added.
In the same year it was reported by local media that it had lost its contract with the Royal Devon and Exeter Hospital and North Devon District Hospital relating to services directly commissioned by the hospitals.
Devon Freewheelers accounts show its income plummeted from £1.06m to £164,170 between the financial years ending 31 October 2020 and 2021. Over the same period its spending fell from £852,660 to £250,840. This was the first year that its expenditure exceeded its income.
Its accounts for the year to 31 October 2022 also show its spending, of £238,650, was greater than its income, of £161,980.
Devon Freewheelers has been contacted for comment.
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