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Charities with “weak internal financial controls” are leaving themselves vulnerable to fraud, the Charity Commissioner has warned after the former JSPCA CEO was jailed for embezzling £405k.
John Mills CBE, who is responsible for operating the charities register and monitoring their conduct, said that there was "much... charities can, and should, learn" from the case of Stephen Coleman.
Over ten years, the ex-serviceman dipped into Animals' Shelter donations to award himself and colleagues artificial pay rises, as well as funding an extravagant lifestyle of costly cars, five-star holidays, and an extensive gun collection.
Ahead of his sentencing to seven years behind bars last week, the Royal Court heard how Coleman's actions nearly spelt the end for the 152-year-old charity.
Video: Coleman leaving the Royal Court after sentencing last week.
The Charities Commissioner has since warned others not to leave themselves open to such abuses.
"Charities exist to do good. Governors of registered charities have a duty to ensure that their resources are used for providing public benefit. This case offers an opportunity for all of them to reflect upon, and review where necessary, their financial controls, procedures and practices," Mr Mills explained.
"Having weak internal financial controls and procedures can make charities susceptible to insider fraud. By strengthening these procedures and processes, governors can reduce the risk of this happening. If anyone has any concerns in this regard, I invite them to contact the team at my office for advice and support."
For more information, visit the Charity Commissioner's website here.
Pictured top: John Mills CBE, Jersey's Charity Commissioner.
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