Regulator and National Audit Office investigate city of culture charity
Coventry City of Culture Trust is being scrutinised by both the Charity Commission and the National Audit Office after it went bust.
The NAO told the BBC that “preliminary enquiries” are being made into the charity’s finances after the organisation entered administration in February.
Andy Street said on Twitter that: “Whether it’s the NAO, Charity Commission, or City Council, there must be a proper investigation into what has gone wrong”.
Coventry City of Culture Trust received more than £20m in funding in total and auditors signed off the charity as a going concern in July 2022. The charity recorded a £1.5m deficit in 2021/22 and needed to repay £3.3m to creditors in the year ahead, according to its most recent accounts.
The initial inquiry will aim to establish the sources involved in funding the trust and the extent of them, the NAO said. The Heritage Lottery Fund told the BBC it allocated £3m to the trust whilst it also received more than £6.5m from a combination of Coventry City Council, the West Midlands Combined Authority and Warwickshire County Council.
Documents made public as part of the city council’s investigations into the collapse revealed £3.3m was committed to the trust by the government as of September to deliver its legacy programme.
The trust also expected £2.5m of lottery funding as part of a £15.8m total predicted income it had budgeted for the legacy phase.
Spirit of 2012 gave £75,000 to Coventry City of Culture Trust in October 2022 and the Paul Hamlyn Foundation gave £250,000 in December 2022.
In October the charity received an emergency £1m loan from the council after admitting it was struggling with cash flow.
A spokesperson for the Charity Commission said: “We understand the concern that the administration of the charity is causing people in Coventry and Warwickshire.
“The Charity Commission’s compliance case into the charity remains ongoing, and we are liaising with the charity and other stakeholders as we consider our next steps.”
