The above is an extract from The Lennoxtown Initiative annual account for year ending 31 March 2011. As can be seen in the second paragraph:
‘the company’s current liabilities exceeded its total assets by £60,721.’
In the second paragraph it says:
‘Included in current liabilities is an amount of £242,526 due to East Dunbartonshire Council’.
The third paragraph acknowledges the 3 operational staff being made redundant from 1 April 2011.
And the third paragraph also states:
‘The company are continuing to meet the costs of the service level agreement with Celtic FC and other running costs with the support of East Dunbartonshire Council’.
Here we have laid out East Dunbartonshire’s whole exposure to The Lennoxtown Initiative charity’s debt largely to do with payments to the Celtic SLA.
Yet the Celtic SLA was paid to Celtic for year ending 31 March 2011. It’s in the same annual report with a payment of £48,671.
It wasn’t only in the last year of the Celtic SLA that East Dunbartonshire Council was subsidising the Celtic SLA it was for financial years ending 31 March 2011, 2012 and 2013 and the last payment reported in the Sunday Post for September 2013 in the next financial year ending in 2014.
Here we have a Scottish public authority, East Dunbartonshire allowing a debt of £242,526 to build up then paying for 4 years a discredited Service Level Agreement called the Celtic SLA for an Insolvent charity. The 4 payments from financial years ending 31 March 2011, 2012, 2013 and Sept 2013 being £48,671, £49,706, £49,706 and £68,377.20. That’s £216,460 which shouldn’t have been paid because the charity should have been put into administration.
THE ONLY REASON THAT THE CHARITY HAS BEEN KEPT ON A RESPIRATOR APPEARS TO HAVE BEEN TO KEEP PAYING THE CELTIC SLA.
Adding the remaining Celtic SLA payments to the charity’s outstanding debt gives a total bill of £458,986, almost 1/2 a million, that East Dunbartonshire Council ratepayers were up for with a large amount of that to do with the Celtic SLA.
Apart from the misuse of funds there are other consecutive corporate mis-demeanours to be considered by authorities:
A misuse of ratepayers funds
Trading while insolvent
Abuse of the use of a charity
That’s a Treble of regulators: Audit Scotland, Financial Conduct Authority and OSCR. No wonder Audit Scotland is taking so long.
Verification from Office of Scottish Charity Regulator of The Lennoxtown Initiative’s insolvency in 2011
The OSCR kindly provides an ability to search on charities using their charity number. What do we find when we search The Lennoxtown Initiative’s number: SC031958
In tabular form:
Note the trouble, the charity had, in making Annual Returns. Another sign of financial instability and mis-management.
From above table, there is no expenditure under 2014 stated, however the Celtic SLA payment for year ending 2014 was £68,377.20 so EDC must have made as stated in the Sunday Post that payment directly. Which of the others were made directly?
What a mess Audit Scotland has to plough through. No wonder it has taken 9 months and counting.