The 2010 minutes of The Lennoxtown Initiative for the meeting are listed on the NHSGGC FOI website and demonstrates that:
1. The Directors of The Lennoxtown Initiative knew they were going into a state of insolvency
2. The most important aspect for the directors of the charity appears to be the payments to Celtic under the Celtic Service Level Agreement.
3. Every expense is being jettisoned overboard in order to meet the Celtic SLA payments including terminating leases on premises and workers contracts.
So after the Celtic Service Level Agreement had only got going in 2008, two years later it was in trouble.
This was the summary in The Lennoxtown Initiative’s annual report for the year ending 31 March 2011:
At end of March 2011 the charity is insolvent by £60,721.
Solution: See the last paragraph above. The Directors of the charity and East Dunbartonshire Council (EDC) prop it up through a cobbled together agreement for the council to stand as banker for the charity’s debts in what was an insolvent charity.
The ‘trustees (the directors) consider it appropriate to prepare the financial statements on a going concern basis’. So the parties which signed up for Celtic SLA, had no more money to fund it fully say the charity is viable. There was no independent assessment.
The charity continued trading insolvent while paying Celtic for another 3 years until 2014.
What about The Office of Scottish Charity Regulator?
Where has the OSCR been in these years of insolvency and no annual reports being submitted in the last 2 years?
What does the trend of Income and Expense above look like?
To even the most naive financially illiterate person the charity was spending funds it did not have.
Did the regulator step in? No
The Scottish public has to ask why it is being let down by the regulator not just for one year but six. The charity is still active on the company house website in 2016 and has not been shutdown.
Public trust in the running of charities, especially ones with heavy involvement of public authorities, needs to be maintained. The OSCR has not done so in the case of The Lennoxtown Initiative.