CONCERNS have been raised about a Cardiff care home charity chaired by a city councillor after it submitted its accounts late this year.
Cartref Limited was behind two Cartref Care Home sites that had to close due to the effects of the Covid-19 pandemic and seeing a significant fall in residents.
A Charity Commission report on Cartref, which submitted its annual return and accounts 75 days late, makes reference to a number of “matters of concern” raised by an independent examiner.
These concerns, according to the report, led the independent examiner to believe that accounting records were not being kept and that accounts do not accord with those records.
Joel Williams, who is the chair of Cartref and a Conservative councillor at Cardiff Council, said the charity was supported by an administrator who acted as a bookkeeper.
However trustees were unable to obtain records from this individual “despite extensive efforts”.
Trustees have been “treading carefully in light of the administrator’s personal circumstances”, according to the chair, and “legal advisers have agreed with that approach”.
Mr Williams went on to add that trustees are aware of their responsibilities including their duty to report to the Charity Commission when necessary.
The independent examiner’s report to the trustees of Cartref states: “During the year there was a failure to provide information to me in order to prepare the annual accounts and complete the independent examination.
“This is noted in the trustees’ report.
“Access to the company’s accounting software, payroll records, sales ledger records, and purchase invoices that I usually have was not available so the accounts were prepared and the examination undertaken based on the bank statements and completion statements for the property sales.
“If the records become available these can be examined and any adjustments can be made in the following year’s accounts.
“Until the records are inspected I cannot confirm whether the accounting records were kept as required by section 386 of the 2006 act or whether the accounts accord with those records. I understand that the trustees are still pursuing the records.”
In March 2023 it was reported that both Cartref homes, one in Station Road in Llanishen and the other in Lake Road East in Roath, could close due to a fall in the number of residents in their care.
Both homes were eventually closed and sold after various options for the future of the sites were considered.
Mr Williams said: “Due to the pandemic and national challenges affecting the care sector Cartref Care Home had run at a loss for several months.
“Over these months the trustees took professional advice and considered various options resulting in our decision to consult on the closure of both homes.
“The consultation was conducted with the welfare of those affected being the priority – after further professional advice and consideration the trustees made the decision to close the homes before further operational debts were incurred.
“The financial and service demand challenges facing Cartref were the driver for the consultation.
“The trustees undertook to ensure all staff were paid their full redundancy payments.
“The other key priority at that time was for the residents to be assisted to find alternative accommodation.
“Like many circumstances emanating from the Covid pandemic the closure of Cartref Care Homes was a sad outcome that no-one would have anticipated.
“Once closed the homes were marketed and sold enabling the trustees to fully discharge the associated debts.
“The remaining proceeds from the sales are invested and Cartref will continue as a grant-making organisation in line with our charitable aims and objectives.
“The trustees have and continue to receive professional advice.”
A report of the trustees for 2024 on the Charity Commission’s website states: “The trustees were unable to obtain some of the accounting records to prepare and examine the accounts this year.
“These records relate to the time of the home closures. This is explained in the independent examiner’s report.
“This matter is still under investigation and the trustees hope that the records will become available soon and they can then be examined and any accounting amendments required can be made as an adjustment to the following year’s accounts.”
Mr Williams added in his statement: “Following the closure of both residential homes Cartref was supported by an administrator who acted as a bookkeeper for the charity.
“The trustees were unable to obtain records from this individual despite extensive efforts by the trustees.
“The trustees are receiving legal advice in this regard and the trustees are following this advice.
“The trustees are aware of our responsibilities as trustees, including our duty to report to the Charity Commission when necessary, and take these duties very seriously.
“However the trustees have been treading carefully in light of the administrator’s personal circumstances and the legal advisers have agreed with that approach.”
