A COLCHESTER charity is being assessed by the Charity Commission after accounts revealed it loaned more than £200,000 to its own chief executive… despite past concerns being raised about conflicts of interest by regulators.
According to Community 360’s trustees’ report and audited financial statements for the year ending March 2023, the charity loaned its chief executive Tracy Rudling – who has helped run the charity since 1992 – a total of £206,341.
The situation is complicated further by the charity paying a further £65,571 to Godden and Rudling Building Services – a construction company owned by Mrs Rudling’s husband, Gordon Rudling – in the same financial year.
According to the documents, these payments involved renting office space from Mrs Rudling and her husband, and were agreed by the board.
A section of the document read: “During the year, the charity traded with Godden and Rudling Building Services, a related party by virtue of one of the partners being the husband of the CEO, who provided building services as requested by the board.
“During the year the charity rented office space from the CEO and her husband Gordon Rudling with agreement from the board.”
The Charity Commission has now confirmed it is looking into the charity’s loaning of money to its own chief executive.
A spokesman said: “We are assessing concerns raised with us relating to Community360’s decision to grant a loan to its CEO and are reviewing evidence available to us.”
According to information on Companies House, Godden and Rudling Building Services was incorporated in 2002, with Mr Rudling appointed director alongside Christopher Godden.
Mr Rudling then became a person of significant control in June 2021.
Payments to Godden and Rudling Building Services and Gordon Rudling are then shown in the charity’s accounts for the following year, when a combined total of £63,447 was paid to Mr Rudling, and Godden and Rudling Building Services.
The Charity Commission confirmed to the Gazette it had previously engaged with Community 360 about conflicts of interest and related party transactions, but received assurances the payments were reasonable.
No findings have yet been made, the Charity Commission confirmed.
A spokesman for Colchester Council said it is aware of the allegations and will follow the situation closely.
He said: "We are aware of the recent allegations concerning the CEO of Community360 (C360).
"C360 has provided valuable services to thousands in Colchester and has been a partner to One Colchester and the North East Essex Health and Wellbeing Alliance in supporting residents through the COVID-19 pandemic and beyond.
"We have worked closely with them on various projects, including providing Winter Resilience support, housing assistance, and refugee aid.
“We remain committed to transparency and responsible partnership.
"We will continue to monitor the situation and provide updates if and when necessary.”
A letter signed by the Community 360 chair Elisabeth Feltham and deputy chair Stewart Thomson emphasised no formal investigation was in place.
The letter read: "I write to assure you all, as Chair of Trustees and on behalf of the Board of Trustees, that we are not under investigation by the Charity Commission.
"Where any issues of potential or actual conflict of interest arise in our organisation, we take this matter very seriously.
"Across the organisation we are committed to ensuring that any such instances are both transparently and firmly handled in line with C360 policies and procedures."
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