Parc (Essex): Money unaccounted for at failed children's charity

Essex County Council said it was co-operating with the Charity Commission's investigation into Parc (Essex)

Tens of thousands of pounds cannot be accounted for following the collapse of a children's charity in Essex, the BBC can reveal.

The money was given to Parc (Essex) by Essex County Council (ECC) to provide respite care for families.

But it has emerged at least £64,000 cannot be matched with services the money was intended for.

Parc said it has been sharing its financial data with the county council.

The council said it was alerted to concerns back in February 2022 and conducted an investigation.

On 16 May at a meeting with the council, Parc provided its accounts. More than a month later, on 20 June, the council announced its main contract with the charity had been terminated.

A letter sent to parents and staff the next day from the trustees and current acting chief executive Chris McCann disclosed a "counting anomaly" had been uncovered but did not provide further details.

What is Parc (Essex)?

• Based at Great Notley Country Park near Braintree, Parc (Essex) provided a range of services to look after children with additional needs to provide respite for their families and carers

• Last month parents learned the charity had shut its doors and its telephone line told callers "all services are now cancelled for the foreseeable future"

• According to its website, it has supported some 500 families in the form of after school, holiday, Saturday and youth clubs

• The young people in its care were described as being among the most behaviourally challenging and vulnerable

Documents seen by the BBC show that in the 2021-22 financial year to January, Parc received more than £80,000 under a stream known as Inclusion Funding.

But only about £16,000 of this money could be matched with records of the number of children attending sessions and staffing hours.

It is understood Parc now owes the county council the balance but there is no evidence the money was misappropriated or any suggestion of wrongdoing.

The Charity Commission is investigating after concerns were raised by the council.

The county council provided grants via the Inclusion Fund and another pot of money, known as Short Breaks funding, which accounted for the bulk of its spending on Parc

The former acting chief executive Friederike Walter told the BBC that, at the time she left, all sessions funded were being delivered.

"Every month Essex County Council insisted on a monthly report, highlighting all sessions which took place," she said. "If they had felt at any point that not enough sessions were being held, they would have highlighted that but they did not."

Ms Walter added that "during my time all records were accurate" and that as the chief executive her role was to focus on the operational running of the charity and that the financial overview and decision-making was handled by the trustees and the accountants.

The county council provided grants via the Inclusion Fund and another pot of money, known as Short Breaks funding, which accounted for the bulk of its spending on Parc.

PARC has three unpaid trustees, 65 employees and eight volunteers.

The chair of the trustees is Janet Perry, who was appointed in January 2019.

She also chairs the governing body of Colchester Royal Grammar School and is the strategic head of performance and resources for the Essex Police, Fire and Crime Commissioner (PFCC).

An Essex County Council spokesman said it was "first alerted to concerns raised in February 2022. An investigation was undertaken which included a compliance visit and several discussions with PARC Trustees and operational managers.

"Parc shared their accounts with their accountant in attendance at a meeting with ECC on 16 May 2022.

"ECC reported its concerns to the Charity Commission on 18 May 2022".

A spokesman for Parc said: "Trustees and operational managers have openly and transparently shared their financial accounts, management accounts and budget forecasts with ECC over the last few months, as we will with the Charity Commission.

"We are working collaboratively with ECC to help where we can to ensure the best outcome for service users."

The Charity Commission said: "We have an ongoing regulatory compliance case involving Parc, to examine concerns about its governance and financial management."