According to the Guardian, senior directors at the Kids Company charity warned the trustees on numerous occasions that reserves needed to be built up. However, this advice was not taken and two finance directors at the charity left in less than three years because of it.
Two finance directors at Kids Company left in less than three years because of their frustrations that no one – from the board of trustees, led by the BBC’s Alan Yentob, to the chief executive, Camila Batmanghelidjh – heeded warnings of the need to build a financial cushion to protect the charity from catastrophe, the Guardian understands.
In the Guardian’s analysis of five years of the charity’s accounts, whilst the latter received millions of pounds in Government funding, they never built any reserves because they spent almost all of their income every year. Between 2009 and 2013 the charity’s income increased by 77% from £13m to £23m, however, during the same period its outgoings also increased by 72%. This increase in outgoings also included senior management pay increases.
To read the full article, please The Guardian website.