Regulator intervenes to strengthen governance at international aid charity

Penny Appeal has been subject to extensive regulatory scrutiny resulting in an Official Warning

The Charity Commission has closed its regulatory compliance case into Penny Appeal, and set out its findings and ongoing expectations of the charity’s trustees.

Penny Appeal was set up in 2008 to provide poverty relief, emergency aid and healthcare across Asia and Africa. The charity also works in the UK to help homeless people and women who have experienced domestic abuse.   

The Charity Commission opened a compliance case into Penny Appeal in June 2020 following several complaints and concerns raised about how the charity was being managed. Concerns included failure to manage perceived conflicts of interest, poor record keeping and inadequate management of major supplier contracts. 

The Charity Commission has reviewed evidence supplied by the charity’s trustees and is satisfied that progress has been made to improve the charity’s governance and management. However, it has been made clear to the charity’s trustees that there is still further work to do.  

The Commission’s announcement follows last week’s publication by the Fundraising Regulator, which detailed findings of its investigation into Penny Appeal’s compliance with the Fundraising Code of Practice.

Earlier this year, the Information Commissioner’s Office issued the charity with an Enforcement Order over its marketing activities.

The Charity Commission has now closed its case, setting out its expectation that the charity’s trustees act upon recommendations by all three bodies. 

Official Warning  

The Charity Commission issued an Official Warning on 29 September 2023 after several meetings with the charity’s trustees and an inspection of the charity’s records and financial accounts. It found that the charity failed to maintain proper trustee meeting minutes to record decisions in relation to the purchase of a property, consideration of an unsolicited offer received to buy a property as well as decisions around retaining and redeveloping a property.

The charity failed to review a contract with its major supplier, thereby failing to act in the charity’s best interests. The regulator also found that the charity had failed to manage a perceived conflict of interest relating to its relationship with its major supplier.  

Impact of regulatory intervention 

Through its intervention, the regulator has secured several improvements to the charity’s governance. This includes advising the trustees to appoint a minute taker and to record conflicts of interest, which they have evidenced. The trustees have set dates to review third party contracts, and have appointed an external consultant to review the charity’s existing contracts and advise it on best practice. The charity will also terminate its contract with the major supplier that caused a perceived conflict of interest. 

The trustees have mainly complied with the actions required of them and the Commission notes and welcomes their commitment to complete the outstanding actions promptly. 

The trustees have been advised to make further improvements to the quality of meeting minutes. They must also promptly complete an outstanding review of governance and contractual relationships and arrangements with third party organisations established overseas, which forms part of an internal action plan set by the charity’s solicitors.   

The Commission has now closed its compliance case and is monitoring the charity’s progress. It has informed the charity that any failure to complete the outstanding actions or failure to comply with any action required by the Information Commissioner’s Office and/or the Fundraising Regulator may also result in further regulatory action. 

Tracy Howarth, Assistant Director for Casework at the Charity Commission, said: “Improvements have been made at Penny Appeal after several years of engagement about a series of weaknesses and shortcomings in the charity’s governance.  

“This is a charity which receives significant support and donations from the public – it is extremely important that its governance is fit for purpose.  

“The actions already taken have strengthened how the charity is run, and we are following up on the outstanding actions, which the trustees have assured us will be promptly addressed.”

Roads and pavements funding ‘will help get our city back on track’

Transport Convener: ‘I am working to ensure we continue investing in roads and footpaths’

The City of Edinburgh Council is on track to carry out improvements on the largest area of roads and pavements in one financial year, thanks to £11m of additional capital investment.

The additional investment was agreed in the February 2023 budget.

Around 420,000m² of road and 170,000m² of pavement improvements will be carried out in 2023/24, compared to pre-Covid yearly averages of 225,000m² for roads and 30,000m² for pavements.

Amongst the work completed is the resurfacing of Greendykes Road, along with active travel upgrades, improvements on Waterloo Place and Princes Street and the resurfacing of a large section of the A90.

Projects underway include the London Road placemaking improvement scheme, which will result in pavement improvements such as widening, cycle segregation, new traffic signals and pedestrian crossings and road resurfacing. This is due for completion in March 2024.

Most budgeted capital schemes will have been delivered in the first three quarters of 2023/24. By taking advantage of warmer weather, teams reduced the amount of material being laid in colder conditions and thereby the likelihood of material failure.

Councillor Scott Arthur, Transport and Environment Convener, said:The effect of this additional £11m of capital investment is clear in the numbers – in 2023/24 we’ll improve more square metres of roads and pavements than in any other financial year.

“Of course, concerns around the condition of our roads and pavements remain and are justified, and we’re listening. By significantly increasing the number of improvement schemes we’re working towards a safe, usable network.

“That said, like any other city we continue to work to a tight budget, in the face of increasing labour and material costs. However, this investment, along with prudent planning and delivery of schemes, is helping the situation to improve. The work undertaken in 2023/24 will help get our city back on track, but I am working to ensure we continue investing in roads and footpaths.”

The main focus for the final quarter of 2023/24 will be pavements, with plans to resurface almost 100 footways in residential streets, amounting to more than 86,000m² of coverage.

Capital improvements will also be supplemented by work carried out by the Council’s Roads Operations team, in addition to its role providing day-to-day revenue maintenance. In 2023/24 Roads Operations will deliver improvements to 45,000m² of the city’s roads, bringing the total area covered in 2023/24 to over 460,000m².

This has been aided by the Council’s new Pothole Pro machine, which ensures a higher level of quality control and reliable repairs. This machine has now fixed around 8,000m² of potholed road surfaces.

Find out more about roads and pavements maintenance.

Montgomery Street Park to close for refurbishment

Montgomery Street play park will close on Monday 24 July for improvements.

Friends of the park said: “The city council is installing new equipment and surfacing to make our play park fun, creative and safe. Unfortunately the play park will be unavailable for ten weeks.

“The renovated play park is expected to reopen in October with its improved safety and aesthetics, to welcome children, youngsters and families. Enjoy safe Montgomery Street Park!”

Strengthening the safety net

Action plan to ensure Scottish Welfare Fund reaches those in most need

Improvements to the way crisis support is delivered in Scotland are set out in a plan published yesterday.

The Scottish Welfare Fund provides a vital safety net which has paid out more than £380 million in emergency funds to more than half a million households over the last ten years.

The plan sets out 22 commitments to help the Fund better address unmet need and make decisions more consistent across the country. Actions include a simplified application form, clearer guidance and better promotion to those who may not currently be being reached, including older people.

Improved guidance on referrals to wider services such as debt and welfare advice will also aim to help people with their finances so they can avoid future crisis.  

Social Justice Secretary Shirley-Anne Somerville said: “Ten years on from the introduction of the Scottish Welfare Fund, it is time to make improvements to ensure it continues to provide lifeline support. These actions will help to ensure that no matter where people live, they can access support they are eligible for in their time of need.

“The current financial pressures facing many households and the hardship that brings has shone a spotlight on the need for such emergency funds, and as the independent review of the fund made clear in March, the inadequacy of UK Government welfare has contributed to increased demand.

“The publication of this plan demonstrates the Scottish Government’s dedication to strengthening our social security system and working to best meet the requirements of people in Scotland.”

The Scottish Welfare Fund Action Plan published in June 2023

Getting better: NHS Lothian moved to Stage 2 for paediatric audiology

NHS Lothian will move to Stage 2 of NHS Scotland’s national performance framework for paediatric audiology following improvements.

The health board has made significant progress, completing almost 81% of the recommendations outlined by the British Academy of Audiology (BAA) following an independent review of services in 2021. This includes improvements in governance and culture.

As part of the Stage 2 escalation level, robust measures will remain in place, ensuring that Scottish Government officials continue to provide direct support to NHS Lothian.

Health Secretary Humza Yousaf said: “The de-escalation of NHS Lothian to Stage 2 for paediatric audiology is a positive step forward and highlights the significant progress the board has made towards the BAA’s recommendations.

“I would like to thank all staff at the board for their hard work to implement robust and sustainable changes, to continue to improve the service and to deliver high quality patient care. I want to ensure families across Scotland are assured their child is getting the best possible audiology support.

“We will work closely with and support the board over the coming months as it continues to provide high quality services. A wider Independent review of audiology services in Scotland is on-going and due to report to the Scottish Government this Spring.”

NHS Lothian was moved to escalation Stage 3 in December 2021 on the NHS Board Performance Escalation Framework for Paediatric Audiology.

An independent audit and governance review into the Paediatric Audiology service at NHS Lothian was established following the Scottish Public Services Ombudsman Investigative report into Child A’s audiology care at the health board. Following that publication, the BAA was commissioned by NHS Lothian to help fulfil recommendations from that report.

The decision on a board’s Stage 3 Escalated position sits with the Director General for Health and Social Care.

The BAA report and recommendations is here.

£5 million investment to improve Scotland’s play parks

Play parks across Scotland will be modernised and restored through £5 million of funding, following agreement between the Scottish Government and Cosla.

Each local authority will receive a share of the funding to improve the standard of existing play parks, enhancing play opportunities for children and young people.

The funding is the first round of the Scottish Government’s total planned investment of £60 million for play park renovation over this parliamentary term and delivers on another commitment for the first 100 days of this government.

Minister for Children Clare Haughey said: “We know that play is an absolutely crucial part of children’s health and well-being and as we continue to recover from the pandemic, playing outside will allow children to reconnect with each other and allow them to return to enjoying their childhood.

“Our overall investment of £60 million will ensure that all children across Scotland have access to quality play in their own community and helps to deliver on children’s right to play, enshrined in the UN Convention on the Rights of the Child.

“We will continue to listen to children and young people throughout this process to ensure our funding is spent on play spaces that work for all.”

Council has made ‘a huge amount of progress’, say Council leaders

The City of Edinburgh Council has delivered sustained improvements over the last 12 months and is continuing to fulfil its longer-term commitments, according to new bench-marking reports.

Demonstrating the Council’s continued focus on investing, delivering and improving the services that matter most to residents, the city’s annual performance report reveals good progress in a number of key areas while also recognising there is room for improvement still to be made.

The findings will be considered alongside the latest Local Government Benchmarking Framework and an update on the Capital’s Coalition Commitments.

Elected members will discuss achievements to date – including improvements in road and waste services, reducing carbon emissions and increasing educational attainment – and how we are working to improve more areas at a meeting of the Policy and Sustainability Committee on Thursday (20 August).

Council Leader Adam McVey said: We’ve made a huge amount of progress over the last 12 months and the results of many of the changes we’ve introduced are clear to see.

“Thousands of new homes are being built, our road condition is getting better and educational attainment across our communities is improving. We’ve seen another significant drop in waste complaints and carbon emissions showing we can continue to improve our basic services while working towards our long term ambitions for Edinburgh. These figures show we’re recording better performance in many areas we know are important to residents.

“We’ll continue to work hard for our citizens and prioritise the issues that matter to them. We face a number of challenges which weren’t foreseen and our plans on how the City adapts to COVID will help us sustain progress, prioritise investment to drive down carbon emissions further and support those residents most in need.

“Despite the challenges which still lie ahead, we remain committed to building on all of the achievements we’ve made to date. With nearly two years until the next Council election we’re well on our way to achieving 48 of our 52 Coalition Commitments, having delivered plans for more classroom assistants and smashed our target for new trees with a net increase of more than 12,000 delivered so far.

“Major infrastructure improvements like the new Meadowbank Sports Centre and Tram to Newhaven are crucial to our City’s wellbeing and sustainable future as are the thousands of new low-carbon homes being built. COVID has shown us how fragile progress can be but it’s also shown us how much we can do with the will to do it.”

Depute Leader Cammy Day said: “We deliver over 700 services every year for residents and visitors, from Council housing and care homes to making sure children receive the right start in life and the education they deserve.

“As we provide these services, our priority is to support our most vulnerable residents, focus on sustainable growth and address poverty – so I’m pleased to see a lot of improvements made in areas like health, the environment and education.

“While a great amount of progress has been made, there are still areas for improvement and we’re working to address these. The inequality gap still exists and we will continue to do all we can to make Edinburgh a more inclusive city, particularly as we recover from the COVID pandemic.

Alongside annual progress, we also need to look to the future. Our Coalition Commitments will put measures in place to make Edinburgh the fairer, greener City we are aspiring to.

The latest performance updates emerge from work the Council has carried out to focus improvements in line with the Council’s Change Strategy, Coalition Commitments and the results of the Edinburgh 2050 City Vision.

Amongst the highlights, the set of reports record:

ROADS AND WASTE
• A drop in domestic missed bin collection requests, down >5,000 in just two years (17,690 vs 22,853 in 2017/18)
• Almost all emergency road defects made safe within 24 hours (98% vs 95% in 2018/19)
• Almost all priority road defects repaired within five days (94% vs 81% in 2018/19)

CARBON EMISSIONS
• A reduction in Council and Edinburgh Leisure emissions (37% reduction to 2005 baseline)

SCHOOLS
• More pupils achieving early level reading (84%) and school leaver literacy and numeracy (67.1%) targets
• More school leavers heading into an initial positive destination (95.1%)

HOMES
• A rise in new homes being built (3,006 projected for this year vs 1,832 in 2017/18)
• A rise in new homes being approved (1,930 which is 230 above target vs 1,475 in 2017/18)
• A decrease in repeat presentations of homelessness (5.5% vs 7.9% in 2017/18)

HEALTH
• A downward trend in people delayed awaiting discharge from hospital (156 vs 267 in 2017/18)
• A downward trend in the number of people waiting for a package of care in hospital (48 vs 151 in 2017/18)

CUSTOMER CARE
• Increased customer satisfaction with the Council’s contact centre (76%)
• Quicker processing of claims and grants, including half the time taken for benefit claims (16.75 days vs 30.9 in 2017/18)

COUNCIL COMMITMENTS
Progress delivering Coalition Commitments (48 out of 52 fully or partially achieved), including successfully:
• Increasing the number of classroom assistants and support staff for children with additional needs to improve attainment and wellbeing
• Increasing allotment provision and support and expanding the network and the number of community gardens and food growing initiatives
• Upgrading parks and planting an additional 1,000 trees in communities
• Protecting Edinburgh World Heritage Status
• Exploring the introduction of fair rent zones, a workplace parking levy and transient visitor levy (TVL)
• Retaining Lothian Buses and Edinburgh Tram in public ownership
• Continuing the Council’s policy of no compulsory redundancies.

Kirk Loan residents celebrate walkable pathways – despite dent in new railing!

Corstorphine residents celebrated success recently following the completion of a successful partnership project, enabling residents to walk more for every day, local journeys.

Kirk Loan Residents Association have been working with Living Streets Scotland and the city council to get improvements made to local streets, meaning many residents can now reach the local shops and bus stop, instead of feeling isolated in their accommodation. Continue reading Kirk Loan residents celebrate walkable pathways – despite dent in new railing!

£9.34 million funding for improvements to GP practices

GP practices will receive more than £9 million of new funding to upgrade their premises and IT systems supporting better services for local communities.

The funding will facilitate improvements to GP practices and enhancements to make the best use of existing space. It will improve internet connectivity and also support the deployment of Attend Anywhere – an online virtual clinic that patients can link into wherever they are.

Health Secretary Jeane Freeman said: “This is a substantial investment by the Scottish Government which will support GPs, the wider primary care workforce and the communities they serve.

“The upgrades to premises and IT systems will see continued improvements to the delivery of high quality patient care, including the continued deployment of Attend Anywhere in our remote and rural areas.

“This investment is part of a wider commitment to increase general practice funding by £250 million by 2021 as part of an extra investment of £500 million per year for primary care funding. This funding together with our wider reform programme will mean additional staff working in primary care, providing better services for patients and allowing them to see the right person at the right time.”

Scottish GP Committee deputy chair Patricia Moultrie said: “This is welcome funding for GP premises and will allow partners to improve their practices and give much-need updates to IT systems.

“This funding is definitely a step in the right direction in regards to making premises fit for the multidisciplinary teams working within general practice in the future, as we look towards the development of Phase 2 of the GP contract.”

The £9.34 million will be split as below:

  • £5.14 million to fund digitisation of GP paper records and improvements to GP premises

– £5 million allocated to Integration Authorities to carry out digitisation of GP paper records and improvements to GP premises

– £0.14 million to NHS National Services Scotland to digitise paper GP records transferring between paper-light GP practices

  • £4.2 million will support implementation of Primary Care Improvement Plans (PCIPs) and improvements to GP IT, and improve practices’ internet connectivity.

– £2.2 million of this would be targeted to supporting Boards on their implementation of PCIPs and on their improvements to GP IT in 2019-20 and promoting joint working, including specific support to rural and remote areas.

– A further £1.8 million funding would be targeted to making faster progress on two other key areas of supporting infrastructure investment:

– Internet connectivity

– Staff and patient Wi-Fi in practices.

– £600,000 of the £1.8 million is going to be used to pay for the on-going costs of practices which have already had their internet connection upgraded. This cost wasn’t paid from the Primary Care Fund previously and is a direct result of previous investment to improve internet connections. Around £100,000 is identified for upgrading further practice internet connections.

– The remaining £200,000 would be targeted at supporting the deployment of Attend Anywhere to remote and rural GP practices.

  • The new GP contract developed in partnership with the BMA, is helping to cut doctors’ workload. Along with investment in multi-disciplinary teams is making the career even more attractive to new doctors, and helping patients to be seen at the right time by the right person.
  • A central aim of the new GP contract is to focus GP time on complex care, while building capacity in the wider multi-disciplinary team.