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A Charity Commission inquiry into the Institute of Leisure and Amenity Management (ILAM) has raised concerns about the separation between the charitable and trading activities of the organisation. The inquiry found that the Charity incurred costs as a result of the voluntary liquidation of the trading arm, ILAM Training Ltd., in 2001. Further concerns were raised about the relationship between ILAM and ILAM Services Ltd, another subsidiary, particularly in terms of the responsibilities of key staff involved in both organisations.
The Deputy Chief Executive of ILAM is the Managing Director of ILAM Services Ltd and one person is Finance Director of both organisations. The report points to the fact that with such a structure, conflicts of interest will inevitably arise. It states ?trustees did not have adequate procedures for monitoring and reviewing the performance of employees? and ?have accepted there were deficiencies in the management and reporting structure.? However, ?they have now implemented a structure of controls and procedures.? The Charity Commission will now audit ILAM annually to ensure that the new measures are effected.