The Charity Commission has launched a statutory inquiry into the management of Adapt (North East), a Hexham-based disability charity, over what it described as “serious concerns” including allegations of significant payments made without full trustee approval.
The charity provides community transport, social prescribing, wheelchair hire and other support for people with sensory, physical and learning disabilities. The regulator warned that the charity’s work could be brought to a halt because of an internal dispute.
Regulator's concerns and inquiry scope
The Commission said it began assessing financial and governance concerns surrounding Adapt in July this year, including allegations of “significant” payments being made without full approval of the charity’s trustee board, and later opened a regulatory compliance case to examine possible misconduct or mismanagement. That case has now been escalated to a statutory inquiry.
The Commission said: “During its regulatory engagement, the Commission quickly became aware of an internal dispute at the charity impacting its ability to operate and its trustees’ ability to engage as a collective with the regulator’s enquiries. The regulator is concerned about the potential impact the ongoing dispute, and any disruption it has caused, is likely to have on those who rely on its services and the charity’s staff.”
The inquiry will examine the extent to which Adapt’s trustees, past and present, have complied and are able to comply with their legal duties, including whether there has been any “unauthorised personal benefit and potential conflicts of interest” and whether the charity has appropriate financial controls in place.
Chief executive's response
Adapt chief executive Hannah Harniess said: “Adapt NE exists to promote equity and inclusion for disabled people and support people experiencing mental health challenges. That purpose must remain at the heart of the charity’s work. Adapt’s services continue to operate, supporting the people and communities who rely on them. I am enormously grateful to the charity’s staff and volunteers for their professionalism and commitment throughout this difficult period.”
She added: “After joining the charity in October 2025, I raised concerns about financial arrangements and governance decisions that predated my appointment. I raised these internally and subsequently reported them to the Charity Commission because I believed independent scrutiny was necessary in the charity’s best interests. I welcome the Commission’s inquiry and will continue to assist its work. I do not intend to comment on the specific matters being examined while that process is ongoing. My hope is that it will strengthen the charity’s governance and help secure a positive and sustainable future for Adapt North East.”
Former trustees welcome inquiry
In a statement following the Charity Commission’s announcement, four former trustees of Adapt welcomed the inquiry. Michael Briggs, George Clarke, Mavis Ostler and Rosemary Theobalds said: “We support an independent and thorough examination of the financial and governance concerns identified by the Commission, including historic financial arrangements. We recognise that this includes scrutiny of our own actions, decisions and oversight alongside those of other past and present trustees. We will provide relevant information, answer questions fully and comply with any requirements or directions that apply to us.”
They added: “We also wish to acknowledge Chief Executive Hannah Harniess, who raised concerns about financial arrangements and governance and sought independent scrutiny. We believe these were responsible and appropriate steps, taken in the interests of the charity. We have raised questions with the Commission about the charity's current governance arrangements, including the composition of the Board and the authority for certain decisions. We welcome the Commission's independent consideration of these matters.”
The former trustees said their priority remains the charity, its staff and volunteers, and the people who depend on its services. They said they want “a lawful and constructive resolution that restores effective, transparent and accountable governance and protects Adapt’s future.”
