This is a follow-up to the linked questions "Can a charity give up its charitable status?"(5 June) and “How can we sort out this charity's financial muddle?” (19 June)

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The two staff (who work for both the Charity and the non-charity) are paying all proceeds into the non-charity’s bank account.

The pre-school (the Charity) receives funding through parents’ fees and an education grant paid by the government – all paid into the non-charity bank account. The out of school club (non-charity) receives funding from fees only (as far as we know, as they do not seem to know themselves) and this is also paid into the same bank account.

This in essence means that there has been no activity on the Charity’s bank account since December 2006. Does this mean the Charity can be dissolved having no listed assets?

The staff made an estimate of what the combined income and expenditure was for year ending December 2006 based only on bank statements (no paper or other records) and their own estimate of numbers of children attending. This was for both groups. Although this was paid into the non-charitable organisation’s bank account, they created and submitted accounts (and we have not seen these) to the Charity Commission for the charity’s estimated portion.

The parents who use the group would not know (or I think be concerned) as to which one was receiving the money. However, the education grant payments may be a different issue as they are direct grant from the local authority for providing early years education for 3 and 4 year old children who attend the group. This may be an issue for them?