THE Charity Commission has ordered the Royal Academy to report suspected financial irregularities to the police after the resignation of a senior figure amid allegations that tens of thousands of pounds have gone missing.

The commission learnt from The Times that the RA had uncovered an unauthorised bank account, as well as “unauthorised deposits and disbursements”, and that Brendan Neiland, 62, had resigned as head of the Royal Academy Schools with around £80,000 “unaccounted for”.

The commission is now seeking assurances that proper procedures are in place. The move comes seven years after Terry Clark, the RA bursar, was jailed for five years after stealing almost £400,000. A commission spokesman said: “It’s a serious matter. We’ve advised the trustees of their duties. That includes reporting this to the police. That is absolutely essential.” Professor Neiland’s resignation was accepted eight days ago at a special meeting of the council, the academy’s governing body.

Although the RA told The Times last Friday that the police had not been “notified” and that the matter was being pursued through an internal inquiry, it claimed yesterday that it had contacted the “relevant” authorities. Scotland Yard, however, said yesterday that “no allegations have been made and no inquiry is under way”.

Artists and benefactors believe that the academy must take action to recover the money, if only for its own sake. Sir Hugh Leggatt, the former Museums and Galleries Commissioner, said: “This must be in the best interests of the Royal Academy, its pupils, the general public and the Charity Commission themselves.” The commission spokesman added: “People need to know their money is being well spent . . . that there are checks and balances.”

The academy, founded in 1768 by George III, has no public subsidy, relying on income from exhibitions. For such an institution, charitable status has wideranging benefits. It helps with fundraising, negotiations with local authorities and governments, and boosts support from celebrities and corporate sponsors.

In 1997, the RA said that action had been taken to prevent anyone repeating the crimes of its bursar. It said then that a new management committee had been set up to scrutinise finances. An RA spokeswoman said yesterday: “We didn’t have qualified accountants at the RA then. We have a team of highly professional accountants now.”

Professor Neiland was appointed Keeper of the RA Schools in 1998. He is now in France. His wife said that he did not want to talk to the press.

Explore UK News

• Crime News

• Education News

• Health News

• Science News

• Scotland News

Times Recommends

• An officer and a gentle woman
• Dame Helen Mirren is worthy of the Epidaurus
• Foods that can help to prevent swine flu