A charity contracted to run transport services and days out for vulnerable people is under investigation over concerns about its finances and leadership.
Merseycare Transport Ltd, based in Wirral, Merseyside, turned over £1.92m in the financial year ending March 2025, including more than £300,000 in government contracts.
However watchdog the Charity Commission said it had opened a statutory inquiry into the charity after identifying "governance and financial management concerns".
The commission said its inquiry would seek to establish whether there was any evidence of "misconduct, mismanagement or misappropriation of charitable funds".
It said it had opened the inquiry as a result of "regulatory concerns", including questions over whether the charity had "complied with its statutory accounting requirements" and potential "expenditure that does not seem to align with its expenses".
The commission also expressed concerns that the charity had "too few trustees", in breach of its governing document.
On its website, Merseycare Transport states: "Our non-profit making, charitable status means we invest all our funding in service improvements and putting our customers first."
Its services include taking children with 'looked after' status to school or home, transport for elderly people or disabled people, and providing minibus transport for voluntary or community organisations.
The charity's latest set of accounts, covering the period up to March 2025, showed it had spent about £60,000 more that it earned.
The accounts also recorded £5,216 in "staff entertaining" expenses, down from £16,000 in 2024.
Merseycare Transport did not respond to a request for comment.
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