Senior trustees at the Roy Castle Lung Cancer Foundation have been criticised for their conduct by the Charity Commission.

The commission launched an inquiry in December after the Liverpool-based charity's chief executive, Sylvia Ingham, resigned amid allegations of financial irregularities.

Mrs Ingham, who worked for the charity formed in honour of the late entertainer Roy Castle, was accused in a report published on Friday of using charity funds for "substantial personal use".

The charity's founder, Professor Ray Donnelly, is also criticised for using foundation money to finance a statue of Roy Castle for his widow Fiona.

Mrs Castle was the first to alert the commission to apparent mismanagement of funds at the charity last October.

The report concludes that Mrs Ingham's conduct "fell below the standard to be reasonably expected of the chief executive of a charity".

Personal use

It revealed how she made personal trips claiming she was travelling on foundation business and used her official mobile telephone for personal calls.

She is reported to have used funds to finance her own car trips and once switched flights on a work trip to the US incurring extra expense for the charity.

"She took personal advantage of donated and discounted facilities offered to the foundation for its official purposes," the commission added.

Mrs Ingham, from Windemere in Cumbria, has since offered to reimburse the foundation for personal costs amounting to less than �10,000.

In the case of Professor Donnelly, the commission said the Roy Castle statue was "an inappropriate use of the charity's resource" but accepted the retired surgeon did not benefit personally.

The foundation's rapid growth was not, according to the Charity Commission, "accompanied by sufficiently robust checks and balances and a supportive management culture".

Admitted mistakes

In response, a spokeswoman for the charity welcomed the commission's recommendations.

"The report indicates that the trustees were entirely justified in inviting the commission to examine the activities of the foundation and its then chief executive," she said.

Acting head of the charity, Roger Evans, admitted the mistakes of their former chief executive and said the organisation was working hard to put new controls in place.

"Our supporters have remained incredibly loyal because our mission is so vital and unchanged - to find a cure for lung cancer that claims 40,000 lives every year in this country alone," said Mr Evans.

Professor Donnelly, who declared relief that the "distressing period" was over, said the organisation would go forward "with renewed energy and commitment".