One of the University of Oxford’s oldest colleges has been handed an official warning by the Charity Commission following a lengthy dispute with its former dean.

The regulator  that trustees at Christ Church, Oxford failed to manage resources responsibly and warned that such disputes risk “undermining the reputation of Christ Church and harming wider trust in charities”.

The college, which has charitable status, had been involved in a long dispute with its former dean Martyn Percy before he stepped down in April following a mediation process.

A settlement meant that disciplinary proceedings against him – which included multiple suspensions during his tenure – were dropped, and the college reportedly had to pay legal fees and compensation likely to total more than £1 million.

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In 2020 the Charity Commission told both parties to enter into formal mediation, but it has now found that trustees failed to act on its previous advice to continue to have “close oversight of costs” in the dispute.

“These long and protracted disputes risked undermining the reputation of Christ Church and harming wider trust in charities,” said Helen Earner, director of regulatory services at the Charity Commission.

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“It is not for us as regulator to take sides in disputes. Our role is to ensure that charities are governed effectively and that charitable funds are properly accounted for.

“All trustees must demonstrate sound financial stewardship, regardless of the level of resources available to them.”

The commission said it asked trustees for information about the costs of the actions connected to the former dean in December 2021 and how these were being managed – but they were unable to do so in a timely manner.

Between August 2018 and January 2022, the college spent more than £6.6 million on legal and public relations fees related to the former dean, of which over £5.3 million appeared to have been approved retrospectively, the regulator said.

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It was also critical of how trustees categorised costs associated to the dispute, which had the potential to “mislead”.

The Charity Commission determined these failures and omissions amounted to “misconduct and/or mismanagement” in the charity’s administration.

To rectify the concerns, Christ Church must complete a full independent governance review and ensure its accounts comply with the legal requirement to ensure the charity is accountable.

Revd Percy was originally suspended in 2018 in a dispute over his pay and efforts to reform college governance, and again in 2020 when a woman accused him of sexual harassment – an allegation he denied, and which police and the Church of England had declined to pursue.

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A spokesperson for Christ Church said: “In very complex and constantly changing circumstances, trustees made decisions which, having taken professional advice, they judged to be in the best interests of Christ Church.

“Many of the costs were incurred as a result of Dr Percy’s refusal to settle with a governing body which had lost trust and confidence in him.”

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patrick.jack@timeshighereducation.com