Independent investigations into Welcome to Yorkshire have exposed abuse of the company's expenses system and widespread 'behavioural concerns' about former chief executive Sir Gary Verity.
Investigations into practices of the private firm, which receives half its funding from taxpayers, were launched after Mr Verity stepped down in March amid concerns about his behaviour towards staff and expenses claims.
The probe conducted by accountants BDO found that £26,000 of the £900,000 of expenses it reviewed were claimed for personal items that did not benefit the company.
The investigators also found that three company credit cards, with credit limits of £8,000, were regularly used by senior management but there were no receipts for 'a large proportion' of the transactions.
The accounts report says 'some of these amounts have been repaid' but there are also concerns about hundreds of pounds of petty cash which was taken when no receipts were issued.
The report also says board members were 'unaware of excessive spending in relation to expenses' over a six-year period.
'Many participants raised concerns about the behaviour of Sir Gary Verity'
Clarion Solicitors conducted an investigation into behaviour at the Welcome to Yorkshire, and found the majority of the firm's 50 employees had 'behavioural concerns' which 'seem to have become widely accepted from the top down'.
Their report states: "In response to open questions about the general culture, governance and management of WTY, many participants raised concerns about the behaviour of Sir Gary Verity.
"Unfortunately, many participants stated that they felt unable to raise concerns at the relevant time, although some were concerned about the behaviour of Sir Gary Verity.
"We found that the culture of WTY was not open or focused on employee wellbeing, development or engagement."
The investigators have made a number of recommendations, which call on the company to make improvements to its expenses procedure, organisational culture, HR policies and procedures and governance of the board.
Keith Stewart, interim Chairman of Welcome to Yorkshire, said the company 'accepts and welcomes' the findings and recommendations of the investigations and will now publish all senior management expense claims, that are over £250, on its website.
Two of the company credit cards have been cancelled, Mr Stewart must now sign off all expenses claims made by senior management and the company's whistle blowing policy is being reviewed.
'We are truly sorry'
Mr Stewart added: "I would like to take this opportunity to apologise on behalf of the organisation to those who have been affected by actions and mistakes made.
"Where we have let people down, we are truly sorry.
"Clearly both reports have identified a number of areas which require improvement and instances where the leadership of the organisation has fallen short of the high standards not only we, but our brilliant team, members, funding partners and stakeholders expect.
"We have taken immediate steps to remedy this."
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