Employees at a leading charity have lodged grievances after senior figures were told they face compulsory redundancy, while the future of a key fund for victims of crime remains uncertain.

Victim Support Scotland (VSS) is said by insiders to be in a state of internal warfare over the threatened job losses, after key figures left the board and six staff were told their jobs are to go.

Accountancy firm KPMG has been commissioned by the Scottish Government to carry out an external review of the troubled charity, which ministers fund to the tune of more than £4m a year.

VSS had been expected to administer the distribution of new funds raised by a surcharge on fines imposed by courts to pay for improved services to help victims of crime and witnesses. Other groups supporting victims, such as Women's Aid and Rape Crisis would then have the opportunity to apply for grants.

However it is not clear when or if the charity will receive the cash, expected to amount to £1.2m every year, to set up a new Victims Fund to help pay victims' costs such as funeral expenses, or relocation costs.

The chief executive of the current fund, Jim Andrews, is among the staff targeted for possible redundancy.

Board members from (VSS) met with senior officials in the Scottish Government Justice Directorate on Friday to discuss the current situation. The Scottish Government currently provides VSS with annual funds of more than £4m.

The charity's communications manager David Sinclair confirmed to the Herald that he is another of the employees told he faces compulsory redundancy. He added: "I was informed by a colleague while on annual leave that I was being made compulsorily redundant.

"As a result of the process followed, I have lodged a formal grievance with VSS which has still to be heard. Because the proposal has serious implications for my professional reputation I have little option but to pursue that grievance up to and including a tribunal and other legal means."

The Herald understands at least one other formal grievance has been lodged, and staff affected include Mr Andrews and Mr Sinclair, two receptionists, one of seven business delivery managers and partnership development manager Jim Evans.

All press enquiries relating to the situation at VSS are now being handled by acting chief executive Susan Gallagher. She said she could not confirm that grievances had been lodged but added: "VSS is totally committed to protecting its frontline services and has recently undertaken a robust financial and operational review to ensure the organisation best meets its charitable aims. We are proposing to slim down our HQ so we can further support our frontline activities. VSS is therefore in the process of consultation with six post holders whose posts have been identified as at risk of a potential redundancy."

She confirmed that Mr Andrews post was one of those affected: "The management of the new victims fund will be addressed by VSS when and if the Government confirm the management of the surcharge fund will come to us. Until such time VSS will continue to provide Victims fund support to victims and people affected by crime as normal."

Ms Gallagher declined to comment on claims that all the staff affected, including some who have years of service, have been offered the minimum statutory redundancy terms.

She said both the KPMG governance review of VSS and the meeting on Friday are routine for an organisation in receipt of substantial funding.

However insiders say the situation is far from routine. One said the actions of the Scottish government demonstrated ministers' complete lack of confidence in the leadership of VSS and added: "Essentially this is a charity which is at war. The place is in uproar. The board and management both believe they are in charge."

Another added: "We would never treat a victim of crime in the way staff are currently being treated. It is shameful and astonishing if the Government is prepared to turn a blind eye to what is going on."

A Scottish Government spokesperson said: "Victim Support Scotland provides a range of vital services for victims of crime and as such the Scottish Government provides around £4 million each year to support the provision of these.

"The victim surcharge is due to be introduced later this year, ensuring that offenders contribute towards a fund to be used to support victims of crime. Exact timings will depend on the parliamentary process and the rate of collection of funds from offenders.

"In the meantime, the Scottish Government continues to support VSS's existing victims fund for providing immediate assistance to victims."

She added: "Government officials regularly meet with Victim Support Scotland, as with other organisations which receive public funding. Discussions typically cover a range of matters relating to the provision of support for victims of crime."