This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/news/uk-34661273

The article has changed 7 times. There is an RSS feed of changes available.

Version 0 Version 1
Collapsed charity Kids Company given £46m in public cash Collapsed charity Kids Company given £46m in public cash
(about 7 hours later)
Collapsed charity Kids Company received at least £46m of public money despite repeated concerns about how it was run, the National Audit Office has found.Collapsed charity Kids Company received at least £46m of public money despite repeated concerns about how it was run, the National Audit Office has found.
The charity lobbied the government for funding and warned of service closures if officials resisted, the NAO found. The charity repeatedly asked for government money and warned of closures if officials resisted, the NAO said.
Concerns about the charity's cash flow and financial sustainability were raised as far back as 2002, it said. Concerns about the charity's cash flow and financial sustainability were raised as far back as 2002, it found.
Kids Company's founder Camila Batmanghelidjh has denied claims the charity was financially mismanaged. Former bosses at the charity, which helped vulnerable young people, deny it was financially mismanaged.
The Commons Public Accounts Committee, which is responsible for overseeing government spending, said there had been "little focus" on the charity's achievements by government. Officials responsible for approving funding will be questioned by MPs on the Commons Public Accounts Committee on Monday.
Kids Company, which helped vulnerable young people, closed in August - days after receiving a £3m government grant. Meg Hillier, committee chairman and Labour MP, said it was "unbelievable" that so much money had been given to the charity with "little focus" on what it was actually achieving.
Police investigation
Kids Company - which was founded by Camila Batmanghelidjh and operated in London, Liverpool and Bristol - received a £3m government grant on July 30.
It was paid the same day it emerged the Met Police was investigating the charity over allegations of physical and sexual abuse. Trustees closed the charity days later.
Analysis
By Chris Cook, BBC Newsnight policy editor
The NAO, Parliament's spending watchdog, reveals Civil Service worries about Kids Company were long-standing.
The document will bolster concerns that the charity was, indeed, extremely poorly run: civil servants complained for more than a decade about its management under Camila Batmanghelidjh and Alan Yentob, the charity's chairman from 2003 until it closed (he is also the BBC's creative director).
The fundamental question that the NAO sought to address was why, given concern about the charity for more than a decade, Kids Company was able to raise more than £40m from government departments.
How Kids Company 'bullied' ministers
What went wrong at Kids Company?What went wrong at Kids Company?
'Repeated concerns' Government ministers had overruled warnings from a senior Cabinet Office civil servant that July's grant would not represent value for money.
The NAO, an independent parliamentary body which audits government departments, launched its investigation after a £3m grant was awarded to the charity in June 2015 when ministers over-ruled official warnings from a senior Cabinet Office civil servant that it would not represent value for money. The award prompted an investigation by the NAO, an independent body which audits government departments.
It found Kids Company, which operated in London, Liverpool and Bristol, had received public funding for at least 15 years, with at least £42m provided in government grants, including £28m from the Department for Education (DfE) and its predecessors. It found Kids Company received public funding for at least 15 years, with at least £42m provided in government grants, including £28m from the Department for Education (DfE) and its predecessors.
It also received about £2m from councils and £2m from the national lottery. It also received about £2m from councils and £2m from the National Lottery.
The report found concerns about the charity's cash flow and financial sustainability were raised as far back as 2002.The report found concerns about the charity's cash flow and financial sustainability were raised as far back as 2002.
But despite "repeatedly expressed concerns" from officials, the government "continued to respond to the charity's requests for funding".But despite "repeatedly expressed concerns" from officials, the government "continued to respond to the charity's requests for funding".
It said officials also noted that other organisations "appeared to offer better value for money". Officials had noted that other organisations "appeared to offer better value for money", the NAO found.
But briefings to ministers in 2002, 2005, 2007, 2010, 2012 and 2015 showed officials accepted Kids Company's assertions that it would become insolvent without government grant funding, the report said. But briefings to ministers in 2002, 2005, 2007, 2010, 2012 and 2015 showed officials had accepted Kids Company's assertions that it would become insolvent without government support, the report added.
Analysis - By Chris Cook, BBC Newsnight policy editor The NAO found "a consistent pattern of behaviour" of Kids Company writing to ministers to express fears of redundancies and the impact of service closures, while raising the same concerns in the media.
The NAO, Parliament's spending watchdog, reveals civil service worries about Kids Company were very longstanding.
The document will bolster concerns that the charity was, indeed, extremely poorly run: civil servants complained for more than a decade about its management under Camila Batmanghelidjh and Alan Yentob, the charity's chairman from 2003 until it closed (he is also the BBC's creative director).
The fundamental question that the NAO sought to address is why, given concern about the charity for more than a decade, Kids Company was able to raise more than £40m from government departments.
Read more from Chris
The NAO said it "observed a consistent pattern of behaviour" that when Kids Company came to the end of its grant term it would write to ministers and express fears of redundancies and the impact of service closures while expressing the same concerns in the media.
This meant that from 2013 it did not have to compete for grants, the NAO found.This meant that from 2013 it did not have to compete for grants, the NAO found.
Meg Hillier, chairwoman of the Public Accounts Committee, said: "It is unbelievable that over 13 years, taxpayers' money has been given to Kids Company with little focus on what it was actually achieving for the children it was supporting. 'Little action'
"Government repeatedly raised concerns about Kids Company's finances but little action was taken. Ms Hillier said it was "unbelievable" that taxpayers' money was given to Kids Company with "little focus on what it was actually achieving for the children it was supporting".
"Government repeatedly raised concerns about Kids Company's finances but little action was taken," she said.
"Despite this, government gave it further grants - funded by the taxpayer.""Despite this, government gave it further grants - funded by the taxpayer."
Ms Batmanghelidjh previously said Kids Company had become "a football for the media and the civil servants". Ms Batmanghelidjh has previously said Kids Company became "a football for the media and the civil servants".
Some people in government wanted the charity to "disappear" and there had been a "malicious discrediting campaign", she added.Some people in government wanted the charity to "disappear" and there had been a "malicious discrediting campaign", she added.
She told the BBC that Kids Company had been subjected to a "trial by media" based on "rumours and conjectures".She told the BBC that Kids Company had been subjected to a "trial by media" based on "rumours and conjectures".
Alan Yentob, chairman of Kids Company and the BBC's creative director, has said suggestions of financial mismanagement were "complete rubbish".Alan Yentob, chairman of Kids Company and the BBC's creative director, has said suggestions of financial mismanagement were "complete rubbish".
"We have had problems raising funds, and the demand has been increasing," he said.
Civil servants responsible for some of the funding decisions will be called before the Public Accounts Committee on Monday.
The £3m from the government was paid to Kids Company on 30 July but on the same day officials learned the Metropolitan Police was investigating the charity over allegations of physical and sexual abuse.
The trustees closed Kids Company in August following the announcement of the police investigation, saying they were no longer confident they could secure future income.
On 3 August, the Cabinet Office terminated the grant agreement and requested repayment of £2.1m.