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Collapsed charity Kids Company given £46m in public cash Collapsed charity Kids Company given £46m in public cash
(34 minutes 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 repeatedly asked for government money and warned of closures if officials resisted, the NAO said. The charity, which helped vulnerable children, repeatedly warned it could close without support, the NAO said.
Concerns about the charity's cash flow and financial sustainability were raised as far back as 2002, it found. Financial concerns were raised as far back as 2002 and the government relied on the charity's own self-assessment to monitor its performance, it found.
Former bosses at the charity, which helped vulnerable young people, deny it was financially mismanaged. Former bosses at the charity deny it was financially mismanaged.
Officials responsible for approving funding will be questioned by MPs on the Commons Public Accounts Committee on Monday. Labour MP Meg Hillier, who chairs the Commons Public Accounts Committee which will question officials on Monday, said it was "unbelievable" so much was given to the charity with "little focus" on its achievements.
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 investigationPolice investigation
Kids Company - which was founded by Camila Batmanghelidjh and operated in London, Liverpool and Bristol - received a £3m government grant on July 30. Kids Company - which was founded by Camila Batmanghelidjh and provided support to deprived and vulnerable children in London, Liverpool and Bristol - received a £3m government grant on 30 July.
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. It was paid the same day it emerged London's Metropolitan Police was investigating the charity over allegations of physical and sexual abuse. Trustees closed the charity days later.
The grant prompted an investigation by the NAO, an independent body which audits government departments.
AnalysisAnalysis
By Chris Cook, BBC Newsnight policy editorBy Chris Cook, BBC Newsnight policy editor
The NAO, Parliament's spending watchdog, reveals Civil Service worries about Kids Company were long-standing.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 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.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' ministersHow Kids Company 'bullied' ministers
What went wrong at Kids Company?What went wrong at Kids Company?
Government ministers had overruled warnings from a senior Cabinet Office civil servant that July's grant would not represent value for money. The report 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.
The award prompted an investigation by the NAO, an independent body which audits government departments. The charity also received about £2m from councils and £2m from the National Lottery. The report found:
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. The NAO found that despite "repeatedly expressed concerns" from officials, the government "continued to respond to the charity's requests for funding".
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.
But despite "repeatedly expressed concerns" from officials, the government "continued to respond to the charity's requests for funding".
Officials had noted that other organisations "appeared to offer better value for money", the NAO found.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 had accepted Kids Company's assertions that it would become insolvent without government support, the report added.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.
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 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.
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.
'Little action''Little action'
Ashley McDougall, from the NAO, said it was not clear why government had continued to fund Kids Company "year after year" when concerns were known.
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".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."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 has previously said Kids Company became "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".