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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. |
| There was a "consistent pattern" of the charity receiving grants after claiming it would close without them, it said. | There was a "consistent pattern" of the charity receiving grants after claiming it would close without them, it said. |
| Kids Company received twice the funding of any other charity in 2011, and officials relied on its own assessments to check performance, the NAO said. | Kids Company received twice the funding of any other charity in 2011, and officials relied on its own assessments to check performance, the NAO said. |
| Former bosses at the charity have denied it was financially mismanaged. | Former bosses at the charity have denied it was financially mismanaged. |
| Ex-children's minister Tim Loughton, a Conservative, said he warned the Department for Education against giving a "very sizeable" grant to Kids Company in 2012. | Ex-children's minister Tim Loughton, a Conservative, said he warned the Department for Education against giving a "very sizeable" grant to Kids Company in 2012. |
| But he said he was "overruled" by Downing Street, after the charity's founder Camila Batmanghelidjh wrote a "Dear David letter" directly to Number 10. | |
| The charity appeared able to "mesmerise" people into giving it "special treatment", Mr Loughton added. | The charity appeared able to "mesmerise" people into giving it "special treatment", Mr Loughton added. |
| The charity - which provided support to deprived and vulnerable children in London, Liverpool and Bristol - closed in August. | The charity - which provided support to deprived and vulnerable children in London, Liverpool and Bristol - closed in August. |
| The NAO found it 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 it 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. |
| Key findings | Key findings |
| The NAO, an independent body which audits government departments, found that despite "repeatedly expressed concerns" from officials, the government "continued to respond to the charity's requests for funding". | The NAO, an independent body which audits government departments, found that despite "repeatedly expressed concerns" from officials, the government "continued to respond to the charity's requests for funding". |
| What was Kids Company? | What was Kids Company? |
| What went wrong at Kids Company? | What went wrong at Kids Company? |
| The NAO report said civil servants had noted that other organisations "appeared to offer better value for money" than Kids Company. | The NAO report said civil servants had noted that other organisations "appeared to offer better value for money" than Kids Company. |
| But briefings to ministers in 2002, 2005, 2007, 2010, 2012 and 2015 showed officials had accepted the charity'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 the charity'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. | 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. |
| 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. | 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. |
| "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." |
| Analysis | Analysis |
| By Chris Cook, BBC Newsnight policy editor | By 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' ministers | How Kids Company 'bullied' ministers |
| Do the sums add up? | Do the sums add up? |
| 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". |