The government plans to tighten its controls over grants given to charities

It has published its response to a report by the Public Administration and Constitutional Affairs Committee on the government’s funding of Kids Company.

It takes on board many of the committee’s recommendations.

As well as increased scrutiny, the government also plans increase transparency by publishing a register of all grants made.

Closer Scrutiny of grants

Much of the report recognises the need for closer scrutiny of charities in receipt of government funding. This includes:

  • monitoring of performance;
  • ensuring the charity has enough reserves; and
  • ensuring funding is not duplicated.

The government has already set up and is strengthening a cross-departmental New Grant Advice Panel. The panel is comprised of a team of cross Government experts, including state aid, commercial and fraud, who scrutinise prospective grant payments and provide advice to officials on how to optimise effectiveness and minimise any risk in each new grant.

The government may also introduce a threshold above which further assurance may be required from a charity. On top of sight of audited accounts, it may also want sight of charity management letters and other relevant information from the charity auditors.

The government will publish an update to its plans in the summer It also plans to make an annual report to Parliament on grant making.

For more information please contact your Bishop Fleming adviser or a member of our Charities team.

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