Auditor calls for more checks on ‘complex’ Welsh grants

29 Nov 11
Many of the grant schemes used to fund public services in Wales are overly complex and need to be better managed, according to the auditor general.

By Richard Johnstone | 29 November 2011

Many of the grant schemes used to fund public services in Wales are overly complex and need to be better managed, according to the auditor general.

Huw Vaughan Thomas said that the grants system, used by the Welsh Government and other public bodies to allocate more than £2bn every year, could be streamlined and made more efficient.

In a report published today, the Wales Audit Office found that more than 500 different schemes provided ring-fenced cash for specific purposes, such as education, transport and social services, across the country. Each grant had its own specific terms and conditions, which were often complex.

Other weaknesses identified included failures by funders to consider the capability of grant recipients and a lack of clarity on the expected project outcomes.

Also, both funders and recipients often did not monitor progress effectively after awards were made and so failed to learn lessons from mistakes, thereport found.

However, the auditors said that the Welsh Government’s Grants Management project has the potential to cut costs and make the grants process more efficient. Set up this year, this project will address ‘compliance and governance’ concerns in the schemes.

Vaughan Thomas also called on the government and other grant funders, which include agencies such as the Sports Council for Wales and the Arts Council for Wales, to go further. He said risks relating to viability, capacity and capability of grant recipients should be assessed before awards are made.

Government should also take robust action when grants have been overpaid or misused, with strengthened monitoring if funding is continued.

‘Many grants are poorly managed, and it is clear that funders and recipients are failing to learn from past mistakes, including failing to consider alternative approaches,’ Vaughan Thomas said.

However there is evidence that those involved in the grants process want to improve systems and processes and the Wales Audit Office is well placed to continue to support them to do so.’

Responding to the report, a Welsh Government spokeswoman said: ‘We are committed to managing public expenditure as effectively as possible and to working with our partners to make efficiency savings where possible, while continuing to deliver high-quality services. 

We have recently developed an effective framework to strengthen our management of grants and this has been welcomed by the auditor general for Wales in the report published today.’

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