NAO to examine Kids Company funding

17 Sep 15

The National Audit Office has announced it is to investigate the grounds for government funding awards to the closed charity Kids Company, and how the grants were monitored by Whitehall.

The charity closed last month after the withdrawal of public funding amid concerns about financial management and leadership at the charity.

However, this followed a series of grants that had been made, including a grant of £4m for 2015/16 and a £3m award in June.

The NAO confirmed today the £3m grant had been made despite advice from Cabinet Office’s permanent secretary Richard Heaton that it was unlikely to be value for money. This led to a ministerial direction to award the funds.

The investigation will set out the funding that Kids Company received from government, the grounds for this support and how government monitored these grants.

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