The NAO has published a report into the government’s funding of Kids Company. The NAO report discusses the funding received from government, the reasons for providing the funding and the monitoring of the funding provided. The NAO’s work does not assess whether the money granted to Kids Company represented value for money, or whether the trustees of the charity were effective in overseeing its work. Further information about these issues awaits the outcomes to the other investigations currently being conducted into the failur of Kids Company by, for example, the Charity Commission.
The NAO’s report does however highlight and confirm a number of important issues. It notes that ‘government records show Kids Company used central government grants to cover gaps in its cash flow’ (Para. 4.26), and the ‘charity never reached a position where it was sustainable without government assistance’ (Para. 4.31).
The NAO catalogues the different government grants received by Kids Company between 2002 and 2015 (amounting to an estimated £46M), and official concerns about providing grants to the charity (See Figure 10, p.33). Observations made by officials, included:
Although the NAO’s investigation had a limited remit, it observations confirm Kids Company failed to address the need to ensure the organisation was resilient and sustainable. It is to be hoped that the other investigations currently underway into the charity’s insolvency will provide answers as to why this was the case.
A House of Commons Committee has also questioned both the Chair of the trustees and the Chief Executive of Kids Company about the charity's failure.
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