I welcome the NAO report and its findings, and want to ensure that we continue to develop our approach to get the best value for money possible. I hope to work closely with colleagues from across Government to respond to any recommendations that the Public Accounts Committee may make, which will be informed by this report.
The Charity Commission’s regulatory case report into Age Concern England and its Heyday membership scheme raised some wider issues for the charity sector. In particular, the report highlighted the importance of strong governance arrangements alongside accountability and transparency. The Office of the Third Sector promotes good governance in the third sector, for example through the leadership and governance workstream of Capacitybuilders’ National Support Services Programme. In relation to the Department’s funding of the charity sector, appropriate controls and monitoring arrangements are in place both before any grant funding is awarded, and for the duration of any funding agreement.
All organisations receiving grant funding directly from the Office of the Third Sector are required to complete an Internal Financial Controls Checklist for Charities provided by the Charity Commission
www.charitycommission.gov.uk
and provide three references. The checklist ensures that any organisation receiving funding has secure financial controls in place.
Funding agreements with organisations are monitored on an on-going basis as per the terms and conditions of the particular agreement in place.
As the independent regulator of charities in England and Wales, the Charity Commission is not subject to ministerial direction or control. The Commission's statutory objectives were recently reviewed and updated in the Charities Act 2006. This included increasing public confidence in charities, promoting compliance by charity trustees with their legal obligations in exercising control and management of the administration of their charities, promoting the effective use of charitable resources and enhancing the accountability of charities to donors, beneficiaries and the general public. The Commission has wide powers of intervention where there is evidence of misconduct or mismanagement. It operates a risk-based approach to the regulation of charities. This is set out in its published Risk and Proportionality Framework, and I have placed a copy in the House Library.