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Futurebuilders and Capacitybuilders slammed by Public Accounts report

Finance | Vibeka Mair | 17 Jul 2009

Futurebuilders and the  ChangeUp programme have failed to follow basic good practice in programme and project management, Edward Leigh MP, chairman of the Committee of Public Accounts has said.

Announcing the release of a damning report of both bodies, Leigh (pictured) insisted the fact the initiatives were experimental was no excuse.

“ChangeUp, which provides support networks for third sector bodies, got going far too slowly. As a result, most of the £80m funding intended to be spent over three years had to be spent in a rush, in a single year. This lead to waste, poor value for money and difficulties for funded organisations.”

Leigh also slammed Futurebuilders for suffering difficulties: “The applications process for a loan was too long at first and cost both the fund and applicants too much. Planning has also been poor, with little thought being given to how taxpayers' substantial and long-term interest in the programme’s loan book is to be protected.”

Judging their value 'no easy task' 

He said it was unacceptable that these significant and expensive programmes were set up without any proper targets for measuring their performance.

“Both have had some good effect but neither has yet demonstrated value for money. Indeed, given the difficulties in identifying and allocating costs and in identifying and measuring benefits, judging their value for money is going to be no easy task.

"The poor preparation for these programmes and the absence of effective evaluation do not contribute to the credit of the Cabinet Office, especially given the central role it plays in making government work better."

Leigh was speaking as the Committee published its 37th Report of this Session which, on the basis of evidence from the Office of the Third Sector, Capacitybuilders and Futurebuilders England, examined the performance of ChangeUp and Futurebuilders programmes in building capacity in the third sector.

The latest report echoes the condemnation of Futurebuilders and ChangeUp contained in a National Audit Office report published in February which also found early failings in both programmes. 

Lewis: now improved processes 

Jonathan Lewis, CEO of Futurebuilders England, said:  “Futurebuilders England welcomes the report of the Public Accounts Committee into its work in building the capacity of the third sector and is grateful for the thoroughness with which it has been undertaken. This is an important report and we are pleased that the committee has recognised our challenging remit and the progress we have made so far in increasing the capacity of the third sector." 

He continued: "Over the last year we have dramatically improved the application and assessment process and we are committed to continually improving the support that we provide to the organisations in whom we invest. As an engaged investor, we take very seriously the comments made by both the National Audit Office and the Committee and will continue to work with both the Office of the Third Sector and Capacitybuilders to improve the experience of applicants and to secure the maximum benefit of the public money entrusted to us.”

A spokeswoman for Capacitybuilders, which now administers the ChangeUp programme, said: "Capacitybuilders thanks the committee for the report. We will be considering the recommendations with government and will respond in the autumn."

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