Grants must be accountable
MUCH of the focus in recent years has been on how efficiently the States is operating. But as it works increasingly with outside agencies, looks to grow as a commissioner of services rather than providing them directly, the robustness of the oversight regime becomes vital. In 2017, the States has budgeted to spend £30.5m. on grants and subsidies, some 9% of its total revenue expenditure.
Just four years ago actual spending in this area was £27.3m.
The need for a strengthened approach was recognised by Treasury and Resources back in 2013, when it announced a review to include what information was necessary before a donation, grant or subsidy was handed out and the requirement to set objectives and reporting back on key performance indicators.
Four years later, while we are told that there are many areas of good practice, there are no guarantees – a new grant agreement template is still being rolled out and a finance directive developed to set out rules for the management of grants to all non-States bodies.
Senior staff recognise there are weaknesses, it is one of the areas that screams out from the benchmarking review of Education, for instance.
States members too have started to question what is happening.
With every penny now counting, historic spending that became a matter of routine needs reviewing, not only for the cost but also to ensure it is value for money.
The public also deserves to be reassured that the money is being spent wisely, and the only way that can happen is by the receiving organisations also being open and publishing their accounts.
Scrutiny has expressed an interest in delving further into this topic.
It would be wise to do so, if only to generate some more momentum in identifying and wheedling out the not so good practice that still exists and ensuring that rules for managing grants are not just developed but implemented.
Budget 2018 is lining up to be painful for taxpayers – the States would be well served demonstrating that they know what they are doing with the public's cash.
