Local Authority Funding of Third Sector Services

The Auditor General for Wales reviewed how local authorities in Wales are making the best use of the third sector and has concluded that they must do more to ensure that the work they are currently doing continues to secure value for money, in his report published in January 2017.


In recent years, local authorities have had to find new ways of maintaining services in the face of reductions in public money and have consequently increased their funding of other providers, particularly the third sector, to deliver key services.


The report found that the third sector’s work with local authorities is growing, but despite this growth, inconsistencies in local authorities’ arrangements for funding the third sector make it difficult to demonstrate value for money from this increased investment. The report highlights the need for authorities to develop a clearer rationale for why they are working in partnership with the sector and to be clear about how these partnerships support them to deliver their corporate priorities. The report also assesses how efficient and effective local authority funding arrangements for third sector organisations are. Poor systems and arrangements for awarding and allocating monies to the third sector currently impose heavy burdens on organisations.


The Committee considered and noted the findings in the Report, which was published in January 2017.


Business type: Other

Status: Complete

First published: 26/01/2017