PARLIAMENTARY WRITTEN QUESTION
Kids Company: Finance (4 September 2015)

To ask the Minister for the Cabinet Office, with reference to the letter from the Permanent Secretary of the Cabinet Office to Cabinet Office Ministers dated 26 June 2015, published 16 July 2015, what conditions were attached to the grant made to Kids Company in April 2015 to encourage that charity to move to a more financially sustainable model; which aspects of that charity's business model the Government considered should become more financial sustainable; and for how long the Government had concerns about this matter.

Asked by:
Lisa Nandy (Labour)

An independent review of financial and governance controls at Kids Company in early 2014 (published on gov.uk) stated that ‘the main financial risk to the organisation is cashflow’ and that ‘without improving the cash position of the charity, it is not possible to build reserves and invest in new activities and locations’. Subsequent funding agreements between Cabinet Office and Kids Company included clear conditions that this position be improved.

Answered by:
Mr Rob Wilson (Conservative)
10 September 2015