"Public bodies still need to learn lessons when funding small private sector firms", says Auditor General
Report - Click here to download the report - Management of public funding of Cymad Cyf
|Click here to view the press release|
The collapsed private enterprise agency, Cymad Cyf, did not manage effectively the £3.6 million public funding it received between 2003 and 2008 and could not account for some of this money awarded, according to a report published today by the Auditor General for Wales, Gillian Body.
Cymad, which was based in Gwynedd, went into liquidation in August 2009, owing the Welsh Assembly Government some £311,000 for rent and reclaimed European Union (EU) grant. It was a not-for-profit company, established in 1995, to assist the rural development of communities in Meirionydd and Dwyfor. It did so by running projects that were financed from public sources through specific grants or contracts, which were time-limited and had restrictions on how funds could be used.
Today's report found that some of the public funding that Cymad received had to be reclaimed because it did not comply with funding conditions. The public bodies which funded Cymad were the former National Council for Education and Training in Wales, the Welsh European Funding Office, the Welsh Language Board, Gwynedd Council, the former Welsh Development Agency, the Countryside Council for Wales, the Wales Tourist Board and the Welsh Assembly Government. There were serious deficiencies in Cymad's management of EU-funded projects but fewer problems on more straightforward non-European funded projects.