14 Rejected

We asked about the low level of fraud in the fund and whether the Department’s...

Conclusion
We asked about the low level of fraud in the fund and whether the Department’s focus on due diligence had led to this low level. ACE explained it had a dedicated counter-fraud resource and had so far identified no fraudulent payments at all. It said it had received and investigated 46 allegations of fraud; it temporarily withheld three grants of which one case was referred to the police.34 ACE emphasised the importance of due diligence and said it did everything it could to meet the strictest criteria on counter-fraud and made no apology for having stringent counter-fraud measures right through the process.35
Government Response Summary
The government states it disagrees with the committee's (implicit) recommendation regarding streamlined funding processes, defending its stringent counter-fraud measures as essential for proper allocation of taxpayer money and stating further streamlining would risk the fund's propriety.
Government Response
Rejected
HM Government Rejected
3.1 The government disagrees with the Committee’s recommendation. 3.2 Firstly, on the point concerning streamlined funding processes and demands on applicants, the Culture Recovery Fund (CRF), characteristic of all COVID-19 pandemic funding, was delivered at pace and at unprecedented scale to provide emergency relief to a sector in severe economic distress. However, the need to ensure that money was distributed quickly needed to be balanced with factors such as ensuring proper allocation of taxpayers’ money, reducing the risk of fraud, and the need to provide a high-quality service to people who interacted with the programme. 3.3 The funding process for CRF was made as streamlined as possible in order to fulfil the core policy aims of the fund, and the conditions on the funding determined by government ministers. In DCMS’s view, any further streamlining or reduction in the grant making process would have put at risk the propriety of the fund’s delivery.
Addressee Bodies
HM Treasury
Timeline
Recommendation age 5.1 yrs
Report published 23 Jun 2021