Jersey’s public spending watchdog has raised fresh concerns about how taxpayer cash is handed out in grants, warning that a lack of proper checks and documentation around conflicts of interest could damage public confidence.
In a review published today, Comptroller and Auditor General Lynn Pamment CBE said that, in the sample of grants she reviewed, “I could find no record of how conflicts of interest within the States (officers, Ministerial and other States Members) are assessed, documented and evaluated”.
“Reputational risks”
The report cautioned that the current approach “exposes the States to a range of reputational risks including a perception of bias, unfairness and eroding public confidence in the integrity of the decision making process relating to the award of grants.”
The C&AG examined how a sample of grants and subsidies awarded by the Government of Jersey were managed, looking in particular at the Departments for the Economy, Children, Young People, Education and Skills (CYPES), and the Cabinet Office.
In 2023, more than £74 million in grants were reported in the States of Jersey’s annual accounts. But despite the scale of spending, the report found that grant-making processes still lack a joined-up, government-wide approach.
“The follow-up audit found no clear and consistent States-wide approach or framework against which to make decisions about how to deliver services to islanders,” the report noted.
“This creates a gap in the support available to officers when they need to decide if the use of a grant or grant scheme is the most effective solution to deliver the intended outcome, rather than through, for example, a contract for services.”
This lack of consistency, the C&AG said, makes it harder to ensure grants are issued fairly and transparently, and could lead to duplication or missed opportunities for streamlining.
Ms Pamment recommended that the Government develops a dedicated decision-making framework for grant funding, to help officers make better-informed, more accountable choices about how to fund services.
The C&AG recommended “a decision-making framework for grant funding” to “provide a roadmap for mature and effective decision-making by ensuring that grants are assessed, appraised and awarded in a consistent manner and support projects most likely to deliver expected outcomes to islanders”.
“It would demonstrate to grant-receiving bodies that there is a fair and equitable process for securing funding and allow applicants to understand how decisions are made,” the report added.
Another key finding was the inconsistent approach to monitoring how grant money is used. In some cases, the Government and the grant recipient did not have clearly defined or measurable outcomes.
“There is no consistency in how agreed outputs or outcomes are recorded between the Government and the grant receiving entity,” the report stated.
The C&AG also recommended that a more “proportionate, risk-based approach” be taken to reviewing existing grant schemes, as part of a further revision to the Public Finances Manual.
Are arts funding outcomes being tracked properly?
Arts and heritage funding was a particular focus for the watchdog, who said that the government was still to put in place clear plans to ensure goals were being delivered when grants were handed over.
She said that a framework introduced in 2023 had brought “greater consistency in the design of arts and heritage grants”, but that performance management still relied too heavily on narratives rather than concrete, outcome-based indicators”.
Ms Pamment called for stronger oversight to ensure these cultural grants are “assessed, appraised and awarded in a consistent manner” and deliver measurable value for islanders.
Political calls for transparency
The report comes following calls for more transparency over how grants for cultural events are awarded and monitored, amid concerns over the financial management of the Battle of Flowers.
The Public Accounts Committee – the group of politicians responsible for scrutinising how taxpayer money is spent – stressed the need for a clearer policy on how grant applications are assessed, how funds are allocated, and how event finances are disclosed.
“The PAC would like to emphasise the importance of supporting cultural and community events such as the Battle of Flowers,” PAC Chair Deputy Inna Gardiner said.
“However, it would also like to see evidence of a clear government policy about how we support public and cultural events, including how applications are scored, how funds are allocated, and accounts of the entities organising these events.”
Effective oversight “essential”
Following the publication of her report this morning, Ms Pamment commented: “The use of individual grants or grant schemes is a valuable part of the States’ framework for service delivery, regulation and resilience.
“Effective oversight, governance and accountability arrangements are essential in order to ensure grant receiving bodies use the funding in line with overall States objectives, including demonstrating improved outcomes for islanders.”
She added: “A number of the recommendations from the previous reports have been implemented or are in progress. However, there is further work required to demonstrate compliance with the requirements of the Public Finances Manual and there are opportunities to enhance efficiency and value for money in the oversight and use of grant funding.”
You can read the full report here.