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Five lessons for charities and ministers from the collapse of Kids Company

The closure of Kids Company highlighted problems over the checks and balances used by government and charities to ensure public funding is spent well, from which the rest of the children's voluntary sector can learn.

A report from the House of Commons public administration and constitutional affairs committee published earlier this month laid bare the extent of the problems that contributed to the collapse of the children's charity Kids Company last summer.

It found that failures by senior management to properly scrutinise how it spent millions of pounds in government funding gave rise to the financial problems that ultimately led to its downfall.

It also criticised ministers and civil servants for giving the charity preferential treatment over how funding was awarded and used.

The committee's findings highlight key lessons for other children's charities.

1. Introduce more rigour in how government awards grants

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