A report to education minister Jane Davidson last November argued that the agency had failed to respond to problems highlighted in 2002, was too focused on the youth work sector and suffered from a lack of effective management.
In the past, the Assembly Government has said the decision to pull funding was made to improve support for youth work.
But the official report, published under the Freedom of Information Act, said the agency is unlikely to "make a significant contribution (to youth work) for at least a year". It recommended that funding should be withdrawn at the end of 2005.
www.wales.gov.uk.
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