volunteers during Coventry's City of Culture year. two volunteers are facing the camera, smiling, wearing blue City of Culture branded jackets

Photo: Dylan Parrin

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Coventry collapse: Watchdog to examine DCMS and ACE role

National Audit Office will examine public bodies' oversight of money provided to Coventry City of Culture Trust prior to its collapse.

Neil Puffett
3 min read

An investigation by the National Audit Office (NAO) into the collapse of Coventry City of Culture Trust will focus on how DCMS and Arts Council England (ACE) kept tabs on how public funding was used, the spending watchdog has said.

A statement put out by the NAO said that the work is intended to complement the investigations of several other bodies looking into other aspects of the Trust.

The Trust went into adminstration in February with a total estimated debt of around £4.25m.

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It is already subject to an investigation by the Charity Commission, while last month Arts Professional revealed that administrators plan to call in forensic accountants to examine the trust's books amid claims of 'financial profligacy' prior to its collapse.

A statment by the NAO said: "Our work will set out the central government funding provided to the Trust and Coventry City Council for the Coventry City of Culture programme of events and associated activity, including over its legacy phase. 

"This includes funding provided by the Department for Culture, Media & Sport (DCMS) and its arm’s-length bodies. It will set out how the funding was accounted for and how the relevant bodies oversaw its use."

ACE, an arm's-length body of DCMS, was one of a number of bodies that provided funding to Coventry City of Culture.

Its website states that the organisation invested £5m from the National Lottery into City of Culture Trust to support the organisation to lead, commission and coordinate a range of excellent arts and cultural activity as part of Coventry UK City of Culture.

The trust also received significant  investment from DCMS and £3m from the National Lottery Heritage Fund.

A DCMS spokesperson said: "We will carefully consider the findings of the NAO review as we continue to manage our UK City of Culture programme.

"Coventry received £172.6m investment as a result of being awarded the UK City of Culture title, which in turn has led to in excess of £500m of regeneration activity. More than one million people engaged with the programme."

An ACE spokesperson said: "The City of Culture year brought many great creative and cultural experiences to Coventry, showing us all how creativity can transform places and provide opportunities for communities to come together. 

"We are now working with the NAO and the joint administrators and await the findings of the review."