The National Audit Office (NAO) has found that the Department for Culture, Media and Sport’s (DCMS) decision to close the Museums, Libraries and Archives Council (MLA) was not informed by a full financial analysis of the costs and benefits.
In its 2010-11 audit report, the NAO stated: “When the department presented information on the proposed closure of the MLA, it identified the ongoing costs of the activities it wished to continue, but was not able to identify the closure costs that would be incurred, or the full marginal costs of transferring activities to Arts Council England.”
Amyas Morse, head of the NAO, said: “Some decisions have been based on insufficient financial information and analysis, as exemplified by the decisions to merge and close some arm’s-length bodies.
“This can leave organisations exposed and unprepared for the future, and lead to high overall costs or the displacement of costs elsewhere.” A DCMS spokesman said: “[The decisions to close or merge arm’s-length bodies] have been informed by a financial analysis of the costs and benefits, but these are not the only factors taken into consideration.
“The department is finalising the costs of winding up the MLA. We expect this detailed analysis to confirm our preliminary assessment that it will deliver significant cost savings.
“We have been managing the closures and mergers to achieve value for money since these decisions were taken and have driven down costs and maximised efficiencies. We don’t feel this has been recognised by the NAO.”
In its 2010-11 audit report, the NAO stated: “When the department presented information on the proposed closure of the MLA, it identified the ongoing costs of the activities it wished to continue, but was not able to identify the closure costs that would be incurred, or the full marginal costs of transferring activities to Arts Council England.”
Amyas Morse, head of the NAO, said: “Some decisions have been based on insufficient financial information and analysis, as exemplified by the decisions to merge and close some arm’s-length bodies.
“This can leave organisations exposed and unprepared for the future, and lead to high overall costs or the displacement of costs elsewhere.” A DCMS spokesman said: “[The decisions to close or merge arm’s-length bodies] have been informed by a financial analysis of the costs and benefits, but these are not the only factors taken into consideration.
“The department is finalising the costs of winding up the MLA. We expect this detailed analysis to confirm our preliminary assessment that it will deliver significant cost savings.
“We have been managing the closures and mergers to achieve value for money since these decisions were taken and have driven down costs and maximised efficiencies. We don’t feel this has been recognised by the NAO.”
