The progress of 15 Lottery capital projects funded by Arts Council England (ACE) has again come under scrutiny with the publication of a new report by the National Audit Office (NAO).
The report finds that more than half of the organisations highlighted in the report are delivering the intended benefits in terms of number of performances and productions, attendance figures and quality of facilities; but four are only delivering these in part, and two, the National Centre for Popular Music in Sheffield and Dovecot Arts Centre in Stockton-on-Tees, have closed due to financial problems. ACE is working with regional stakeholders on a recovery strategy for the Dovecot Arts Centre, but the building that housed the National Centre for Popular Music is set to be sold for non-arts activity, and only £500,000 of the £11m invested by ACE in this project is likely to be recovered. Five of the organisations still operating are also experiencing financial difficulties, though the positions of three of these ? the Royal Court Theatre, Cambridge Arts Theatre, and the Victoria Hall and Regent Theatre in Stoke on Trent ? are expected to improve shortly, and ACE is working with the other two ? the National Glass Centre and the Royal Academy of Dramatic Art ? to help them secure long-term viability.
Attention was first drawn to the 15 organisations that form the focus of the report following an NAO report in 1999 which considered the way in which the then Arts Council of England managed the risks associated with the construction phase of its Lottery capital projects. It found that the majority of the 15 projects were not going according to plan. As at October 1998, only eight were scheduled to be completed on time; 12 were over budget, six by more than ten percent; and eight had applied for and already been granted additional funding. The latest NAO report reveals a catalogue of further problems, including more delays on four projects, and cost increases on ten. Total unbudgeted cost increases have now amounted to £94m, £33m of which has been covered by ACE. Sadler?s Wells Theatre (pictured) received the most additional funding, both in absolute and percentage terms. The project suffered from the start, when it had to be re-designed and restructured because the original design for the Theatre did not meet the planning restrictions placed upon a listed building. In all it received three supplementary grants totalling over £17m ? an increase of 58% on the amount of Lottery funding originally awarded. ACE approved its final award of £5.3m on the basis that without further financial support, Sadler?s Wells would have been forced into liquidation. Only Malvern Festival Theatre, the Royal Albert Hall, the Royal National Theatre, the Royal Opera House and Shakespeare?s Globe Theatre received no supplementary awards.
In its conclusions and recommendations, the NAO report highlights the difficulty of steering projects back on course when things start to go wrong and the importance of getting them right at the outset. It also recognises the steps that have already been taken by ACE to reduce the risk of delays and cost overruns in Lottery capital projects. Health checks have been introduced for organisations being awarded Lottery funds, through which their strengths and weaknesses are identified; and ?capacity building? funding is then made available towards the cost of buying-in support, advice and training. In addition to these measures, the report urges ACE to facilitate a mentoring scheme to enable those with experience of capital projects to share their knowledge; and to provide more written guidance on the contractual issues that can arise in the procurement and management of projects. Copies of the full NAO report are available at http://www.nao.gov.uk