§ Mrs. Rumboldasked the Secretary of State for Social Services if he will make a statement about the level of the grant made to the Pre-School Playgroups Association in 1984–85.
§ Mr. John PattenWe have decided to make a supplementary grant of £30,000 to the Pre-School Playgroups (PPA) this financial year to help ease the cash flow problem the association anticipates in mid-March. It should also, on our present information, enable the association to balance its income and expenditure account this financial year.
I want to take this opportunity to clarify certain aspects of the events of the financial year about to end. On 25 June 1984 I announced a grant of £361,000 for 1984–85. At the same time I offered—and PPA accepted—the help of a DHSS audit team to advise on financial management and to carry out a general financial appraisal.
On 25 June PPA sent a letter to the Department to say it had dismissed its finance officer (accounts) for misconduct and had called in its auditors. Charges have since brought against the finance officer.
The DHSS financial appraisal was carried out with the full co-operation of the volunteer officers and the staff of the association. The appraisal team's report, which PPA welcomed, made a number of recommendations to strengthen and extend financial management and control. PPA accepted the recommendations in full and is working towards their implementation.
I have also seconded, at no cost to the PPA, part-time, a DHSS officer at principal grade to help it to review its management needs. I hope that these measures will enable the association to set its affairs in order and continue to provide the support to the playgroup movement which we value highly.
It is clear from preliminary discussions with the association about its grant application for 1985–86 that this will be a difficult financial year. I am confident that it will be supported by its membership.