"The investigation has identified significant and fundamental failures in the control and governance framework within AWEMA:
- Governance arrangements in relation to management and to the AWEMA Management Board of Trustees;
- Financial controls and processes;
- An absence of key policies and procedures; and
- An organisational structure that does not adequately support the operations of AWEMA.
In light of the current control framework the report concludes that it cannot provide any assurance that there are appropriate arrangements in place to safeguard and make proper use of the Welsh Government, WEFO and Big Lottery funds entrusted to AWEMA.
In light of this, Dr Rita Austin, Chair of AWEMA has been informed that funding for AWEMA under the Advancing Equality Fund is terminated with immediate effect. In addition Dr Austin has been informed that the three ESF Convergence agreements with AWEMA have also been terminated. WEFO’s Project Inspection & Verification Team will carry out an immediate review of the eligibility of expenditure for EU funding under these projects and will expect the full co-operation of AWEMA in completing this work. Action will be taken to consider whether grant funding should be reclaimed.”