Futurebuilders and the ChangeUp programme have come under heavy fire in a report from the cross-party Public Accounts Committee (PAC), which says they "failed to follow" fundamental good practice in management.

The programmes were set up by the Government at a cost of £446m to strengthen voluntary sector infrastructure between 2004 and 2011, and are now the responsibility of the Office of the Third Sector (OTS).

The Building the Capacity of the Third Sector report says the administration of the ChangeUp programme was “a mess from the start”. It also said that Futurebuilders “did not focus on its objectives during its first three years” although some improvements have been made.

Jonathan Lewis, chief executive of Futurebuilders, said, “We are pleased that the committee has recognised our challenging remit and the progress we have made so far in increasing the capacity of the third sector.”

A spokeswoman for Capacitybuilders, which now administers the ChangeUp programme, said, "Capacitybuilders thanks the committee for the report. We will be considering the recommendations with Government and will respond in the autumn."

The report also criticised the programmes' evaluation, saying, “It is unacceptable that these significant and costly programmes were established without setting any proper targets against which the performance could be measured.”

The report recommended that The Cabinet Office and the OTS should show “greater clarity around terms and conditions of funding and investment” and ensure that proper evaluation is built into the design of all programmes.

A report by the National Audit Office in February criticised the administration of the programmes.