A funding scheme for sports and leisure projects designed to keep youths out of trouble has been branded as "wasteful, inefficient and bureaucratic" by a government spending watchdog.

The system which funds the projects was labelled as a "dog's breakfast" by Michael O'Higgins, chair of the Audit Commission, following the publication of a new report looking at how sports and leisure activities can help prevent anti-social and criminal behaviour. The report, called Tired of Hanging Around, has revealed that more than £113m would be saved if one in ten young offenders was kept out of further trouble, with less than £50,000 needed to support a young person to stay out of the criminal justice system.

According to the report, youth workers spend too much time managing budgets and chasing new funding, and in some cases, the administrative costs involved in bidding for grants is more than the funding applicants hope to receive. The report also criticised the fact that funding is often fixed and short-term with no guarantee of renewal, resulting in the closure of schemes with a proven track record of helping young people.

O'Higgins said: "It's ludicrous that funding schemes for young people in trouble with the law should be so complicated. Major opportunities to save public money are going begging. "Prevention is better than cure, but project leaders are being thwarted in their attempts to keep young people out of trouble by wasteful, inefficient and bureaucratic funding arrangements for diversionary projects."