Transcript Slide 1

Third Sector
Task and Finish
Group
Duration of the review
Task and Finish
Group membership
Co-opted Member
July – December 2008
Councillor Diane Thomas (Chair)
Councillor Kath Banks
Councillor Jack Cookson
Councillor RJ Farooqui
Councillor Jinny Pearce
Councillor Mark Shurmer
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Mrs Ann Sowton
from the Bromsgrove and Redditch Network (BARN)
Overview and Jess Bayley
Scrutiny Support
Officer
Date for submission December 2008
of report
Front cover picture The picture on the front cover was taken during the Redditch Borough Council
Voluntary Sector Consultation Event 21 November 2008
Third Sector Task and Finish Review
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Third Sector
Task and Finish
Group
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Third Sector Task and Finish Review
Main Contents
Page
Introduction
page 7
Recommendations
page 8
Background
page 11
Review Scope
page 15
Approach to the Review
page 16
Consultation Event
page 18
Recommendations: Further Information
Recommendation One
page 28
Recommendation Two a
page 39
Recommendation Two b
page 40
Recommendation Three
page 43
Recommendation Four
page 45
Third Sector Task and Finish Review
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Main Contents
Page
4
Recommendation Five
page 47
Recommendation Five a
page 48
Recommendation Five b
page 49
Recommendation Five c
page 50
Recommendation Five d
page 48
Recommendation Five e
page 50
Recommendation Five f
page 52
Recommendation Six
page 54
Conclusion
page 57
Consultation Event – Expert Witnesses
page 58
Expert Witnesses
page 60
Additional Thanks
page 61
Third Sector Task and Finish Review
Main Contents
Page
Appendix A: Shopping, Investing and Giving
page 62
Appendix B: Redditch Sustainable Community
Strategy 2008 – 2011: Summary
page 64
Appendix C: Officer Costs (this appendix is available separately
from the report pack).
Appendix D: Delegate Pack Information (this appendix is available
separately from the report pack).
Bibliography
page 72
Website References
page 76
Glossary
page 81
Overview and Scrutiny Contacts
page 83
Third Sector Task and Finish Review
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Third Sector Task
and Finish Group
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Third Sector Task and Finish Review
Introduction
This report represents the culmination of a six month review into the Council’s grants
process. We were commissioned to undertake this review on behalf of the Council’s
Overview and Scrutiny Committee.
In the report you will see that we have undertaken a thorough investigation of the
Council’s grants process and of the various options that could be utilised to improve
funding arrangements at the Council.
We have produced a number of recommendations which we feel, if they are adopted,
will make the Council’s grants process fit for purpose from 2010/11 onwards.
This report should be read in conjunction with the brief presentation report produced
by Councillors Shurmer and Thomas on behalf of our Group.
Third Sector Task and Finish Review
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Recommendations
We RECOMMEND that
1)
the Council adopt a written Grants Policy and Procedure;
2a) the Council’s purpose for funding the third sector should be aligned to the
following mission statement “Redditch Borough Council supports
Voluntary and Community Sector organisations because we believe that a
vibrant third sector is vital to our community”;
2b) the criteria for grants applications be aligned to the Redditch Sustainable
Community Strategy priorities;
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3)
the Shopping, Investing and Giving funding framework be adopted for the
Council’s grants process;
4)
the Council officially endorse the Worcestershire Compact;
Third Sector Task and Finish Review
Recommendations
5)
further work be undertaken into the following issues:
a)
a review of ways to enhance Voluntary and Community Sector
involvement in the Redditch Partnership;
b)
a review of the Council’s provision of non-grant support to the
Voluntary and Community Sector;
c)
a review of how the Council should meet its responsibilities as set
out in the Worcestershire Compact agreement;
d)
a review of how the six equalities strands could be embedded in the
working practices of Redditch Borough Council and the Redditch
Partnership;
e)
a review of the Council’s procurement code; and
f)
a review of how multi-year funding arrangements should be
implemented as part of the Council’s grants process; and
Third Sector Task and Finish Review
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Recommendations
6)
subject to the successful submission and approval of a revenue bid, the
Council introduce a clerical support role in the policy team to support the
grants process; or
subject to funding using a portion of the grants budget the Council
introduce a clerical support role in the policy team to support the grants
process.
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Third Sector Task and Finish Review
Background
National Context Increasingly, in recent years, central government has been promoting the need for a
thriving third sector.
The government has recognised that the third sector has a significant role to play
within society, including: delivering public services; campaigning for change,
promoting social enterprises and strengthening communities (Office of the Third
Sector, 2008).
National Performance
Indicators
As part of this commitment two national performance indicators have been introduced
that relate to the third sector. These national performance indicators encourage local
authorities to build capacity within the sector:
• National Indicator Six: ‘Participation in Regular Volunteering’; and
• National Indicator Seven: ‘An Environment for a Thriving Third Sector’ (this
national indicator encourages consideration of more than just providing financial
support to the sector).
Local authority
grants processes
Local Authorities are not legally required to distribute funding to third sector
organisations. However, many Councils do provide financial support. The
arrangements for providing financial support to the third sector vary between
Councils.
Third Sector Task and Finish Review
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Background
Current Redditch Redditch Borough Council currently allocates grants and donations to third sector
Borough Council organisations from the Council’s Grants Fund. The Council allocates grants and
grants arrangements donations from this grants fund in a number of different ways:
Core Funded organisations: The Council provides some larger grants which cover
core funding costs. Five organisations received core funding in 2008/09.
Collectively, these core funded organisations received £184,980 from the Council.
Donations: The Council also donates funds to third sector organisations. Two
organisations received donations from the Council in 2008/09. The total cost of these
two donations was £18,000.
Project Grants: Third sector organisations can apply for Project Grants valued at up
to £10,000. Applicants must demonstrate that the Project Grant will be used to
finance new work. Project Grants are not designed to cover core costs.
Start-Up Grants: New and fledgling organisations are eligible to apply for Start-up
Grants. Applicants can apply for grants valued at up to £1,000.
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Third Sector Task and Finish Review
Background
Current grants Under current arrangements at Redditch Borough Council applications for funding
process are made on an annual basis. The Council has one submission date each year
which applies to applications for all grants and donations.
Each application is scored in accordance with a set criteria. This criteria is linked to
funding priorities, including the Council’s priorities. In recent years the criteria has
been linked to the themes for the Redditch Sustainable Community Strategy. (For
further information about the Redditch Sustainable Community Strategy please refer
to Appendix B).
The Council’s Grants Panel awards the scores to each application. The Grants
Panel recommends that the applications which receive the highest scores should be
approved for funding by the Executive Committee.
Recent history In recent years a number of incremental changes have been made to the Council’s
grants process. These changes were made in response to the local, regional and
national context.
However, these reviews did not resolve all of the problems with the Council’s grants
process. Consequently, in 2007 a Task and Finish review of the Council’s grants
process was proposed with a view to devising a new process for 2010/11 onwards.
Third Sector Task and Finish Review
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Background
Problems with A number of problems with the Council’s grants process have been identified in
Redditch Borough recent years through exercises such as internal audit reports and through
Council’s grants consultation with representatives of the third sector in 2005.
process
These problems include (in no particular order):
• a lack of continuity in the grants process, particularly in relation to Officer support.
There have been seven Officers in post to support the Council’s grants
process in the course of five years;
• inconsistent linking of grants to Redditch Borough Council’s priorities;
• weak monitoring arrangements (monitoring arrangements at the Council have
been strengthened over the past year);
• a cycle of dependency amongst a number of third sector organisations on Council
sources of funding;
• procurement issues, particularly overlaps between the grants process and
procurement arrangements that have not been resolved; and
• a lack of confidence in the Council within the sector, mainly for the reasons listed
above.
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Third Sector Task and Finish Review
Review Scope
Objectives of the The Third Sector Task and Finish Group was established in July 2008. We were
review commissioned to undertake a strategic review of the Council’s overarching approach
to funding third sector organisations.
We were specifically tasked with reviewing the Council’s arrangements for awarding
grants and donations to third sector organisations. We were asked by the Overview
and Scrutiny Committee to bring forward proposals that would shape the Council’s
grants process from 2010/11 onwards.
Exclusions from the There were a number of relevant issues which were not contained within the remit of
review our review. We feel that it is important to mention these areas as this informed the
context for our review.
We were not asked to scrutinise additional forms of non-grant support that the
Council provides to third sector organisations (such as peppercorn rent
arrangements). We were also not tasked with reviewing the specific grants awarded
to individual organisations as part of the current grants process. This remained the
preserve of the Council’s existing Grants Panel.
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Approach to the
Review
Transparency Task and Finish Groups are informal working groups which do not hold meetings that
are open to public attendance. However, from the beginning of our review we were
aware that the subject would be of interest to local third sector organisations. For this
reason we made our review process as transparent as possible.
We introduced a bespoke webpage on the Council’s website which provided
information about the review. Visitors to the Council’s website were able to access
copies of the agenda and notes from meetings of the Group on this webpage. To
view the information provided on the Council’s Third Sector Task and Finish Group
webpage please use the following URL address:
http://www.redditchbc.gov.uk/democracy/mgCommitteeDetails.asp?ID=238
We also added a feedback form to the Council’s homepage to advertise our review.
We invited representatives of local third sector organisations to use this feedback
form to advise us of their interest in the review and of any concerns they had about
the Council’s grants process.
Declarations of We were appointed to the Third Sector Task and Finish Group because of our interest
Interest in the subject and, in many cases, because of our experiences of working in the third
sector. Throughout the review we declared our personal interests. (Further
information about us and our interests can be found in Appendix D).
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Third Sector Task and Finish Review
Approach to the
Review
Initial analysis
We embarked on the review in July in 2008. We began by reviewing the Council’s
existing grants process and the sustainability of funding the third sector.
Councillor Interviews We interviewed the leaders of the Conservative, Labour and Liberal Democrat
Groups at a meeting of our Group on 14 August 2008.
We felt that it was important for us to understand the views of the political party
groups represented on the Council towards the grants process. In particular, we
believed that it was important to determine their opinions of the sustainability of
funding the third sector and of the purpose of the grants process.
The political party group leaders’ responses indicated that they agreed in the
sustainability of the Council’s grants process. They all commented on the valuable
role played by third sector organisations, particularly in delivering public services.
They had mixed views about the Council’s purpose for funding third sector
organisations. They were broadly in support of the Council awarding grants in
accordance with wider considerations, such as the Redditch Sustainable Community
Strategy vision. They did not, though, provide a specification for the purpose of the
grants process.
Third Sector Task and Finish Review
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Approach to the
Review
Councillor Interviews
The political party group leaders cautioned against linking the criteria for grants
applications to a single theme. This had been attempted in 2005/06: all applicants
had had to demonstrate in their applications that the project for which they were
applying for funding was linked to the theme of community safety. This theme-based
process had not been considered a success and had been discontinued in
subsequent years.
Officer Interviews
We also interviewed the Deputy Chief Executive on 18 August 2008 to determine her
views of the Council’s purpose for funding third sector organisations. She explained
that there could be a number of objectives for the grants process.
She suggested that when considering the purpose Councillors should remain aware
of expectations at the local, regional and national levels. There also needed to be
consideration of the added value that the Council’s grants process could ultimately
provide for the community.
She noted that the Council could operate the grants process with a view to enhancing
capacity within the third sector; to address gaps in service provision; and to target
particular groups within the local community.
A more detailed record of the evidence provided by the political party group leaders
and the Deputy Chief Executive can be viewed in notes from the relevant meetings of
the Task and Finish Group on the Council’s website.
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Third Sector Task and Finish Review
Approach to the
Review
External interviews
We agreed that it was important during the review for us to learn from other local
authorities about alternative grants processes.
The grants processes in place at a number of local authorities were scrutinised. We
decided to concentrate on arrangements in place at comparable local authorities and
in Councils within Worcestershire. We agreed that this would enable us to determine
both what types of arrangements could feasibly be implemented in Redditch as well
as the types of grants processes that many local third sector organisations would
already be familiar with.
We selected two local authorities for more detailed analysis: Gloucester City Council
and Worcestershire County Council. These were both authorities which had grants
processes that the Improvement and Development Agency had praised as examples
of best practice (I&DeA, 2008). We interviewed relevant Officers from both of these
authorities.
Questionnaires We also dispatched questionnaires to a number of comparable local authorities: East
Staffordshire Borough Council, South Bedfordshire District Council; and Stevenage
Borough Council. We received one response to this questionnaire which was
treated as confidential.
Third Sector Task and Finish Review
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Approach to the
Review
Gloucester City
Council
Gloucester City Council was a comparable sized local authority and had recently
changed its grants processes following an internal review. We felt that we could
learn something from a Council that had gone through a similar critical process of
analysis.
The Officers from Gloucester City Council explained that they had a much wider remit
than administering a grants process in that they managed a Voluntary and
Community Development Team. They also utilised specific funding arrangements in
the form of engaged funding. The Engaged Funding framework required Officers at
Gloucester City Council to work closely with a third sector organisation to develop a
funding proposition.
The engaged funding arrangements also provided Officers with an opportunity to
identify needs within those organisations; to advise organisations about alternative
sources of funding; and to advise those organisations about additional sources of
support, such as the support provided by local infrastructure organisations.
We were impressed by the engaged funding arrangements at Gloucester City
Council which we felt enabled that Council to develop close working relations with
local third sector organisations. We also felt that this proactive form of engagement
helped the Council to develop a positive reputation within the third sector.
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Third Sector Task and Finish Review
Approach to the
Review
Worcestershire
County Council
Worcestershire County Council operates the Shopping, Investing and Giving model
of funding. This funding framework has been increasingly promoted by central
government as an example of best practice.
During the course of the interview Officers explained that Shopping, Investing and
Giving had only been introduced in recent years. The implementation of this funding
framework had been relatively successful. Moreover, local third sector organisations
had become familiar with the funding framework and were applying to receive
financial support from the Council.
(Further information about Shopping, Investing and Giving can be found in Appendix
A).
The Officers from Worcestershire County Council were concerned about the lack of
awareness of the Worcestershire Compact agreement within relevant local public
agencies. They explained that the principles contained within the Compact
agreement represented best practice and that more needed to be done to embed
these principles into wider local authority working practices. (Further information
about the Worcestershire Compact is provided on pages 45 - 46).
Third Sector Task and Finish Review
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Consultation
Event
Engaging the third
sector
We agreed early in the review that we wanted to engage representatives of the third
sector in the Task and Finish Group exercise. We felt that it would be good practice
to engage representatives from the sector as they would be affected by any
recommended alterations to the Council’s grants process.
Furthermore, during the course of the exercise we were made aware of the outcomes
of a similar review that had been undertaken by Leicester City Council. That
Council’s grants process had been altered following their review. This action had
subsequently been subject to a judicial hearing, which had criticised the Council for
not providing appropriate advance notice to the third sector organisations most
affected by the changes. Leicester City Council had also been criticised for not
having consulted with the third sector during their review.
Notice of change Early in our review the five third sector organisations in receipt of core funding, as
well as the two organisations in receipt of donations from the Council, were advised
in writing that we were undertaking this review of the grants process. They were also
advised that the Council would be altering its grants process from 2010/11 onwards.
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Third Sector Task and Finish Review
Consultation
Event
Reasons for holding a
Consultation Event
We discussed various options for engaging representatives of the third sector in the
review. Throughout we aimed to ensure that any form of engagement that took place
was conducted fairly.
We recognised that we could have interviewed representatives of the third sector.
However, we only had six months to complete our review and would not have had
enough time to interview everybody who would have been interested in participating.
We felt that this would have been unfair to many third sector organisations as well as
to their service users.
We also rejected engaging third sector organisations through questionnaires as we
were aware that questionnaires did not always elicit high response rates.
Promoting the event As a Group we agreed that an open Consultation Event would be the most
appropriate method for engaging the third sector in our review. We were anxious to
ensure that this Consultation Event was widely advertised to provide a fair
opportunity for representatives from across the third sector to participate in the
review.
We promoted the Consultation Event in variety of ways: through advertisements in
the local newspapers; by providing information at local Neighbourhood Group
meetings in October 2008; and the Bromsgrove and Redditch Network (BARN)
circulated information to local third sector organisations.
Third Sector Task and Finish Review
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Consultation
Event
Programme for the
event
The Voluntary Sector Grants Consultation Event took place on Friday 21 November
2008. We hosted the event at Redditch Town Hall. Twenty five representatives of
local third sector organisations attended the event (further details about the range of
delegates present during the Consultation Event can be found on pages 60 - 61).
We issued delegate packs to all participants prior to the event. These delegate packs
provided further information about the terms of reference for the review and the aims
of the event. (Copies of the documentation provided in the delegate packs are
provided in Appendices A, B and D).
We were anxious to ensure that the Consultation Event represented a meaningful
opportunity to engage with representatives of the third sector. For this reason we
devised a mixture of information and interactive sessions for the event.
Information sessions We provided delegates with information about the work of the Task and Finish Group
and the aims of the review. Delegates were advised that as we were undertaking a
Task and Finish Review we had no decision making powers but that we could make
recommendations based on the evidence that we had gathered during our review.
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Third Sector Task and Finish Review
Consultation
Event
Interactive sessions
We also offered a number of interactive sessions during the Consultation Event.
Many of these interactive sessions were completed in the form of group activities.
These interactive sessions encouraged delegates to think about the wider
considerations involved in managing a local authority grants process.
Lessons learned The contributions made by delegates during the Consultation Event were considered
during the by us at subsequent meetings of the Third Sector Task and Finish Group and
Consultation Event informed our final recommendations. In particular, we reviewed responses provided
during the interactive group activities; during a question and answer session; in
completed evaluation forms; and during an exploration of some of the key issues
which the third sector felt should be addressed by the Council.
A number of representatives from the third sector suggested that more Consultation
Events should be hosted in future by the Council as this could facilitate positive
working relations between the Council and third sector organisations. We feel that
the Council may wish to consider this proposal further and to host Consultation
Events on appropriate occasions.
However, we are also aware that an opportunity for third sector organisations to
consult with representatives of the Council is already made available during the
quarterly networking meetings of the Bromsgrove and Redditch Network (BARN).
Relevant Officers attend these meetings, though we think the Portfolio Holder for
Corporate Management should consider accompanying them in future.
Third Sector Task and Finish Review
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Three Key
Statements
Background
During the course of the Consultation Event delegates proposed three key
statements on behalf of the third sector for the consideration of the Council.
Statement One • Redditch Borough Council should ensure that the needs of the Borough are
considered when making decisions. In the absence of this awareness some
needs within the Borough may fail to be addressed.
Statement Two • Redditch Borough Council should ensure that some basic expectations inform
decisions about distributing funding to third sector organisations. Funding should
be fairly distributed across different communities and organisations within the
Borough. The Council should seek to fund organisations that serve a range of
communities as well as to award funding to a mixture of small, medium and large
organisations.
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Third Sector Task and Finish Review
Three Key
Statements
Statement Three
• Redditch Borough Council needs to develop more proactive communications
arrangements. The Council should do more to publicise local events and
opportunities, including opportunities for third sector organisations to apply for
funding. The achievements of, and activities delivered by, third sector
organisations using Council sources of funding should also be publicised.
Relevant articles in a Council newspaper could help to address this issue. The
Council could invite representatives of local third sector organisations to contribute
relevant articles to a Council newspaper.
Conclusion We feel that both Councillors and Officers should take due regard of these key
statements and should consider how they could inform the Council’s working
practices.
Third Sector Task and Finish Review
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Recommendation
One – Further
information
Recommendation One
We recommend that the Council adopt a written Grants Policy and Procedure.
We discovered during our review that Redditch Borough Council does not currently
have a written Grants Policy and Procedure. In recent years draft Grants Policies
have been produced, though the contents of these documents have not been based
on the type of overarching review that we have undertaken. None of these draft
documents were approved by full Council.
The subject of a Grants Policy was discussed with all of our expert witnesses. We
discovered that it was not unusual for a local authority not to have a Grants Policy
and Procedure. In fact, many local Councils refer to their local Compact agreements
as their Grants Policies.
However, the benefits of a Grants Policy are recognised. A Grants Policy provides an
opportunity to explicitly define the basic working principles for a grants process. Our
expert witnesses also acknowledged that use of a Grants Policy and Procedure could
help to embed the principles of the local Compact agreement into a Council’s working
practices (for more information about the Worcestershire Compact see pages 45 46).
We believe that this absence of a Grants Policy and Procedure document has had a
detrimental impact on the Council’s grants process. In particular, we feel that the
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Third Sector Task and Finish Review
Recommendation
One – Further
information
Recommendation
One: We recommend
that the Council
adopt a written
Grants Policy and
Procedure.
lack of consistency and the numerous reviews of our grants process, which have
taken place in recent years can, in part, be linked to a lack of definite terms of
reference for the process as contained within a policy. We also feel that a written
Grants Policy would provide greater clarity about our grants process, to the benefit of
local third sector organisations.
We are aware that producing a Policy and Procedure requires a lot of work from
Officers. We felt under these circumstances that we should provide Officers with
some guidelines about the specifications that we felt should be incorporated into this
document.
The specifications detailed here are based on examples of best practice identified by
us during the course of our review.
a) The Council should utilise the Shopping, Investing and Giving funding framework.
As part of our review we are recommending that the Council adopt the Shopping,
Investing and Giving funding framework (For further information about this
recommendation please refer to pages 43 - 44). We feel that this funding framework
should be embedded within Council procedures in the long-term. We therefore feel
that it is appropriate for the recommendation to be incorporated into the written
Grants Policy and Procedure. (Further information about Shopping, Investing and
Giving is provided in Appendix A).
Third Sector Task and Finish Review
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Recommendation
One – Further
information
Recommendation
One: We recommend
that the Council
adopt a written
Grants Policy and
Procedure.
b) The Council’s mission statement, (as recorded in recommendation two a), should
be included within the body of the Policy and Procedure document.
We are recommending that the Council should adopt the mission statement that we
are proposing in recommendation 2a. (For further information about recommendation
2a please refer to pages 39 - 40). As part of this recommendation we are proposing
that this mission statement should be regarded as the purpose for the Council’s
grants process. We feel that, if approved, it would be appropriate for the purpose of
the Council’s grants process to be acknowledged in the Council’s written Grants
Policy and Procedure.
c) The Executive Committee and full Council should make decisions about what
should be bought by the Council when “Shopping” for services.
The Shopping element of Shopping, Investing and Giving, will have greater financial
implications than typical grants arrangements. We feel that under these
circumstances any decisions about Shopping arrangements should be considered by
statutory Committees at the Council as part of a democratically accountable process.
Specifically, we believe that it would be most appropriate for the senior decision
making body at the Council, the Executive Committee, to make decisions about these
Shopping arrangements. Any decisions would be subject to approval at full Council
and would need to be made in accordance with guidance from expert Officers.
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Third Sector Task and Finish Review
Recommendation
One – Further
information
Recommendation
One: We recommend
that the Council
adopt a written
Grants Policy and
Procedure.
d) Shopping arrangements should be funded using a portion of the grants budget
(See Appendix A and recommendation 3, pages 43 - 44 for more details about
Shopping);
The Shopping part of the funding framework will comprise of large funding
arrangements, whether in the form of a contract or in the form of a Strategic Grant.
This needs to be financed using Council funds. We recognise, though, that in the
present economic climate it might not be appropriate to require individual services to
assume responsibility for financing Shopping arrangements. Instead we feel it would
be more appropriate for Shopping arrangements to be financed using funds from the
existing grants budget.
We recognise that, by funding Shopping using a portion of the grants budget, there
will be a limit to the amount of Shopping arrangements that could be agreed in any
given period. We also recognise that the Council will need to ensure that a portion of
the grants budget is retained in any given year to finance Investing and Giving.
We do not feel that it would be appropriate to set a specific limit for the portion of the
grants budget that should be allocated to Shopping arrangements. We would resist
setting limits on the division of the budget between Shopping and the Investing and
Giving parts of the framework as we feel that this might prevent the Executive
Committee and full Council from awarding some contracts or Strategic Grants that
could lead to significant improvements in service delivery.
Third Sector Task and Finish Review
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Recommendation
One – Further
information
Recommendation
One: We recommend
that the Council
adopt a written
Grants Policy and
Procedure.
e) Third sector organisations should have opportunities to bid for both Strategic
Grants and contracts as part of the Council’s Shopping arrangements (the latter
option would be subject to the review of the Council’s procurement code, as set out in
recommendation 5e, page 51).
During the course of the review we discovered that the Shopping part of the
Shopping, Investing and Giving funding framework could be organised in two
different ways.
The standard version of Shopping involves negotiating contract arrangements.
These contracts can be Service Level Agreements (SLAs) or contracts, though only
contracts represent legally binding agreements between the Council and third sector
organisations. For contracts the Council would put a service out to tender and
organisations would need to bid to deliver the service. Any contractual arrangements
would need to be organised in accordance with the Council’s procurement code, and
if valued at over £36,000, would be subject to European procurement laws. (Please
see recommendation 5e, page 51 for further information about the procurement
code).
Worcestershire County Council operates slightly different Shopping arrangements by
providing Strategic Grants. Strategic Grants are larger grant settlements, which are
subject to a bidding process similar to contract arrangements. However, Strategic
Grants are not subject to European procurement laws.
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Third Sector Task and Finish Review
Recommendation
One – Further
information
Recommendation
One: We recommend
that the Council
adopt a written
Grants Policy and
Procedure.
We feel that both contractual arrangements and Strategic Grants should be made
available because we think that this will provide the Executive Committee and full
Council with the flexibility needed to offer the most appropriate Shopping
arrangements.
f) There should be annual decision making about funding for the both the Shopping,
Investing and Giving parts of the framework.
We feel that annual decision making for all parts of the Shopping, Investing and
Giving funding framework represents the most appropriate way to manage the grants
budget at present. We feel that annual decision making about funding arrangements
is a more manageable process for the Council. Furthermore, annual decision making
should enable both the Executive Committee and the Grants Panel to schedule
specific dates for consideration of funding arrangements, in line with the Council’s
corporate calendar.
We recognise that there may be a need to reconsider this principle if our
recommendation for further work to be undertaken reviewing the potential use of
multi-year funding arrangements is approved. (For further information please refer to
page 38). Any such review could lead to recommendations that might conflict with
yearly decision making about funding arrangements.
Third Sector Task and Finish Review
33
Recommendation
One – Further
information
Recommendation
One: We recommend
that the Council
adopt a written
Grants Policy and
Procedure.
g) The Council’s Grants Panel should continue to make decisions about grants
awarded as part of the Investing and Giving side of the framework, although this will
be subject to members of the Grants Panel receiving training on assessing and
making decisions about applications for funding.
We believe that the grants involved in the Investing and Giving part of the funding
framework will be smaller than the funding awarded as part of the Shopping process.
Under these circumstances we feel it would be appropriate for the Executive
Committee to continue to delegate decision making for this part of the funding
framework to the Grants Panel.
We reviewed the work of the Grants Panel and agreed that the involvement of
Councillors in the grants process encouraged democratic accountability. However,
during the course of our review we were concerned to discover an absence of
training for members of the Grants Panel. We believe that some form of training
should be provided to all members of the Grants Panel, particularly in relation to
assessing grant application and monitoring forms. This training should be provided
prior to the Panel making decisions about funding to ensure that all decisions are
made in accordance with recognised standards of best practice.
34
Third Sector Task and Finish Review
Recommendation
One – Further
information
Recommendation
One: We recommend
that the Council
adopt a written
Grants Policy and
Procedure.
h) Decisions about grants and donations should be made in accordance with
assessment of need rather than in accordance with demographic considerations.
During the Consultation Event the criteria for assessing the distribution of funding to
third sector organisations was discussed. The majority of delegates were resistant to
distributing funding in accordance with demographic considerations. Instead, they
suggested that funds should be allocated according to needs: in terms of the needs
of third sector organisations and also the needs of the different social groups within
the Borough. As a Group we endorsed this view.
i) Organisations should demonstrate an outcomes focus in applications for funding.
We feel that one of the weaknesses of the current grants process is an absence of an
outcomes focus to funding arrangements. We feel that a grants system with an
outcomes focus represents best practice. An outcomes focus should not be
confused with a focus on outputs: outputs, in the context of a grants process, are the
activities and services that are provided as a consequence of funding, whilst
outcomes are the overarching changes that the organisation aims to achieve through
delivering those activities or services.
We believe that if an emphasis was placed on an outcomes focus the Council would
have access to more information about the likely consequences involved in funding a
particular project or activity, which would be useful when assessing applications.
Third Sector Task and Finish Review
35
Recommendation
One – Further
information
Recommendation
One: We recommend
that the Council
adopt a written
Grants Policy and
Procedure.
j) The Council’s funding application forms should be aligned with Worcestershire
County Council’s application forms.
During the course of our review we considered the impact of local authority
bureaucratic application arrangements on local third sector organisations. The
delegates at the Consultation Event explained that some organisations lacked the
capacity, particularly in the form of personnel trained to complete different types of
application forms, to devote to the application process.
In part, this situation could be addressed through investing in training that would
develop skill sets within those organisations. (For further information about Investing
please refer to Appendix A and pages 43 – 44). We discussed application processes
with Officers from Worcestershire County Council and suggested that by aligning our
application forms we might be able to simplify application processes within
Worcestershire to the benefit of local third sector organisations. The Officers at
Worcestershire County Council were supportive of this proposal.
k) Monitoring arrangements should be commensurate with the size of the grant
provided.
We believe that the information required from organisations for monitoring should be
more detailed for organisations in receipt of greater sums of money than for
organisations in receipt of smaller grants. This is required under current
arrangements but we feel it should also be specified in the written policy.
36
Third Sector Task and Finish Review
Recommendation
One – Further
information
Recommendation
One: We recommend
that the Council
adopt a written
Grants Policy and
Procedure.
l) Organisations should be able to secure full cost recovery with all applications for
full cost recovery being assessed on a case by case basis.
During the Consultation Event full cost recovery was discussed with delegates.
Participants were in agreement that provision should be made for full cost recovery
where appropriate. They explained that when full cost recovery arrangements were
not made available third sector organisations often were placed in a position where
they could find it difficult to fund the staff required to administer a project or activity for
which funding had been approved. Under these circumstances the continued
delivery of that activity or project could be threatened.
Full cost recovery should not be confused with funding core costs. Full cost recovery
involves sharing an organisation’s core costs among its projects or areas of work.
The share of the core costs allocated to each project should be directly related to the
amount of the core costs that will be required to deliver that project. Moreover, full
cost recovery need not necessarily entail large grant settlements, as it may relate to
covering basic administrative or minimal staffing costs for a small third sector
organisation.
We feel that on balance, to ensure the sustainability of the projects to which we
award funding, the Council should make full cost recovery arrangements available.
These should be requested by applicants on a case by case basis to ensure that full
cost recovery is only made available where appropriate.
Third Sector Task and Finish Review
37
Recommendation
One – Further
information
Recommendation
One: We recommend
that the Council
adopt a written
Grants Policy and
Procedure.
m) Small grants should be regarded as sums valued at a maximum of £5,000 and
large grants should be regarded as grants valued at over £5,000.
As a Group we discussed the appropriate sizes for the various grants that could be
made available as part of the Investing and Giving parts of the funding framework.
We agreed that both small and large grants should be made available as we
recognised that organisations might require a variety of sums to support different
projects and activities. This was confirmed by delegates during the Consultation
Event.
We assessed arrangements in place at other local authorities as part of this
discussion. There were local variances, but sums valued at under £5,000 were
frequently regarded as small grants in many local authorities, including Gloucester
City Council. We therefore believe that this interpretation of the appropriate sizes of
small and large grants is based on examples of best practice.
Our specification for what constitutes a small grant as opposed to a large grant has
implications for the Council’s monitoring arrangements. (For further information
about the Council’s monitoring arrangements see recommendation 1k, page 36).
38
Third Sector Task and Finish Review
Recommendation
Two a – Further
information
Recommendation
Two a
We recommend that the Council’s purpose for funding the third sector should
be aligned to the following mission statement “Redditch Borough Council
supports Voluntary and Community Sector organisations because we believe
that a vibrant third sector is vital to our community”.
Throughout our review we felt that it was important to establish what the Council’s
purpose for providing funds to the third sector should be. As a group we agreed that
the purpose for providing funding was important and that it should inform the
Council’s grants process.
We discussed the purpose of the grants process with all of our expert witnesses.
Following our interviews with the expert witnesses we came to the conclusion that
there was no agreed purpose for the Council’s grants process. This does not appear
to be untypical in the context of local government as few external authorities appear
to have an approved purpose for their grants processes.
We decided that it would be appropriate for us to develop a mission statement that
could encapsulate what we felt should be the purpose of the grants process. This
mission statement was developed with a view to demonstrating the Council’s
commitment to continuing to support the third sector because of the contribution that
they make to the local community. Indeed, we feel that this mission
Third Sector Task and Finish Review
39
Recommendation
Two a – Further
information
Recommendation
Two a: Aligning the
Council’s purpose for
funding the third
sector to the mission
statement
Recommendation
Two b
statement will become increasingly significant over the next few years as third sector
organisations are invited to deliver more public services in line with central
government advice.
We feel that commitment to supporting a vibrant third sector, as stated in this mission
statement, is also in keeping with one of the Council’s new priorities: ‘Enterprising
Community’. This represents a commitment to supporting organisations that could
deliver projects and activities which might have a beneficial impact on the local
community in a variety of ways.
We recommend that the criteria for grants applications be aligned to the
Redditch Sustainable Community Strategy priorities.
As part of the current grants process the Council’s criteria for grants applications is
aligned to the Redditch Sustainable Community Strategy themes. There are six
themes in the Sustainable Community Strategy: communities that are safe and feel
safe; a better environment for today and tomorrow; economic success that is shared
by all; improving health and well-being; meeting the needs of children and young
people; and stronger communities. We felt that these themes were extremely broad
and that they could be used to justify awarding funds to any project. As a group we
questioned whether this arrangement represented value for money and felt that
change was required (for more information about the Redditch Sustainable
Community Strategy please refer to Appendix B).
40
Third Sector Task and Finish Review
Recommendation
Two b – Further
information
Recommendation
Two b: the criteria for
grants applications
be aligned to the
Redditch Sustainable
Community Strategy
priorities.
We believe that aligning the criteria for grants applications to the Redditch
Sustainable Community Strategy priorities would be appropriate for the following
reasons:
• it demonstrates Redditch Borough Council’s commitment to meeting the needs of
our local residents;
• it demonstrates our commitment to working in partnership with the third sector to
meet local needs;
• it demonstrates Redditch Borough Council’s commitment to other local partners;
• the Redditch Sustainable Community Strategy priorities currently correspond with
Redditch Borough Council’s priorities;
• the Sustainable Community Strategy priorities are more specific than the themes,
which should help to ensure that projects which receive funding are consequently
aligned to a more defined criteria than under current circumstances; and
• the Sustainable Community Strategy priorities correspond with the purpose for
funding third sector organisations that we are proposing in recommendation 2a.
Third Sector Task and Finish Review
41
Recommendation
Two b – Further
information
Recommendation
Two b: the criteria for
grants applications
be aligned to the
Redditch Sustainable
Community Strategy
priorities.
During the Consultation Event we suggested that aligning the criteria for grants
applications to the Redditch Sustainable Community Strategy priorities might be one
of our proposals. The majority of delegates were supportive of this proposal. They
recognised that the Council needed to apply some form of criteria when assessing
applications for funding. This convinced us that we would receive support from the
third sector for this alteration to the grants process.
However, we are aware that there is no guarantee that the priorities of the Redditch
Sustainable Community Strategy will remain aligned to the Council’s priorities or that
the Sustainable Community Strategy document will remain a permanent fixture of
local government. Therefore, we agreed that this arrangement should be reviewed
frequently and should not be recorded in the Council’s Policy and Procedure
document.
42
Third Sector Task and Finish Review
Recommendation
Three – Further
information
Recommendation
Three
We recommend that the Shopping, Investing and Giving funding framework be
adopted for the Council’s grants process.
Increasingly, central government has been promoting the benefits of Shopping,
Investing and Giving, as a flexible funding framework. (More detailed information
about Shopping Investing and Giving can be found in Appendix A).
This framework is designed to broaden the funding opportunities available to third
sector organisations. Shopping refers to the Council choosing an organisation to
deliver a service or project on their behalf. Shopping arrangements can be
implemented in a variety of ways including through contracts or Strategic Grants (see
recommendation 1e, page 32).
Investing refers to the Council providing funding to develop capacity in the third
sector. Investing arrangements can include the allocation of grants to local
infrastructure organisations to help build capacity within third sector organisations.
Investing can also involve providing grants or donations to organisations to address
training needs or to help develop a business plan for an organisation or project.
Giving refers to the Council providing funding to Voluntary and Community Sector
organisations to support their independent roles. This generally entails the provision
of standard grants and donations to third sector organisations.
Third Sector Task and Finish Review
43
Recommendation
Three – Further
information
Recommendation
Three: We
recommend that the
Shopping, Investing
and Giving funding
framework be
adopted for the
Council’s grants
process.
Worcestershire County Council currently operates a model of Shopping, Investing
and Giving. This funding framework was introduced following a best value review
which had concluded that improvements could be made to the Council’s grants
process. The Council has been cited as an example of best practice since they
introduced the Shopping, Investing and Giving funding framework.
We feel that the Shopping Investing and Giving funding framework would be suitable
for Redditch Borough Council because:
• it ensures that there can be flexibility in the provision of financial support to third
sector organisations;
• it creates numerous opportunities to work in partnership with third sector
organisations;
• it is the same model as that which has already been implemented at
Worcestershire County Council, which should help to clarify funding requirements
to the benefit of local third sector organisations;
• the investing arrangements could help to address some of the potential problems
with dependency on Council sources of funding, (as detailed on page 14); and
• it corresponds with central government guidance.
44
Third Sector Task and Finish Review
Recommendation
Four – Further
information
Recommendation
Four
We recommend that the Council officially endorse the Worcestershire
Compact.
The Worcestershire Compact agreement is an agreement between the Statutory
Sector and the third sector. The agreement sets out how organisations from both
sectors can work together to deliver the best services possible to people within
Worcestershire (the Worcestershire Compact, 2006).
The Compact originated in the form of a national Compact, which was agreed by
central government and the third sector in 1998. The national Compact represented
an agreement between partners for mutual development in their working relations.
The Worcestershire Partnership co-ordinated the negotiation of the Worcestershire
Compact, which was launched at an ‘Improving Voluntary and Community
Involvement in Worcestershire’ event in June 2006. The Worcestershire Partnership
established a subsidiary body, the Engaging Worcestershire Steering Group, to
maintain and monitor the Worcestershire Compact.
Local Compact agreements have been developed and agreed in Counties across the
Country. Compact agreements contain principles outlining best practice for
maintaining relations between the statutory and third sector. We discovered during
our review that an absence of familiarity with local Compact arrangements appeared
to be fairly common across local government.
Third Sector Task and Finish Review
45
Recommendation
Four – Further
information
Recommendation
Four: We recommend
the Council officially
endorse the
Worcestershire
Compact
However, during the course of our interviews with external expert witnesses we
discovered that embedding the principles contained within a local Compact in a
Council’s working practices was regarded as a key element in best practice grants
processes. Officers from both Gloucester City Council and Worcestershire County
Council explained that they were anxious to ensure that their local Compact
agreements were embedded in working practices at their Councils.
We feel that embedding the principles of the Worcestershire Compact into working
practices would represent best practice for Redditch Borough Council. Unfortunately,
during the course of the review it became apparent that the Worcestershire Compact
had never been officially endorsed by the full Council in Redditch. We believe that
this situation is unacceptable. We are therefore recommending that Redditch
Borough Council officially endorse the Worcestershire Compact agreement.
46
Third Sector Task and Finish Review
Recommendation
Five – Further
information
Recommendation Five
We recommend that further work be undertaken into the following issues:
During the course of our review we became aware of a number of areas relevant to
the subject of our review which we felt required further consideration. Unfortunately,
due to the narrow scope of our review, we did not feel that it would be appropriate for
us to investigate these issues in further detail. For that reason we are recommending
that further work be undertaken to address the issues detailed in recommendations
5a-5f.
We have not provided any specifications for the arrangement of these additional
reviews. We recognise that these reviews could be conducted by a number of
different groups including: another Task and Finish Group; a Council Advisory Panel;
a statutory Committee; an Officer review group; or by a subsidiary group of a local
partnership organisation.
In part, the appropriate style of review will be determined by the subject and the
availability of Council resources to commit to that review. Under these circumstances
we feel that the Executive Committee, advised by senior Officers, should decide
which review arrangement would be appropriate for each recommended piece of
further work on a case by case basis.
Third Sector Task and Finish Review
47
Recommendation
Five – Further
information
Recommendation Five
a: We recommend
that further work be
undertaken
We recommend that there be... a review of ways to enhance Voluntary and
Community Sector involvement in the Redditch Partnership.
The Redditch Partnership is the Local Strategic Partnership in Redditch. Local
Strategic Partnerships bring together representatives from public, private, community
and voluntary agencies to work together to identify improvements that are needed in
local service delivery which cannot be made by any one organisation working alone.
The partnership approach allows the Local Strategic Partnership to plan and deliver a
range of projects, services and initiatives that meet these identified needs.
The Redditch Partnership has a board of Directors. At present, there is one third
sector representative on this board. We feel that further opportunities for involving
representatives of the third sector in the work of the Redditch Partnership could be
explored.
During the Consultation Event the issue of the involvement of representatives of the
third sector in the Redditch Partnership was raised during the concluding question
and answer session. Delegates were broadly in favour of there being more
opportunities for representatives of the third sector to get involved in the work of the
Redditch Partnership.
48
Third Sector Task and Finish Review
Recommendation
Five – Further
information
Recommendation Five
a: We recommend
that further work be
undertaken
We recognise that the Redditch Partnership is a body which operates separately from
Redditch Borough Council. Under these circumstances, if this recommended piece
of further work is approved, we think that it might be appropriate for the review to be
undertaken by a subsidiary group of the Redditch Partnership.
Recommendation Five
b
We recommend that there be... a review of the Council’s provision of non-grant
support to the Voluntary and Community Sector.
We were provided with a very specific scope for our review. We were tasked with
scrutinising the Council’s approach to awarding grants and donations to third sector
organisations. We recognise, however, that the Council provides additional forms of
financial support to third sector organisations which we were not tasked with
reviewing. These additional sources of financial support include the following:
peppercorn rents; discretionary rate relief; discounted access to services; partnership
agreements; and financial contributions from the civic fund.
Throughout the exercise we recognised that these additional sources of financial
support were of importance both to the third sector and to the Council, particularly in
the current economic climate. Consequently, we feel that the arrangements for
providing this additional support should be reviewed to ensure that they are fit for
purpose both for the Council and for local third sector organisations.
Third Sector Task and Finish Review
49
Recommendation
Five – Further
information
Recommendation Five
c: We recommend
that further work be
undertaken
We recommend that there be… a review of how the Council should meet its
responsibilities as set out in the Worcestershire Compact agreement.
We feel that the official endorsement of the Worcestershire Compact agreement, as
set out in recommendation four, should be only the first stage involved in embedding
the principles of the Worcestershire Compact agreement into working practices at the
Council. As a Group we believe that the principles contained within the
Worcestershire Compact agreement represent best practice for managing relations
between the Council and the third sector. For this reason we agree that a review of
how the Council should meet its responsibilities as set out in the Worcestershire
Compact agreement would be a worthwhile exercise.
Recommendation Five We recommend that there be… a review of how the six equalities strands could
d be embedded in the working practices of Redditch Borough Council and the
Redditch Partnership.
There are six equalities strands which have been recognised in consecutive pieces of
legislation: age; disability; gender; race; religion or belief; and sexual orientation. As a
Group we are aware that the subject of equalities and diversity is increasingly
regarded as an important area for consideration in a public sector context. We
therefore feel that it is important for the Council to review how these equalities
strands should be embedded in local working practices, particularly the grants
process.
50
Third Sector Task and Finish Review
Recommendation
Five – Further
information
Recommendation Five
e: We recommend
that further work be
undertaken
We recommend that there be… a review of the Council’s procurement code.
The ‘Shopping’ element of the Shopping, Investing and Giving framework is about
procuring services as defined by the Council. We think that the Council should take
steps to ensure that third sector organisations are able to access funding from the
Council through routes other than open grant funding. This is because we recognise
the importance of a mixed economy of service delivery, and that there are some
services where the best provider may be a third sector organisation.
Currently, we do not feel that third sector organisations have equitable opportunities
to tender for Council contracts. Areas for further consideration include: reviewing the
use of a 25% turnover limit for any single contract, which is disproportionately
prohibitive for third sector organisations; reviewing how to give appropriate weighting
to wider social benefits when selecting successful contractors; and reviewing how
contracts are parcelled up to make them more accessible to the most appropriate
providers.
We have concluded that the Council’s procurement rules and procedures should be
reviewed to ensure that they are not unnecessarily and disproportionately restrictive
to third sector organisations.
Third Sector Task and Finish Review
51
Recommendation
Five – Further
information
Recommendation Five
f: we recommend that
further work be
undertaken
We recommend that there be… a review of how multi-year funding
arrangements should be implemented as part of the Council’s grants process.
Multi-year funding arrangements were discussed during the course of our review.
Reports issued by central government departments have commented on some of the
benefits of multi-year funding arrangements, particularly in terms of ensuring the
sustainability of local third sector organisations or specific projects (HM Treasury,
2008). These have indicated that multi-funding arrangements should be considered
as a form of best practice in local funding arrangements.
Moreover, during the Consultation Event, a number of delegates suggested that the
Council should make multi-year funding arrangements available to the Council. They
explained that multi-year funding arrangements were useful because they could
provide third sector organisations with the financial security needed to ensure that
projects could be delivered over specific years.
We also discussed multi-year funding arrangements with our expert witnesses. We
learned that Gloucester City Council, regarded as an example of best practice,
offered multi-year funding arrangements. However, we felt that it was difficult to learn
from the experiences of implementing their multi-year funding arrangements as they
were only mid-way through their first implementation of a three year funding
arrangement.
52
Third Sector Task and Finish Review
Recommendation
Five – Further
information
Recommendation Five
f: We recommend that
further work be
undertaken.
We believe that multi-year funding could be introduced at Redditch Borough Council.
Multi-year funding arrangements can be managed effectively if organisations in
receipt of multi-year funding are required to develop a feasible exit strategy as part of
the application process.
However, we do not feel that we have gathered enough evidence during the course
of our review about multi-year funding to justify making any concrete
recommendations on the subject. We are aware that if the Council was to offer multiyear funding arrangements there would be less funding available from the grants
budget to award to third sector organisations in the form of one off grants and
donations. Indeed, the provision of multi-year funding could complicate management
arrangements for the grants process, particularly if multi-year funding arrangements
were offered year-on-year to third sector organisations.
However, clearly, there is support, both within the third sector and at a central
government level, for the provision of multi-year funding arrangements. Under these
circumstances we feel that a review specifically focusing on how multi-year funding
arrangements could be implemented by the Council would be appropriate.
Third Sector Task and Finish Review
53
Potential
Recommendation –
Further information
Potential
Recommendation Six
We recommend that… subject to the successful submission and approval of a
revenue bid, the Council introduce a clerical support role in the policy team to
support the grants process; or
subject to funding using a portion of the grants budget the Council introduce a
clerical support role in the policy team to support the grants process.
As a Group we are aware that the recommendations that we have included within this
report, if approved, will require Officers to commit more time to working on the grants
process than currently occurs. Additional Officer support will be required if these
working arrangements are to be implemented in an efficient manner.
We were aware that various options for providing Officer support could be pursued by
the Council. However, we were unable to come to any conclusions about the most
appropriate way to provide or to fund that Officer resource. We therefore requested
that the Overview and Scrutiny Committee consider a number of options and approve
a final recommendation. This was duly undertaken at a meeting of the Committee on
17 December and the sixth recommendation, as recorded in this report, was agreed
accordingly.
During consideration of this sixth recommendation the Committee was informed that
at the Voluntary Sector Grants Consultation Event a number of delegates had
expressed satisfaction with the existing level of Officer support that was being
54
Third Sector Task and Finish Review
Recommendations –
Further information
Potential Additional
Recommendation Six:
Officer Support
provided. Instead, some delegates had suggested that the Council should focus on
working with local infrastructure organisations to build capacity within the sector.
Indeed, during our review we had considered the possibility of outsourcing
management of the grants process to a relevant body, such as a local infrastructure
organisation. This could have helped to reduce associated staffing costs for the
Council, though there might have been costs involved in contracting out to another
organisation to deliver the service.
However, the majority of delegates during the Consultation Event were in support of
the Council retaining at least one Officer to administer the grants process. The
existing Officer support provided by the Council was considered important both as a
source of advice about the grants process and as the conduit for maintaining positive
relations between the Council and third sector organisations. Under these
circumstances we would be concerned about outsourcing this role to an external
agency as it could have a detrimental impact on relations between the Council and
third sector organisations.
Instead, as agreed by the Overview and Scrutiny Committee, we are recommending
that the Council introduce a clerical support role in the Council’s Policy Team.
Responsibility for managing the grants process is currently located within the Policy
Team. At the moment an Officer on a relatively senior scale administers the grants
process. The clerical support role could be introduced to provide cover for the
Third Sector Task and Finish Review
55
Recommendations –
Further information
Potential Additional
Recommendation Six:
Officer Support
administrative duties associated with the grants process. This would provide more
senior Officers within the Policy Team with the time to commit to the additional tasks
involved in coordinating the grants process in the form we are recommending.
We understand that it may be difficult for the Council to finance this role. (For more
information about the costs involved please refer to Appendix C). However, we feel
that funding the role, through a successful revenue bid, would be the preferable
method for financing the position. This would mean that money would not be
diverted from the grants budget, and would thereby ensure that more funds would be
available to distribute to third sector organisations.
We have also provided an alternative option for financing the post: that subject to
funding using a portion of the grants budget, a clerical support role be introduced.
This would be our second preference option and we suggest that this should only be
considered if there is no support for the revenue bid option.
The benefits of this second preference arrangement would be that the Council would
not need to utilise additional sources of funding to support the Officer post. However,
we are concerned that this arrangement would divert a significant portion of the
grants budget from the provision of direct funding to third sector organisations.
Moreover, participants in the Consultation Event indicated that they would be
opposed to funding an Officer role using a portion of the grants budget. We therefore
urge the Executive Committee to seriously consider our preferred method of
submitting a revenue bid to fund the post.
56
Third Sector Task and Finish Review
Conclusion
At the start of this review we set out to establish what improvements could be made
to the Council’s process for awarding grants and donations to third sector
organisations. We have undertaken a thorough scrutiny exercise and we feel that we
have achieved what we set out to do.
We urge you to approve the recommendations that we are making in this report as
we feel that they will make the Council’s funding arrangements fit for purpose in
future years.
Third Sector Task and Finish Review
57
Consultation Event
- Expert Witnesses
We would like to thank the following representatives from the Voluntary and Community Sector for
contributing to the review by attending the Voluntary Sector Grants Consultation Event on 21
November.
The Advocacy Team
Ms Carol Yates
Age Concern
Ms Sue Moreve
1st Birchensale Scout
Group
Mr Bob Summers
Borough Tenants Panel
Mr Mike Chawner
Citizens Advice Bureau
Ms Moira Morris
Mr Tony Ventura
Carers Careline
Caribbean Roots
Connection
Church Hill Scouts
Group
CSV Training and
Enterprise West
Midlands - Redditch
58
Mr Philip Hunt
Mrs Veronica Allen
Mr Ruel Diarem
Mr David Casey
Mrs Irene Casey
Ms Diane Mowatt
Ms Sue Williams
Third Sector Task and Finish Review
Consultation Event
- Expert Witnesses
Help the Aged
Mr David Loveridge
North Worcestershire Mr Jim Smith
Dial In Connect
Talking Drums
The Prince’s Trust
Ms Beth Haining
Mr Alex Lamb
Redditch Association Mr Bill Payne
for the Blind
The Redditch Disabled Mr Martyn Lawes
Access Group Mr John Mann
Ms Lisa Stokes
RICA
Mr Bas Colaco
The Sandycroft Ms Lee McKenzie
Wellbeing Centre
West Indian Association Ms Ingrid Mullings
Third Sector Task and Finish Review
59
Expert Witnesses
Gloucester City
Council
Alison Kite
Tessa Liebschner
(Voluntary and Community Development Team Leaders)
Worcestershire
County Council
Suzy James (Voluntary and Community Sector Unit Co-ordinator)
Gordon Stewart (Contracts Manager, Adult and Community Services Directorate)
Questionnaire
Respondent
One local authority completed the Task and Finish Group’s questionnaire. All details regarding this
response have been treated as confidential. However, the Task and Finish Group wish to thank the
local authority for their help.
Councillors – Political Councillor Carol Gandy, Leader of the Conservative Group
Party Group Leaders Councillor Malcolm Hall, Leader of the Liberal Democrat Group
Councillor Bill Hartnett, Leader of the Labour Group
Redditch Borough
Council Officers
Sue Hanley, Acting Deputy Chief Executive
Angie Heighway, Head of Strategy and Partnerships
Peter Rose, Policy Officer
The following individuals were unable to attend the Voluntary Sector Grants Consultation Event.
They instead provided information for the consideration of the Group.
60
Community Relations
Council
Mrs Madge Tillsley MBE
Redditch Arts Council
Mr Jonathan Cochrane
Third Sector Task and Finish Review
Additional Thanks
Portfolio Holder for
Corporate
Management
Officers
The Third Sector Task and Finish Group would like to thank Councillor Michael Braley for attending
two meetings of the Task and Finish Group to consider their proposals for the Voluntary Sector
Grants Consultation Event. The Group were also grateful for Councillor Braley’s attendance during
the Consultation Event.
The Third Sector Task and Finish Group would like to thank the following Officers for their help with
the Voluntary Sector Grants Consultation Event.
Matthew Bough (Housing Policy and Performance Manager);
Bob Foxall (Caretaker)
Sue Hanley (Acting Deputy Chief Executive)
Angie Heighway (Head of Strategy and Partnerships)
Peter Rose (Policy Officer)
Helen Saunders (Overview and Scrutiny Support Officer)
Angelo Vallbona (Caretaker and Caterer)
Ivor Westmore (Member and Committee Support Services Manager)
Third Sector Task and Finish Review
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Appendix A
Shopping, Investing
and Giving
Shopping, Investing and Giving: A Framework for Voluntary Sector Funding
The Third Sector Task and Finish Group has been looking at a framework for
voluntary sector funding that is used by some other Councils, called Shopping,
Investing and Giving.
This framework is designed to broaden the funding opportunities available to Third
Sector organisations. The following details may help to clarify the arrangements for
this funding framework:
Shopping refers to the Council choosing an organisation to deliver a service or
project on their behalf. This involves:
• the Council defining what service or project will be delivered;
• an open procurement process where one or more organisations are selected to
deliver the service or project. As part of this open procurement process each
interested organisation states how much funding they would require to deliver the
service or project; and
• signing a contract agreeing the level of funding to be provided and the service or
project that will be delivered in return for that funding.
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Third Sector Task and Finish Review
Appendix A
Shopping, Investing
and Giving
Shopping, Investing and Giving: A Framework for Voluntary Sector Funding
Investing: Investing refers to the Council providing funding to develop the capacity
of the voluntary and community sector. As part of this process:
• the Council may contribute funding to infrastructure support services; and
• the Council may provide funding for training or business planning activities within
organisations.
Giving: Giving refers to the Council providing funding to Voluntary and Community
Sector organisations to support their independent roles. As part of this process:
• the Council may provide themes or priorities for funding, but the detail of services
or projects will be defined by the organisation applying for funding; and
• approved grants will have mutually-agreed outcomes and appropriate monitoring
arrangements.
Third Sector Task and Finish Review
63
Appendix B
Redditch Sustainable
Community Strategy
Sustainable Community Strategy 2008-2011: Summary
The Redditch Sustainable Community Strategy establishes the overall strategic
direction and long term vision for Redditch. It contributes to meeting the social,
economic and environmental needs of the area, helping to improve the lives of local
people, both now and in the future.
The strategy has been developed by Redditch Partnership, which brings together
representatives from public, private, community and voluntary agencies to work
together to deliver a range of local projects, services and initiatives. Redditch
Partnership will manage the implementation of the Sustainable Community Strategy
and report on the delivery of its actions.
The strategy has been developed in consultation with all partners. A draft strategy
was open to public consultation during May and June 2008, and the final strategy
takes account of comments received during this process.
The Redditch Sustainable Community Strategy reflects the structure of the
Worcestershire Local Area Agreement by using six key themes. The Local Area
Agreement has been approved by Central Government as setting out the key
priorities of Worcestershire. By reflecting this structure, Redditch Partnership can
contribute effectively to the Local Area Agreement alongside focussing on the
specific issues relevant to Redditch Borough.
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Third Sector Task and Finish Review
Appendix B
Redditch Sustainable
Community Strategy
The themes and priorities of the Redditch Sustainable Community Strategy
are:
Theme: Communities that are safe and feel safe
We want to develop strong and confident communities in which residents are safe
both in their homes and when out and about in Redditch Borough. We are
committed to reducing crime and disorder, improving the quality of life for local
communities and creating a safe environment for those who live, work and visit
Redditch Borough.
Our priorities under this theme are:
•
•
•
•
•
•
to create safer communities;
to reduce crime and disorder;
to reduce the fear of crime;
to reduce anti social behaviour;
to tackle drug and alcohol abuse; and
to improve road safety.
Third Sector Task and Finish Review
65
Appendix B
Redditch Sustainable
Community Strategy
Theme: A better environment for today and tomorrow
We want the residents of Redditch Borough to benefit from the educational,
recreational and leisure potential of our environmental resources, whilst promoting,
preserving and enhancing the town’s biodiversity and sustainability.
Our priorities under this theme are:
• to develop a cleaner/greener and more sustainable environment;
• to tackle the issue of climate change and the impact of high levels of domestic and
workplace energy consumption;
• to reduce the amount of waste generated and increase the rates of recycling
across the borough
• to create an environment that is free from dog mess, litter, fly tipping and
abandoned vehicles;
• to increase participation in environmental projects; and
• to increase participation in environmentally-themed educational and recreational
activities.
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Third Sector Task and Finish Review
Appendix B
Redditch Sustainable
Community Strategy
Theme: Economic success that is shared by all
We want to ensure that all those living in Redditch Borough have the opportunity to
share in the economic success of the Borough. We aim to provide means to
overcome the economic barriers that still exist for many residents, and improve
quality of life for all.
Our priorities under this theme are:
• to increase the rate of employment opportunities;
• to increase support for local businesses;
• to look at ways of diversifying working opportunities to reduce reliance on
traditional industries;
• to increase investment from outside Redditch;
• to improve the skills base for Redditch;
• to reduce unemployment;
• to reduce pensioner poverty; and
• to develop the Town Centre as a destination with excellent facilities and transport
links.
Third Sector Task and Finish Review
67
Appendix B
Redditch Sustainable
Community Strategy
Theme: Improving health and well-being
We want to improve the health of the residents of Redditch Borough by providing
excellent access to healthcare services and promoting healthy lifestyles. We aim to
sustain the positive trends highlighted in the Health Profile for Redditch, and ensure
that we are ready and able to adapt to changing health needs.
Our priorities under this theme are:
•
•
•
•
•
•
•
•
68
to reduce rates of premature death in Redditch;
to promote healthier lifestyles;
to promote healthy eating and improve diets;
to tackle childhood and adult obesity;
to reduce the number of smokers;
to tackle mental health issues;
to improve access to healthcare facilities; and
to improve preventative healthcare services.
Third Sector Task and Finish Review
Appendix B
Redditch Sustainable
Community Strategy
Theme: Meeting the needs of children and young people
Children and young people are the future of Redditch Borough. We want young
people to thrive socially, educationally and economically. We aim to engage young
people in the lives of their communities promote their achievements and enable their
views to help shape the future of Redditch Borough.
Our priorities under this theme are:
• to improve the opportunities for young people;
• to increase the number of 16-18 year olds in full time education, employment or
training;
• to increase the available activities/facilities for young people;
• to listen to young people and value their opinions; and
• to increase the percentage of students obtaining five A* to C grades at GCSE.
Third Sector Task and Finish Review
69
Appendix B
Redditch Sustainable
Community Strategy
Theme: Stronger communities
We want all residents of Redditch Borough to feel that they are a valuable part of the
community. We are committed to providing the infrastructure and services to enable
people to contribute to the life of the Borough, and benefit from the opportunities
available.
Our priorities under this theme are:
•
•
•
•
•
•
•
70
to increase the availability affordable housing;
to improve access to public transport services;
to increase alternatives to the use of the car;
to increase access to services;
to improve cultural and leisure activities;
to strengthen the role of the voluntary sector; and
to develop greater community cohesion.
Third Sector Task and Finish Review
Appendix B
Redditch Sustainable
Community Strategy
Progress against the Redditch Sustainable Community Strategy will be managed by
the Redditch Partnership Management Board. The bi-monthly meetings will receive
and monitor reports on progress from Task and Finish Groups and existing groups
and networks with which formal links have been created.
The Management Board will make progress reports publicly available, and will take
action to address areas that need attention. Members of Redditch Partnership can
raise points for consideration by the Management Board to ensure an inclusive and
effective structure. The yearly meeting of Redditch Partnership will formally review
overall progress towards achieving the vision of the Redditch Sustainable
Community Strategy, and hold the Management Board to account.
Third Sector Task and Finish Review
71
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Third Sector Task and Finish Review
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Third Sector Task and Finish Review
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78
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Third Sector Task and Finish Review
Glossary
Core costs
Donations
Engaged Funding
Fledgling organisations
Full Cost Recovery
Project Grants
Shopping, Investing
and Giving
Core costs are the costs of an organisation that are necessary for an organisation to operate but do
not relate specifically to one project. Typically they include overall management, administration and
premises costs that relate to the whole organisation.
Donations are funds that are awarded to organisations without there having been a formal process.
At Redditch Borough Council donations tend to be awarded to organisations following direct
lobbying by those organisations for funds.
For engaged funding arrangements “the funder and applicant organisation work closely together to
develop a funding proposition, and then are engaged as equals in the process of grant
management” (J Unwin, quoted by the I&DeA, 2008).
Fledgling organisations: There is no definition of what constitutes a “fledgling” organisation.
Full cost recovery is the process of sharing an organisation’s core costs among its projects or
areas of work. The share of core costs allocated to each project should be directly related to the
amount of the core costs that will be required to deliver that project.
Project Grants are a source of funding which is currently provided at Redditch Borough Council.
Third sector organisations can apply for Project Grants valued at up to £10,000. Applicants must
demonstrate that the Project Grant will be used to finance new work. Project Grants are not
designed to cover core costs.
Shopping Investing and Giving is a funding framework. Further information about Shopping,
Investing and Giving is provided in Appendix A to this report.
Third Sector Task and Finish Review
81
Glossary
Start-up Grants
Redditch Partnership
Third Sector
Worcestershire
Partnership
82
Start-up Grants is a type of fund which is available as part of Redditch Borough Council’s current
grants process. New and fledgling organisations are eligible to apply for Start-up Grants.
Applicants can apply for grants valued at up to £1,000.
The Redditch Partnership is the Local Strategic Partnership in Redditch. Local Strategic
Partnerships bring together representatives from public, private, community and voluntary agencies
to work together to identify improvements that are needed in local service delivery that cannot be
made by any one organisation working alone. The partnership approach allows the Local Strategic
Partnership to plan and deliver a range of services and initiatives that meet these identified needs.
For the purposes of this review we interpreted third sector as referring to the Voluntary and
Community Sector.
The Worcestershire Partnership is the County Local Strategic Partnership for Worcestershire. A
number of local agencies are represented on the Worcestershire Partnership including; the local
County and District Councils; public services such as health, learning providers, police and
probation; local businesses and the third sector.
Third Sector Task and Finish Review
Overview &
Scrutiny Contacts
For additional copies of this report, or to find out more about Overview & Scrutiny at
Redditch Borough Council please contact:
Jess Bayley, Overview & Scrutiny Support Officer
[email protected] 01527 64252 (3268)
or
Helen Saunders, Overview & Scrutiny Support Officer
[email protected] 01527 64252 (3267)
1
Overview & Scrutiny
Committee Services
Redditch Borough Council
Town Hall
Walter Stranz Square
Redditch
B98 8AH
Overview & Scrutiny at Redditch Borough Council
83