Issue - meetings

To consider a report by the Head of Community regarding the Council’s grant funding agreements for the voluntary sector that cease on 31st March 2016 to consider how, or if, the funding should continue over a new four year term. 

i.  That funding is ceased to the Huntingdon Shop Mobility scheme with no further grant award for 2016/17, on the basis that:

a)  it has not met the performance conditions within the existing grant award in not achieving additional matched external funding; and

b)  that this is not a service that the Council provides across its other major towns.

ii.  That the remaining five funded organisations be informed of continuation of Huntingdonshire District Council (HDC) funding for the financial year 2016/17 at the same existing grant level subject to:

a)  confirmation and funding evidence from each group of its continued financial/operational viability (including identification of other funding streams which that is dependent upon); and

b)  notification of a fundamental review of HDC Voluntary Sector Grant Funding system during 2016/17 as per the resolution detailed in (iii) below.

iii.  That an HDC led Working Group of appropriate Members and Officers of both the District and County Councils be established to review the Voluntary Sector Grant Funding system, on the principles of:

a)  tapering funding from 2016/17 in line with the District Councils overall Medium Term Financial Strategy and as detailed in Paragraph 3.1.3 Option 2 of the submitted report;

b)  a commissioning and outcomes model with funding focused upon infrastructure organisations, taking due account of the National Association for Voluntary and Community Action (NAVCA) ‘Change for Good’ report and in particular Recommendation 14 of that report as expressed at Paragraph 3.2.2 Option B of the submitted report; and

c)  the Working Group to conclude its recommendations direct to the Cabinet no later than end July 2016.

iv.  That the Council expect funded organisations to undertake an efficiency review of their individual business on a ‘Lean’ or Zero Based Budgeting concept approach, which the Council could assist with and for which support should be sought from the NAVCA and from the Hunts Forum for Voluntary Organisations as representative of voluntary sector organisations. 

By way of a report by the Head of Community (a copy of which is appended in the Minute Book) the Cabinet received a report on the Council’s Voluntary Sector Grant fund.  The Council’s grant funding agreements for the voluntary sector expired on 31st March 2016 and a report was presented to the Cabinet on how, or if, the Council should continue to grant fund the voluntary sector over another four year term.

Over the last three years the Council had operated a Voluntary Sector Grant fund. In 2015/16, the budget for the grants was £248,700 from which the following organisations were funded: Rural Cambridgeshire Citizens Advice Bureau; Disability Information Services Huntingdonshire; Hunts Forum for Voluntary Organisations; Care Network; Huntingdon Volunteer Centres; and  Huntingdon Shopmobility.

On the principle of needing to secure proper value for money and real community outcomes from the effective use of public funds, and on the basis that the six community organisations currently in receipt of such funds had already been notified of potential changes to the Council’s grant support, revised recommendations were proposed, which were supported by the Cabinet.

The Councils current financial objective was by March 2020 to reduce all budgets by 38% and Government guidelines stated that ‘voluntary sector organisations in receipt of public finances should not be treated disproportionately to those services directly provided by statutory authorities’.  On that basis the Cabinet expressed a preference for Option 2 as detailed in the submitted report, that the Voluntary Sector Grant Fund Budget be reduced equally over the term of the current Medium Term Financial Strategy by 38% by 2019/2020.

Having considered the various options for the future funding of voluntary sector grants as detailed within the submitted report, the Cabinet agreed that funding cease to the Huntingdon Shop Mobility scheme on the basis that it had not met the performance conditions within the existing grant award in not achieving additional matched external funding; and it was not a service that the Council provided across its other major towns.  Local businesses could consider offering financial support to the shop mobility service.

The Cabinet agreed that the Council continue to fund the remaining five organisations for the financial year 2016/17 at the same existing grant level subject to confirmation and funding evidence from each organisation of its continued financial/operational viability (including identification of other funding streams which it was dependent upon); and notification of a fundamental review of the Voluntary Sector Grant Funding system during 2016/17.

The Cabinet agreed that the criteria for receiving funding required significant review as the only obligation was to match external funding over two years to guarantee funding in the third year.  Organisations in receipt of funding were not required to deliver a report to demonstrate the public benefit they delivered.  The Cabinet were keen for the revised scheme to unite with Council policies and incorporate that funding would cease if defined targets were not achieved.  It was also important that other organisations were able to bid for funding.  ...  view the full minutes text for item 77

Details of the Voluntary Sector Grant Funding for 2016/17 to 2019/20 is to be presented to the Panel.

With the aid of a report by the Head of Community Services (a copy of which is appended in the Minute Book) the Voluntary Sector Grant Funding 2016/17 to 2019/20 report was presented to the Panel. Members were informed that the Council’s three year funding arrangement with the voluntary sector was ending on 31st March 2016 and the report sought the views of Members to inform a future funding arrangement.

In addition the Panel was told that funding for the Voluntary Sector Grant is being considered as part of the zero based budgeting of the main Council budgets and formed an integral part of the Medium Term Financial Strategy (MTFS). Members were informed that the Council’s current financial objective was to reduce all budgets by around 38% by March 2020 which would therefore be likely to result in an overall reduction of the voluntary sector budget.

The Panel was presented with five options for future voluntary sector funding budgets, which are:

·  Option 1 – make no change to the level of funding, currently at around £236k, allocated by the Council to the voluntary sector;

·  Option 2 – reduce the budget over the term of the MTFS, such that in year 4 the reduction of 38% is achieved;

·  Option 3 – reduce the budget in year 1 but then provide an equal annual payment equivalent to the same total amount of spend as Option 2;

·  Option 4 – reduce the budget to the value of the MTFS in year 4 with immediate effect; and

·  Option 5 – stop funding the Voluntary Sector with immediate effect.

Members noted that for the three years up 2015/16 the Council have provided grants to the following voluntary sector organisations:

·  Rural Cambridgeshire Citizens Advice Bureau;

·  Disability Information Services Huntingdonshire;

·  Hunts Forum for Voluntary Organisations;

·  Care Network;

·  Huntingdon Volunteer Centres; and

·  Huntingdon Shopmobility.

The Panel had been advised of three options with regards to the allocation of funding for the voluntary sector.

·  Option A was the continued funding to all the organisations that the Council funds;

·  Option B sought to reduce the number of organisations funding directly by the Council and engage with umbrella organisations that through their funding supports others; and

·  Option C was developing a joint commissioning approach for voluntary sector services at a District level with Cambridgeshire County Council.

The Panel expressed their concern that the options report had not been submitted earlier, following the initial review of this issue at the October meeting of the Panel, as it does not give Members the requisite time to fully consider the options available. In addition the Panel thought it was unfair that the Voluntary Sector would only be given a month’s notice before a potential reduction in funding following consideration of the budget in February.

Members had further concerns that the options report did not contain the effect a reduction of funding would have upon the organisations in receipt of voluntary sector funding. Furthermore the Panel would like to have seen the advantages the  ...  view the full minutes text for item 7