Agenda item

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. The Cabinet therefore agreed that a District Council 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.

The Cabinet expected 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 as a representative of voluntary sector organisations. The Cabinet were mindful that not all voluntary organisations had the expertise to undertake an efficiency review of their individual businesses and therefore the Council would offer assistance where possible, which would provide information as to the value of the service.

It was noted that one option for consideration by the voluntary sector was to create a multi-agency HUB to enable overhead costs to be divided.

Having been invited to address the Cabinet, prior to doing so the Chairman of the Overview and Scrutiny Panel (Communities and Customers) declared a non-statutory disclosable interest by virtue of his appointment as a Non-Executive Director of Hunts Forum for Voluntary Organisations in his capacity as a Cambridgeshire County Councillor. 

It was explained to the Cabinet that organisations in receipt of Voluntary Sector Grant funding had presented to the Panel meeting in October and the Panel were disappointed that a report on the options for future grant funding for the voluntary sector had not been submitted to an earlier meeting, given the funding agreements expired in March 2016.

The Panel had considered that rather than reduce the Voluntary Sector Grant Fund Budget by 38% the question should be the value for money the organisation delivered and whether other savings could be achieved if funding to an organisation was increased.

The Panel was keen on the option of the voluntary sector working together through an umbrella organisation funding arrangement as organisations would need to work closer in collaboration to the overall benefit of the local communities.

It was further explained to the Cabinet that there had been full support from the Panel for the formation of a Working Group to investigate funding options.

The Cabinet agreed that the outcome of the review of the Voluntary Sector Grant Funding would be more valuable if Cambridgeshire County Council were involved and that there was a significant role in the process for the Hunts Forum for Voluntary Organisations.  In concluding the debate the Cabinet,

RESOLVED

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.