Agenda item

The Panel is to receive the Voluntary Sector Grant Funding Working Group’s Final Report.

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 Working Group Final Report was presented to the Panel. The background information which subsequently led to the formation of the Working Group was outlined.

Members were informed that the Working Group had reviewed the existing funding arrangement and considered the following four options: option one is the termination of funding, option two is the continuation of existing arrangements, option three is a single contract award and option four is the award of two contracts.

The Panel was informed of the Working Groups opinions on each of the options and recommend that the Panel should recommend that Cabinet adopt option four of awarding two contracts along the lines of advice based services and infrastructure based services.

The Working Group recognises the value of the voluntary sector and did not support option one. Option two was rejected as it does not fit the commissioning and outcomes model and is not in line with National Association for Voluntary and Community Action guidance. Option three was found not to be cost effective as it would necessitate significant changes in the sector, which could prove costly; however it remains an option for future funding arrangements. The Working Group therefore decided that option four was the best option.

Members were pleased with the option presented as the report shows that the Working Group had carried out a lot of research and that the conclusions reached are well thought through.

Following a question regarding option one, Members were informed that option one still remains a possibility as the decision is Cabinet’s however the Working Group had considered other options but are recommending option four.

In response to a question regarding the funding of Shopmobility, the Panel was advised that the Working Group did not review funding arrangements with individual charities but reviewed the problems the voluntary sector are currently facing. In addition a procurement exercise would follow from the report and it is important not to show favour by naming individual organisations.

The Working Group informed Members of the three options they considered in relation to the duration of the contract. Option A is funding to 31st March 2020, Option B is alignment with the County Council contract which runs until 31st August 2017 and Option C is extending funding until 31st March 2021. The Panel was informed that the Working Group recommend Option C as the decision for awarding of funding beyond 2021 would be removed from the election timetable. Consequently this would mean that the voluntary sector funding could be considered and awarded apolitically.

Members supported the recommendation of Option C as a sensible idea as it means that the voluntary sector won’t be treated politically.

The Working Group considered how the funding should be allocated annually. Following the submission of the Voluntary Sector Grant Funding 2016/17 to 2019/2020 report at the Cabinet meeting in January 2016 the Cabinet adopted option two. However the Working Group thought this should be amended to option three of reducing the budget in year 1, but then providing an equal annual payment equivalent to the same total amount of spend as option 2 as they thought that this would allow organisations to better prepare and plan services if their income was consistent year on year.

Members were informed that the Working Group had considered the split of the funding and recommend that is should be split of 65% to 35% in favour of advice based services but with the flexibility for 10% either way. The reasoning for this was that the Working Group recognised the need for voluntary sector organisations to know how much they are bidding for but allow for the Council to award a greater or lesser proportion of the contract to an organisation based on the strength of their bid.

The timetable for implementation was outlined to Members with the recommendation that the existing Working Group is retained in order to develop the contract terms including performance metrics and reporting frameworks. The Panel was in favour of retaining the Working Group with the inclusion of Councillor P Kadewere.

In response to a question regarding how realistic is the timetable, Members were informed that the report will progress to Cabinet at its meeting in July 2016 and subject to their endorsement the timetable can be met.

Following concerns that the organisations won’t be able to fulfil the criteria in order to be awarded with a contract, Members were advised that it is up to the organisations to ensure that they are able to fulfil the criteria otherwise they won’t be awarded the contract.

Members were informed that the organisations that are allocated funding would be required to submit a biannual report and attend an Overview and Scrutiny Panel meeting so that Members can ensure that the funding is spent correctly and that the Council has value for money.

The Panel was advised that as the Working Group had recommended that the contracts should be four years in length this meant that there was a shortfall of £69k. The options considered were the following: option one was to reduce the scheme to £172k per annum from 2017/18, option two was reduce the Community Chest budget to meet the shortfall and option three was agree a growth item of £69k.

After some deliberation the Panel agreed to recommend to Cabinet that the budget for the scheme should grow by £69k, this is because Members recognise the valuable contribution the voluntary sector has upon the District. The Panel,

RESOLVED

1)  to recommend to Cabinet that the VCS Grant scheme should be awarded as two contracts. One contract for advice based services and the other for infrastructure based services.

2)  to recommend that Cabinet should extend funding until 31st March 2021.

3)  to recommend that Cabinet should amend the preferred overall budget model, as highlighted in the Voluntary Sector Grant Funding 2016/17 to 2019/2020 report submitted to Cabinet at its meeting in January 2016 to Option 3.

4)  to recommend to Cabinet that the funding split for the contracts should be 65% to 35% in favour of advice based services but with the flexibility through negotiated contract award of 10% either way.

5)  to recommend that Cabinet should retain the existing Working Group, with the inclusion of Councillor P Kadewere, in order to develop the contract terms including performance metrics and reporting frameworks.

6)  to recommend that Cabinet agree a growth item of £69k over the period of 2017 to 2021.

(At 8.30pm, after the consideration of this item, Councillor Mrs L A Duffy left the meeting.)