.

Contact: Janet Mein ext: 5468 e-mail: [email protected]

1. Introduction

1.1 At the Decision Day on 23 March 2006 the Arts Strategy for the period 2006 - 11 was approved. Integral to the strategy development was a review of the grant aid processes for both small and revenue grants. Review of the small grants process has resulted in the reshaping and reframing of both the scheme and application process. These are in place for the 2007/8 financial year. Review of the revenue grant process is the subject of this report.

1.2 The review of this process links into the Corporate Aim of Improving Services (Aim 5) by responding to the revenue clients expressed need for simplicity, clarity and reducing unnecessary bureaucratic processes that do not enhance efficient decision making.

2. Background

2.1 In 2006/7 the County Council made revenue grant awards amounting to £850,450 In this year application was received from 17 organisations. These organisation represent investment for the most part in the built arts infrastructure of Hampshire. This group has been making annual application with an expectation that there would be an annual inflation uplift. Within the group there are five visual arts organisations, four theatres, two touring theatre companies, two arts centres, one concert hall, one symphony orchestra, one music organisation and one dance agency. Hampshire County Council's investment in the sub regional joint investment fund is also funded from this budget. For list of organisations and the level of public investment see Appendix 1

2.2 In November 2004 it was agreed that Recreation and Heritage would move towards a funding framework that had a longer time frame. Specifically it was agreed that

· grants and other support for strategic partners to be the subject of more formal, longer term agreements

· where possible, agreement to be sought with other major funders on joint approaches to the funding of key partners

· greater emphasis on corporate and cultural strategy objectives as the basis for allocating and evaluating grants

· wider publicity for Recreation and Heritage grant programmes

· where appropriate, greater simplicity and standardisation in grant administration processes and documentation.

2.3 Of the revenue funded portfolio shown in Appendix 1 83% of the organisations are revenue funded by Arts Council England (ACE) and 72% by the relevant district. Only one organisation receives funding from neither of these sources.

3. Review

Process

3.1 All three funding partners (ACE, Districts and the County Council) require similar information to enable monitoring and accountability information to be presented. In the past Hampshire County Council has asked for specific additional information which created work load for clients but which did not materially impact on decision making about grants awarded. In the interests of both simplicity and developing a common language relative to performance of joint clients, bringing the format of the Hampshire revenue application and monitoring process closer into line with the other common funder, ACE, has much to recommend it. A proposed reformatted application and monitoring form is appended in Appendix 2

3.2 The list of organisations funded as revenue for the year 2006/7 has a range of grant levels in it ranging from £172,000 to £4,100. The same information for application was required from all these organisations and is, arguably, disproportionate where small sums are concerned.

3.3 As part of the Arts Strategy development it was proposed that the list be reviewed and that for these organisations it would be useful to bring into play the framework adopted in November 2004 by the Policy Review Committee as outlined above. It was also proposed that a revised list would be agreed that comprised key strategic organisations as defined by

_ their contribution to the delivery of Hampshire's Corporate Objectives

_ a minimum of £15,000 revenue support

_ Match against Recreation and Heritage standard criteria for partnership funding

3.4 Further it was proposed that "those organisations currently revenue funded in this list (as Appendix 1) but falling below this level should be directed to the other available (one off) funds" (Arts Strategy 2006 - 11 Appendix 4). This decision affected 3 organisations, one of these has made representation relative to this change in status. Lastly it was proposed that monitoring and accountability mechanisms are put in place which provide accurate and timely information which is fit for purpose.

Issues

3.5 A critical issue in this context is that this is not a dynamic list. The Arts Strategy document states that;

"The list defines the current investment in infrastructure in Hampshire but this is by no means a definitive list of professional arts organisations which operate within the county. This list should operate on a balance of maintaining stability in valuable infrastructure but also recognise that, from time to time, organisations cease to perform to standard or stop delivering against the Council's corporate objectives. In this case, this should be picked up in monitoring and organisations be given notice that funding may cease at the formal review point. This disinvestment process is likely not to be frequent and this presents a problem in terms of adding organisations to the list. Officers must both monitor and evaluate those organisations which are currently funded, looking for growth and potential, and work closely with other funders, particularly Districts, in ensuring that the infrastructure reflects needs at any particular time".

3.6 In examining this list it is clear that the majority of organisations have been on the list for very many years. Many of them for well over a decade. The exception to this are the visual arts organisations which are relatively recent additions to the portfolio and within this group The Making and Making Space have been supported through the Recreation and Heritage Policy Fund. A new addition to the list, added in (May 2006), is The Lights in Andover. Hampshire County Council made a corporate decision to support this initiative at the request of Test Valley Borough Council. Investment in The Lights is split between Recreation and Heritage, Children's Services and Policy and Resources. The current arrangement will run for three years. At £120,000 per annum it is the second largest single investment in infrastructure in Hampshire.

3.7 It is also clear that from the list that the generally tripartite nature investment arrangements means that the County Council is part of a funding package and that decisions made by the County Council could upset this arrangement and have the potential to destabilise the infrastructure. The levels of investment by both ACE and the Districts is an indicator of the importance of this infrastructure in the cultural ecology of the region.

3.8 The apportionment of funding within the County Council budget is such that only three organisations receive more than 10% of the available funding and one organisation receives over 20%. As part of the arts strategy development the question was posed - is it appropriate for one organisation to subsume this percentage of funding? Clearly this is a difficult question as all the organisations are unique and their funding histories complex.

3.9 In the 2006/7 list there have been a number of organisational and infrastructure realignments during the year.

3.9.1 Members have decided that they wish to scrutinise the Service Level Agreement with the BSO. This needs to be done in a broader context of music promotion, participation and development in Hampshire in order to ensure rigour. This process will impact on two other organisations in the list. The Anvil and TAPs.

3.9.2 The Haymarket Theatre has had funding arrangements terminated by both the District Council and ACE. This then affects the theatre ecology in Hampshire and also affects the Anvil in developing the new arrangement for performing arts in Basingstoke.

3.9.3 Hampshire Sculpture Trust has had its funding terminated by the County Council and will have ceased full time operation by 2007/8. The Making in Basingstoke is in mid review by ACE, its principal funder, within the context of a wider craft development strategy for the South East Region. Until this is complete the context for the development of the visual arts and crafts is unclear overall. The advent of the Winchester Discovery Centre gallery in 2007 will create a new visual arts facility in the mix

3.9.4 Havant Arts Centre is currently engaged alongside Hampshire Museum Service and Havant Borough Council on developing a more integrated service with the Museum and arts centre building. The Lights has been added to the Arts Centre portfolio.

3.9.5 The organisations in the list are varied in scale, purpose, history and funding arrangements and geography. The list has developed over time in an incremental fashion. How then can a set of criteria for funding be developed?

4. Future funding arrangements

4.1 As a way of taking into account the very varied portfolio it is proposed that in future revenue funded clients should be funded on the basis of agreements built around the organisations business plans and assessed against a balanced scorecard using the following criteria

· How the organisation delivers against Hampshire County Council's Corporate, Cultural and Arts Strategy Objectives

· The artistic quality of the work programme presented

· Benefit to Hampshire residents and visitors as either passive or active participants

· Financial viability and management

· Organisational capacity to deliver the business as set out in the business plan.

· Stakeholder investment

4.2 Evidence to enable assessment using this method would be provided by the client in the form of

· Progress report against the business plan objectives for the year

· Statistical information relative to activity and participants (see Appendix 2)

4.3 With the addition of

· Reports from officers observing board meetings and attending events, file notes and consultation and comment from other principal stakeholder funders.

4.4 All the organisations should be asked to present three year plans which cover the period 2007/8 - 2009/10 at the start of this process and then, without prejudice to the sector examinations, three year agreements entered into on the basis of the proposals put forward. Clearly given the current budget constraints figures for the years 2008/9 and 2009/10 can only be indicative.

4.5 At intervals of not longer than 3 years a formal review of the organisations should take place. This might be timetabled in concert with other principal funders in order to minimise duplication of effort, and therefore time wasting, on the part of the client.

4.6 The scrutiny of the BSO Grant identified by members as necessary in the context of the Arts Strategy and Review need to be done in the context of music development as a whole. This is in effect a sector examination. The outcome of this review will result in an affirmation of the role of funded organisations at a variety of levels. The information used to make this examination involves statistical and narrative information and stakeholder comment.

4.7 In order to similarly affirm or otherwise the role of the other organisations in the revenue portfolio a similar approach could usefully be undertaken. Using the format proposed (Appendix 3) along with comment and involvement of the key stakeholders similar sector examinations could be undertaken. Theatre and Dance, Visual Arts and Arts Centres are appropriate headings for the portfolio. The volume of work involved in this for all concerned means that this is not possible to do in single timeframe. It is therefore proposed that these examinations are undertaken by officers over a period extending to Spring 2007 at approximately six monthly intervals and the outcome reported to the Executive Member. Together with recommendations on the future direction for investment in arts infrastructure from the revenue grant scheme.

5. Impact Assessment

5.1 No groups or organisations should be excluded from any benefit arising from these decisions. A new application procedure is due to be introduced from 2006/07 which will include equalities monitoring information as agreed as part of the corporate review of grants programmes and procedures.

6. Financial Implications

6.1 The processes outlined above will be required to operate within the financial resources allocated to the arts by Hampshire County Council

7. Legal Implications

7.1 The County Council is able to utilise broad powers under the Local Government Act 1972 to provide financial support for the arts. In particular, Section 145 of the Act enables the Council to contribute towards the expenses of doing anything necessary or expedient for any of a number of purposes, including the provision of entertainment of any nature, or the provision of a theatre, concert hall, dance hall or other premises suitable for entertainment. The powers include the ability to contribute towards the development and improvement of the knowledge, understanding and practice of the arts.

Recommendation

i) The process for review and renewal of revenue funded organisations as set out in 4.1 be agreed.

ii) That the sector examinations as proposed in 4.7 be reported to the Executive Member for Recreation and Heritage at appropriate intervals to be completed by Spring 2008.

Section 100 D - Local Government Act 1972 - background papers

The following documents disclose facts or matters on which this report, or an important part of it, is based and has been relied upon to a material extent in the preparation of this report.

N.B. the list excludes:

1. Published works.

2. Documents that disclose exempt or confidential information as defined in the Act.

TITLE LOCATION

Current working files Arts Office

Appendix 1

Revenue Funding from all Local Authority and Arts Council 2006/7

Figures derived from 2006/7 applications and adjusted in the light of decisions.

Note Anvil income shown as net of costs of programme activity.

*a 3 year agreement with Test Valley Borough Council for a full year of operation. The funding is split equally between Policy & Resources, Children's Services and Recreation and Heritage.

Appendix 2

Arts Service

Revenue Funded Organisations - Review and Renewal Monitoring Application

Contact details for your organisation

1. Name of your organisation

2. Address of your organisation

The main contact person for this application

3. Title First name Surname

4. Contact Details

5. Position in your organisation

Information about your organisation

6. How would you describe your organisation? Please tick all boxes that apply.

Registered charity number:

Company limited by guarantee Voluntary or community organisation

School/college Arts Organisation

Other (Please describe)

Section 1 Commentary on the business

The commentary should take the form of a review and follow the prompts set out below. This review should refer to the action plan set out in your current business plan. (This section should not exceed 2,500 words)

1. Review of the last full financial year

· Did the organisation achieve the objectives it set for the year? Briefly say what the key objectives were and comment on how each was achieved. Please note major successes and be frank about any problems that emerged.

· Were there any variations from the original plan? If yes, what and why?

· What impact did the variations have on the action plan for the current financial year?

· What key development opportunities were generated in this year and how will these manifest themselves in future planning.

· Was the budget set realistic for your activities - if there were major variances how did these come about?

· What impact did the variations have on the financial plan for the current financial year?

2. Progress on current financial year

· What progress is being made on the objectives that you have set for the year - briefly describe noting successes and any emerging issues.

· Are there likely to be any significant variations in the plan, if so what and what impact will they have on your business?

· Please comment on your financial performance to date

3. Position for the following financial year

· How is the progress you are making in this current year positioning the organisation to develop its business in the coming financial year?

· Are there any changes to the proposed action plan in the current business plan. If so what?

· Please indicate areas of the budget set out (where in completed layout) where we should note significant changes form the outline I the current business plan. County Council priorities

4. County Council Priorities

· Please explain how your organisation helps to deliver against these priorities. Select only those where you judge your organisation makes a real impact.

· Refer to the County Council's priorities as set out in the most recent Corporate, Cultural and Arts strategies. (web link here)

5. Equalities

· Please explain briefly how your organisation addresses the equalities agenda relative to both staff and patrons

6. Diversity

· Please explain briefly how your organisation addresses the cultural diversity agenda relative to both staff and patrons.

7. Web Presence

Please explain what your web site includes, e.g. basic organisational and event information, commercial transactions, interactive or participatory projects and Non live access (Web casts, exhibition, publishing).

Section 2 Finance

Income

Expenditure

Position for the year

Reserves and Deficit Management Policy

Please describe the purpose of the reserve. How much of this is unrestricted and how much restricted. If you are carrying sinking funds please detail this:

If you are carrying a deficit please state how your organisation is planning to deal with this and in what timeframe:

If you are running a capital project please indicate here and say how the organisation is funding this and identify if any of the costs for this are contained within the Income and Expenditure account set out above:

Section 3 Activity

Quantity of activity Performing Arts

Workshops and Lectures: This should include one off workshops and lectures - any workshop or lecture where a member of the public can join at any time in the programme.

Courses: Limited number course where it is not possible to join at any point.

Reach of activity - performing arts

Workshops and Lectures: This should include one off workshops and lectures - any workshop or lecture where a member of the public can join at any time in the programme.

Courses: Limited number course where it is not possible to join at any point. Count the number of participants as at the first session.

How is your activity made accessible to disabled people?

Please state if you use audio description, signed performances, subtitles, or other access tools and also explain how your organisation enables patrons with mobility challenges to access your programme.

Geographical area

What geographical area does the organisation cover? This should be the area where the majority, say 75% of your attendees and participants come.

New Work

How much work in this programme is new work commissioned by your organisation? Has any new work commissioned by yourself been produced by other organisations?

Touring

How much of your programme will tour elsewhere once it has been presented in Hampshire?

Critical Review

Has you activity received critical review in the national media? Please describe

Quantity of activity - Visual Arts

Reach of activity - visual arts

How is your activity made accessible to disabled people?

Please state if you use audio description, signed performances, subtitles, or other access tools and also explain how your organisation enables patrons with mobility challenges to access your programme.

Geographical area

What geographical area does the organisation cover? This should be the area where the majority, say 75% of your attendees and participants come.

New Work

How much work in this programme is new work commissioned by your organisation? Has any new work commissioned by yourself been produced by other organisations?

Touring

How much of your programme will tour elsewhere once it has been presented in Hampshire?

Critical Review

Has you activity received critical review in the national media? Please describe

Section 4 Your Organisation

A. Staffing (Please provide details of your current staffing establishment)

Permanent Staff

Freelance or contractual staff

Volunteers

B. Staff movement

Please state if there have been any significant changes in permanent staffing in the current financial year. Please also note the amount of turnover within your staff complement.

C. Governance

Please state if there have been any significant changes in the composition of your Board or in your governance structure.

Please list key monitoring reports presented to the board on a regular basis, include both financial and management reports as appropriate.

D. Equal Opportunities

Please state whether your organisation has an Equal Opportunities policy and action plan and where it can be accessed.

Section 5 Monitoring Supplement

This information is collected in order to monitor our grant programmes for equality of opportunity. The answers you give will not affect your application for a grant from Hampshire County Council.

A. Of the people you have included in the totals above, how many would you describe as:

B. Please tell us about the people who will benefit from your project (Tick)

C. Please tell us the typical age range that will be involved in your project

0-15 16-30 30-59 60+

D. Please tell us which geographical area will benefit most from your project

Towns/ Places:

Districts or boroughs:

E. If you think your project will benefit all of Hampshire, tick here

Section 6 Supporting Documentation

Please supply the following documents when you submit your application. If you do not supply these documents, we will not be able to process your application.

(Please tick appropriate boxes)

Annual Report (Last full financial year)

Audited Accounts (Last full financial year)

Events Listings/Brochures (Last full financial year & current financial year)

Current Business Plan (Minimum 3 year coverage)

Marketing/Audience Development Strategy (Current)

Risk Management Plan (Current)

One Compact for Hampshire

The One Compact for Hampshire is a jointly agreed framework of principles to guide the working relationship between the Voluntary and Community Sector and the Public Sector.

You do not need to be a member of the Compact to apply for a grant, but you may find Compact information useful to your organisation. If you would like more information about the Compact, please tick here. Alternatively, you can phone 01962 846011/854971

Data Protection

The information you have supplied in this form will be used to process your grant application and for monitoring and statistical analysis purposes. Some of the information will be held on a database at Hampshire County Council.

We may occasionally wish to share your contact details with other statutory bodies and voluntary and community organisations for use in surveys and consultations. We may also share your contact details with organisations wanting to send you information about matters of interest to the voluntary and community sector. Please tick the box if you agree that we may use your contact details for this purpose.

Declaration

I declare that the information supplied in this application is true and that any grant money received from Hampshire County Council will be used for the purposes described in this form.

Signed m Date

Position in organisation

Please return your completed form to:

Arts Administration Assistant

Arts Office,

Mottisfont Court

High Street

Winchester

SO23 8ZD

Tel: 01962 846966

OR

email your completed electronic form to [email protected]

Appendix 3

Revenue Client appraisal - Balanced Score Card

Score

5 Meets standard at Excellent -

4 Meets standard well

3 Meets Standard

2 Struggles to meet standard

1 Does not meet standard

To asses the score consider the following

The organisation clearly delivers against the Councils Corporate Cultural and Arts Strategies -

· Are the claims made by the organisation in this regard justified?

· Might the organisation be regarded as delivering against corporate objectives not listed by themselves?

Does the work produced strive for/ achieve artistic quality?

· What work has been seen - what comments are there on this work?

· Is the work discussed at board meetings - are the board actively engaged in comment on the programme? Is there clear artistic leadership in the organisation

· Is there evidence that the organisation is evolving its artistic output? This might be evidenced in the content of the work or its presentation. Is there evidence of evaluation of the programme being done systematically?

· How are new ideas about the organisation's artform being introduced into the organisation?

· How is the output mediated between the `universal' work and the targeted work?

It is clear that the Organisation is benefiting Hampshire Residents and Visitors

· Is the organisation attracting the level of public support it is projecting? Are there visible trends in attendance/participation?

· Is there a clear audience development strategy based on research and evidence? Is there a clear rationale for the strategy?

· Is the organisation's marketing strategy likely to deliver the audiences it wants to attract and is it investing appropriate resources to its audience development activity?

· Is there is clear distinction between universal service and targeted activity?

· What levels of targeted activity is being undertaken (social inclusion, area based etc)

· Is the organisation providing activity which is unique in some way (geographically, artform, type of practice etc)

The organisation is financially viable, well managed and manages financial risk appropriately?

· Does the organisation have a business plan (3 year) that is financially convincing? Is ther a good spread of funding/income sources?

· Can we be sure that adequate financial modelling and budgetary controls are in place? Is the organisation able to meet its commitments? Does it deliver to the financial plan presented for the year?

· Does the organisation have a positive cash flow? Is the risk management strategy robust? Are there adequate contingency sums built in to the projected budgets?

· Is the board financially literate and does it ask searching questions of the staff, can the staff adequately answer the questions? Does forward planning include financial projections?

· Is the organisations reserves policy fit for purpose?

The organisation has a sound business plan and has the capacity to deliver it as laid out. The Board and Executive have a productive and appropriate relationship.

· Is there an appropriate governance structure? Is the board and chair effective in providing leadership, checks and balances to the organisation? Is there a good mix of skills on the board? Is the board a good advocate for the organisation?

· Does the organisation have an effective long term strategic planning process?

· Is the organisation's business plan robust and is it monitored by the board? Does the organisation deliver what it says it will?

· Does the board receive good quality monitoring and planning information on which to base its decisions?

· Does the board engage in annual review/planning time?

· Is the staff structure fit for purpose? Is it effective in delivering the business?

· Does the organisation manage the unexpected effectively?

Stakeholder investment

· Do all stakeholder funders share our assessment of the organisation

· Are there concerns with any of the other funders?

· Is there an alteration in the level of investment + or (-) by any funders - note reasons for shift.