Archived decisions

Contact: Mark Allen 01962 845056 [email protected]

1. Summary:

The following decision is sought:

a) That the Executive Member approves the consultation on the draft proposals for the Adult Services grants programme.

b) That the Executive Member receives a further report on completion of the consultation to approve variations in the grants programme.

2. Reason

2.1 In April 2007 the Executive Member for Adult Social Care approved a recommendation that a review of Adult Services Grants programme should take place. The purpose of the overall review, of which this consultation is part, is to ensure that AS grants are used in the most effective and efficient way possible, that the opportunity to receive a grant is available to all third sector organisations, that the programme is as fair, clear and transparent and that the grants programme supports the Hampshire County Council corporate priority of wellbeing.

2.2 The purpose of this consultation is to seek views on the proposed changes to (1) the grants criteria and (2) the processes, from currently funded voluntary and community organisations and to actively seek the views of groups which are not in receipt of Council funding, volunteers and Hampshire residents. The consultation will be undertaken over a three month period in line with the requirements of the Hampshire Compact.

2.3 The aims of the review are:

2.3.1 To balance the need to support the sustainability of the Voluntary and Community sector with the need to meet the Council's and Adult Service's departments strategic priorities, within available resources.

2.3.2 To agree a set of criteria to enable transparent decision making.

2.3.3 To ensure that processes for applications, for the appraisal of new proposals and for monitoring and reviewing of funded organisations are efficient, effective, robust, clear, transparent and proportionate.

2.3.4 To ensure that Adult Services grant funding and services delivered with this are evaluated within a clear strategic framework, which ensures value for money.

2.3.5 To ensure that we are able to measure the outcomes of funded activities through the implementation of robust but proportionate reviewing processes.

2.3.6 To ensure that there is scope for new applications to be considered, enabling voluntary and community organisations to propose innovative and capacity building activities through access to grant funded pump priming.

3. Other Options considered and rejected:

3.1 A formal consultation process supported by Hampshire County Council resources allows voluntary and community sector organisations and other stakeholders the best possible opportunity to be involved in and contribute to the development of the AS grants programme. A different, less comprehensive consultation could disenfranchise third sector organisations and other stakeholders.

4. Conflicts of Interest declared by the decision maker or other Executive member consulted - none.

5. Dispensation granted by the Standards Committee - none.

6. Reason(s) for the matter being dealt with if urgent - not applicable.

Approved by: ....................... .............Date: .......................

Councillor Felicity Hindson

Executive Member for Adult Social Care

Contact: Mark Allen 01962 845056 [email protected]

1. Summary

1.1 The Executive Member for Adult Social Care agreed in April 2007 that a review of the Adult Services grant programme should be carried out. From April 2007 a number of events have been held to examine the views and issues raised by various stakeholders concerning the grants programme.

1.2 The intention of this review is to ensure that (1) the criteria for grant making and (2) the processes of applying for and awarding grants are clear, reasonable, transparent, proportionate and available to all voluntary and community groups within Hampshire. Initial, informal, consultation around proposals for change has been undertaken with a broad range of organisations and individuals from the voluntary and community sector over the past six months.

1.3 Further more detailed consultation is required on the proposals outlined in the consultation document in order to comply with Hampshire County Council's obligations under the Compact Agreement. This 12 week consultation will be undertaken on (1) potential changes to the criteria for grant making and (2) the processes through which grants are applied for and awarded.

2. Recommendations

a) That the Executive Member approves the consultation on the draft proposals for the Adult Services grants programme.

b) That the Executive Member receives a further report on completion of the consultation to approve variations in the grants programme.

3. Background

3.1 The current Adult Services grant budget stands at £615,000. It is estimated that there are in excess of 10,000 voluntary and community groups working within the Hampshire area. Hampshire Adult Services provides grants, from the main programme, to approximately 70 organisations annually.

3.2 The criteria for grant making and the priorities which funded activities should meet have not been clear. This has led to significant variation in the level and nature of grants across the county and between care groups.

3.3 In addition, a number of grants have been recurrent for a significant period of time. Initial arrangements have been put in place to centralise both the grants budget and the processes for assessing and awarding grants, responsibilities previously allocated to the various Adult Services localities. These steps establish a basis that will enable the department to strengthen the existing monitoring and grant making arrangements.

3.4 This review is also being undertaken alongside current or proposed reviews of grant making within other County Council departments. In particular work is ongoing with the Chief Executives Department and Children's Services to ensure a co-ordinated approach to grants programmes is maintained.

3.5 The principal aim of the grants review is to gain agreement for changes to the grants programme which will address the issues outlined above relating to (1) criteria and priorities and (2) monitoring and evaluation processes in the context of other corporate grants programmes and those of partners.

3.6 These principal aims are summarised as follows:

· To balance the need to support the sustainability of the Voluntary and Community sector with the need to meet the Council's and Adult Service's departments strategic priorities, within available resources. Agreeing a set of criteria to enable transparent decision making.

· To ensure that processes for applications, for the appraisal of new proposals and for monitoring and reviewing funded organisations are efficient, effective, robust, clear, transparent and proportionate.

· To ensure that Adult Services grant funded services are evaluated within a clear strategic framework, which ensures value for money.

· To ensure that we are able to measure the outcomes of funded activities through the implementation of robust but proportionate reviewing processes.

· To ensure that there is scope for new applications to be considered, which enables voluntary and community organisations to propose innovative and capacity building ideas using grants to pump prime these activities.

3.7 Phase one of the review of the grants programme has centralised funding into one identifiable budget, with the development of a panel to assess applications and make recommendations on the awarding of grants using a consistent approach .

3.8 The consultation on this review will also allow time to consider the advantages, or not, of awarding grants as opposed to contracts, in particular where pump-priming of new and/or innovative activities is required. This issue is partially addressed through the proposals within this consultation and within the Single Tender consultation for contracting. However, further work will be required to establish which funding mechanism is most appropriate in certain circumstances.

4. Consultation

4.1 The review of the Adult Services grants programme is of critical concern to our partners within the voluntary and community sector. Initial informal consultation has demonstrated that there is significant appetite for the review to be conducted and willingness to engage with the authority in conducting it. As such, consultation on the proposals affecting both the criteria and processes for grant making is an essential element of relationship building with the sector.

4.2 The consultation will focus on the following:

· Criteria: This suggests developing a move toward a focus on well-being activities and setting annual priorities on this basis; encouraging new and innovative activities; assisting development through pump-priming; the development of some longer-term funding agreements (up to three years); encouragement for organisations to actively seek other longer term and sustainable funding arrangements.

· Process: This suggests the development of formalised but proportionate monitoring and evaluation methodologies; implementation of final year reviews for three year and pump-priming agreements; the possibility of setting the grant application date earlier in the financial year; movement toward an electronic application and administration process.

4.3 Consultation will be undertaken with all voluntary and community sector organisations. We will seek views from all currently funded services but we also wish to maximise the opportunity for currently non-Adult Services funded organisations to contribute to the consultation. In addition to this we will also encourage volunteers and Hampshire residents to contribute if they wish to and ensure County Council Elected Members are consulted.

4.4 The following methods will be used to consult:

· A questionnaire seeking views - This will be available via Hantsweb and in hard copy. Dissemination of the questionnaire will be via a range of networks, including Councils for Voluntary Service, Hampshire Health and Social Care Network and via specialist networks such as faith based networks. All material will be available in alternative formats should that be required.

· HCC officer attendance at meetings and forums - Officer time throughout the 12 week consultation period will be allocated to attend voluntary sector forums and other meetings through prior arrangement or on request. Details of issues and comments made will be recorded and contribute to the final outcome.

4.5 The consultation will be conducted in accordance the Hampshire Compact and will be undertaken over 12 weeks, from May to July 2008. Following consultation a report will be produced detailing final proposals for agreement by the Executive Member for Adult Social Care.

5 Impact Assessment

5.1 Equalities Impact Assessment work will develop alongside the consultation and seek to improve the formal consultation process. Further information regarding any unintended consequences or practical implementation issues can be gathered and considered in the development of the final proposals.

5.2 Given the central role that grants play in supporting many activities within the voluntary and community sector effective impact assessment is of real importance. Many groups, including black and minority ethnic organisations have not, to date, accessed Adult Services grant funding. It is intended that this assessment will be undertaken in partnership with the newly formed diversity network supported by Community Action Hampshire. This work will be undertaken throughout the consultation period.

6. Conclusion

6.1 The review of Adult Services grants presents the opportunity to develop a strategic framework for the future of grant making.

6.2 The proposals for consultation have been developed in partnership with a number of organisations across Hampshire.

6.3 The final proposals and implementation will ensure the grants criteria and processes are as inclusive, clear, transparent and effective as possible within existing and future budgetary constraints.

Section 100 D - Local Government Act 1972 - background documents

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

NB: the list excludes:

1. Published works

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

NONE

Appendices

1a. Adult Services Grant Review - Consultation

1b. Appendices to consultation paper

Appendix 1

Adult Services Grants Review - Consultation

This consultation is being undertaken to assist Hampshire County Council to review the criteria and processes it applies and uses to make grants to voluntary and community groups (Third Sector organisations) within the Hampshire area. The proposals within this document have been put together with the assistance of a number of organisations and individuals from the voluntary sector and other organisations. The consultation itself forms part of an overall review of the Adult Service grants programme.

All responses and comments made during the consultation period will be taken into account and will inform the final proposals that will be agreed later in 2008. A report following the consultation period will be produced seeking agreement for implementation from the Executive Member for Social Care and will be published on Hantsweb by the end of the year.

You do not have to fill in or respond to this form but we would appreciate it if you were able to do so.

The questions are split into two categories, criteria and process. Criteria relates to those issues concerning the eligibility of organisations/activities and how the funding is used. Process relates to the processes used to make and determine grants and how funding is administered throughout the life of the funding agreement.

Overview:

In April 2007 the Executive Member for Adult Social Care approved a recommendation that a review of Adult Services (AS) Grants programme should take place. The purpose of the review is to ensure that AS grants are used in the most effective and efficient way possible, that the opportunity to receive a grant is available to all third sector organisations and that the grants programme supports the Hampshire County Council corporate priority of wellbeing.

The aims of the review are to:

· To balance the need to support the sustainability of the Voluntary and Community sector with the need to meet the Council's and Adult Service's departments strategic priorities, within available resources;

· To ensure that processes for applications, for the appraisal of new proposals and for monitoring and reviewing funded organisations are efficient, effective, robust, clear, transparent and proportionate;

· To ensure that Adult Services grant funding and services delivered with this are evaluated within a clear strategic framework, which ensures value for money;

· To ensure that there is scope for new applications to be considered, to enable voluntary and community organisations to put forward proposals, to encourage innovation and to support capacity building and the pump priming of activities within the sector.

Background:

Currently the AS grants programme administers in the region of 70 grants to voluntary and community groups, equating to approximately £600,000 in expenditure. Whilst this level of funding is not insignificant the ability of the authority to support organisations from the Hampshire voluntary and community sector is limited. Current estimates are that there are in excess of 10,000 organisations of this type in Hampshire.

Existing policy stipulates that 90 percent of grants should be recurrent. However, in practice this has meant that almost all grants have been awarded to organisations and projects that received a grant in the previous financial year, exceeding the expectations of the policy and leading to a very low turnover of grants funding. This has had a significant impact on Adult Services ability to assist groups wishing to seek funding for a new project or its ability to support capacity building or pump priming. Also, the lack of specific focus for the programme (around, for example, priorities under the well-being agenda) does not provide structure for the programme as a whole or allow us to monitor how funding is used in a clear, appropriate and proportionate way.

Grant funding is allocated on an annual basis, even where three year agreements have been put in place. However, this arrangement can lead to uncertainty for organisations particularly where they need to plan ongoing service delivery or development. Also, the agreement of grants of more than one year is ad hoc and does not present a level playing field for applicants.

The review of the Adult Services grant programme will seek to address these issues and this consultation will assist in this process.

This consultation will run for 12 weeks, from May to July 2008. We are keen to listen to everyone's views, not only the views of currently funded voluntary and community organisations, but also the views of groups which are not in receipt of Council funding, volunteers and Hampshire residents.

For further information please contact Mark Allen Tel: 01962 845056, [email protected]

Responses to the consultation should be sent to:

Consultation questions

Please note: all of the information that you provide will be used anonymously for the purpose of this consultation.

Section One; Criteria

1. The Adult Services grant budgets are always under a great deal of pressure and it has therefore been difficult to identify resources to create new grant funding opportunities and to encourage applications from new groups or organisations. We wish to develop a more strategic approach to grant funding and focus our programme toward Adult Services priorities, in particular the 7 outcomes of; Improved Health and Emotional Wellbeing, Improved Quality of Life, Making a Positive Contribution, Increased Choice and Control, Freedom from Discrimination and Harassment, Economic Well-being and Maintaining Personal Dignity and Respect. We will seek to agree annual priorities for funding within this framework. The priorities will be publicised with each new grants round.

Proposal 1: To ensure that Adult Services grants funding meets the strategic priorities of the department and supports a move toward the priority of well-being. We will agree annual priorities for the grants programme within this framework. Do you agree with this approach? Do you have any other suggestions about how we could agree annual priorities?

2. Initial consultation for the review of Adult Services grants highlighted the fact that little funding is made available for innovation, capacity building or pump priming. This is something that has been difficult to achieve whilst the majority of the grants programme has been used to fund services on a recurrent basis. We recognise the need to maintain the stability of currently funded activities but wish, over time, to promote the use of grants for in particular innovation and capacity building. As such we wish, along with strategic priorities, to include capacity building, innovation and pump priming in the criteria for assessing grants applications.

Proposal 2: To ensure that Adult Services grant funding encourages new and innovative activity and is able to assist in developing the capacity of the voluntary and community sectors we are proposing that this is included in the criteria for assessing grant applications. Please tell us what you think of this proposal?

3. In order to allow for the funding of new services or activities and to encourage innovation and the use of grant aid for capacity building or pump priming it will be necessary to set annual targets for this.

Proposal 3: To ensure funding is available for new and/or innovative services we would like to propose a minimum percentage of the annual grants budget is used for this purpose. This could be within a range from 5% to 25% What are your views of this proposal? Do you feel this is the right approach to encourage innovation? What percentage do you feel would be an appropriate amount?

4. The current criteria for grants stipulates that organisations applying for a new grant should not hold reserves in excess of one years running costs. Those organisations already in receipt of grant funding should not hold reserves in excess of three months. This definition lacks clarity and can penalise organisations that designate reserves for specific purposes, including those for prudent business reasons. We would like to amend this criteria to reflect this and define reserves as excess if they are undesignated. However, we wish to retain the ability to exclude applications in circumstances where designated reserves are considered excessive.

Proposal 4: We wish to amend the criteria to state that reserves that could be considered as excess will be those that are undesignated. Please tell us what you think of this proposal?

5. The use of Adult Services grant funding for pump-priming of new and/or innovative services or activities will inevitably be time limited for this purpose. We wish to propose that this is for a period of up to two years. Where funding is used in this way Adult Services officers will seek to work with organisations on the development of the service. As part of this developmental process the requirement for future funding should be assessed, with a review undertaken at the end of the funding period to identify appropriate future funding arrangements. Other funding arrangements could include continued grant funding, funding from other sources or contractual arrangements, including full tendering.

Proposal 5. To seek to provide pump-priming funding to new and/or innovative activities for a period of up to two years. We will also assess the requirement for continued funding during this period and review this at the end of the funding arrangement. Please tell us what you think of this proposal?

6. For most grants funding is made available as a contribution to the overall cost of an activity, not the full cost. However, there may be circumstances where for the purposes of pump-priming an activity the full cost is required in the first instance. Currently the criteria for ASD grant funding does not allow this. In order to assist in the development of new services we would like the ability to fund new and/or innovative activities at the full cost for a limited period, as outlined above, for up to two years. All other funding arrangements would remain the same.

Proposal 6: We wish to have the ability to fund new and/or innovative services at full cost in order to pump-prime , where this is required and judged appropriate, for a period of up to two years. We would also like to amend the criteria for Adult Services grant accordingly. Please tell us what you think of this proposal.

7. As one of a range of funding organisations we also wish to encourage and stimulate diversity in the funding streams that organisations access. Given that the grant funding available through Hampshire County Council Adult Services is limited we will aim to put in place a number of mechanisms to ensure that this funding is used in the best possible way. Named Adult Services officers will assist in the process through annual and final year reviews, in particular around issues such as sustainability and service development.

As part of the monitoring process we wish to examine what actions organisations are taking to seek other and/or alternative funding for their currently funded activities.

Also, where services are receiving three year funding or pump-priming funding there should be an expectation that through the life of the agreement work is undertaken to secure other stable funding arrangements. As such, part of the final year review for activities funded in this way could include what actions have been taken to do this and what options are available for the future, including alternative funding, earned income, ongoing grant funding or formal contractual arrangements. The process for undertaking this work is included in the paperwork in appendix 1 - 4.

Proposal 7: It is proposed that as part of the formal monitoring and evaluation of funded activities that account is taken of the work that organisations have done to secure other and/or alternative funding for the activity currently supported by Adult Services. Where funding has been provided for a three year or pump-priming agreement the final year review will evaluate what future funding arrangements are most appropriate. Please tell us what you think of these proposals?

8. The Compact Good Practice Funding Code includes the possibility of multi-year funding agreements, up to three years, to improve the sustainability of the voluntary and community sector and support longer term planning. The adoption of three year funding agreements is also supported by national best practice guidance.

Some multi-year funding agreements have been made over recent years. However, organisations funded in this way by Adult Services Grants are still required to reapply each year. This is resource intensive for both voluntary and community organisations and the County Council and almost always results in the same level of funding being awarded. This is an inefficient use of all organisations and individuals time and could be seen to discredit the grants process. Exceptions to this would be small revenue grants of under £2,000 or where three year funding is not desirable or required.

Proposal 8: To seek to issue 3 year funding agreements where these are appropriate, with annual renewal subject to demonstration of meeting agreed outcome or performance measures. Please tell us what you think of this proposal?

Section Two; Process

9. In previous years, existing grant funded organisations have been required to reapply for grant funding in the same ways as new applicants. However, in practice this has not created a level playing field with new applicants, or achieved a more strategic use of grant funding.

An alternative process would be a more in-depth review during the final year of three year funding agreements, which would be seen as part of the ongoing management of grant funding. If appropriate this would have input from officers with commissioning responsibility for the relevant service area, to ensure that grant funding is more closely aligned with the Council's strategic objectives. The results of these final year reviews would form the basis for subsequent recommendations to continue or change existing grant funding arrangements. In some cases, where it is evident that grant funding is no longer achieving value for money or meeting priorities, there may be a recommendation to stop providing funding in order that new priorities can be met.

Proposal 9: Where 3 year grant agreements are awarded, we will replace the need to reapply annually for renewed grant funding with annual reviews. We will also conduct an in-depth final year review that will be used to inform any potential renewal or change in any future funding agreement. Paperwork for this process is contained in appendix 1-4. Please tell us your views on this proposal.

10. At present the monitoring and reviewing arrangements for Adult Services grants require groups and organisations to submit a report and annual accounts, with some local monitoring which can be variable in its execution. This current arrangement does not provide consistent information or information proportionate to the length and level of funding given.

Any monitoring and review process needs to be proportionate. New paperwork has been developed to support a more efficient and consistent monitoring and review approach, building on current practice and taking into account the proposed final year review process. This will include monitoring and review of mutually agreed objectives and subsequent outputs and outcomes and in particular how the activity has contributed to achieving outcomes for individuals and Adult Services priorities, for example Self Directed Support or Personalisation. See appendices 1-4 for draft forms for Preliminary Checks, Annual Review £2-5k, Annual Review over £5k, and Final Year Review (all multi-year agreements). For grants awards of under £2k, the current arrangements will continue with the addition of informal visits from Council officers.

Proposal 10: To adopt the new draft paperwork at Appendices 1-4 to support the efficient and consistent monitoring and review of grant funding. Do you have any comments on the draft paperwork?

11. Applications for grant funding are currently submitted by January for processing for the March Executive Member for Adult Social Care decision day. Applicants are then informed of the outcome toward the end of March for funding decisions for the following financial year. This timing places a unnecessary burden on organisations in the New Year and imposes very tight timescales on council officers. It also has a significant impact on organisations ability to plan should an application be unsuccessful.

We wish to consider the possibility of addressing this by bringing the grants application deadline forward.

Proposal 11: We will consider the possibility of moving the grants application deadline forward to before Christmas. This would mean that the deadline moves to a point within the period September to November. Please tell us your views on this change and when you think would be the best deadline for application and decisions?

12. Applications are nearly always received only in hard copy. This has led to an increase in the level of administration and can lead to delays. We would like to modernise the submission of applications and would like to make electronic application the norm. However, we also recognise that there will always be a proportion of applications that cannot be submitted electronically.

Proposal 12: To encourage the submission of applications electronically and make this method of application the norm by 2009/10. Please let us know your views on this proposal?

Preliminary Check

All organisations seeking grant funding over £2,000

Appendix 1a

HCC Officers comments

Date......... Signed....................................(HCC - Adult Services)

Annual Monitoring and Review

Single or two year agreements - £2,000 to £5,000

Appendix 2

Annual Review

All organisations funded over £5,000

Appendix 3

Final Year Review

Three year funded organisations over £5,000

Appendix 4