Archived decisions

HAMPSHIRE COUNTY COUNCIL

Decision Report

EXECUTIVE SUMMARY

1) Summary of Decision Area:

1.1. This report gives details of grants being considered for approval from the Policy and Resources budget in 2009/10.

2) Issues Covered in Report:

2.1. This report also provides an update on value for money reviews undertaken on those organisations listed in Part A of the report.

3) Recommendations:

3.1. That approval be given to grants/subscriptions being awarded to those organisations listed in Appendix 1 of this report in 2009/10.

MAIN REPORT

1 Background/Contextual Information:

1.1. The County Council recognises the value of working with voluntary and community organisations and the contribution they make to help the County Council deliver its aims and objectives. The role of the County Council in supporting and helping to build capacity in the sector is essential in providing an environment for a thriving third sector which is one of the targets set within the Local Area Agreement.

1.2. The organisations listed in Appendix 2 of this report receive grants/subscriptions from the Policy and Resources budget which are subject to yearly review. For the infrastructure organisations, the amounts being recommended for approval allow for an increase of between 2.5 and 2.95 for inflation, in accordance with national recommended scales/or corporate assumptions. Where the grants are not related to any specific level of service, no increase has been made for inflation.

1.3. In response to the County Council's policy of ensuring value for money and the development of a strategy for working with the voluntary and community (third) sector, two major value for money reviews have been undertaken looking at those organisations in receipt of higher levels of grant. The outcomes of these reviews are reported and inform the recommendations made.

2 Budget Position

2.1. The total amount of grants/subscriptions being recommended for approval in 2009/10 is £1,204,887 and can be accommodated within the budget.

3 Criteria of Grant

3.1. The criteria used in considering grants from this budget are attached as Appendix 3. To take into account the changing priorities for the both the organisation and the County Council and ensure they remain fit for purpose, it is recommended these are reviewed on a yearly basis.

CORPORATE OR LEGAL INFORMATION:

DETAILS OF ORGANISATIONS

Further information concerning the above organisations is shown in Appendix 2 of this report.

PART A ORGANISATIONS

Community Action Hampshire, District Councils of Voluntary Service and Volunteer Centres (Organisations 1 & 2)

1 Background

1.1. The 11 Councils of Voluntary Service (CVS), one in each district, and the county-wide group, Community Action Hampshire (CAH) are the main infrastructure bodies providing support, advice and certain services to local voluntary & community groups. CAH is also a Rural Community Council supporting and enabling initiatives in the rural communities. The CVSs are `trusts' (companies limited by guarantee) and registered charities for whom the core funding partners are the County Council and the District councils.

1.2. The five primary functions of CVSs, as determined at the national level (NAVCA), are:

o Services and support to front line local voluntary and community organisations (VCOs), e.g. funding information and support with applications

o Liaison between front line VCOs and other agencies/ partnerships

o Representation e.g. representing the views of the sector in Local Strategic Partnerships and the community strategy process

o Development work e.g. strengthening the skills and capacity of front line VCOs

o Contributing to and supporting front line VCOs in the delivery of sustainable community strategy outcomes - including the LAA.

Examples of the support provided include:

- Training information

- Policies and procedures

- Constitutions and governance

- Loan Equipment

- Group start up

- Engagement and inclusion with consultations

- Community Development

- Financial Planning

- Organisational development support

- Quality and performance management advice

1.3. The CVSs also provide a range of services on behalf of the Council. These are via contracts and grants from different departments and include for example community transport schemes, play schemes and lunch clubs for older people. In total the Council commissioned or contracted for services at a value of over £80m.

1.4. Funding for all these groups is precarious, particularly in the current economic climate, which is why there is a move towards three year funding agreements in order to try and ensure the sustainability of groups and projects.

1.5. Volunteer Centres

Each of the district CVS's also runs a volunteer centre which aims to improve and increase the level of volunteering in the area and provide support for both individual volunteers and agencies seeking to recruit volunteer support. This supports the Local Area Agreement target of increased volunteering.

2 Partnership working

As well as the specific role and services provided by the CVSs and CAH, they provide the County Council with valuable access to the wider voluntary and community network and often act as coordinating body for county strategies and policy development. This includes coordination of the development of the Compact and the establishment of a consortium of different community networks to become a more effective vehicle for representation across the sector - The Hampshire Voluntary Sector Consortium. It is this body that has elected a representative for the Hampshire Senate. They are also leading on the voluntary sector input to the LAA and on Theme H (Strong Communities) including the development of a local indicator for developing an environment for a thriving third sector. CAH also act as link to the regional and national VCS and rural bodies, they also analyse latest policy & guidance to make more relevant to smaller local voluntary organisations.

2.1. The CVS's are able to access external funds which are not available to the Council which is helpful in developing projects such as the Diversity Networks Project. The County Council's race equality scheme identified the need to build capacity within the minority ethnic communities and in order to do that there was a need to undertake a lot of community based work and that required funding. CAH secured funds from capacitybuilders and other sources to run projects which set about mapping the diverse communities. They are now focusing work on building capacity within the wider voluntary sector so that when the Council or any other public body engages with local groups they can be assured that there is an understanding of the needs of local diverse groups.

2.2. The overall relationship with the voluntary and community sector (now known as the Third Sector) is being considered through the work to develop a Third Sector strategy which will be reported to Cabinet in February for final approval in April 2009.

3 Current funding levels

The County Council has funded the CVSs and CAH since 1974. This supports their financial and other reporting requirements and generally supports the service to exist and fulfil its role with smaller local voluntary groups

3.1. District CVSs

The County Council provides core funding of around £35,000 each for the CVSs . The district level CVSs receive the majority of their funding from the District or Borough Council and all receive funding from other sources such as Big Lottery or other funding institutions including central government.

The Council provides additional funding for the volunteer centres run by the district CVSs ranging from £27,000 for one and £1,200 for another. The review has

highlighted this disparity which is largely historic and linked to funding which was provided by Social Services prior to 2002.

This core funding also acts as a multiplier, helping each organisation to seek other sources of funding. In 2006-07 across all CVSs they secured over £9 million in external funding.

3.2. Community Action, Hampshire (CAH)

3.3. The County Council currently provides an annual grant of £290,646 for CAH (2008/9) and the P&R budget makes an allocation of £45,000 (paid to PB&R) to cover the costs of their occupation of Beaconsfield House.

3.4. Terms are agreed for CAH to purchase Beaconsfield House as approved by the Executive Member in July last year and the legal work is well advanced. Concurrently, discussions are taking place to understand the running cost implications for CAH following the purchase. Taking on the building will mean that CAH will need to be able to fund the running costs which have, up until now, been managed by the County Council as landlord and funded from this grant budget. This is currently around £45,000 per year.

3.5. To address a short term deficit and to assist CAH in taking on the responsibilities of property ownership, the organisation have asked if the County Council would be able to help with a tapering grant over the next 3 years to give them time to develop income streams to fund the costs. This will not represent any additional expenditure from this grant budget as the costs are already met and will in practice mean a shift from making an internal transfer to paying the funding direct to CAH. Furthermore, as it is proposed that the grant reduces each year, there will be an increasing saving for the Policy and Resources grants budget after the forthcoming financial year. The discussions are currently based on a proposal from CAH as follows:

2009/10 100% of costs estimated at £44,150
2010/11 75% estimated at £33,113
2011/12 50% estimated at £22,075

Thereafter CAH would assume all running costs from within income.

4 Value for money reviews

4.1. CVS network

4.2. In line with the general approach within the Council to ensure that funds are used in ways which add value to the work of the Council a review was commissioned in 2007 to consider the grant funding for Councils for Voluntary Service (CVS). This work was undertaken by Treasurers Consultancy and resulted in a report with recommendations for improvement in both the voluntary organisations and the County Council.

4.3. The review concluded that the County Council recognises that the Third Sector and the CVSs have a key role to play in helping it to deliver against the Corporate Priorities and the Local Area Agreement and in responding to the Government's agenda for working closer with local communities including seldom heard groups.

4.4. The review sought to answer the question of how this role can be best supported in the context of increasing budget pressures.

4.5. The review showed that, in general, to increase the value for money these organisations provide, there are some improvements which should be made and a number of projects have been identified where the CVS network can be more efficient. The Chief Executives of the CVSs meet regularly to share good practice ideas through the Chief Officers network. They were very supportive of this review and have set up a `modernisation' board to take forward the recommendations.

4.6. The recommendations from the review covered the following areas:

o Development of a standard business planning methodology

o Identification of specialised leads to avoid duplication and facilitate input

o Development of a single policy approach

o Development of a standard customer satisfaction survey

o NAVCA best practice performance indicators in place

o Plan for county wide information sharing

4.7. In addition, there were a number of areas where the County Council needs to improve its processes to clarify the level and type of support. The following recommendations were made:

o Draft grant agreement agreed for 2009/10

o Member champion appointed

o Officer network developed to improve consistency of response

o Funding formula developed for budget round 2009/10

o Consultation to be Compact compliant (at 12 weeks minimum)

4.8. As a result of these recommendations it will be possible to build a set of performance measures and benchmarking data which will show how well CVSs perform and the level of improvement year on year. The implications and implementation issues for the recommendations for the County Council have been picked up through the review of the relationship with the sector which will be reported to Cabinet in February 2009.

Recommendations:

1. That the current level of funding is maintained for these organisations on the basis that the funding formula and performance management framework is developed and agreed to inform recommendations for the 2010/11 financial year.

2. The approval is given for discussions to continue to agree a transition support package for Community Action Hampshire to help manage the additional accommodation costs.

Hampshire Association of Local Councils (3)

Citizens Advice Hampshire (4)

Victim Support Hampshire (5)

Relate (6)

1. A short value for money review of the grants to, Hampshire Association of Local Councils, Citizens Advice Hampshire, Victim Support Hampshire and Relate (shown A to D below) has identified that there are established reasons for each of the grants made and that the aims and objectives of each of the voluntary organisations are very much aligned to the corporate objectives of the County Council.

A. Hampshire Association of Local Councils (HALC) was found to provide value for money to the County Council. The grant helps to maximise membership to the Association by keeping subscription fees low, and the main benefits of this to the County Council are access to a communications network covering 98% of town and parish councils in Hampshire, as well as the handling of large numbers of queries from these councils that would otherwise be directed to the County Council.

Recommendations:

i. That key performance information provided to this review is made available to the Council annually as part of the reporting on how the grant was spent.

ii. That consideration be given to agreeing a formal SLA between the Council and HALC in order to ensure that the Council is maximising the benefits of the communications channels and support given by HALC to town and parish councils, in achieving corporate objectives and Local Area Agreement targets.

B. Citizens Advice Hampshire was found to provide value for money, costing the County Council less than £1 per client/issue while ensuring that residents across the county have access to consistent, professional, advisory services. The confidential and complex nature of the service makes monitoring of outcomes difficult, but following organisational changes, the service is in the process of reviewing performance management processes, providing the County Council with the opportunity to influence the information that is collated, monitored and shared with funding bodies.

Recommendations:

i. That data on client numbers and issues is made available to the County Council as part of the annual reporting on how the grant was spent in order to enable value for money monitoring.

ii. That the County Council input to the current review of performance management processes that is being undertaken by Citizens Advice Hampshire.

iii. Consider whether training feedback forms used by the organisation provide useful information to the Council in evaluating and managing the grant to Citizens Advice Hampshire.

iv.

C. Victim Support, Hampshire Analysis of the grant to identified a cost to the County Council of just £0.53 pence per referral, a cost efficient way of contributing to the support of victims of crime. The grant is specifically given to enable the recruitment and training of volunteers, and information provided to this review, indicated that 46 volunteers were recruited in the financial year 2007/08 and 213 volunteer training days were provided. This gives a cost to the County Council of £71.89 per volunteer training day. Again, the service provided by Victim Support is confidential in nature, however MORI research is undertaken annually and this has identified over 90% satisfaction with the service.

Recommendation:

That the organisation provides information relating to the numbers of volunteers recruited and trained through the use of the County Council grant, as well as information on the numbers of people supported by the organisation in Hampshire.

D. Relate The grant to is in support of the rental costs for its Winchester office. While the organisation's annual report provides performance information in relation to the Winchester branch of Relate, specific information relating to the office supported by the County Council was requested as part of this review. This information enabled the calculation of a cost per consultation to the County Council of £9.97. However, there is a high level of missed consultations for the branch, almost 25% which amounts to almost £7,000 of the County Council grant. Due to the confidential and sensitive nature of the service provided by Relate, as well as the long term nature of the problems dealt with by the service, it is difficult to assess the outcomes of the service.

Recommendations:

i. That specific usage information relating to the Winchester office is provided annually to the County Council, setting out numbers and geographical location of clients benefiting from the County Council grant.

ii. That consideration be given to future grant being made conditional on active management and reduction of missed appointments.

Conclusion

1. While in all cases its was found that the grant either does, or is likely to, provide value for money, there were a number of areas where further information was required in order to make a definite assessment and specific recommendations have been made in relation to this.

2. The review of the annual grants process overall, established that not all of the voluntary organisations concerned currently use the formal grant application form and this should be enforced, as it sets out the information requirements of the County Council thus enabling a thorough and fair assessment of all grant applications.

3. In addition to that, the process of reporting on how the grant has been used and key performance information to support this is also not fully embedded. Again this should be implemented for all grant receiving bodies to enable the Council to undertake on-going reviews of the value for money of grants being made.

4. The review also found that the above organisations have been in receipt of grants from the County Council for a number of years. The annual cycle of these grants means that the voluntary organisations cannot plan for longer than the year covered by the grant. The consideration of three year funding arrangements would provide further financial stability for the organisations and enable longer term planning, as well as enabling the County Council to further link such grants to the support of corporate objectives and/or Local Area Agreement targets.

Recommendation:

That the County Council considers three-year funding arrangements for those six voluntary organisations reviewed above may be more appropriate than annual grant arrangements, in order to enable the organisations to work better with the County Council in achieving longer term goals.

Part B Organisations

7. Winchester Cathedral Trust

The County Council agreed to make a contribution towards the continuing restoration of the fabric of the building.

In addition to this, earlier this year it was agreed to continue to fund a choristership at the Cathedral over a five year period, costing approximately £11,000 per year. There is also a proposal on this agenda to earmark a further sum of £280,000 towards developing improved educational facilities at the Cathedral.

8. Friends of Winchester Cathedral (subscription)

The County Council is a longstanding member of the Friends of Winchester Cathedral. The Friends raise money for various projects the Cathedral Trust wish to undertake during the year, including the choristership mentioned in 7 above. The County Council receives two newsletters and several free entry passes to the Cathedral.

In view of the funding the Cathedral currently receives, it is being recommended the County Council withdraw its membership.

9. Winchester Help Centre

This sum is in support of a number of organisations which may incur additional running costs as a direct result of their use of part of the Help Centre.

10. St Mary's Music Foundation, Portsea

St Mary's Music Foundation was founded to provide children and young people with the opportunity for musical education and training. Funding helps towards the cost of an organ scholarship. Although, St Mary's Church is based in Portsmouth, previous beneficiaries have come from Hayling Island and Gosport.

To ensure the County Council receives the appropriate recognition, it is recommended this grant be made conditional on the beneficiary coming from within the Hampshire county boundary.

11. The City of Winchester Trust

The Trust encourages landscape planning, planting and retention of trees and seeks to ensure that new developments complement the old in this ancient City.

12. Country Land and Business Association (subscription)

The County Council has been a corporate member of the Country Land and Business Association since 1979. The publications and services provided by the Association are an important resource in relation to the management of the County Council's landholdings, particularly the County Farms Estate. For this year it is recommended this subscription be referred to the Director of Property, Business and Regulatory Services.

13.

14. Use of Great Hall

The County Council sets aside a sum of money to help voluntary and community organisations towards the cost of using the Great Hall for their functions.

FUNDING CRITERIA FOR THE POLICY AND RESOURCES GRANTS

The following criteria should be taken into consideration when preparing a submission for funding. They are intended as guidelines and not prescriptive rules

1. Assistance will be considered only in response to direct applications from properly constituted organisations seeking assistance. You must show in your application that your organisation is properly and legally organised and has its own bank account.

2. Where appropriate, applications will be referred to the relevant service department (e.g. Adult Services, Recreation and Heritage, etc) for consideration.

3. Preference will be given to applications for specific projects activities rather than general running costs of organisations. These grants are not intended to replace shortfalls in service delivery budgets or replace funding for other support you may be able to obtain, or that you have obtained from us in the past.

4. Grants will not usually be made in respect of applications from the following:-

· District or Parish Councils

· Government Institutions

· Schools

· Overseas and out of County organisations which have no direct Hampshire involvement

· Branches or organisations assisted centrally with a sum from the County Council

· Bodies requesting funds for onward distribution to other charities e.g. mayoral appeals, carnivals, fetes, or for their own fundraising events.

5. Applications will not be accepted from political parties or groups affiliated with a political party or from lobbying/campaigning organisations.

6. Applications will only be considered from faith groups who can demonstrate their facilities are open and used by the local community other than for church related activities.

7. Requests may be considered from County wide groups (e.g. Guides, Scouts, Hampshire County Youth Orchestra) for specific trips, e.g. for an international jamboree or cultural tour. Individual requests will not be considered.

8. Where possible self-help within organisations should be encouraged and to this end, grants are normally a percentage of the sum required to complete the project.

9. As a general rule, grants in excess of £5,000 will not be awarded.

10. Only award grants to projects which are taking place in the same year as application for funds.