APPENDIX F - SPONSORED ORGANISATION SCHEME - APPLICATIONS FOR REVENUE FUNDING 2007/08 : Executive on 06/02/2007

Waverley Borough Council Committee System - Committee Document

Meeting of the Executive held on 06/02/2007
APPENDIX F - SPONSORED ORGANISATION SCHEME - APPLICATIONS FOR REVENUE FUNDING 2007/08

Summary & Purpose

The purpose of this report is to consider the applications from the Sponsored Organisations for revenue funding in 2007/08.

The report details the assessment of applications against the approved Sponsored Organisation Scheme criteria and provides recommendations for funding.

APPENDIX F

WAVERLEY BOROUGH COUNCIL

EXECUTIVE - 6TH FEBRUARY 2007

Title:

SPONSORED ORGANISATION SCHEME –
APPLICATIONS FOR REVENUE FUNDING 2007/08

[Wards Affected: All]

Summary and purpose:

The purpose of this report is to consider the applications from the Sponsored Organisations for revenue funding in 2007/08.

The report details the assessment of applications against the approved Sponsored Organisation Scheme criteria and provides recommendations for funding.

Environmental implications:

Many of the Sponsored Organisations contribute towards improving the environment in which Waverley’s residents live.

Social / community implications:

The organisations that Waverley supports under the Sponsored Organisations Scheme provide valuable services to the community that benefit a large number of Waverley’s residents. Waverley’s contribution to the Waverley Voluntary Grants Panel helps support organisations specifically in the social and welfare area.

E-Government implications:

There are no direct E-Government implications arising from this report. Sponsored Organisation Scheme application forms and guidance notes are available electronically by email and on the Council’s website.

Resource and legal implications:

The total value of the funding awarded to Sponsored Organisations in the current financial year (2006/07) is Ł571,010. In addition, a contribution of Ł50,640 has been made towards the Waverley Voluntary Grants Partnership (WVGP) for social welfare organisations, some of which were previously funded from the Sponsored Organisations Scheme.

The total value of funding requested from Sponsored Organisations meeting the scheme’s criteria for 2006/07 is Ł649,551. A table detailing the grants requested by each organisation together with the grants approved over the last two years is attached at Annexe 1.

At its meeting in October 2006, the Executive agreed to continue to contribute to the Waverley Voluntary Grants Partnership in 2007/08 on the same basis as in 2006/07. Members also agreed to an annual revenue contribution of Ł4,000 to help facilitate the improved allocation of grants from the WVGP. This amount has been included in the Draft 2007/08 Budget, over and above the main SOS grant amount. The Executive also agreed that the overall funding for the SOS and the WVGP be increased in line with inflation, but that this increase be considered alongside other demands on the Council’s finances during the budget process. These pressures were presented to Members at the Finance Seminar in October and were considered further at meetings of the Overview and Scrutiny Committees in November, and the Executive in early December.

Given these pressures, Members will need to decide whether the Council will be able to increase the SOS pot and/or the contribution to the Waverley Voluntary Grants Panel (WVGP) in the 2007/08 Budget. Currently Officers in this report have shown the impact of a 3.5% inflation increase but have not identified any above-inflation increases in grant for individual SOS organisations and have not proposed funding for any new organisations. This report also identifies particular financial pressures currently facing two of Waverley’s Sponsored Organisations and Members are asked whether they would wish to reduce other organisations’ grants to allow an increase in funding for these two organisations.

The total SOS grant recommendations for 2006/07 is Ł590,194, an increase of Ł19,184 over the 2006/07 budget. In line with the Members’ decision in October, it is also recommended that the contribution to the WVGP in 2007/08 is increased by inflation to Ł52,400. Any increase in funding will need to be included in the budget proposals being considered elsewhere on this agenda.

Background

1. The principal aim of the Sponsored Organisation Scheme is to ‘provide financial support for the on-going revenue costs of voluntary and charitable organisations that are delivering high priority services for the benefit of Waverley residents in partnership with the Council’.

2. In October 2006, the Executive approved the grant eligibility, criteria and timetable for 2007/08. These are detailed in the application guidance at Annexe 2. Members gave particular consideration to the inclusion of Social/Welfare organisations, the treatment of general financial reserves and the degree to which organisations contribute towards Waverley’s Corporate Plan objectives.

3. At the October 2006 meeting, the Executive also agreed that:

o The Sponsored Organisation Scheme would be open to new organisations to apply for funding in 2007/08.

o The Council should continue to contribute to the Waverley Voluntary Grants Panel in 2007/08 on the same basis as in 2006/07.

o A funding increase in-line with inflation is proposed, but that such an increase will be assessed alongside other demands on Council finances during the budget process.

o The ‘Three-year intention to fund’ policy should continue as before with a financial threshold of Ł10,000.

Applications

4. A total of 26 applications for revenue funding in 2007/08 have been received, 25 of which are from existing Sponsored Organisations and 1 is from a new applicant.

5. In total, the funding requested by the organisations for 2007/08 is Ł649,551. The summary table detailing all the Sponsored Organisation Scheme applications is attached at Annexe 1. A summary description of each organisation is contained in Annexe 3.

Grant Criteria and Assessment of Applications

6. Each application has been assessed against the Sponsored Organisation Scheme grant eligibility and criteria by the relevant ‘link officer’ within each service area. In addition, Waverley’s accountants have undertaken a financial assessment of each organisation’s annual accounts. The link officers, as part of assessing the grant applications, have taken the results from these financial assessments, together with information about organisations reserves policy, into account.

7. For the new organisation applying for funding in 2007/08, The Haslemere Activities Unit for the Disabled, officers consider that, whilst recognising that this organisation provides a valuable community service, Waverley’s approved criteria does not cover the particular services for which grant is sought. It is considered that the Waverley Grants Partnership is the appropriate funding source for this application. The organisation has been advised accordingly.

8. Officers have proposed adjustments to the funding for the day centres to better reflect the obligations on these organisations for the provision and maintenance of their premises and to take account of the different scale and level of the service provided. The following table summarises the changes:

Organisation	06/07 Grant Ł	Proposed 07/08 Grant	Comments
Age Concern Farncombe	43,010	44,500	WBC own Building
Age Concern Cranleigh	44,030	45,600	Different scale and level of service
Age Concern Haslemere	43,010	44,500	No repair obligations
Brightwells Gostrey Centre	43,010	44,500	WBC own building
Milford and Villages	45,670	48,000	Centre owns and maintains building
Age Concern Waverley	32,770	32,770	Operational changes
Total	251,500	259,870

9. The recommended grants are shown in the last column of the table at Annexe 1. Waverley’s service officers recognise the high level of community benefit that each organisation provides and this is reflected in the narrative in Annexe 3. Officers are currently showing an inflationary increase for those existing organisations that have requested additional funding and for the contribution to the Waverley Voluntary Grants Partnership. This recognises that many of these organisations have a high proportion of staff and property costs which generally increase each year.

Cranleigh Arts Centre

10. In October 2006, Members approved a revenue supplementary estimate of Ł20,000 to cover an anticipated deficit in Cranleigh Art Centre’s accounts for the year 2006/07. The reasons for that deficit were set out in the October report to the Executive and officers informed Members at the time that CAC would be undergoing a review and that any additional requests for funding would be considered as part of the Council’s SOS scheme.

11. The CAC Board of Trustees has now undertaken a comprehensive review with assistance from Arts Council England, Farnham Maltings and Waverley Borough Council Officers. As part of the review process a visioning meeting was held on 9th November followed by a meeting held on 14th November to set key objectives. The outcome of the meetings in conjunction with a rigorous review of the centre’s systems and procedures plus consultation with regular users and potential partners has formed the basis of the recommendations in the final report.

12. In addition to the review the Board has taken steps to cut CAC’s operating costs. The Director post has been removed and the staff structure reduced from 3 f/t members of staff plus a p/t marketing post to 1 f/t Operations Manager supported by casual events staff and volunteers. The number of events in the autumn 2006 programme was also reduced to reflect a smaller staff team and events/workshops incurring a financial risk were eliminated.

13. The review process, together with the measures taken to reduce operating costs have culminated in the development of a new business model, which proposes that CAC runs without a Director and that any activities it undertakes are self-financing and can meet the core running costs. This Business Plan assumes base level funding of Ł29,200 from Waverley which is broadly in line with the current SOS amount.

14. However in order for the organisation to grow stronger and become more sustainable in the long term it will benefit from a more strategic alliance with Farnham Maltings would be beneficial. Both organisations share similar ambitions and by working together they can increase the profile and amount of cultural activity in the Borough as a whole, whilst benefiting from cost efficiencies released through the sharing of services and resources. Officers are therefore recommending that Members consider the proposal for Farnham Maltings to provide a management service to CAC for a fee of Ł12,000 per annum as an interim measure that will assist CAC in developing its core business and community objectives. The services provided by Farnham Maltings in return for the annual management fee would include the following:

v on-site management and support
v seasonal joint programming
v advice and guidance regarding artistic direction
v strategic support at Board level
v the expansion of programmes such as ‘supporting artists’ and ‘outreach and participation’
v assistance with developing robust Health and Safety procedures and systems

15. The requirement for additional funding to cover the management fee will be subject to regular monitoring and in the long term it is anticipated that the amount will be reduced as opportunities for project funding and shared resources come to fruition.

16. Members are therefore asked to consider as part of the Sponsored Organisations Grants awards for 2007/8, an additional Ł12,000 to the Cranleigh Arts Centre to enable the Farnham Maltings to provide a management service to the CAC.

17. Given the pressures on Waverley’s budget, officers do not consider that the total SOS budget can be increased above the inflationary rise in 2007-08 as shown in Annexe 1. Therefore, if Members wish to increase the Cranleigh Arts Centre’s SOS grant, other grants would need to be reduced to accommodate this.

Haslemere Educational Museum

18. From officers’ analysis of the Haslemere Museum’s latest accounts, it is apparent that the organisation’s financial position has changed with significantly increased creditors and an estimated reduction in one of its regular sources of revenue income.

19. Officers have met with the Chairman of the Museum and discussed the Sponsored Organisations Scheme application and the organisation’s finances. The Museum has seen an element of its external funding reduce in 2006 but a proportion of this was funding specific projects. The Museum has managed to reduce its costs in a number of areas.

20. Whilst overall, the finances appear to be buoyant in the short to medium-term and the investments are currently providing a degree of flexibility, it is clear that measures need to be taken to build a sustainable base in the medium to long-term if the Museum is to be able to sustain its current level of activity. The Chairman is proposing to address this by employing a funding officer for a limited period to boost the Museum’s capital and revenue resources to strengthen the long-term financial position.

21. It is the officers’ view that, given the pressures on Waverley’s revenue budget and the continuing demands on the SOS pot, other options for supporting the Museum should be considered, particularly if they assist with the long-term position. Various proposals were discussed with the Chairman around potential applications for the Community Partnerships Fund.

Other Financial Support From Waverley

22. In addition, a number of applicants have been offered other financial support from Waverley in 2006/07.

Organisation	Project	Grant Awarded Ł	Total Project Cost Ł
Milford and Villages Day Centre	Extension to Car Park	10,000	55,323
Farnham Maltings	Youth Theatre Development	15,000	88,800
Godalming Museum	Thorburn Watercolour	3,000	25,935
40 Degreez (Farnham Youth project)	Phase 2 Lift	3,750	15,000

Loan

Farnham Maltings

Fundraising

Ł50,000 loan repayable over 5 years (Ł25,000 of the Ł50,000 loan taken-up and paid in 2004/5

The Maltings will also receive continuing funding in 2006/07 towards its refurbishment project.

Rate Relief

23. In addition to the Sponsored Organisation Scheme grant in 2006/07, the following organisations also receive mandatory and discretionary rate relief as detailed below:

Organisation	Mandatory Rate Relief	Discretionary Rate Relief	Amount Ł	Cost to Waverley (75% of Discretionary Rate Relief)
Age Concern Waverley	1057.65	264.42	1322.07	198.32
Age Concern Haslemere and District	4763.00	1190.75	5953.75	893.06
Age Concern Cranleigh and District	2979.04	744.76	3723.80	558.57
Brightwells Gostrey	1073.84	268.46	1342.30	201.35
Citizens Advice Bureau – Farnham	4589.80	1147.45	5737.25	860.59
Citizens Advice Bureau – Godalming	7967.20	1991.80	9959.00	1493.85
Citizens Advice Bureau – Haslemere and Cranleigh	5196.00	1299.00	6495.00	974.25
Cranleigh Arts Centre	4070.20		4070.20
Farnham Maltings	24074.80		24074.80
Godalming Museum Trust	4072.66	1018.16	5090.82	763.62
Haslemere Educational Museum	26672.80	6668.20	33341.00	5001.15
Haslemere Hall Trust	3048.32		3048.32
Milford and Villages Day Centre	4503.20	1125.80	5629.00	844.35
Farnham Youth Project	2840.48	710.12	3550.60	532.59

Total	96908.99	16428.92	113337.91	12321.70

Timetable

24. The Community and Environment and Leisure Overview and Scrutiny Committees have considered this report and their observations are detailed below. Applicants will be notified of the results of their applications after the Council meeting on 20th February 2007.

Comments from the Community Overview and Scrutiny Committee

25. The Committee noted the request to consider the adjustment of the proposed amounts for the Cranleigh Arts Centre and the Haslemere Educational Museum to receive additional grant in 2007-08. Although Members were sympathetic to this request they were of the view that if the Environment and Leisure Overview and Scrutiny Committee supported the request, there should be no impact on the organisations within this Committee’s remit, which they had a duty to support.

26. The Committee therefore agreed to pass the following comment to the Executive that, in the event of the Environment and Leisure Overview and Scrutiny Committee suggesting an increase to the proposed grant to the Cranleigh Arts Centre and the Haslemere Educational Museum, that the overall budget should be increased by the same amount.

Comments from the Environment and Leisure Overview and Scrutiny Committee

27. The Committee also received a supplementary report on Cranleigh Arts Centre (CAC) and a request for an additional Ł12,000 to enable the Maltings to provide a management service to the CAC. It was also requested that the Committee considered the employment of a funding officer for a limited period to boost the Haslemere Educational Museum’s capital and revenue resources and strengthen its long-term position.

28. The Committee agreed to recommend the Executive

a. to support the officers’ advice for an increase of Ł12,000 in the grant for the Cranleigh Arts Centre;

b. to support the officers’ advice to assist the Haslemere Educational Museum if an application were to be made to the Community Partnerships Fund regarding the future employment of a funding officer; and

c. that the other items in the budget should remain the same.

Recommendation

It is recommended that the Executive

1. considers the Sponsored Organisation Scheme applications for 2007-08 and the allocations proposed in Annexe 1 and, having regard to the comments of the Overview and Scrutiny Committees and the request for additional funding for the Cranleigh Arts Centre, approves the level of grant for each organisation; and

2. agrees the level of Waverley’s contribution to the Waverley Voluntary Grants Panel in 2007/08.

Background Papers (DoF)

Sponsored Organisation Scheme application forms.

CONTACT OFFICERS:

Name: Graeme Clark Tel: 01483 523236
E-mail: grclark@waverley.gov.uk

Mike Horlock Tel: 01483 523257

E-mail:

mhorlock@waverley.gov.uk

Comms/exec/2006-07/262