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Waverley Borough Council Committee System - Committee Document

Meeting of the Environment and Leisure Overview and Scrutiny Committee held on 16/01/2007
Sponsored Organisation Scheme



APPENDIX G
WAVERLEY BOROUGH COUNCIL

ENVIRONMENT AND LEISURE OVERVIEW AND SCRUTINY COMMITTEE
16TH JANUARY 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 571,010. In addition, a contribution of 50,640 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 649,551. 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 4,000 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 590,194, an increase of 19,184 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 52,400. Any increase in funding will need to be included in the budget proposals being considered by the Executive on the 6th February.

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 10,000.

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 649,551. 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.

Items for Consideration by Community O & S

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:

Organisation06/07 Grant Proposed 07/08 Grant Comments
Age Concern Farncombe43,01044,500WBC own Building
Age Concern Cranleigh44,03045,600Different scale and level of service
Age Concern Haslemere43,01044,500No repair obligations
Brightwells Gostrey Centre43,01044,500WBC own building
Milford and Villages45,67048,000Centre owns and maintains building
Age Concern Waverley32,77032,770Operational changes
Total251,500 259,870
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.

Items for Consideration by Environment & Leisure O & S

Cranleigh Arts Centre

10. The Executive considered a report at its meeting on the 3rd October on the financial position of the Cranleigh Arts Centre. Members agreed to a supplementary estimate of 20,000 in 2006/07. The grant requested is currently 6,650 more than the 2006/07 SOS grant. However, the organisation’s board is meeting late in December to assess the financial position and it is expected that a further request will be made to Waverley for additional funding. Officers will report orally to the January ELOS Committee if an update is available.

11. 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

12. 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. Officers have requested a meeting with the Museum and an oral update will be presented to the Environment and Leisure O & S meeting in January.

Other Financial Support From Waverley

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

OrganisationProjectGrant
Awarded
Total
Project
Cost
Milford and Villages Day CentreExtension to Car Park10,00055,323
Farnham MaltingsYouth Theatre Development15,00088,800
Godalming MuseumThorburn Watercolour3,00025,935
40 Degreez (Farnham Youth project)Phase 2 Lift3,75015,000

Loan
Farnham MaltingsFundraising50,000 loan repayable over 5 years (25,000 of the 50,000 loan taken-up and paid in 2004/5
The Maltings will also receive continuing funding in 2006/07 towards its refurbishment project. Rate Relief

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

OrganisationMandatory
Rate Relief
Discretionary
Rate Relief
Amount
Cost to Waverley (75% of Discretionary Rate Relief)
Age Concern Waverley1057.65264.421322.07198.32
Age Concern Haslemere and District4763.001190.755953.75893.06
Age Concern Cranleigh and District2979.04744.763723.80558.57
Brightwells Gostrey1073.84268.461342.30201.35
Citizens Advice Bureau – Farnham4589.801147.455737.25860.59
Citizens Advice Bureau – Godalming7967.201991.809959.001493.85
Citizens Advice Bureau – Haslemere and Cranleigh5196.001299.006495.00974.25
Cranleigh Arts Centre4070.204070.20
Farnham Maltings24074.8024074.80
Godalming Museum Trust4072.661018.165090.82763.62
Haslemere Educational
Museum
26672.806668.2033341.005001.15
Haslemere Hall Trust3048.323048.32
Milford and Villages Day Centre4503.201125.805629.00844.35
Farnham Youth Project2840.48710.123550.60532.59
Total96908.9916428.92113337.9112321.70

Timetable

15. The Community and Environment and Leisure Overview and Scrutiny Committees will consider this report and pass their observations to the Executive to consider at its meeting on the 6th February 2006. Applicants will be notified of the results of their applications after the Council meeting on 20th February 2007.

Recommendation

It is recommended that the Committee consider:

1) the Sponsored Organisation Scheme applications within its remit as detailed in Annexe 1 and makes grant recommendations to assist the Executive in its consideration of all applications on 6th February 2007; 2) the proposal to contribute to the Waverley Voluntary Grants Panel in 2007/08 at the level of 52,410, being the 2006-07 level plus inflation; and, 3) whether to adjust the proposed amounts to enable either/both the Cranleigh Arts Centre and the Haslemere Educational Museum to receive additional grant in 2007-08. Members of the Environment and Leisure O & S Committee may wish to consider the potential impact to organisations within its remit of any proposed adjustments and pass any comments to the Executive. Background Papers (DoF)

Sponsored Organisation Scheme application forms.
___________________________________________________________________
CONTACT OFFICER:

Name: Graeme Clark Tel: 01483 523236
E-mail: grclark@waverley.gov.uk
Mike Horlock Tel: 01483 523257 E-mail: mhorlock@waverley.gov.uk

comms\o&s3\2006-07\167.doc