Grants
Officers
Committee
ALG’s approach for
commissioning services
Report by:
Jonathan Gore
Date:
9 March 2006
Telephone:
020 7934 9548
Job
title:
Email
:
Elected
Item
no:
9
Project Manager
[email protected]
.uk
Summary:
This report outlines the views expressed during
the
ALG’s
consultation
on
its
proposed
commissioning policies and procedures, and sets
out the ALG’s approach to commissioning services
from voluntary and community organisations, which
has been informed by the consultation responses.
Recommendatio
That Members:
n:
1. Note the views expressed by consultation
respondents about the ALG’s commissioning
policies
and
procedures
consultation
document
2. Agree the ALG’s approach to commissioning
policies as set out in Appendix One.
DECISION
TAKEN BY
GRANTS
COMMITTEE
Members agreed:
1. To note the views expressed by consultation
respondents about the ALG’s commissioning
policies
and
procedures
consultation
document
2. The ALG’s approach to commissioning policies
as set out in Appendix One.
3. The timescales of this project be changed to
provide Members attending the July Grants
Committee meeting with the opportunity to
input
on
the
policies
and
procedures
outlined in the report. The new timescales
would include deferring this item from the
next Leaders Committee in July 2006 to the
following Leaders Committee in September
2006.
Introduction
1. In November 2005, Grants Committee Elected Officers agreed that
the ALG should publish a consultation document outlining its
proposed commissioning policies and procedures, and that
officers should submit a further report following the end of
the consultation period. This paper summarises the responses we
have received during the consultation process and the ALG’s
planned approach to commissioning services. Appendix One sets
out the ALG’s approach to commissioning services from the
voluntary sector. Appendix Two contains a summary of the
consultation responses received from boroughs. Appendix Three
contains a summary of the consultation responses received from
the voluntary and community sector and other funders.
Summary of consultation responses
2. The ALG had 37 consultation responses, from local authorities,
voluntary and community organisations and other funders. In
addition, a further 150 people attended consultation meetings.
3. Organisations that responded have broadly supported the
approach the ALG described in its consultation document. In
particular, the majority of respondents support a two-stage
assessment process to reduce the amount of unnecessary time
voluntary organisations spend on unsuccessful proposals. There
was general support for the ALG’s proposal to avoid tightly
define funding specifications, and to continue to be an
outcome-led funder. There was also wide support for the ALG’s
commitment to provide funding for services over three or four
years.
4. In addition, respondents want the ALG to be transparent and
open in the way it identifies need, the way it prioritises
future services, in its decision-making processes and in
identifying the risks organisations face managing the ALG’s
grants. Many respondents asked the ALG to provide support to
organisations that want to submit proposals for ALG funding –
particularly
to
provide
support
for
small
or
peer-led
organisations. Respondents want the ALG to commit to Full Cost
Recovery and to define the Full Cost Recovery model that will
be used.
The ALG’s approach to commissioning
5. Following on from the consultation, the Grants Committee
Elected Officers are recommended to agree to adopt the majority
of the proposals contained in the consultation paper, with the
following revisions or clarifications:
 to
ensure
the
ALG’s
decision-making
processes
are
transparent through the processes it develops

to seek to provide particular support for small and peer-led
organisations to help them engage in the ALG’s commissioning
processes
 to commit to Full Cost Recovery and provide guidance for how
we will assess Full Cost Recovery
 to primarily adopt a two-stage assessment process, and only
use a one-stage assessment process in clearly defined
circumstances (such as when the ALG
commissions a highly
specialised service with few potential providers)
 to extend the deadline for funded organisations to sign a
funding agreement from four to eight weeks (with an
additional ability of senior grants officers to extend this
period
to
16
weeks
when
a
group
faces
legitimate
difficulties meeting this deadline)
6. The
ALG’s
assessment
and
decision-making
summarised in the following diagram:
processes
are
ALG develops detailed commissioning processes in discussion with
the Voluntary Sector Forum by summer 2006
When developing individual service specifications, the ALG consults
London boroughs and the voluntary and community sector whether a
one-stage or a two-stage process is appropriate
ALG Grants Committee reviews the proposed service specifications
(including recommendations whether a service be commissioned with a
one-stage process or a two-stage process (most services will be
commissioned using two stages))
The service will be advertised (two-stage processes will all be
widely advertised; specialised one-stage specifications will be
publicised to relevant organisations and advertised on our website)
Two-stage process:
organisations submit their
Stage One proposals
One-stage process:
organisations submit their
proposals
ALG assesses Stage One
proposals
ALG assesses proposals
Leading members from the
ALG Grants Committee ratify
officers’ recommendations
Invited organisations
submit their Stage Two
proposals
ALG assesses Stage Two
proposals and make
recommendations
Voluntary and community organisations review ALG recommendations
and use their right to reply, at their discretion
ALG Grants Committee makes funding decision
Financial Considerations
7. The costs of implementing commissioning, such as undertaking
consultation, research and training can be met from within the
grants budget.
8. The phased implementation of commissioning may necessitate
extensions to grants for some currently funded organisations,
to sustain their operation pending the results of the
commissioning
rounds.
The
ALG
will
take
the
resource
implications of funding extensions into account when it
prepares its commissioning plan, following consultation on
future service priorities. The commissioning plan is likely to
be presented to Members in July 2006.
Legal Considerations
9. The Review Board was advised that there were no legal barriers
within section 48 to the ALG adopting a commissioning approach.
10. The ALG sought legal advice on the principles contained within
the consultation paper on commissioning and the Legal Adviser's
comments have been incorporated. The ALG is in the process of
taking further legal advice and will report any issues at the
Elected Officers’ meeting.
Equalities Implications
11. Many of the organisations funded by the ALG are led by and work
on behalf of people facing exclusion and discrimination. A
number
of
these
organisations
raised
concerns
about
commissioning during the consultation on the review.
12. Women’s organisations were concerned that the ALG would favour
generic services in the future, reducing women’s choices and
specialist services. Black and minority ethnic organisations,
particularly refugee groups, were concerned that a pan-London
focus would exclude groups serving communities concentrated in
a few boroughs, rather than spread evenly across London.
Lesbian and gay groups were worried that a greater focus on
determining needs at the level of each borough would fail to
pick up the needs of their clients who may be less visible to
individual boroughs but constitute a significant community
across London as a whole.
13. ALG officers met with representatives of Black and Minority
Ethnic organisations; Gay, Lesbian and Bisexual organisations;
older people’s organisations, second tier organisations and
women’s organisations to ensure that the ALG discussed the
implications
of
its
proposals
to
ensure
it
avoids
discrimination
and
disadvantage
in
its
approach
to
commissioning. We addressed the issues that groups raised. We
will particularly seek to address the needs of organisations
representing equalities groups as we develop support for
voluntary and community organisations to help them engage in
the ALG’s commissioning processes. We are working to ensure
that our processes and policies are accessible.
Background Papers
Funding for the Future, ALG, January 2005
Report to ALG Leaders’ Committee, Funding for the Future, ALG
Grants Review, September 2005
Commissioning
policy
procedures
consultation
document,
ALG,
November 2005
Voluntary Sector Forum response to Commissioning policy procedures
consultation document