Grants Committee
Grants To Voluntary
Organisations in 2003/4 and
beyond – Financial Overview
Report
Report by:
Ian Redding
Date:
28 January 2004
Telephone:
0207 934 9802
Summary:
Item
no:
8
Job
title:
Head of Overview &
Scrutiny, Social Policy &
Grants
Email:
[email protected]
To provide Members with an overview of:
1. Grants approved for 2003/4 and beyond to
date;
2. The effects of open-bidding commitments made
to date upon the sector by sector
allocations of the full-year budget as
revised by Committee at the 10 November 2003
meeting, and of the remaining open-bidding
proposals recommended today;
3. Recommended changes to funding patterns as a
result of the 1st Year Review of 2 sectors
today;
4. The cost of short term funding initiatives
recommended for approval today.
Recommendation That Committee:
s:
1. note the contents of this report and that
the sums recommended are manageable within
the approved budget;
2. receive a further report to the next full
meeting of the Grants Committee meeting
detailing the revised position on
utilisation of grant resources.
Introduction
1.
Each meeting of the full Grants Committee receives a
financial overview report to provide financial information to
underpin decisions on refunding, recommendations under the
open-bidding process, and short-term initiatives.
2.
With decisions being taken by Committee today which
a. in the case of short term funding decisions and funding
variations, impact almost exclusively upon 2003/4, and
b. in the case of deferred open-bidding proposals, Outer
London Legal Advice ring-fenced fund, Frontline, Credit
Unions, re-funding, the Review of First Year of funding
to the Regeneration and the Women’s sectors, and
proposals for use of the Innovation Fund, the impact is
primarily felt in 2004/5 and beyond,
an updated version of the overview report is now provided to
give a revised position to date in the current year but
placing particular emphasis upon the full-year effects of
recommendations.
Full Year Effect
- The Committee’s Longer-term Programme
3.
The Committee’s annual budget has, until now, been based upon
a cash standstill for grants at £27.4 million, and on this
basis and to enable officers and Members to prioritise use of
resources and to help control them, Leaders’ and Grants’
Committees agreed an initial allocation of funding across the
various funding sectors.
4.
The
Appendix
to
this
report
analyses
those
initial
allocations and reflects all the commitments made by the
Grants Committee to date as a consequence of competitive
bidding. By way of explanation



5.
All figures used in the Appendix are full-year effect;
2nd Tier commitments are allocated to each respective
sector, reflecting the Committee’s wish that sector
specific 2nd Tier bodies are accounted for within that
sector.
ESF Co-Financing programme is shown as a separate sector
even though the client focus of ESF initiatives reflects
a number of the Committee’s priority areas;
At the Committee’s 10 November 2003 meeting, the Committee
proposed a budget for 2004/5 that reflected a £1 million
adjustment to the annual provision for grants. This proposal
was recommended to, and has now been agreed by, boroughs. As
a consequence the grants budget will now stand at £26.4
million. The Committee also agreed how the reduced remaining
balances would be prioritised. These changes are all set out
in the Appendix.
6.
At today’s meeting, the Committee will be considering the
continuing funding of organisations in the Regeneration and
Women’s sectors. These sectors are being reviewed following
completion
of
their
first
year
of
funding
following
successful open-bidding, and if the recommendations are
agreed will result in reductions in the level of on-going
commitments to Refugee Women’s Association and to Shianti
Women’s Aid, with the balance being transferred to the
Committee’s Innovation Fund.
These changes are also
reflected in the Appendix.
7.
The report at item 16 on today’s agenda reviews the effects
this has on the Innovation Fund and proposes that the Fund be
split to provide separate resources for general innovation
projects and for those focused upon developments in Outer
London.
It also details bids that have been received under
the Innovation Fund to date, and makes recommendations for
grant to four of them. The Appendix reflects the changes to
the Fund and the proposed grants.
8.
The report at item 21 on the agenda details bids received
under the Outer London Legal Advice Ring-fenced Fund and
identifies those which are considered most appropriate to
ensure the best spread of legal advice services across Outer
London. The report does not recommend grants at this time but
seeks Committee agreement that final decisions be made by
Grants Committee Elected Officers at their next meeting.
Position for 2003/4
9.
The level of expenditure approved for the Committee for the
2003/4 financial year was £28,923,370. This is resourced from
Borough contributions of £27,573,370 and estimated income and
use of balances of £1,350,000. It is apportioned in the
following way:
Grants
to
Organisations
Administrative Costs
10.
£
Voluntary 27,400,000
1,523,370
With the Committee’s prime focus in 2003/4 being the
establishment of a longer-term funding portfolio through the
open-bidding process, establishing the potential level of
funding commitments for 2003/4 has been particularly complex.
In addition to the part-year effects of successful openbidding, there have also been the range of funding extensions
to existing funded organisations in each sector up until
open-bidding grants became operational (in some cases up to 5
funding extensions covering the last year or so), and grants
under the short-term priorities that the Committee set during
2002/3 and revised for 2003/4 at the July 2003 meeting, some
of which have effects into 2004/5 and 2005/6.
A/ Effects of Open-bidding
The timing of open-bidding decisions has a direct effect upon
the extent of commitment in 2003/4 as follows:
Decisions taken during 2001/2, and re-affirmed on 15
July 2003, with a full year effect in 2003/4
 Existing 2nd Tier commitments
Decisions taken during 2002/3, with a full year effect
in 2003/4
 ESF Co-financing Programme
 Renewal Sector open-bidding
 Women’s Sector open-bidding
Decisions taken primarily on 30 April 2003, and also at
subsequent
Grants
Committee
and
Elected
Officer
meetings, with an 8-month effect in 2003/4
 Culture Sector open-bidding
 Legal & Advice Sector open-bidding
Decisions taken 15 July 2003, and the resulting deferred
bids to be considered today, with a 5-month effect in
2003/4
 All other open-bidding
On this basis, for the 14 sectors of funding allocated by
Members, the maximum potential effect in 2003/4 is set out in
the table below, together with the an estimate of the likely
effect based upon the actual decisions taken by Committee to
date, including those recommended today:
SECTOR
Homelessness & related
needs
Citizenship & Human
Rights
Community Safety /Crime
Prevention
Children & Young People
Culture
Regeneration
/Employment
Legal & Advice
Health & Social Care
Innovation Fund
Transport & Environment
Infrastructure :
Outer London
Generic 2nd
Tier
ESF Co-financing
Other
TOTALS
INITIAL
ALLOCATION
OF BUDGET
£m
4.5
2,126,000
ANTICIPATED
EFFECT
BASED ON
APPROVALS
£
2,029,700
4.0
3,141,000
3,010,300
130,700
2.8
1,994,000
1,856,200
137,800
2.0
2.9
1.2
956,000
1,878,000
1,480,000
887,300
1,878,000
1,827,040
68,700
0
(347,040)
2.0
2.2
0.8
1.2
1
0.6
1,461,000
1,641,000
129,300
741,000
832,000
700,000
1,330,500
1,654,660
129,300
703,200
807,800
798,788
130,500
(13,660)
0
37,800
24,200
(98,788)
2,000,000
200,000
19,279,300
2,000,000
150,000
19,062,188
0
50,000
217,112
2.0
0.2
27.4
MAXIMUM
EFFECT IN
2003/4
£
POTENTIALLY
UNUTILSED
IN 2003/4
£
96,300
If all of the allocation were fully utilised, this would
leave a balance of £8,120,700. However, based upon funding
decisions actually made, including the proposal agreed at the
10 November meeting regarding the Domestic Violence Education
Pack & Training Initiative, this could increase by £217,112
to £8,337,812.
B/ Funding Extensions
To match up with the timing of open-bidding decisions being
effected, grants to existing organisations in each sector
have been extended. If the level of grants agreed by
Committee in previous years continue to be extended it is
estimated that funding extensions would account for up to
£6,916,000 as follows:
Sector
Homelessness & related needs
Citizenship & Human Rights
Community
Safety/Crime
Prevention
Children & Young People
Culture
Legal & Advice
Health & Social Care
Transport & Environment
£
2,000,000
800,000
800,000
1,000,000
900,000
500,000
500,000
416,000
This includes provision for all renewals and funding
extensions reported to Committee up to and including today,
and leaves a minimum of £1,204,700 for other grants
expenditure in 2003/4 not taking account of the potential
unutilised open-bidding provision of £217,112.
11.
All of these figures will be revised in light of the final
decisions made on open-bidding issues and be reported back to
Members at year end.
New Initiatives Fund
12.
Members are reminded that the Committee also maintains a New
Initiatives Fund, which had been carried forward into 2002/3
at a value of some £688,000 and to which, at their 5 February
2003 meeting, they agreed to add a further £750,000 from
2003/4 resources, subject to audit.
13.
Therefore, subject to audit, this fund would enable further
one-off grants to a value of £1,438,000 to be agreed for
2003/4 or thereafter if Members are so minded.
14.
Members are reminded that
 at their July 2003 meeting the Committee agreed to
utilise £120,000 of this Fund to resource a 2-year
initiative under the INTERREG IIIC European Funding
Programme

some new short-term new initiative decisions made by
Committee under previous priorities, have an effect on
2004/5 and 2005/6 to a total of £650,087 and that it
is anticipated that these be met from this Fund.
Any remaining uncommitted balances at year end would be
returned to general balances to offset borough contributions
to the Committee’s budget in future years.
Short-term Initiatives in 2003/4
15.
Decisions taken up to and including the November meeting of
the Grants Committee and the December meeting of the Grants
Committee’s Elected Officers, utilised £932,824 compared to
the minimum £1,204,700 available including
 the £200,000 for continuation of a Special Grants
Programme – Disabled People in 2003/4 which had been
established in celebration of European Year of
Disabled People; and
 £452,490 for non-recurrent elements within openbidding recommendations that, at this point in time,
need to be considered as a charge against short-term
funding resources, this figure incorporating £227,426
for Day Centres agreed at the July 2003 meeting.
This leaves £271,876.
16.
The recommendations before Members today include a one-off
grant consequent to a variation in existing grant (agenda
item 20):
Organisation
Green Candle Dance Company
Total
17.
£
16,158
16,158
Also on today's agenda are a number of short-term funding
proposals (agenda item 15), two of which are recommended for
funding as detailed below. The cost of these fall wholly in
2003/4:
Organisation
Workers’ Educational Association
Arts Depot Trust
Total
£
36,965
25,793
62,758
If these are all agreed, a further £78,916 will be utilized
in 2003/4, taking commitments to £1,011,740.
This would
leave £192,960 of the initial £1,204,700.
18.
Item 9 of the Committee’s agenda reports upon delegated
authority decisions to date.
The report details short-term
funding approvals totaling £608,081. Of these, decisions up
to May 2003 were previously taken account of (£52,228),
leaving £555,853 to be resourced.
19.
Although only £192,960 is presently shown as available, this
is a minimum provision that can be supplemented by the
anticipated
under-utilisation
of
open-bidding
resources
(£217,112) and New Initiative Fund balances.
Consequently,
Committee does have resources available for all initiatives
proposed today.
For future meetings
20.
Reports providing an overview of utilisation of resources
will continue to be submitted to each meeting of the
Committee. Still to be finalised are
 the value of funding extensions to support existing
funded organisations to bridge funding until openbidding took effect; plus
 those funding extensions agreed by the Committee
beyond the effective start date of successful openbidding grants.
These will be reconciled at year-end and Members provided
with a comprehensive list of all 2003/4 grants, and of
commitments into 2004/5 and beyond.
Local Government (Access To Information Act 1985)
21.
Up to the meeting on the 28 April 1999 it had been the
practice for all refunding and new initiative reports to have
a closing section that provides information on the background
papers used by officers in preparing the reports. It is felt
that this practice is largely repetitive, is unhelpful, and
adds to the overall Length and size of the Committee papers.
22.
Under revised report formats the 'Access to Information'
section has been removed. However, Members are asked to note
that for all grant reports that follow, unless otherwise
stated, the background documents used comprise:
• The organisation's grant application
• Additional written information on services
• The most recent Audited Accounts (normally for the
year ended 31 March 2003)
• The background report on individual organisations
BACKGROUND PAPERS USED IN THIS REPORT
1. “Grants to Voluntary Organisations 2001/2 & 2002/3, and 2002/3 &
2003/4” Grants Committee reports January, March, June and
October 2002; February, April , July , September and November 2003.
2. ALG Grants Approvals Spreadsheets for 2000/1; 2001/2; 2002/3;
2003/4 and 2004/5.
APPENDIX
ALG Grants Committee - Position on Full Year commitments against
budget allocations as revised on
10 November 2003, and reflecting proposals before Grants
Committee on 28 January 2004.
SECTOR
INITIAL
ALLOCATION
OF BUDGET
COMMITMENT
S APPROVED
TO OCTOBER
2003
BALANCE
AT
9 NOV
2003
£m
£
Homelessness & related
needs
Citizenship & Human
Rights
Community Safety
/Crime Prevention
Children & Young
People
Culture
4.5
4,268,695
£
231,305
4.0
3,700,532
299,468
2.8
2,469,275
2.0
Regeneration
/Employment
Legal & Advice
1st YEAR
REVIEW
PROPOSALS
28 JAN
2004
£
(171,835)
**
REVISED
BALANCE
AS
ALLOCATED
10 NOV
2003
£
170,000
COMMITMENT
S APPROVED
FROM
REVISED
BALANCE
£
INNOVATION
FUND
PROPOSALS
28 JAN
2004
£
£
170,000
200,000
200,000
330,725
250,000
250,000
1,835,000
165,000
50,000
50,000
2.9
2,699,535*
200,465
245,000
1.2
1,547,070
2.0
1,804,243
(347,070
)
195,757
95,000
150,000
OLADF
(198,957)
**
180,000
180,000
ringfenced
Health & Social Care
Innovation Fund:
General
Outer London
Transport &
Environment
UNCOMMITTED
BALANCE
2.2
2,232,779
(32,779)
0.8
0
800,000
1.2
1,109,123
90,877
ring-fenced
20,236
350,556
80,000
20,236
80,000
60,000
0
290,556
Infrastructure :
Outer London
Generic 2nd Tier
ESF Co-financing
Other (del auth funds)
TOTALS
1
0.6
2.0
0.2
27.4
941,816
698,788
1,933,167
0
25,240,023
58,184
(98,788)
66,833
200,000
2,159,97
7
370,792
(100,000)
25,000
100,000
1,200,000
115,236
*
excluding £200,000 for Outer London Cultural Development Fund (which has an annual bidding cycle)
** savings made against original approved commitments
140,000
(100,000)
25,000
100,000
1,315,556