APPENDIX 2
BEST VALUE REVIEW OF GRANTS TO THE VOLUNTARY SECTOR
IMPACT AND RISK ASSESSMENT
1.
Introduction
The planned savings in grant-aid, together with the Best Value review
proposals and the draft strategy for funding and working with the voluntary
sector will have a significant impact on the nature and volume of voluntary
activity funded from 2003-4 onwards. This impact is likely to be experienced
in a variety of ways by all stakeholders. The following is intended to identify
the anticipated impact, together with associated risks and proposals to
minimise these risks for all stakeholders.
2.
Factors impacting upon the nature and volume of voluntary
activity funded and upon stakeholders
Significant factors are as follows:
Planned savings
Planned savings for 2003-4 and 2004-5 will reduce the grant-aid budget by
£266,000 over the base figure for 2002-3 (£5,596,520). This is a reduction of
4.8%. As this reduction is unlikely to be entirely offset by inflation, the
inevitable impact will be either that fewer groups will be funded or that the
number of groups receiving funding will remain stable but overall they will
receive less funding. Any further planned savings agreed as part of the next
financial planning cycle will also impact in this way.
Strategy for funding and working with the voluntary sector
The City Council’s grant aid programme funds activities and services provided
by voluntary and community organisations, not individual organisations
themselves.
The priorities for funding identified in the draft strategy at Appendix 1 suggest
that the following new activities will be considered for grant-aid funding in
future:
 Sports activities, particularly those linked to increasing participation and
promoting healthy lifestyles
 Environmental activities, particularly those with an educational focus and
those with a focus on supporting urban habitats
 Housing community projects, particularly those with a focus on young
people and lifelong learning
The priorities for funding identified in the draft strategy at Appendix 1 suggest
that the following activities will not be funded through grant-aid in future:
 Recreational youth work (including those provided by uniform groups)
 Recreational play activities (including those provided by uniform groups)
 The provision of community space for a range of generic activities
The proposed strategy includes objectives, criteria and priorities for funding
activities that provide for structured youth work, play activities and community
activities with learning outcomes. The emphasis on structures activities with
learning outcomes reflects the assessment criteria used by external inspection
agencies and others in determining the scale and quality of the Council’s
provision. Voluntary organisations demonstrating their ability to meet these
criteria will be eligible for funding.
Other areas of activity currently funded will continue to fit in the proposed
priorities and criteria and therefore are eligible for funding.
The proposed strategy also refers to the priority neighbourhoods and groups
identified through the local area study undertaken to support the development
of the Council’s Neighbourhood Renewal Strategy. The use of these priorities
in the assessment of applications may lead to changes in the nature of
activities funded.
All voluntary groups operating in Westminster will be eligible to apply for
funding, providing they meet the basic conditions for grant-aid. However,
groups will need to precisely address and meet the priorities and criteria for
funding set out by the City Council in the strategy, in order to ensure that their
applications are considered for funding. The pressure of reducing resources
is likely to mean that groups which do not fully or satisfactorily address
identified priorities and criteria, will be unlikely to receive funding.
Funding agreements
Proposals to adopt funding agreements with agreed outputs and outcomes for
all awards of grant may impact on the number of organisations willing or able
to meet these requirements.
Longer term funding and capacity building
Proposals to move towards longer term funding will mean that a larger
proportion of grant-aid is committed on a medium term basis and a smaller
proportion is available to fund groups on an annual or seedcorn basis.
Proposals to support capacity building projects and initiatives within the
infrastructure organisations is likely to result in these organisations receiving a
greater proportion of the grant-aid available for revenue funding. The
infrastructure organisations are likely to be beneficiaries of longer term
funding arrangements.
3.
Managing the risk
The planned savings in grant-aid, together with the changes proposed by the
Best Value review carry potential risks for all stakeholders. These potential
risks are summarised overleaf, together with actions to minimise or eliminate
them.
Potential risk
 Planned savings in grant-aid leads to
fewer activities and/or groups funded.
 Planned savings lead to
activities/groups receiving less
funding
Stakeholders affected
 Voluntary organisations
 End-users of services
provided by grant-aided
organisations
 Co-funders
Action identified to manage and minimise risks
 Clear strategy for funding the sector, improving dialogue
and understanding
 Improved processes to ensure improved value for money
 Diversion of resources to develop capacity of the sector
 Developing a protocol, improving dialogue and
understanding
 CVSSG to maintain a corporate oversight
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Strategy for funding the sector is not
understood and/or supported by
stakeholders
Best Value review proposals are not
understood and/or supported by
stakeholders
Voluntary organisations
Councillors
Officers
Co-funders
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The development of a protocol or
Compact is not understood and/or
supported by stakeholders
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Voluntary organisations
Councillors
Officers
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Cabinet Member for Leisure & Lifelong Learning sent draft
proposals and other Cabinet Members briefed in May 2002
Best Value Review report presented and agreed at COB,
May 2002, and implications for all departments/services are
understood
Officers briefed on the review, May-June 2002
Consultation on the Strategy with the sector in June 2002
New Councillors briefed on the work and outcome of the
review, June 2002.
Strategy, priorities and criteria disseminated to the sector,
July-August 2002
Surgeries on the new application and assessment
processes, August 2002
New assessment process builds in more dialogue with
groups about priorities and criteria, Jan-Feb 2003
Strategy reviewed annually by the CVSSG
Period of dialogue and consultation on a draft protocol is
planned with all stakeholders and LSP to develop
understanding and commitment
Potential risk
 Voluntary groups currently receiving
funding are unable or unwilling to
adjust to revised criteria or priorities
 Officers are unable or unwilling to
adjust to revised priorities, criteria and
processes
Stakeholders affected
 Voluntary organisations
 End-users of services
provided by grant-aided
organisations
 Officers
Action identified to manage and minimise risks
 Consultation with the sector in June 2002
 Strategy, priorities and criteria disseminated to the sector,
July-August 2002
 Surgeries on the new application and assessment
processes, August 2002
 New assessment process builds in more dialogue with
groups about priorities and criteria, January-February 2003
 Additional staffing in the Corporate Grants Unit will increase
the resources available to support organisations wishing to
make applications
 Officers briefed and trained in new processes JuneSeptember 2002
 Officer time/resources required for new processes have
been identified and can be integrated into work plans
 CVSSG will maintain an oversight; senior officers will
demonstrate and champion the benefit of joint approach
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Voluntary organisations
Councillors
Officers
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Voluntary organisations 
End-users of services
provided by grant-aided 
organisations
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Funding agreements will not be
fulfilled
Longer term funding arrangements for
some activities will reduce grant-aid
available for annual and short term
funding
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Funding agreements are being developed with some
groups funded by Corporate Grants. This will inform
arrangements for 2003-4
New assessment process builds in dialogue with groups
about expected outputs/outcomes and relates these to
potential/possible levels of funding
Strategy will inform the most appropriate funding
arrangements
CVSSG will maintain an oversight and ensure an
appropriate balance between long term funding projects
and short term/seedcorn projects.
Potential risk
 Diverting funding to infrastructure
organisations will reduce the
availability of funding for other
activities
Stakeholders affected
 Voluntary organisations
Action identified to manage and minimise risks
 Criteria for capacity building, ensures the projects must
identify and quantify expected benefit to the whole sector
 CVSSG will maintain an oversight and review the success
of strategy to support infrastructure organisations for the
benefit of the whole sector
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The proposals to develop a resource
strategy for supporting the sector,
including co-ordinating rent and rates
relief are not understood and/or
supported by stakeholders
The audit of resources does not lead
to action
Voluntary organisations
Councillors
Officers
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The proposals to establish a resource
centre for the organisations in the
sector is not supported by
stakeholders
The work with voluntary sector
infrastructure organisations to
establish a resource centre for the
organisations in the sector does not
lead to action
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Voluntary organisations
Officers
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Best Value Review report presented and agreed at COB,
May 2002, and implications for all departments/services are
understood
Officers briefed on the review, May-June 2002
CVSSG will maintain an oversight and review the outcome
of the audit. Senior officers will champion and ensure
appropriate action is taken to co-ordinate resources
Information about rate relief will be included in application
packs
Officers will support infrastructure organisations to develop
specification for a resource centre, June-September 2002
Infrastructure organisations will inform and consult with
voluntary sector on services and activities to be provided by
a resource centre to develop understanding and agreement
Officers will support infrastructure organisations in
bids/applications for funding for project officer to develop
the resource centre
Officers and infrastructure organisations will continue to
look for opportunities for funding for a resource centre