The Sheffield Compact 2012
Summary
1. Introduction
What is the Sheffield Compact?
The Sheffield Compact is an agreement between public sector organisations
and third sector organisations in the city. It aims to strengthen working
relationships between the two sectors to deliver the best possible results for
the people of Sheffield.
The Compact is not legally binding, but all partners should aim to use the
guidance of the Compact as their best practice.
Most importantly, the Compact is a tool to strengthen relationships and to
increase trust and co-operation between the sectors.
What are the benefits of having a Sheffield Compact?
Effective partnerships between public sector organisations and the third
sector will help achieve the following outcomes:
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A strong, diverse and independent third sector
Effective and transparent design and development of policies,
programmes and public services
Responsive and high quality programmes and services to the people of
Sheffield
Clear arrangements for managing changes to programmes and
services
A more equal and fair society
2. Shared Compact Principles
Public sector and third sector signatories are committed to the following
principles:
Respect: Effective partnerships are built on the understanding of all parties
and an appreciation of the differences between partners of the Compact.
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Honesty: Full and frank discussions should be the basis for preventing and
resolving difficulties.
Independence: The independence of the third sector is recognised and
supported. This includes its right within the law to campaign, to comment on
and to challenge policy (whatever funding or other relationship may exist) and
to determine and manage its own affairs.
Accountability: The public and third sectors are accountable in different
ways, but both need to act with openness and integrity.
Diversity: The public sector and the third sector value a thriving civil society,
which brings innovation and choice through a multitude of voices.
Equality: Fairness for everyone, regardless of their background, is a
fundamental goal, and partners will work together to achieve this.
Citizen empowerment and democracy: By working together, the public
sector and the third sector can deliver change that is built around communities
and people, meeting their needs and reflecting their choices.
In addition to the seven principles, there are eight sections to the Compact,
with commitments for both public sector and third sector organisations. These
sections are:
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A strong, diverse and independent third sector
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Responsive and high quality programmes and services

Effective and transparent design and development of policies,
programmes and public services
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Allocating resources
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Monitoring and reporting (contract management)

Clear arrangements for managing changes

Promoting equality and diversity

Promoting volunteering
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Key commitments for public sector signatories are to:

Respect and uphold the independence of third sector organisations to
deliver their mission, including their right to campaign, regardless of
any relationship, financial or otherwise which may exist.
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Subject to availability of funding, ensure that the third sector is
supported and resourced in a reasonable and fair manner where it is
helping the public sector in Sheffield fulfil its aims.
In relation to the development and design of responsive and high quality
programmes and services
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Take into account social, environmental and economic value when
designing, developing and delivering policies, programmes and
services.

Plan new programmes and services with a focus on outcomes,
providing scope for innovation wherever possible.

Consult widely and early with the sector where policy decisions are
likely to have a significant impact on the role of the sector. As far as
possible consultations should be 12 weeks for written responses, but
may be less in urgent and exceptional circumstances which should be
set out in writing, when as much time as possible should be allowed
according to the circumstances.
In relation to allocation of resources:

Recognise that it is appropriate, where organisations choose to do so,
for organisations to include relevant financial overhead and
administrative costs in applications, including costs associated with
volunteering.
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Be consistent across sectors when requesting cost breakdowns from
organisations.
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Ensure that application documents are publicised widely; proportionate
to the nature of the risk and amount of funding being allocated and
contain enough information to allow organisations to make informed
decisions.
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Where possible and appropriate, commit funding for three years or
more.
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Where possible, make funding decisions and inform organisations
three months in advance of the expected start date.
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Make payments within 30 days of a properly prepared and valid invoice
being received.
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Set out a process for managing performance and responding to
changing circumstances in the agreement.
In relation to monitoring and reporting:

Recognise that appropriate levels of monitoring can reduce costs and
focus time and effort on delivering results.
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Ensure monitoring and reporting is proportionate to the nature and
value of the opportunity. Focus on evidence that is meaningful to the
beneficiaries of the service, as well as to funders.
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Where a funder has multiple contracts with the same provider, combine
common aspects of reporting where it is possible to do so.
In relation to managing change:
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Plan ahead for the end of or changes to funding in order to reduce the
impact on organisations and service users.
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Wherever reasonably possible, give a minimum of six months’ notice in
writing when ending a funding relationship or other support, and
provide a clear rationale for why the decision has been taken. For
Sheffield City Council, this exceeds the minimum of three months’
notice recommended in the Best Value Guidance and demonstrates
the Council’s commitment to fairness and transparency.
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Key commitments for third sector signatories are:
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Be guided by their organisation’s values and frank about their
challenges.
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Ensure independence is upheld, focusing on the cause represented,
regardless of any relationship they have with public sector
organisations, financial or otherwise.
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Apply Compact principles when sub-contracting to other third sector
organisations.
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Identify groups that are in danger of being marginalised, excluded or
are currently under-represented in voluntary activity and put in place
measures to promote their involvement.
In relation to the development and design or responsive and high quality
programmes and services

When putting forward ideas, focus on evidence-based solutions and
social, environmental and economic value, with clear proposals for
positive outcomes.
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Keep local public bodies informed of issues and matters that impact on
or are relevant to the provision of services.
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Respect the confidentiality of statutory sector information when given
access to it on that basis. Accept that, in rare cases, consultations may
need to take place in shorter time frames than 12 weeks.
In relation to allocation of resources:

Accept that funding organisations must work within the constraints of
procurement and other legislation and regulations, their own rules of
procedure, and their budgets.

Organisations should consider opportunities to work in collaboration
with others, to enable innovation, value for money and high quality
service delivery.
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Have appropriate governance arrangements in place and ensure that
everyone involved understands and agrees to delivery terms.
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Have appropriate systems in place to manage and account for
finances.
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In relation to monitoring and reporting:
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Recognise that monitoring, both internally and externally, is an element
of good management practice.
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Ensure that systems are in place to deliver the reporting required, and
be open and transparent in reporting.
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Give early notice to funders of significant changes in management, or
financial or other risks.
In relation to managing change:
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Plan for the end of funding to reduce any potential impact on
beneficiaries and the organisation, taking into consideration the views
of service users.
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Contribute positively to reviews of programmes or services to inform
future practice.
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Take practical action in partnership with government at all levels and
other public bodies to eliminate discrimination, advance equality of
opportunity and build community links.
Key commitments for both sectors in relation to equality and diversity
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Work together to take practical actions towards eliminating unlawful
discrimination and promoting equality of opportunity, and ensuring a
voice for under-represented and disadvantaged groups.
Compact Pledge
All local public sector and third sector organisations are encouraged to sign
the Compact Pledge which is available at www.sheffield.gov.uk/compact.
Dispute resolution
If your organisation believes that an organisations policies, processes or
practices are in breach of the Compact and would like to discuss using the
Compact mediation process, please contact the Compact officer, Victoria
Penman, on 0114 2734755 or by email at compact@sheffield.gov.uk.
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