City Funding Strategy

Council Comprehensive Review of Funding to Third Parties (CRFt3P)

 

In responding to the proposed City Funding Strategy “Moving Forward: Together” in November 2007 the Council’s Policy and Strategy Committee agreed to progress a range of action – in particular to undertake a comprehensive review of all the funding to third parties (£130m) that the Council is accountable for. This covers all forms of grant aid and contracts for the provision of social and community-based services provided in partnership with third and private sector organisations.

 

Why is a review needed and what is meant by comprehensive?

 

The funding pattern and overall package of funding to third parties has broadly remained static since the creation of the authority in 1995/6. While reviews have covered grant and contractual arrangements in 2003/4 and in 2006-7 respectively, these have focussed upon the practical aspects of managing these funds.

 

A ‘comprehensive’ analysis of the distribution of funding is motivated by a need for the Council to provide investment in third parties which is in concert with and based on modern service priorities which reflects the needs of Edinburgh, its communities, residents and visitors.

The review will:-

  i.            set out a basis for a future investment programme in third sector services that is affordable, equitable, meets the Council’s service, policy and strategic objectives and is based on Best Value principles;

ii.            guide the future distribution of Council funding to third parties;

iii.            take account of wider national changes including transitional arrangements in relation to regeneration funding, the establishment of the ‘Fairer Scotland’ funding and the introduction of the Single Outcome Agreement with the Scottish Government; 

iv.            support the development of an efficient and effective corporate approach to the overall package of funding to third parties including assessment, performance criteria and other discrete investment;

 v.            align the funding package with the City, Council corporate, core service priorities with an emphasis on specific outcomes;

vi.            enable decision making as part of the 2009-2010 revenue budget process to cover such issues as inflation, treatment of full cost recovery and other issues;

vii.            provide clarity on contracting and grant aid arrangements, the selection of these and the basis on which they should operate;

viii.            provide the basis for the Council administration to consider the third sector investment programme within the revenue budget 2009-10; and

ix.            identify new ways of supporting and developing 3^rd sector activity consistent with improved efficiency and service quality.   

 

What are the management and consultation arrangements for the CRFt3P?

 

i.      It is intended that the Review will be progressed in the form of two phases, as follows:-

 

Phase 1 will examine funding distribution, management, innovation and relations, and;

Phase 2 to consider neighbourhood matters, premises (rentals and leases) and other matters.

 

With regard to the timetable, proposals to Council on the outcomes of the first phase of the Review are due to occur in September / October 2008, this is to enable the results to be included in the 2009-10 budget cycle.  On phase 2 it is anticipated that this will follow with final reporting around May/June 2009.                   

 

 

ii.      The Compact principles commit the Council to:-

 

a.            engage with third sector interests (and other stakeholders) over resource issues such as

            those arising in the current budget situation and the Comprehensive Review

b.            conduct the review in an environment of best practice, and;

c.            demonstrate transparency, accountability, equity, respect and good communication.

 

 

iii.  The Review is being overseen by a senior officer group in the Council, with the following providing main input:-

 

·              the Project Manager is Alex McGuigan - Corporate Projects Manager Policy, Strategy and Performance (PSP) Division in Corporate Services alex.mcguigan@edinburgh.gov.uk 0131 469 3966, complemented by the lead Project Officer - Graeme McKechnie graeme.mckechnie@edinburgh.gov.uk 0131 469 3887 supported by a project team including key departmental officers;

 

·              stakeholder input is provided in the form of a Service Partners Reference Group comprising (funded) third and private sector service partner interests to advise the process and outcomes of the review, and which operates under Compact principles.

 

 

iv.  All partners in the review are keen that the Compact principles be demonstrated throughout the review and reflect good practice. The following is therefore intended:-

·              the main source of information will be the Compact website which will be regularly updated with news and other issues within this specific area;

·              opportunities for briefing and wider discussions will also be made available in the early and late summer period, followed by a specific briefing on the findings and proposed way forward in September 2008;

·              the Project Manager will be meeting with key interests and partners to discuss aspects of the review, should you want to be included please contact the Project Manager directly as above;

·              for further information please contact the lead Project Officer as above.