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Perth and Kinross Council 11/463

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Perth and Kinross Council 11/463 8 PERTH AND KINROSS COUNCIL 11/463 Strategic Policy & Resources Committee – 14 September 2011 Annual Report for Following the Public Pound 2010/2011 Report by Head of Legal Services ABSTRACT This report describes the Council’s arrangements for Funding External Bodies and Following the Public Pound (FPP) and monitors the Council’s performance against the Code of Guidance for Funding External Bodies & Following the Public Pound for financial year 2010/2011. 1. RECOMMENDATIONS The Committee is asked to: a) note the contents of the report and the ongoing commitment by the Council to working in partnership with voluntary sector service providers and, b) confirm that adequate governance arrangements are in place for Following the Public Pound. 2. BACKGROUND 2.1 ‘Following the Public Pound’ means ensuring that there is proper accountability for public funds used in delivering services and providing social benefits, irrespective of the means of delivering them. 2.2 Each Executive Director is responsible for ensuring that there is clear public accountability for public funds which are provided from their Service budgets to outside organisations. 2.3 In common with other local authorities, the Council uses a number of external organisations to assist in the provision of its services. These external organisations include both private and voluntary sector providers. 2.4 Many of these arrangements are established through a commercial tendering process which results in formal contracts. The Council also enters into partnerships with service providers, particularly in the voluntary sector, and manages these through Service Level Agreements. 2.5 The Council developed a code of guidance based on the Code of Guidance on Funding External Bodies and Following the Public Pound issued by the Accounts Commission in co-operation with COSLA. It has since been developed further with a major review undertaken during 2009. Further reviews of the code were carried out in 2010 and 2011 and further improvements to the code were made on both occasions. 95 2.6 The Code covers all external bodies which receive a grant or financial support from the Council. A ‘grant’ or ‘financial support’ does not include payments made under a straightforward contract for goods and services. 2.7 The Code details the financial and other checks that are required to be carried out when assessing external organisations. The level of checks is determined by the level of funding given to each organisation. This minimises any risk to the Council and also ensures that the requirements on small organisations are not too onerous. 2.8 The Head of Legal Services is responsible as the compliance officer for Following the Public Pound. The Policy and Governance Group act as the Project Board for the oversight of governance within Following the Public Pound. 2.9 This report is the second annual Following the Public Pound report. The first annual report was submitted to this committee in April of this year covering information from financial year 2009/2010. 3. CENTRAL REGISTER 3.1 The Council maintains an electronic register for Following the Public Pound to comply with Audit Scotland recommendations. 3.2 The register provides a comprehensive overview of all funding across the Council, including those grants administered by Grants Direct. The Register has been updated with information for financial year 2010/2011. Information for the current year has not yet been added to the register while the format is being altered to align it better with user requirements. It is hoped this will be completed by September 2011. 3.3 The register enables the Council to examine and report on all applications from a single organisation and the level of support provided across a number of years. The register can also hold a record of any non-cash support that is provided by the Council to an organisation, for example any finance or accounting services provided or premises leased at nominal rates. 3.4 In line with other Audit Scotland recommendations, the register records the contact officers responsible for each individual organisation and maintains a record of the training each officer has undertaken with regard to Following the Public Pound. 4. CENTRAL REGISTER INFORMATION For 2010/2011 4.1 During the financial year 2010/2011, the Council provided funding amounting to £10,113,820 to 222 organisations. This compares with £10,821,858 and 276 organisations during the financial year 2009-2010. A complete list of the funding provided during 2010 – 2011 is attached as Appendix 1. 96 4.2 In line with Audit Scotland recommendations the 28 organisations who received more than one funding amount during financial year 2010-2011, are detailed below, and these are highlighted in Appendix 1. The total amounts given are as follows: - £ Total Organisation Services Funded Auchterarder Bloom Association TES 300 Birnam Institute TES 27,000 Churches Action for the Homeless HCC 443,192 Crossroads Care Attended Scheme HCC 326,046 Cruse Bereavement Care HCC / TES 18,237 Employment Unit HCC 92,500 Glenfarg Village Folk Club TES 1,000 Horsecross ECS 1,399,980 Independent Advocacy HCC 190,232 Kinross Voluntary Group HCC 6,359 Kinross-shire Partnership Ltd TES 8,000 National Children’s Homes ECS 216,000 Perth Association for Mental Health HCC 220,110 Perth Citizens Advice Bureau TES/HCC 289,989 Perth & Kinross Leisure – Live Active ECS 2,998,813 Perth Six Circle HCC / TES 18,580 Perthshire’s Women’s Aid TES 54,297 Perth & Kinross Association of Voluntary Services ECS/HCC/TES 193,005 PLUS TES/HCC 55,981 Princess Royal Carers HCC 196,512 PUSH HCC 83,354 Ruthven Parish Festival TES 874 SACRO ECS / HCC 332,000 Scottish Huntington’s Association HCC 28,490 Simon House HCC 136,051 Stanley in Bloom TES 900 Tayside Council on Alcohol HCC 26,138 Tayside Health Board ECS 525,500 Total £7,889,440 Financial Year 2009-2010 £8,010,716 4.3 As indicated earlier, the level of checks is determined by the level of funding given to each organisation. The following funding bands are used to determine the level of checks required: • Annual Funding in excess of £50,000 • Annual Funding between £15,000 and £50,000 • Annual Funding between £2,000 and £15,000 • Annual Funding below £2,000. 97 4.4 The Council provided funding to 32 organisations in excess of £50,000 during 2010-2011. The total amount paid to these organisations was £9,058,380. • Written agreements are in place with all these organisations • A Schedule of Payments, is in place and signed for all organisations • Monitoring Officers have been identified for all organisations and no organisation has been paid without the proper financial checks being completed. 4.5 The Council provided funding to 29 organisations between £15,000 and £50,000 during 2010-2011. The total amount paid to these organisations was £768,282. • Written agreements are in place with all these organisations • A Schedule of Payments, is in place and signed for all organisations • Monitoring Officers have been identified for all organisations and no organisation has been paid without the proper financial checks being completed. 4.6 The Council funded 42 organisations with between £2,000 and £15,000 during 2010-2011. The total amount paid to these organisations was £205,452. • Written agreements are in place with all these organisations • Financial checks have been carried out for all organisations, including review of most recent organisational accounts and confirmation of bank details • Monitoring Reports for all organisations have been produced and no organisation has been paid without the proper financial checks being completed. 4.7 The Council funded 119 organisations with less than £2,000 during 2010- 2011. The total amount paid to these organisations was £81,706. • Written agreements are in place with all these organisations • Financial checks have been carried out for all organisations, including review of most recent organisational accounts and confirmation of bank details. 4.8 Where the Council has entered into a financial arrangement with an external organisation which results in that organisation being treated as a ‘subsidiary’ in terms of the Council’s Group Accounts concept under the Accounting Code, then further scrutiny and reporting is required by means of summarised plans and management accounts. For all such organisations these have been reviewed by a relevant officer and the results included in the Council’s Annual Governance Statement for 2010-2011. 98 4.9 A Register of Interests and Indemnity Arrangements of those participating on external boards or committees is maintained by the Chief Executive’s Service. 4.10 The Council does not provide assistance in kind to any of the 221 organisations that are funded by the Council. 5. RISK ASSESSMENT A risk assessment framework has been devised and included in the Code of Guidance. The framework has differing requirements determined by the level of funding to the organisation. The risk assessment results are detailed in the Register. 6. TRAINING Training in quality assurance (PQasso) continues to be carried out for new organisations receiving funding over £15,000. This allows for different levels of monitoring depending on the size of the organisation under review and uses checklists for financial verification. A total of 39 organisations and 27 Council officers have been trained to date and further training is planned. 7. CONFLICTS OF INTEREST All officers who sit on management boards or who are otherwise involved with Following the Public Pound organisations have been asked to declare their interest in the organisation to ensure that any conflict of interests are disclosed. This information is recorded on the Central Register. 8. CONSULTATION The Policy and Governance Group and Following the Public Pound Service staff responsible for Following the Public Pound work have been consulted on the content of this report.
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