ITEM 9 Community Solutions Programme Update
North Lanarkshire Council · 22 May 2024
Back to IJB Performance, Finance and Audit Committee — 22 May 2024 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
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1 REPORT Item No: 9 SUBJECT: Community Solutions Programme Update TO: IJB Performance, Finance & Audit Committee Lead Officer for Report: Maddy Halliday, CEO, Voluntary Action North Lanarkshire Author(s) of Report Maddy Halliday, CEO, Voluntary Action North Lanarkshire DATE: 22 May 2023 1. PURPOSE OF REPORT This paper is coming to the IJB PFA for: For Approval: ☒ For Endorsement: ☐ To Note: ☒ 2. ROUTE TO THE BOARD This paper has been: Prepared By: ☒ Reviewed By: ☐ Endorsed By: ☐ Maddy Halliday, CEO, Voluntary Action North Lanarkshire (VANL). 3. RECOMMENDATIONS 3.1 It is recommended that the IJB PFA Committee: (1) Acknowledge the positive progress of the Community Solutions Programme during 2023-24. (2) Note that the Community Solutions Programme reach and impact data for 2023-24 is currently being analysed and the Programme’s 2023-24 Annual Impact and Learning Report will be available for the September meeting of the IJB, (3) Consider the issues set out below concerning increasing risks to the Community and Voluntary Sector’s (CVS) ability to deliver support in North Lanarkshire due to cost of living and funding challenges. (4) Endorse the North Lanarkshire Community and Voluntary Sector Fair Funding Charter appended to this report. (5) Agree that an EQIA is undertaken for the programme during autumn/winter 2024. 4. VARIATIONS TO DIRECTIONS? This section outlines if the report requires a direction to be issued to the Local 1
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2 Authority, the Health Board, to both, or that no direction is required Yes ☐ No ☐ N/A ☒ 5. BACKGROUND/SUMMARY OF KEY ISSUES 5.1 Overview of the Community Solutions Programme 5.1.1 Community Solutions is a successful, cross-sector health and social care investment and improvement initiative, established in 2012. The programme’s aim is to improve people’s health, wellbeing, quality of life and equality by investing in community-led initiatives which build community, family and individual strengths and resources - with a focus on prevention and early intervention. 5.1.2 The programme is an innovative, effective, and respected partnership between: University Health and Social Care North Lanarkshire (UHSCNL) North Lanarkshire Children’s Services Partnership (NLCSP) NHS Lanarkshire The Scottish Government Voluntary Action North Lanarkshire the wider community and voluntary sector 5.1.3 The Community Solutions Strategy and Investment Plan 2022-25 was approved by the IJB in 2022 and delivery of which is supported through the following governance arrangements are supported as follows. Six Locality Consortia, convened and supported by the six Locality Hosts. A partnership Governance Group, convened and supported by VANL, with members including: o council and NHS staff o representatives of the locality hosts and consortia o representatives for carers and service users o VANL’s CEO and a trustee representative Participation in UHSCNL Strategy Leadership Team meetings and Integrated Joint Board (IJB). 5.1.4 Programme evaluation and accountability is supported through the following: A robust Performance Management, Evaluation, Learning and Improvement Framework and process that measures reach and impact and supports ongoing learning and improvement by funded projects and more widely. This also supports UHSCNL Human Learning Systems approach. Publication of Annual Programme Impact and Learning Reports and Impact and Learning Reports for specific funds Updates to IJB PFA and formal annual reports to IJB in autumn each year Formal reports to other funders Reporting to North Lanarkshire Council’s Adult Care and Social Work Committee, with the first report considered at its May 2024 meeting. 2
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3 5.2 Community Solutions Progress 2023-24 5.2.1 Between April 2023-and March 2024, VANL managed just over £4 million in funding for the programme, on behalf of several funders including: University of Health and Social Care North Lanarkshire (recurrent programme funding and fixed term funding for several initiatives including Community Connectors pilot) North Lanarkshire Council (Children and Young People’s Mental Health and Wellbeing Fund) Scottish Government (Communities Mental Health and Wellbeing Fund) 5.2.2 This funding supported delivery of the following, complementary elements of the programme during 2023-24, as outlined below. The Programme’s Annual Impact and Learning Report will be available in Sept. 2024 which will provide comprehensive information on the following: Funded projects reach and outcomes Capacity building work Programme improvements 5.2.3 This annual report will also be supplemented by the programme’s 2023-24 Finance report and 2024-24 budget. 5.3 Larger Funding Awards to Community and Voluntary Sector Organisations 5.3.1 Provision of funding awards to Community and Voluntary Sector (CVS) organisations during 2023-24 to deliver services to local people on a range of priority issues including those listed below, which is managed by VANL on behalf of funders and with support of partners: Anticipatory Care Support * Befriending Support * Carer Breather Fund - Phase Two Children, Young People and Families Mental Health and Wellbeing Fund - Phase Four Community Mental Health and Wellbeing Fund - Phase Two Community Transport * Hospital Discharge Support * 5.3.2 A review of several thematic funds (*) was scheduled for 2023-24. However, progress was delayed due to staffing capacity issues in VANL between Oct. 2023 and April 2024. This work has now been restructured to include an intense development programme involving external support from a charity “The Lens,” during May 2024. This work will explore the following areas and develop updated investment proposals, which will improve health, wellbeing, and inclusion, whilst reducing demand on public services: Our Community Connectors’ pilot scheme (see below). Continuation of our effective support for people discharged from hospital 3
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4 provided by the CVS. Support for unpaid carers – especially short breaks from caring – which is already demonstrating benefits. Strengthening CVS support for physical activity given the significant benefits to health that can be achieved through physical activity and the potential for the CVS to provide further support. Strengthening volunteer driver support for people attending health and social care appointments, to support access and inclusion more cost-effectively. Review of anticipatory care and befriending will be supported through a separate complementary process during summer/autumn 2024. 5.4 The Improving Lives Initiative 5.4.1 In February 2022 UHSCNL agreed an additional, fixed term investment through the Community Solutions Programme of £1.2 million to support community- based prevention and early intervention activities. In addition: UHSCNL and NHS Lanarkshire had secured in principle agreement with MacMillan Cancer Care for funding to support improved support for people with cancer across Lanarkshire NHS Lanarkshire, with support from VANL, had secured funding through NHS Charities Together to support further progress on social prescribing in North Lanarkshire. These funds were combined to establish the “Improving Lives Initiative” (ILI) – to be delivered through the Community Solutions programme in North Lanarkshire. 5.4.2 A proposal was collaboratively developed during 2022 by and with senior staff at VANL and UHSCNL with members of the Community Solutions Governance Group, Locality Hosts and others. This proposal was agreed in late 2022, with implementation commencing from April 2023. 5.4.3 The focal point of ILI is a pilot of Community Connectors using the “three conversations” approach to assist people in crisis to help them find support from community and voluntary groups and, if appropriate, refer them to sources of support from the public sector. This includes people with a diagnosis of cancer. 5.4.4 Ten connector posts are funded for two years through ILI. These posts are employed by North Lanarkshire Disability Forum, which has considerable relevant experience having previously employed advisors to assist people with self-directed support for over six years with national funding. Unfortunately, due to some challenges in reaching final agreement with MacMillan Cancer Care around the Connector posts, recruitment could not commence until summer 2023. However, the majority of Connector posts were filled by autumn 2023. 5.4.5 In addition to funding the ten Community Connector posts, the ILI funding also provides: Additional funding to the six Community Solutions Locality Hosts to promote the Community Connector service in their localities and provide other support to the Connectors. Additional funding for the six Locality Activity Funds Development and co-ordination funding to VANL 4
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5 5.4.6 To improve access to information about CVS support in North Lanarkshire, VANL is also supporting use of A Local Information Service for Scotland (ALISS). The Connectors will use ALISS to find sources of support for the people they are assisting. ALISS is also accessible to the general public to use as well as CVS staff and volunteers and UHSCNL staff. 5.4.7 Early progress reports from the Community Connectors indicates the approach is working well, with more comprehensive information available in autumn 2024. 5.5 Small Grants to Community and Voluntary Sector Organisations 5.5.1 The programme’s Local Activity Fund (LAF) provides small grants of up to £5,000 to local groups to support delivery of improved support for residents. LAF is managed by the six Community Solutions Locality Consorti and Hosts, with support from VANL 5.5.2 During 2023, new LAF Guidance was developed by VANL with Locality Hosts and the Governance Group and was issued in November 2023 to strengthen LAF management. 5.6 Capacity Building Carers’ Capacity Building 5.6.1 The programme provided a grant to North Lanarkshire Carer’s Together to support empowerment and engagement of carers in various ways, through a Carer’s Network and in other ways. Community and Voluntary Sector Capacity Building 5.6.2 The programme provided funding to VANL to support provision of specialist guidance to CVS organisations so they are more effective in delivering their Community Solutions funded work and in securing funding from other sources. This includes guidance on key issues such as governance, income generation, finance, HR, evaluation. Capacity Building Support for CVS Organisations Supporting Children, Young People and Families 5.6.3 The programme provides funding to VANL to support provision of specialist guidance to CVS organisations that assist children, young people and families. In addition to provision of the above organisational support, this also includes convening and a North Lanarkshire CVS Children Young People and Families Network which facilitates sharing of good practice, joint working and contributions to cross-sector working on key issues such as tackling child poverty, breast-feeding and mental health. Volunteering Capacity Building 5.6.4 The programme provided funding to VANL to support volunteering including: promotion of volunteering to increase the number of volunteers in health and social care support roles liaison with volunteer-involving organisations to increase the number of health and social care volunteer roles and to improve their volunteer management and support 5
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6 support to match volunteers to available roles 5.6.5 To support the above work, VANL also convenes the North Lanarkshire Volunteering Partnership to facilitate cross-sector working to implement our North Lanarkshire Volunteering Strategy, agreed by IJB in 2023. 5.7 Improvements to Programme Governance, Management and Support Locality Governance and Support 5.7.1 During 2023-24 VANL staff worked with members of the Programme’s Governance Group, Community Solutions Locality Hosts and consortia members to develop, agree and implement the following improvements: Clarification in the funding award letter for Locality Hosts that they also needed to support improved links between their support for Community Solutions and Community Planning in their locality. This was complemented by improved liaison between VANL staff supporting the programme and VANL staff supporting Community Planning and locality level. Improved Terms of Reference for Locality Consortia, implemented from November 2023 Updated membership guidance issued in November 2023, with refreshed membership completed for each consortia by end of March 2024. Updated LAF guidance issued in November 2023. Programme Management and Support 5.7.2 Improvement in the programem management and support has focused on: Development and agreement of a first SLA between VANL and North Lanarkshire Council for UHSCNL for the recurrent funding element for the Community Solutions Programme for 2023-25. This is supplemented by several “call of contracts” for fixed term funding. Development and agreement of a new SLA between VANL and NHS Lanarkshire for the Improving Cancer Journey funding. Implementation of the improved programme Performance Management, Evaluation, Learning and Improvement Framework, including development and publication of improved resources for funded projects and use of Care Opinion by funded projects. Development of a new Community Solutions website during 2023, with launch in March 2024. Strengthening of VANL’s funding management processes and data management. Development and agreement of a Community Solutions Feedback and Complaints Procedure. 5.8 Challenges Complaints 5.8.1 Between summer and autumn 2023, three complaints were submitted to VANL regarding the Programme’s Locality Host in Airdrie. These complaints were thoroughly and fairly investigated by a mix of designated VANL staff and an 6
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7 independent investigator commissioned by VANL. The complaints against the locality host were not upheld, with the exception of one aspect of one complaint regarding a process issue. The latter was partially upheld because the process failing was not due to the locality host but inadequate guidance to them through the programme – now corrected with the locality improvements cited above. 5.8.2 In December 2023, one complainant lodged a supplementary complaint against VANL for the delay in progressing the investigation into their complaint regarding the Airdrie Locality Host. This was upheld, with an apology and explanation provided in that the delay was due to the fact VANL staff were already investigating two other complaints submitted earlier and had staffing capacity issues. This was addressed by commissioning an independent investigator to complete their complaint. VANL Staffing 5.8.3 VANL experienced capacity challenges in its core Community Solutions team during 2023-24 due to sick leave and departure of two key members of staff. Three temporary posts have been recruited to provide necessary capacity between April 2024 and March 2025. A fuller review of VANL staffing needs to support delivery of the programme will commence in autumn 2025, linked to negotiations around the new SLA. 5.9 Looking Ahead to 2024-25 5.9.1 The core elements of the Community Solutions programme as set out above will continue to be delivered during 2024-25 with funding already in place until March 2025 - namely the: Improving Lives initiative pilot thematic funds Local Activity Fund Capacity building 5.9.2 VANL will continue to provide support for programme management evaluation, learning and improvement. 5.9.3 Proposals for future funding for the Community Connectors and key thematic issues beyond March 2025 will be developed through the process supported by “The Lens” and other reviews, as outlined above, with the aim of securing agreement on future funding from April 2025. 5.9.4 Recurrent funding for the Community Solutions Locality Hosts, Local Activity Fund, Capacity Building and VANL’s programme support role will be reviewed with UHSCNL colleagues from autumn 2024, with a view to securing agreement on a new SLA by April 2025. 5.10 Risk and Funding Issues for the Community and Voluntary Sector 5.10.1 The CVS is a vital part of our health and social care system and provides highly cost-effective support spanning prevention, early intervention, crisis and recovery and ongoing support. This has long been recognised by UHSCNL, which is why it has invested in the Community Solutions programme over the last 12 plus years, providing much-needed and welcome investment in our CVS 7
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8 to enable provision of cost-effective support and services to local people. However, Community Solutions provides project funding and so funded organisations also need to secure other funding to cover their general running costs. 5.10.2 There has been significant growth in the total funds awarded through the programme in the last two years due to the ILI fund and the Scottish Government Communities Mental Health and Wellbeing Fund. However, there has been very modest increase in the recurrent funding for the programme since it was established 12 years ago – c4% between 2022-24 - which, given inflation, is a significant cut in real terms. 5.10.3 More generally, the CVS, as for the public sector, is struggling with significant increases in operating costs in the last two years. This, combined with increasing demand for its services and inadequate funding overall, means the viability of many CVS organisations of all types and sizes, is at risk. Increasing numbers of CVS organisations are closing, are at risk of closing or are reducing their services. This applies to organisations of all sizes including large national charities and smaller community organisations. 5.10.4 In addition, because funding for the CVS by the public sector is classified as “discretionary” rather than statutory, at a time of pressure, removing or reducing funding from the CVS could be seen as an easy option, leading to greater demand on more expensive public sector services. North Lanarkshire IJB’s ongoing commitment to mainstreaming funding to VANL is imperative to the sector’s continued stability. 5.10.5 Also, where the CVS are providing “public services,” it is only fair that they receive adequate funding to do this. VANL worked with the CVS in North Lanarkshire during 2023 to develop a “Fair Funding” Charter which we launched in November 2023. (Our work also informed national agreement on shared principles of Fair Funding with the other 31 Third Sector Interfaces (TSIs) in Scotland who have launched their own local Charters. This is complemented by joint work between TSIs and Scottish Council for Voluntary Organisations (SCVO) to promote fair funding principles through government.) 5.10.6 VANL is formally sharing the North Lanarkshire Community and Voluntary Sector Fair Funding Charter with the PFA Committee for consideration, with a view to referring to the IJB for formal endorsement. 6. CONCLUSIONS 6.1 This report provides an overview of the positive progress delivered through the Community Solutions programme during 2023-24 with the annual report providing more comprehensive data on reach and impact to following in autumn 2024. 6.2 The report also summarises continuing delivery of committed work during 2024- 25 and plans to review future commitments beyond March 2025. 6.3 The report also sets out the significant and increasing risks to CVS capacity to continue 8
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9 to deliver its vital services and presents the North Lanarkshire Community and Voluntary Sector Fair Funding Charter for initial consideration by the PFA Committee. 7 IMPLICATIONS 7.1 NATIONAL OUTCOMES Link(s) to National Health and Wellbeing Outcomes People are able to look after and improve their own health and wellbeing and live in good health for longer ☒ People, including those with disabilities or long-term conditions, or who are frail, are able to live, as far as reasonable practicable, independently and at home or in a homely setting in their community ☒ People who use Health and Social Care Services have positive experiences of those services, and have dignity respected ☒ Health and Social Care Services are centred on helping to maintain or improve the quality of life of people who use those services ☒ Health and Social Care Services contribute to reducing health inequalities ☒ People who use Health and Social Care Services are safe from harm ☒ People who work in Health and Social Care Services feel engaged with the work they do and are supported to continuously improve the information, support, care and treatment they provide ☒ Resources are used effectively and efficiently in the provision of Health and Social Care Services ☒ 7.2 ASSOCIATED MEASURE(S) Please see details of governance arrangements for the Community Solutions in section 5.3.1 above. 7.3 FINANCIAL The following financial information on the Community Solutions Programme will be available in June 2024. 7.3.1 Community Solutions Programme Finance Report 2023-24 9
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10 7.3.2 Community Solutions Programme updated budget 2024-25 This paper has been reviewed by Finance: Yes No X N/A 7.4 RISK ASSESSMENT/RISK MANAGEMENT Relevant Risk Register Details Current Risk Level Risk Owner Funding risks to the Community and Voluntary Sector Very High Senior management, Health and Social Care Senior A new high risk is also proposed relating to continuing funding for the Community Solutions programme from April 2025, given current funding agreements with HSCNL and other funders end in March 2024 and need to be renegotiated from autumn 2024 at a time when UHSCNL and other funders have significant financial pressures. 10
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11 7.5 ENGAGEMENT & PARTICIPATION Please tick the engagement and participation objectives that link(s) with this piece of work and provide further details on the engagement and participation that was undertaken. Objectives Further details ☒ Involve stakeholders in the development work aimed at achieving the national outcomes The Community Solutions is a collaborative initiative involving multiple stakeholders in work which contributes to achievement of national outcomes. ☒ Provide stakeholders with information on how to get involved The Community Solutions provides information to stakeholders in multiple ways including: the Community Solutions website quarterly Community Solutions ebulletins through meetings and events ☒ Ensure a diverse range of engagement and participation and opportunities are in place to suit different needs. The programme supports involvement of people who use services and carers in various ways including: consultation and other engagement activities through funded projects to assess needs and preferences networking, e.g. through the Carers’ Network participatory evaluation with people who use services funded by the programme ☒ Measure how well we involve community stakeholders in the planning, design and delivery of our services. CVS organisations applying to the programme for funding are asked to clarify how they have involved people who use services and/or carers in developing their proposal and/or in delivery. ☒ Provide regular feedback on how stakeholder engagement and participation is shaping and influencing service development and delivery. Funded projects are asked to provide information on stakeholder engagement and participation as part of their project evaluation. 11
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12 ☒ Provide support to enable stakeholder representatives to participate meaningfully and confidently at meetings. The Community Solutions Governance Group membership has expanded to include representatives of people who use services (from May 2024) who will be supported by VANL staff to participate in meetings effectively. VANL staff will also work with Locality Hosts to strengthen participation in locality meetings by carers and people who use services. ☒ Develop participation guidelines to ensure a common understanding and set of expectations for both stakeholders and partnership staff. The Community Solutions will promote and use guidance provided through UHSCNL and also support implementation of the forthcoming North Lanarkshire CommUnity Agreement, launched on 29th April 2024. The latter was collectively developed by North Lanarkshire Partnership partner organisation with the CVS. ☒ Support engagement planning and participation in localities, taking account of other engagement activity and local plans across the Community Planning Partnership. The Community Solutions programme is supported by six locality consortia with membership including representatives from Community and Voluntary Sector organisations who also engage more widely with people who use services and carers. VANL is working with Locality Consortia and hosts to strengthen links to Community Planning at locality level. 12
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13 7.6 INEQUALITIES & FAIRER SCOTLAND DUTY EQIA Completed & Fairer Scotland Impact Assessment Form Completed and attached to report: Yes No X N/A EQIA added to website: Yes No X N/A 8 BACKGROUND PAPERS 8.1 Community Solutions: please see the programme’s website for further information 8.2 CVS and Fair Funding: Please see Voluntary Action North Lanarkshire website for more information. 9 APPENDICES Appendix 1 North Lanarkshire Community and Voluntary Sector Fair Funding Charter CHIEF ACCOUNTABLE OFFICER (or Depute) Members seeking further information about any aspect of this report, please contact the following: Community Solutions: Thomas.moan@vanl.co.uk Fair Funding Charter: Kirsty.struthers@vanl.co.uk 13
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2 North Lanarkshire Community and Voluntary Sector - Fair Funding Charter Appendix 1 North Lanarkshire Community and Voluntary Sector Fair Funding Charter VANL (SCIO) is registered as Scottish Charity no. SC041224 Launched November 2023 14
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3 North Lanarkshire Community and Voluntary Sector - Fair Funding Charter This charter sets out the principles of Fair Funding for the community and voluntary sector (CVS) in North Lanarkshire and across Scotland. The purpose of the charter is to increase understanding of the CVS’ funding support needs and improve funding provision and arrangements by public and other bodies that provide grant and other funding to our sector. Local Endorsement and Support We invite all public and other organisations which provide funding to the sector in North Lanarkshire to endorse the principles of this charter set out below, to demonstrate their commitment to implementing these fair funding principles within an agreed, reasonable timeframe. Where Voluntary Action North Lanarkshire (VANL) manages distribution of funds to the CVS on behalf of other funders, VANL will work with these funders to comply with the principles in this charter. Background Community and Voluntary Sector The CVS (also known as the Third Sector) consists of community groups, charities, development trusts and social enterprises. There are an estimated 45,000 CVS organisations across Scotland, with over 1,000 in North Lanarkshire, which provide a wide range of support and services for people of all ages and equality groups and for people and communities with diverse needs and issues. Our CVS helps to prevent problems arising; provides early and crisis support, as well as longer term assistance. The sector delivers high-value, impactful, cost-effective services in every community in North Lanarkshire and across Scotland, complementing those provided by statutory bodies such as the NHS and local authorities. (See Appendix for more information about the CVS in North Lanarkshire.) Local and National Development Our North Lanarkshire Fair Funding Charter was developed by Voluntary Action North Lanarkshire (VANL) in collaboration with the North Lanarkshire CVS Partnership Group and wider consultation with our local CVS. The draft text for our North Lanarkshire Fair Funding Charter supported discussions on fair funding at national level through the Third Sector Interface Network * and SCVO. The final text in our North Lanarkshire charter was informed by these national discussions and each TSI is now promoting the same Fair Funding principles in their area and this also supports SCVO’s national Fair Funding campaign. This collective effort will help us achieve Fair Funding for our vital and essential CVS. *VANL is a member of the TSI Network, which is made up of 32 TSIs in Scotland - one for each local authority area. Each TSI supports their local CVS, volunteering and partnership working with the public sector. Purpose 15
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4 North Lanarkshire Community and Voluntary Sector - Fair Funding Charter 1. A Strategic Investment Approach Public sector organisations in North Lanarkshire should take a “strategic investment” approach to the North Lanarkshire CVS in recognition of its significant and cost-effective contribution to supporting improved quality of life and wellbeing; advancing equality and human rights; supporting community wealth building and action to tackle the climate and nature emergencies. And, through this contribution, supporting delivery of our Plan for North Lanarkshire; Local Outcome Improvement Plans; and linked strategies such as our: Action on Climate Together Plan Economic Regeneration Delivery Plan and linked Social Enterprise Framework Tackling Poverty Strategy Health and Social Care North Lanarkshire's Commissioning Plan and linked Community Solutions Strategy and Investment Plan NHS Lanarkshire Strategy Lanarkshire Mental Health Strategy A “CVS strategic investment” approach by the public sector involves the following: Pro-active, recurring and co-produced consultation and consideration as to whether certain public services could be effectively delivered by the CVS directly or in partnership with the public sector. Resource allocation decisions can be identified through effective public engagement and community planning processes, which must include CVS organisations; An appropriate commissioning process in accordance with Principle Two (below) – which, depending on the circumstances, may involve different approaches such as: open, competitive commissioning joint, partnership or collaborative commissioning involving several parties direct commissioning from an identified provider to meet specific, unique requirements Service users/beneficiaries are involved in co-designing and evaluating the commissioned service or activity Appropriate evaluation and reporting arrangements are agreed to provide accountability to the funder and the public, in accordance with Principle Four (below) Ongoing learning is supported to inform improvements to the commissioned service and more widely The funding provided is sufficient and secure in accordance with Principle Three (below). Principle One: 16
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4 North Lanarkshire Community and Voluntary Sector - Fair Funding Charter Accessible, Proportionate and Transparent Funding and Commissioning Processes Public sector and independent funders should provide accessible, proportionate, and transparent funding and commissioning processes by ensuring: their funding and commissioning opportunities are publicised appropriately clear guidance is available on what is required for funding applications, service proposals or bids information on how and when decisions will be made is provided funding applications, proposals or bids only require a level of detail proportionate to the funding – for example, smaller funding awards requiring less detail sufficient time between the opening and closing dates is provided to allow organisations time to prepare and submit their applications, proposals or bid clear processes for managing the end of contracts - giving a minimum of three months’ notice if funding is not to be continued to support fair and effective workforce planning. 2. Principle Two: 17
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5 North Lanarkshire Community and Voluntary Sector - Fair Funding Charter Adequate and Secure Funding Public sector and independent funders - whether they are delivering grant or ‘fee for service’ funding - should provide adequate and secure funding based on full cost recovery.* This should include the following. Sufficient funding to cover the full costs of the agreed work, including legitimate overhead costs and provision for annual increases in line with inflation; or an agreed contribution to the cost of the work if they are not the sole funder. Funding of sufficient duration. At least three years for “core” grant funding and delivery of ongoing services, or sufficient funding to cover the duration of fixed-term projects and activities. * Full Cost Recovery means recovery all the costs involved in running a project or service - direct costs such as staffing and indirect costs such as a proportion of the organisation’s overheads. Funders should fund direct and proportionate indirect costs that a CVS organisation incurs in delivering a project or service. Where there is a cap on the level of FCR overhead costs, we would encourage 20%. CVS, volunteering and partnership working with the public sector. 3. Principle Three: 18
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6 North Lanarkshire Community and Voluntary Sector - Fair Funding Charter Proportionate Evaluation and Reporting to Funders Public sector and independent funders should help the CVS organisations they fund to assess and report on the reach and impact of the work they are funded to do, in a proportionate and supportive way. The funding award should cover evaluation and reporting costs in addition to delivery costs. Evaluation and reporting requirements should be proportionate to the level of funding provided, with smaller awards requiring less in-depth reporting. Clear guidance should be provided on evaluation and reporting requirements - either at the application stage or once the funding has been agreed. 4. Principle Four: 19
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7 North Lanarkshire Community and Voluntary Sector - Fair Funding Charter Understanding the Community and Voluntary Sector What is it? The community and voluntary sector (CVS) refers to organisations that have a social purpose, do not operate for profit and are not the public or statutory sector. CVS organisations may generate a surplus and own asset but this must be used to support delivery of the social purpose of the organisation. The CVS is also known in Scotland as the “third sector” or “charity sector”. The term community and voluntary sector is used here as it is more descriptive and does not imply a hierarchy between the CVS, statutory and business sectors. (The latter being the first and second sectors – even though this term is not used for these sectors!) There are around 1,000 different CVS groups in North Lanarkshire Background 20
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8 North Lanarkshire Community and Voluntary Sector - Fair Funding Charter The CVS in North Lanarkshire is large and diverse with around 1,000 different groups and organisations of different types and sizes, which provide a wide range of support and services. Local community groups, many run entirely by volunteers, often with little funding and often not registered as a charity. Despite their small size, such groups provide vital support to local people including: community lunch clubs; larders and food banks community sports groups play and toddler’s groups children and youth groups – some of which are branches of national charities such as Guides and Scouts. Small, medium and larger charities, which usually employ staff, involve volunteers and rely on regular and adequate funding, some of which may come from trading. This includes local charities and branches of regional and national charities. Churches are often registered charities. Further Education Colleges are also registered charities but are also funded by government and must operate within government regulations and guidance. “Social enterprises” – which are effectively “not-for-profit businesses” providing socially useful products and/or services. Some trading charities are effectively social enterprises but may not refer to themselves in this way. Housing associations and co-operatives are also a type of social enterprise but may not use this term and are regulated by specific legislation. Despite its diversity, the CVS is mostly small and local – it is of and for the community and supports “community wealth building”, community empowerment and participation. The term “voluntary” can be confusing as many CVS organisations employ paid staff as well as involve volunteers - as trustees and in service delivery or support roles. Also, all CVS organisations require some level of income to enable them to deliver their activities and achieve their purpose even if they do not employ staff. Local Community Groups Charities Social Enterprises 21
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9 North Lanarkshire Community and Voluntary Sector - Fair Funding Charter The CVS in North Lanarkshire provides highly cost-effective “public services”, complementing those provided by public or statutory bodies such as the NHS and the council. The CVS provides a wide range of support and services for all ages and equality groups; and on diverse needs and issues. The sector help to prevent problems arising; provide early and crisis support when problems arise as well as longer term support. Employability and financial support for example through specialist employability charities like Routes to Work and Citizens Advice Bureaux Education and learning through New College Lanarkshire, community groups and charities Affordable goods through charity shops Environmental action for example through community environmental groups Examples of the support provided by North Lanarkshire CVS include: Community support through churches and faith-based charities Social housing through housing associations and co-operatives Health and social care services including residential and home care and community support such as befriending and community transport Strengths and Assets 22
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10 North Lanarkshire Community and Voluntary Sector - Fair Funding Charter CVS organisations are set up by passionate, committed citizens who want to address a challenge and help make things better. Whilst CVS organisations’ mission and focus vary, they have a positive purpose of improving either human, environment and/or animal wellbeing. Most CVS organisations in North Lanarkshire are community-based with a focus on helping local people and support key values such as: Person-and community-centredness and responsiveness Community and user empowerment Inclusion, equality and human rights Some or our CVS organisations have a focus on environmental issues to improve bio-diversity and support climate action. Increasingly, other CVS organisations which do not have a primary environmental purpose are recognising their responsibility to operate in ways which protect the natural environment and help tackle the climate emergency. Mission-led and value-based 23
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11 North Lanarkshire Community and Voluntary Sector - Fair Funding Charter CVS organisations provide positive social benefits and great value for money. The majority are well-run - with many fulfilling a range of legal and regulatory requirements and providing clear publicly accountability. Indeed, charities are more heavily regulated than many business organisations! All registered charities in Scotland must be run in accordance with charity law and other legal requirements and provide annual reports with financial information to the Office of the Charity Regulator (OSCR). Charities with income over £500,000 a year and/ or assets over £2.8 million must have an independent audit whilst those with income between £100,000 and £499,00 must have an Independent Examination. Also, most social enterprises in Scotland support the Scottish Social Enterprise Charter. Charities income over £500,000 pa or assets over £2.8 million between £100,000 and £499,000 pa The CVS is committed to achieving positive outcomes for service users, communities and wider society and many evaluate and report on the reach and benefits of their activities and services. For example: Many CVS organisations capture and share evidence to demonstrate their impact – in North Lanarkshire for example, all CVS organisations receiving funding through the Community Solutions programme are supported to provide regular evaluation reports CVS organisations providing formal health and social care services such as home or residential care, must be registered and assessed by the Scottish Care Inspectorate and regularly receive high assessment scores – commonly higher than public or private sector providers Increasing numbers of Scottish Charities follow the Scottish Code of Good Governance Practice Further Education Colleges are assessed through Education Scotland Increasing numbers of CVS organisations that employ staff are accredited through Investors in People and those that involve volunteers are increasingly accredited through the Volunteer Friendly scheme Increasing numbers of Scottish Charities follow the Scottish Code of Good Governance Practice. Our sector’s values mean most CVS organisations are keen to support fair work practices, however, our sectors’ long term funding challenges have prevented many from formal adoption of the living wage. CVS organisations often work collaboratively with other organisations to achieve common goals more effectively - within the CVS and/or with the public sector and business sector. The Community and Voluntary sector is effective, efficient and the foundation of civic society. independent examination independent audit Reach and Benefits 24
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12 North Lanarkshire Community and Voluntary Sector - Fair Funding Charter Income Needs As for any organisation, CVS organisations need sufficient income to function and achieve their purpose. For smaller community groups this may be relatively modest funding to support volunteers and pay for facilities, activities and goods. For example a volunteer lunch club will need to find income to cover: Larger CVS organisations will usually need a higher level of income to cover ongoing, core operating costs such as office costs and key staff costs and also - depending on their purpose and activities - may need income to support the direct costs of providing services or running activities. Income Sources CVS organisations secure their income from one or more of the following sources: Public donations Grants from the statutory sector and independent funding trusts Income Fees for services provided on behalf of the public sector, usually through a Service Level Agreement Trading income from selling goods and services Agreement Local Good Practice Highlight The North Lanarkshire Community Lottery was set up in 2022 to help raise public donations for our local CVS, especially for smaller, organisations which can find it very difficult to raise income given they are usually run entirely by volunteers and their profile is smaller. Volunteer travel costs Venue hire Food CVS Income 25
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13 North Lanarkshire Community and Voluntary Sector - Fair Funding Charter Income Challenges The CVS has to work very hard to secure its income which - for the majority of CVS organisations - is fragile and inadequate. Most CVS organisations struggle with insecure and inadequate income - made worse by the current cost of living crisis, with expenditure increasing and income falling. Grant Income Grant income remains an important source of income for the CVS and this comes from two main sources: the public sector – for example the Scottish Government, local councils and NHS independent funders such as charitable trusts Securing sufficient grant funding is very challenging for all CVS organisations due to three major challenges. Insufficient availability of grant funding public sector grant funding for the CVS has remained static or reduced over the last decade applications to funding schemes are often massively over-subscribed with many CVS organisations competing for access to the same source of funding, with many unsuccessful despite good funding applications Inadequate grant awards Even where a CVS organisation is successful in securing a grant award, the amount is often insufficient to fulfil or contribute to legitimate delivery costs; the duration of the funding is often only for one year; and where a grant is for more than one year, provision for inflation is rarely made Burdensome application and reporting requirements Many CVS organisations spend a great deal of time applying for funding and reporting to funders, using scarce resources to do so, which takes time away from providing their services and activities to achieve public benefit. Income for Commissioned Services Some CVS organisations receive “fee for service” income from the public sector to provide public services through a contract or “service level agreement” (SLA). SLAs are usually secured through a competitive tendering process although some are directly commissioned. SLAs usually cover a three- or five-year period with annual review. However, they may not always provide sufficient income to cover real delivery costs or cover inflationary costs over the duration of the contract. Also, public bodies often use competitive tendering when a strategic, collaborative commissioning approach may be more appropriate. 26