APPENDIX 1 FPP_COP_Final
Argyll and Bute Council · 9 October 2025
Back to Policy and Resources Committee — 9 October 2025 and its agenda
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ARGYLL AND BUTE COUNCIL LOCAL CODE OF PRACTICE FUNDING EXTERNAL BODIES AND FOLLOWING THE PUBLIC POUND AUGUST 2025
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Contents 1. Scope and Background ....................................................................................................... 1 2. Application Process and Agreements .................................................................................. 2 3. TIER 1 (Cumulative Annual Funding is equal to or greater than £2 million) ......................... 4 4. TIER 2 (Cumulative Annual Funding is greater than £50,001 but less than £2 million) ....... 6 5. TIER 3 (Cumulative Annual Funding is between £1,000 and £50,000) ............................... 7 6. Funding Agreement ............................................................................................................. 9 7. Payments………………………………………………………………………………………. 9 8. Termination ....................................................................................................................... 9 9. ‘Group Accounts’ Concept ............................................................................................. 10 10. Possible Representation and Participation in External Bodies ................................. 11 11. Financial and Operational Risk Assessment .............................................................. 13 12 Flowchart .......................................................................................................................... 16 13. Central Grant Agreement Register ................................................................................... 17 14. Glossary & Reference Document: .................................................................................... 19 Appendices .............................................................................................................................. 23 Appendix A - Funding Checklist in Support of your Application ………………….……..….23 Appendix B - The Approval Process …………………………………………………………...24 Appendix C - Funding Award – Monitoring Review Checklist ………………………….……25 Appendix D - Financial Paperwork Check …………………………………………………..…26 Appendix E - Operational Capacity Assessment ……………………………………….….….28 Appendix F - Style Grant Agreement ……………………………………….…..…………..….30 Appendix G – Council Priorities…………………………………………………………………..41 Version Control Version Author Date Changes 1.0 SM, AMS, ML 27 Feb 2025 1.1 SM, AMS, ML Aug 2025
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1 1. Scope and Background 1.1 ‘Following the Public Pound’ means ensuring that there is proper accountability for public funds used in delivering services, irrespective of the means of service delivery. 1.2 When agreeing to transfer funds or provide financial assistance or assistance in kind to an external body, including an individual, the Council must be clear about its reasons for doing so and clear auditable decision making should always apply. The prime purpose of involvement with an external body, or individual should be the achievement of the Council’s strategic Objectives in the most efficient, effective and economic manner, not the avoidance of controls or legal restrictions, which are designed to secure probity and regularity in the use of public funds. 1.3 It is the responsibility of each Executive Director to ensure there is clear public accountability for public funds that are provided from their budgets to external bodies. An individual should be identified as Lead Officer for each body in receipt of funding from the Council. 1.4 The concept of ‘Following the Public Pound’ applies when a public body such as the Council or the HSCP decides to provide financial assistance to external organisations. In these arrangements, the Council agrees to provide financial assistance and/or assistance in kind to external organisations for the delivery of specified services or projects. 1.5 This Code covers all funding for external bodies provided to specific beneficiaries who receive a grant or financial assistance or assistance in kind from the Council. 1.6 For the avoidance of any doubt, this Code does not include payments made under a commercial contract for works, goods and services. For payments made under commercial contracts Services should refer to the Council’s Procurement Manual which forms part of the Council’s Contract Standing Orders. 1.7 There are some circumstances where the Council may act as a “Pass Through” Organisation whereby UK or Scottish Government acting as Grantor award a grant to the Council as grantee and the funds are to be allocated to an external organisation. In those circumstances Services should seek advice from the Financial Services Team and the Procurement and Commercial Contract Management Team (PCCMT) – legalcontractsupport@argyll-bute.gov.uk to put in place a relevant agreement ensuring the obligations conferred on the Council are passed through to the external organisation and provides the Council with a mechanism to claw back funds in the event of a failure to deliver or request by funders to return the fund. 1.8 The glossary provides helpful definitions in relation to what, for example, constitutes an external body and what constitutes financial assistance /funding/subsidy /assistance in kind.
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2 1.9 Governance of public funds does not end when the payment is made, it continues at a number of levels, including risks that may damage the Council’s reputation, that statutory obligations are not met and that public funds are misused, wasted or lost. The level of assurance that is therefore required about the organisations ability to deliver the services the Council has funded must reflect the risks that exist. 1.10 This Code follows the principle that different levels of scrutiny are required depending on the level of risk posed by each funding arrangement, the control exercised over the organisation by the Council and/or the level of funding given to each organisation. This approach is proportionate and will minimise the risks posed by organisations to our reputation, finances and statutory obligations and also ensure that the requirements on small organisations are not too onerous. 1.11 The risk assessment procedures will be based on the level of influence the Council holds over the organisation, the funding band, and the organisation’s performance arrangements. 1.12 The Council may provide assistance in kind to external bodies. The true cost of assistance in kind, net of contributions by the external body, will be taken into account in the allocation of funding. In determining the true cost of assistance in kind, note will be taken of the Council’s policy of charging for Council services on a full cost recovery basis subject to policy exemptions and in line with statutory requirements. 2. Application Process and Agreements 2.1 It is best practice for any decisions to fund an external organisation to follow an application process which is open, fair and transparent. The decision to make an award should have a clear set of eligibility criteria and decisions to fund should be made after a clear evaluation process carried out on behalf of the relevant budget holder. 2.2 Once a decision is made to offer funding or assistance in kind the decision should be committed to writing by way of a relevant agreement, depending on the type of funding. These written agreements will define roles, responsibilities and liabilities and will be used to define clear and unambiguous relationships and set out the funding and monitoring arrangements throughout the funding period. 2.3 To determine the level of monitoring/checks required, the following will be used: Risk/Control • An organisation that is significant in size and over which the Council exercises substantial control i.e. those whose annual results are included in the Council’s Group Accounts – Refer to Tier 1 • An organisation over which the Council exercises substantial control but is smaller in operational scale to the above i.e. those defined as part of the Council’s Group but whose annual results are not included in the Group Accounts due to materiality – Refer to Tier 2
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3 • An organisation that the Council has an interest in but does not control – Refer to Tier 3 And/or Funding: • Cumulative Annual Funding is equal to or greater than £2 million – Refer to Tier 1 • Cumulative Annual Funding is greater than £50,001 but less than £2 million – Refer to Tier 2 • Cumulative Annual Funding is between £1,000 and £50,000 – Refer to Tier 3 2.4 The level of assurance to be followed will be the highest identified in assessing the above criteria. 2.5 Where annual funding is less than £1,000, an officer may still choose to follow the procedures laid down for Tier 3, as although the level of funding does not fall within the following the public pound guidance, the level of risk may be such that it would be prudent to follow these procedures. 2.6 For the purposes of compliance with this Code and for cumulative annual funding of £1,000 and above, officers should, as a minimum, obtain proof of the existence of the organisation, governance arrangements, confirmation that the organisation’s aims and objectives are aligned to the relevant project or policy objective the Council or funding organisation is trying to achieve and a breakdown of the funding. A letter of agreement setting out the purpose of the funding, relevant conditions and monitoring arrangements or grant agreement depending on the Tier should be prepared to set out the various responsibilities on both the Council and the organisation. 2.7 For all organisations who receive such funding, the Council will identify: • The budget holder within the service providing the funding together with delegated authority to make the award/offer financial assistance; • The relevant accounting team contact; and • The location of the relevant budget (financial code) 2.8 The Council will manage the risks posed through the delivery of services by external bodies using established risk management processes and procedures at an operational and strategic level. Each service will be responsible for managing their own grant process, including the management and ongoing monitoring and review of any associated risks, at an appropriate frequency. The management of risk at the operational level will inform the assessment of risk in the Strategic Risk Register, the highest level of the Council’s risk management structure. 2.9 The Procurement and Commercial Contract Manager has responsibility to maintain a SharePoint Register of SLA’s, grants and agency workers in a central SharePoint repository. All financial assistance granted by Services
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4 whether by way of direct financial assistance or assistance in kind should be uploaded to this Sharepoint site which is available here Link to SharePoint Register 2.10 It is the responsibility of relevant Head of Service for each of the Services allocating any financial assistance to external organisations to maintain current and relevant information of all funding arrangements on the central Sharepoint site and to ensure that all funding arrangements have an appropriate level of monitoring and reporting per the tier system referred to in section 3. It should be noted the Sharepoint site is separate to the Council’s Contract Register which is for the purposes of recording and managing commercial contracts via the Procurement process and is governed by the Council’s Procurement Manual. 3. TIER 1 (Cumulative Annual Funding is equal to or greater than £2 million) 3.1 Information Required from the Funded Organisation 3.1.1 The following list determines the minimum information requirements of the Council for the whole organisation and the timescales in which these are required: • Financial Plan - detailed one year plan and summary 3 year plan. This will apply for each period for which funding is being granted; • Management Accounts - to be submitted quarterly and no later than 6 weeks after the period end to which they relate; and • Financial Statements - any registered company seeking funding for the first time must provide annual accounts for the 3 preceding financial years (unless a new body or less than 3 years old), audited or approved in line with Companies Act requirements for a registered company or guidance from the Office of the Scottish Charity Regulator (OSCR), in the case of a charity. Thereafter, an organisation in receipt of Council funding must present an annual set of accounts audited or approved (as required by the Companies Act or OSCR) within nine months of the financial year end. It is recognised that some organisations will, due to their size be exempt from the audit requirements of the Companies Act, in these circumstances accounts approved by the board / trustees / directors of the organisation and which include a statement setting out their responsibilities, including that of keeping proper books and records will suffice. • Objectives - statement of organisational strategic objectives. • Risk Register – corporate risk register to be supplied for each period for which funding is being granted. • Constitution/governance documentation should be held on file 3.1.2 Failure to comply with the above may result in the withdrawal or suspension of Council funding. 3.1.3 In addition to the minimum requirements as set out above, the Council will have the right to ask for or inspect:
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5 • Details of the performance of the organisation against the organisation’s financial plan; • Copies of (non-confidential) Minutes of the Board of Directors or Trustees meetings; and • Details of the organisations financial and non-financial transactions, policies and procedures • Any other information reasonably considered to be relevant to the proposed funding 3.2 Financial Checks to be completed by the Council 3.2.1 The following list details the financial checks that must be carried out by the Budget Holder, with support from their Finance Team contact, and the timescales for completing these checks. 3.2.2 Checks required every two years: • Ensure the organisation has adequate policies and procedures in place to govern the way their finances are handled. See Appendix C for details. 3.2.3 Annual checks: • Check that the projections in the financial plan are realistic and achievable; • Check that sufficient cash exists to enable the organisation to meet its financial obligations for the foreseeable future (at least 3 months); and • Check that any other material sources of external funding are secure and assess any risks relevant to the ability of the organisation to continue as a going concern. • Check the organisation has the capacity to deliver the objectives of the funding agreement and has provided sufficient monitoring/management information to meet reporting obligations 3.2.4 Where the organisation does not meet the criteria required to demonstrate its operational or financial capability, further discussions will take place to review its financial plans. Funding will only be approved where an organisation can demonstrate it has the ability to continue to meet the objectives for which Council funding is to be provided as well as its own financial obligations. 3.3 Approval, Monitoring and Reporting Process 3.3.1 Approval for funding will be given by the relevant Service, through its budget approval process and delegated authority arrangements or through the Council’s committee structure as appropriate or Policy and Resources Committee (in the event of the funding being beyond the budgeted contribution, i.e. the budget set for the organisation). An application process should be used as part of the decision making 3.3.2 An agreement committed to writing must be put in place covering the approval
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6 process and the Service are also required to update the SharePoint Link to SharePoint Register with a copy of the signed agreement attached. Example of a grant agreement is detailed in Appendix F 3.3.3 The Monitoring Body will be the relevant Service, where an annual report will be presented to DMT in the first instance, by the Budget Holder, based on reports received from the organisation. The report will cover financial performance as well as the aims and objectives of the organisation and how these are being met, whether the standards set by the Council have been met, other performance measures and targets and where applicable future plans. 3.3.4 If the monitoring report shows any areas of concern then a further report should be submitted to the relevant DMT. 4. TIER 2 (Cumulative Annual Funding is greater than £50,001 but less than £2 million) 4.1 Information Required from the Funded Organisation 4.1.1 The following list determines the minimum information requirements of the Council and the timescales in which these are required: • Financial Statements - any registered company seeking funding for the first time must provide annual accounts for the preceding three financial years (unless new body or less than one year old), audited or approved in line with Companies Act requirements for a registered company or guidance from the Office of the Scottish Charity Regulator (OSCR), in the case of a charity. Thereafter, an organisation in receipt of Council funding must present an annual set of accounts audited or approved (as required by the Companies Act or OSCR) within nine months of the financial year end. It is recognised that some organisations will, due to their size, be exempt from the audit requirements of the Companies Act, in these circumstances accounts approved by the board / trustees / directors of the organisation and which include a statement setting out their responsibilities, including that of keeping proper books and records will suffice. • Objectives - statement of organisational strategic objectives. • Risk Register – corporate risk register • Constitution/governance documentation should be held on file 4.1.2 Failure to comply with the above may result in the withdrawal or suspension of Council funding 4.1.3 In addition to the minimum requirements as set out above, the Council will have the right to ask for or inspect: • Copies of (non-confidential) Minutes of the Board of Directors or Trustees meetings; and
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7 • Details of the organisation’s financial and non-financial transactions, policies and procedures • Any other information reasonably considered to be relevant to the proposed funding 4.2 Financial Checks to be completed by the Council 4.2.1 Financial checks must be carried out by the Budget Holder, with support from their Finance Team contact, and the timescales for completing these checks. See Appendix A for a checklist of financial checks to be completed. 4.2.2 Annual checks should be completed to: • Check that sufficient cash exists to enable the organisation to meet its financial obligations for the foreseeable future (at least 3 months); and • Check that any other material sources of external funding are secure and assess any risks relevant to the ability of the organisation to continue as a going concern. 4.2.3 Where the organisation does not meet the criteria required to demonstrate its operational or financial capability, further discussions will take place to review its financial plans. Funding will only be approved where an organisation can demonstrate it can continue to meet the objectives for which Council funding is to be provided as well as its own financial obligations. 4.3 Approval, Monitoring and Reporting Process 4.3.1 Approval for funding will be given by the relevant Service, through its budget approval process and delegated authority arrangements or through the Council’s committee structure as appropriate or Policy and Resources Committee (in the event of the funding being beyond the budgeted contribution, i.e. the budget set for the organisation) (see Appendix B). An application process should be used as part of the decision making. 4.3.2 The Monitoring Body will be the relevant Council Service, to which an annual report will be supplied by the organisation for the attention of the Budget Holder. This should cover service and financial performance and any significant changes. 4.3.3 Good practice suggests that the Council Service management team should, on an annual basis, consider the objectives that are achieved through funding external bodies and reflect and/or take appropriate action on the annual reports received from the various organisations. 4.3.4 An agreement committed to in writing must be put in place covering the approval process and the Service are also required to update the SharePoint (Link) with a copy of the signed agreement attached. Example of a grant agreement is detailed in Appendix F 5. TIER 3 (Cumulative Annual Funding is between £1,000 and £50,000)
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8 5.1 Information Required from the Funded Organisation 5.1.1 The following list determines the minimum information requirements of the Council and the timescales in which these are required: • Financial Statements – The organisation must provide an annual income and expenditure account and statement of cash balance which has been approved by a person independent of the day-to-day operational running of the organisation. Such a statement needs to be provided in support of each funding claim and for each period for which Council funding is provided. • Objectives - statement of organisational strategic objectives. • Risk Register – corporate risk register • Constitution/governance documentation should be held on file 5.1.2 Failure to comply with the above may result in the withdrawal or suspension of Council funding 5.2 Approval, Monitoring and Reporting Process 5.2.1 Approval for funding will be given by the relevant Service, through its budget approval process and delegated authority arrangements or through the Council’s committee structure as appropriate or Policy and Resources Committee (in the event of the funding being beyond the budgeted contribution, i.e. the budget set for the organisation). An application process is recommended as part of the decision making. 5.2.2 The Monitoring Body will be the relevant Council Service, to which an annual statement will be supplied by the organisation for the attention of the Budget Holder. This statement should set out how the organisation has met the objectives for which Council funding has been provided. 5.2.3 The annual statement must be reviewed and signed by the relevant Head of Service. 6. Funding Agreement 6.1 An agreement committed to writing must be put in place covering the approval process and the Service are also required to update the SharePoint (Link to SharePoint Register) with a copy of the signed agreement attached.. Example of a grant agreement is detailed in Appendix F 6.2 This agreement will include non-financial targets and information, but as a minimum the following must be included: • The purpose of the funding and the expectation of use; • The Council policy/strategy the funding is linked to; • The value of funding approved by the Council, including payment date
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9 information; The period over which the funding applies; • Financial reporting requirements; • Activity monitoring and reporting requirements; • A statement on the consequences of failure to provide reporting information to the Council, i.e. the discontinuation of further funding; • A statement on the ability of the Council to deduct any debts due to the Council prior to making any further awards; • A statement on access to the accounting records of the organisation that requires to be given to Council staff, including internal and external audit staff. • Details of Council representation i.e. Councillors and Officers. • The need for the Council to be acknowledged for its support on all publicity material relating to the project/service; and • Clarification of procedures for cancelling the Funding Agreement. 7. Payments 7.1 A schedule of payments will be agreed with the receiving organisation, where appropriate, prior to the commencement of the financial year. Awards in excess of £50,000 per annum should generally be paid by monthly instalments but as a minimum, no fewer than four quarterly instalments, to minimise the Council’s financial risk exposure, in the event of the organisation encountering financial difficulties. In exceptional circumstances, alternative payment terms may require to be made, for example, to meet cash flow requirements. Arrangements should be considered on a case-by-case basis and take due cognisance of risk. 7.2 Payments will not be made to the organisation until all required information is submitted and checked and all financial checks have been satisfactorily completed. This will include a check by the Budget Holder that a correctly calculated payment schedule is in place. 7.3 In order to confirm that the relevant information has been received and checks completed the Budget Holder should retain, in the organisation’s file, a completed copy of the checklist – see Appendix A. 8. Termination 8.1 The agreement to provide financial support may be terminated if the Grant Recipient fails to meet the obligations set out on the relevant funding agreement which includes: • A failure to perform any substantial obligation on its part; or • Agreed performance indicators, or objectives or relevant conditions of the funding or investment, including the provision of information requested are not met; or • The monitoring/evaluation of the organisation and/or its performance are
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10 deemed unsatisfactory by the Budget holder. • Relevant termination provisions should be set out in the written agreement between the parties • On early termination of the agreement all unspent funds should be returned to the Council and a pro rata proportion of the annual funding will be repaid by the Grant Recipient to the Council 8.2 The agreement to provide financial support may be terminated with immediate effect where the organisation: • Is unable, at any time, to satisfy the Council that sufficient cash exists to ensure its cash flow projections can be financed; or • Passes a resolution for winding up other than for the purposes of solvent amalgamation or reconstruction where the resulting entity assumes all of the obligations of the defaulting organisation; or • Is deemed insolvent; or • Makes or proposes to make any arrangement with its creditors; or • Appoints a liquidator, receiver or administrator over any of the assets of the organisation • Any termination of the agreement shall not affect any rights or liabilities placed upon either party which have accrued prior to the date of termination. 9. ‘Group Accounts’ Concept 9.1 Where the Council has entered into a financial arrangement with an external organisation that results in the organisation being treated as a subsidiary in terms of the ‘Group Accounts’ concept under the Code of Practice on Local Authority Accounting then the following will apply: • Draft financial statements are required to be provided to the Council on a timescale to be agreed with the Finance Manager, to enable the proper and timely production of the Council’s unaudited annual accounts each year. • Audited financial statements and a summary of any audit adjustments are to be provided to the Council on a timescale to be agreed with the Finance Manager, to enable the proper and timely production of the Council’s audited annual accounts each year. • An annual assurance statement on the system of internal controls, including financial controls, is to be sent to the Finance Manager – Corporate Finance, for review and to inform the production of the Council’s Annual Governance Statement for those companies included within our group accounts. 9.2 The Council recognises the importance of its relationships with those organisations that form part of its group. In relation to the effectiveness of
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11 governance arrangements and systems of internal control for the council’s group entities, the Council places reliance on the formal external audit opinion contained in the financial statements of each individual body. 10. Possible Representation and Participation in External Bodies 10.1 In considering the question of representation it is important that the Council is clear about why it wants representation and is transparent in its decision making about which Councillors or officers will be involved and why. 10.2 The Council will only seek representation on the board or committee of an external body where: • the body clearly contributes to the achievement of the Council’s strategic aims and objectives; • the body is considered to be a strategic partner; or • it is important for the Council’s commitment to be visible. 10.3 Potential conflicts of interest that arise when Councillors or officers sit on the boards or committees of external bodies funded by the Council will be removed through the use of funding agreements. 10.4 The Council maintains an up-to-date register of interests (representation on external bodies) and periodically review the indemnity arrangements in place for directors and officers, and trustees within external bodies. The master register of appointments will be held by the Executive Director Douglas Hendry. 10.5 The Council will review its policies with other organisations upon the request of the external organisation. 10.6 Where the Council participates as a decision-maker, adviser or observer of an external body the Council must provide advice and guidance to the Councillor and/or Officer involved. This should cover: • their responsibilities to the Council and to the external body; • the potential for conflicts of interest and highlight the need to have regard to the national Code of Conduct for Councillors on the matter – including declarations of interest; • the need to recognise their duties towards the external body differ from their duties to the Council; and • the limitations on what they may disclose to the Council where there is a conflict of interest. 10.7 Councillors’ responsibilities to the Council: Councillors usually represent a political party but can also be independent. If they are a member of a political party, their priorities while in office are influenced by the priorities of the party. Councillors variously act as: Representatives of a particular ward area, decision makers for the whole
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12 council area, policy makers for future activities of the council, auditors of the work of the council, regulators of planning, licensing and other matters required by government and as community leaders. 10.8 Officers’ responsibilities to the Council: Officers engage in direct operational management of the Council's services. It is also the responsibility of the Chief Executive and senior officers to help ensure that the policies of the Council are implemented. 10.9 Responsibilities to the external body: Councillors will be bound by the rules of conduct of these organisations and their responsibility for any actions taken by them as a member of such an organisation will be to the organisation in question. Councillors must also continue to observe the rules of the Councillors Code of Conduct in carrying out the duties of that body1. 10.10 If a Councillor becomes a director of a company as a nominee of the Council they will assume personal responsibilities under the Companies Acts. It is possible that a conflict of interest may arise between the company and the Council. In such cases it is the Councillor’s responsibility to take advice on their responsibilities to the Council and to the company. This will include questions of declarations of interest. 10.11 Where a charity trustee is faced with a conflict of interest between the interests of the charity and those of the Council the interests of the charity must come first. The charity trustee must act in the interests of the charity to which they have been appointed, rather than in the interests of the Council. If in relation to a particular issue the conflict is irreconcilable, then the charity trustee in question must make this known to the other charity trustees and not take part in any further discussion or decision-making on the issue. 10.12 Conflicts of Interest: Interests which require to be declared (if known to the Councillor) may be those where the Councillor has already registered an interest and those matters where the Councillor considers there is a connection as set out in para 5 of the Code of Conduct for Councillors and that the objective test, as set out therein, is met. Most of the interests to be declared will be personal interests but, on occasion, you will have to consider whether the interests of other persons require you to make a declaration. In specific relation to Following the Public Pound the following applies: 10.13 A Councillor may serve on other bodies as a result of express nomination or appointment by the Council or otherwise by virtue of being a Councillor. Membership of statutory Joint Boards or Joint Committees which are composed exclusively of councillors does not raise any issue of declaration of interest in regard to Council business. 10.14 In relation to service on the boards and management committees of limited liability companies, public bodies, societies, charities, trusts and other 1 The Councillors Code of Conduct is available at: http://www.gov.scot/publications/code-coduct- councillors/ published 5 April 2018
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13 organisations, the Councillor must decide, in the particular circumstances surrounding any matter, whether there is a connection that requires an interest to be declared. Only if they believe that, in the particular circumstances, the nature of the interest is so remote or without significance, should it not be declared. It is vital to always remember the public interest points towards transparency and, in particular, a possible divergence of interest between the Council and another body. 10.15 The Councillor Code of Conduct includes specific exclusions in relation to the declaration of interests. These apply to enable the Councillor to take part in the consideration and discussion of, and to vote upon, any matter relating to the body in question. The Councillor is required to declare his or her interest at all meetings where matters relating to the body in question are to be discussed. This is always provided the exclusion does not apply in respect of any matter of a quasi-judicial or regulatory nature where the body in question is applying to the local authority for a license, a consent or an approval, is making an objection or representation or has a material interest concerning such a license, consent or approval or is the subject of a statutory order of a regulatory nature, made, or proposed to be made, by the local authority. 10.16 Limitations on what can and cannot be disclosed: This cannot be easily defined and Councillors and officers are advised to seek advice from, for example, the Council’s Monitoring Officer should there be uncertainty about issues of conflict of interest. 10.17 It is not possible for the Council to ensure Councillors or Officers of the Council in relation to their capacity as trustees, directors or officials, therefore it is for each external organisation to consider their own risks and determine the level of insurance / indemnity cover that’s required. There will be circumstances where no indemnity insurance is required, and this is acknowledged by the Council. 10.18 The Council will periodically check the indemnity arrangements that exist within external bodies where Councillors or Officers participate. 10.19 The Head of Legal and Regulatory Support retains a register of representation on external bodies in a format they deem suitable for the purpose. Decisions in relation to representation will be taken by the relevant Council Committee or at the first meeting of the Council. 11. Financial and Operational Risk Assessment 11.1 Financial Assessment and Approval 11.1.1 For funding awards there requires to be a financial assessment made and documented by the relevant qualified finance contact for the Service , and signed off by the relevant Finance Manager in relation to the financial stability of the organisation and for those which have operated for more than 3 years, 3 years financial statements should be supplied to the Council in the first instance. Where the funding is between £50,000 and £2 million this should be
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14 looked at on the basis of the preceding year’s approved or audited financial statements, cash flow and business plan. 11.1.2 Newly (or recently) formed organisations should be asked to submit detailed financial plans together with cash flow forecasts, and/or business plans. 11.1.3 Services are required to source the relevant documentation. 11.1.4 Where specific issues exist or additional information may be helpful to the assessment of the organisation a credit check may be appropriate and should be discussed with your line manager prior to this being obtained. These can be obtained from the Procurement Team contact. 11.1.5 Once all satisfactory documents are in place this should be signed off by the relevant Finance Manager. 11.2 Operational Risk Assessment 11.2.1 Matters which should be considered as part of the assessment of the organisational capability for awards of funding in excess of £5,000. 11.2.2 Does the organisation have a management board to oversee the direction, service delivery and financial stability of the organisation 11.2.3 Is the organisation a registered charity, and if so have they complied with guidance from OSCR 11.2.4 Is the organisation a registered company? And if so have they complied with their requirements under Companies Act 11.2.5 Does the organisation have a clear statement of purpose and organisational objectives 11.2.6 Is the organisation able to provide evidence or other support to demonstrate achievement of its objectives and purpose 11.2.7 Are there any known reasons that would result in a risk to the Council’s reputation through association with an external body if financial or service delivery problems emerge 11.2.8 Has there been a determination that the offer of financial assistance/assistance in kind meets the requirements of the Subsidy Control Act 2022 : see definition of subsidy - link for Guidance Subsidy Control rules: quick guide to key requirements for public authorities - GOV.UK (www.gov.uk)Subsidy Control rules: quick guide to key requirements for public authorities - GOV.UK (www.gov.uk) If so, please document. The Budget Holder and/or other people undertaking the operational capability
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15 assessment should document their findings (Pro forma – Appendix E), together with their recommendation as to whether the organisation is fit and proper to be considered for funding. Where conditions need to be attached to any Funding Agreement, these should be documented within the assessment pro forma Appendix E should be signed by the budget holder and used as authority to sign the relevant agreement. The Council’s authorised signatories list can be found here: https://intranet.argyllbute.gov.uk/sites/default/files/carr_signatories_3.docx
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16 12 Flowchart Argyll and Bute Council – Funding for External Bodies External Body Budget Holder Y N Y Y N Finance Contact/ Finance Manager Service Department Procurement Manager Credit Check if required Central Register Check Annual Reports/Statements considered by monitoring body Assist Budget Holder to undertake financial checks Group Account impact considered The Subsidy Control Act must be considered alongside funding application Check financial and non-financial matters Funding Agreement prepared and service entered onto Central Database Collate reports and committee report if necessary Collates Application Provide relevant documents Notification of funding received, and agreement accepted Annual Monitoring Report prepared Service Terminates Notification received and service not delivered Funding Agreed (by Committee if necessary) Funding beyond 1 financial year?
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17 12.1 This can be described in the following way • Application for funding received / Identified need for external body to deliver a service on behalf of the Council • Determine Level of Funding Required Indicates information / documentation / agreement type required • Budget Holder, with support from their Finance Team contact, undertakes financial and non-financial scrutiny and Serious and Organised Crime Checks where appropriate. • Checklists completed – see Appendix A, B, C & D • Decision taken under Service scheme of delegation, or if calls for it, Committee approval • Funding Agreement put in place by Budget Holder using proforma agreement • Budget Holder informs the relevant Head of Service to enable them to agree the update to the SharePoint Register Link to SharePoint Register • Service Department liaises with Financial Services to consider the wider aspects of the Council’s Group Accounts • Monitoring reporting undertaken by the external body • Annual Financial Statements submitted by external body for inclusion in Group Accounts if required • Budget Holder provides annual information to Head of Service, Service Management Team or Committee as appropriate • Budget Holder manages and maintains the organisational relationship with the external body • Funding extending beyond a single financial year is subject to annual / ongoing financial and non-financial checks 13. Central Grant Agreement Register 13.1 The Council’s Procurement, Commercial and Contract Management Team Manager will maintain the Council’s Central Grant/Agreement Register. This register contains all grants/agreements awarded as a result of a grant exercise, including all agreements made under this Code of Practice. The Council’s Procurement and Commercial Contract Management Manager has the responsibility for maintaining the central repository SharePoint site for: • All funding approved that meets the criteria set, which is covered by this Local Code of Practice. • Agency Workers ( not covered by this Guide) • Off payroll workers ( not covered by this guide) 13.2 It should be noted that the responsibility for managing the agreements within the central repository remains with the relevant Head of Service
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18 who is responsible for adding and maintaining their services grants/agreements on the Central Grant/Agreement Register on SharePoint. Link to SharePoint Register 13.3 The Register is a key data source and as such the information and timing of such being supplied is crucial to the robustness of the information that is contained therein. The process described in this document and accompanying flowchart and checklists show when the Register should be updated. 13.4 To record an entry in the Register the Funding Agreement should be sent to the relevant Department’s Head of Service immediately after the award has been made. The format of the register is shown in Appendix C. 13.5 If Budget Holders wish to enquire about funding being provided to an organisation from across the Council, then the Register will allow this to be carried out.
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19 14. Glossary & Reference Document: Assistance in Kind Includes all staff time and associated costs involved in enabling the external body to carry out its core activities which are essential to its continued existence e.g. administrative support, professional services, advice, accommodation, use of equipment, training, preparation of material for reporting to Council, etc It does NOT include staff time and associated costs involved i) in supporting and developing groups as part of the Councils duty to support community action; ii) in providing advice on setting up the funding and applications to the Council; and iii) incurred in the formal monitoring and review of funding arrangements by the Council. Budget Holder The Service representative designated to process the applications from external bodies for funding, and who is responsible for the contact with and relationship between the Council and the external body. Contract A formal written agreement for the provision of goods, works and services between the Council as a Contracting Authority and another organisation as a result of any procurement procedure carried out by the Procurement and Commercial Contract Management Team on behalf of the contracting authority in relation to the award of a regulated contract or unregulated contract in terms of the Procurement Manual including, in particular (i) the seeking of offers in relation to the contract, and(ii) the selection of economic operators,(iii) the award of a regulated contract by a contracting authority. Contracting Authority Has the meaning given in section 1. Economic Operator Means any person who offers the execution of works, the supply of products or the provision of services on the market. External Body Means any external organisations that are legally constituted, trusts, registered charities, voluntary organisations grant aided bodies and arm’s length external organisations. Finance Team Contact The person who is the named finance contact supporting the Service in these matters as nominated by the Service Principal Accountant.
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20 Financial Assistance a) a direct transfer of funds (such as grants or loans); b) a contingent transfer of funds (such as guarantees); c) the forgoing of revenue that is otherwise due; d) the provision of goods or services; e) the purchase of goods or services. Includes monies, grants, capital grants, guarantees, loans, common good fund contributions, shares, assets and assistance in kind. Where assets, such as property are provided, the value of the building will not be included in the value of funding and a committee decision based on a business case for the use of assets in this way will be the overriding factor. This will normally exist where the council wishes the external body to undertake the delivery of existing council services on its behalf. Peppercorn (below market rate) rental / lease agreements for property should be taken into account, based on the difference between the payment made and the market value. Grant Agreement A grant is a subsidy or payment of a fund (in cash or in kind) disbursed by the Local Authority for specified purposes to an eligible recipient, usually conditional upon qualifications as to use or maintenance of a certain standard. Monitoring report Will consist of a financial and non-financial operational report from the external body that includes confirmation of what has been achieved with the funding that’s been provided and costs associated with undertaking this work Participation Includes acting as a representative, adviser or observer at meetings of external bodies. Public Contract Has the same meaning as regulation 2 of the Public Contracts ( Scotland ) Regulations 2015 Representation Means acting as a full member of the board or management committee of an external body, having a decision making capacity with full speaking and voting rights SharePoint site A web site that provides a central storage and collaboration space for documents, information, and
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21 ideas. Their own ideas and content as well as comment on or contribute to other people's. Link to SharePoint Register Substantial to the Council Funding arrangements that are substantial are where the external body is receiving in excess of £2 million per annum. This will include revenue or capital, recurring or non-recurring funding. Subsidy ‘Subsidy’ means financial assistance which: a) is given, directly or indirectly, from public resources by a public authority, b) confers an economic advantage on one or more enterprises, c) is specific, that is, is such that it benefits one or more enterprises over one or more other enterprises with respect to the production of goods or the provision of services, and d) has, or can have, an effect on; i. competition or investment within the United Kingdom; ii. trade between the United Kingdom and a country or territory outside the United Kingdom, or iii. investment as between the United Kingdom and a country or territory outside the United Kingdom.
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22 Reference Documents: ➢ Arm’s-length external organisations (ALEOs): are you getting it right? Audit Scotland, June 2011 ➢ Following the Public Pound: A follow-up report; Audit Scotland, December 2005 ➢ Code of Guidance on Funding External Bodies and Following the Public Pound and Operational Guidance; o CoSLA & Accounts Commission for Scotland, May 1996 ➢ The Councillors’ Code of Conduct; o The Standards Commission for Scotland, July 2018 ➢ Roles and working relationships: are you getting it right? Audit Scotland, August 2010 ➢ Argyll and Bute Council Procurement Manual
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23 Funding Checklist in Support of your Application (4.2) APPENDIX A Financial Year External Body Service Budget Holder Completed by Requirements for Funding Awards Information Required: Description of issues and checklist Questions (these represent minimum requirements) Tier 1 Tier 2 Tier 3 Information required in Support of Application Detailed 1-year financial plan and summary 3 year plan provided including cash flow statement X X Optional Copies of Annual Accounts including Income and Expenditure and latest Bank Statement - Audited where there is a requirement under companies Act or if charity - requirement through Office of the Scottish Charity Regulator (OSCR) 3 Years 3 Year 1 Year Statement of organisational Strategic Objectives X X X Has the organisation adequate Financial Governance policies and procedures in place X X X Is there adequate working capital to meet financial obligations X X X Assess ability of organisation to continue as a 'Going Concern' X X X Funding Criteria Has the funding criteria been applied prior to the award X X X Note: Where there is an X information must be provided
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24 The Approval Process (4.3) APPENDIX B Requirements for Funding Awards Information Required: Description of issues and checklist Questions (these represent minimum requirements) Tier 1 Tier 2 Tier 3 Approval Process Has Subsidy Control Act been considered X X X Has approval for funding been given by Committee, if so, which one X X X If not approved through Committee - Approved by X X X Has Serious Organised Crime (SOC) check been carried out where appropriate i.e over £50k X X Funding Agreement Service Level Agreement required X X X Has the signed Service Legal Agreement been entered onto SharePoint site by Head of Service/delegated officer X X X Payment Process Has schedule of payments been agreed in line with code of practice X X X Have all appropriate financial checks been completed and approved X X X All information held on file as required X X X Group Account Concept Has the issue of Group Accounts been considered X X Note: Where there is an X information must be provided
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25 Funding Award - Monitoring Review Checklist (4.3) APPENDIX C Monitoring Requirements for Funding Awards Information Required: Description of issues and checklist Questions (these represent minimum requirements) Tier 1 Tier 2 Tier 3 Monitoring Body Who is the relevant Monitoring Service/Department/Committee X X X Every 2 Years Check the organisation has adequate governance policies and procedures in place to protect public funds X X X Annually Objectives and Outcomes achieved as per Funding Agreement X X X Outcome Observations X X X Are any adjustments to funding required as a result of review of delivery of objectives and outcomes? X X X Annual report including financial plan for coming year and most recent Annual Accounts received from external body X X X Annual report prepared for Committee/Management Team/Head of Service X X X Review projections in financial plan to ensure that they are aligned to agreed outcomes and are realistic and achievable X X X Check there is adequate working capital to meet financial obligations X X X Assess ability of organisation to continue as a 'Going Concern' X X X Note: Where there is an X information must be provided
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26 Financial Paperwork Check APPENDIX D Name of External Body Council Department Departmental Contact Budget Finance Contact Amount of Funding Request Funding Assessment Tier Supporting paperwork received with funding application for inspection. (See funding Tier above to determine paperwork required for application) Requirement Tier 1 Tier 2 Tier 3 Satisfactory Yes/No If no, please give explanation Detailed 1 Year financial plan and summary 3-year plan Yes Yes Optional Cash Flow Statement Yes Yes Optional Annual Accounts, including Income and Expenditure – Audited where there is a requirement under Companies Act or if a Charity – requirement through Office of the Scottish Charity Regulator (OSCR) 3 Years 3 Years 1 Year Latest Bank Statement Yes Yes Yes Statement of Organisational Strategic Objectives Yes Yes Yes
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27 Organisations Financial Governance Policies and Procedures Yes Yes Yes Adequate working capital to meet financial obligations Yes Yes Yes Assess ability of Organisation to continue as a ‘Going Concern’ Yes Yes Yes Funding Criteria Has the funding criteria been met and fully checked by finance prior to award of funding. The supporting documentation/information submitted by the applicant/organisation is sufficient to allow Council funding to be granted. Financial Assessment conducted and approved by: ………………………………………Finance Manager Date……………………………
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28 Operational Capacity Assessment APPENDIX E Financial Year External Body Service Responsible Officer Accounting Contact Assessment: We have considered the following in respect of the above organisation and have summarised our observations and conclusions below: Matters considered (examples – the questions should be tailored according to the nature and amount of funding being considered) • Does the organisation have a management board to oversee the direction, service delivery and financial stability of the organisation • Is the organisation a registered charity, and if so have they complied with guidance from OSCR • Is the organisation a registered company, and if so have they complied with their requirements under the Companies Act. • Does the organisation have a clear statement of purpose and organisational objectives • Is the organisation able to provide evidence or other support to demonstrate achievement of its objectives and purpose • Are there any known reasons that would result in a risk to the Council’s reputation through association with an external body if financial or service delivery problems emerge
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29 Operational Capability Assessment Record any observations in relation to the above Recommendation The organisation has been assessed, and our overall recommendation is as follows: Date completed:
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30 Style Grant Agreement Appendix F GRANT AGREEMENT.doc GRANT AGREEMENT Between Argyll and Bute Council (Council) And [XXXXX] (Grant Recipient)
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31 SUMMARY SHEET NAME OF GRANT RECIPIENT: CONTACT PERSON: GRANT RECIPIENT ADDRESS AND POSTCODE: TELEPHONE NUMBER: EMAIL ADDRESS: AMOUNT OF AWARD: DATE AWARD MADE: COMMITTEE/PANEL GRANTING AWARD: COUNCIL CONTACT OFFICER: COUNCIL OFFICER CARRYING OUT MONITORING DUTIES: DEPARTMENT: ADDRESS: TELEPHONE NUMBER: EMAIL: DATE:
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32 AGREEMENT BETWEEN Argyll and Bute Council a Local Authority constituted in terms of the Local Government etc. (Scotland) Act 1994 including its statutory successors and having its principal office at Kilmory Lochgilphead PA31 8RT (hereinafter referred to as “the Council”) and [FULL COMPANY NAME] incorporated and registered in [JURISDICTION] with company number [NUMBER] whose registered office is at [REGISTERED OFFICE ADDRESS] (hereinafter referred to as “the Grant Recipient”) each a “Party” and together “the Parties” Whereas (A) The Council has agreed to fund the Activities of the Grant Recipient and the Parties have agreed to enter this Agreement to document the obligations of each party (B) The Grant Recipient acknowledges that the Activities associated with this Fund assist the Council deliver the Council’s Corporate Plan 2023- 2027 (C) The Parties agree as follows: 1. Definitions “Activities” means [ACTIVITIES] as more particularly described in Schedule 1 attached to this Agreement “Agreement” means this Agreement between the Parties; “Commencement Date” means the last date of the signing of this Agreement “Funds” means £[XXXXX] “Termination Date” means [DATE]
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33 2. DURATION 2.1 The terms of this Agreement shall commence from on the Commencement Date and continue until the Termination Date unless terminated by either Party on delivering no less than [NUMBER] week’s written notice or as otherwise provided for by the terms of this Agreement. 3. FUNDING 3.1 Payment of the Funds shall be made by the Council in respect of the Activities detailed within this Agreement and shall be used solely for these purposes. 3.2 The Council shall pay the Funds to the Grant Recipient [DATE AND HOW PAID] 3.3 The Grant Recipient must notify the Council’s Contact Officer in writing immediately if there are any difficulties in respect of fulfilling the terms of this Agreement. 3.4 All unspent Council funds should be returned to the Council at the conclusion of this agreement. 3.5 On early termination of this contract, a pro rata proportion of the annual funding level will be repaid to the Council by the Grant Recipient. 3.6 The Grant Recipient must notify the Council’s contact officer if the funding received from the Council is in excess of 50% of the total funding costs for any project/activity and arrange to reimburse the overpayment with immediate effect 3.7 All funds allocated must be spent in the current financial period and unspent funds returned to the Council. 3.8 The Grant Recipient must notify the Council’s Contact Officer in writing immediately if there are any difficulties in respect of fulfilling the terms of this contract. 4. STATUTORY REQUIREMENTS 4.1 The Parties shall comply with all relevant statutes, by-laws, regulations, Guidance and Codes of Conduct for the duration of this Agreement. The Grant Recipient shall be obligated to have in place policies and procedures relevant to ensure compliance of the foregoing. 4.2 In particular, the Parties shall comply with the Code of Guidance on Funding External Bodies and Following the Public Pound produced by the Accounts Commission and the Operational Guidance produced by COSLA together with any revisions or updates. 5. OBLIGATIONS OF THE GRANT RECIPIENT The Grant Recipient shall be obligated and agrees to: 5.1. Ensure compliance with Protection of Vulnerable Groups (Scotland) Act 2007, which introduced the PVG Scheme in November 2010 and also ensure that the appropriate disclosure checks are carried out on any employees working with vulnerable groups. 5.2 Undertake all necessary staff supervision, appraisal, training and development including, if necessary recruitment of paid staff or volunteers with appropriate
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34 qualifications to deliver the Activities and comply with the terms of this agreement. 5.3 Ensure compliance with the constitution, rules or other governing instrument of the Grant Recipient. 5.4 Not transfer, sell or discontinue the business, nor dispose of the assets, which form the subject of this funding, nor use the buildings, equipment or other assets, which are the subject of this agreement for any purpose other than the approved activity without prior written agreement. 5.5 Comply with the monitoring requirements as set out at Section 6 to the Councils satisfaction. 5.6 All relevant risks including employers’ liability, public liability, buildings and equipment, and motor vehicles. 5.7 The Grant Recipient warrants to the Council that it has the power to enter this Agreement and has taken the necessary action to authorise execution, completion and performance. 5.8 The Grant Recipient agrees that this Agreement will constitute legally binding and enforceable obligations on the Grant Recipient, and it has entered into this Agreement in good faith and has made full disclosure to the Council of all material facts relating to this Agreement. 5.9 The Grant Recipient must demonstrate (to the satisfaction of the Council) that it is paying the Real Living Wage all directly employed staff of the Grant Recipient as well as any workers who are not directly employed but are directly engaged in delivering the grant-funded activity, whether they be sub-contractors or agency staff (including Apprentices). It should be noted that the Council may (at its sole discretion) apply limited exceptions to provide funding to organisations who cannot pay the Real Living Wage in order that the measure remains proportionate. 5.10 The Grant Recipient must demonstrate that all workers employed by the Grant Recipient have an effective voice at both collective and individual levels and must be able to evidence same to the satisfaction of the Council. It should be noted that the Council (at its sole discretion) may apply flexibility to recognise the different forms of voice that are appropriate for different organisations. 5.11 The Grant Recipient agrees to comply with the criteria narrated in this agreement. 6. MONITORING OF THIS AGREEMENT 6.1 The Grant Recipient shall be obligated to comply with the monitoring requirements set out in Schedule 2 of this Agreement. 7. LIASON ARRANGEMENTS 7.1 The Parties shall ensure that their nominated officers (or their representatives) meet as required to discuss all aspects of the Grant Recipients Activities. 8. VARIATIONS 8.1 No variation of this Agreement shall be effective unless it is in writing, refers specifically to this Agreement and is signed by or on behalf of each of the Parties to this Agreement.
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35 9. BREACH/TERMINATION 9.1 The Council may terminate this Agreement with immediate effect and demand immediate repayment by the Grant Recipient of the whole grant or any part thereof without further liability if the Grant Recipient fails to: 9.1.1. Comply with any of the terms set out in this Agreement and fails to rectify such failure within thirty (30) days of receiving written notice detailing the failure; 9.1.2. Attend , as appropriate, consultation meetings with the Council; 9.1.3. Communicate in advance over proposed changes in this agreement; 9.1.4. Meet the targets contained in this agreement; 9.1.5. Make decisions or operate systems that do not meet the standards expected by the Council in managing public funds; 9.1.6. Complete agreed performance indicators or such other agreed quality indicators. 9.2 This Agreement will automatically terminate with immediate effect and without further liability if: 9.2.1 There is any default on the part of the Grant Recipient; 9.2.2 The Grant Recipient fails to comply with any of the terms of this Agreement and fails to rectify such failure within thirty (30) days or receiving written notice from the Council detailing the failure; 9.2.3 In the event of the Grant Recipient becoming insolvent; going into receivership or liquidation/sequestration or sign a trust deed for creditors or if it enters into any arrangement or composition of for the benefit of its creditors, or is unable to pay its debts as they falls due or; 9.2.4 If the Grant Recipient ceases to operate for any reason; 10. ASSIGNATION 10.1 The Grant Recipient shall not (either wholly or partially) assign or subcontract its obligations under this Agreement without the express prior written agreement of the Council. 11. INSURANCE 11.1 The Grant Recipient shall effect and maintain with a reputable insurance company a policy or policies in respect of all risks which may be incurred by the Grant Recipient arising out of the performance of this Agreement including but not limited to employers liability, public liability buildings and equipment and motor vehicles and shall provide written evidence of such insurance to the Council on demand. 12. THIRD PARTY RIGHTS 12.1 Nothing in this Agreement, express or implied, is intended to or shall confer upon any party (other than the parties hereto) any right, benefit or remedy of any nature whatsoever under or by reason of this Agreement.
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36 13. ENTIRE AGREEMENT 13.1 This Agreement supersedes and extinguishes any prior drafts, agreements, minutes of Agreements, undertakings, discussions, correspondence, communications and arrangements of any nature whatsoever, whether or not in writing between the Parties in relation to the matters dealt with in this Agreement and represents the entire understanding between the Parties in relation to them. 14. GOVERNING LAW 14.1 This Agreement shall be governed and construed in all respects in accordance with the laws of Scotland and the Parties, insofar as not already subject thereto, hereby prorogate the non-exclusive jurisdiction of the Scottish courts. 15. DISPUTE RESOLUTION 15.1 In the event of any dispute between the Parties relating to the terms and conditions of this Agreement they will use best endeavours to reach an amicable and working solution as soon as possible. Either Party should provide written details of the terms of the dispute to the relevant Contact Officer/Person and shall propose a time and place for a meeting between the Council and the Grant Recipient’s representatives where the representatives shall attempt to resolve the dispute. The other Party shall respond to such the written details within 5 working days of receipt. If the matter is not resolved the matter may be referred by either Party to the appropriate Head of Service in the Council and the appropriate senior officer in the Grant Recipient’s Grant Recipient for resolution. 16. SIGNATURE OF AGREEMENT 16.1 It is a condition of Award that both parties agree this Agreement before two copies of the Funding Agreement are signed by the authorised representative of both parties. One copy should be retained by the Grant Recipient, and the other returned to the Council’s contact officer. 17. COSTS AND EXPENSES 17.1 Each party shall be responsible for paying its own costs and expenses incurred in connection with the negotiation, preparation and execution of this Agreement
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37 This Agreement consisting of this and the preceding seven pages is subscribed as follows: by Argyll and Bute Council: _________________________________________ Authorised Signatory _________________________________________ Full Name (Please Print) at Kilmory, Lochgilphead, on before _________________________________________ Witness _________________________________________ Full Name (Please Print) _________________________________________ Address _________________________________________ by, XXXX _________________________________________ Authorised Signatory _________________________________________ Full Name (Please Print) at on before _________________________________________ Witness _________________________________________ Full Name (Please Print) _________________________________________ Address _________________________________________
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38 SCHEDULE 1 – ACTIVITIES
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39 SCHEDULE 2 – MONITORING REQUIREMENTS
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40 Version Control Version Author Date Changes 1.0 ML/MN/ST 23/03/2021 Updated grant terms and conditions to include requirements of Scottish Government a Fair Work Action Plan and a Fairer Scotland and in particular, for grant recipients to pay the real living wage (with limited exceptions) and to demonstrate that workers have an effective voice (with limited exceptions). New clauses 5.9-5.10 incorporated and tracked. 2.0 MN 24/05/2023 New Clause 5.9 stating that Grant Recipient must demonstrate its paying the real living wage (with exceptions) to the satisfaction of the Council New Clause 5.10 stating that the Grant Recipient must demonstrate that all workers employed by the Grant Recipient have an effective voice at both collective and individual levels and must be able to evidence same to the satisfaction of the Council 3.0 ML 8/5/24 Update ref to Objectives to align to 23- 27 Corporate Plan, revised designation of Grant Funder to Council
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41 APPENDIX G ARGYLL AND BUTE COUNCIL PRIORITIES 2024 TO 2027 Our overarching aim is clear: Argyll and Bute’s economy and population need to grow. Each of our Priorities contributes to that overall goal, and all are interconnected. The need to consider these in an integrated way will remain at the forefront as we progress these Priorities. The key themes and principles which influence and underpin all of our Priorities are:
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42 COMMUNITIES Why this is a priority: Empowered and resilient communities Our communities are as diverse as our geography and have varying needs, challenges, and opportunities – all of which they are well placed to identify. We want to harness that local knowledge with confidence and work together to develop shared priorities. To strengthen our collaboration with and support for our communities, we will: Priority Next Steps/Action Build stronger connections and collaborations with communities to increase empowerment and make the best use of local knowledge to help shape delivery of local solutions. Meeting people where they live – progressing an engagement programme for senior leadership across and around local communities. Enhance and deepen our understanding of local issues and improve opportunities for collaboration – including launch of the Aspiring Places: Community Projects programme in Argyll and Bute Use online tools/digital platforms to find ways to reach those not in established groups and start ongoing conversations about local issues. Take forward a piece of work to support Area Committees to reshape their business, decision-making and overall activities to align with existing/emerging local plans and issues, following agreement of priorities. Once Priorities agreed by Council – Area Committee Chairs to have initial discussion and feed back views to political leadership as first action. Reaffirm our commitment to refugee resettlement, valuing the contribution that new families and residents make to life in Argyll and Bute. Ensure that our approach to refugee resettlement has regard to the availability of housing, employment and skills locally while being delivered through national funding scheme.
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43 CHILDREN AND YOUNG PEOPLE Why this is a priority: Making Argyll and Bute an attractive choice for families Giving young people the best start in life, and ensuring we have the right skills for a prosperous future, are key elements of making Argyll and Bute an ideal choice for families to stay or to relocate. The Argyll and Bute lifestyle already has much to offer and, to play our part in making that even more attractive, we will: Priority Next Steps/Action Develop our school curriculums with the jobs of the future in mind, to build up a strong local skills base and help create more opportunities for young people to stay and grow in their own communities. Look at data from across the Council to identify skills, service delivery and employment needs locally – to shape learning opportunities for the short and medium term which contribute to overall population and economic growth. Enabling as many young people as possible go from school to positive destinations of all kinds. Work with partners on local further and higher education provision and apprenticeship opportunities that meet identified skills, service delivery and employment needs. Explore ways to enhance Argyll and Bute’s early learning and childcare offer to support employment and business needs of local families alongside its role in nurture and contribution to access to better life chances for young people. Identify measures to increase provision with partners. Enable learners to take full advantage of emerging technology and to be ready for the ‘jobs of the future’ here in Argyll and Bute. Pursue opportunities for investment in schools digital network – 21st century digital network for schools and wider education infrastructure. United Nations Convention of the Rights of the Child (UNCRC) – ensuring that views of children and young people are considered in decision-making. Developing our organisational culture to be receptive to the views of children and young people in our decision-making Continue the programme of improvement in our schools so that they are a compelling choice for families, providing good educational attainment and supporting the wellbeing of young people. Explore options for Education Review.
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44 HOUSING, ECONOMIC GROWTH AND POPULATION Why this is a priority: Working to ensure that everyone who needs a home can find one that they can afford, in the right place, and at the right time Access to housing is a factor in almost every aspect of Argyll and Bute’s crucial growth agenda. It contributes to the success of economic development, recruitment, employment opportunities, service delivery and much more. Argyll and Bute was the first Council in Scotland to declare a Housing Emergency. We must increase pace and be agile, ready to innovate and prepared to do things differently in order to see swift progress. Shared prosperity and sustainable business growth in Argyll and Bute We value the impact and return on investment that effective, targeted economic development can have. We recognise that all kinds of resources are increasingly limited and must be used to deliver shared prosperity, sustainable business growth and the best possible outcomes for Argyll and Bute People are Argyll and Bute’s most important asset in driving forward opportunities for growth and vibrant local economies Population growth is crucial to our economic success. Decline impacts on our ability to sustain and deliver services in the future. There is a predicted drop of 14.8% between 2018 and 2043, mainly in the 25 to 44 age group. We have a relatively tight labour market, arising from consistently higher levels of participation and low unemployment, with critical gaps in public services and key business sectors like hospitality and construction. This has been exacerbated in recent years by a decline in working-age population, migration limitations and higher levels of economic inactivity particularly in the over-50s age group. We will: Priority Next Steps/Action Sharpen focus on the Housing Emergency Action Plan and other plans/delivery bodies as appropriate in line with the pace required in emergency. Refresh and update our Local Housing Strategy. Use policy and fiscal levers at our disposal to speed up delivery – lobby other agencies where required. Seek reform or flexibility on use of Resource Planning Assumption (RPA). Looking at overarching plans – - Argyll and Bute Local Housing Strategy - Strategic Housing Investment Plan - Local Development Plan - Oban and Helensburgh Development Masterplans Using latest data to reframe and target activities and resources to the right places at the right times. Revisit Strategic Housing Fund. Examine scope to reduce time spent in temporary accommodation. Lobbying work
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45 Drive forward in partnership across all sectors to deliver on vital areas like key worker accommodation, mid-market rentals, private sector development in addition to activity on affordable homes. Engagement and partnership working across all sectors. Local Housing Strategy review to open up greater opportunities for partnership working and securing additional resources to support swifter delivery. Housing Emergency Action Plan. Explore scope for greater commercialisation of Council assets and otherwise attract external investment for the Council and communities. Build on the existing foundations to derive further commercial income from Council assets. Explore opportunities for Community Partnerships to divest/operate Council assets. Further develop the approach to community Benefits and the opportunities from planning gain for communities to augment Council funding. Take a clear ‘return on investment’ approach to allocations of resources at all levels – prioritise action that brings people, jobs and business to Argyll and Bute through Maximising community benefit opportunities from local development and promote community wealth building. Agree refreshed Economic Strategies. Development Masterplans. Critical evaluation of activities, financial allocations and requests and how those will translate into employment or growth. Use policy and fiscal levers in our power to stimulate, attract and incentivise growth – for example exploring creation of enterprise zones. Where power to drive growth sits with other agencies, lobby for support to complement the actions we are taking and investments we are making (e.g. fuel, transport costs in rural areas) Engage with Argyll and Bute’s key sectors and major employers in food and drink, tourism, construction, energy and social care to progress shared priorities and work in partnership where possible. Continue to lead on bringing depopulation to national government attention. Bringing together group of depopulating local authorities to act together as collective voice. Engage with Scottish Ministers and Ministerial Taskforce.
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46 TRANSPORT, INFRASTRUCTURE AND DIGITAL CONNECTIVITY Why this is a priority: Keeping people, businesses, goods and services moving through Argyll and Bute Argyll and Bute’s geographic mix of rural and island communities mean that transport, infrastructure and digital connectivity are crucial jigsaw pieces in the drive for growth. At the most basic level, we need effective and reliable ways to bring people, goods and services to Argyll and Bute – and to carry our own products. Like transport connectivity, reliable, resilient digital links have a highly significant contribution to make to growing the population and the economy. They can add considerable value to Argyll and Bute’s position as an ideal choice to locate, offering an attractive lifestyle and opportunities to learn, work and do business. In the same context we need to consider the impact of climate change on that essential infrastructure. This particular area is complex given our geography and the range of agencies who have responsibility for maintaining the resilience of lifeline connections of all kinds. Our principles of return on investment, partnership working, and speaking up for Argyll and Bute and its people will all come into play here. We will: Priority Next Steps/Action Lobbying for national infrastructure investment and interventions where responsibility lies with other agencies – maintaining pressure for delivery at pace of the permanent solution for the A83 Rest and Be Thankful. Political lobbying for urgent action on ferry services which brings the capacity and timetabling needed to support lifeline links and routes to market. Representing to industry and national governments on disproportionate transport, fuel and energy costs which contribute to higher rural poverty/deprivation levels and impact on growth. Establish political lobbying group (which will tackle a variety of issues), agree membership and scope. Agree themes/focus of political lobbying activity – including A83, Rest and Be Thankful, A82 upgrade, A85 improvements. Constructive engagement with Scottish and UK Government Ministers. Find ways to join our voice with those of communities who tell us this is a priority for them too. Seek full funding for delivery of internal ferry services, given that responsibility for these sits with Transport Scotland. Pursue formal request for full funding, noting previous shortfall. Use strong data to develop a Transport Strategy which recognises the significance of connectivity to population and economic growth. Explore options for full transport study (which can include looking at integration, organisation options) following RIS Review.
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47 ENVIRONMENT Why this is a priority: The Council has already declared a climate emergency and must continue to keep this issue as a primary consideration Recognising the importance of climate change is a key factor when we consider how we do business as well as the impact of our geography. The Council has already committed to achieving 75% carbon reduction by 2030 and net zero before 2045. We will: Priority Next Steps/Action Reduce carbon emissions generated by the Council. Agree policies in relation to waste, recycling and other environmental issues, which will inform next steps. Evaluate Council targets for deliverability and improvement. After agreement of policies, agree and implement SMART measures. Harness opportunities from expansion of renewable energy sector in the area Explore potential community/Council benefits from renewables projects. Revisit exploration of renewables projects on Council land.
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48 SUSTAINABLE SERVICE DELIVERY Why this is a priority: We want to provide the best services we can for the money and resources available – and make clear the standards that our communities can expect. We know that this is really important to local people. Over the remainder of this Council term, local government finances and resources of all kinds will be under more pressure than they’ve ever been. Resource levels will inevitably inform service standards and delivery. We need to be more vigilant than ever before about alignment of investment and action to our priorities. Identifying clear returns and outcomes for Argyll and Bute, from allocations of resources, must the starting point of action or investment.
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49 Fiscal constraints have put pressure on services and limit what we can deliver. It is important that our models of service delivery are more efficient and more effective, with clear and achievable standards. We want to transform services efficiently and at pace, and in ways that align with the resources we have – a Council fit for the future. We will: Priority Next Steps/Action Provide the best services we can with the money available. Expand the RIS Review approach to other service areas to ensure we have the most effective and efficient delivery models possible. Develop proposals to expand and make the most of digital/technology, including further exploration of AI. Make clear the service standards that communities can expect with the resources available. Review, update, communicate clear quality service standards that match with local needs as well as available resources. Completion and implementation of the Roads and Infrastructure Services (RIS) Review, particularly creation of robust, reliable data to inform decisions. Progress and implement RIS Review. Play our part in calling for a fair deal for councils – including asks for greater flexibilities at local level which helps better serve community needs. Part of work of political lobbying group.
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50 SPEAKING UP FOR ARGYLL AND BUTE, ITS PEOPLE AND ITS COMMUNITIES Why this is a priority: Collective, as well as collaborative, action is necessary to deliver growth on the scale that Argyll and Bute needs No single agency alone can deliver on Argyll and Bute’s overarching aim of significant, vital population and economic growth. We will work in partnership with communities, with all sectors, and at all levels as far as possible to progress Argyll and Bute’s priorities. This will include using our voice as the local authority to call for action where responsibility lies outwith our control or influence. We will: Priority Next Steps/Action Call for policy, investment, flexibility, action - wherever there is a key issue impacting on Argyll and Bute’s chances of growth and success and where responsibility sits outwith the control of the Council. Establish political lobbying group, agree membership, themes, areas for focus as set out throughout the Priorities. Add our voice as the local authority to those of our communities when they are speaking out on issues that are important to them and where external action is needed. Identify needs and opportunities through engagement programme and planned online/digital democracy activities. Lobby for more investment in digital connectivity to boost Argyll and Bute’s status as an attractive place to live. Lobby for digital connectivity improvements to fill the gap in terms of other opportunities which are available and funded elsewhere in Scotland, but which are not practical here due to geography (e.g. active travel).