Memorandum submitted by Volunteer Reading
Help
I am writing to you regarding the Committee's
evidence session into the funding of the voluntary and community
sector, since as a national charity with 3,000 volunteers nationwide,
we feel the need to input our views of this highly important issues.
Volunteer Reading Help (VRH) recruit and train volunteers to work
with looked after children and children with reading difficulties
aged 6-11 who may need extra support and monitoring. Our trained
and supported volunteers read, play and talk with the children
on a weekly basis. We work in schools, but outside the classroom.
We are however constantly seeking to establish partnerships so
that we can reach even more disadvantaged children.
VRH are pleased that the Committee of Public Accounts
are undertaking an inquiry into Government funding of the voluntary
and community sector and we very much welcome the recent publication
of the NAO's Report, Working with the third sector. VRH
strongly supports the Report's focus that that Third Sector has
an important role in delivering public services, and that currently
the potential of this role is not being sufficiently harnessed
and used efficiently in delivering public services. The fragmented
approach to funding often raises a number of questions concerning
engagement with the Third Sector, inconsistency and the length
of the funding support available, as well as the methods of delivering
funding and procurement contracts created during this process.
It is hoped that these questions can by scrutinised by the Committee's
inquiry. The main issues for VRH surrounding funding and the funding
process are set out below.
SHARING OF
BEST PRACTICE
There appears to be great variation across Government
Departments in their ability to engage with the Third Sector over
funding issues. This is extremely worrying and VRH would like
to see that this issue is given serious consideration, not only
in terms of the guidance given but also in the training provided.
VRH welcomes the idea of sharing best practice in funding, which
was highlighted by the Compact Plus review and in the NAO Report
in the key findings section on page 3, which indicated that despite
the Compact, good funding practice, is not always found at local
level. We feel that this would not only help Third Sector workers
gain access to and share ideas but that it could be used as a
porthole for discussion with local and national Government.
ACCOUNTABILITY
VRH are keen that increased accountability should
be built into the relationship between the voluntary sector and
public bodies since presently there is no independent arbiter
who can oversee this process who has any authority. Against this
background VRH supports the recent consultation on Compact Plus
which aims to strengthen Compacts1[1]
both locally and nationally by laying out commitments which voluntary
sector bodies can opt into and gain mutual understanding of local
and national aims. However, VRH feels that the Home Office has
missed an important opportunity to improve confidence of the Compact
within the sector by giving the Compact Champion, a role that
would be set up under Compact Plus, the power to confer obligations
on all parties and to uphold funding promises where reneged on
by public bodies.
FULL COST
RECOVERY
The NAO Report highlights important principles which
are presently not being consistently upheld within the current
funding system, including the principle of full-cost recovery,
which is highlighted as a recommendation on page 7 of the Report.
At present many Third Sector organisations have to bid on the
basis of direct costs alone and funding overheads are often not
met due to funders reluctance to meet the full-cost. For the full-cost
recovery system to be effective there needs to be practical guidance
and information at all levels of governance in independent arbitration
and funding only being cut to organisations demonstrably failing.
STREAMLINED FUNDING
VRH are keen to see the introduction of a more streamlined
funding system. Currently there are numerous forms which need
to be completed to obtain funding and VRH would like to see the
introduction of a single streamlined form which will be less time
consuming for the organisations involved and also a clearer and
easier to handle process.
ADVANCED PAYMENT
AND LONG
TERM FUNDING
VRH feel that there is also a need for advanced payments
on funding rather than payment after money has been committed
and spent. This would help many organisations to plan funding
commitments and ensure that funding is always delivered as promised.
Wherever possible this funding should also be long
term; VRH have directly experienced the problems of short term
funding, which highlights the need for advanced payment as well
as long term commitment to the funding of voluntary organisations.
VRH'S EXPERIENCE
OF SHORT
TERM FUNDING
VRH had a meeting in January 2005 with key civil
servants at the Department for Education and Skills to discuss
ongoing funding of VRH's work. At that meeting, it was agreed
that VRH would receive a further three years funding; £300,000
in 2005-06, £220,000 in 2006-07 and £220,000 in 2007-08.
In April, the CEO of VRH received a letter from DfES stating that
due to the Spending Review and the general election, they could
only pledge a further year's funding at this stage. This was in
complete contradiction to what had been promised at the meeting
in January and is an example of where the Compact Champion could
arbitrate on behalf of VRH. This kind of about-turn in policy
is extremely unhelpful, though it has happened to others due to
the Spending Review.
RECOMMENDATIONS
— Where possible one form to be developed
for funding applications.
— Compact Champion to be an independent
arbitrator, with the power to force Government to make good on
funding commitments.
— Online resource for similar organisations
to obtain funding information.
— Stronger monitoring of local Compacts,
possibly through the use of an Ombudsman.
— The Home Office to do more to coordinate
the funding process.
Gill Astarita
Chief Executive
1 The Compact is a voluntary agreement between the
voluntary and community sector and public bodies, it covers issues
such as funding, opportunities for inputting into policy and guides
communication between the sectors. Back
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