POLICY FOR THE PROVISION OF GRANT AID
Powers of Local Councils to make Grants
Local Councils have a number of powers which enable them to make grants to local organisations. The specific Local Government Acts, which set out the legal requirements on Grant Aid, are related to the activity of the organisation receiving the Grant and are divided into a number of broad categories:-
· Recreation
· Entertainment and Arts Activities
· Parks and Public Open Spaces
· Voluntary Bodies
· Advice and Assistance Agencies
1. Recreation
Section 19 of the Local Government (Miscellaneous Provision) Act 1976 confers wide powers on a Local Council concerning recreation facilities, whether inside or outside its area, including powers to make grants and loans to others who provide such facilities.
· Indoor sports facilities, swimming, tennis, bowls, etc
· Outdoor sports facilities consisting of pitches for team games – athletic grounds, golf courses, tennis courts, etc
· Facilities for boating, water ski-ing, fishing
· Premises for clubs or societies having athletic, social or recreational objects
· Staff, including instructors, parking spaces and refreshments, building, equipment supplies in connection with above.
A Local Council may also contribute by way of grant or loan to the expenses occurred by any voluntary organisation in providing any recreational facilities which the Local Council has power to provide under the above headings. A ‘Voluntary Organisation’ means any person carrying on or proposing to carry on an undertaking otherwise than for profit.
2. Entertainment and Arts Facilities
Under the Local Government Act 1972, Section 145, a Local Council has the power to do, or contribute to the expenses of doing, the following activities:-
· Dancing – either as entertainment or activity
· Theatre, concert hall
· Band or orchestra
· Development and improvement of knowledge or practice of arts and crafts
· Refreshments, programmes, advertising incidental to the above
3. Parks and Public Open Spaces
Various statutes dating from 1875 to the Public Health Act 1961 apply. A Local Council may acquire, by purchase or lease, land which it requires to provide a park or public walk and may improve such lands and may maintain, or contribute to the maintenance of such facilities by others. The facilities may be outside the Local Council’s area but the power to assist may be exercised if they are situated conveniently for the use of the inhabitants of the parish or community.
4. Grants to Voluntary Bodies (excluding Advice Agencies)
Section 137 of the Local Government Act 1972, allows Local Council’s to make grants to voluntary bodies where no specific grant-making power exists in other legislation. The power conferred by Section 137 is now know as the ‘Free Resource’ and expenditure is regulated by statute. The requirements are:-
· Expenditure in any one year may not exceed the amount determined by the Secretary of State x number of electors as at 1 April of the relevant financial year.
· The Local Council must be satisfied that there is a direct benefit to its area, or part of its area, or some or all of its inhabitants
· The Local Council must also ensure that the direct benefit which will accrue to its area or inhabitants will be commensurate with the expenditure to be incurred.
· If the grant paid to an organisation in any one year is equal to or exceeds the ‘ relevant minimum’ currently £1,000 then, as a condition of assistance, the Local Council must require the organisation, within a period of 12 months, to provide a statement in writing of the use to which that amount has been put. An annual report or accounts is sufficient to meet this condition.
· The written statement must be deposited with the proper officer of the Council and the public have a right of inspection (Section 128 Local Government Act 1972)
· A separate account of Section 137 expenditure must be kept and it is therefore advisable to record in the relevant resolution when expenditure is intended under Section 137.
5. Grants to Public Appeal/Charities and Public Bodies in the UK
Section 137 powers may be used to make contributions to public appeals relating to particular events which affect UK residents. (The requirement of direct benefit to inhabitants does not apply, the financial limit does apply).
6. Grants to Advice and Assistance Agencies
The Local Government Act 1972, Section 142 and the Local Government and Housing Act 1989 confers wide powers on Local Councils to make grants to advice and assistance agencies. There is now an unrestricted power to help those organisations to provide information and advice to individuals on their rights and obligations, and to provide certain assistance in asserting those rights or fulfilling those obligations.
The Whitehill Town Council Grant Schemes
1. Whitehill Town Council offer two categories of grants; Major Grant Aid (for any amount of £3,001 or over in any one financial year) and Minor Grant Aid (£3,000 or less in any one financial year).
2. The Council sets both Grant Aid budgets during the autumn prior to the financial year in which it will be spent.
3. Grants shall NOT be awarded to an individual, unless classed as a ‘Voluntary Organisation ‘.
4. Grant Aid applications are permitted from organisations within and outside the Parish of Whitehill & Bordon as long as evidence of local benefit can be provided.
5. Grant Aid applications for both revenue and capital costs are permitted.
6. Applications will be accepted for applications with no match funding, however, the Council will discourage applications seeking 100% funding, unless under £500.
7. All applicants are required to disclose any funding applications made to other organisations. Failure to do so may lead to any Grant Aid award being withdrawn.
8. Applications are permitted for one off projects and ongoing revenue costs.
9. Applications for Grant Aid (Major or Minor) received from organisations that hold unallocated reserves in excess of one year’s operational requirements will not be eligible for Grant Aid.
10. All applications will be considered on their own merit with any award made purely at the discretion of the Policy & Resources Committee, as recommended by the Advisory Grant Aid Working Party.
11. The Council is under no obligation to enter into ongoing commitments from year to year for the provision of Grant Aid (Major or Minor).
Major Grant Aid
1. All Major Grant Aid applications will be determined by Policy & Resources Committee, as recommended by the Advisory Grant Aid Working Party.
2. Organisations are invited to submit their Major Grant Aid applications by completing a Major Grant Aid application form.
3. The closing date for applications is 30th November each year, for grants from the following financial year 1st April to 31st March.
4. Applications will be considered at a Policy & Resources meeting in January of the following year and successful applications will be paid in two instalments in the financial year for which they have been approved, namely April and October.
5. In addition to the application form, the following supporting information must be submitted as part of the application:
- A copy of the constitution of membership rules
- A copy of the most recent annual accounts
- Business Plan
- Cash Flow Forecasting
- Relevant estimates (for capital purchases)
- Child Protection Policy (for projects working with children and/or vulnerable people)
Minor Grant Aid
1. The Policy & Resources Committee has delegated responsibility to award Minor Grant Aid Applications within the Minor Grant Aid Budget.
2. Organisations are invited to submit their Minor Grant Aid applications by completing a Minor Grant Aid application form.
3. The closing date for applications is 31st March and 30th September each year.
4. Application will be considered at meetings of the Policy & Resources Committee in the months of April/May and November and successful applications will be paid in one instalment as soon as practical after the meeting.
5. In addition to the application form, the following supporting information must be submitted as part of the application:
- A copy of the constitution or membership rules
- A copy of the most recent annual accounts
- Relevant estimates (for capital purchases)
- A Child Protection Policy (for projects working with young people and/or vulnerable people).
Evaluation
All applications will be evaluated using a scoring system, scored against the following criteria:
- Has all required information been provided with adequate detail?
- Are timescales feasible?
- Organisation’s level of reserves - a low score will be given to organisations holding very low or high reserves
- Running costs – a low score will be awarded for excessive or inappropriate running costs
- Number of beneficiaries/impact on the community
- Number of Parish beneficiaries/impact on the community
- Evidence of partnership funding – a higher score will be awarded to applications who have identified or secured partnership funding
- Long term viability of the organisation
In addition to the above, the Council will consider the overall breadth and variety of all applications received.
Conditions
The Council reserves the right to impose any condition on a grant award commensurate with the level of grant.
The Council reserves the right to specify outcomes in an award letter.
The Council reserves the right to request evidence of expenditure.
Monitoring & Reporting
The applicant is required to report back all conditions, outcomes and expenditure as specified in the offer letter.
The reporting method is completion of a Grant Aid Monitoring Form to be returned to the Council within 6 months of the grant payment.
The Council reserves the right to request that funds are returned if a Grant Aid Monitoring Form is not provided or funds are not spent appropriately.
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