Introduction

• The Council recognises and respects the independence and value of the voluntary sector. It acknowledges the freedom of each voluntary organisation to choose its own area of activities and methods of working in accordance with the aims and objectives or terms of reference set out in its constitution or governing document.
• The Council has responsibility to ensure that any public funding is used for the approved purposes and that, while an organisation is in receipt of such funding, it is properly and effectively conducted. This includes the operation of appropriate management, employment and financial policies and practices.
• In this context the Council operates the following Conditions of Funding and Grant Aid.

General

• The funded voluntary organisation must operate within and/or for the benefit of residents of the Sandwell Metropolitan Borough. The organisation must take positive steps to involve residents and users of services in its management and activities.
• The organisation must involve service users in its management, and in particular user feedback should be obtained on a regular basis in order to monitor service provision.
• The organisation must acknowledge the Council's assistance in any literature and publicity about the work of the organisation including advertisements for vacant posts.
• The organisation must be non-profit making. Any excess income generated by the organisation must be used for the benefit of the community it serves, in line with its aims and objectives. A realistic and open policy with regard to reserves will be expected to be in place.
• The organisation must be non-party political. Its funds must not be used to pay for publicity which appears to support any political party.
• The organisation must have a business plan which will guide the organisation's development over a minimum period of 2-3 years.

Local Authority Funding Officer

• All funded voluntary organisations will be assigned a Funding Officer(s) who will be the main link with the Council on all matters relating to the funding and with these Conditions of Funding and Grant Aid.
• When a voluntary organisation is funded by more than one Thematic Service Area, senior officers shall decide which Thematic Service Area should appoint the Funding Officer(s).
• New Guidance concerning the role of Funding Officers came into effect on 1st April 2000 and is available to the public.

Use of the Funding or Grant

• The funded organisation must proceed in accordance with a formally agreed proposal.
• The funding or grant must be spent only on the items of expenditure for which it was approved by the Council.
• The organisation will be monitored by the Council. Officers of the Council must be permitted to inspect the workings of the organisation and/or any funded project and its accounts and such other records as may be required at all reasonable times.

Management Structure

• The organisation must have a constitution or governing document which is acceptable to the Council. This must provide for equality of opportunity, openness, user participation and democratic processes. A copy of this document must be submitted to the Council which must be given advance notice of any proposed changes. Any proposed changes must be in line with charity and company law if appropriate.
• The organisation must have a Management Committee (or equivalent) as specified in its constitution. The Council must be provided with the names and addresses of the Chair, Secretary, Treasurer and other members of the Committee. Members of the Committee should be elected or appointed in accordance with the requirements of the organisation's constitution or governing document.
• The organisation must comply with all aspects of the law and its Management Committee should acknowledge its responsibilities in this respect.
• The Council will not nominate Councillor(s) to serve on the Management Committee of any funded voluntary organisation.
• Where Councillor(s) are elected or appointed to serve on the Management Committee of any funded voluntary organisation, in accordance with the terms of the organisation's own constitution or governing document, they serve in a personal capacity and do not represent the Council. As such they should be referred to at meetings or in correspondence as Mr, Mrs or Ms rather than as Councillor.
• New Guidance concerning the role of Members with regard to funded voluntary organisations came into effect on 1st April 2000 and is available to the public.
• The Council's Funding Officer(s) must be notified of all Management Committee and Sub-Committee meetings and be permitted to attend as an observer (without voting rights).
• The agenda, accompanying papers and minutes of previous meetings of the Management Committee and Sub-Committee meetings must be sent to the Funding Officer(s) in advance of any Management Committee and Sub Committee meetings. Papers which are tabled at meetings rather than circulated prior to meetings must be made available to the Funding Officer(s) within seven days.

Employment Practices

• The organisation must satisfy the Council that it operates fair employment practices.
• The organisation must fill all vacant post(s) through advertising. The organisation should hold open and competitive interviews for the vacant post(s) and fill the post(s) in the light of the results of these interviews.
• The Funding Officer(s) must be notified in advance of the procedures proposed to fill any posts within the organisation.
• All employees of the organisation must be issued with a Contract of Employment, a Job Description, a written Grievance and Disciplinary Procedure and a written Equal Opportunities Statement.
• All employees of the organisation must be informed of their right to belong to a Trades Union and/or Professional Association
• The organisation must comply with all the relevant provisions of the Health and Safety Legislation.
• The organisation must comply with all the relevant employment legislation and subsequent amendments.

Financial Procedures

• The organisation must satisfy the Council that proper financial accounting systems have been established and are being maintained.
• The organisation will be encouraged to use the same financial year as the Council (i.e. 1 April - 31 March).
• The organisation is required to submit annual audited financial accounts for all income and expenditure. Such accounts must include specific information to show how the Council's funding or grant aid has been used. These accounts must be received by the Council within six months of the end of the organisation's financial year.
• Information on all other sources of funding for the organisation must be made fully available to the Council.
• The organisation must have a bank account in its name. At least two members of the Management Committee must be signatories. Each cheque must have at least two signatories, one of whom must be a Management Committee member.
• The organisation must be adequately insured to cover all risks (e.g. theft, fire, employers liability, fidelity, third party damages). The Council accepts no liability for any losses, claims, damages, compensation etc., arising from the existence of and in connection with the organisation.
• The organisation must keep an inventory of assets. The inventory must specify the source of funding with which the asset was purchased. Any assets acquired with the assistance of Council funding cannot be sold or otherwise disposed of, or encumbered in any way, without the Council's prior written approval.
• The organisation must have in place a written Compliments, Comments and Complaints Procedure, and have in place mechanisms for ensuring the procedure is effective if put into action.

Quality Standards

• All funded Voluntary Organisations must work towards achieving Quality Standards appropriate for their area of activity (e.g. PQASSO, Quality First, Pace, Investors in People, EFQM Excellence Model, Community Legal Services Quality Standard etc.).

Crime and Disorder

• The Crime and Disorder Act 1998 placed a statutory responsibility on the Council and Police to co-ordinate and promote a local crime and disorder reduction strategy. The Council also has a responsibility to consider the likely impact that any decision it makes will have on crime and disorder. As well as this legislative responsibility the Council and other members of the Partnership firmly believe that tackling crime and disorder is the responsibility of us all and that everyone has a part to play in reducing and preventing it
• All voluntary organisations in receipt of funding from the Council must make a positive contribution towards the creation of a Safer Sandwell.
• Contributions can range from making sure an organisation's staff and property are safe and secure to the direct delivery of services which will have an impact on crime and disorder.

Sandwell Council's Sustainable Development Strategy

(Environmental Policy for Sandwell - Agenda 21)

• The Council is committed to sustainable development and to meeting a number of targets that have been agreed internationally, nationally and locally. Voluntary organisations in receipt of funding from the Council must therefore be able to demonstrate that their activities contribute to developing sustainable communities.
• Voluntary organisations in receipt of funding from the Council must develop Environmental Policies/Statements/Action Plans to improve their environmental performance in order to contribute towards creating a healthier environment and achieving the best quality of life for the people of Sandwell.
• Contributions can include recycling material, buying from local suppliers and upkeep of premises.

Equal Opportunities

• The organisation must have a written Equal Opportunities Policy that applies to all of its activities i.e., employment, service delivery etc., and must be able to demonstrate that the Policy is being implemented, monitored and evaluated regularly.
• The organisation's Equal Opportunities Policy must comply with its statutory obligations under the Race Relations Act 1976 and the Race Relations (Amendment) Act 2000, the Sex Discrimination Acts 1975 and 1986, the Disability Discrimination Act 1995 and all other discrimination legislation and subsequent amendments. The organisation will not treat one group of people less favourably than others because of their gender, gender reassignment, sexual orientation, colour, race, nationality, disability or ethnic origin.

Failure to Comply with Conditions

• In the event of an organisation failing to comply with any of the above conditions, the Council reserves the right to withdraw the funding and/or grant aid and, if appropriate, to demand repayment in part or in full and reject future requests for Council funding.

Review

The contents of this document will be reviewed on a regular basis.