Agenda Item 12

Executive Member Councillor Vivienne Michael Strategic Management Team Lead Officer

John Cawdell

Author Stella Keen Telephone 01306 870603 Email stella.keen@molevalley.gov.uk Date 5th April 2011 Agenda Item 12 Key Decision Yes Ward (s) affected Ashtead Common, Ashtead Park, Ashtead Village, Bookham

North, Bookham South, Fetcham East, Fetcham West, Leatherhead North & Leatherhead South

Subject Thomas Flack Trust Fund Applications

1. RECOMMENDATION That

(i) a grant of £7,500 is made to Home Start Mole Valley subject to their receipt of Big Lottery funding or a similar level funding from other sources being secured.

(ii) no grant is awarded to Pitstop.

(iii) an agreement is drawn up with the South Bookham Youth and Community Association Ltd in relation to the grant of £25,000, awarded at the Executive meeting on 11th January 2011, to monitor how the money is spent in the context of the larger project. The recommendation of this agreement is subject to the Executive agreeing with the recommendation to grant £50,000 to assist in the refurbishment of the facility which is to be determined under a previous report on this agenda.

(iv) the cost of officer time in administering the Thomas Flack fund is not re-charged to the Thomas Flack Fund.

2. EXECUTIVE SUMMARY 2.1 Applications to the Thomas Flack Trust Fund are considered by the Thomas

Flack Working Group. The group is made up of elected Members for wards in the north of the District who offer views on all applications. The Executive is then asked to decide on the awards to be made.

2.2 Seven applications to the Thomas Flack Trust Fund were received by 1 Sept 2010. Additional information was requested on two applications, which has now been received and the following recommendations made.

2.3 This report recommends the award of a grant for £7,500 to Home-Start Mole Valley Ltd that was previously deferred on the basis that further information was required.

2.4 This report recommends that the application to Pitstop for £1,500 is refused .The Council will assist the unsuccessful applicant by clarifying the terms of the Trust Fund for them.

2.5 This report recommends that a grant condition agreement is drawn up for the

South Bookham Youth and Community Association in relation to the £25,000 grant awarded from the Thomas Flack Fund which would include a schedule of essential works to show what works the grant is to cover.

2.6 This report recommends that Officer time is not re-charged to the Thomas Flack Fund.

2.7 The Working Group assessed these applications and gave its views on the awards and refusals based on their eligibility and projected outcomes.

The Executive has the authority to determine the Recommendation

3. BACKGROUND 3.1 Thomas Flack Trust Fund 3.11 The Strategy Committee of 21 June 2005 agreed that a Thomas Flack

Working Group should be established with the following terms of reference:

‘To meet once per annum to consider the applications for funding from the Thomas Flack Fund and to advise the officers of the Working Group’s views on each application.’

3.2 Background Information 3.21 The Council is the trustee of the Thomas Flack Trust Fund, which was

established “for the general benefit of the people of the Leatherhead Urban District”. The estimated unallocated fund balance for 2010/11 is £124,919 before consideration of the applications in this report and excluding the awards already agreed for 2010/11 totalling £44,060. This figure also includes £10,499 in outstanding awards from 2010/11 awaiting distribution. A detailed summary of the account is attached at Appendix 1.

3.22 The Council’s guidance as trustee for applications to the Fund states that:

“The trust fund is only available for the general benefit of the inhabitants of Leatherhead, Ashtead, Bookham and Fetcham. It is not available for the benefit of an individual.

When considering applications, the Council will in general give preference to:

• Capital projects that will provide permanent facilities for local people

• Initial revenue contributions to assist the start-up of new initiatives, provided that arrangements are in place for funding in future years which do not rely on grant aid from the Trust

There are no specific financial limits for grants from the Trust (within the total trust fund available). However, in order to achieve the maximum benefit from the Trust Fund, the following guidelines will generally be followed:-

(1) Unless there are special circumstances, grants will not be awarded to

• commercial operations

• applicants whose accounts show that they have ample resources to fund the project concerned

(2) The Trust will not normally be the sole funder unless there are special circumstances. Applicants for 100% grants will be required to identify those circumstances and what efforts they have made to obtain funding from other sources.”

3.3 Application from Home-Start Mole Valley Ltd 3.31 Home-Start Mole Valley is a newly registered charity aiming to provide trained

volunteer assistance to families with young children who are facing a variety of difficulties thus ensuring that children get the best start in life. The service will serve the Bookham, Fetcham, Ashtead and Leatherhead areas at first and is likely to operate from premises in Leatherhead.

3.32 A contribution to funding is requested to help set up the organisation.

3.33 Concerns were raised at the meeting of the Thomas Flack Working Group regarding how much money was required for true start-up costs and how sustainable the organisation would be as an average of £50K per annum is required to operate the scheme. Further information has now been provided.

3.34 Start UP Costs

Starter set (incl. Desk, pedestal, small bookcase) x 3 719 Chairs x 4 - buy 1 get 1 free 120 Large Lockable cupboard 294

Total Office Furniture 1,133

5 months rent to get things setup prior to launch (temp lodgings in LHD theatre) 1,500

Volunteer training 1,500 Staff training 1,500 Total Training 3,000

Volunteer recruitment 500 Staff recruitment 1,500 Total Recruitment 2,000

Printing 1,000 Advertising 500 Total Publicity 1,500

Companies House fees, accounting package, charitable registration 1,000

TOTAL START UP COSTS NOT INCLUDING SALARY COSTS 10,133

3.35 Major funding has been sought from the Big Lottery fund and a second stage application is currently being prepared. An application has been made to Children in Need for 10% of the first year’s costs and a decision is being awaited. Home-Start is waiting for confirmation regarding the availability of funding from Surrey County Council for Home-Start across Surrey, however, it is understood that this funding is under threat.

3.36 In order to finance continued running costs fundraising will be undertaken and corporate sponsorship will be sought from local businesses.

3.37 £1,140 has been received from Surrey County Council through the Local Allocation fund for the purchase of computer equipment.

£250 has been received from Bookham Residents’ Association and £200 from Ashtead Residents’ Association. A pledge of £200 has also been made from Fetcham Residents Associations for a similar donation once more substantial funding from other sources has been confirmed.

3.38 Total Project Cost £50,000

Fundraising to Date: Residents’ Associations £650 SCC Local Allocation £1,140

Total requested from Thomas Flack £10,000

Views of the Working Group 3.39 After considering the additional information provided by Mole Valley Home-

Start, the Members of the Working Group are satisfied that the application fulfils the Thomas Flack Trust Fund criteria. Concerns were raised regarding long term sustainability which would be dependant on fundraising for future years. The Working Group considers that the £7,500 should be awarded subject to receipt of Big Lottery funding or similar funding from other sources.

3.40 Application from Pitstop 3.41 The Pitstop is a daytime drop in centre for vulnerable and socially isolated

adults who are living in or passing through the Mole Valley area, providing help with housing, benefits claims, adult education and food and clothing and helping them to achieve independence within the community.

3.42 Funding contribution is requested for I.T. equipment and consumables for training, adult education, job search etc. Funding has been applied for from grant fund organisations, businesses, churches and private individuals

3.43 Total Project Cost £2,000 Fundraising to Date N/A Total requested from Thomas Flack £1,500 3.44 The application appeared to be an identical application to the one submitted

to the Trust Fund last year for IT equipment.

3.45 The invoices submitted for payment against last year’s award relate to a significant number of consumable items. This type of revenue funding does not conform to the Council’s guidance as trustee of the Thomas Flack Fund.

Views of the Working Group 3.46 Members of the Working Group had the view that the application appeared to

be a repetition of last year’s application and that there was no evidence of a requirement for capital funding.

3.47 Members also highlighted the issue that organisations outside of the district are signposting homeless people to Pitstop. Therefore, any grant awarded would not solely be for the general benefit of the inhabitants of Leatherhead, Ashtead, Bookham and Fetcham.

3.48 The view of the Thomas Flack Working Group is that a grant should not be awarded.

3.5 Application from South Bookham Youth and Community Association (see also items 11 & 13)

3.51 A grant of £25,000 was awarded to SBY&CA at the Executive meeting on 11th January 2011. A proposal has now been made for Mole Valley District Council as trustee of the Thomas Flack Fund to draw up a grant condition agreement with SBY&CA and a schedule of essential works to show what works the grant is to cover. Members should be aware when considering this proposal that the recommendation of this agreement is subject to the Council agreeing to the recommendation of a corporate grant of £50,000 to assist in the refurbishment of the facility which is to be determined under a previous report on this agenda. Under this agreement the Council will pay for a third party independent adjudicator to confirm that tranches of work have been carried out and to an agreed specification. Money will be released in stages upon the satisfaction of all parties.

Views of the Working Group 3.52 The Thomas Flack Working Group agreed with this proposal.

3.6 Re-Charging of Officer Time 3.61 The Thomas Flack Working Group reconsidered the proposal to charge the

cost of time officers’ spent administering the fund to the fund itself and decided not to pursue the proposal.

3.7 Time Constraints

Applicants are normally informed of the outcome of their application in January. Due to the additional information required the applicants will be informed in April.

4. OPTIONS 4.1 Option 1

That the Executive reviews each application against criteria in the light of the Working Group’s views, and awards grants reflecting that review.

4.2 Option 2

That grants and recommendations reflecting the assessment process by the Thomas Flack Working Group are approved by the Executive.

4.3 Preferred Option

Option 2 is recommended. All applications have been assessed by the Working Group based on:

- Trust eligibility criteria

- Council’s guidance for applications to the Trust Fund

- Trust funds available

Option 1 would be appropriate if the Executive had concerns about the Working Group’s assessment of any of the applications.

5. CORPORATE IMPLICATIONS

5.1 Legal Implications 5.11 The Council, as trustee of the Trust Fund, is under a duty to administer it

strictly in accordance with the terms of the Trust. This duty is fulfilled by making awards from the Fund where applications are for the general benefit of the people of Leatherhead, Ashtead, Bookham and Fetcham, and by rejecting applications which do not qualify.

5.12 There are no financial limits to the number of awards or the amount of grant awarded.

5.13 In order to secure the maximum benefit from the Trust Fund, it is considered legitimate to apply the Council’s guidance set out in section 3.2.2 of this report.

5.2 Financial & Risk Implications

5.21 The estimated balance in the fund at 31 March 2011 is £124,919 before consideration of the applications on this report. This figure includes £10,499 in outstanding awards from 2010/11 and excludes the awards already agreed for 2010/11 totalling £44,060.

5.22 After the grants already awarded for 2010/11 are taken into consideration and if the recommended grant detailed in this report is approved, the available balance will reduce to £73,359, which remains a substantial trust fund. The trust fund is also subject to a yearly income from rents at an average £29K and interest at an average £6.6K, based on the previous three years’ income.

5.23 Attached at Appendix 1 is an analysis of the fund’s actual income and

expenditure for 2009/10 and projected income and expenditure for 2010/11. Appendix 2 contains an analysis of the fund’s accounts for the last five years.

5.3 Equalities Implications 5.31 The Thomas Flack Trust Fund guidance sets out eligibility criteria clearly for all potential applicants.

5.32 The guidance also details the review and assessment process carried out on all applications. 5.4 Employment Issues 5.41 Not applicable

5.5 Sustainability Issues 5.51 Not applicable

5.6 Consultation 5.61 Thomas Flack Working Group meeting took place on 31st January 2011 and

the views of the Working Group Members are included in this report.

6. BACKGROUND PAPERS Thomas Flack Trust Fund grant application forms:

• Home-Start Mole Valley Ltd

• Pitstop

• South Bookham Youth and Community Association

Thomas Flack Working Group Agenda

Thomas Flack Working Group Actions

APPENDIX 1

Thomas Flack Fund – Financial Analysis Actual 2009/10 1.4.09 balance brought forward 181,043 Income: Rents 29,660 Interest 859 Insurance recharged 355 _______ 30,874 Less: Expenditure Grants Ashtead Churches Community Trust 10,000 Freewheelers Theatre Company 692 Ashtead Tennis Players Club 9,295 Bookham Youth & Community Association Ltd 5,437 Leatherhead Youth Project 2,800 Ashtead Recreation Campaign 1,500 Leatherhead Revival Trust 12,117 Pitstop Leatherhead 129 Legal advice 149 Insurance 366

________ 42,485 ________ 31.3.10 Balance carried forward 169,432 Projected 2010/11 1.4.10 balance brought forward 169,432

Income:

Interest on fund 1,187 Insurances recharges 360 Rents 255 Guildford Road, Effingham 14,000 Post Office Stores, Forest Rd,Effingham Junction 9,660 95 Kingston road 6,000

31,207 Expenditure

Insurance costs 360 Grants Leatherhead Revival Trust 335 The Pitstop Leatherhead 470 Leatherhead Tennis Club 18,400 Leatherhead Horticultural Society 586 Bookham Vision 2,500

Ashtead Churches Community Trust 5,000 Seeability 2,000 Leatherhead Youth Voice Project 3,200 Ashtead Peace Memorial Hall 30,000 Bookham Youth & Community Association 2,370 St Andrews Parkour 10,499

78,220

Projected closing balance of Thomas Flack fund 31.3.11 124,919

Thomas Flack Trust Income and Expenditure over 5 years

2005/06 2006/07 2007/08 2008/09 2009/10Actual Actual Actual Actual Actual

£ £ £ £ £

Fund Balance 1 April 136,713 173,423 204,365 228,007 181,043

Add : IncomeRents 22,106 32,065 30,408 29,510 29,660Sale cannons 69,344Interest on Balances 6,639 8,989 11,674 7,331 859Insurance Recharged 305 316 334 347 355

TOTAL INCOME 98,394 41,370 42,416 37,188 30,874

Less : ExpenditureNorth Leatherhead Community Officer 5,000All Saints Family Project-renovation 10,000Global Grants 6,000 6,000Leatherhead Youth Project Ltd 7,500 2,800Benefits Take-up Campaign 9,340Leatherhead Health Check 6,796Leatherhead Activezone Summer Hol Scheme 900Pioneer People Trust Ltd (Lhead Theatre) 15,797Gas safety checks etc 46 67Little Bookham Village Hall 4,019 12,678 1,9751st Ashtead Scout group 5,688Ashtead Village Traders 959Ashtead Skate Park Partnership 10,000Ashtead Tennis Players Club 3,205 9,295Bookham Scout Group 20,000 5,437Bookham Youth & Community Association Ltd 7,186Bookham Residents Association 4,500Freewheelers Theatre Company 1,288 692Leatherhead & Dorking Gymnastics Club 24,726The Grange Centre 10,000Ashtead Churches Community Trust 10,000Ashtead Recreation Campaign 1,500Leatherhead Revival Trust 12,117Pitstop, Leatherhead 129Other Misc Expenses 149Insurance 305 343 408 313 366

TOTAL EXPENDITURE 61,684 10,428 18,774 84,152 42,485

Fund Balance 31 March 173,423 204,365 228,007 181,043 169,432