Definition:
The Code of Practice for funding is a way for making best use of resources, improving working practices, achieving better value and promoting partnership working (working with others) , thus reducing copying work already done and establishing joint best practice.
Aim:
It is the aim of the compact to work towards ‘working together’ approaches in relation to:
- Transparency of procedures
- Consistency of guidelines
- Due notice and debate of, and about, funding cuts and contributions to core costs
- Improved access to funding
Commitments and obligations:
- Respect each others right to independence
- Seek to improve sustainability through longer term funding and capacity building
- Recognise and compensate for core costs
- Promote fair access to funding opportunities and information
- Develop clear, cross cutting approaches to grant making
- Develop, with grant recipients, joint monitoring and evaulation methods
- Ensure good notice and proper debate in the event of budget and grant cuts
- Be clear about the standards and outputs required
Develop clear and consistent standards for:
- Employment
- Training
- Financial systems
- Governance
- The planning and delivery of funded projects
- Compliance
- Complaints
- Equal opportunities and disability policies
- Citizen involvement and all other aspects of personnel, management and service provision
Types of Funding:
Strategic Funding
Should be long term and aimed at generating self-sustainability. There should be a clear statement of the funder’s expectations, the number of years funding, monitoring requirements, review conditions and termination clauses.
Project Funding
Meets the cost of a specific piece of service delivery over a specific fixed term of, say, one to three years. It should include clear and realistic contributions to operational overheads or core costs.
Development Funding
Meets the cost of developing a new product or of improving organisational capacity. It should be explicit about outputs and how they are monitored and evaluated. There should be an agreed exit strategy.
Small Grants
May be defined as under £1,000 (Community Foundations) or up to £10,000 (European and Awards for All) for small, local projects or short notice emergency intervention. Funders should set clear criteria and make the application and monitoring processes quick and easy.
Matched Funding
Programmes require collaboration between co-funders, for example where European schemes offer a 45% contribution. These schemes tend to be difficult to establish, bid for and monitor. They should be reserved for large organisations and projects.
Partnership Funding
Based on multi-agency planning and bids, will be the subject of a separate Code of Practice.
Funding Policy
Access:
Funding information should be widely publicised well before the bid process starts and especially where programmes and guidelines are subject to change (see “Consultancy” Code). Information should be straightforward, written in Plain English and available in accessible formats. There should be a clear timetable and transparent processes for scoring and decision-making. Information should be available on paper as well as electronically.
Information about the Application Process:
Should include eligibility criteria, guidance notes, sources of information and help, how bids are scored, how long the process takes, terms and conditions for grant making, details about monitoring and reporting, feedback on failed applications.
Payment:
Should be made promptly and at least quarterly in advance.
Under Spend and Refund:
Arrangements should be transparent, practical and allow maximum flexibility.
Financial Reporting:
Obligations should be “reasonable”, not disproportionate to the size of the grant and, certainly, no more stringent than the requirements of the relevant Company or Charity Law.
Monitoring and Evaluation:
Should also seek to be realistic and not needlessly complicated. The process should be agreed between the funder and the recipient. It should take account of the recipient’s existing systems and capacity. Any costs involved in the process should be built into the grant.
Delivery Problems:
Where a recipient is in difficulties, they should inform the funder as early as possible so that both parties can work on remedial action, or as outlined in the contract or agreement.