Written answers

Tuesday, 18 February 2014

Department of Social Protection

Departmental Programmes

Photo of Patrick O'DonovanPatrick O'Donovan (Limerick, Fine Gael)
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357. To ask the Minister for Social Protection the rationale and the basis on which the allocation from Pobail to an organisation (details supplied) for 2014 was determined; if Pobail has taken into consideration the limitations that these reductions will place on the organisation to effectively deliver its service commitments; the scope for the matter to be reviewed; and if she will make a statement on the matter. [8103/14]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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The community services programme (CSP) is designed to address gaps in service delivery and disadvantage and to ensure that community facilities are utilised. The programme is funded by the Department of Social Protection with day-to-day management of contracts undertaken by Pobal. Some 425 not-for-profit companies and co-operatives shared annual funding of €46m from the programme in 2013. Contract holders must deliver tangible services that are capable of generating non-public revenues from their operations by way of charging fees, sales and/or fundraising and other public funds. The programme is not intended to represent full-funding for any operation.

Each contract holder is responsible for their own budgets, income, financial and other liabilities. Contracts are generally offered on a three-year cycle based on a business plan or similar submitted by the company. Continued funding is subject to satisfactory compliance with the programme’s operational requirements, financial position of the company, continued eligibility of the company and service, progress on delivery of the stated objectives in the business plan, and an assessment of a business plan for the following three year contact cycle. A regular review process is undertaken to ensure compliance with contract obligations, audit issues, continuing capacity of the organisation to manage public funds, the need for and quality of service delivery, sustainability, and value for money.

A re-contracting process for the period 2014-16 for organisations operating under the Community Services Strand of the programme was undertaken in 2013. This involved the submission of business plans by contracted organisations. These business plans and past performance were reviewed by Pobal and the conclusions submitted to the Department for consideration and decision. The business plan and operations of the company referred to by the Deputy was reviewed under this process. The company in question was approved for a funding contribution for one full time manager post and eight full-time equivalent posts (FTE) plus €25,000 operational funding per annum up to end of 2013 with a total value of €209,264 pa. The business plan submitted by the company as part of the 2014-16 review process was considered to have limitations including the demonstrated level of activity for the level of funds granted. The level of output delivered by the company was considered low when compared with similar services. While the continued need for programme support was recognised, both Pobal and the Department are concerned about the value for money being delivered for the high level of public funds provided to the company. In particular, the level of output delivered by the company was less than that delivered by similar operations.

The programme’s contribution to the company’s turnover has increased in recent years and is significantly above the level generally accepted for companies supported by the programme. In light of these conclusions, approval for a reduced level of funding was given. The phased reduction in funding over 2014 to 2016 will ensure value for money is delivered and should stimulate the company into diversifying its income sources and increase productivity to underpin its ongoing sustainability and decrease its dependence on CSP funding to more satisfactory levels. The company has been offered an opportunity to seek a review of the decisions made.

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