Peter Burke (Longford-Westmeath, Fine Gael)
Link to this: Individually | In context | Oireachtas source

478. To ask the Minister for Employment Affairs and Social Protection if Pobal funding has been withdrawn for an organisation (details supplied); if so, the reason therefor; the way in which the organisation can review this decision or re-apply; and if she will make a statement on the matter. [50758/17]

Peter Burke (Longford-Westmeath, Fine Gael)
Link to this: Individually | In context | Oireachtas source

479. To ask the Minister for Employment Affairs and Social Protection if she has jurisdiction over funding community clubs; the reason Pobal funding has been withdrawn from an organisation (details supplied); the way in which the organisation can review this decision or re-apply; and if she will make a statement on the matter. [50759/17]

Regina Doherty (Meath East, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I propose to take Questions Nos. 478 and 479 together.

The Community Services Programme (CSP) provides financial support to community companies that provide revenue generating services of a socially inclusive nature. The CSP works on a social-enterprise model which means that it does not fully fund contract holders but requires that they generate revenue by charging fees or raising funds. All CSP recipients are obliged to meet these criteria. These social enterprises also remain responsible for their own budgets and financial liabilities.

The defining characteristic of CSP services is that they are set up to provide social and economic value and are managed as going concerns with business and revenue targets set within a defined business plan. In order to assist sustainability, all CSP service providers should strive for a situation where at least 30% of annual turnover is from traded income, and where the CSP grant is not more than 50% of annual turnover. While this may not be achievable in the short-term for some service providers, it is something to focus on in the medium to long-term and business plans should be orientated towards the achievement of these benchmarks in terms of sustainability.

Services must generate sufficient traded income to be viable and sustainable entities. Services that do not generate sufficient traded income are unlikely to be effective and risk closure and loss of services to their local areas.

The organisation referred to by the Deputy completed a business plan during 2016 as part of the CSP contract cycle. The business plan was submitted to Pobal, which operates CSP on behalf of my Department. Pobal has a proven track record in the administration of public funds and extensive experience in assessing funding applications and business plans.

Pobal assessed this plan under the five standard criteria used - capacity, sustainability, value-for-money, demonstration of need and strategic fit. Significant areas for concern were found with a number of aspects of the service. These included the following:

- Capacity: there was limited information provided within the plan and it failed to make a clear business case;

- Sustainability: while there has been a substantial drop in traded income by the organisation, there are no significant plans outlined to address this in the business plan. Traded income is below the recommended standard of 30% and CSP income is now well above the recommended standard of 50%. The organisation has provided very little information on how its board is dealing with this situation and no specific income-generating plans have been committed to;

- Demonstration of need: the evidence of need provided is considered weak and of poor quality; and

- Strategic Fit: there is little evidence of alignment to the CSP or social enterprise model. The organisation stated that “It is not a feasible project to have a traded income to support staff”.

As a result of this assessment, Pobal recommended that the service should exit the CSP at the end of June 2018 and this recommendation was approved by my Department. The organisation was notified of the outcome of this process on 22 November 2016. Funding is approved for 18 months up to 30 June 2018 at a level of one manager and two full-time equivalent positions (FTEs), after which the service is due to exit the CSP.

The organisation was notified that it could appeal this decision no later than 22 December 2016 with details on the appeals procedure provided. The organisation did not pursue this avenue and the time period for accepting an appeal has passed.

It is open to the organisation to submit a new expression of interest in re-joining CSP in the future, but I would urge them to work closely with their local Pobal representatives before doing so. Any new proposal would need to meet the criteria for the CSP before being approved to go forward to business planning.

I hope this clarifies the matter for the Deputy.