Policies

Adopted by Resolution of the Parish Council on 20 May 2024

1. Introduction

North Somercotes Parish Council provides financial assistance to local groups and organisations whose activities provide direct benefit to the community served by the Council.  Requests for assistance are normally considered by the Council at its annual meeting in May, against available budgetary resources that have been determined at the start of the current financial year.  Therefore, the earlier a request is made, providing the eligibility requirements are met, the higher the likelihood of success, although a decision may not be made until May. Consideration will also be given to projects that require funding outside of these timescales as applicable.

It is a legal requirement that grants and loans made by the parish council are dealt with competently and this includes a clause in the Account and Audit Regulations requiring that anyone who receives a grant must update the council in writing, within 12 months, showing exactly what they have done with any grant. 

There is also a requirement for councils to ensure that they are aware of what a grant is required for, and that it is a proven need and not just a general request for money. Councils must check if they have a power to make the payment, or are able to use their Section 137 allocation, having ascertained that the project benefits all or some of the community, or is to be made using the General Power of Competence.

A fundamental requirement of any grant scheme is that it should be able to demonstrate equality and benefit; some local groups may get money each year, which they may almost come to accept as their right, whereas others get nothing.  While the council has formalised an agreed policy and procedure and makes some provision in the budget to be able to pay monies out in the form of grants, it seeks to provide an open and known procedure regarding grants availability, including how they can be applied for (application procedure), any criteria that need to be met, and how decisions will be made.    

The fair application of a transparent procedure is particularly important in the event of the Council receiving donations from outside bodies or organisations, or generating surplus funds, for example through the Woolpack Meadows property rental, and which could be used to benefit the parish.  This may also apply to the District and County Council grants that are made available each year, although the changes to the procedures in 2014 make this less likely as these funds now have to be applied for direct.

Grants can currently be provided to maintain, enhance or set up a community asset and there are strict rules governing what qualifies for Section 137 funding (the power to provide things not otherwise authorised for the benefit of all or some of its parishioners).  Under the General Power of Competence, the rules allow more latitude in the awarding of grants, but any process still needs to be equitable and conform to statutory requirements.

2. Eligibility for Financial Assistance   

The following guidelines are provided to help applicants determine whether they qualify for a grant, and how to submit an application.

•   Applications should be for a specific project, for example new or replacement equipment, an event or project or the cost/items for establishing a new group, and must state the proposed benefit that will be achieved;
•   Applications will not normally be supported from individuals, but will be considered on a case-by-case basis;
•   The Council will not support revenue expenditure, that is the ongoing running costs of an organisation;
•   Any grant awarded may not usually exceed 50% of the cost of the project, but each case will be considered on its own merits;
•   Only one grant will normally be awarded to an organisation during any one year, unless there are exceptional circumstances.

3.  Purpose and Assessment Criteria

The Council will target its support to those village organisations, services or facilities that contribute towards the achievement of:
•   Community Spirit and social inclusion
•   Health and Well-being
•   Improving the Environment and infrastructure
•   Lifelong Learning Opportunities
•   Transport

Requests for funding will be judged against their contribution to the above list, in addition to considering the following:

•   The number of people who will benefit, and taking into account age group, sex, ability/disability
•   Other sources of funding available to the organisation or group
•   Current bank account balance/other funds held by the organisation or group
•   Availability of similar services/activities
•   Previous parish council funding
•   Contribution to community sustainability/services

4. Notification

The availability of grant funding will be publicised in different ways – it will be referred to at the Annual Parish Meeting, notified via communication magazine, and parish notice board or other communication channels, so that it is generally known within the parish that there is money available to be allocated during the following financial year for the benefit of the community and people are clear on the criteria and application process.   Organisations may also be written to directly, to draw their attention to the funding which can be applied for, and Councillors may also propose projects or events which they are aware of, and which would then be considered using the agreed application form and assessment criteria.

5. Application Procedure

A closing date will be set for applications, which should normally be no later than 31 October each year to ensure that applications can be properly considered as part of the budget planning for the forthcoming year.  Special consideration may need to be given to requests outside of these times if they are time-critical and therefore applications can be made at any time.

During budget setting, the council will determine the specific amount to be included in the budget for grants for the following year.  The council can levy a maximum set amount per head of the electorate, under Section 137 of the Local Government Act 1972, to cover expenditure not specifically authorised elsewhere, if it has the budget available to do so.  In addition to this, the Council can apply to District and County Councillors for grant funding for specific items though organisations may have to do this directly themselves now.  The council may also have funds available from other sources to use for the awarding of grants, for example S106 monies, revenue from projects such as Woolpack Meadows property rental, other grant funding sources and direct funds from donors.

A record of support given will be produced annually together with a summary of the community benefits gained; this is normally published at the Annual Village Meeting for example.

6. Application Form and Guidance

All applications must be submitted on the Parish Council’s Grant application form.  Details about the group or organisation must be provided, including a copy of the most recent audited accounts or the financial status, and the constitution of the body.  In the case of a new group, a business plan may be submitted rather than the audited accounts.

Copies of the application form are available on the Council website or from the Clerk, in paper or electronic form.

•   All applications should be addressed to the Clerk at the official council address
•   applicants should be given clear direction as to what information the council will require to determine an application and in what format (see application form and guidance) and will be assisted to complete the forms if required
•   successful and unsuccessful applicants should be notified in writing as soon as possible, informing successful applicants that grants will normally be payable after the May Annual Meeting of the Council (unless agreed otherwise)
•   the council will normally pay directly for goods or services which are being grant funded.  This is to avoid circumstances where funds are given to an organisation or group, and then not used for the purpose awarded, or at all, and to ensure proper observance of VAT rules.
•   Where applicants need to achieve certain levels of funding in order to receive match funding or additional grants from other sources, then the council will provide a letter indicating the amount of funding that will be made available, and will then normally pay directly for the goods or services as noted above

Evidence of the expenditure incurred on any project where the grant award is over £50 should be submitted to the Council within 6 months of the award (unless the council has paid the grant direct to the supplier) and a brief report, either verbal or written, of the benefits to the community resulting from the grant should be made to the Council.

Sheila Pearce
Parish Clerk and Responsible Finance Officer

This link takes you to the Grant Aid Application Forms.

Be aware that the PDF document can be reviewed and/or downloaded whilst the Word document (DOCX) can only be downloaded; once the Word document is on your device, you must have compatible software to vire and/or edit the document, ie. Microsoft Office or a Microsoft Word viewer of emulator.