Aim 2 - Allocation of Funding & Payment Methodology
This section will:
· Detail the funding challenges, how the various funds have been allocated since the inception of NOLB and the transfer of the first phase of funding
· Explain the current costing methodology
Funding Challenges:
Funding Uncertainty
Varied funding models and monitoring approaches
Competition and duplication across delivery
An inability to properly analyse performance and understand the impact of employability funding
The evaluation looks to address the funding challenges illustrated above and uses the CCI’s Employability Re-design report framework of themes and opportunities as a route forward:
Facilitating more Networking and Collaboration
(Opportunity - Number 7)
“Redesign funding models and criteria in a way which encourages more collaboration between service providers to bring about more formalised partnerships”
Use a data led approach to understand gaps
(Opportunity - Number 11)
“Set up a data led research programme for the LEP and employability team to understand gaps in provision, identify trends and better allocate funding where it is needed”
While funding uncertainty remains largely out with the control of the GFLEP and the Local Authorities continue to push for a more sustainable approach with the Scottish Government, the evaluation will look to inform what the GFLEP can do to offer sustainable solutions while that evolves.
Since 2018, the funds that have transferred to the LEP/GCC previously supported Activity Agreements, the Scottish Employer Recruitment Incentive, Community Jobs Fund and the Employability Fund.
In addition, new funds were transferred to specifically support parents, the long term unemployed and young people affected by COVID. Finally, the funding attached to the Fair Start Scotland programme was transferred in 24-25.
These funds have transferred over different financial years and investment has fluctuated. In particular, the funding which supported young people has been reduced and as a budget line, deleted, with the LEP/GCC required to support the delivery through the main NOLB budget available, which represents an overall decrease in funding.
Furthermore, as each fund transferred, it transferred with some separate requirements. However, over 23-24, the management of these funds has aligned considerably, both from a SG perspective and a GCC perspective. It is worth noting that this alignment continues.
In summary, the mechanisms used to allocate the funding have been decided by time pressures and by the lack of an appropriate allocation mechanism.
This is particularly in relation to the capability to distribute more widely than the Council and ALEOs.
However, within those restrictions, it is important to note that the funding has still reached around 40 external organisations through GCC services/ALEOs arrangements.
Alignment with the Fair Funding Charter
The positive and negative aspects of several funding allocation methods were considered, as well as their alignment to the principles set out in the Third Sector Fair Funding Charter https://www.voluntarysectorgateway.org/tsi-scotland-fair-funding-charter/ developed by the TSI Scotland Network.
The principles in the FFC are
- A strategic investment approach
- Accessible, Proportionate and Transparent Funding and Commissioning Process
- Adequate and Secure Funding
- Proportionate Evaluation and Reporting to Funders
Costing Methodologies Used
Over the period of funding from 2019-present, the documents and processes used were also all different in response to the varied funding requirements and the allocation methods. Work has been undertaken to align those documents and processes.
As with the allocation methods used, the costing methodologies were considered against the FFC principle 3.
Funding Puzzle Workshop
Following the exercises above and within the context of the Employability Service Re-design report, the challenges and problems across three areas of Costing Methodologies, Funding Allocation Methods and Partnership working (i.e. how partnerships can be supported under the two areas), were explored at a workshop of service providers at the Glasgow Futures, Shaping Employability Event in June 2024. Under the title of the “Funding Puzzle” and using a solutions-focussed approach, 80 people generated responses to the following statements:
In order to improve costing methodologies, to gain full cost recovery and cover overheads, we might………..
In order to improve current mechanisms for allocating funding and find a more suitable alternative, we might…………
In order to create meaningful partnerships and reduce competition, we might………..
Conclusions
With the original aim of reviewing the mechanisms used to allow the GFLEP to decide and implement a more suitable funding allocation method and payment methodology which facilitate partnership working, the following conclusions were arrived at:
· Procurement was not popular. It is time intensive, bureaucratic and does not feel accessible to smaller organisations although technically open to all.
· The methods for allocating funding internally to GCC and Council Family Services are not transparent so appear unfair, exclusive and not subject to the same rigor as the external projects. There is a need to explore how to align internal and external methods.
· Processes and timeframes for allocating funding could be clearer and more realistic. The reactive nature to date has been a major concern.
· This is also impacted by annual funding allocations which inhibit future planning.
· There should provision made for an “Innovation fund” to allow new approaches to be tested by organisations not funded the LEP. This would allow emerging issues to be addressed and considered in the overall provision.
· The payment methodology must be improved to better align with the FFC
· Partnerships are common and working well but there was a feeling there is a lot of duplication of effort in setting up partnerships. This includes the need for capacity building for bidding, understanding strengths and expertise and development of partnerships within project delivery.