'We might as well close now': Alsager Partnership's future thrown into doubt following funding knock back

By Tom Avery

2nd Dec 2020 | Local News

The future of the Alsager Partnership was thrown into question following a passionate meeting which concluded the partnership would be receiving no further funding this financial year.

At yesterday's (Monday) Alsager Partnership review panel, it was revealed that the panel had still not received the partnership's second quarterly report or a funding request for next year.

However, John Poulson, chair of Alsager Partnership, told the panel that he submitted a £12,000 funding request for next year via a submitted letter.

Alsager Partnership was given a grant of £31,303 for the 2020/21 financial year despite their request for £36,952 being knocked back.

Cllr Sue Helliwell, chair of the review panel, told the committee that Alsager Partnership had "changed their mind" regarding their request to obtain their full funding for this financial year.

The partnership now wanted the full amount, and any unspent money would be earmarked and carried over to the next financial year due to some annual events being cancelled or reduced.

Whereas originally the partnership did not want quarter two payment of their approved grant money.

It was revealed at the meeting that the partnership had received only two out of their four payments for this year so far.

Cllr Helliwell stated that the prior agreed total had already been precepted into the town council's budget for this year.

Cllr Helliwell said: "If they wish to put events on, it goes through the grants panel."

Cllr Jo Dale, who sits on the review panel, was "confused" that with events not going ahead due to the "unprecedented times" Covid-19 has brought, that the partnership had not provided the review panel with an update.

Cllr Dale said: "How are we supposed to make a decision on funding when we do not have all the information."

The Labour councillor labelled being part of the panel "very stressful and upsetting at times".

She was "frustrated" that the panel had not been given the information that they had asked for, which forms part of the Service Level Agreement (SLA) between the panel and Alsager Partnership.

Cllr Dale added: "We have been put in an impossible situation, I know members of the partnership have spoken about me personally outside of these meetings and I have been very upset about that.

"I have been bad mouthed to third parties, at times I have felt intimidated, we have been shouted at, we have had misogynist behaviour aimed towards us.

"When we have asked for things from the SLA i.e. audited accounts, partnership members have stormed out of meetings.

"Our panel has been reminded a number of times that the partnership are a bunch of volunteers, but I would like to remind the partnership that the town council are volunteers, giving up our time trying to make a difference in Alsager."

Town clerk, Nicola Clarke, highlighted that the £12,000 funding request to carry out and develop projects for next year did not include the £4,500 for the Christmas Market as that was a separate budget line within the town council.

Cllr Jane Hearne said: "We are entering a time of austerity for the whole of the country, many of our residents are struggling financially, going hungry and being furloughed or made redundant.

"Even the town council has been affected by the furloughing of their staff and losing revenues from buildings ran by the council."

The panel heard that as of 30 September, the partnership had a balance of £18,126.52 in their bank account.

Cllr Hearne stated that Mr Poulson's letter showed that the partnership no longer had a project manager as part of the organisation.

Cllr Hearne added: "If that [project manager] is no longer part of the organisational structure and it is now totally run by volunteers, should we therefore be recouping that money that was provided for their project manager."

Without a project manager, Cllr Hearne indicated that would bring the partnership a saving for next year around £20,000.

Cllr Hearne added: "No events have happened apart from the virtual Italian day, so how on earth can we give the full amount out when we thought all these events were going to happen."

The panel received two different letters, one requesting £8,000 on 4 November and a further letter was received on 11 November, which was an amended letter and passed the agreed date of 9 November, submitting a revised amount of £12,000.

The partnership requested that the £12,000 would be paid in full in April 2021.

Cllr Hearne queried where the full breakdown, action plan and funding request was.

She added: "This is not a funding request; it is a letter and I do not understand why the partnership think this is acceptable."

The request for all the funds in April 2021 goes against the payment terms listed in the SLA.

Cllr Derek Hough, who is the town council representative for the Alsager Partnership, felt it was "very difficult listening to this conversation" and indicated there was a view within the partnership that the panel "did not know how the partnership works".

The Liberal Democrat councillor said: "I think this meeting has shown the lack of understanding of the partnership by the panel."

Cllr Julian Goodrich, who was listening in to the meeting, felt that the town council should not be "spending any money, if they could possibly avoid".

He added: "From what I have seen in the documentation, there is no plan on why this money needs to come through now from this year's budget because it is not being spent."

Mr Poulson stated that the quarter two report indicated what the partnership had been doing.

He said: "With the current situation we could have easily said we are not able to achieve anything, so the best thing to do is to close the partnership down.

"We did not do that because we wanted to serve the community the best we can, so we looked at lots of alternative ways of working."

The partnership covered VE Day celebrations, created a business directory, had their first virtual Italian Festival and are currently working on plans for an alternative Christmas.

Mr Poulson stated that the funding the partnership had asked for was to "maintain their operation" and highlighted that they have a number of fees they need to pay like phone contracts, insurance and email accounts.

Out of the £4,500 earmarked for this year's Christmas event, £3,000 has been put aside by the partnership to fund that.

The meeting was told that Marshall Accountancy located in Alsager, put together the partnership's accounts and Mr Poulson stated that the accounts had been audited, which he felt was an "acceptable way to go about it".

Mr Poulson stated that the accounts were not fully audited because the partnership had an "external person" come in and look what they have done.

The meeting was told the partnership's procedures and financial processes have been audited through the GRIPP process.

At the start of the year, the partnership had around £15,200 in their account, on top of that the partnership has a £10,000 reserve, £5,000 for the dementia friendly project that they have accrued funds for over the years, and £500 sponsorship for the youth forum.

Mr Poulson added: "If you take all of that off the £15,200, we started off with a negative statement at the beginning of the year."

The meeting was told that the funding in the partnership's account can fluctuate as they spend money on projects.

Mr Poulson added: "We do not spend money frivolously, it is all done through the committee, so all our payments are authorised.

"I feel upset by the comments that you are making and I do wonder whether the partnership will survive if you go along this route of saying 'we're not going to fund you'. I feel very disappointed."

Arthur Harding, of the partnership management team, got the impression the town council did not "really trust" them, which was "quite sad for a group of volunteers".

Cllr Helliwell said that it was not a case of not trusting the partnership, but she felt the "stumbling block" had come because it was only the review panel who were adhering to the Service Level Agreement.

The agreement states that audited accounts needed to be provided to the grants panel, which Cllr Helliwell stated, "had not been done".

Cllr Hearne added: "I think the biggest problem is, Alsager Partnership do not understand legal documents.

"I do understand how you follow processes and procedures to get GRIPP accreditation, but you cannot follow a simple procedure as a simple SLA agreement.

"I think it its total disrespect, we [town council] are the partnership's biggest donation. We do not want to look at every penny, we just want a breakdown.

"What I think is disrespectful is you have obviously shown GRIPP all your financials and this independent advisor all your financials, but the people giving you the money, you do not show anything to do.

"You hold back so much information. I feel like we are being totally disrespected."

Cllr Ron Tyson, who also sits on the review panel, wanted members to remember they were speaking about public money.

Mrs Clarke stated that the way the accounts are audited by the partnership is very similar to any town or parish council that has a turnover of under £25,000.

Mrs Clarke added: "I believe that is probably sufficient, but that is only my view. If you ask Cheshire Association of Local Councils (CHALC) they will say that is fine for a smaller organisation."

But the meeting was told that the town council's auditor indicated it was up to the town council to decide on the "level of scrutiny".

Speaking to Cllr Helliwell, Cllr Hough said: "I think you are wrong when you are in your diatribe."

Cllr Goodrich highlighted that the partnership was an organisation that had money in their accounts over £25,000.

The Conservative councillor added: "I think the spending of public money, asking for fully audited accounts is not a big overhead."

Cllr Hearne proposed that no further money is released to the partnership this year and the review panel ask for an action plan before making a decision on the £12,000 for 2021/22.

She also wanted an explanation why the partnership had not provided an action plan after being granted an extension from the original September deadline.

Responding, Mr Poulson said: "It is a question of time I suppose in terms of having to prepare that. Yes, there is detail behind the letter so I can submit that.

"But I am wondering if there is any point really doing that at all, but yeah I can provide an action plan."

Cllr Hearne added: "How many chances are we giving them now."

Cllr Hough sought clarification whether the partnership had produced any audited accounts by the auditor who was recommended by the town clerk.

Mrs Clarke responded: "I circulated a letter from an accountant who I would say audited the accounts but you may choose not to accept that as a detailed audit, but he has looked at the accounts and is happy they are fit for purpose."

But the review panel have still not seen the audited accounts.

Cllr Hough said: "Do you trust Nicola?"

Cllr Helliwell said: "I think that was a wholly inappropriate comment."

Cllr Hearne asked for the action plan and financial bid to be provided by Friday, so the review panel could discuss further in a meeting on Monday.

Mr Poulson said: "If you are refusing to fund us for the rest of this year then I wonder what is the point of the partnership, we might as well close now, that is my current thinking."

Cllr Hearne said that for everything to take place that the partnership said was going to happen, at the end of this financial year they would still have a balance of £4,275.50.

That is taking into account £10,000 reserves, £5,000 dementia project and £1,500 youth fund and that was including £29,328, which was all of the admin and all of the projects the partnership advised the town council about.

Cllr Hearne added: "In my opinion, they do not need any more money to actually function for the remainder of this financial year."

Cllr Tyson said: "I was very sad to hear John say we might as well pack up the partnership, I would be very sad if that happened because on past evidence the things they have done I think have benefitted Alsager.

"It is a shame we are at this stage, I would be in favour of giving them the money, I would be very sad to see the partnership go and see John losing the enthusiasm and impetus he has got."

Mr Poulson said he should have gone to a solicitor before signing the SLA agreement in "good faith".

Mr Poulson added: "It is only this year that you have insisted on full audited accounts."

Cllr Helliwell insisted that the partnership had been asked for fully audited accounts previously from previous review panels.

Cllr Hearne referred to 7.2 of the SLA which stated: 'Alsager Town Council reserves the right to withhold payment on recommendation of the review panel if there is evidence Alsager Partnership has not met their responsibilities as detailed.

'This evidence will be presented to Alsager Partnership for them to have an opportunity to respond'.

The review panel recommended that no further funding for the rest of this financial year is given to Alsager Partnership.

The panel also agreed to request the partnership came back with an action plan/financial bid alongside fully audited accounts for the £12,000 for the following year.

A further Alsager Partnership review panel meeting will take place on Monday.

     

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