Agenda item

1.    The Community Environment Fund Business Justification Case for delivery of a £1.2m programme, subject to receipt of the final grant award letter for Commonwealth Games Legacy Funding from DCMS and accepted by WMCA, which is the source of funding requested be approved subject to the administrative costs for this programme and all other Commonwealth Games Legacy funded programmes being reported to the WMCA Board in July (as part of  the Financial Monitoring Report) and, only critical spend on resources needed for the projects to progress be allowed prior to consideration by the WMCA Board and

2.    The Board be notified should this award contain any conditions that materially affect the delivery of the project as outlined within this cover report and Business Justification be noted.

The board considered a report of the Executive Director of Strategy, Integration and Net Zero, that sought approval for the Community Environment Fund Business Justification Case for the delivery of a £1.2m programme from the Commonwealth Games Legacy Enhancement Fund`

The fund would deliver 5 large and up to 30 small community initiatives by March 2025, to help create a better environment and improve people’s lives in the West Midlands. The project would align with the sustainability pillar of the Commonwealth Games and the WMCA’s Environment Team’s delivery programme and was endorsed by the Environment and Energy Board in March who would monitor the programme.

The Senior Programme Manager, Environment, Richard Rees, outlined the report and reported that the proposal would build on and broaden the already successful Community Green Grants programme into a Community Environment Fund that would seek to enhance community health and wellbeing through environment projects in addition to providing access to green space.

Councillors Hughes, Simkins, Bird and O’Boyle expressed their concerns regarding the costs of the programme for grant administration and direct resources, noting a significant amount of funding would be taken out of the project for staff costs.

Councillor Simkins enquired as to why local authorities were not delivering the project using their existing resources as he considered they were best placed to know what is best for their communities.

Councillor Bird considered the grant administration and direct resources costs should be taken out of the project and a funding pot be allocated for these for local authorities to take forward.

The Executive Director of Strategy, Integration and Net Zero, Ed Cox, concurred that costs appeared to be high, however, these were cost estimates as this stage but were deemed to have been acceptable/ justifiable by the WMCA’s Single Assurance Framework process.

In relation to an enquiry from the Chair as to whether any targets have been set for future funds to be raised, the Senior Programme Manager, Environment, Richard Rees, reported that the Community Environment Fund Manager post  would be responsible for attracting further funding from public and private bodies during the delivery of the funding. The objective in the business justification case was for at least £500k per year from 2025 based on initial conversations with one potential funder.  

In relation to comments from members regarding the need to refer costs to the WMCA Board for sign-off, the Executive Director of Finance and the Business Hub, Linda Horne, reported that the WMCA Board had agreed the overarching principles for the Commonwealth Games Legacy Enhancement Fund, however, the specific detail regarding each programme had been delegated to Investment Board for approval and a decision was required today on the individual programmes.

She advised that WMCA officers had been working with local authority colleagues regarding the best way to deliver the programmes and only actual costs would be charged to programme business cases which included cost estimates at this stage. She added that the programme costs were additional costs to deliver the respective programme and were not WMCA costs/overheads.

The Director of Commercial and Investment, Ian Martin, explained that part of the reason why programmes were set up in this way was the need to comply with HM Treasury’s requirements to demonstrate value for money which was cumbersome and costly.

Councillor O’ Boyle proposed that the report recommendations be amended so that the approval did not include £155k for direct resources.

Councillor Bird proposed the approval of this report and all CWG legacy funded reports should be subject to the removal of all administration and staff costs and these should be collated for consideration by the WMCA Board.

The Executive Director of Finance and the Business Hub, Linda Horne, reported that programmes would be unable to proceed without any resources and proposed that only critical resource spend is allowed between now and the WMCA Board in July to allow projects to progress. She proposed that the detail of all administrative and resource costs could be detailed in the Financial Monitoring Report to the July meeting of the WMCA Board.

The board endorsed this approach and the amendment to the report recommendations.

Councillor Simkins reported that he agreed reluctantly to the approach but was unhappy with the process going forward and considered the matter should be discussed at Mayor and Portfolio Leads Liaison meeting,

 Resolved:

1.    The Community Environment Fund Business Justification Case for delivery of a £1.2m programme, subject to receipt of the final grant award letter for Commonwealth Games Legacy Funding from DCMS and accepted by WMCA, which is the source of funding requested be approved, subject to the administrative costs for this programme and all other Commonwealth Games Legacy funded programmes being reported to the WMCA Board in July (as part of  the Financial Monitoring Report) and, only critical spend on resources needed for the projects to progress be allowed prior to consideration by the WMCA Board and

2.    The Board be notified should this award contain any conditions that materially affect the delivery of the project as outlined within this cover report and Business Justification be noted.