The Chair introduced the report noting that information on the projects reported and recommendations had been updated since the agenda was published. This information was provided in the addendum report tabled at the meeting.  Steve Hill, Head of Grants and Benefits informed the Sub Committee that the report focussed on projects where property issues remained outstanding and provided updates on these projects concerning measures to regularise property arrangements and their implications on the payment of MSG funding.

The written comments of Grants Scrutiny Sub Committee were noted.  Sub Committee Members’ and Commissioner Caller’s comments on the following issues were noted:

• That performance monitoring should distinguish between activity outputs and outcomes.
• That there should be greater outcome monitoring.
• Concern highlighted by GSSC around disproportionally high rents for small organisations, especially where these operate from premises other than those classified as community buildings.
• That, given the mediation and engagement offered by the Council in respect of Children Education Group (CEG) to regularise its property arrangements, that the terms offered to this project (set out at recommendation 1) are reasonable.
• That historic property arrangements relating to 82 Russia Lane are complex and that the premises offers a mixed administrative and community provision which does not fully fit the Council’s community buildings criteria.
• That a number of weeks will be required to complete a survey to determine rental value of 82 Russia Lane and draw up heads on terms. Following this Age UK and Black Womens Health and Family Support will require reasonable time to review their intention to enter into a lease.
• That a consistent rationale and transparent approach must be adopted in resolving property issues.  Any discounts must be consistently applied according to agreed criteria.

RESOLVED

Recommendation 1

i.          That grant funding to CEG continue to be suspended until confirmation that CEG has entered into the lease agreement.

ii.         That the Children Education Group (CEG) be required to have entered into an appropriate property agreement within seven (7) consecutive days of the issue of the Heads of Terms by the Council.  If CEG have entered into an agreement, MSG payments can be released subject to satisfactory performance.  In the event that CEG have not entered into an appropriate property agreement within seven (7) consecutive days of the issue of the Heads of Terms, CEG are to be removed from the current MSG programme and no further MSG payments be made.

Recommendation 2

i.          That Bethnal Green Weight Lifting Club be alowed until the next Grants Determination Sub Committee (GDSC) meeting (9 May 2017) to confirm their intention of entering into an appropriate agreement, at market rate.

ii.         That payment of grant be suspended after this date if no confirmation is provided.

iii.        That grant payment continue to this organisation monthly in arrears, subject to satisfactory performance until the date of the next GDSC meeting (9 May 2017).

Recommendation 3

That, in acknowledgement of the developments for 82 Russia Lane, whilst the survey is undertaken and revised Heads of Terms are sent to Black Womens Health and Family Support, MSG payments be changed from quarterly in arrears to monthly in advance, subject to satisfactory MSG performance ratings.

Recommendation 4

That, in acknowledgement of the developments for 82 Russia Lane, and whilst the survey is undertaken and revised Heads of Terms are sent to Age UK East London, MSG payments be changed from quarterly in arrears to monthly in advance, subject to satisfactory MSG performance ratings.

Recommendation 5

i.          That payment of grant to Pollyanna be suspended pending satisfactory outcome and completion of the review of arrangements with Wapping TRA. 

ii.         That it be noted that the outcome of the review will be supplied to the 9^th May Grants Determination (Cabinet) Sub Committee.

Recommendation 6

i.          That MSG payments to Our Base LTD continue to be suspended until an appropriate property agreement is in place. 

ii.         That it be noted that an update report will be provided at the 9^th May Grants Determination (Cabinet) Sub Committee.

Recommendation 7

That it be noted:

i.          The Betar Bangla project is due to end at the end of March 2017 and has received its final grant payment.

ii.         The Council is in the process of challenging the landlord over the sub-letting arrangements and the terms of the lease, following confirmation of the basis of the agreement given to Betar Bangla by Blue Pearl who are the tenants of the building.

Recommendation 8

That, since the process for preparing a licence is underway, MSG payments to Family Action continue to be paid monthly in arrears pending the appropriate premises agreement being signed within an appropriate timeframe.

Recommendation 9

That the Somali Senior Citizens Club continue to receive MSG as a result of signing the license extension, and subject to satisfactory performance.

Recommendation 10

That it be noted:

i.          That the Council issued 41 new agreements to organisations to replace the arrangements which were previously in place.  A deadline for the return of the completed forms was set for 14^th March 2017.

ii.         That a response has been received from all organisations however further information is required from 6 organisations which is being sought.  As part of this process officers need to ensure the agreements supplied are appropriate and consistent with requirements. 

iii.        An update on the audit will be provided at the 9^th May 2017 Grants Determination (Cabinet) Sub-Committee.