Decision details

Increase in the Council's match funding contribution to the ESF funded Pathways to Success Project

Decision status: Recommendations Approved

Purpose:

To seek approval to enter into a funding agreement with the Department for Work and Pensions (DWP) for the management and delivery of the ESF funded Pathways to Success programme under terms that differ from those outlined in the Cabinet report to which initial approval was given (21st November Item 13).

Decision:

That approval be given to increase Sheffield’s match funding contribution to the Pathways to Success project from £1,472,334 to £1,553,632, an increase of £81,298.

That approval is given to implement the resolution of the Cabinet meeting of 21st November 2018 regarding the Pathways to Success project on the basis of the revised contributions outlined above and in the Funding Agreement received from the DWP on 23rd August 2019.

Reasons for the decision:

A report seeking approval for Sheffield to become the accountable body for an ESF funded programme – Pathways to Success – was presented to Cabinet on 21st November 2018 (agenda Item 13)

Detail of the Executive Functions Decision Record from the meeting and of Cabinet’s approval to proceed is below:

13.2 RESOLVED: That Cabinet:-

a)     approves that Sheffield City Council will act as the accountable body for the Pathways to Success programme on behalf of the South Yorkshire local authorities (Barnsley, Doncaster, Rotherham) and thereby accept the European Social Fund (ESF) grant offer of up to £5,119,800, subject to the final terms and conditions being the same as those summarised in the report;

b)     approves the use of the city’s employment programmes, Sheffield Working and Sheffield 100, as match funding (£1.472m) for the life of the programme - 2019 to 2021;

c)     approves agreement being entered into with Barnsley, Doncaster and Rotherham Metropolitan Borough Councils and payments of ESF grant being made thereunder; and

d)     delegates authority to the Executive Director of People Services, in consultation with the Cabinet Member for Education and Skills, the Director of Finance and Commercial Services and the Director of Legal and Governance, to:-

                      i.     agree the terms and conditions and accept the South Yorkshire Pathways to Success fund in the event that the final terms and conditions are not the same as those summarised in the report; and agree the procurement strategy and award contracts as required to deliver the outcomes’

Subsequent to the approval by Cabinet to accept the terms of the ESF grant offer and to enter into agreements with Barnsley, Doncaster and Rotherham Metropolitan Borough Councils and prior to the DWP issuing a funding agreement for the Pathways to Success programme, Doncaster MBC decided to withdraw from the Pathways to Success programme.

The effect of Doncaster’s decision to withdraw was a reduction in the scale of the project, leading to a reduction in the overall project value and therefore the amount of ESF that could be claimed.

Sheffield had devised Pathways to Success with a core project management and accountable body team funded through ESF and responsible for project management, financial management and compliance.  Doncaster’s withdrawal led to a re-profiling of project funding and delivery targets, including changes to each partner’s contribution to the costs of the core project management and accountable body team.  These changes were necessary to maintain the project management and accountable body team at the level proposed but without Doncaster’s involvement. 

The revised funding and delivery profiles including the amended match funding contributions were submitted to the DWP. Following further appraisal, a funding agreement reflecting the new values was issued by the DWP (received 23rd August 2019).  The new values in the DWP funding agreement therefore no longer match those approved by Cabinet in November 2018.

By making an additional match funding contribution of £81,298 over the 3 year lifetime of the Pathways to Success project it will be possible to enter into the Funding Agreement with the DWP, securing posts in the project management and delivery and allowing the project to continue thus assuring the wider benefits outlined in the original Cabinet report.

 

 

Alternative options considered:

The Council could decide not to increase its match funding contribution and therefore not conclude a Funding Agreement for the project with the DWP.  This option would either lead to the delays described above, or potentially the withdrawal of the offer of funds and is therefore not recommended.

Publication date: 19/09/2019

Date of decision: 12/09/2019

Effective from: 26/09/2019

Accompanying Documents: