Minutes:
The Committee considered the following report:
“1 Background Information
1.1 A request for funding has been received from WOMEN’STEC for short term funding to address critical and immediate cash flow issues.
1.2 Based in Belfast, WOMEN’STEC provides training for women in non-traditional skills, specifically for the construction and ICT sectors and employs 5 staff. The aim of the organisation is to target social and economic disadvantage by supporting females back into employment, to promote workforce diversity and address skill shortages. The organisation operates training programmes across a number of disciples including joinery, furniture making, plumbing, painting and decorating, ECDL, social media and digital services.
1.3 WOMEN’STEC is primarily funded through the delivery of a European Social Fund (ESF) project entitled ‘Extend Training in the Community’, expected to conclude in March 2015. To date over 300 women have benefited from this project, which supports females in disadvantaged areas to access soft skills, vocational skills and employability training to improve their ability to participate in the labour market or engage in further training.
1.4 Members will be aware that the ESF is an EU fund to address economic activity and increase workforce skills. In Northern Ireland the programme is administered by the Department of Employment and Learning (DEL). A call for projects under the new ESF programme was launched by DEL at the end of November 2014, closing 9 January 2015. Successful projects will be operational from 1 April 2015 to 31 March 2018.
1.5 Members will also be aware of the challenges faced by organisations in finding match funding for ESF projects. While projects may be approved for funding, many do not have their match funding identified and this is likely to generate significant demands on the council and other potential funders when the assessment process concludes in February 2015.
2 Key Issues
2.1 The current ESF project delivered by WOMEN’STEC entitled ‘Extend Training in the Community (ETC)’ will end in March 2015 and is the main source of income for the organisation. The programme is fully funded by ESF and the Belfast Regeneration Office (BRO). However changes to the rules in vouching expenditure of ESF projects and a delay in payments due to new audit requirements by DEL, have led to cash flow issues.
2.2 To alleviate financial pressures WOMEN’STEC has approached the Ulster Community Investment Trust (UCIT) to obtain a bridging loan of £20,000. However they have recently been advised that the application cannot proceed until additional resources are secured. In order to lever loan funding WOMEN’STEC must provide confirmation, by the end of January, that additional funding of £18,500 has been secured. If funding cannot be secured at that level, it is expected that WOMEN’STEC will cease to operate beyond February 2015.
2.3 WOMEN’STEC are continuing efforts to alleviate immediate cash flow issues and £1,500 has been secured through their social economy trading arm. Clanmil Housing Association has also committed £10,000 and engagement with private sector organisations is also taking place. However no further commitment has been confirmed. Despite these efforts a funding gap still exists to draw down the UCIT loan of £7,000.
2.4 WOMEN’STEC have submitted a project for consideration in the most recent call for applications for the new ESF programme. This new project ‘Supporting People –Empowering Communities’ (SPEC) will be delivered in partnership with Clanmil Housing Association. Targeting Clanmil Housing residents from across Belfast, this project will deliver training on DIY maintenance and money management. In addition the programme will offer apprenticeships and work experience placements to WOMEN’STEC students.
2.5 Delivery of this project will be dependent upon a successful ESF application and securing match funding requirements. Members will be aware that the ESF is a competitive process and that not all projects will be successful in receiving funding. WOMEN’STEC are seeking funding from a range of sources but they do not have all their match-funding in place at this point (like many other ESF applications).
2.6 To enable WOMEN’STEC to continue to operate in the short term and lever the loan from UCIT, members are asked to consider providing funding up to £7,000 to address the immediate cash flow issues faced by the organisation.
3 Resource Implications
3.1 The resource implication for this request is to provide £7,000 of funding to help the organisation access a bridging loan from UCIT. The Director of Development will be required to discuss this request with the Director of Finance and Resources given that no provision has been made within the current departmental budgets.
4 Equality and Good Relations Considerations
4.1 None.
5 Recommendation
That the Director of Development engages with the Director of Finance and Resources to discuss the request given that no provision has been made within the current departmental budgets.”
The Committee agreed, in principle, to accede to the request and authorised the Director to discuss the matter with the Director of Finance and Resources to ascertain if a sum of £7,000 could be identified from within the Council’s budgetary underspend for that purpose. In addition, the Committee delegated power to the Directors to make the payment should sufficient funds be identified.