Decision details

To consider full applications received (if any) for Early Years Capital Grants

The Cabinet Member for Children, Young People & Families is RECOMMENDED to approve the applications from Paddocks Pre-school (Wallingford) and Trinity Pre-school (Henley) for funding from the Early Years Capital Grant, subject to:

(a)               appropriate contractual agreement;

(b)              approving the additional risk management policies (listed below) for funding substantial early years capital projects in the voluntary sector;

(c)               reserving sufficient contingency funding from the Early Years Capital Programme to cover the potential risks up to 31 March 2011.

These policies apply where the County Council is contracting with a voluntary organisation that has charitable status but has not limited liability.

The trustees of such organisations have expressed concern that the usual method for the Council to contract with such organisations would expose the trustees to accepting personal liability for the project.

The Council will seek to reduce the trustees’ exposure by stating that their personal liability is up to the amount covered by their relevant insurance.

This will result in an increased risk to the Council. If there is a breach by the voluntary organisation leading to a financial loss to the Council it will not be able to make a claim for the full amount of the loss because of this limitation on liability. Such a loss would occur only if the DCSF invoked the clawback provisions for the Early Years Capital Grant.

The Council will seek to reduce the risks to the Council by:

a)                 keeping in close touch with the organisation for the duration of the project and aiming to resolve difficulties in advance of breach occurring

b)                 funding the project in stages against certified expenditure by the project manager (professional architect or similar)

c)                  requiring the organisation to submit evidence of adequate buildings insurance at all stages of the project

d)                 requiring the organisation to submit evidence of all relevant insurances (such as trustees liability and fidelity guarantee).

The Council acknowledges there are many benefits in contracting with voluntary organisations and is committed to joint working for the benefit of communities.