Sheffield Health Compact Protocol on Funding Executive Summary
What is the Sheffield Health Compact?
· It is an agreement between the NHS Trusts and the voluntary, community and faith (VCF) sector,
about how they work together. All parties signed up to common principles in April 2004. Since
then, working groups have been developing protocols on funding, partnership, and participation
and consultation
.
Why have a protocol?
· The aim of the three protocols is to make a positive impact on the relationship that exists
between the statutory agencies and the VCF Sector in Sheffield. The protocol will help to develop
and sustain effective procedures that result in a more effective relationship between NHS trusts
and the VCF sector.
Aims and main principles of the funding protocol
Funders will:
· Commit to ensuring that all funding streams are transparent, consistent and fair. When
commissioning services they will work to ensure that the true cost of delivery is funded in full.
· Recognise that longer term funding improves sustainability and longer term planning and is
preferable to annually renewable funding.
· Make payments in advance of expenditure rather than in arrears, as smaller VCF sector
provider organisations will not normally have the capacity to manage the cash implications of
payment in arrears.
VCF sector will:
· Develop financial strategies and supporting business plans using the principles of full cost
recovery, submitting the full cost of providing a service to ensure the longer-term
sustainability of the organisation.
· Operate with good management practice, maintain high standards of governance and
conduct, and provide a commitment to equal opportunities in relation to staff, volunteers and
end users.
Contracting
Funders will:
· Ensure that applicants have access to all the relevant background, especially the strategic
policies and priorities to which their contract should relate, type of funding available, eligibility
criteria, and that applicants are offered a mutually realistic timetable.
· Work towards establishing joint procedures where a number of funders have an interest in
supporting an organisation, in order to streamline procedures and reduce duplication.
· An arbitration service should be used where disputes cannot be resolved. These provisions
should be included in contract and service agreements as standard.
Assessing funding applications
Funders will:
· Ensure that assessment processes are transparent, so that all applicants are aware of the
process and how they will be assessed.