Community Services Programme 2018-2020 Re-Contracting Regional Support Events 1th-14th February 2017

Overview of Support Event Context 2018-2020 Re-contracting Process Purpose of Support Event CSP and Social Enterprise Role of the Business Plan Appraising the Business Plan Completing the Business Plan Questions and Answers and one-to-one support

Context 400 CSP funded service providers 230+ re-contracting in 2017 Strand 1 services Strand 3 services Strand 1s/2 who are on one-year contracts Strand 1s/2 who are looking for additional resources Expression of Interest (EOI) services

2018-2020 Re-contracting Process Email to Strand 1/3 services on 12th October 2016 encouraging service providers to begin preparations for new Business Plan (BP) Email in January 2017 confirming BP completion deadline of Thursday 30th March 2017 at 5pm and invitation to attend one of 9 regional support events. Support Visits by Pobal Development Co-ordinators Online BP template to be available from 1st week in March Appraisal of Business Plans Recommendations to DSP and final decisions (3 year contract, 1 year contract or not recommended for funding/exit) Communication of outcome to service providers in Autumn 2017

Purpose of Support Events To support the development of quality business plans To provide guidance to service providers in relation to key requirements associated with the business planning process.  Opportunity for engagement with Pobal support staff

CSP and Social Enterprise A key requirement under the CSP is that service providers generate traded income by adopting a social enterprise model of delivery. For the purposes of the CSP, social enterprises can be defined as follows: “An enterprise that trades for social/societal purpose, where at least part of its income is earned from its trading activity, is separate from government and where the surplus is primarily re-invested in the social objective”

CSP and Social Enterprise Different types of social enterprises that generate a traded income…. Delivery of specific services with a social dividend (e.g. meals on wheels, care for the elderly, home improvements, transport, environmental services, visitation services, childcare provision, community media) Local economic development (e.g. tourism facilities or products, sports facilities, heritage and arts facilities) Creating employment opportunities for disadvantaged groups (e.g. focus on training and integration of unemployed, people with disabilities, ex-prisoners and other target groups) Deficient Demand Social Enterprises: where the demand for particular goods and services within a community is not matched by the resources to pay for these, due to disadvantage or low density of population. And sometimes a mix of two or more of the above

CSP and Social Enterprise Rule of thumb 50/30 CSP contribution should be no more than 50% of turnover Service providers aim to achieve minimum 30% of turnover from traded income Balance from other sources such as fund raising or grants

Role of the Business Plan The function of business planning is to define your social enterprise model and provide details on all aspects of your operations, including: Governance, Service/Product Market and Market Research Finance (creating a surplus, achieving sustainability) Social Impact (contributing to positive and measurable change for people).

Role of the Business Plan The Business Plan should answer key questions Why are we in Business? What business are we in? How do we make money? It is important that Business Planning is not simply viewed as a ‘Pobal requirement’, but is viewed as a key tool for achieving positive outcomes using a social enterprise model.

Appraising the Business Plan Each Business Plan will be appraised against the following 5 criteria: Capacity of the organisation Demonstration of Need Sustainability Value for Money Strategic Fit

Capacity of the Organisation (slide 1 of 2) Is there a robust governance structure? Is there appropriate experience and expertise on the Board and Management? Has the board taken specific actions to improve the capacity of the board?

Capacity of the Organisation (slide 2 of 2) Are there appropriate financial and management control systems? How has the organisation performed with their previous contracts, reporting to Pobal and addressing audit findings? Sections 2, 3 4 of the business plan particularly relevant

Demonstration of Need (slide 1 of 2) How is the need for the CSP service demonstrated? Clear and concise analysis of the issues and need(s) are required, supported by up to-date data and relevant research Demonstrate how the services/facilities will meet the need outlined. Evidence that the need addressed by the CSP service is not being met by any other public or private resources

Demonstration of Need (slide 2 of 2) Think of the following questions…. Who are your customers? What are your customer needs?  How big is the market?  Who else is offering the same product/service in your area, and what price do they charge? Section 6 of the business plan is particularly relevant and Sections 3 and 5.

Value for Money Does funding the CSP service represent value for money? Is there a clear justification for the level of requested CSP supported Full Time Equivalents (FTEs) – is there a business case made for each role? Is the CSP “FTE” level is commensurate with other comparable services or facilities? Are the level of outputs, actions and outcomes appropriate and commensurate to the level of CSP investment? Sections 3, 5 and 6 particularly relevant

Sustainability Are the levels of traded income, CSP funding and other income satisfactory and in line with a social enterprise model and the CSP rule of thumb? Does it include a realistic forecast of income and expenditure? Is the organisation and its CSP service(s) sustainable and viable? Has the applicant sought to develop new income streams and are the plans realistic? Are the organisation reserves adequate and are they in line with the organisations reserves plan? Are the levels of traded income, CSP funding and other income satisfactory and in line with a social enterprise model and the CSP rule of thumb?

Strategic Fit Does the organisation demonstrate that they meet a social, economic or environmental need in the community which is not being met through public or private funding or other resources? Does the organisation meet the CSP staff 70% eligibility criteria? Does the Business Plan meet the current CSP eligibility requirements? How closely aligned is the organisation to a social enterprise model? Does the Business Plan provide clear evidence of how the services and/or facilities contribute to the overall aim and eligibility criteria of the Community Services Programme? Has the Business plan taken into account any displacement or duplication issues? Sections 1, 3, 5,6,7 all relevant.

Checklist for Submitting Business Plan Signed Annual Financial Statements for 2016 (or minimum draft AFS for 2016) Copies of Job Descriptions for all staff to be supported by CSP Cash-flow statement Organisational Reserves Plan Pricelist or pricing policy for services/facilities Organisational chart