Applying to the Social Enterprise Investment Fund (SEIF) 2012

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  • 1. Social Enterprise Investment Fund Workshop for Potential Applicants July 201220/07/12 1
  • 2. Background to the SEIF • Social Enterprise Investment Fund was established in 2007 under the January 2006 White Paper Our Health, Our Care, Our Say. • Social enterprises were identified as a key means of delivering high quality health and social care services tailored to the needs of communities, providing more choice and better and more responsive services.20/07/12 2
  • 3. SEIF Investment To Date • Since its launch, the SEIF has invested more than £100m in the health and social care sector. • SEIF has invested in more than 600 social enterprises working across a wide range of health and social care areas. • Investments: – Jamie’s Farm – Norcare – Jets Foundation – HCT Group20/07/12 3
  • 4. SEIF in 2012/13• Fund managers – The Social Investment Business and Local Partnerships.• c£19.1million to be invested (£3m revenue; £16.1m capital)• Applications have opened 2 July 2012 and will close 12 noon 24 August 2012.20/07/12 4
  • 5. Eligibility• Existing or emerging social enterprises in the health and/or social care• Organisations who are able to demonstrate a high level of social impact.• Organisations principally delivering health and/ or social care outcomes (including physical, mental and public health, adult and children’s social care, wellbeing)Applicants must be either• Organisations, including small and micro enterprises, that are classified as a social enterprise under the Government definition: ‘a business with primarily social objectives whose surpluses are principally invested for that purpose in the business or in the community, rather than being driven by the need to maximise profit for shareholders and owners’;• Organisations in the form of: – an unincorporated association, trust or company set up and registered as a charity; – an unincorporated association set up as a voluntary or community group; – a community interest company; – a not for profit company limited by guarantee; or – a community benefit society.• Organisations whose ultimate beneficiaries are in England• Organisations with proposals for which funds can be drawn down and spent by 31st March 2013• Organisations are unable to secure funding for the total cost of the proposal from a commercial funder or unable to fund the total cost of the proposal from unrestricted reserves• Responsibility of all applicants to determine if they are eligible to apply 20/07/12 5
  • 6. Priorities for 2012/13 • High social impact – Proposals that can demonstrate a high social impact, including addressing health inequalities, and/or protecting and improving health and well- being. • Revenue Funding - £3m – Right to Provides and Right to Requests that have not yet launched or have never previously received SEIF funding. – Support with commercial capability and with bidding. – Early intervention support for existing investments that are ‘Cause for Concern’ (i.e at financial risk)20/07/12 6
  • 7. Priorities for 2012/13 • Capital Funding - £16.1m – £750,000 ring-fenced for all Right to Provides and Right to Requests that have not yet launched or have never previously received SEIF funding – £5.35 million for service priorities: • Integrated health and care provision, including supporting DH’s information strategy • Home or community based support (including provision for mental health, learning disability, care for frail older people with multiple/complex needs, end of life/palliative care) that prevent or reduce acute care, long-term residential care or in-patient facilities • Timebanks and other reciprocal arrangements • Personalised services.20/07/12 7
  • 8. Priorities for 2012/13 – Up to £10m for innovative investment vehicles: • a Capital Fund to provide Information & Communications Technology (ICT) support for post launch Right to Request social enterprises. • Details of other potential innovative investment schemes will be advertised in due course.20/07/12 8
  • 9. Summary• Grants and Loans programme via SIB including focus on high social impact• Right to Provide applicants and Right to Request applicants for the ICT Fund should apply to Local Partnerships20/07/12 9
  • 10. Social ImpactHow this works for SEIF2012-13 applications20/07/12 10
  • 11. What is Social Impact exactly? “Social value (or impact) encompasses a broad concept of value by incorporating social, environmental and economic There is no one costs and benefits. definition, but it is This means that as well as generally accepted taking into account the direct effects of interventions, the that… wider effects on other areas of the economy should also be considered”. The Compact20/07/12 11
  • 12. SEIF 2012-13 • All proposals submitted under the SEIF strategic priorities 2012- 13 must demonstrate high social impact in their applications forms. • Applications that demonstrate no or low social impact will be considered ineligible and will not move forward for assessment.20/07/12 12
  • 13. How will SEIF measure your Social Impact? We will look at: • Who your beneficiaries are and how well you understand them. • Track record of your organisation and/or your executives in delivering high social impact. • The expected impact of your proposal. • The enduring impact of your proposal. • What evidence you have to support your claims.20/07/12 13
  • 14. Terminology and Jargon • Outputs – direct and tangible products from activity • Outcomes – changes to people resulting from activity • Impact – the overall result of the outcomes realised by an organisation20/07/12 14
  • 15. EXAMPLE (Outputs vs. Outcomes and Enduring Impact) Supporting adults recovering from alcohol or drug dependency, their children, other family members: • A number cease or reduce substance abuse • The majority report improved physical and mental wellbeing • NHS hospital admissions for related conditions are reduced • Relevant reported crime is reduced • Fewer children are placed in care • Community perceptions of public safety improve20/07/12 15
  • 16. EXAMPLE (Outputs vs. Outcomes and Enduring Impact) Providing training opportunities and supported employment for people with mental health problems • Increased mental stimulation, a more positive outlook, and reduced levels of anxiety and depression • Increase in application for jobs and increased employment • Reduced attendance at Local Authority mental health support services and savings in welfare benefits • Increases in employment and tax income and increased contributions to the local economy20/07/12 16
  • 17. Finally… Ensure your application addresses both: • Your experiences, as an organisation or individuals leading it, of delivering high social impact in the past and • How the proposal for which you are seeking funding will achieve high social impact20/07/12 17
  • 18. SEIF 2012-13APPLICATION FORM ANDPROCESS20/07/12 18
  • 19. Application Form & Guidance Notes • We only accept electronic versions of the application form except in exceptional circumstances (with prior agreement) • Read the Guidance Notes first and check that you meet the eligibility criteria • If you meet the criteria, complete the application form – ensuring you read the guidance notes for each question • Submit your completed form plus all supporting documentation by 12noon on Friday 24 August 2012 19
  • 20. Supporting Documents Your application form must be accompanied by: • 3 years audited accounts if available • Latest management accounts • Income & Expenditure forecast using our template • Cashflow forecast using our template20/07/12 20
  • 21. Submission of Forms and Documents • Form must be submitted electronically • Send form and supporting documents to: • Documents must be sent from the same e-mail address entered on page 3 of the form • Documents must be received on the same day as your application form is submitted • The name of your organisation must appear in the subject line of the e-mail. • The maximum file size for our system is 6mb (zipped).20/07/12 21
  • 22. Application Steps Submit application Scoring on criteria & Initial 2012/13 priorities check Due diligence DecisionValidation & confirmation of eligibility Recommendation to SEIF Social Impact Investment Committee scoring 20/07/12 22
  • 23. Initial Check 3. That the application form has been completed fully. 5. That all supporting documentation has been received. Failure results in rejection of application20/07/12 23
  • 24. STAGE 1: Validation & Confirmation of Eligibility This includes ensuring that: 1 The applicant, project and costs meet programme requirements and eligibility criteria 2 The social impact questions have been answered and evidence provided – applications which do not address these questions will not move forward 3 The investment would not breach State Aid de minimus levels 20/07/12 24
  • 25. STAGE 2: Social Impact Scoring Applications are scored in relation to answers and evidence provided for the social impact questions. 1 Applications that demonstrate no or low social impact will be rejected. 2 Applications that demonstrate medium or high social impact move forward to the next stage.20/07/12 25
  • 26. STAGE 3: Scoring on Criteria and 2012-13 Priorities • This stage scores applications in relation to criteria and the 2012-13 priorities. • It also scores applications against each other. • At this stage we may telephone you to discuss your proposal.20/07/12 26
  • 27. STAGE 4: Due Diligence This stage is a thorough assessment covering: • Financial Analysis; • Debt Servicing; • Governance; • Management. Expect further telephone calls from us.20/07/12 27
  • 28. STAGE 5: Recommendations to SEIF Investment Committee The Final Stage Your application will be considered by the investment committee and a decision made.20/07/12 28
  • 29. Successful Applications Agreed byInvestment Committee Request funds using drawdown form and provide other required Issued with documents offer documents Accept and return Funds transferred within Monitoring offer within date 6-10 working days Provide information to fulfil basic Spend complete pre-conditions by 31 March 2013 20/07/12 29
  • 30. Unsuccessful Applications• We will advise all unsuccessful applicants stating the main reason for rejection.• Due to the likely high volume of applications we will not be able to provide additional detailed feedback. 20/07/12 30
  • 31. Tips • Ensure that you’re eligible • Use the Guidance Notes • Ensure that you can articulate and evidence high social impact • Check your State Aid levels • Don’t re-hash old applications • Be honest, concise and to the point • Avoid jargon • Don’t submit at the last minute! • Make yourself available after submitting your application20/07/12 31
  • 32. SIB Contact details • • • Tel: 0191 269 227620/07/12 32
  • 33. SEIF WorkshopsJuly 2012Commercial expertise driving value and efficiency in local public services 20/07/12 33
  • 34. Topics to be covered - • Local Partnerships’ role • Spin-outs • Application Process20/07/12 34
  • 35. Local Partnerships’ role • Local Partnerships is a joint venture between the Local Government Association and HM Treasury. - We occupy a unique position as policy delivery partners for central and local government, acting exclusively for and on behalf of the public or community focussed third sectors, freely sharing the intellectual property we develop. • Local Partnerships has been co-managing the Social Enterprise Investment Fund (SEIF) with The Social Investment Business since June 2009. • Local Partnerships has developed strong relationships with health and social care spin-outs (via the Right to Request and Right to Provide policies) as a result of its fund management responsibilities.20/07/12 35
  • 36. Spin-Outs A spin-out is a group of public sector workers who have come together to establish a standalone social enterprise outside of the public sector, with the aim of delivering improved public services. Some spin-outs have followed the Right to Request or Right to Provide policies. Some are in development while others have launched. As a spin-out will provide services historically provided from within the public sector they will typically be awarded a contract for services as part of the spin- out process.20/07/12 36
  • 37. The Journey of Transition to Social Enterprise (R2P) Milestone 1 Milestone 2 & 3 Milestone 4 Approval to investigate Approval of the Launch of the the viability of the social request to become a enterprise enterprise option social enterprise Board / Cabinet Board / Cabinet Board / Cabinet approval to develop a approval of Business agreement of the business plan which Plan and corresponding service contract and Assurance investigates the Transition Plan business transfer viability of the potential agreement to the new enterprise enterprise Options appraisal Business planning Shadow / transition phase Business management and development •Stay as we are The business planning process results in: • Contractual relationships (existing •Viability and new commissioners) •Join with another public body •The development of a combined public •Sustainability (integration) service focussed commercial approach to • TUPE •Service transformation service delivery •Charge others for our services • Executive team development •Reinvestment of surpluses (charging powers) •The assessment and development of the • Board development capacity and capability needed to launch and •Social impact •Create a public sector owned sustain a social enterprise • Corporate services negotiations trading entity (trading powers) •Success! •The evaluation and assessment of the • Asset transfer negotiations •Become an independent entity financial viability and sustainability of the (social / commercial enterprise) enterprise •Source a JV partner •A clear understanding of the risks and risk management requirements associated with delivery of public services through the enterprise •The development of a competition strategy which is underpinned by a clear understanding of positioning within a competitive market •The development of a transition planResources / Funding (£0-£000s) Resources / Funding (£000s - £250K+) Resources / Funding (£000s - Growth Funding (£000s - £M+) £250K+) Staff time / External expertise Staff time / External expertise external investment, profit re- Staff time / External expertise investment, overdraft 20/07/12 parent body parent body, grants parent body, grants, repayables 37 1 week to 6 months? 1 to 12 months? 3 to 24 months? 1–5 years for initial contract?
  • 38. Spin-Outs & SEIF • The SEIF 2012/13 investment aims to support the following service priorities: – Proposals that demonstrate high social impact; – Right to Provides and Right to Requests that have not yet launched or have never previously received SEIF funding. • For the Revenue allocation: – Capacity building support, particularly for commercial capability and support with bidding. • For the Capital Allocation: – An information and communications technology fund to assist post- launch Right to Request applicants or other public sector social enterprise spin-outs providing health or social care services; – Integrated health and care provision, including supporting DH’s information strategy; – Home or community based support (including provision for mental health, learning disability, care for frail older people with multiple / complex needs, end of life/palliative care) that prevents or reduces acute care, long-term residential care or in-patient facilities; – Timebanks and other reciprocal arrangements; – Personalised services.20/07/12 38
  • 39. Application Process (all but ICT Fund) enquiry due diligence & call / meeting application with LP feedback Decision! next steps letter / email investment response committee20/07/12 39
  • 40. Application Process (ICT Fund) expression of due diligence & interest application (31 July 2012) initial review feedback Decision! next steps letter / email investment committee (7th / 8th Nov) response20/07/12 40
  • 41. For more information• Department of Health:• Social Investment Business: Tel: 0191 269 2276• Local Partnerships:• Please hand in any question cards on your way out and we’ll reply by 31st July.20/07/12 41