Alternative governance luton


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Advantages and disadvantages of being located in a multi-services trust. Fiona Marriot.

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Alternative governance luton

  1. 1. Multi-service Trusts Advantages and Disadvantages Jean George Barry Shine Director of Libraries Director of Finance & Resources
  2. 2. Luton Background <ul><li>Active Luton, 2005 </li></ul><ul><li>Museums, February 2006 </li></ul><ul><li>Consultants, 2006 </li></ul><ul><li>Libraries and Arts, 2007 </li></ul><ul><li>Three services became a registered charity on 1 March 2008 </li></ul><ul><li>LBC’s intention to ‘Protect and Enhance’ </li></ul><ul><li>Ongoing savings </li></ul><ul><li>Airport </li></ul>
  3. 3. Advantages <ul><li>Clarity of focus </li></ul><ul><li>Fleeter of foot </li></ul><ul><li>Entrepreneurial </li></ul><ul><li>Shared resources </li></ul><ul><li>Shared skills </li></ul><ul><li>Shared priorities </li></ul>“ Interesting to meet up with other employees in the Trust and to explore how we may help each other and share expertise and resources”
  4. 4. Advantages <ul><li>At arms length from the Council </li></ul><ul><li>Seen as partner organisation by Council – Generations Together, Migration Impact Fund </li></ul><ul><li>Invited to the table of all key meetings as equal – Safer and Stronger Communities, Health and Wellbeing, Children's Trust, Luton Forum. LCST now a key partner in delivering LBC outcomes </li></ul><ul><li>Commissioning services </li></ul><ul><li>Council support – do not want us to fail </li></ul>
  5. 5. Advantages <ul><li>New ways of working </li></ul><ul><li>Able to reward staff </li></ul><ul><li>Employee trustees </li></ul><ul><li>Staff feel more involved </li></ul><ul><ul><li>“ A true sense of being involved in consultative processes and future direction” </li></ul></ul><ul><ul><li>“ Being able to interact as a team. Real chance for change and improvements for customers and us” </li></ul></ul><ul><ul><li>“ We were able to share similarities and differences on how we work as a group entity as well as the challenges we face day to day” </li></ul></ul><ul><ul><li>“ Potential that this organisation has!” </li></ul></ul>
  6. 6. Advantages- Financial <ul><li>Savings to the local authority – National Non Domestic Rates (NNDR) and Luton Airport </li></ul><ul><li>Trust planning - five year funding agreement </li></ul><ul><li>Financial security – of sorts </li></ul><ul><li>Budget our own! </li></ul><ul><li>Registered charity & Trading Company </li></ul><ul><li>Entrepreneurial </li></ul><ul><li>Additional funding from LBC for partner projects </li></ul>
  7. 7. Disadvantages <ul><li>No safety net </li></ul><ul><li>Complexities of a new company and new charity </li></ul><ul><li>Still tied to the local authority via the service level agreements for services </li></ul><ul><li>Transfer of liabilities </li></ul><ul><li>Regulatory burden </li></ul>
  8. 8. Disadvantages – Financial <ul><li>Adequate funding </li></ul><ul><ul><li>VAT </li></ul></ul><ul><ul><li>Funding agreement based on RPI </li></ul></ul><ul><ul><li>Funding agreement can be renegotiated at any time </li></ul></ul><ul><ul><li>Low interest rates </li></ul></ul><ul><li>Cashflow </li></ul>
  9. 9. Risks <ul><li>Trust and Council disagree on key issue </li></ul><ul><li>Over-governance by Council - must be seen as arms length to </li></ul><ul><ul><li>Be able to be entrepreneurial </li></ul></ul><ul><ul><li>Meet charitable and audit requirements </li></ul></ul><ul><li>Appointment of Trustees - recruiting the right Board and the right Chair </li></ul>
  10. 10. Risks <ul><li>Must have good financial support – Director of Finance key </li></ul><ul><li>Time taken to create unified service </li></ul><ul><li>Initiative overload </li></ul>
  11. 11. Other Issues <ul><li>Seen by other charities as a threat </li></ul><ul><li>Still seen as LBC service </li></ul><ul><li>Becoming more self sufficient. Currently 70% of funding from Council. 10 years the aim is 50/50 </li></ul>
  12. 12. Conclusion <ul><li>Three years on are we in the right place? </li></ul><ul><li>YES! </li></ul>
  13. 13. Jean George Director of Libraries email: Tel: 01582 547422 Barry Shine Director of Finance & Resources email: Tel: 01582 547444