Funding and performance management

The key to effective use of funding resources, whether making/receiving small grants, investing in support capacity, or commissioning major services, is the management of good relationships, with effort required by all sides.

Compact Promise

“We will work together to make the most efficient and effective use of our available funding resources to deliver the best outcomes for the people of Wiltshire.”


This promise:

Requires policy and procedures that drive sound funding decisions to support quality services


This promise:

Encourages and promotes high standards of governance, compliance and accountability to meet partners’ obligations to service users, funders, staff and volunteers


This promise:

Avoids the need for ‘financial surprises’

The key principles are:

  • That funders and commissioners are accountable for public funds and must work within public policy, central government direction, financial and procurement regulations
  • That voluntary and community sector organisations can act as advocates for communities with needs, which can assist the public sector design of a commissioning process
  • That processes to access funding are proportionate, taking into account the value of the money to be awarded
  • That funding is awarded via consistently applied processes which are clear, open and equitable and which clearly explain the outcomes to be delivered
  • That commissioners take account, where required, of the social value of their intended actions
  • That after review, the de-commissioning of services, or reductions in funding, services or activities, may be necessary from time to time and that these situations will be managed within the spirit and principles of The Compact
  • That strategic decisions to alter levels of funding to the voluntary and community sector can have a de-stabilising effect, and must be carefully managed and communicated
  • A respect for the voluntary and community sector’s independence and its lawful right to speak out on behalf of its members and service users, on the basis of robust evidence, irrespective of any funding relationships which may exist
  • Clear monitoring and evaluation to evidence the difference that received funding has made to the people of Wiltshire


The public sector undertakes to:

  • Work to a published funding or commissioning framework that is corporately agreed across their organisation when working with voluntary and community sector organisations
  • Provide timely information to the voluntary and community sector about changing public policy, development of new service outcomes, and related funding opportunities allowing sufficient time for bids or tenders to be prepared
  • Consider ‘social value’ and maximise the opportunities for small voluntary and/or community groups to engage in delivery of public services, whilst acting within procurement law
  • Acknowledge that voluntary organisations have the right to use the full cost recovery process, but may choose not to do so
  • Provide, wherever possible, at least three- year funding agreements, recognising that this improves confidence, stability and sustainability
  • Commence a 12 week period of consultation (or less by mutual consent at the outset, and clearly state why this is appropriate) if funding is to be reduced, that will at the point of launch, publish the criteria and revised outcomes upon which a decision will be made. During the consultation period, an Impact Assessment, including that on Equalities, will be jointly undertaken with voluntary and community sector representation detailing the effects on affected communities or service users
  • Review consultation feedback before deciding to proceed
  • Follow the consultation review, if proceeding, with a three month period of formal notice with continuing dialogue that gives sufficient financial information to the affected organisation upon which to base management action (such as ‘risk of redundancy notice’ to staff, or re-direction of services or resources)
  • Ensure payment of grants and contract fees within agreed timescales and where possible and appropriate pay grants in advance rather than in arrears
  • Consider the financial stability of organisations being paid by results, recognising core costs; only request monitoring information that is proportionate and that will evidence not only outcomes but experiences of the whole commissioning cycle

The voluntary sector undertakes to:

  • Seek to create a mix of funding sources and use good risk management principles that include a financial reserves policy
  • Where proportionate to do so, develop business plans to ensure the sustainability of their organisation and its services which may include collaboration or consortia arrangements with other organisations
  • Recognise and prepare for the event that certain funding/projects will be time-limited
  • Provide clear monitoring and evaluation information which shows the return on a public sector agency’s investment in an agreed format proportional in scope to the investment made
  • Establish the added value that they provide including recognition of an equivalent monetary value to volunteering