Funding news

Capacitybuilders drops interest repayment clause - Thursday 8 November 2007

Capacitybuilders has dropped a clause in its funding contract saying that grant recipients might have to return interest accrued on grants due to breaches of the Compact. Capacitybuilders’ reporting requirements have also been simplified.

The clause stated that funded groups "might be asked to pay Capacitybuilders accrued interest of more than £2,000" and stipulated that interest must be spent in line with grant purposes. Simon Hebditch, chief executive of Capacitybuilders accepted "the contract could be over-burdensome and people could be raising interest from all kinds of sources. Being able to identify the amount raised from us is difficult."

Reporting requirements were simplified after the NCVO claimed they were so onerous that they effectively delayed payments and therefore breached the Compact, which states that payments should be made in advance.

A Cabinet Office spokesman said: "There is a balance to be had between accountability for public funds and burdensome monitoring”.

Read the full article at the link below:
www.thirdsector.co.uk/News/DailyBulletin/764817/Capacitybuilders-drops-interest-repayment-clause/ (opens new window).