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Hibiscus and
Bays Local Board
20 March 2019
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Allocation
of funding to Citizens Advice Bureaux
File No.: CP2019/03387
Te take mō te
pūrongo
Purpose of the report
1. To
seek local board feedback on the proposed new model for allocating funding to
Citizens Advice Bureaux and on increasing the baseline grant
to Auckland Citizens Advice Bureaux Incorporated by
$200,000 in 2019-2021.
Whakarāpopototanga matua
Executive summary
2. There
are 32 Citizen Advice Bureau sites in the Auckland region, operated
by 11 separate Citizen Advice Bureau organisations. Bureaux staff and
volunteers offer free information, advice, referral and client advisory service
to local communities.
3. Local
boards hold relationships with their local Citizens Advice Bureau, which report
on service usage and other matters of interest to the community.
4. In
2018/2019 financial year, council granted $2.067 million to Auckland Citizens
Advice Bureaucx conditional on staff and Auckland Citizens Advice Bureaux
jointly developing a new funding model to be agreed by 1 April 2019.
5. The
new model developed with Auckland Citizens Advice Bureaux is population-based
with a deprivation factor to reflect communities with high needs and access
constraints.
6. Feedback
is sought from the local board on the new funding model and the retention of
the additional $200,000 to baseline funding of $1.867 million provided
to Auckland Citizens Advice Bureaux in the 2018-2019
financial year.
7. Local
board feedback will be included in the report to the Environment and Community
Committee in May 2019 to approve a new funding model for Citizens Advice
Bureaux.
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Ngā tūtohunga
Recommendation/s
That the Hibiscus and Bays
Local Board:
a) approve
feedback on the new model for allocating funding to Citizens Advice Bureaux
(based on 90 per cent population and 10 per cent deprivation) and on increasing the baseline grant to Auckland Citizens
Advice Bureaux Incorporated by $200,000 in the
2019-2021financial years (refer to Attachment A to the agenda report).
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Horopaki
Context
8. Auckland
Citizens Advice Bureaux (ACABx) was established in 2012 to provide
a support structure for funding from council and other bodies and the
development of a strategic direction for the service in the Auckland region.
9. Currently
there are 32 ACABx sites in 18 local board areas (refer Attachment B). There
are no sites in Franklin, Great Barrier and Upper Harbour.
10. Auckland
CABx are members of ACABx and Citizens Advice Bureau New Zealand (CABNZ). The
role of CABNZ is to support membership standards and influence development of
social policies and services at a national level.
11. In 2018, a joint working group consisting of council staff and ACABx
was established to develop a new funding model for Auckland CABx.
Auckland Council funding of CAB
12. In
the 2018/2019 financial year, council granted $1.867
million to ACABx, which distributes funding to CABx to
provide services across the Auckland area.
13. Through
council’s 10-year Budget 2018-2028, an additional one-off grant of
$200,000 was approved to maintain and develop the service in the 2018-2019
financial year (resolution number GB/2018/91).
The ACABx board have distributed $90,300 of this grant to various bureaux
facing financial pressure (Helensville, CAB Auckland City, Māngere).
The remaining funds will be used to test new ways of delivering the service and
develop a regional network provision plan.
14. Council provides accommodation forCABx at minimal cost under
community lease arrangements, which is equivalent to a $641,000 subsidy per
annum. In addition to the funding through ACABx, some local boards also provide
grants to CABx for specific purposes.
15. The
Environment and Community Committee set four conditions for the 2018/2019
financial year operational grant, as shown in Table 1 (resolution number ENV/2018/48).
Table 1:
Funding conditions 2018/2019
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Funding condition
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Progress to date
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A joint
review between Auckland Council and ACABx of the funding model
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· Joint working group established
· Considered what to include in the funding
model
· Agreed a new funding model and transitional
arrangements
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Updated
Strategic Relationship Agreement to include the development of a regional
network provision plan
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· Revised Strategic Relationship Agreement
signed between Auckland Council and ACABx with scoping and timeline for
regional network provision planning to be agreed by June 2019
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Improved
reporting and access to consistent data on the service provided at regional
and site level
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· Council, CABNZ and ACABx jointly developed
new report templates for bureaux to provide data and commentary on their
activities
· CABNZ is currently rolling out an improved
database and data collection system (CABNET) which will impact the Quarter
Three/Quarter Four reports for 2018/2019
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Strengthened
and more strategic relationships between local boards and CABx
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· The revised Strategic Relationship Agreement
sets out guidance on the relationship between local boards and CABx
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Tātaritanga me ngā
tohutohu
Analysis and advice
Current funding model
16. The current model allocates the funding received by ACABx to
sub-regional clusters of CABx based on 2013 census population data.
17. The current funding model was implemented by ACABx with support from
council as an interim approach to transition from legacy council funding
to regional funding.
Council staff model
18. In April 2016, the Regional Strategy and Policy Committee resolved
to:
seek
information from staff regarding a review of the service after consultation
with the 21 local boards on the issues raised by the
Māngere-Ōtāhuhu Local Board regarding Auckland Citizens Advice
Bureaux Incorporated funding, to achieve greater equity and fairness, taking
into consideration social issues in local communities across Auckland
(resolution number REG/2016/22).
19. A review of CAB services was undertaken, and council staff developed
a revised funding allocation model using 70 per cent population, 25 per
cent client usage, and five per cent deprivation. This model
responded to the review findings and focused on funding to achieve greater
equity and fairness.
20. This model was not supported by ACABx who strongly objected
to the introduction of client usage as a funding factor.
New model from joint working group
21. The joint working group have developed a new funding model for CABx
using:
· 90
per cent population, using annual Statistics New Zealand population estimates
· 10
per cent deprivation to increase the capacity of CABx to meet the complex needs
of communities with higher levels of deprivation. This will support the
development of new service approaches to increase the access to CAB services
within these communities.
22. ACABx advise
that this model will be difficult to implement at the current funding level as funding will be reduced to CAB in the north, central and
Ōtara. Some CABx are experiencing financial pressure and any
decline in funding would lead to a significant reduction in services.
23. If the annual
grant of $1.867 million is increased by $200,000 per annum, ACABx have
indicated that the new funding model could be implemented without service
reductions if bureaux continue to receive funding at the 2018-2019 level at a
minimum. To further moderate the redistribution impacts of the new funding
model at a bureau level, population-based increases in funding would be capped
at 10 per cent for 2019-2021 financial year.
24. The
application of the new funding model is shown in Table 2 below.
Table 2: New
funding model allocations
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Bureau
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2018/2019 Actual
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New model
(current funding)
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New model (plus
$200,000)
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Percentage difference
between 2018/2019 Actual and New model plus $200,000
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Helensville
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$40,365
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$36,872
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$40,365
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0
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Hibiscus
Coast
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$51,712
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$58,713
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$58,920
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14
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Wellsford
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$38,298
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$36,770
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$38,298
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0
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CAB North Shore
(5 sites)
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$309,030
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$250,153
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$309,030
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0
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WaiCAB (5
sites)
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$298,746
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$300,401
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$344,999
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15
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CABAC (10
sites)
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$499,901
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$487,965
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$553,597
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11
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Māngere
(3 sites)
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$169,849
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$179,162
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$190,494
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12
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Manurewa (2
sites)
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$82,775
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$114,454
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$118.217
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43
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Ōtara
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$86,927
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$78,215
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$86,927
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0
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Pakuranga (2
sites)
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$98,662
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$109,188
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$109,262
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11
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Papakura
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$86,471
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$110,844
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$112,628
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30
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Total
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$1,762,737
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$1,762,737
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$1,962,737
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11
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Note: Based on 2018-2019 funding allocated. Excludes
provision for premises lease payments to Auckland Council and ACABx fee (2 per
cent)
25. The new
funding model developed by the joint working group is the preferred model for
implementation in 2019-2021. During this period, the regional
network provision plan will be developed, and council’s level of
investment can be confirmed and provided for as part of the 10-year Budget
2021-2031.
26. The new model supports The Auckland Plan 2050 outcome,
‘Belonging and
Participation’:
· Focus area two – Accessible services and social and cultural infrastructure
that are responsive in meeting people's evolving needs
· Focus area six – Focusing the
council’s investment to address disparities and serve communities
of greatest need.
27. The
criteria applied to assess the models were developed by the joint working
group. Consideration is given to equity, responsiveness to population growth
and community need. Under the Auckland Plan 2050, adopting an equitable
approach means prioritising the most vulnerable groups and communities to achieve more equitable outcomes. An assessment of
the funding allocation model is shown in Table 3 below.
Table 3: Funding model
assessment
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Criteria
X does not meet
ü partially meets
üüfully meets
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Current model
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Council staff model
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New model from joint
working group
(preferred model)
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Equity
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X
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ü
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üü
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Population
growth
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X
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üü
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üü
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Community
need
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X
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üü
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üü
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Advantages
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ACABx used the current
funding model to transition to regional funding from legacy arrangements
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Uses latest population estimates to reflect future growth
Deprivation factor supports
equity for populations with complex issues and access constraints
Client usage as a proxy
indicator of community need which takes into consideration that service users
do not necessarily just access services in the area they live
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More equitable across
Auckland with population-based funding covering all the region except Great
Barrier Island
Uses latest population
estimates to reflect future growth
Targeted deprivation
factor (NZDep2013, deciles 8-10) supports equity
for populations with complex issues and access constraints
Provides platform for
Auckland Council and ACABx to work together to develop a regional network provision plan
Supported by ACABx if
additional funding is retained
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Disadvantages
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The legacy
cluster funding arrangements do not provide for service development
Relies on 2013
census data
Does not target
funding for populations with complex issues and access constraints
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Not supported by ACABx
because client usage data does not consider the range of complexity in
interactions from simple information requests to lengthy interviews
Redistribution of bureaux funding within
current funding envelope could lead to service reduction unless alternative
funding is sourced
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Redistribution of bureaux funding within
current funding envelope could lead to service reduction unless alternative
funding is sourced
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28. A comparative
overview of the funding models is provided in Attachment C.
29. ACABx support
the new model conditional on the retention of the additional 2018-2019 one‑off
funding of $200,000 as part of the baseline operational grant. This increased
funding level would ensure that no bureaux would lose funding when the model is
implemented in 2019-2020. Increased funding enables the
inclusion of the Franklin population in the new funding model.
30. ACABx has
indicated that the funding for deprivation will be allocated to bureaux for
initiatives to enhance access to services and to trial the development of new
service models.
31. Staff
support the new model as it starts to address equitable services across
Auckland through population-based funding and targeted deprivation. The model provides a platform for future service
growth and the development of a regional network provision
plan for CAB services.
32. Staff support
the addition of $200,000 to the ACABx baseline grant from 2019-2020 to
implement the new model and extend service funding across the region. All CABx
will receive their current or increased level of funding if council increases
baseline funding by $200,000.
Ngā whakaaweawe me
ngā tirohanga a te rōpū Kaunihera
Council group impacts and views
33. Council staff
from across the business work cooperatively on matters concerning CABx.
Council departments and units that were consulted on the new model and involved
in regional network provision planning include:
· Community Facilities and Community Places –
administration of the leases for CABx premises and facility operation
· Libraries and Information – some CABx are
co-located with libraries
· Service, Strategy and Integration – expertise
in service design and integrating service offers.
Ngā whakaaweawe
ā-rohe me ngā tirohanga a te poari ā-rohe
Local impacts and local board views
34. Local boards
provided input to the 2017 review of CABx services, which has informed the
development of the new funding model. Local boards generally agreed that a
higher level of funding was required to maintain services, and that any funding
model needed to consider the area’s demographics and other needs in
addition to overall population.
35. Overall,
local boards reported that they had a good relationship with CABx, that they
were providing valuable, wide-ranging services to the community, and that there
was room to improve reporting, service responsiveness and equity of funding.
36. Feedback
is sought from the local board on the proposed new funding model and the
retention of the additional $200,000 to baseline funding of $1.867 million provided to ACABx in 2018-2019.
37. Local board
feedback will be included in the report to the Environment and Community
Committee in May 2019 to approve a new funding model for CAB. The report will
also reflect views on the implementation of the new model from ACABx
consultation with bureaux.
Tauākī whakaaweawe
Māori
Māori impact statement
38. CABx services
are available to all, and there is currently limited targeting of services to
groups, including Māori.
39. Staff and
ACABx have worked together on development of the new model and no specific
engagement with Māori was undertaken.
Ngā ritenga
ā-pūtea
Financial implications
40. It is
recommended that the additional $200,000 is retained in the ACABx baseline
grant, bringing the annual total to $2.067 million in 2019-2021. This excludes
any consumer price index adjustment.
41. The
Māngere-Ōtāhuhu Local Board has provided funding from 2015-2018
to Māngere CAB to operate a CAB agency in Ōtāhuhu. Reliance on
the local board funding would reduce under the new model, as the Māngere
CAB would receive increased funding of 12 per cent if the $200,000 is retained
in the ACABx baseline grant.
Ngā raru tūpono me
ngā whakamaurutanga
Risks and mitigations
42. In applying the new model
without the retention of the additional $200,000, funding to the following
bureaux would decline:
· Helensville (-9 per cent)
· Wellsford
(-4 per cent)
· CAB
North Shore (-19 per cent)
· CAB
Auckland City (-2 per cent)
· Ōtara
(-10 per cent).
43. If the grant
is increased by $200,000 per annum, no CABx face a reduction in funding.
44. There is a
risk of reduction in CAB services in some communities if funding declines to
CABx. To mitigate this risk, it is recommended that the additional $200,000 is
retained.
Ngā koringa ā-muri
Next steps
45. Local board
feedback will be included in a report to the Environment
and Community Committee in May 2019 to approve a funding model.
46. Staff will
work with ACABx to scope a regional network provision plan project
by June 2019. The plan development will involve bureaux
and other stakeholders in setting the direction for the CABx service from 2021
onwards.
Ngā tāpirihanga
Attachments
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No.
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Title
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Page
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a⇩ 
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Local board feedback template
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13
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b⇩
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Map of bureaux locations by local board
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15
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c⇩ 
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Comparative overview of funding models
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17
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Ngā kaihaina
Signatories
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Authors
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Sibyl Mandow - Advisor - ACE
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Authorisers
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Graham Bodman - General Manager Arts, Community and
Events
Louise Mason - GM Local Board Services
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