Covid Recovery Programme for Arts Organisations
Overview
Available Funding
The maximum amount of funding available to an eligible organisation under this Programme is £50,000.
Exceptionally, a greater amount of funding may be available to eligible organisations that can demonstrate that the deficit attributable to Covid in the financial year is greater than £50,000 and that the organisation requires funding in excess of that sum to stabilise financially.
In the event that the proposed awards exceed available funding, those organisations with the largest operating deficits will get priority.
Organisations applying for more than £50,000 must make contact with the Arts Council before doing so. Where an organisation fails to consult with the Arts Council in advance of submitting an application for a greater amount, the £50,000 funding limit shall apply.
Funding Priority
The funding priority of the Programme is to remove or reduce operating deficits for the period 1 April 2021 to 31 March 2022.
In the event that the proposed awards exceed available funding, those organisations with the largest operating deficits will get priority.
Eligibility
Applications are welcome from:
1. Constituted organisations/companies whose primary purpose relates to the categories below and which carry out the majority of their work in Northern Ireland.
2. Arts, cultural and community venues’ main use must be for one of the categories below.
3. Arts, culture and community organisations whose primary role is to create, present or support one (or more) of these categories:
- Dance
- Drama
- Literature
- Music and Opera
- Traditional Arts
- Visual Arts
- Performing arts and theatre
- Festivals and cultural events
- Participatory Arts
- Circus, Street Theatre and Carnival
- Comedy
- Cross Art form
- Community Arts
- Craft
Programme Criteria
Applications to the Programme must meet the Programme’s criteria relating to ‘Organisational Purpose’ and ‘Financial Viability’ as detailed below:
Organisational purpose
- Evidence that the organisation’s primary role is to create, present or support one (or more) of the defined categories.
- Evidence of the organisation’s contribution to public good.
Financial viability based on presentation of financial information
- Financial accounts for the year ended 31 March 2020
- Financial accounts for the year ended 31 March 2021
- Management accounts for the period 1 April 2021 to 30 November 2021 (or most recent if available)
- Projected management accounts up to 31 March 2022
- Reserves Policy Statement
- Bank statements from 1 April 2021 to 30 November 2021
- Details of your operating deficit from 1 April 2021 to 30 November 2021 and projected operating deficit from 1 December 2021 to 31 March 2022 because of Covid.
- Any other evidence deemed appropriate to make a reasoned assessment of entitlement, e.g. such as loans
You may submit only one application.
Eligible costs
- You may only apply for your operating deficits for the period 1 April 2021 to 31 March 2022
Available Funding
- The maximum amount of funding normally available to an eligible organisation under this Programme is £50,000.
Only exceptionally should the request for funding under the programme exceed £50,000 the onus is on the applicant to demonstrate how the organisation meets one or more of the ‘exceptional circumstances’ criteria for a higher award:
Exceptional Circumstances
- Your organisation is in financial difficulty, with a risk of (a) closure or (b) loss of jobs or (c) loss of services which would impact on community health or wellbeing.
- Your organisation is of significant strategic importance to the sector or locality and without financial support survival is threatened, and that your loss could cause longer-term damage to sectoral growth and development.
- Where it is prudent to accept a single application on behalf of a number of smaller charitable entities that are an integral part of a larger established organisation, and where financial need is greater than £50,000.
Before large amounts of public funding may be committed, an application for more than £50,000 will be subject to a wider assessment to determine viability, financial resilience, and strategic importance within a balanced sector and explore whether other financial levers are available to the organisation
On behalf of Arts Council NI, the Department for Communities may arrange to provide additional financial expertise to ensure sectoral consistency for larger awards.
Where an organisation fails to consult with the Arts Council in advance of submitting an application for a greater amount, the £50,000 funding limit shall apply.
Calculations of Grant Amount
The amount of grant payable will be anticipated deficit in the financial year 1 April 2021 to 31 March 2022, but only to the extent to which that deficit is attributable to the Covid pandemic. The financial template at Annex A (see their website) must be used to calculate this figure.
- Comparative financial data for the pre-COVID year is required as well as the current financial year 2021-22.
- Organisations shall record their operating deficit on 30 November 2021.
- Evaluating previous operating experience, along with the application of best endeavour, applicants shall make evidence-based financial projections for the four months from 1 December 2021 to 31 March 2022.
- Organisations will need to provide 2019-20 financial data for comparison pre COVID-19
- Where an organisation did not exist for a full year pre COVID-19, calculations will be on the 2021-22 financial data supplied, taking account as appropriate of any partial year figures for 2019-20.
- In making their projections of future income and expenditure, applicants must assume that the relevant Covid related restrictions in force on the day of application remain in place until 31 March 2022.
- Two Office Bearers (trustees, Board Members, Management Committee members, Governors or Directors as appropriate) shall certify the information as complete and accurate.
- The organisation must confirm its final outturn deficit position as soon as practicable after the end of the financial year and where the difference between your projected and actual deficit is more than 10%, you must provide a written explanation.
- The organisation shall retain all evidence used to support the claim for operating deficits must until March 2025. The Department reserves the right to carry out post payment audits to validate the accuracy of the information provided.
The Department for Communities & the Arts Council acknowledge the challenges in making accurate financial outturn projections covering the four months of the year. However, people who hold positions of responsibility within sectoral organisations and their professional advisors must exercise best judgement based on previous operating experience, taking appropriate account of normal seasonal trends that could improve or deteriorate finances.
Treatment of Reserves
The Charity Commission for Northern Ireland defines reserves as the unspent resources or income of an organisation. These may or may not be governed by an explicit reserves policy.
The Department for Communities recognises that it is prudent for organisations to build up and maintain a level or reserves appropriate to the circumstances of the organisation. The Department’s policy is to recognise and encourage good governance such as the creation of appropriate reserves. For that reason, the cost of replenishing reserves run down to fund a Covid-related deficit will be eligible for support under this Programme up to the level equivalent to six months turnover for the organisation or the organisation’s reserves held at 1 April 2021, whichever is less.
This means that the maximum grant available to your organisation will normally be limited to the amount which would restore six months of reserves. It also normally means that if your organisation has projected reserves at 31 March 2022 in excess of six months turnover you should not expect to receive a grant.
If you believe that your organisation has a valid need for holding reserves greater than six months turnover, you must include the reason for this need in your funding application.
Exceptional Circumstances
Only exceptionally should the value of an award under the programme exceed £50,000. In such circumstances, the onus is on the applicant to demonstrate how the organisation meets the above criteria under which a higher award will be considered.