Tag Archives: social and community enterprises

Developing Devolution with Social Accounting & Audit

I believe that Social Accounting and Audit (SAA) can be a framework for accountability and reporting, which, if used to support public procurement, will enable devolution. Despite the current move towards greater control of purchasing by central government in Westminster, SAA can be a way to make devolution work.

Devolution is commonly understood to be the transfer of functions previously exercised by ministers and the national parliament to a subordinate elected body on a geographical basis.

In Greater Manchester (GM), we have been leading the way. Budgets for health and social care, planning and housing, business support and low carbon technologies have been entrusted to sub-regional level by Government.

Furthermore, ‘social value’ is now enshrined in GM-wide Procurement Policy, and the need to maximise spending power for the benefit of local people – to achieve a social, environmental and economic impact – is recognised as a major way to ‘sweat’ public, private and third sector investment for the common good.

Over 10 years ago, at the New Local Government conference, David Milliband announced, ‘at the local level we need a stronger framework of opportunity and responsibility …. – in fact a double devolution, not just to the Town Hall but beyond, to neighbourhoods and individual citizens’.

The Office of the Third Sector (now Civil Society) was created and local authorities were encouraged to devolve the delivery of local services to local people.

But it didn’t quite happen like that…

What we have in GM isn’t a ‘double devolution’, but it is one where the voluntary, community and social enterprise sector has a strong voice. Words like ‘co-production’, ‘co-design’, ‘asset based approaches’ and ‘reform’ are used to indicate an evolving sense of, ‘we are all in it together’. The delivery isn’t yet devolved to local people.

At the heart of GM devolution is a need to make the local economy sustainable. It is recognised that if this is to work, voluntary, community, social enterprise organisations, neighbourhoods and citizens must be ready and able to take the opportunity and responsibility.  And they must convince Town Halls that they can deliver. Maybe therefore, this is why the double devolution hasn’t really happened?

SAA is not a new concept, having been implemented in various forms and by a wide range of organisations since the 1970s.  But there is a growing number of organisations in GM that have adopted this approach to help them measure their overall impact and quality by integrating the ‘proving – improving – and be accountable’ processes into their day-to-day operations.

SAA accurately describes what an organisation is achieving in economic, social and environmental terms, and allows it to demonstrate to others what its principle purposes are and what it does. It assesses social and community enterprises in a holistic way, incorporating both the views of everyone connected with the organisation and measuring indicators of its success.

The framework also includes independent verification, an audit process whereby the results can be proved to be robust and reliable, which can give confidence to both the organisation and the Town Hall looking to devolve responsibility or place a contract.

One of the main elements of SAA is the comprehensive involvement of an organisation’s stakeholders, and this can prove one of the most important reasons for procuring from the voluntary, community and social enterprise sector.  SAA can demonstrate to health and other commissioners that service users and staff are indeed involved in the planning, operation and management of services from social enterprises.

Unlimited Potential (UP) is a social enterprise providing health and happiness services, which grew up in the Charlestown and Lower Kersal area of Salford.

ultd-potential

Formed by residents participating in a local health task group, and now tackling health issues in partnership with local people, its work includes managing services at two local healthy living centres, health outreach services and work which addresses the specific health and happiness issues of local residents.

UP is very keen to prove its ‘positive impact’ as it develops a sustainable business strategy, and has used social accounting and audit to do this.

UP’s ability to demonstrate the benefits of its work through social accounting and audit, adds ‘value’ to public service commissioners who are provided with evidence of partnership working, involvement of local people in the design and management of services, innovation, responsiveness to local need and local ownership. This has contributed to UP becoming a nationally recognised and respected social enterprise.

SAA can be used to demonstrate individual and collective strengths, prove the sector’s competence as providers of public services, and meeting the challenge of taking local responsibility and citizen led action.

It can help devolution to happen.

Anne Lythgoe, Vice Chair & Treasurer/Finance Director  www.socialauditnetwork.org.uk

Social impact: should we be talking process or product?

I was reminded recently of the story about Jason and his quest for the Golden Fleece.  It is the well-known story of a young man with a goal in mind but in order to achieve that end, he has a long, challenging and arduous journey.   It was an adventure, and throughout the journey Jason grew as a person, became wiser, tackled problems and overcame obstacles.  Although the final product was obtaining a prize, the process involved in trying to attain the prize was equally important.

The lesson learned from this story being…the journey is as important as the destination.  In today’s media parlance – we were on a journey and it was a bit of a rollercoaster but we got through it!

With a bit of a stretch of the imagination it is similar with social impact reporting.  The activities that are done to understand the degree that one’s organisation is making a difference can be as important – if not more important – than the resultant social report.

I have been involved with social accounting and audit for many years.  Working with others, we developed a PROCESS to help organisations collect relevant quantitative and qualitative information relating to their central purpose.  This happens each year in the same way that financial accounts and ‘books’ are kept.

Organisations then bring this information together and report on their performance and on their impact on their stakeholders.   The process is internal to the organisation, owned and controlled by the organisation – thereby empowering it to self-monitor and self-evaluate.

At the end of a year the organisation will produce its own social impact report – this is the PRODUCT.  Thus. the process can be regarded as the ‘journey’ and the social report is the ‘destination’.

With social accounting and audit there is a wee sting in the tail in that the product is externally verified with an audit – again similar to financial annual accounts.  The audit ensures that the final product of the report is valid and a true interpretation of what the organisation has, and has not, achieved during the year.  On passing the audit, a statement is issued – not golden fleece I am afraid – just a signed certificate.

Organisations who regularly keep a set of social accounts and subject them to audit report a number of significant benefits.

The PROCESS helps them understand more clearly what they do to achieve an overall purpose; it forces them to listen to a wide range of different stakeholders; it can keep them on track; it can help them in explaining more clearly what they do; it can be used in organisational record-keeping and learning; it can get people to work together more effectively; and so on.

There are benefits too from producing a report – the PRODUCT.  It can be summarised and distributed widely to stakeholders and the wider public; it can be used to report back to funders; it can be the basis for future planning; it can track change that an organisation has had to deal with; it can be used, in part, to brief outsiders; and so on.

So in social accounting and audit both the PROCESS and the PRODUCT have value.

The Social Audit Network (SAN) was set up to help third sector and community organisation to introduce social accounting and audit into their organisations – and to help them with the process of social accounting as well as producing a social report.

Within SAN we often have the debate – is process more important than the product or vice versa.

I fall more into the process ‘camp’.  For me the final report does have value and I can see the advantages of having the statement endorsing the social accounts.  But it is going through the process that can have a more influential effect on the organisation.  It can help all parts of an organisation not only to take stock on a regular basis but also to reflect on what the organisation is trying to do and how it is doing that.

So many social and community enterprises see a need, respond to it, try and address it, and then get caught up in delivering whatever it is that they do.  Building into the annual organisational cycle a process of data collection and stakeholder engagement to quantify outputs and to understand and to be able to report on outcomes, can be hugely beneficial.  Is the organisation doing the best it can?  Could it be doing something better or more effective? How can it change? How can it plan to improve?

The folk in the product camp stress the value of a report in that it can be used as the central document in an organisation.  It can be used to prove or evidence the work that has been done by the organisation in achieving its ends.

Now if you are a process-type person, you have to be able to accept that processes can be messy.  Through trial and error…and trial again, one learns – and through that learning a deeper understanding begins to emerge.

In researching this blog I came across a website – Prek and K Sharing which deals with working with children to create art.  They argue that in encouraging art the PROCESS of doing is more important than the final PRODUCT.

In the picture below the process is messy and undefined but reflects the learning, while the well-structured neat product is more presentable and more accepted.

process-product

It is the same with social impact reporting.  The process of collecting, collating and making sense of information and opinions can be messy – while the learning from it can be immense.

So which would you choose?  The process (read Jason’s adventurous journey) or the product (read ‘golden fleece’) or both…

Alan Kay – Social Audit Network (SAN) – www.socialauditnetwork.org.uk