News of BCAT’s collapse will come as no surprise to some; BCATs difficulties go back some years. At the end of 2003, BCAT’s Director resigned after only eight months in post. In 2005 her successor was suspended on full pay for over twelve months. BCAT’s accounts show that almost all their reserves had been spent by March 2005.
During this period, BCAT’s funders, New Deal, raised serious concerns regarding a number of projects managed by the organisation and, in the Spring of 2005, New Deal terminated BCAT’s contract to deliver the Grant Fund due to what John Clark referred to as “concerns about the effectiveness of the management and delivery of the project”.
Earlier this year, New Deal insisted on scaling down funding for BCAT after an evaluation commissioned by BCAT and produced in July 2005, revealed a “crisis of leadership” and stated that:
“The drastic staff turnover, and, in our view, quite inadequate management has meant that these workers have not had the systems in place to direct their work appropriately in relation to the contract, or the administrative systems in place to monitor and record their activity against target.”
Despite these concerns New Deal continued to fund BCAT, although the staff team was scaled down and BCAT was no longer the managing agent for other New Deal funded projects.
‘Robust system’
John Clark told the Messenger that New Deal was aware that they had left £80,000 in BCAT’s bank account after the Grant Fund was taken back in the Spring of 2005. He insisted that New Deal had “a robust system in place to identify irregularities like this”, and that it is normal practice for New Deal not to claw back grants until the project’s audit certificate is produced. However, New Deal waited eighteen months before requesting the money back due to a delayed audit certificate.
At the meeting on 6th December BCAT members will vote on the resolution to wind up BCAT and, if passed, to appoint the administrators. It could be months before it is clear whether the £80,000 from the Small Grant Fund was spent on other things or whether the problems were simply those of cashflow. Questions to individual Trustees reveal differing views regarding the true financial position.
Forum goes on
Meanwhile discussions are underway between New Deal and Burngreave Community Action Forum (BCAF). The collapse of BCAT also raises issues for Fir Vale Forum, which had previously planned to merge with Burngreave Community Action Forum and be supported by the Trust. It is understood that New Deal will fund two members of staff who will be employed by Tinsley Forum to continue the work of the Burngreave Forum.