The item was introduced by the Area Council Manager, referring to recent work undertaken to measure the Social Return On Investment of Area Council projects, with one being selected per area.
The methodology used assigned a monetary value to an activity or impact using any of 120 financial proxies, which had been arrived at through a body of research. Also taken into account were other factors such as leakage, attribution and deadweight.
For Penistone Area Council the methodology had been applied to the Countryskills Skills project, which had shown a Social Return On Investment of £7.47 for every £1 invested. This compared favourably with projects nationally averaging £5-6.
Members heard how the consultants involved in calculating the figures had commented on the high quality of data collected, and it was noted that officers were considering how this methodology could be used in future commissions.
(i) The content of the report be noted;
(ii) That the implications of Social Return On Investment be considered when planning future commissions.