1.�What is Cambridge Co-operative Development Agency?

Cambridge CDA is an autonomous, not for profit company limited by guarantee. Membership is open to co-operative organisations2 in Cambridge and to individuals with an interest in co-operative activity. A voluntary board elected by the membership at the AGM manages the day to day running of the organisation. The CDA has one employee paid for by grant funding which in the main comes from the City Council Economic Policy Department regularly and from other sources such as the European Social Fund and other local authorities on a project by project basis.

CCDA seeks to promote the co-op movement locally, regionally and nationally. It is a member of ICOM (Industrial and Common ownership Movement) who represent Co-ops nationally, a member of ERCC (Eastern Region Co-op Council) representing co-ops at a regional level and is affiliated to Cambridge Council for Voluntary Service which brings it into connection with a wide range of voluntary activity which thrives in and around Cambridge.

CCDA provides a unique service in Cambridgeshire. Since its establishment in 1984, CCDA has developed the resources and experience to meet the particular demands of setting up co-operative businesses in Cambridgeshire and works alongside local, regional and national network partners to promote economic development in the Cambridge area�

2. Nature of the Business

Co-operative enterprise provides a core model on which development can take place across a broad range of activities. The co-operative model, based on the principles of co-operation and using legally recognised structures[1] creates an organisation that is democratic, sustainable and locally placed, and that enables its members to find shared solutions to their common problem.

The co-operative model is able to provide multi dimensional solutions: for example at the same time as providing employment, a worker co-operative presents an opportunity for its members to improve self esteem through control of their work place, to develop an understanding of the democratic process and to participate in a broader co-operative network. As a locally owned business without long distance shareholders, it can help to retain money in the local economy and can therefore contribute to the long-term sustainability of the local community. The same multi- level processes can be identified in all forms of co-operative enterprise.

3.�CCDA Board Members

John Chestney: Castle Project Print Finishers (Social Firm Co-operative)
Phil Cr�me: Prospects Trust (Emerging Social Firm)
Peter Mottershead: The Co-operative Party
Ila Chandavarkar: Individual Member
Franc Johnson: Individual member
Pat Bernard: Hyperion Auctions (Co-operative)
Sylvia Gainsborough: Individual Member� (Retired 17.1.01)
Adrian Ashton:� Daily Bread (Social Firm Co-operative), Aspire.� (Joined 17.1.01)

4.���� CCDA Staff

The Development Officer�s role is to provided advice on co-operative development, first enquiry information, co-operative training and liaison with external bodies, project management, fundraising and office administration.� In 2000/2001 CCDA employed a development worker, Sam Dyer for 12 hours a week at NJC pay scale 29. Sam brought previous administrative experience as Cambridge City�s Local Agenda 21 Officer to the role and succeeded in drawing additional funds to CCDA at a time when the agency needed to expand while core funding remained at a consistent level.

In January 2001 Sam took maternity leave and handed over the Officer�s role to Tim Cumine, who brought previous co-operative administration experience as a current member and former employee of Argyle Street Housing Co-op, Treasurer of a rural housing co-operative and founder member of Shebeen Arts & Music, a local co-operative.

b.�Business Counsellor

1.�Core Services

CCDA offered a drop in service for first enquirers during 1999/2000. This service included answering queries, providing initial co-operative and business training, assistance in compiling business plans and providing ongoing support as well as offering one to one advice and guidance. The CCDA provided first enquiry advice to 131 people in 2000 / 2001.

Ongoing support has also been given by CCDA to established member co-operatives in a variety of ways from advice on policy development to advice on model rules. This includes specialist advice to social firms and credit unions.

CCDA has provided access, via its membership with ICOM, to specialist legal advice, services and loans for those who would otherwise be excluded.

Throughout this period, within the 12 hours of funded staff time, CCDA offered a drop in service for those requiring its services between 1pm and 5pm each Wednesday.

Shooting Star Co-operative was successfully registered as a workers co-op by CCDA in the first half of 2000/2001. This is a not for profit organisation working with schools in the city to promote educational film making with children. CCDA were able to fund registration fees out of the small loans fund as well as offer advice and guidance in setting up the co-operative.

At March 2001, CCDA was also working with the following groups to work towards the establishment of new co-operatives in the area:

• Sculptural furniture project - social firm proposal

  CCDA was approached for business planning support by a group of 3 engineers who intend to establish a workshop producing high quality sculptural furniture.� All were qualified engineers, one was already working to produce one-off sculptural pieces, while the other two had in recent years been running a website design company.� One of these had a solid experience of designing and co-ordinating art and craft activities for people with learning difficulties and had envisioned the proposed workshop as a place for encouraging challenging and meaningful training for those who would normally experience either complete exclusion from the labour market or occupational therapy far from challenging and far below their full capacity.

  CCDA met with the group on two occasions, discussing their plans and challenges and reviewing their business plan to date.� The group deliberated over whether to begin their project with the supported training aspect or whether to establish production first, and eventually decided that they would need to generate sufficient funds from their current enterprise before progressing further.� It is hoped that they will seek the support of CCDA as and when they are ready to take their plans further.

• Internet based florists network - co-operative consortium

  CCDA was approached by a Cambridgeshire based florist, representing some 30 other independent florists who found themselves struggling to compete as independent suppliers of cut flowers with the large distribution networks such as Interflora.� An informal telephone network existed which saw effective co-operation between florists in different parts of the country to supply cut flowers on the same basis as Interflora et al. An initial interview with the contact offered support for the idea of establishing a co-operative consortium, by which independent traders would present a unified internet-based sales point.

• Care co-operative

  CCDA was approached by a Cambridgeshire County Councillor with an interest in the development of care co-operatives, whereby professional and non-professional carers along with clients establish contracts with local authorities to provide care arrangements.� Care Co-operatives have proved, in other pilot projects, to suit working needs of carers and care needs of clients better than agency brokered arrangements.� CCDA provided the contact with support for the idea and reassurance that it was a workable one and was to remain in touch, following the contact�s visits to existing projects elsewhere in the country.

• Musical performances and workshops - co-operative

  A group of musicians attended CCDA�s business planning workshop in Ely, (See � Communities, Companies and Co-operation� conference below) intending to establish a musician�s co-operative, providing performances and workshops to the general public, schools, colleges and community groups.� They had been engaged to provide musical performance for the conference and, since attending the business planning workshop, have entered into a relationship with CCDA to receive co-operative development support, working towards the registration of a new workers co-operative. While two members of the ensemble were in part time employment, the third had been unemployed for several months previously.� While all three had worked in co-operative situations previously, they were seeking assistance with development of a business plan and choice of appropriate business structure.

b.�Office move

The office move also gave an opportunity to review and rationalise much of CCDA�s library and files.

Having depended on a shared computer at Llandaff chambers, CCDA invested in a new machine for the new office, which in turn has engendered a review of mailing lists, record keeping systems and publicity materials.� With its own connection to the internet, CCDA can now benefit from electronic communication and networking opportunities to the full.

While Norfolk Street is not as central as Llandaff Chambers, it is still within easy walking distance of bus and train services and has the benefit of inexpensive on-street parking for visitors making use of CCDA�s services.�

2.�Project Work

Throughout the year CCDA continued to work in partnership with Wisbech Town Council, Fenland District Council (FDC), Cambs County Council, ACRE (and the Fresh Food for Cambs project) in developing community enterprise in the Fenland Town of Wisbech.� The project was funded by Eastern Region Development Funds, through FDC�s Local Agenda 21 Officer focussing on the development of community composting, food growing and allotment forestry on under-used allotment sites in the Town.

As this year closed, CCDA was preparing a capacity building event at a newly established community house in Wisbech�s North Ward, an area challenged greatly by the social difficulties which have accompanied the town�s decline as a major port. The event was designed to involve local residents in the establishment of low maintenance growing beds at the community house, in readiness for the local urban regeneration project�s development of adjacent allotments as an extension to the community garden.

This project was due to end in June 2001, yet had established funding for further work in this area. (see ii below)

b.��WREN funded community composting in Wisbech

Early in the Wisbech Allotment Enterprise Project it was recognised that further funds would be required to see community composting facilities established in Wisbech and CCDA successfully bid for �27,000 of landfill tax credits though Waste Recycling Environmental (WREN).

This following project is to establish community composting on an allotment site in the town, supported by Wisbech Town Council and the doorstep collection of green waste, in partnership with Fenland District Council, along with feasibility studies conducted for both.

c. ESF (European Social Fund) funded training needs research

CCDA completed research into the training needs of local co-operatives and social firms during this year.� In identifying relevant enterprises, this work also generated a directory of co-ops and social firms in the area.

Questionnaires were completed by a number of Small and Medium Sized firms (SMEs) and provided the substance for two research documents dealing separately with co-operatives and social firms.� Later in the year, the findings of this research generated a further bid to ESF for funds, which is to involve CCDA in the task of encouraging local co-ops to take a planned approach to their training needs.

d.�ESF (European Social Fund) funded training

In October 2000 and again in March 2001, CCDA applied for and, on second submission of its bid, was successful in securing �10,790 of funds to deliver training and capacity building measures to co-operatives and social firms in the area.� This work follows previous ESF funded research project to identify these training needs.�

e.�Trade Fair

Following the success of the 1st Cooperative Trade Fair in 1999 a second was held in 2000. This formed part of a partnership project with UPSTART, a workers co-operative promoting co-ops at a national level and Sustainable City, The City Councils LA21 project.

f.�Publicity Review

CCDA received a grant of �500 from the City Council to produce publicity materials. While this work was expected to be completed by end of year (March 2001), the office move and other time constraints have seen this work progress piece-meal, yet consistently.� By the end of March 2001, a new logo had been devised, based on a previous one, and a sheet giving general information about co-operative structures and principles had been prepared.� This was first �launched� at the following conference.

g.��Communities, Companies and Co-operation� conference

Held in March 2001, at the Maltings in Ely, in partnership with Cambridgeshire ACRE, COVER, the Co-operative Group and Business in the Community, CCDA organised a conference to encourage co-operation between the social economy and commercial companies.� Focussing on encouraging private firms to understand the ethical dimension which they must have in order to appeal to the social economy and in turn encouraging the voluntary sector to make use of partnerships with business, the conference drew over 100 delegates and was widely praised.

The conference was chaired by Cllr Ruth Bagnell, Labour Group Leader of Cambridge City Council and presented speakers and workshop leaders from Business in the Community, Cambridge Building Society, Papworth Trust and the National Council for Voluntary Organisations, amongst others.� CCDA�s Pat Bernard led a workshop in business planning, attended by 28 delegates, using co-operative ventures as case studies.

Narinda, a co-operative providing catering services, supplied lunch to the conference, Woodworks, a musical ensemble with whom CCDA is working to establish a musician�s co-operative provided post lunch entertainment to the conference, and other co-ops and social firms were represented there (Daily Bread, Opportunities Without Limits and Argyle Street Housing Co-op).

3.�Partnership and networking

C.� Accounts Narrative

1.�� Balance sheet (see Appendix 3)

i. Fixed Assets - With the adoption of new office premises, CCDA purchased its own computer and printer at the start of 2001

ii.�Debtors - While one significant loan for �4138.93, was under consideration of being written off, the business having folded after considerable support from CCDA in its development stages, two remaining loan arrangements were being duly honoured with regular monthly repayments. Debts borne by CCDA during the year thus reduced by �950.

iii. Reserves - While CCDA�s current core funding from Cambridge City Council encourages it to operate within the bounds of the city, CCDA�s own constitution aims to provide services to the County.� A fund donated by Delta-T Devices Ltd serves to provide development funds to support CCDA�s work outside of Cambridge City.

2.�Profit & Loss Account (see Appendix 4)

i.�Income - The year saw a significant increase in CCDA�s funding and expenditure as it widened its operations to take on development work in the Fenland town of Wisbech and began to benefit from its newly built capacity to manage ESF funding.� Cambridge City Council also increased its core funding from �3,600 to �6,000.

ii.�Expenditure

• Staff and Rent - With increased funding CCDA was able to increase the hours worked by its Development Officer from 7 to 12 per week.� Project work in Wisbech also required the services of an environmental consultant (Bryn Thomas, Ecological Design Consultants) to assist with developing community composting plans.� Increased funding also led to renting additional time at the shared offices in Llandaff Chambers.� Budgets such as Petty Cash, Insurance, Stock Written Off, Stationery and Rates were drawn on more during this year largely due to the office move.�

• Publicity - costs associated with September 2000 Trade Fair

• Project work - Wisbech Allotment Enterprise Project and ESF - Monies for these projects rolled out as well as in.� Significant costs of the work in Wisbech had yet to be claimed from Fenland District Council (approximately �4,000) as the year ended and will appear as additional income in the following year�s accounts.

D. Summary

Appendix 1

What does it mean to be a co-operative? - Co-op principles

Values

Principles

The co-operative principles are guidelines by which co-ops put their values into practice.

1. Voluntary and open membership

   Co-operatives are voluntary organisations, open to all persons able to use their services and willing to accept the responsibilities of membership, without gender, social, racial, political, or religious discrimination.

2. Democratic member control

   Co-operatives are democratic organisations controlled by their members, who actively participate in setting their policies and making decisions. Women and men serving as elected representatives are accountable to the membership. In primary co-ops, members have equal voting rights (one member, one vote) and co-ops at other levels are also organised in a democratic manner.

3. Member economic participation

   Members contribute equitably to, and democratically control, the capital of their co-operative. At least part of that capital is usually the common property of the co-operative. Members usually receive limited compensation, if any, on capital subscribed as a condition of membership. Members allocate surpluses for any of the following purposes:

   • developing their co-operative, possibly by setting up reserves
   • benefiting members in proportion to their transactions with the co-operative
   • supporting other activities approved by their membership

4. Autonomy and independence

   Co-operatives are autonomous, self-help organisations controlled by their members. If they enter into agreements with other organisations, including governments, or raise capital from external sources, they do so on terms that ensures democratic control by their members and maintain their co-operative autonomy.

5. Education, training and information

   Co-operatives provide education and training for their members, elected representatives, managers, and employees, so they can contribute effectively to the development of their co-operatives. They inform the general public, particularly young people and opinion leaders, about the nature and benefits of co-operation.

6. Co-operation amongst co-operatives

   Co-operatives serve their members most effectively and strengthen the co-operative movement by working together through local, national, regional, and international structures.

7. Concern for community

   Co-operatives work for the sustainable development of their communities through policies approved by their members.

Appendix 2

What is a social firm?

• A social Firm is a business created for the employment of people with a disability or other disadvantage in the labour market.

• It is a business that uses its market-oriented production of goods and services to pursue its social mission.

• A significant number of its employees will be people with a disability or other disadvantage in the labour market.

• Every worker is paid a market rate wage or salary appropriate to the work whatever their productive capacity.

• Work opportunities should be equal between disadvantaged and non-disadvantaged employees. All employees have the same employment rights and obligations.

What is an "emerging social firm"?

Social co-operatives.

What does a "significant" number of disabled or disadvantaged employees mean in the definition?

Appendix 3 - Balance Sheet 2000-2001

Cambridge CDA Ltd: Balance Sheet as at 31st March 2001

Appendix 4 - Profit and Loss Account 2000-2001

Cambridge CDA Ltd: Trading & Profit & Loss Account for the year ending 31st March 2001

Appendix 5 - Notes to CCDA Accounts 2000-2001

Cambridge CDA Ltd: Notes for the year ending 31st March 2001

1 See Appendix 2 for the current definition of a �social firm�.

2 �co-operative� throughout this report refers to any organisation subscribing to the Co-operative Principles detailed in� Appendix 1

[1] Co-operatives can be registered under the Companies Act, usually as a Co-operative limited by Guarantee, or under the Industrial and Provident Acts as Industrial and Provident Societies. The route chosen will reflect the needs of a particular group wishing to form a co-operative. In either case CCDA uses model rules produced by ICOM ( the national lead body for Co-operative enterprise). CCDA will either make a grant or a loan to pay the registration fee if groups are unable to afford this.