A $10,000 grant that had to be returned to the Dunedin City Council because the organisation concerned was folding will be reallocated in the next funding round.

Money approved in June for Volunteer South will be redistributed to other groups in the September round of applicants to a community grants pool.

The council’s grants subcommittee decided on Tuesday to add the funding to the pool for the next allocation of grants under $5000, rather than leave the money unspent.

The Otago Daily Times reported Volunteer South decided last month to disband after it got into financial difficulties.

It declined the $10,000 council grant, as the organisation would be winding up.

Council staff told the subcommittee on Tuesday the September community grants round was heavily subscribed.

Volunteer South had also expressed hope the funding would be redirected to volunteer-related work, community partnerships manager Gina Hu’akau said.

“And we think that we’re more likely to do that within the September round of the applications.”

Council staff had earlier considered reallocating money among the June applicants, but thought better of it.

“We couldn’t reconcile an obvious choice,” Ms Hu’akau said.

Cr Andrew Simms asked if staff were aware of any organisations that might fill the gap left by Volunteer South.

Ms Hu’akau said concerns remained regarding co-ordination of volunteers across the city.

“We have had discussions with Volunteer South and there is no organisation that is readily identifiable to fill that gap.”