1.3 Role of Service Agreements
More than 70 per cent of the department's budget is spent funding organisations to deliver services to individuals and community groups in Victoria. A service agreement outlines the requirements of services to be delivered and the associated funding that will be paid to an organisation to deliver the services.
Service agreement schedules
The service agreement consists of five schedules that together reflect and support the department's business context. The five schedules are described below. Schedules 1 and 5 are outlined in more detail in this kit.
Schedule 1: signatory page and the terms and conditions, including the intent of the Partnership Agreement/Protocol.
Schedule 2: a financial summary of the funding to be provided for the services outlined in Schedule 3 and the payment schedule for one financial year of the service agreement.
Schedule 3: outlines services to be provided by the organisation, and the corresponding funding, service performance measures and targets, service standards and guidelines and data collection requirements (for performance reporting and other data reporting).
Schedule 4: enables the department and organisation to:
- document specific issues, concerns and actions about the relationship between the department and organisation
- document specific actions that the organisation and the department will undertake that relate to the overall service agreement
- specify additional requirements relating to individual service plans and activities (detailed in schedule 3).
Schedule 5: details financial accountability and reporting requirements.
