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3.2 Funding Types
The payment schedule (Schedule 2) provides for three types of funding.
Base funding
Funding, including any price adjustments, provided to the organisation for an activity over the three-year period of the service agreement and within the following parameters:
- For block funded programs:
- the minimum amount of annual funding and associated service volume that the organisation will provide over the next three-year period
- the amount can be increased or decreased through the service agreement variation process, for example, as part of growth. Block funded programs are those where payment is not automatically adjusted when there is under/over performance against targets.
- For programs where payment is for actual services:
- the funding based on the target for the next three years that can be reconciled and adjusted periodically, to reflect actual delivery
Base funding can be added to through the service agreement variation process for new services and growth.
Non-base funding
Funding that is neither base nor minor capital funding. It is:
- fixed term funding that is paid over one or more financial years but will be for a period of less than three years (the time limitations can be detailed in Schedule 4 of the service agreement)
- one-off funding that is only applicable to the financial year in which it is paid and is paid as a lump sum.
Minor capital
Funding for the purchase of a physical asset with a value of $3,000 or more.