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Service Agreement Information Kit for Funded Organisations

2.1 Role of Service Agreements

Approximately $2.9 billion of the Department of Health and Human Services budget and approximately $300 million of the Department of Education and Training budget is used to fund organisations to deliver services to individuals and community groups in Victoria through approximately 3000 Service Agreements.

The departments operate on a four year Service Agreement business cycle except for services funded under the Disability Act 2006 (Vic) which have a limit of three years for contracts. The current Service Agreement cycle commenced on 1 July 2015 and ends on 30 June 2019. Further information on the duration of the Service Agreement is provided in Chapter 3.2.

The Service Agreement sets out the key obligations, objectives, rights and responsibilities of the organisation delivering services and the department providing funding to the organisation.

Since 18 March 2013, the Department of Health and Human Services and Department of Education and Training Service Agreement has been aligned to the Victorian Common Funding Agreement. Further information on the Service Agreement's alignment with the Common Funding Agreement can be found in Chapter 1.8.

Similar to the Service Agreement, Statements of Priorities are the key accountability agreements between health services and the Minister for Health. The Service Agreement Information Kit for Funded Organisations only details the terms and conditions of the Service Agreement and does not include Health Services Statements of Priorities.