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Service Agreement Information Kit for Funded Organisations

4.10 Funded Organisation Performance Monitoring Framework

Department of Health and Human Services

Who does this policy apply to?

  • The Funded Organisation Performance Monitoring Framework (the ‘monitoring framework’) applies to organisations funded through a Service Agreement with the Department. 
  • Organisations in scope include non-for-profits, for-profits, universities, local governments, public/private hospitals (for their non-acute services) and consortium arrangements.
  • The Desktop Review and components of the monitoring framework do not apply to hospitals, local governments, organisations funded under the National Disability Insurance Scheme (not currently funded by the department), universities, TAFEs, schools and some specific DET/community participation activities.
  • The Service Agreement Compliance Certification (SACC) does not apply to hospitals.

Policy purpose

  • The monitoring framework is a key instrument to demonstrate accountability for effective and efficient expenditure of public funding by funded organisations for the benefit of service users. It focuses on mitigating risk in relation to sector governance, services and finances while managing the reporting burden.
  • It provides a uniform set of tools and policies for monitoring of organisations funded through a Service Agreement as represented by the Department of Health and Human Services to ensure a transparent and consistent approach to performance monitoring.
  • The Royal Commission into Child Sexual Abuse in Institutional Settings has highlighted the need for an effective oversight of funded services in the areas of governance, service delivery and financial management.
  • The monitoring framework seeks to confirm that funded organisations address key departmental policies and a Service Agreement requirement, which ensures that service users receive quality care and services meet appropriate standards and community expectations.

Legislation and /or regulation

  • Various legislation about legal entity requirements, for example Companies Act; Disability Act 2006; Children Youth and Families Act 2005; Educational and Care Services National Law Act 2010.
  • The Service Agreement’s quality of service delivery clauses says '...all applicable Laws including Laws relating to fire protection, industrial relations and employment, and health, and general safety and taxation.'.

Organisation requirements

  • Understanding the requirements of policies and standards as defined in schedule 1 of the Service Agreement.
  • Providing information requested by the department regarding their performance in relation to Service Agreement targets and compliance to defined policies.
  • Confirm key performance issues with department monitoring staff.
  • Work in collaboration with the department to develop and implement appropriate actions to address key performance issues or service quality risks.
  • Participation in service reviews if required.

Introduction

The departments are required to monitor organisations receiving funding through a Service Agreement. Monitoring is undertaken on an ongoing basis through the collection of information and through the regular engagement between departmental staff and organisations.

The monitoring framework provides an end-to-end process for monitoring funded organisations’ compliance with the Service Agreement. It confirms the key policy and operational requirements to be applied and outlines a common set of tools to assess an organisation’s performance, ensuring all funded organisations across the state will be engaged in a consistent manner and assessed on defined key risk areas.

The monitoring framework has the following objectives:

  • ensures that Service Agreement monitoring reflects community expectations about client safety and wellbeing
  • promotes greater collaboration between government and funded organisations in the identification and management of risk
  • fosters greater understanding in funded organisations of their accountabilities under the agreement
  • provides improved transparency, efficiency and consistency in monitoring processes and responses to risk and performance issues
  • provides improved access for monitoring staff to funded organisation performance information
  • embeds key Departmental policies in monitoring processes and systems
  • prioritises monitoring resources to ensure issues in funded organisations that pose the greatest risk are addressed first
  • improves reporting and analysis of funded organisation performance to inform service planning, sector capacity building initiatives, staff training and continuous improvement of systems and monitoring tools
  • reduces administrative burdens for Department staff and funded organisations.

Scope of the monitoring framework

The monitoring framework applies to organisations funded through a Service Agreement with the Department of Health and Human Services or the Department of Education and Training.

The Department of Education and Training (DET) will advise organisations (in receipt of DET funding) of the commencement date for the use of the new monitoring tools and processes.

Organisations in scope include non-for-profits, for-profits, universities, local governments, public/private hospitals (for their non-acute services) and consortium arrangement.

The Desktop Review and components of the monitoring framework do not apply to hospitals, local governments, organisations funded under the National Disability Insurance Scheme (not currently funded by the department), universities, TAFEs, schools and some specific DET/community participation activities.

The Service Agreement Compliance Certification (SACC) does not apply to hospitals.

The department and funded organisations have joint responsibility to detect issues and problems that may impact on service user safety and wellbeing and the ongoing provision of quality and sustainable services. In the course of administering the FOPMF, departmental monitoring staff may become aware of an allegation of fraud or corruption within an organisation. Where this occurs, departmental monitoring staff are to advise the DHHS Corporate Integrity Unit.  The DHHS Corporate Integrity Unit will work with monitoring staff to make an assessment of the identified risk and determine next steps. Organisations  should seek advice from the DHHS Corporate Integrity Unit about the allegation of fraud or corruption even if the organisation is managing the situation internally.

Components of the monitoring framework

The monitoring framework consists of three components involving the use of specific monitoring tools and processes to assess organisations’ performance against the Service Agreement requirements. The components are:

Service Agreement Monitoring – undertaken on an ongoing basis through the collection of information and regular engagement between departmental staff and organisations.

Monitoring is focused on assessing key risk areas related to governance, financial management and service delivery. It involves evidence gathering and the tracking and documenting of an organisation’s outcomes and achievements. This monitoring is core to determining an organisation’s capacity to deliver service user safety and wellbeing and service quality and innovation.

Risk assessment of identified performance issues – an assessment undertaken by departmental staff using risk assessment guidelines to assess the severity of any identified performance issues. This process supports the Department and funded organisations to consistently determine the level of risk and develop effective actions for remediation.

Responses to performance issues – where performance issues have been identified through Service Agreement monitoring departmental staff and organisations will work through how it can be managed and remediated.  Monitoring staff will respond to performance issues with remedial actions or a service review.

In rare cases there may be serious allegations or evidence that a funded organisation has significantly breached the Service Agreement. A Service Review will be undertaken by the Department to determine if remedial actions can be put in place or if the Department needs to take other actions to ensure the safety and wellbeing of service users and provision of quality services.

Key tools

The following tools are used by departmental staff to support consistent monitoring of funded organisations:

Service Agreement Monitoring Checklist is used throughout the year to ensure evidence gathering and discussions with funded organisations address the requirements of the Service Agreement and have a focus on the key risk areas. There are two minimum monitoring checklists used by department monitoring staff; the organisation compliance checklist (used by Monitoring Coordinators or Agreement Leads) and the service plan checklist (used by Service Plan Leads).

Desktop Review provides an annual assessment of whole of funded organisation performance from information collected throughout the year. The Desktop Review Report is shared with funded organisations.

Service Agreement Compliance Certification requires funded organisations to certify to the department that they are compliant with the requirements of defined clause and policies outlined in the Service Agreement.

Specialist Checklists are used by departmental staff in the monitoring the performance of funded organisation’s in addressing defined policy/program requirements of the Service Agreement including children and young people in residential care; and people with disabilities living in accommodation.

For further information

The Funded Organisation Performance Monitoring Framework: Overview for the funding sector - Information for organisations funded through Service Agreements booklet (Word 173 KB, opens in a new window) provides further guidance on key components and process of the framework.

Email: Monitoring.Framework.Helpdesk@dhhs.vic.gov.au

Department of Education and Training

Introduction

The Funded Organisation Performance Monitoring Framework (the Framework) updates the Monitoring Framework for health, housing and community service sectors (2005) by providing a set of new tools and processes for monitoring organisations funded through a Service Agreement.

The Framework is a critical part of the Department of Education and Training’s (DET) quality assurance approach to ensure that service users receive quality care and services meet appropriate standards and community expectations.

The Framework provides DET staff with greater clarity and direction in monitoring activities. Staff across DET use a common set of tools to assess an organisation’s performance, ensuring all funded organisations across the state will be engaged in a consistent manner and assessed on defined key risk areas.

Scope of the Monitoring Framework

The Framework applies to organisations funded through a Service Agreement with DET or Department of Health and Human Services.

DET will advise organisations receiving DET funding of the commencement date for the use of the revised monitoring tools and processes.

Components of the Framework

The Framework consists of three components involving the use of specific monitoring tools and processes to assess organisations’ performance against the Service Agreement requirements. The components are:

Service Agreement Monitoring – undertaken on an ongoing basis through the collection of information and regular engagement between departmental staff and organisations.

Monitoring is focused on assessing key risk areas related to governance, financial management and service delivery. It involves evidence gathering and the tracking and documenting of an organisation’s outcomes and achievements. This monitoring is core to determining an organisation’s capacity to deliver service user safety and wellbeing and service quality and innovation.

Risk assessment of identified performance issues – an assessment undertaken by departmental staff using risk assessment guidelines to assess the severity of any identified performance issues. This process supports DET and funded organisations to consistently determine the level of risk and develop effective actions for remediation.

Responses to performance issues – Where a performance issue has been identified through Service Agreement monitoring, departmental staff and organisations are to work through how the issue can be managed and remediated. Remedial actions are to be put in place to support organisations in addressing the requirements of the Service Agreement.

Where there are more significant issues a Service Review would be undertaken. A Service Review provides an opportunity for DET and the funded organisation to jointly raise issues and determine an action plan. A third party may be engaged in these reviews.

In rare cases there may be serious allegations or evidence that a funded organisation has significantly breached the Service Agreement. A Service Review will be undertaken by DET to determine if remedial actions can be put in place or if the Department needs to take other actions to ensure the safety and wellbeing of service users and provision of quality services.

Key tools

The following tools are used by departmental staff to support consistent monitoring of funded organisations:

Service Agreement Monitoring Checklist is used throughout the year to ensure evidence gathering and discussions with funded organisations address the requirements of the Service Agreement and have a focus on the key risk areas.

Specialist Checklists are used to review how a funded organisation is meeting defined policy/program requirements viewed as critical in ensuring service quality. The finalised Residential Services Monitoring Checklist will be available 1 January 2016. It was trialled in late 2014 in consultation with the children, youth and families sector.

Desktop Review provides an annual assessment of whole of funded organisation performance from information collected throughout the year. The Desktop Review Report is shared with funded organisations.

For further information

The Funded Organisation Performance Monitoring Framework: Overview for the funding sector - Information for organisations funded through Service Agreements booklet (Word 173 KB, opens in a new window) provides further guidance on key components and process of the framework.

Email: MonitoringFramework.Helpdesk@dhhs.vic.gov.au