Skip to content
State Government of Victoria logo
Service Agreement Information Kit for Funded Organisations

5.2.1 Funding summary and funding types

Funding summary

The funding summary in schedule 2 of the Service Agreement lists the total annual funding an organisation is to receive for each service it delivers. This funding information is provided for each applicable financial year of the Service Agreement.

Funding and payment amounts in schedule 2 are exclusive of Goods and Services Tax (GST). Where GST is payable, it will be added at the time each payment is made.

Organisations can view details of Service Agreement payments via the Invoices tab in the Service Agreement Module on the Funded Agency Channel.

Projected funding for up to a four year period is also available from the Service Agreement Module on the Funded Agency Channel. Authorised organisation staff can view and download this information. There are also reports available on Funded Agency Channel (My Agency). Where funding is based on a unit price, users will see information about the price, number of units and the total funding. Funding that is not based on a unit price, often called block-funding, is also shown.

Funding types 

Ongoing funding

Ongoing funding, sometimes referred to as recurrent or base funding, is funding provided to the organisation on an ongoing basis, subject to the satisfactory delivery of services. Ongoing funding may be changed via negotiation and a variation to the Service Agreement or via adjustments to the Service Agreement. Ongoing funding is subject to the standard clauses regarding suspension (clause 12), cessation (clause 13) and termination (clause 14).

Fixed term funding

Fixed term or non-recurrent funding is where funding is for a specified period. It may be paid as a lump sum or over multiple payment dates and financial years for the period services are to be provided. Fixed term funding is subject to the standard clauses regarding suspension (clause 12), cessation (clause 13) and termination (clause 14).

Minor capital funding

Minor capital funding refers to funding specifically for the purchase of a physical asset. These amounts are normally paid as a lump sum.

The Department of Education and Training has a specific capital grant for early childhood facilities worth $300,000 or less. Specific clauses on the Early Childhood Facilities Grant are included in clause 27 in Department of Education and Training's Service Agreement.

Prior Year Adjustment

Funding adjustments that relate to services in a previous financial year are shown in schedule 2 as Prior Year Adjustments. These can be both positive (payment for services provided in a previous year) or negative (where the department is recouping overpayments that relate to services in a previous financial year).