Sustainable Funding and Contracting

with the Not-For-Profit Sector

Rebecca Brown

Department of the Premier and Cabinet

18 May 2011

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Overview

• Building a mature relationship with the not-for-profit sector.

• Sustainable funding for services delivered by the not-for-profit sector.

• Reforms to the contracting arrangements with the not-for-profit sector.

• Next steps.2

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• Meeting the needs of the more disadvantaged and vulnerable in our community.

• Recognising the important role of the not-for-profit sector in working closely and meeting those needs.

• Increasingly personalised services designed to meet the needs of individuals and improve outcomes.

• Public sector to act increasingly as a facilitator of services rather than direct provider.

• A genuine and collaborative partnership between the Government, and public and not-for-profit sectors.

Improving Services and Support for Western Australians

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Working with the Not-for-Profit Sector

• Focus on building a more sustainable not-for-profit sector and growing capacity over time.

• A more mature funding and contracting relationship between the public and not-for-profit sectors.

• Supporting a not-for-profit sector which is flexible and adaptive in meeting community needs.

• Shift in focus away from contracting inputs and prescribing service models towards the achievement of outcomes.

• Reduced administrative burden and red tape for the not-for-profit-sector.

Sustainable Funding and Contracting with the Not-For-Profit sector

• Package of key reforms to cement a genuine partnership between Government, the public sector and not-for-profit sector.

• Focused on reducing the administrative burden.

• Support a not-for-profit sector which is flexible and adaptive in meeting community needs.

• Pay a fair and appropriate price for services purchased from not-for-profit sector organisations.

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Community Sector Funding

• Need to address the shortfall to ensure sustainability of the not-for-profit sector over time.

• Partnership Forum provided advice to the Premier on the shortfall late last year.

• Proposed two stage approach:

1. Upfront flat rate price adjustment for all contracts (Component I). 2. A second increase to be applied as contracts expire (or earlier for

high risk contracts), linked to roll-out of procurement reforms (Component II).

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Draft Delivering Community Services in Partnership Policy & Associated Reforms

• Overarching policy framework to guide the procurement reforms.

• Policy designed through extensive collaboration with the public and not-for-profit sectors reflecting ongoing partnership principles.

• Policy outlines the range of funding and contracting arrangements available and provides guidance on when each should be used.

• Standard contract templates, conditions and reporting frameworks for both sectors – plus, ‘how to’ practice guides.

• Oversight and governance for policy implementation rests with the Partnership Forum.

• Day-to-day policy and practice support from the Department of Finance, Government Procurement.

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What does this mean for not-for-profit sector organisations?

• Building the capacity of the not-for-profit sector to understand and tender the sustainable cost of services delivered.

• Reduced administrative burden through streamlined pre-qualification arrangements and reporting arrangements.

• Greater capacity to contribute alternative service delivery models based on the sector’s understanding of community needs.

• More clarity around the nature of the funding and contracting arrangements with government i.e. grants vs service agreements.

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Implementation Approach

• Guidance and oversight by the Partnership Forum.

• Strong engagement and involvement of public sector agencies and not-for-profit sector around the planning and roll-out of these reforms.

• Ongoing education, training, support and oversight by Dept of Finance – Government Procurement.

• Current focus on agency preparedness for new contracting arrangements from 2011-12.