Output Funding. QCOSS Conference August 2011

Transcription

1 Output Funding QCOSS Conference August 2011

2 Output Funding What is Output Funding? Why is it being introduced? Who does it apply to? Output measures How is it being rolled out? When is it happening?

3 What is Output Funding? Types of Funding Governments have traditionally funded services on an inputs basis, that is, costs were itemised to build up a budget, which was then acquitted against. Output funding recognises that a bundle of costs make up the cost of service provision and funding is provided on the basis of a unit of service. Outcome funding recognises the benefits received.

4 What is an Output? An output is a product or a service generated from using resources Service providers transform resources (inputs) into services (outputs) and the impact of these outputs on individuals, groups and the community are the outcomes of the service

5 Why is it being introduced? Qld Audit Office Report 2007 Service Delivery Commission Report 2007 Qld Compact 2009 Red Tape Reduction Initiative 2009 Machinery of Government changes 2009 Productivity Commission 2010 Sector feedback

6 Why is it being introduced? Called for a more robust approach to funding NGOs Required the development and introduction of efficiency and effectiveness measures Required a reduction of administrative duplication, compliance costs, unnecessarily prescriptive funding agreements, streamlined funding Improved sector capacity and sustainability Improved accountability for public funds New Department of Communities strategic objective: A stronger service system that delivers better value

7 Why is it being introduced? Changing relationships between NGOs and government Productivity Commission commented that the relationship between government and NGOs is about reporting and compliance which is not very productive and not very business like. More business-like relationships require goodwill and trust and are about achieving goals, effectively delivering a service and being accountable.

8 Why is it being introduced? Part of a suite of reforms currently underway to better support the relationship between government and NGOs Common Service Agreement Harmonising quality standards Output funding and reporting Common Funding Legislation Review of performance measures Review of contract management arrangements

9 Why is it being introduced? The size and importance of the industry is increasing: Community Services and Health sector is the third largest employer in Queensland Growth of 6% in last 2-3 years In the department provided nearly $1.6B to over 1,600 non-government organisations to deliver community services

10 Benefits Greater clarity of what services organisations are funded to deliver More transparent allocation of funds Greater flexibility in budgeting and financial management Reduced budget line items Reduced acquittal requirements Greater understanding of the costs of doing business Enables knowing how much and what kinds of services are being delivered Will better inform planning, influencing and investment decisions

11 Who does it apply to? All funding provided by the Department of Communities is moving to Output Funding including: Disability Services Child Safety Services Housing and Homelessness Services Community Mental Health Services Aboriginal and Torres Strait Islander Services All other funding provided under the Community Services Act 2007 including Youth, Seniors, Women, Family Support, Domestic Violence, etc.

12 Output Measures The Department has developed an Outputs Catalogue which defines the outputs the department funds Outputs are mapped to National Data Sets including: National Classification for Community Services (NCCS) Disability Services National Minimum Data Set (NMDS) will enable national comparisons Contains the specific measures for each output Contains the counting rules for the measures

13 Output Measures Each output has an associated output measure Allows service providers to clearly indicate the quantity of outputs they deliver Types of output measures v Hours v Places v Milestones achieved on agreed plan v Meals v Kilos of food delivered

14 Outputs Catalogue - examples A Counselling, other Measure: Hours Activities that help service users to assess their circumstances and relationships, and to make choices, decisions and plans for the future. Help is provided by discussions with trained counsellors in individual and group sessions. A Group homes and other small community-based cared accommodation Measure: Places Group homes provide combined accommodation and community-based residential support to people in a residential setting. Usually no more than six service users are located in any one house, although this can vary. Group homes are staffed up to 24 hours a day. A Community/community centre-based development and support Measure: Hours; milestones achieved on agreed plan Developing groups and activities focused on enhancing simultaneously the personal and community support and development capacities of people living within a defined geographical community.

15 Counting hours with individuals Count this time as part of hours of service/output Not counted in hours of service Time spent with clients/service users/community, for example, in person or on the phone: Counselling Case management Personal assistance Time on the phone with clients Time spent on behalf of a client or which can be attributed to a client: Arranging a referral Writing file notes Participating in case conferences Recording data at time of assessment Mobile service delivery Preparing training materials Time on behalf of or available for clients (output specification) Indirect time: Team meetings Travel Training Networking meetings Getting supervision Compiling or entering data for reporting purposes Collating data Administrative tasks Supervising staff All included in establishing cost

16 Output Measure - Hours 60 minutes of direct support Can accumulate smaller blocks of support to add to one full hour Does NOT include Administration and management Staff training Business planning Team meetings Community consultation Collating data Travel to and from client Record keeping (not directly related to individual service user) These are Indirect costs and treated separately from hours of direct support

17 Output Measure - Places A Place means the capacity to provide a service to one service user at a time Generally used for quantifying accommodation support services Example: Where accommodation support is provided to 3 people living in a group home, the output would be 3 places

18 Output Measure Milestones on agreed plan Milestone classifications Project Tele-link Conference Report Workshop Meeting Information product Online tool Social event Forum

19 Outputs Client Complexity Annual funding $75,000 Service Y Service Z Output Needs assessment and management of case/ service plans Needs assessment and management of case/ service plans Annual Quantity hours hours Number of Clients Services can have different target numbers of clients Service Z has more hours per client as clients have more complex issues

20 Reporting on Outputs Reporting the number of actual outputs delivered in a reporting period against each funded output Reporting the number of clients/service users (distinct individuals) who received a service under each funded output

21 How is it being rolled out? Regional staff working in partnership with central office staff Regional staff are working with and providing support for services and organisations before service agreements are due Tools are being provided to facilitate transition Community Services Officers are already working with organisations that have service agreements due

22 When is it happening? All new funding from 1 July 2010 is on an outputs basis ü Disability Services complete ü Community Mental Health complete Child Safety are currently transitioning Services funded under the Community Services Act 2007 are currently transitioning rolling implementation based on service agreement due dates 68 service agreements have transitioned to output funding to date New funding for on-going service delivery Regional staff are working closely with affected organisations

23 Summary Output Funding is a significant reform that has the potential to streamline financial management and reporting, reduce red tape and strengthening the service system. But it will take people, in both government and NGOs, working collectively and collaboratively to make our sector strong into the future. If you like walking down the right path and you re willing to keep walking, eventually you ll make progress. Barrack Obama

24 Output Funding ü Additional information available at: output-funding-and-reporting ü Outputs catalogue: resources/corporate/funding/outputs-catalogue.rtf ü Frequently asked questions