Service agreement

Organisations are required to acknowledge the funding support provided by the Victorian Government, as part of the ‘Funding acknowledgement’ condition of service or funding agreement.

This acknowledgement must be made in publications and publicity related to services funded – for example, websites, media releases, print and electronic documents, speeches/launches and an organisation’s annual report.

The guidelines have been developed to assist funded organisations in the use of the Brand Victoria logo and must be used in conjunction with the logo instructions and logo files.

The guidelines, logo instructions and logo files are available through the Funded Agency Channel.

• Guidelines - Acknowledgement and publicity guidelines for Victorian Government funding support <https://fac.dffh.vic.gov.au/acknowledgement-and-publicity-guidelines-victorian-government-funding-support>

The funding acknowledgement applies to organisations with a service or funding agreement with the Department of Families, Fairness and Housing, Department of Health, Department of Education, Adult, Community and Further Education Board and Department of Justice and Community Safety.

Activity descriptions specify the requirements for the delivery of services or programs being provided by organisations on behalf of the Department of Families, Fairness and Housing and the Department of Health (departments). They form part of the service agreement contract between the organisation and the department.

Activity descriptions contain detailed information that funded organisations must adhere to in order to receive funding from the Victorian Government. Community services and health activity descriptions ensure the delivery of safe, high-quality services and responsible financial management. They include: service objective, description of the service, client group, program requirements and other policy guidelines, performance measures and data collection.

They are available on Department of Families, Fairness and Housing and Department of Health <https://providers.dffh.vic.gov.au/families-fairness-housing-health-activity-search> activity search and provides access to detailed information for each departments activity funded by a service agreement.

To assist with your search, activity descriptions for the Department of Families, Fairness and Housing and the Department of Health are available, containing activity codes and activity names by output group for the departments. 

• DFFH and DH Activity Index

Organisations need to attach relevant financial data and/or URLs via the service agreement module of the Funded Agency Channel. This includes the information of the location of the organisation’s Annual Report, a Financial Indicator Statement (FIS) or a Cash Indicator Statement (CIS).

Where an organisation receives funding from more than one department, only one Financial Accountability Requirement (FAR) is required which will cover the requirements for Department of Health, the Department of Families, Fairness and Housing and Department Education and Training.

FAR reporting assists the funding department(s) to ensure that there is a financially sustainable service system. Finance staff from the department(s) analyse the financial position of each funded organisation and monitor financial position trends over time.

Organisations should ensure that the applicable reporting period is inserted (for example 1 Jul 2017 to 30 Jun 2018) as well as details of the organisation.

The following reporting templates are available:

If you are still unsure about your FAR reporting requirements please contact your service agreement contact or payment contact.

• Financial indicator statement (FIS)
   
• Cash indicator statement (CIS) 
   
• Independent Auditor's Report (only if required by law to have financial statements audited)
   
• Asset management resources

If an organisation meets its obligations under the Service Agreement to the department’s reasonable satisfaction, the department will fund the organisation. The funding to be paid to an organisation is set out in Service Agreement ‘Schedule 4 - Funding summary and Agreement level payment schedule (excludes GST).’

The organisation is to use the funding provided by the department only for the delivery of services specified in Service Agreement Schedule 2 Services and Schedule 3 Applicable Departmental Policies . The funding will include direct service costs and the cost of overheads that the department considers inherent in the delivery of the services.

Annual funding increases
Each financial year, the Victorian Government determines an indexation rate for services. This allows for factors that increase the cost of service delivery such as increases in award wages and the Consumer Price Index.  

Although most funding is indexable, some, such as fixed term funding, may not be indexed.

The departments will increase the funding payable for indexable services in each year of the Service Agreement by the rate of indexation approved by the Victorian Government. Different indexation rates may be approved for different services.

Department of Families, Fairness and Housing and Department of Health 

Organisations can view the increases from financial year 2012-24, click on the link below. The first tab in the spreadsheet contains the indexation rates and the second tab contains the current approved unit prices for each funded activity.

• DFFH and DH Approved Yearly Indexation Rates and Unit Prices

Department of Education 

To view current increases and approved unit prices, click on the link below. 

• DE Approved Indexation Rates and Prices

Organisations are required to undertake employment safety screening to ensure safe service delivery for clients who receive support and services.

This applies to all organisations funded through a Service Agreement with the Department of Families, Fairness and Housing and the Department of Health.

Further information is available on Providers - Safety screening policy for funded organisations <https://providers.dffh.vic.gov.au/safety-screening-policy>.

Sample service agreements for individual departments for 2024-2028 including the new relevant terms and conditions are available as follows:

• Department of Health’s Service Agreement sample 2024-2028
• Department of Families, Fairness and Housing’s Service Agreement sample 2024-2028
• Department of Education's Service Agreement sample 2024-2028
• Adult Community and Further Education Board’s Service Agreement sample 2024-2028

Most organisations funded through a Service agreement will be required to submit an annual Service agreement compliance certification (SACC). 

The SACC contains questions relating to:

• Financial Management, that the organisation has used funding as outlined in their service agreement, is financially viable, has prepared its financial reports and any audit reports and maintains an asset register.
• Risk Management, that risks are managed in accordance with the Australian/New Zealand Risk Management Standard.
• Staff safety screening, referee checks, police checks, and if relevant Working with Children Checks have been completed.
• Privacy and Data Protection, that the organisation’s practices and systems that do not contravene the Privacy and Data Protection Act 2014 and the Health Records Act 2001 and the Privacy Act (Cth), to protect personal and health information. 
• Occupational Health and Safety, that the health and welfare of the staff employed are protected by organisation’s policies and practices in accordance with OHS requirements.

The SACC must be submitted to the department three months after the organisation’s reporting period, or seven days after the organisation’s Annual General Meeting.

SACC resources

• How to complete the service agreement compliance certification
   
• Guidelines for the service agreement compliance certification form 
   

The Service Agreement Requirements is a contractual document and outlines the departmental responsibilities and the policies and obligations that all funded organisations must comply with. 

The Service Agreement Requirements document is available at Service Agreement Requirements. 

• Summary of changes to the service agreement 2024-2028 (DFFH, DH & ACFE) 
• Summary of changes to  the service agreement 2024-2028 (DE)