Topic 4

Community Services in NSW uses performance-based contracting to fund social services, emphasizing outcomes over process. Funded service providers must achieve objectives outlined in service agreements and specifications. Community Services monitors performance using the Performance Monitoring Framework, which involves self-assessment, desk reviews, and potential performance improvement plans. The goals are continuous improvement and ensuring accountability for outcomes.

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Topic 4

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Bramwel Wanyonyi

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Topic 4.

CURRENT ISSUES IN FUNDING OF SOCIAL SERVICES

Introduction
The current Community Services approach to contracting for funded services is in keeping with a
current global human services trend that emphasizes performance above other aspects of the
funding process, this is known as performance-based contracting, or PBC.
The goals of funding programs are explicitly aligned with Community Services objectives as a
NSW Government agency. Formal guidelines, developed from evidence based models, articulate
the purpose and parameters of programs and ensure that Community Services (as the funder),
service providers, and service users, as well as the wider community are informed about what is
being funded and why.

In turn, service providers undertake to achieve outcomes that are consistent with program
objectives. These expectations are described explicitly in documents formally agreed between
Community Services and service providers − the Service Agreement and service specification(s).

In all Community Services dealings with funded service providers, there is an emphasis on
service outcomes and results (i.e. impact on clients and communities). These are outlined clearly
in Program Guidelines and service specifications. Emphasis on outcomes and results has, in turn,
highlighted the importance of data systems and reporting arrangements.
An emphasis on performance will make it possible for Community Services to step back from
using prescribed inputs and processes as a means of controlling what service providers do on a
daily basis. Community Services does not detail the inputs to service delivery or process
requirements beyond what is necessary, such as fair access. This approach gives service
providers flexibility in the way they manage their operations to achieve the agreed outcomes for
clients.

Community Services uses the (performance monetary fund) PMF and quantitative data reporting
to monitor the performance of funded services, negotiate ongoing improvements and to support
decisions about continuing to fund service providers.

Key Principles of Funding Practice

Community Services’ funding policy has been developed in line with the overarching principles
of the NSW Government’s Procurement Policy which are:
1. value for money
2. efficiency and effectiveness
3. integrity and equity
4. effective competition

Performance Monitoring
The Community Services Performance Monitoring Framework (PMF) is being introduced
progressively to Community Services funding programs. This is being done in a way that allows
time for funded service providers to adapt to the new expectations and processes, particularly
data recording and reporting. PMF processes is used in conjunction with quantitative data
reporting and acquittal documentation to monitor the performance of funded services, negotiate
ongoing improvements and support funding decisions.
Community Services will provide support to funded service providers on PMF processes and
documentation through briefings and advice as needed.

 The aim of the PMF is for continuous service improvement based on co-operation
between Community Services and funded service providers, the sector and peaks. The
PMF is used to routinely monitor and assess the performance of funded service
providers against the key performance elements of the Service Agreement and their
associated service specification(s), program by program.
These elements include:

 Financial Management
 Service Data Collection
 Client Group
 Geographic Coverage
 Service Activities
 Service Results.

The PMF involves a number of processes, including:

1. a self assessment which is completed by the service provider within 4 months of the end
of the financial year;
2. A desk top review conducted by Community Services funding staff, including a review of
financial statements. Service data, where available, is also reviewed, which may lead to;
 If necessary, a monitoring and review meeting with the service provider, where the
service provider and Community Services staff meet to discuss performance issues. This
meeting allows an opportunity for the service provider to present supporting
documentation that demonstrates their performance. This meeting may lead to

 If necessary, the development of a Performance Improvement Plan (PIP), to address

identified performance issues, in agreement with the service provider.

Results Based Accountability

 Results Based Accountability (RBA) has, at its core, principles of simplicity and common
sense and provides common ground from which Community Services and service
providers can work.
 It provides a structured approach to thinking about service delivery, which starts with
defining the ends (results and indicators) and works backward to the means to get there.
 RBA is a useful framework to assist service providers and funders to focus on outcomes
for clients through the purchasing process however it is not the only approach used by
Community Services and funded service providers.