Victorian Common Funding Agreement User Guide Funded Organisations December 2015 Version 2

Authorised and published by the Victorian Government, Melbourne,

December 2015.

VERSION AND REVIEW

Victorian Common Funding Agreement Funded Organisations User Guide

December 2015, Version 2.0, scheduled for review 2019.

ACCESSIBILITY

If you need this information in an accessible format, please email or visit

The Victorian Common Funding Agreement (the Agreement) is licensed under a Creative Commons Attribution Non-Commercial No Derivatives 4.0 International licence You are free to re-use the Agreement under that licence, on the condition that you credit the State of Victoria as author, do not use it for commercial purposes, and do not make any modifications except in accordance with the Agreement business rules and user guidance. The licence does not apply to any branding, including the Victorian Coat of Arms, the State Government Victoria logo and the Brand Victoria logo, or any images or third party material.

Supporting Department Contact Details

Introduction

Scope for Use of the Agreement

Access to the Agreement

Supporting Department Contact Details

The Victorian Department of Health and Human Services is the supporting department for the Agreement and the provision of up-to-date information and supporting resources for Agreement users.

If you need assistance with your Agreement you should first contact the issuing government agency that your grant funding and Agreement is administered through.

For general information about the Agreement you can contact VCFA Support by:

For supporting resources and information updates about the Agreement you can visit the Victorian Department of Health and Human Services website at:

Funded Organisations who are Local Government Authorities can visit Local Government Victoria (Department of Environment, Land, Water and Planning) for more information on the Victorian Common Funding Agreement at:

Introduction

This document provides guidance to funded organisations on how to work with and understand the Victorian Common Funding Agreement (the Agreement) when it is used for grant funding received from government agencies for services and projects, including capital works[1].

Scope for Use of the Agreement

The Agreement applies to the following users and types of grant funding, which are defined Agreement terms.

Scope / Description / Defined term in the Agreement
Government agency
(Funding provider) / A government body that provides and administers grant funding.

A department of the Victorian Government. The Agreement is mandated for use with not-for-profit (NFP) community organisations and authorised for use with local councils. It is used on an opt-in basis with other types of organisations and individuals
Other funding bodies, such as a statutory authority or a local council can opt-in to use the Agreement through Creative Commons license arrangements with organisations and individuals they fund.

/ ‘Department’
‘Authority‘, ‘Council’ or other
Funded organisation
(Funding recipient) / The organisation that receives grant funding from the government agency.

A not-for-profit (NFP) community organisation, defined as:

“Organisations that operate for social or community purposes, do not distribute profits to members, are self-governing and independent of government.”
(Source: Victorian Public Sector Commission (formerly State Services Authority), 2011)
Organisations with a legal status as an Incorporated Association, Co-operative, or Company Limited by Guarantee may fall into this category, such as Aboriginal community controlled organisations (ACCOs), community arts organisations, community clubs, community service and health providers, co-operatives, drug and alcohol services, industry organisations, kindergartens and preschools, neighbourhood houses and community centres, peak bodies, self help groups, social enterprises, sport and recreation clubs, tourism groups, and volunteer groups.

A local council as defined under the Local Government Act 1989 (Vic).
Individuals and other types of organisations includes businesses and, for non-core services funding, hospitals, medical centres, professional associations, religious congregations, research institutes, schools, TAFE colleges, trade unions, or universities.

/ ‘Organisation’ and its derivatives of ‘You’, ‘Your’ or ‘Recipient’
Grant funding / “Money given to organisations or individuals for a specified purpose to achieve objectives consistent with government policy...including ad hoc payments, competitive assessment or when specified criteria are specified.”
(Source: Victorian Government ‘ Better Grants by Design’ 2014)
This grant funding may be allocated through a grant program or other funding initiative through an ad hoc, competitive, negotiated or targeted process.
Grant funding does not cover donations, sponsorships, the non-contested transfer of funds to a government entity, or the purchase of goods or services from third party suppliers or on commercial terms. / ‘Funding’

Access to the Agreement

Funded organisations will be issued their Agreement directly from the government agency that is providing the grant funding.

General information, supporting resources and updates for the Agreement can be accessed by funded organisations through the Victorian Department of Health and Human Services’ website at:

or for local Councils at:

Service Agreement Form of the Victorian Common Funding Agreement

The Service Agreement used by the Department of Health & Human Services (DHHS) and the Department of Education & Training (DET) is a form of the Victorian Common Funding Agreement, with shared features including:

Many core terms and conditions are the same in the Service Agreement form and Standard Form Agreement
Clauses are written in plain English and presented in the same order
A four year term (2015-2019) for terms and conditions with aligned review schedules
A similar ‘look and feel'.

The Service Agreement form is administered by DHHS.

The terms and conditions of the Service Agreement form contain a combination of the Victorian Common Funding Agreement core Termsand Conditions and approved additional and substituted clauses that meet the unique needs of government funding of health, human and early childhood services.

The guidance in this document does not apply to the Service Agreement form. Please refer to the Service Agreement Information Kit and other business guidelines for more information about the Service Agreement form from the DHHS website at:

Note: Please refer to the Service Agreement Information Kit for more information about the Service Agreement form of the Common Funding Agreement from the DHHS website at:

Additional Resources

Resource / Description and location
The Not For Profit Compliance Support Centre / A single point of entry for not-for-profit community organisations to access regulatory information, licences, forms and related compliance resources. Available online at:

National Standard Chart of Accounts / Thechart of accounts that must be used is mandatory by Victorian State Government departments and agencies for all grant funding programs that make allocations to community organisations.
Note: Implementation is not mandatory for community organisations, who can continue using their existing chart of accounts.

Understanding the Victorian Common Funding Agreement

The Agreement provides a standardised funding agreement for use by all Victorian government departments when funding the not-for-profit (NFP) community sector and local government for human and community services and projects, including specified capital works.

Designed to benefit all users by being scalable, predictable and easy to understand, the Agreement is based on core Terms and Conditions that apply to all funding, and which are used as a basis for three consistent, risk-proportionate forms of Agreement:

Short Form used with lower risk funding as an abridged version of the Standard Form
Standard Form used for most types of funding comprising a Schedule and the core Terms and Conditions (may also be referred to as the 'long form')
Service Agreementform used for funding health, human and early childhood services through the Department of Health & Human Services (DHHS) and the Department of Education & Training (DET).

The diagram below illustrates the Agreement model and how its parts fit together.

Figure 1. Victorian Common Funding Agreement Model

The Agreement is provided by a government agency to a funded organisation as a complete legal document, incorporating any additions from the Clause Bank, using one of the following options:

The Schedule with the Terms and Conditions, as a Standard Form Agreement
The Short Form Agreement
The Service Agreement.

Note: There are specific business guidelines for the Service Agreement form. For further information see the Service Agreement form of the Victorian Common Funding Agreement in this guide.

Victorian Common Funding Agreement Standard Form

The Victorian Common Funding Agreement Standard Form comprises the Schedule and standard Terms and Conditions; together these parts and any referenced attachments create the Agreement.

Following is guidance on the sections that comprise the AgreementStandardFormand how to work with them.

Schedule

TheSchedule of the Agreement Standard Form is where the specific details of a particular organisation and its funded Activity are recorded. The Schedule is always used and read in conjunction with the Terms and Conditions.

Following is guidance on the sections that comprise the Schedule and the information that is documented.

Parties

The Parties identifies the entities that the funding agreement will bind.

This will normally cover the name and ABN of the government agency that is providing the grant funding, and the name and ABN or ACN of the organisation that is receiving the grant funding.

The Date on this page provides a ready reference point for the parties as to the date from which the Agreement will be binding and effective. The Date field should reflect the date on which the Agreementwas executed (see theBackgroundsub-component for guidance relating to signatures).

Parts of this Agreement

This section outlines the parts that make up the Agreement. It reinforces that more than just the Schedule forms the entire funding agreement and that it comprises the following parts:

Schedule including the Background, Details and Schedule
Terms and Conditions
Attachments (if any) that may be referenced in either Schedule or Terms and Conditions of the Agreement.

Background

The Background outlines four key principles underpinning the funding agreement and is also where the Agreement is executed with signatures by both parties.

The underpinning principles outline that:

Both parties intend to work together and in good faith to achieve outlined objectives
The parties have a shared vision to improve the outcomes for people in Victoria
Funding is provided to the organisation for the purpose of delivering an Activity
The organisation accepts the funding for the purpose of delivering the Activity in accordance with the terms of the Agreement.

Note: A government agency may insert a different recital under principle B or additional background information.

Execution of the funding agreement with signatures

The Agreementis executed with signatures from representatives of the government agencyand the organisation.

Each party keeps a copy of the executed Agreement for their records.

It is the responsibility of both parties to ensure that the representatives signing the Agreement have the appropriate level of delegated authority to do so, as the Agreement is a legally binding document.

Representatives who can execute the Agreement on behalf of agovernment agencyand an organisation are outlined below.

Party to the Agreement / Representative who can sign the Agreement
[Government agency] / Agovernment agency's 'instrument of delegation' should name the job positions that have authority to sign the Agreement on the government agency's behalf. These delegations often align with financial delegations.
Organisation / The legal status of the organisation determines who is authorised to sign the Agreement on their behalf.
For example, the Associations IncorporationReform Act 2012 (Vic)states that, subject to any greater limitation under an organisation’s business rules, a contract or other document - such as a funding agreement -is to be executed with signaturesby:

Two members of the committee
Or if the secretary is not a member of the committee, by a memberof the committee and the secretary.

Signatures are required whether or not the organisation has a common seal.
An organisation’s business rules should confirm who is responsible for executing anAgreement.
Witness / Anyone aged 18 years or older is able to sign as a witness to the Agreement.

Electronic 'signatures'

If both parties are working electronically, for example using email and an electronic document management system, you may not need to manually sign a hard copy of the Agreement but another approved system will have to be used, such as an electronic signature or tick box.

Note: If the government agency or organisation is not set up with technology to allow electronic signatures, you may need to arrange manual signature and scanning of the executed Agreement for recordkeeping purposes.

Details

The Details section provides essential key contact information plus the Activity start and end date.

Content / Guidance
[Government agency] / The full name of the government agency and the ABN that is providing the funding.
Organisation / The full name of the organisation and the ABN or ACN. Take care to check that the correct ABN/ACN is used - larger organisations or those with branches may have multiple ABNs. The ABN relating to the part of the organisation receiving the funding should be used.
Start date / Of the Activity – this date normally coincides with the date on which the Agreement is anticipated to be executed, but could be another date that is mutually agreed and understood by the government agency and the organisation.
End date / Of the Activity – this date normally coincides with the date on which the final action/deliverable in relation to the Activity is due, but could be another date that is mutually agreed and understood by the government agency and the organisation.
Dispute resolution officer / The name of the individual or panel nominated by the government agency as the primary contact point to direct dispute notices to.
A change to the Dispute Resolution Officer must be amended by variation (see clause 21, Variation).
Organisation’sprimary contact / The name of the organisation's first point of contact for matters relating to the Agreement.
If the organisation is a partnership, joint venture or consortium with two or more member parties, the Organisation's Primary Contact may need to have the authority to bind each of the member parties.
Organisation’s address / The organisation’s office address. This should be the address of the office that will receive and manage the funding.
Organisation’s phone number / The phone number for the organisation.
Organisation’s facsimile number / The fax number for the organisation.
Organisation’semail address / The main contact email address for the organisation, usually the email of the Organisation’s Primary Contact.
[Government agency]’sprimary contact / Thegovernment agency's first point of contact for matters related to the Agreement.
[Government agency]’saddress / The address of the government agency’soffice through which the funding is arranged.
[Government agency]’s phone number / Enter the phone number for the government agency.
[Government agency]’sfacsimile number / Enter the fax number for the government agency.
[Government agency]’semail address / The main contact email address for the government agency, usually the email of the Primary Contact.

Note: The Details section includes only essential information about the parties that is legally required for transmission of notices. Other details such as a primary contact’s title may optionally be added by a government agency in the primary contact fields or in a cover letter that accompanies the Agreement.

Victorian Common Funding Agreement User Guide Funded Organisations December 2015 Version 2

Contents

Supporting Department Contact Details

Introduction

Scope for Use of the Agreement

Access to the Agreement

Related Documents

Service Agreement Form of the Victorian Common Funding Agreement

Additional Resources

Understanding the Victorian Common Funding Agreement

Victorian Common Funding Agreement Standard Form

Schedule

Parties

Parts of this Agreement

Background

Details