Service Agreements

In reply to Ms SANDERSON (Adelaide) (17 November 2015).

The Hon. S.E. CLOSE (Port Adelaide—Minister for Education and Child Development, Minister for Higher Education and Skills): I have been advised:

1. A comprehensive review was conducted of 34 Service Agreements expiring 30 June 2015. Several of these services were amalgamated, resulting in a total of 30 services; 15 of the agreements had an option to extend the service for two further periods of one year.

In March 2015, service review recommendations were approved to renew contracts for 2015-16.

All Letters of Extension to extend the fifteen Service Agreements for 12 months and two new Service Agreements were signed before 30 June 2015, i.e. before the expiry of the existing agreements.

Thirteen of the new Service Agreements were executed on 31 July 2015.

2. To manage the risk associated with these delays and to ensure continuity of services to children and young people, emergency payments, equal to the first quarter payment of 2015-16, were approved to be released.

All Service Agreements were for established services provided by NGOs who are pre-qualified members of the Families SA Provider Panel, therefore any risks associated with the agreements not being executed by the commencement date were considered low.

Performance of service agreements is monitored through analysis of quarterly quantifiable and qualitative data and financial acquittals submitted by the Service Providers and measured against Key Performance Indicators, Outputs and Outcomes.

3. If services are underperforming, discussions with the Service Providers are initiated to determine the reasons. In consultation with the Service Providers, target numbers, capacity, target groups, service models, staffing structure or reduced funding may be negotiated.

Stability of existing placements of children and young people is a significant priority and must be considered if changes are made to a service.

Clause 26 of the Families SA Master Deed allows the Minister to terminate either the Master Deed or Service Agreement or both at any time either immediately or on a later nominated date by written notice to the Service Provider under various circumstances; or terminate without cause at any time by giving three month's written notice. If the Minister terminates the Master Deed or Service Agreement, the Service Provider may be required to repay either the whole or a portion of the allocated funding received.

4. There is provision in the Service Agreements to recover any unexpended allocated funds at the end of each financial year during the term of the Service Agreement by either reducing or withholding one or more scheduled payments or by issuing a tax invoice to the Service Provider.

The Service Accountability Unit initiates Invoice Requests to recover any unexpended allocated funding after each financial year has ended, upon receipt of the audited financial statements from the Service Providers.