Sub-contracting and brokerage policy for FACS funded disability service providers
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1 Sub-contracting and brokerage policy for FACS funded disability service providers Summary: This policy outlines FACS requirements for commissioning third party providers through sub-contracting and brokerage.
2 Document approval The Sub-contracting and Brokerage Policy for FACS funded disability service providers has been endorsed and approved by: Jim Longley Deputy Secretary Approved: <insert date here> Document version control Distribution: Public Website Document name: Trim Reference Sub-contracting and brokerage policy for FACS funded disability service providers AT14/90507 Version: 1.1 This document replaces Document status: Subcontracting and Brokerage Policy 1.0 Draft File name: Authoring unit: Date: Sub-contracting and brokerage policy for FACS funded disability service providers Ageing, Disability and Home Care, Community Inclusion Directorate May 2012 (Original) February 2015 (Revised) [Sub-contracting and Brokerage Policy] 2
3 Table of contents 1 Overview Purpose... Error! Bookmark not defined. 1.2 Relationship with Individualised Funding Defining Sub-contracting and Brokerage Sub-contracting Responsibilities Brokerage Responsibilities Managing sub-contracting and brokerage arrangements Disability Inclusion Act Requirements Support and advice Monitoring, evaluation and review... 9 [Sub-contracting and Brokerage Policy] 3
4 1 Overview This policy replaces the Subcontracting and Brokerage Policy (Version 1.0). The changes that have been made in this version are outlined in the following table: Change / Addition The inclusion of information regarding the relationship of this policy to the FACS individualised funding framework. The inclusion of information regarding additional probity and reporting requirements relating to sub-contractors, and other individuals engaged under third party arrangements, introduced by the Disability Inclusion Act Section Reference Subsection 1.2 Section Purpose The Department of Family and Community Services (FACS) recognises that funded disability service providers may enter into arrangements with other organisations or individuals to deliver supports to people with disability, their families or carers. The terms sub-contracting and brokerage are often used interchangeably where service delivery arrangements are established by a funded service with a third party provider. This policy sets out: Definitions of brokerage and sub-contracting ; FACS requirements for commissioning third party providers; and The mechanisms that funded disability service providers should use to adequately manage those arrangements in the context of their own obligations. It is anticipated that third party provider arrangements, particularly brokerage, will be more common as a consequence of the implementation of the National Disability Insurance Scheme (NDIS) in NSW and the associated transition to individualised funding arrangements. Flexibility and responsiveness in the provision of supports will be a key feature across the service system. Funded service providers will need to have the systems and mechanisms in place to ensure that the third party provider arrangements that they enter into on behalf of clients are of an appropriate quality, deliver the necessary results and are value for money. [Sub-contracting and Brokerage Policy] 4
5 1.2 Relationship with Individualised Funding The Disability Inclusion Act 2014 (DIA) specifies how FACS disability funding can be provided. Funding can be directly provided to: The individual or their nominee (when they enter a Direct Payment Agreement); A plan manager (or intermediary service provider) to administer the funding on behalf of an individual; To a service provider for the purpose of providing support and services to identified individuals; and To a service provider for the purpose of providing support and services to unspecified persons with disability. This policy only applies to directly funded disability service providers. This policy does not apply to individuals with Direct Payment Agreements (DPA) or where a provider is engaged as a plan manager/intermediary. The policy applicable for DPA and intermediary arrangements is currently being developed. 1.3 Defining Sub-contracting and Brokerage The following definitions are made within the context of the funding arrangement that FACS has with disability service providers. Sub-contracting is where a funded provider enters into a contract with another third party provider to deliver services or activities that it would usually provide directly. Brokerage is where a funded provider facilitates the delivery of services on behalf of a service user through another provider using funds that are available to support that person. In summary, sub-contracting is where a funded provider elects to engage a third party to provide services and brokerage is where a funded provider is specifically funded to engage third parties for the provision of services. 2 Sub-contracting Responsibilities Sub-contracting arrangements require the formal (written) agreement of FACS as a condition of funding. This is because the sub-contracting arrangement changes the nature of the services that the provider will directly deliver and moves some or all of that responsibility to another organisation. The FACS agreement could be established: [Sub-contracting and Brokerage Policy] 5
6 At the beginning of the funding arrangement, for example where the service provider has advised FACS from the beginning that some parts of the service will be delivered by another provider; or If changes occur and the provider determines that some of the activities it was intending to deliver directly should be delivered by another organisation under a sub-contracting arrangement. In a sub-contracting arrangement the funded service provider s Board and FACS must be satisfied that the responsibilities under the Funding Agreement can continue to be met by the funded provider, that the sub-contracting arrangement has been appropriately established with the necessary safeguards in place for both the funded provider and the sub-contractor, and that those arrangements ensure that the required quality, value and results for people with disability will continue to be met. Service providers also have an obligation to comply with any requirements relating to sub-contracting that is outlined in program guidelines or policies, for example policies may stipulate the fees applicable for the administration of a commissioning arrangement. FACS is not obliged to agree to a sub-contracting arrangement where the funded service provider cannot satisfy the agency that its obligations under the Funding Agreement will continue to be met. Funded service providers do not need to seek FACS agreement for subcontracting arrangements that are not directly related to the specific services or supports that the organisation is contracted to provide under its FACS disability Funding Agreement. Examples of such sub-contracting arrangements include those relating to maintenance, information management and technology and other back office services. Other types of sub-contracting could involve bringing in specialist services or staff to support the delivery of the service, for example sub-contracting for the delivery of behavior management services or therapy services. 3 Brokerage Responsibilities Under a brokerage arrangement, the ability for the funded provider to facilitate access to services, community based activities or other things such as equipment for a service user will generally be an acknowledged part of the Funding Agreement. In the brokerage arrangement the funded provider has responsibility for understanding what is available that might suit a person s needs or preferences, and ensuring that the person with disability has all the information that they need to decide if the brokered arrangement is right for them. [Sub-contracting and Brokerage Policy] 6
7 The funded provider must be satisfied that the brokerage arrangement is consistent with, and does not compromise meeting, their responsibilities under the Funding Agreement. The brokerage arrangement must be appropriately established with the necessary safeguards in place for all parties and contribute to the delivery of services that meet quality, value and results expectations of all parties. 4 Managing sub-contracting and brokerage arrangements Where services are sub-contracted or brokered, service providers must have checks in place to ensure that the services received are delivered by fit and proper organisations or individuals and that these organisations or individuals are monitored to ensure they continue to provide the right service at the required quality. This can be achieved by ensuring the following requirements are met: Having a formal contract in place with the sub-contractor that binds them to the same conditions that the funded provider is bound under through the Funding Agreement, or any other obligations that they may have; Having a written agreement with the organisations from which the funded provider sources activities, services or equipment for service users as part of a brokerage arrangement, to ensure that what is required is clearly understood and will be delivered in a way that meets the expectations and needs of the service users; Obtaining warranties for equipment; Sourcing maintenance, modification and other such services from licensed operators; Having systems in place to ensure that providers have the necessary workplace health and safety requirements in place; Having systems in place for other required legislative obligations including criminal record checks (as required under the Disability Inclusion Act 2014) and working with children checks; Having the necessary insurances; Having the appropriate risk assessment processes; Having clear complaints handling procedures; and Having systems for the management of systemic issues. Funded disability service providers that sub-contract or broker services must also ensure the supplier of services is appropriately briefed regarding the requirements and needs of the person or people who are to receive the services. [Sub-contracting and Brokerage Policy] 7
8 5 Disability Inclusion Act Requirements The DIA introduces additional safeguards for people with disability that place additional probity and reporting requirements on FACS funded disability services. These requirements also apply to persons engaged under third party service arrangements. The DIA requires all persons involved in the provision of supports and services to people with disability that have face to face or physical contact with individuals from that group, undergo a criminal record check and that further checks are carried out at least every 4 years. Also, under the DIA, a funded service provider is prohibited from engaging, or continuing to engage, a person who has been convicted of certain criminal offences. These requirements apply to sub-contractors and other persons engaged under third party arrangements. Further guidance on the probity requirements of the DIA can be found in the Probity in Employment Policy for FACS funded disability service providers at data/assets/file/0003/303465/probity-in- Employment-Policy.pdf. The DIA also enhances the role of the NSW Ombudsman in monitoring and protecting the well being of people with disability living in supported accommodation or staying in respite centers. This role is being implemented through the NSW Disability Reportable Incidents Scheme. Under the Scheme, funded service providers involved in the provision of such services are required to report to the NSW Ombudsman incidences of abuse or neglect of a client. Incidents to be reported include those caused by a staff member, by another client, any breach of an Apprehended Violence Order or where injuries are unexplained. Staff member encompasses contractors and sub-contractors and other persons engaged under third party arrangements. Further guidance on the Disability Reportable Incidents Scheme can be found on the NSW Ombudsman website at 6 Support and advice You can get advice and support about this policy from the ADHC Community Inclusion Directorate who has carriage of this document and from FACS District Contract Managers. [Sub-contracting and Brokerage Policy] 8
9 If you are reviewing a printed version of this document, please refer to the Intranet to confirm that you are reviewing the most recent version of the policy. Following any subsequent reviews and approval this policy will be uploaded to the internet and/or intranet and all previous versions removed. 7 Monitoring, evaluation and review It is the responsibility of the ADHC Community Inclusion Directorate to monitor and update this policy when required. This policy will be reviewed as required when any significant new information, legislative or organisational change warrants amendments to this document. [Sub-contracting and Brokerage Policy] 9
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