Practice Advice 17 – Funding acquittal
Individual Support Package Guidelines
Link to guidelines:
Chapter 7
Section 7.1
Practice Advice #3
For attention of:
Disability service providers
Departmental workers
Date of issue:
October 2015
Monitoring, accountability and reporting Financial
monitoring
Applying the funding principles
No. of pages
7
Introduction
It is important that everyone involved in the administration and/or delivery of individual support packages including
departmental staff, disability service providers, people with a disability and their families and carers are aware of
the monitoring and accountability requirements associated with the expenditure of government funds.
Effective monitoring and accountability activities ensure that departmental staff, disability service providers, people
with a disability and their families and carers have sufficient information to determine if the intended outcomes of a
person’s plan are being achieved. Information gained through monitoring and accountability can also be used to
initiate further action, such as financial reviews.
Monitoring and accountability activities will vary depending on the funding administration arrangement. This guide
provides monitoring and accountability information applicable to disability service providers, with a key focus on
accountability activities, including acquittal.
Requirements
Key monitoring and accountability requirements include:
 spending funds in accordance with the funding guidelines and allocation
 signing of agreements where applicable
 completion of an annual financial acquittal
 participating in service reviews if required
 reporting service delivery as specified in the department’s Policy & Funding Plan.
Accountability - what is acquittal?
This practice advice relates to the funding acquittal and reconciliation requirements of disability service providers
selected by the person to receive the funding directly through a service agreement, the state-wide financial
intermediary, direct payment users.
Acquittal provides a statement of expenditure against budget allocation. The aim of acquittal is to identify how
much of each person’s allocation has been spent. Acquittal results determine whether any funds can be carried
forward, or if a recoup of funds is required as per the formula outlined in the individual support package guidelines.
Acquittal of individual support packages administered by disability service providers also involves contacting a
sample of service users to seek feedback on delivery of services and expenditure by the service provider.
This information assists the department in working out whether a person has any unspent funds that they can carry
forward into the next financial year or unspent funds that can be returned to the department to support other people
with a disability.
Disability service providers agree to be accountable for the expenditure of government funds and to participate in
an annual acquittal process when they sign a service agreement which includes an allocation of funding for the
relevant activities for which acquittal processes apply.
What funded activities are in scope for acquittal?
Funding acquittal practice advice relates to individual support packages funded through activity codes 17081
(Individual Support Packages), 17201 (Futures for Young Adults), 17019 (Facility Based Respite), 17078
(Community Based Respite), 17016 (Supported Accommodation), 17008 (Outreach) and 17034 (Flexible Support
Packages).
Disability service providers will be required to acquit against both EFT (group) and non-EFT (non-group)
based funding received through 17081. A separate template will be provided for EFT and non-EFT
funding.
How does acquittal work?
During July to September of each year, disability service providers need to make sure that they have processed all
outstanding invoices from the previous financial year.
All invoices that relate to supports received during the financial year need to be paid before the acquittal process
can commence. The funding acquittal period is from 1 July to 30 June inclusive.
For supports received later in the financial year (for example during June), it is likely that invoices will be received
during July or later. To allow time for all invoices to be paid, the acquittal process commences in October of each
year.
Disability service providers should make sure they have their financial records up to date. Early in October the
department will ask disability service providers to let them know how much each person has spent. The department
then uses this information to work out if there are any unspent funds.
If there are unspent funds, up to $1,500 or 5% of a person’s annual ongoing allocation (whichever is the greater) is
carried forward to the next financial year.
Disability service providers need to confirm any carry forward amounts with service users by the end of January.
Each person can determine how the carry forward is spent within the goals of their funding plan and in line with the
individual support package funding principles.
The carry forward funds should be spent by the end of June. The carry forward amount is part of the next year’s
acquittal. Any unspent funds will be returned to the department to be used to support other people with a disability.
To ensure the experience of people who are receiving support through individual support packages is captured, the
department may contact people to offer them the opportunity to provide feedback on their experience.
Practice Advice 17 - Funding acquittal - Individual support package guidelines
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Yearly acquittal timelines
This flow chart outlines the key tasks and timelines of the annual acquittal process.
Month
Step
Actioned by
Receive invoices and process payments for
services received during previous financial
year
Disability service providers
October
Provision of acquittal templates
Department
November
Submit expenditure information
Disability service providers
Completion of acquittal calculation and
confirmation to disability service providers
Department
Carry forward confirmation provided to
service users
Disability service providers
July
August
September
December
January
Important note
Service users’ budgets are to be acquitted according to the above timelines so
that the service user will have the maximum amount of notification of their carry
forward amount, as any carry forward must be spent prior to the end of the
financial year.
It is recognised that it may take longer to complete an acquittal where a service
user has multiple funding administration arrangements.
To receive this publication in an accessible format email: [email protected]
Authorised and published by the Victorian Government, 1 Treasury Place, Melbourne.
© State of Victoria, Department of Health and Human Services <month, year>.
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