Chief Executive Officer Round Table Sector Forum

1. Chief Executive Officer Round Table Sector Forum

2. Component II and the Agency Implementation Plan Progress To Date

3. 4 Key Questions Component I 15% across the board sustainability funding All not-for-profit organisations Component II Focus on what services are needed Focus on fair and appropriate price for services Focus on sustainability Contracting reforms Fixed amount of funding community sector $117m

4. 4 Key Questions • Are we responding to the priority needs of the people with disabilities and their families ? • Are we investing in the best responses (service delivery models) ? • Have we applied the lens of the State-wide Sector Development Plan ? • How do we ensure a sustainable contract (pricing)?

5. Component II Timeframe Submit Agency Implementation Plan (draft) 30 June 2012 Submit Agency Implementation Plan (final)30 Sept 2012 Submit Financial Request Sept 2012 Expected decision by Treasury/Cabinet December 2012 Announcement by the PremierDecember 2012

6. Agency Implementation Plan • Demonstrate how the services your agency purchases align with Government direction and community need • Outline agency’s approach for reviewing its existing contracting arrangements to ensure that they align with the Delivering Community Services in Partnership (DCSP) Policy. • Summarise agency’s progress towards, and plans for, implementing the DCSP Policy and procurement reforms. • Consider the readiness of funded NFP community sector organisations to respond to the changing environment.

7. Steering Group for the Disability Sector Procurement Reforms

8. Steering Group Terms of Reference • Support the Policy (DCSP) principles and behaviour • Inclusive approach in procurement reforms • Discuss the issues, possible solutions and recommend. • Provide communication strategies • Guide capacity building strategies across the sector • Minimise any unintended consequences

9. The Challenge Optimal price may not equal the available budget If so, how will we manage the difference … • reduce service levels in those contracts affected ? • reduce service levels in other contracts to redirect funding ? • choose alternative strategies to meet needs within the available budget ? • a combination of the above ?

10. Sector Collaboration So far… • Consolidation of Program Outcomes to a simpler set of 4 • Outcomes Based Contracting Pilot – flexible use of funds • Reviewing the Individualised Funding model • Sector Development Plan Still ahead in 2012… • Review current processes to reduce the administration burden (red tape) • Systematic review of services; in depth consultations • My Way project 2013 onwards… sequential implementation of the changes

11. 4 Key Questions • Are we responding to the priority needs of the people with disabilities and their families ? • Are we investing in the best responses (service delivery models) ? • Have we applied the lens of the State-wide Sector Development Plan ? • How do we ensure a sustainable contract (pricing)?

12. Group discussion What are the implications of ‘Component II and the Agency Implementation Plan’ for your organisation and for the sector? Please prepare one or two questions for the general open forum discussion.

13. Outcomes Based Contracting in an Individualised Funding environment Opportunities and Challenges

14. The journey • Looking back • Block funding • Fixed program settings • Inputs – output contracts • Input – output reporting • Looking forward • Individualised funding • No programs • Individualised planning • Focus on outcomes

15. Challenges of working in an ‘outcomes’ environment • Meeting people’s needs: achieving desired outcomes and facilitating this through contracting and funding allocations • Pricing to ensure sustainable services: this includes DSC budgeting for the right services at the right price • Measuring and reporting on outcomes

16. Outcome Areas Health and Wellbeing Learn, Grow, Develop Relationships Community belonging Contextualise the outcome/ service to the individual Individual plan Independent Audit/ Evaluation Strategies to be adopted How much ? Measurement: How well ? (disability standards) What difference ?

17. Individual needs analysis Evaluation and Reporting Strategies The Components of Individual Funding Funding allocation amount Pricing

18. Working Group for Individual Funding

19. Individual Funding Principles - Draft • Maximises the achievement of people's individual outcomes. • Maximises self-determination, choice and control for people. • Fosters flexibility and innovation. • Provides equitable and transparent funding allocation processes among people and enhances social capital. • Is straight forward, understandable, manageable from a budgeting perspective.

20. Individual Funding Principles - Draft • Is responsive to differences in the capacity of individuals to be involved in the system. • Includes strong evaluation and self-improvement features that support accountability for outcomes and avoids any unnecessary reporting. • Encourages a productive working relationship between the Commission, the people it aims to support, and the disability sector organisations based on trust, collaboration, and effective and sustainable service delivery.

21. A Re-pricing Journey Strategy = variable Price = to achieve outcomes Allocation = reviewed annually Future ? How quickly do we move? Do we need all the steps? Strategy = standard list + innovative solutions offered by a service provider Price = fixed for standard items, variable for others guided by principles. Allocation = reviewed annually Current Strategy = support hours (set by DSC) Price = fixed Business Rules rate (set by DSC). Allocation = fixed until new application

22. Where to from here? • Wide sector collaboration • Develop an educational package for providers • Resolve issues in current individual funding model, especially: • Information and technical support for individuals/families/carers • new funding allocation system • responding to changed needs • reporting and accountability framework

23. Group discussion What are the implications of ‘Outcomes Based Contracting in an Individualised Funding environment’ for your organisation and for the sector? Please prepare one or two questions for the general open forum discussion.

24. My Way A ‘self directed supports and services’ project

25. Background • National and international movement • State government commitment • Reflects Commission directions

26. What will it mean for people with disability? • Choice and control • Individualised, person-centered support • Community inclusion • Focus on planning, developmental and preventative approaches • Seamless, flexible funding • Decentralised decision making

27. What is it not all about! • Not having choice – participation is voluntary • Having to take control and responsibility for everything • Funding

28. The details … so far • 4 project sites • Broad consultation / focus groups • Implementation in partnership • The Model • My Way coordinators (govt and non govt) • Choice • Focus on planning • Ongoing support • Funding (maybe)

29. Timeline • March to June - Consultation/development • June - Announce project sites • July to October - Community and sector engagement, recruitment and training • November – Commence implementation in trial sites (person by person)

30. Group discussion What are the implications of ‘My Way’ for your organisation and for the sector? Please prepare one or two questions for the general open forum discussion.

31. Sector Development Plan

32. Plan Development – Geographical

33. Kelmscott

34. Kelmscott

35. Plan Development - State wide

36. Group discussion What are the implications of the ‘Sector Development Plan’ for your organisation and for the sector? Please prepare one or two questions for the general open forum discussion.