Natural Disaster Financial Assistance (NDFA)

1. Natural Disaster Financial Assistance (NDFA) November 2013

2. Overview of the NDFA • Assists in the recovery process & alleviates some of the financial burden experienced following a natural disaster including assistance to: • municipal councils & Catchment Management Authorities (CMAs); • Individuals & households (personal hardship grants);& • Primary producers, small businesses &not-for-profit organisations (Concessional loans & Clean up & Restoration Grants) • Mirrors the joint State-Commonwealth Natural Disaster Relief & Recovery Arrangements (NDRRA).

3. Eligible natural disasters • Assistance is available for the following types of events: • Bushfire, earthquake, flood, storm, cyclone, storm surge, landslide, tsunami, meteorite strike or tornado • Terrorism an additional inclusion in July 2010 • Non-natural disasters not eligible, including: - Drought, frost, heatwave, epidemic, or events where human activity is a significant contributing cause (for example, poor environmental planning, commercial development, personal intervention (other than arson), or accident)

4. Applying for financial assistance • Councils can apply for assistance through: • Claims (actual expenditure incurred); or • Advance Payment requests • The DTF website provides • A flowchart on the Claims & Advance Payment processes http://www.dtf.vic.gov.au/Publications/Victoria-Economy-publications/Claims-and-advance-payment-process; and • Claim form http://www.dtf.vic.gov.au/Publications/Victoria-Economy-publications/Municipal-claims-form

5. Claims Process • Councils required to submit Claims for actual eligible expenditure regularly to DTF with a copy to VicRoads i.e. at least quarterly • Expenditure is formally assessed by VicRoads • Process generally takes 6 – 8 weeks subject to complexity of claim

6. Claims process cont. • All restoration works required to be completed within the allowable time period of 2 years from the end of the financial year in which the natural disaster occurred - i.e. the deadline for February/March & June 2012 flood repairs is 30 June 2014 • Allowable time period deadlines for NDRRA notified events are provided at the following link: http://www.dtf.vic.gov.au/Victorias-Economy/Natural-disaster-financial-assistance/Allowable-time-period • In exceptional circumstances, an extension may be successful however, becoming harder to argue

7. Advance Payment process • Where financial hardship can be demonstrated, an advance payment may be requested to assist with cash flow in commencing repair or restoration works. • Requests should be addressed to Jillian Wyatt, DTF, Level 9, 1 Macarthur Street, Melbourne 3002 & include • the full amount of the advance requested; • total estimated damage; • expected date works will be completed; • event & outline of the natural disaster; & • the balance remaining of previous advance (if applicable).

8. Advance Payment process cont. • Advance payment requests subject to internal DTF approval & DTF Secretary sign-off • Councils will receive confirmation of advance payments approved • Justification Claims (offsetting against the advance) are required to be submitted to DTF on a regular basis – with a copy to VicRoads to speed up the process • VicRoads will then undertake formal assessment of expenditure as per the normal claims process

9. Eligible costs which Councils can claim • Certain counter disaster operations, including repairs to facilities damaged by counter disaster operations • The restoration & emergency protection works to essential public assets damaged as a direct result of a natural disaster. Restoration is only to pre-existing condition using current engineering & design standards • Some additional operational costs mainly associated with the establishment of a: • Municipal Emergency Coordination Centre (MECC); • Relief centre; and/or • Recovery centre

10. Restoration of Essential Public Assets • Definition under the NDRRA recently narrowed to: - An integral & necessary part of the State’s infrastructure associated with health, education, transport, justice or welfare • Eligible assets include: - Road & bridge infrastructure, footpaths, levees, local government offices & storm water infrastructure • Sporting & community facilities, religious establishments & memorials now generally excluded • Assets need to be owned by the council • Eligibility issues should be directed to Donna Kennedy, DTF, in the first instance

11. Notification of Events • Councils should advise Donna Kennedy, DTF, of: • damage to essential public assets or that they are undertaking counter disaster activities or establishing a MECC, Relief or Recovery Centre, as soon as possible following a natural disaster event • Any revisions to damage estimates including project management costs

12. Ineligible costs • Include: • Normal maintenance & administration costs including salaries, day labour costs & other ongoing administrative type expenditure which would have been incurred even if the natural disaster had not occurred • Costs associated with restoring natural vegetation, natural banks, streams, rivers, beaches & undeveloped land • Costs incurred in mitigating, restoring or replacing an asset to a more disaster resilient level or higher level of service (unless otherwise agreed)

13. Lessons Learned over the past three years! • Engage with DTF & local VicRoads officers as soon as possible after an event • Communicate with DTF & local VicRoads officers regularly on eligibility issues, i.e. alerting DTF when an advance payment is needed urgently to assist council with cash flow • Organise your procurement process • Develop clear systems to assist with the collection of eligible costs

14. More Lessons Learned • Prioritise repair works to meet the allowable time period i.e. hire additional external project manager/engineers & establishing a Flood Repair Office • Clear communication between the MERO, Engineering and Finance teams, and CEO • Seek advice from other experienced Councils • Submit regular claims to DTF at least quarterly

15. NDFA/NDRRA – future expectations • More reporting to Commonwealth including evidence of public acknowledgement • NDRRA Review of Insurance Arrangements – provision of essential public asset registers and detail around insurance arrangements to DTF by Councils (December 2013/January 2014)

16. Further information • Website http://www.dtf.vic.gov.au/Victorias-Economy/Natural-disaster-financial-assistance • Email address: NDFA@dtf.vic.gov.au