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Information webinar Q&A

This page provides answers to the questions you asked during the annual accountability information webinar that DCJ hosted on 30 July 2020, as well as clarifies and gives further detail about reporting annual accountability for 2019–2020.

The questions are grouped under topics to help you find what you're looking for. You can also use your browser search function to find specific words and terms.

General

  1. How long will it take to complete all the required details in the Contracting Portal?
  2. How do I find out who my DCJ contract manager is?
  3. I’m new to the business. How do I obtain login details for the Contracting Portal?
  4. Is a Transitional Advocacy Funding (TAFS) grant considered a contract?  Where do we complete our acquittal for the grant?
  5. Is Rent Choice reported as contract-related income?
  6. Our contract ends on 31 December 2020 and we received all of our funds in the 2019–2020 financial year.  How does this affect our ability to report to the full extent on the contract?
  7. Our corporate year end is 31 December, which means DCJ requires the audited accounts by 30 April. However, our contract year end is 30 June and the contract accounts we provide are 1 July to 30 June. Are there any issues here?
  8. Re item 13 on the contract-level form: Do we report as per the deed of funding we were under during the 2019–2020 reporting period or the Human Services Agreement which we have been contracted under for the 2020–2021 financial year?
  9. How and where we can add authorised signatories who are able to sign off on DCJ documentation?

Corporate-level reporting

  1. Re question 2 on the corporate-level form: Does DCJ have a definition for an Aboriginal organisation?
  2. Re questions 3 and 4 on the corporate-level form (number and percentage of Aboriginal staff): Does this include Aboriginal board members?
  3. If we have multiple contracts, do we need to complete the corporate-level form for each contract (so multiple times)?
  4. Does all financial reporting to DCJ have to be through an audited report or is there a certain level of funding where it doesn't have to be audited?

Contract-level reporting

  1. What does ‘Unspent funds dealt with’ by 18 December 2020 mean? Does it include DCJ having approved (if this is the case) the funds to be carried forward into the 2020–2021 financial year, and that the approval will be before 18 December 2020?
  2. Re item 3 on the contract-level form (prior year’s unspent funds): Does this refer to a refund of funds deducted?
  3. Re item 4 on the contract-level form (income or payments in advance received in previous financial years): Is this amount prepopulated?
  4. Re item 5 on the contract-level form (interest earned on all DCJ funds): Do you have a suggested method for calculating interest if no separate bank account is used for the contract funds?
  5. Re item 5 on the contract-level form (interest earned on all DCJ funds): If the organisation as a whole does not earn interest, but pays interest, will the amount be $0?
  6. Re item 6 on the contract-level form: Why can’t service providers depreciate assets purchased using DCJ funds? If an asset isn't sold but eventually outlives its usefulness, can we include it in the depreciation schedule?
  7. Re item 7 on the contract-level form (other contract-related income): What are some examples of what is to be included?
  8. Where do we report reimbursements for things like laptops and driving lessons? Are they captured in item 1 on the contract-level form (income received from DCJ) or do we need to include them at item 7 (other contract-related income)?
  9. Re item 8 on the contract-level form (adjustment for income or payments in advance): Is there a written explanation in the support documents?
  10. Re item 8 on the contract-level form (adjustment for income or payments in advance): Is the amount a double recording of funding in advance already included at items 1 and/or 4?  Or is it the amount in advance x 2?
  11. If salary expenditure is greater than salary and wages, do I need to complete items 10–14 on the contract-level form, or just item 9?
  12. What is a reasonable percentage for indirect contract administration costs?
  13. We apply 100% on the funds paid by DCJ to pay the wages for two delivery staff plus a bookkeeper (6 hr/week) and half the wages of a manager. Do the wages on the manager — who has to deal with all the partnerships and meetings, TEI reforms and implementation, manage DEX and accountability etc. — and the bookkeeper count as indirect administration costs?
  14. Please clarify ‘indirect contract administration costs’. The web page indicates that rent, utilities, insurances, etc. are classified as indirect contract administration costs. However, the PDF guide to Reporting annual accountability 2019–2020 lists these types of expenses as direct contract-related costs.
  15. Is there a set amount of funding that can be used for the purchase of assets?
  16. Re the number of full-time equivalent (FTE) employees question in the additional information section on the contract-level form: Can this field be corrected? The number entered is converted to a dollar value and it rounds it to the nearest 1.
  17. Re the number of full-time equivalent (FTE) employees question in the additional information section on the contract-level form: How do I calculate this to account for part-time staff?
  18. Re the number of Aboriginal staff in the additional information section on the contract-level form: Do we only need to give the number of Aboriginal staff? Do we have to prove Aboriginality?
  19. Re the percentage of Aboriginal staff and clients questions in the additional information section on the contract-level form: Can this field be corrected? The numbers entered are converted to a dollar value.

COVID-19 additional funding and support

  1. What additional funding did DCJ provide to support the sector during the COVID-19 pandemic?
  2. Where do we report COVID-19 funding received through the Australian Taxation Office (ATO) for cash flow boost or JobKeeper?
  3. How do we report special COVID-19 payments received from DCJ? There is no separate agreement.
  4. Can we rollover unspent COVID-19 payments, or do we need approval from the department?

Permanency Support Program (PSP)

  1. For OOHC providers (in particular Residential Care providers), are workers compensation insurance premiums reported as a direct or indirect contract cost?
  2. The document 'Reporting annual accountability 2019–2020' has a special note for Permanency Support Program (PSP) providers that payments for alternative care arrangements (ACA) must have a separate line in the income and expenditure statement. Does this also apply to Complex Needs Payments?
  3. Re item 7 on the contract-level form (other contract-related payments): we have accrued income based on what we believe the Permanency Support Program (PSP) clients should be paid by DCJ. Since the reconciliation has not been completed by DCJ, this figure may change once this reconciliation is done. Should we include these? Also in relation to Complex Needs Payments, we have not received confirmation from DCJ whether you agree with our figures so we won't be able to accrue this income.AT they to be included at item 7?
  4. How do we report alternative care arrangement (ACA) reimbursements?
  5. Re item 1 on the contract-level form (income received from DCJ): For Permanency Support Program (PSP) providers, does this prepopulated figure include payments for alternative care arrangement (ACA) and Complex Needs Payments?
  6. How do we reflect underpaid amounts we have accrued due to DCJ’s pending placement numbers reconciliation?
  7. Do we need to report prior year unspent funds for Permanency Support Program (PSP) funding?
  8. Re item 2 on the contract-level form (approved carried-forward unspent funds): is this the same as retained surplus? And is a 2019 retained surplus for a Permanency Support Program (PSP) contract required to be shown at this item?

Questions and answers

1. How long will it take to complete all the required details in the Contracting Portal?

It should take less than an hour, depending on complexity and your familiarity with the process. The answers to most of the questions in the Contracting Portal will be located:

  • in your income and expenditure statement for the contract-level form, and
  • in your full organisation financial statements for the corporate-level form.

So have those documents on hand to assist you when entering your responses.

Also, the questions don’t vary very much from year to year, so this makes it easier for you to complete the forms.

Use the guide to Reporting annual accountability 2019-2020 and other resources to assist you to prepare for the questions.

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2. How do I find out who my DCJ contract manager is?

Your DCJ contract manager for the contract is listed in two places in the Contracting Portal.

When you navigate to a Program Level Agreement (PLA) record, the contract manager is listed on the top on the screen with the rest on the PLA details. You will also find the contract manager's details on the bottom on the Acquittals details page, under the form.

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3. I’m new to the business. How do I obtain login details for the Contracting Portal?

Send an email to COMSNGOSupport@facs.nsw.gov.au and someone will assist you.

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4. Is a Transitional Advocacy Funding (TAFS) grant considered a contract?  Where do we complete our acquittal for the grant?

Yes. The TAFS grant is considered a contract.

You’re required to acquit the grant by reporting annual accountability through the Contracting Portal, using the forms explained during the information webinar.

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5. Is Rent Choice reported as contract-related income?

No. Rent Choice isn’t considered contract-related income, as this funding is targeted at an individual client.

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6. Our contract ends on 31 December 2020 and we received all of our funds in the 2019–2020 financial year. How does this affect our ability to report to the full extent on the contract?

You’re only required to report on the income that relates to the 2019–2020 financial year.

Although item 1 on the contract-level form includes the total funding you were paid, list the funding allocated to the July–December period at item 8 as a negative figure, reducing the income that you’re acquitting. Refer to the explanation for item 8 on page 17 of the guide to Reporting annual accountability 2019–2020.

You’ll report the funding you received for July–December in the 2020–2021 accountability process.

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7. Our corporate year end is 31 December, which means DCJ requires the audited accounts by 30 April. However, our contract year end is 30 June and the contract accounts we provide are 1 July to 30 June. Are there any issues here?

There are no issues with this.

DCJ contracts, in the majority of cases, are based on the July–June financial year and payments are made in line with this period.

Simply submit your contract-level accountability by 18 December 2020, and the corporate accountability by 30 April 2021.

For further information, refer to ‘Due dates for submissions’ on page 3 of the guide to Reporting annual accountability 2019–2020.

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8. Re item 13 on the contract-level form: Do we report as per the deed of funding we were under during the 2019–2020 reporting period or the Human Services Agreement which we have been contracted under for the 2020–2021 financial year?

Report your annual accountability as per the Funding Deed if you were working under a Program Level Agreement contract document in the 2019–2020 financial year.

For contracts that have transitioned to the Human Services Agreement, you’ll report against that in the 2020–2021 accountability process.

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9. How and where we can add authorised signatories who are able to sign off on DCJ documentation?

We’re no longer requiring you to report a list of authorised signatories as part of your annual accountability reporting.

However, you can provide the details of your board or committee members, as well as key executives, in the Contracting Portal.

  1. Add the individuals as ‘users’.
  2. In their job title, indicate the position that they hold on the governance body or that they are an authorised signatory.
  3. You don’t need to change their status to ‘active’ nor do you need to give them a user type if they won’t be required to access the portal.

Further instructions on adding a user to the portal can be found in the Help menu in the portal.

For contract-level reporting, fill in, sign and upload the Annual accountability certification for contract level accountability. This certifies that your organisation met the financial responsibilities and contractual obligations for the reported financial year, including that you:

  • provided services as agreed in the contract
  • complied with the activities and performance requirements stated in the applicable Program Guidelines or Program Specifications, and achieved the results required
  • have the ability to repay any unspent funds, if required
  • collected and provided the data and information required, and that it’s true and correct.

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10. Re question 2 on the corporate-level form: Does DCJ have a definition for an Aboriginal organisation?

We’ve asked you to self-determine if your organisation identifies as Aboriginal, and state the basis for this determination. For more information, refer to the explanation for question 2 on page 10 of the guide to Reporting annual accountability 2019–2020.

We’ll review the list of self-determined Aboriginal organisations after the end of this accountability period, and may take some advice at that point if there are any areas of contention.

At the moment, DCJ reports Aboriginal organisations based on whether they’re either registered with the Office on the Registrar of Indigenous Corporations (ORIC), have ‘Aboriginal’ in their organisation name, or we know from another means.

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11. Re questions 3 and 4 on the corporate-level form (number and percentage of Aboriginal staff): Does this include Aboriginal board members?

No, members of the governing body aren’t included.

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12. If we have multiple contracts, do we need to complete the corporate-level form for each contract (so multiple times)?

No.

You’re only required to complete the corporate-level accountability form once for your organisation, regardless of the number of contracts that you have with DCJ.

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13. Does all financial reporting to DCJ have to be through an audited report or is there a certain level of funding where it doesn't have to be audited?

Whether the organisation-level financial statements are required to be audited depends on many factors. For example, the organisation's constitution, incorporation type, registration type, annual turnover and total assets. Obtain independent advice if you‘re unsure of your organisation’s status.

Our Funding Deed and Human Services Agreement require you to submit the audited financial statement if your organisation is required to have your financial statements audited under any Australian law.

The contract-level income and expenditure statement submitted to DCJ is not required to be audited. However, you may still submit audited contract-level financials.

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14. What does ‘Unspent funds dealt with’ by 18 December 2020 mean? Does it include DCJ having approved (if this is the case) the funds to be carried forward into the 2020–2021 financial year, and that the approval will be before 18 December 2020?

‘Unspent funds dealt with’ means your DCJ contract manager will have made arrangements with you, by 31 March 2021, for recovering unspent funds, if that’s required.

Note that this is expected to be completed by 31 March 2021 and not 18 December. Please refer to slide 6 of the slide deck for the information webinar.

Our unspent funds policy for 2019–2020 is explained in ‘Repaying or retaining unspent funds’, commencing on page 6 of the guide to Reporting annual accountability 2019–2020.

Unspent funds won’t be recovered if:

  • the amount is $250 or less, or
  • the contract stipulates that unspent funds may be retained; for example, for the Permanency Support Program, or
  • DCJ has paid the funds in advance for use in future financial years, or
  • the program manager has authorised you to retain the unspent funds; for example, funds from 2018–19, or as previously authorised by the program manager.

In addition, we won’t recover unspent special COVID-19 payments we made to you this financial year, although we do expect you to spend them as soon as possible in the 2020–21 financial year. Also note that COVID-19 Emergency Action Payments made to PSP and OOHC Contracted Care providers are subject to monthly reconciliation.

This year, we’re not accepting any applications for consent to carry forward unspent funds that fall outside of the exceptions above.

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15. Re item 3 on the contract-level form (prior year’s unspent funds): Does this refer to a refund of funds deducted?

Yes.

Prior year unspent funds that were withheld from one or more of your quarterly payments must be reported at item 3. Enter the dollar amount of payments withheld by DCJ during the 2019–2020 financial year to recover unspent funds for the 2018–2019 financial year.

Refer to the explanation for item 3 on page 16 of the guide to Reporting annual accountability 2019–2020.

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16. Re item 4 on the contract-level form (income or payments in advance received in previous financial years): Is this amount prepopulated?

No. Only item 1 is prepopulated. The system is unable to pick up any information from the previous year's forms.

For item 4, enter the amount of any income or payments in advance your organisation received from DCJ in previous financial years.

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17. Re item 5 on the contract-level form (interest earned on all DCJ funds): Do you have a suggested method for calculating interest if no separate bank account is used for the contract funds?

You may use your own judgement, however, the method must be reasonable and justifiable.

Some organisations use a pro-rata method to allocate interest. To do this:

  1. Calculate the amount of funding for the contract as a percentage of all funding held in the same account during the financial year.
  2. Apportion the interest earned for the contract using this percentage.

Refer to the explanation for item 5 on page 17 of the guide to Reporting annual accountability 2019–2020.

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18. Re item 5 on the contract-level form (interest earned on all DCJ funds): If the organisation as a whole does not earn interest, but pays interest, will the amount be $0?

Yes, that’s correct.

Also, if reporting interest, be sure to:

  • report interest earned on the DCJ contract funds at item 5
  • report interest paid as expenditure at either item 11 (direct contract-related costs) or item 12 (indirect contract administration costs), depending on the nature of the expense. Refer to Q&A #26 for an explanation of direct versus indirect costs.

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19. Re item 6 on the contract-level form: Why can’t service providers depreciate assets purchased using DCJ funds? If an asset isn't sold but eventually outlives its usefulness, can we include it in the depreciation schedule?

You may depreciate assets in your organisation's accounts, as required by the accounting standards.

However, asset depreciation must not be reported in the income and expenditure statements for DCJ contracts nor in the form on the Contracting Portal.

This is because:

  1. Any asset purchased with DCJ funds has already been claimed outright as an expense against the contract funding in the financial year of purchase.
  2. To claim depreciation on the same asset in subsequent years is to claim an additional deduction for an expense already claimed.

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20. Re item 7 on the contract-level form (other contract-related income): What are some examples of what is to be included?

Other contract-related income your organisation may have received, or was yet to receive from DCJ for the 2019–2020 financial year, could include:

  • payments for alternative care arrangements (ACA)
  • Complex Needs Payments for PSP
  • Child Transition Payments (CTP)
  • proceeds from insurance
  • rent (subletting), hall hire, office space, etc.
  • income in arrears from DCJ
  • any other contract-related income could include, for example, reimbursement of workers compensation insurance or other program expenses.

Refer to the explanation for item 7 on page 17 of the guide to Reporting annual accountability 2019–2020.

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21. Where do we report reimbursements for things like laptops and driving lessons? Are they captured in item 1 on the contract-level form (income received from DCJ) or do we need to include them at item 7 (other contract-related income)?

Item 1 only includes payments made by DCJ under the contract. It doesn’t include any reimbursements your organisation received from other sources.

If you’ve included such things as expenses you’ve incurred in any of items 10–14 on the form, then you must include any applicable reimbursements at item 7.

Refer to the explanation for item 7 on page 17 of the guide to Reporting annual accountability 2019–2020.

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22. Re item 8 on the contract-level form (adjustment for income or payments in advance): Is there a written explanation in the support documents?

Yes.

Refer to the explanation for item 8 on page 17 of the guide to Reporting annual accountability 2019–2020.

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23. Re item 8 on the contract-level form (adjustment for income or payments in advance): Is the amount a double recording of funding in advance already included at items 1 and/or 4?  Or is it the amount in advance x 2?

Neither.

Item 1 is a prepopulated amount that includes all DCJ payments, and may include payments in advance for 2020–2021 or future years.

Item 4 is any amount paid in advance in 2018–2019 to be used in the 2019–2020 financial year or future years.

Item 8 is the adjustment, shown as a negative amount, to carry forward payments in advance for use in the 2020–2021 financial year or beyond.

Enter item 8 must as a negative figure, and exclude the amount of any funds DCJ paid in advance for use in the 2019–2020 financial year.

Refer to the explanation for items 8 on page 17 of the guide to Reporting annual accountability 2019–2020.

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24. If salary expenditure is greater than salary and wages, do I need to complete items 10–14 on the contract-level form, or just item 9?

At item 9, report salary and wages your organisation directly incurred in delivering the contracted services.

Report any on-costs related to those salary and wages at item 10, and report any indirect contract-related salary and wages at item 12.

Refer to the explanations for items 9, 10 and 12 on page 18 of the guide to Reporting annual accountability 2019–2020.

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25. What is a reasonable percentage for indirect contract administration costs?

There is no threshold set for indirect contract administration costs. However, we do analyse the data from all providers and contracts, and by program type.

These corporate overheads are a legitimate and necessary business expense, and can vary from organisation to organisation, depending on:

  • the size of the organisation
  • the complexity of running a particular program
  • the impact in the community, where having more impact may relate to higher administration costs and vice versa.

So, there’s no one-size-fits-all standard ratio or percentage that can be used to measure the reasonableness of the costs associated with managing a contract.

However, your organisation must be able to justify the amount reported.

Refer to the information about reporting indirect contract administration costs on our website.

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26. We apply 100% on the funds paid by DCJ to pay the wages for two delivery staff plus a bookkeeper (6 hr/week) and half the wages of a manager. Do the wages of the manager — who has to deal with all the partnerships and meetings, TEI reforms and implementation, manage DEX and accountability, etc. — and the bookkeeper count as indirect administration costs?

Indirect contract administration costs are all indirect costs incurred by you in support of delivering the services agreed in the contract with DCJ. These costs include all management, administrative, fixed and variable overhead costs.

Indirect contract administration costs are reported as expenses, separately for each contract you hold with DCJ, as part of your contract-level accountability. This is fully explained in the information about reporting indirect contract administration costs on our website

The wages for any of your organisation’s staff not directly involved in providing the contracted services are indirect costs. So, the bookkeeper’s wages are indirect costs.

If the manager is involved in the corporate side of your organisation, then include some on their costs as indirect. You could prorate the manager’s wages to reflect their different responsibilities.

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27. Please clarify ‘indirect contract administration costs’. The web page indicates that rent, utilities, insurances, etc. are classified as indirect contract administration costs. However, the PDF guide to Reporting annual accountability 2019–2020 lists these types of expenses as direct contract-related costs.

The allocation of your organisation’s expenses between direct and indirect costs will differ between contracts and depends on how the expenses incurred relate to the contracted services.

Any expenses incurred in support of delivering the contracted services are indirect costs, whereas any expenses incurred that were directly connected to achieving the outcome of the contracted services are direct costs.

For example, rent paid for a house where DCJ clients reside for a Permanency Support Program contract are direct costs because rent on the house is directly connected to providing the contracted services. But rent paid for an office used for administration work that has no direct contact with clients is an indirect cost because the office is only used in support of delivering the contracted services.

Organisations are expected to apply reasonable judgement when allocating the cost between direct and indirect costs, and be able to justify the apportionment.

Refer to the information about reporting indirect contract administration costs on our website for the definition and its application. If you have any questions, contact your DCJ contract manager.

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28. Is there a set amount of funding that can be used for the purchase of assets?

No.

However, we recommend your organisation performs a cost-benefit analysis to justify the amount allocated to an asset's purchase, so that it doesn’t affect delivery on the contracted services. Please refer to your contract and also contact your DCJ contract manager to ensure reasonable steps have been taken prior to purchase of any assets.

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29. Re the number of full-time equivalent (FTE) employees question in the additional information section on the contract-level form: Can this field be corrected? The number entered is converted to a dollar value and it rounds it to the nearest 1.

For the number of staff, type an ‘*’ followed by the number; this will stop the rounding up and also stop the ‘$’ from showing.

For the percentage of staff, type a ‘%’ followed by the number; this will stop the ‘$’ from showing.

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30. Re the number of full-time equivalent (FTE) employees question in the additional information section on the contract-level form: How do I calculate this to account for part-time staff?

Calculate the full-time equivalent by adding up all staff hours for the week (relevant to DCJ contracts) and divide by the number of hours regarded as a full-time position.

Base the full-time hours for a week on the relevant employment contract or award that applies to your organisation. Generally this would be 38 hours, but it may differ.

So, if your award sets full-time hours at 38 per week and you have five part time staff working a total of 138 hours per week, then the calculation is 138 divided by 38, which gives you the full-time equivalent of 3.63.

It’s important that you enter the amount to two decimal places.

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31. Re the number of Aboriginal staff in the additional information section on the contract-level form: Do we only need to give the number of Aboriginal staff? Do we have to prove Aboriginality?

We’ve asked you to provide the number of Aboriginal and Torres Strait Islander staff only. Count paid staff only.

Base this on information at hand, such as personnel records. You’re not required to undertake additional work or submit any evidence of Aboriginality. Nor are you allowed to require your staff to declare Aboriginality.

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32. Re the percentage of Aboriginal staff and clients questions in the additional information section on the contract-level form: Can this field be corrected? The numbers entered are converted to a dollar value.

For the number of staff, type an ‘*’ followed by the number; this will stop the rounding up and also stop the ‘$’ from showing.

For the percentage of staff, type a ‘%’ followed by the number; this will stop ‘$‘ from showing.

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33. What additional funding did DCJ provide to support the sector during the COVID-19 pandemic?

In response to the COVID-19 pandemic, DCJ provided additional funding to some homelessness, domestic violence, and child and family programs to enable the rapid response required to address the needs of certain vulnerable cohorts.

You may have received the additional payments for some programs, with instructions from DCJ on how they’re to be used. If you’re unsure, please contact your DCJ contract manager, who’ll be able to answer any questions.

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34. Where do we report COVID-19 funding received through the Australian Taxation Office (ATO) for cash flow boost or JobKeeper?

Report these as a corporate-level subsidy in your financial statements.

You don’t have to acquit the funds or report them as income for any of your of DCJ contracts.

This is explained in ‘Reporting COVID-19 Commonwealth subsidies’, on page 4 of the guide to Reporting annual accountability 2019–2020.

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35. How do we report special COVID-19 payments received from DCJ? There is no separate agreement.

Special COVID-19 payments were covered under a letter of variation.

If your organisation received a special payment from DCJ to assist with your response to COVID-19, it will be included on the form as income (item 1) for the applicable DCJ contracts.

It’s important that you include the unspent portion of any special COVID-19 payments received from DCJ at item 16 on the contract-level form, with any other unspent funds for the contract.

Also, in the additional information section on the contract-level form, you’re required to report:

  • whether you received a special COVID-19 payment from DCJ
  • broadly what your organisation spent it on
  • any unspent amount at the end on the financial year.

This is explained in ‘Reporting special COVID-19 payments from DCJ’, on page 5 of the guide to Reporting annual accountability 2019–2020.

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36. Can we rollover unspent COVID-19 payments, or do we need approval from the department?

The unspent portion of any special COVID-19 payments received from DCJ are not required to be returned.

However, we expect you spend these funds as early as possible in the 2020–2021 financial year.

This is explained at the top of page 7 of the guide to Reporting annual accountability 2019–2020.

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37. For OOHC providers (in particular Residential Care providers), are workers compensation insurance premiums reported as a direct or indirect contract cost?

Generally, workers compensation insurance for workers in Residential Care is reported as a direct cost at item 10 on the contract-level form because it’s expected the workers compensation insurance paid at contract level would mostly relate to direct care staff.

However, to reduce administration burden, you may report this at the corporate level (as an indirect cost).

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38. The document 'Reporting annual accountability 2019–2020' has a special note for Permanency Support Program (PSP) providers that payments for alternative care arrangements (ACA) must have a separate line in the income and expenditure statement. Does this also apply to Complex Needs Payments?

Yes. If you’ve received any payments outside of our contracting payments system (for example, on an invoice basis) for ACA and Complex Needs Payments, include a separate line disclosure in your income and expenditure statement.

In addition, report such payments at item 7 on the contract-level form (other contract-related income).

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39. Re item 7 on the contract-level form (other contract-related payments): We have accrued income based on what we believe the Permanency Support Program (PSP) clients should be paid by DCJ. Since the reconciliation has not been completed by DCJ, this figure may change once this reconciliation is done. Should we include these? Also in relation to Complex Needs Payments, we have not received confirmation from DCJ whether you agree with our figures so we won't be able to accrue this income.AT they to be included at item 7?

Yes. Include Complex Needs Payments at item 7, and include a separate line item in the income and expenditure statement.

We understand there are cases of unreconciled amounts. In these cases, use the accounting standards of revenue recognition criteria to accrue such income and report accordingly at the contract level. If required, you may need to seek further advice from your external accountant or auditor.

We also understand that the accrued amount may differ to actual income received at a later stage, and subsequent adjustment to accrual may be required.

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40. How do we report alternative care arrangement (ACA) reimbursements?

Include payments for ACA at item 7 on the contract-level form, and include a separate line item in the income and expenditure statement.

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41. Re item 1 on the contract-level form (income received from DCJ): For Permanency Support Program (PSP) providers, does this prepopulated figure include payments for alternative care arrangement (ACA) and Complex Needs Payments?

No. Payments outside of our contracting payments system (for example, on an invoice basis) for ACA and Complex Needs Payments aren’t included at item 1.

Report such payments at item 7 on the contract-level form (other contract-related income), and include a separate line disclosure in your income and expenditure statement.

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42. How do we reflect underpaid amounts we have accrued due to DCJ’s pending placement numbers reconciliation?

Use the accounting standards of revenue recognition criteria to accrue such income and report accordingly at the contract level.

We also understand that the accrued amount may differ to actual income received at a later stage, and subsequent adjustment to accrual may be required.

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43. Do we need to report prior year unspent funds for Permanency Support Program (PSP) funding?

Yes. Report prior year unspent PSP funds at item 2 on the contract-level form (approved carried-forward unspent funds).

Note that these funds won’t be recovered.

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44. Re item 2 on the contract-level form (approved carried-forward unspent funds): is this the same as retained surplus? And is a 2019 retained surplus for a Permanency Support Program (PSP) contract required to be shown at this item?

Yes. These are the same thing.

And, yes, report unspent PSP funds for 2018–2019 at item 2.

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Last updated: 01 Sep 2020