NFP funds rollout on track: report

Auditor General Colin Murphy has released a report on the not-for-profit sector, examining the implementation of recent state funding increases for NFP groups.

The report provides a positive outlook, asserting that agencies responsible for managing the rollout of the additional funding performed their roles efficiently and accurately, in most cases.

In the 2011-2012 budget, the not-for-profit sector received a funding increase of more than $600 million over four years, to be introduced in two phases.

The first phase involved a 15 per cent funding increase to all eligible not-for-profit organisations as of July 1 2011.

Mr Murphy said this first stage had been successfully introduced and generally well managed, despite the limited timeframe afforded to agencies to identify eligible contracts, and subsequently calculate the funding entitlement. 

“Some errors were found in agencies’ calculation of the funding entitlement of each not-for-profit organisation, however these were identified and addressed during the rollout of funds,” he said.

“Feedback from the not-for-profit sector has been positive and it is encouraging to see the collaborative approach that has been taken by all agencies involved to deliver these important reforms.”

The second phase of the scheme will involve several reforms to reduce the sector’s administrative burden, while also providing a further 10 per cent funding increase (on average).

In the ‘Sustainable Funding and Contracting with the Not-For-Profit Sector – Component I’ report, Mr Murphy identified the increasing role of the not-for-profit sector in delivering community services on behalf of the state government.

“In recent years government has recognised the need to ensure the ongoing sustainability of the sector and a key part of this is addressing an identified shortfall between the level of support provided to the not-for-profit sector and the cost of doing so,” Mr Murphy said.