Policy No:
I40
January 2013
This policy replaced the following Briefing Papers, which were originally developed to clarify the Disability Services Commission’s position and formalise current practice:
· 10/96 - Policy for Replacement of Motor Vehicles for Funded Non-Government Agencies;
· 12/96 - Policy on Purchase of New Motor Vehicles; and
· 17/97 - Policy on Lease of Motor vehicles.
This updated policy is to assist the Commission’s funded organisations in the preparation of their submissions for financial assistance for the purchase of new motor vehicles and replacement of existing modified motor vehicles dedicated to the provision of Commission funded activities.
This policy is based on the rationale that funded organisations, in most cases, will be able to negotiate a nil or minimal changeover cost when replacing an existing standard motor vehicle. It is recognised, however, that replacement of modified motor vehicles may require a higher changeover cost.
Policy StatementThe purpose of this policy is to communicate the principles and processes relevant to the allocation of funding for motor vehicles to Non-Government Organisations by the Disability Services Commission (Commission).
Definition
This policy applies to new vehicles purchased by Commission funded organisations, for the provision of contracted services.
Policy Statement (continued)
The Commission will only provide funding for:
§ the purchase of new standard vehicles;
§ the purchase of vehicles for modification;
§ the cost of eligible modifications, up to $15,000; and
§ replacement of modified vehicles.
Criteria For The Provision Of Funding
Funding is provided when the following criterion are met (only applicable to vehicles funded through the Commission) and based upon the availability of funds for the process.Organisations must demonstrate that:
§ the vehicle is an essential requirement for the specific use of Commission funded activities;
§ the vehicle is for the use of organisations and not for the exclusive use of one individual in an organisation;
§ the vehicle is required for individuals without skills to use public transport;
§ the vehicle is required to meet the needs of a number of individuals and with a high usage pattern. Vehicle usage has to be considered in the context of the total service required and vehicle availability. Number of vehicles is dependent on the number of individuals requiring transport assistance and the pattern of usage in accordance with the program daily timetable. (see Attachment 3: Framework for Needs Analysis);
§ the funds are used solely for the purchase and not for operational expenses of motor vehicles, including repairs, maintenance, licensing and insurance. These are the responsibility of the organisation;
§ the vehicle is the most fuel efficient and economical (both short and long term) for the intended use. The basic model that meets the minimum requirements should be selected;
§ the organisation has a cost-effective motor vehicle policy in respect to the purchase, use, maintenance and replacement of motor vehicles;
§ the organisation can provide quotes to confirm cost of vehicle. Organisations are required to return any excess funding or the Commission can make a deduction from future grant payments, if preferred;
§ the vehicle is a NEW vehicle, not second hand; and
§ the organisation considers the WA Motor Industry Foundation (Wheels for Hope) when selling a modified vehicle.
Policy Statement (continued)
Purchase of New Vehicles (standard and modified)
§ The Commission can provide financial assistance for the purchase of new vehicles up to 100 per cent of the purchase price, including some set-up costs (See Attachment 1: Non-Recurrent Funding of Motor Vehicles).
§ The Commission can provide financial assistance, to a maximum of $15,000, for eligible vehicle accessories and modification costs.
Replacement of Vehicles
Standard
§ The Commission does not provide funding for the replacement of standard motor vehicles.
Modified
§ The Commission and funded organisations have a shared responsibility to provide funding for the replacement of modified motor vehicles. Funding will only be considered for the purpose of delivering the funded activities.
§ The Commission provides financial assistance for the replacement of modified motor vehicles used for the purpose of delivering the funded activities. Modified motor vehicles include buses or vans requiring modifications or installation of hoists and wheelchair lifts. Funding will only be considered when the vehicle has reached 100,000kms or five years old, whichever comes first.
§ The financial assistance provided by the Commission for replacement of modified motor vehicles is 90 per cent of the net changeover cost of the new unmodified motor vehicle, excluding operational costs (see Attachment 1: Non-Recurrent Funding of Motor Vehicles). The remaining 10 per cent of the cost of the unmodified motor vehicle is the responsibility of the organisation.
§ The Commission will provide financial assistance for the cost of eligible accessories and modifications up to a maximum of $15,000.
Each application will be treated on its merit.
The Commission is committed to the continuous improvement of its services. It will therefore, review its policy on Funding to Purchase Motor Vehicles For Funded External Organisations.
In addition, formal complaints can be lodged through the Commission’s existing formal complaint mechanism by contacting the Consumer Liaison Officer. Telephone (08) 9426 9244; toll free 1 800 998 214; TTY (08)94269315 Email .
Date: January 2013
For enquiries contact: ManagerBusiness Services Unit
Telephone (08) 9426 9624 Toll Free 1 800 998 214
TTY (08) 9426 9315
Other relevant Policies:
· Capital Policy
This Policy Information Sheet replaces the following Briefing Papers:
· No 10/96 – Policy for Replacement of Motor Vehicles for Funded Non-Government Agencies;
· No 12/96 – Policy on Purchase of New Motor Vehicles;
· No 17/97 – Policy on Lease of Motor vehicles.
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Policy No:
I40
29 January 2013
Attachment 1
Non-Recurrent Funding Of Motor Vehicles
Item / Funded / Additional InformationNew
(100%) / Replacement
(90%)
Purchase of vehicle / ü / ü / Purchase price including delivery
Air-conditioning / ü / ü
Window tinting / ü / ü
Modifications / ü * / ü * / Up to a maximum of $15,000
Stamp duty / r / r
Cruise control / r / r
Floor mats / r / r
Metallic Paint / r / r
Mudflaps / r / r
Insurance / r / r / Organisations are responsible for operational costs related to vehicles
Registration and Fees / r / r / Organisations are responsible for operational costs related to vehicles
Communication Equipment / r / r / Organisations are responsible for operational costs related to vehicles
Note: Not all items could be included in this table. Items not listed here will be considered for funding against operational requirements at the time of purchase.
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Policy No:
I40
29 January 2013
Attachment 2
Procedures for Applying For Funds For New Or Replacement Vehicles
1. Before considering the purchase of a new motor vehicle or replacement of an existing modified motor vehicle, organisations must demonstrate in writing to the Commission the continued need and justification for the vehicle. In addition, organisations should investigate the possibility of alternate funding options.
2. Organisations should comply with the competitive pricing process and demonstrate compliance by either:
§ providing three written quotations obtained from different suppliers to establish the best price. Quotations from suppliers should include the specifications of the replacement vehicle, such as type, model, make, manufacturer, class, number of seats, accessories, base price, and cost of modifications. The quotations from suppliers and the organisation’s recommendation should be attached to the application to the Commission; or
§ demonstrate common use arrangement. Eligible organisations (PBI) can gain access to common use arrangements through the Department of Finance.
3. Organisations should select the most fuel efficient and economical vehicle (both short and long terms) for the intended use. The basic model that meets the minimum requirements should be selected.
4. If an organisation upgrades a vehicle type or specification when a vehicle is replaced, it must demonstrate that the upgrade is in accordance with the specific operational need of the organisation.
5. The Commission will individually evaluate applications from organisations for replacement of modified motor vehicles. The evaluation will be based on the following criteria:
§ demonstrated need, supported by a detailed “needs analysis”;
§ age, kilometre travelled and condition of the existing vehicle;
§ replacement with an economic and cost effective model; and
§ any other relevant factors.
6. On the basis of cost efficiencies, funding will be considered for the replacement of modified vehicles every 100,000kms or five years.
7. The Commission will notify organisations in writing of the outcome of their applications.
8. Subsequent to the notification of approval in writing by the Commission, organisations should proceed to order the motor vehicle and arrange the necessary modifications.
9. Payment of financial assistance will be made to organisations on receipt of the formal acceptance and signing of a Variation to Service Agreement.
10. As part of the conditions of financial assistance, organisations are required to provide the Commission proof of purchase of the replacement vehicle. Copies of supplier invoices, delivery docket and registration certificate are to be submitted to the Commission within a fortnight of delivery/registration of the motor vehicle.
11. The financial assistance provided to organisations is considered an advance payment based on quotes. Organisations are required to return any excess funding to the Commission.
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Policy No:
I40
29 January 2013
Attachment 3
FRAMEWORK FOR NEEDS ANALYSIS
1. Number of service users, for each day of service.
2. Number of individuals who use wheelchairs and other service users who may require extra space due to size, challenging behaviours, etc.
3. Number of current vehicles and the seating capacity of each vehicle.
4. The number of staff and consumers who use the vehicle each day and the reasons why.
5. Total number of seats required in each day (summary of points 1,2 & 4) and total number of seats available.
6. Any potential individuals coming to the organisation and the implications this has on vehicle capacity.
7. Other options considered to meet the need for another vehicle (eg modified taxis/public transport).
8. Type of vehicle required with appropriate quotes.
9. Must require transport (not able to use public transport).
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