Information sheet on funding withdrawals during financial year-end and roll-over processes
Contents
Key messages
End of financial year, roll-over and annual CSO indexation
Reduction in individualised funding for Individual Support Packages and Futures for Young Adults
Reduction in block funding for Disability and Mental Health Community Support Services - for clients who become NDIS participants up to 30 June 2017
Reduction in block funding for Disability and Mental Health Community Support Services - for clients who become NDIS participants from 1 July 2017
Client data refresh and recalculation of block funding averages from 1 July 2017
Examples of funding withdrawal timing over financial year-end and service agreement roll-over
Unspent 2016-17 funds and service agreement funding sufficiency
Disability Services funding sufficiency
Examples of funding withdrawal across service agreements
Information sheet on funding withdrawals during financial year-end and rollover processes1
Key messages
•This information sheet relates to funding from the Department of Health and Human Services.
•The timing of withdrawals for Disability and Mental Health Community Support Services block funding will be delayed during the financial year-end and roll-over processes.
•The timing of withdrawals for the Home and Community Care Program for Younger People will follow the in-kind arrangements.
•Terminations of funding related to clients who become NDIS participants up to 30 June 2017 will be processed as prior year adjustmentsin August 2017 and will be recouped from the September 2017 payment(except for funding related to HACC-PYP providers participating in in-kind arrangements).
•Service providers should carry over any unspent funds into the 2017-18 financial year as the department will be making retrospective service agreement variations back to a client's NDIS plan approval date.
•Block funding averages will be recalculated effective from 1 July 2017 and applied to withdrawals relating to clients who become NDIS participants from 1 July 2017.
End of financial year, roll-over and annual CSO indexation
The department’s ability to withdraw funding relating to the NDIS transition will be restricted during the annual process to roll-over service agreements and apply indexation increases on the Service Agreement Management System (SAMS).
Details regarding the timing of funding withdrawals over this period areprovidedin the following sections.
Reduction in individualised funding for Individual Support Packages and Futures for Young Adults
The withdrawal of individualised funding as clients become NDIS participants will continue each month.
Terminations of funding for ISPs and FFYAs related to clients who become NDIS participants up to 30 June 2017 will be processed as prior year adjustments and will be recouped from the next available payment.
Reduction in block funding for Disability and Mental Health Community Support Services - for clients who become NDIS participants up to 30 June 2017
Block funding withdrawals for in-scope disability services activities, including disability Supported Accommodation, and in-scope Mental Health Community Support Services (MHCSS) will not be carried out in June or July 2017.
Withdrawals of block funding relating to clients who become NDIS participants up to 30 June 2017, and where related funding has not yet been withdrawn, will be transacted in SAMS in August 2017.
These variations will be processed as prior year adjustments and will be recouped from the September 2017 payment.
These variations will use the 2016-17 block funding average for each provider and activity (and catchment area for MHCSS).
Reduction in block funding for Disability and Mental Health Community Support Services - for clients who become NDIS participants from 1 July 2017
Withdrawals of block funding related to clients who become NDIS participants from 1 July 2017 will commence on SAMS in September 2017 and impact on provider payments and cashflow from October 2017.
These variations will be based on an updated block funding average calculated for each provider and activity (and catchment area for MHCSS services).
Client data refresh and recalculation of block funding averages from 1 July 2017
The updated block funding average will be based on the client data collected in May 2017 and the service agreement funding for the provider and activity. The funding will include the July 2017 indexation (and will take account of any prior year adjustments to be transacted in August 2017.
Examples of funding withdrawal timing over financial year-end and service agreement roll-over
The following tables provide examples of the timing of funding withdrawal.
Table 1: Processing of funding withdrawals (in ISP system) over financial year-end and service agreement roll-over for Individual Support Packages and Futures for Young Adults
Withdrawal processing month / Treatment / Loaded into SAMS / Payment impacted from…April / standard variation / May / June
May / Prior Year Adjustment (PYA) / June / July - full recoupment for PYA
June / Prior Year Adjustment (PYA) / July / August - full recoupment for PYA
July / for plan approvals up to 30 June 2017: Prior Year Adjustment (PYA)
for plan approvals from 1 July 2017: standard variation / August / September - full recoupment for PYA, cash-flowed for plan approvals from 1 July
Table 2: Processing of funding withdrawals (in SAMS) over financial year-end and service agreement roll-over for other in-scope Disability and MHCSS activities
Withdrawal processing month / Treatment / Payment impacted from…April / standard variation / May
May / standard variation / June
June / n/a - no block funding withdrawals processed / n/a
July / n/a - no block funding withdrawals processed / n/a
August / for plan approvals up to 30 June 2017: Prior Year Adjustment (PYA)
for plan approvals from 1 July 2017: no block funding withdrawals processed / September - full recoupment for PYA
September / for plan approvals from 1 July 2017: standard variation / October
Unspent 2016-17 funds and service agreement funding sufficiency
Service providers should carry over any unspent funds into the 2017-18 financial year as the department will be making retrospective service agreement variations back to a client's NDIS plan approval date.
This will impact on future payments or, where the service provider has insufficient departmental funding remaining, require the provider to return funds requested via invoice.
Unspent funds should be available in an account from which the organisation can withdraw funds rather thana trust account.
Disability Services funding sufficiency
As departmental funding is withdrawn for clients who have become NDIS participants, a number of funding variation scenarios may eventuate depending on the level and type of department funding remaining. This will be reflected in where and whether the variation is processed within your service agreement/s.
A decision tree indicating the scenarios and the resultant withdrawal method is shown in below.
Disability Services: funding withdrawal scenarios
* Notes:
Funding withdrawals relating to clients who transition to the NDIS up to 30 June 2017 will be processed in August 2017 as Prior Year Adjustments.
Overall the amount of funding received by service providers from the department will comprise negative funding variations processed against NDIS impacted activities, offset by positive funding in other activities.
HACC-PYP funding will follow this procedure at the end of the in-kind arrangement.
Examples of funding withdrawal across service agreements
The following tables provide examples of the method of funding withdrawal as clients transition and funding is reduced.
Table 3: Sufficient funding remaining in FY against activity
Required variation: Withdraw $30,000 from Community Respite
Service Agreement / Service Plan / Activity / FY funding remaining before variation ($) / FY funding remaining after variation ($)Activity / Service Agreement / Provider / Activity / Service Agreement / Provider
Disability Services / Disability Services / Community Respite / 50,000 / 110,000 / 210,000 / 20,000 / 80,000 / 180,000
Therapy / 60,000 / 60,000
DHHS NGO / Homelessness Accommodation / Transitional Support / 100,000 / 100,000 / 100,000 / 100,000
Table 4: Insufficient funding remaining in FY against activity, sufficient funding remaining in FY against disability service agreement
Required variation: Withdraw $30,000 from Community Respite
Service Agreement / Service Plan / Activity / FY funding remaining before variation ($) / FY funding remaining after variation ($)Activity / Service Agreement / Provider / Activity / Service Agreement / Provider
Disability Services / Disability Services / Community Respite / 20,000 / 80,000 / 180,000 / -10,000 / 50,000 / 150,000
Therapy / 60,000 / 60,000
DHHS NGO / Homelessness Accommodation / Transitional Support / 100,000 / 100,000 / 100,000 / 100,000
Table 5: Insufficient funding remaining in FY against activity, insufficient funding remaining in FY against disability service agreement, sufficient funding remaining in FY against non-disability service agreement
Required variation: Withdraw $30,000 from Community Respite
Service Agreement / Service Plan / Activity / FY funding remaining before variation ($) / FY funding remaining after variation ($)Activity / Service Agreement / Provider / Activity / Service Agreement / Provider
Disability Services / Disability Services / Community Respite / 5,000 / 10,000 / 110,000 / -5,000 / 0 / 80,000
Therapy / 5,000 / 5,000
DHHS NGO / Homelessness Accommodation / Transitional Support / 100,000 / 100,000 / 100,000
NDIS Transition Recoupment / NDIS Disability Services funding recoupment (17159) / -20,000 / 80,000
Table 6: Insufficient funding remaining in FY against activity, insufficient funding remaining in FY against disability service agreement, in sufficient funding remaining in FY against non-disability service agreement, invoice required
Required variation: Withdraw $30,000 from Community Respite
Service Agreement / Service Plan / Activity / FY funding remaining before variation ($) / FY funding remaining after variation ($)Activity / Service Agreement / Provider / Activity / Service Agreement / Provider
Disability Services / Disability Services / Community Respite / 5,000 / 10,000 / 20,000 / -5,000 / 0 / 0
Therapy / 5,000 / 5,000
DHHS NGO / Homelessness Accommodation / Transitional Support / 10,000 / 10,000 / 10,000
NDIS Transition Recoupment* / NDIS Disability Services funding recoupment (17159)* / -10,000 / 0
Invoice raised for recoupment of $10,000 from service provider
* The NDIS service plan and activity have been created to ensure a negative adjustment to a non-disability service agreement is clearly shown as being the result of a withdrawal of disability funding
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© State of Victoria, Department of Health and Human ServicesApril, 2017.
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Information sheet on funding withdrawals during financial year-end and rollover processes1