Health block funding model for
Aboriginal community controlled
health organisations
Information sheet
Introduction
The Department of Health has developed the Simplified Funding and Reporting reform to implement a block
funding model for Aboriginal Community Controlled Health Organisations (ACCHOs).
The Department of Health aims to:
• reduce the administrative burden on ACCHOs
• provide flexibility in the use of funding to ACCHOs to reflect community needs
• improve funding and simplify data requirements
What’s new for ACCHOs
Recurrent funding lines have been combined into fewer and larger ‘ACCO Services’ activities. Activities that
make up the new ‘ACCO Services’ activities will be listed in the ACCHOs’ service agreement and will be
available on the Funded Agency Channel (refer to <www.fac.dhs.vic.gov.au>).
The new Department of Health ‘ACCO Services’ activities for recurrent funding to Aboriginal organisations are
listed in the following table.
Table 1 Health ‘ACCO Services’ activities
Health ACCO Services activities
ACCO Services – Aged & Home Care 13227
ACCO Services – Acute Health 11116
ACCO Services – Drug Services 34078
ACCO Services – Mental Health 15099
ACCO Services – Primary Health 28088
ACCO Services – Public Health 16461
Block funding
This new way of funding provides an Aboriginal organisation with greater freedom in the way funds are used to
meet the needs of the community.
The Department of Health is implementing Block funding arrangements for recurrent health funds for Aboriginal
organisations.
Each ‘ACCO Services’ activity or ‘bucket’ includes sub activities that describe the programs or ‘jam jars’.
ACCHOs are accountable for the delivery of program outcomes as negotiated through their funding agreement.
Department of Health
Program accountability will be negotiated with the regional office following local negotiation and approval
processes.
ACCHOs can negotiate flexible use of funds with their region. The region will record the conversation and reflect
the change in the service agreement.
Block funding also means that there will be less time spent on formal approval for redirecting funds to meet
community identified priorities.
How does block funding work?
A fundamental principle of the new block funding arrangements is that changes to the service mix will be
determined at the local level and negotiated with the region.
Any negotiation with regions for redirecting funds should take into account broader health objectives and
consider the organisations’ capacity to deliver outcomes.
In a block funding model, ACCHOs will have the flexibility to move funds from one ‘bucket’ to another, as well as
have one ‘jam jar’ to another, to address local priorities.
The service standards and guidelines for each program area will still apply.
What is negotiated?
The organisation will have a discussion with their region. The negotiation will determine use of flexible funds to
meet the objectives and deliverables of locally identified priorities.
The organisation remains accountable for all program deliverables.
During regular visits with ACCHOs, regions will discuss the organisation’s progress in implementing their
programs.
Additionally, ACCHOs will have the opportunity to discuss options for use of funds across the range of ACCHO
service delivery.
What is in and out of scope for funding?
All Department of Health programs other than Home and Community Care (HACC) are in scope for flexible use
of funding based on these guidelines.
What does this mean for HACC?
Within HACC, funding is only flexible between HACC programs or ‘jam jars’ and cannot be transferred to any
other Department of Health funding category or ‘buckets’.
Negotiations over the targeting of HACC funding should be within the context of broader HACC objectives and
regional priorities.
Reporting
Organisations will remain accountable for their program objectives. Reporting has not changed at this point in
time.
Organisations are expected to participate in round table reporting, held at a frequency as agreed by the
department’s regional office.
The Department of Health is currently in consultation with the Commonwealth Department of Health and Ageing
regarding the development of a web-based reporting tool.
Authorised by the Victorian Government, Melbourne. To receive this publication in an accessible format, phone
9096 9389 or email <aboriginalhealth@health.vic.gov.au>.
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Department of Health