Governance Framework for
Non-Statutory Agencies
funded by the HSE
Frequently Asked Questions
(September 2012)
Contents
Please note that answers to questions in relation to the following can be accessed by
either viewing the information on the page number opposite or by using ‘Ctrl & click’
to follow the link directly to the information.
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What is the Governance Framework ………………………
Reasons for Framework ……………………………………...
Benefits for HSE & Non-Statutory Agencies ………………..
Legislative Basis for Framework …………………………….
Standard Documents ………………………………………….
 Duration of Arrangements/Agreements. ……………………..
 Legal Aspects to Documents …………………………………
 Changes to Documentation …………………………………...
 Scope of Framework ………………………………………….
 Completing Schedules ………………………………………..
 National Lottery ………………………………………………
 Capital Funding ………………………………………………
 Agencies Receiving Small Grants ……………………………
 Threshold for Furnishing Audited Accounts …………………
 Governance Self Evaluation Questionnaire ………………….
 Register of Agencies & Arrangements / Agreements ………..
 National Agencies / Agencies Operating in a number of ISA’s
 Fostering & Boarding-Out Arrangements …………………….
 Guardian Ad Litem Arrangements ……………………………
 Arrangements with Individuals / Sessional / Locums ………..
 Commercial / For-Profit / Out-of-State Agencies …………….
 Agencies Refusing to Engage / Sign and Agreement …………
 Garda Vetting ………………………………………………….
 Tax Clearance …………………………………………………
 Insurance ………………………………………………………
 Variation / Exceptional Circumstances to Service Arrangement.
 Variation to Grant Aid Agreement …………………………....
 Further Advice & Guidance …………………………………..
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Frequently Asked Questions
Framework for Governance of Non-statutory Agencies
Q:
What is the Framework for Governance of Non-statutory Agencies?
A:
The Framework has been agreed by HSE Management Team and is designed
to improve the overall governance of arrangements under which the HSE provides
funding or grants to non-statutory agencies to provided health and personal social
services on its behalf or to assist with services similar or ancillary to services that the
HSE may provide.
Reasons for the Framework
Q:
Why was the Framework Introduced?
A:
The framework was introduced in order to implement the legislative
provisions of the Health Act, 2004 and to reflect the requirements for public
accountability whereby the HSE is legally obliged to account for all public
expenditure on health and personal social services. There is also a requirement to
ensure that value for money is being achieved. In this regard, the framework takes
account of the 2005 VFM report of the Comptroller and Auditor General on disability
funding.
A number of other factors impacted on the implementation of the framework
including: EU Public Procurement Legislation; Competition Authority; Framework
for Corporate & Financial Governance of HSE; HIQA.
Benefits for HSE & Non-statutory Agencies
Q:
What are the benefits to the HSE and to the Non-statutory Agencies of the
introduction of the framework?
A:
The key benefits of the framework are that it formalises a relationship between
both parties which seeks to address the needs of each in an open transparent way. It
ensures that agreements that are robust and equitable are put in place. They contain
formal specification of services to be provided in return for funding and agree clearly
defined service levels, outcomes and performance indicators thus enabling effective
monitoring of performance.
Legislative Basis
Q:
What is the legislative basis for HSE funding to non-statutory agencies?
A:
The main legislative basis for such funding is contained in the Health Act,
2004. Funding to some agencies in the area of children and family services is
provided under the Child Care Act, 1991.
Section 7 states that:
(5) In performing its functions, the Executive shall have regard to –
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(a) Services provided by voluntary and other bodies that are similar or ancillary to
services the Executive is authorised to provide,
Section 38 states that:
(1) The Executive may, subject to its available resources and any directions issued by
the Minister under section 10, enter, on such terms and conditions as it considers
appropriate, into an arrangement with a person for the provision of a health and
personal social service by that person on behalf of the Executive.
Section 39 states that:
(1) The Executive may, subject to any directions given by the Minister under section
10 and on such terms and conditions as it sees fit to impose, give assistance to any
person or body that provides or proposes to provide a service similar or ancillary to a
service that the Executive may provide.
In addition, the Child Care Act, 1991, makes provision for funding of agencies.
Section 10 states that:
A health board may, subject to any general directions given by the Minister and on
such terms or conditions as it thinks fit, assist a voluntary body or any other person
who provides or proposes to provide a child care or family support service similar or
ancillary to a service which the health board may provide under this Act—….
Standard Arrangement/Agreement Documents
Q:
Is there a standard set of Arrangements/Agreements for use with nonstatutory agencies?
A:
Yes, there are standard documents as follows:
(1) Service Arrangement (SA): This document includes 2 parts. Part 1 consists
of a number of standard clauses which are generic for all Arrangements and
Part 2 consists of 10 Schedules, the format of which is generic for all
Schedules however the content will vary depending on the service provided.
Care Group specific Schedules are available as follows: Acute, Children &
Families, Older Persons, Mental Health, Social Inclusion, Primary Care,
Palliative Care/Chronic Illness, Disability, Home Care Package (2012 tender)
and ‘Other’(i.e. For-Profit & Out-of-State).
Service Arrangements (including Care Group specific Schedules) are used in
the following instances:
- Section 38 SA used for a discreet group of 25 non-acute agencies & 15 acute
hospitals encompassed by the Employment Control framework. A list of these
agencies can be accessed on the HSE Intranet.
- Section 39 SA used for all other voluntary agencies in
receipt of annual funding from the HSE in excess of €250,000 per annum.
This document is also used when special Rapid, Clár, Drug & Alcohol, Dept
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of Education, Gaeltacht & CAWT funding of over €250,000 is provided by the
HSE (may also be used in cases under €250,000 at the discretion of the HSE).
- Section 10 SA used for all other voluntary agencies in
receipt of annual Section 10 Child Care Act funding from the HSE in excess
of €250,000 per annum (may also be used in cases under €250,000 at the
discretion of the HSE).
- ‘Other’ SA used for all For-Profit/Commercial and Out-of-State agencies in
receipt of funding from the HSE, regardless of funding amount or voluntary
status.
(2) Grant Aid Agreement (GA): This document consists of a number of
standard clauses which are generic for all Agreements and an appendix
(Schedule Service Specification) the format of which is generic for all
Agreements however the content will vary depending on the service provided.
The GA is used for all voluntary agencies in receipt of annual funding from
the HSE which is below €250,000 per annum and within the following
funding/agency category:
- Section 39, Section 10, Lottery, Clár, Rapid, CAWT, Gaeltacht, Drug &
Alcohol and Dept of Education.
Of note: Section 38, For-Profit/Commercial & Out-of-State agencies should
never be governed by a GA.
Duration of Arrangements/Agreements
Q:
What is the duration of a Service Arrangement (SA) and a Grant Aid
Agreement?
A:
Service Arrangements are designed to be multi-annual and generally covering
a period of 3 to 5 years. However, for 2012 it has been decided that the duration of all
new Service Arrangements should be restricted to the 24 month period from January
2012 to December 2013.
For Commercial for Profit Agencies or Out of State Arrangements the instruction is
for the Sa to be limited to the end of 31.12.2012.
The Schedules to the Service Arrangement must be reviewed and agreed annually
between the HSE and the Agency to reflect changes in levels of service, funding etc.
for the coming calendar year.
The Grant Aid Agreement runs for a maximum of one year and a new GA must be
signed for the coming calendar year if appropriate.
Explanation of Legal Aspects of the Standard Documents
Q:
Where can I get further information in relation to the legal aspects of the
Service Arrangement (SA) and Grant Aid Agreement (GA) Documents?
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A:
Guides have been prepared to the SA and GA documents which explain legal
terminology and offer guidance in relation to completing the documents. These can be
accessed on the HSE Website and Intranet.
Changes to Standard Documents
Q:
Can any of the clauses of the SA or sections of the GA standard
documents be changed or amended during discussions with agencies?
A:
No. The standard documents terms and conditions apply to all agencies and no
changes to the clauses of the Service Arrangement or the sections of the Grant Aid
Agreement may be made.
Scope of Governance Framework & Service Arrangement / Grant Aid
Agreement Documents
Q:
Which agencies fall within the scope of the Governance Framework and
require signed Service Arrangements or Grant Aid Agreements?
A:
All non-statutory agencies (both voluntary / community and commercial “for
Profit”) receiving funding from the HSE in respect of health and personal social
services fall within the scope of the framework and should have a signed Service
Arrangement or Grant Aid Agreement in place. Further detail on the category of
agency falling within the scope of the Framework can be accessed in the ‘Guide to
Completion of Governance Documents’ which is available on the HSE Intranet.
Completing the Schedules
Q:
Where can I get further information to assist in completing the Schedules
to the Service Arrangement?
A:
A guide to completing the Schedules has been prepared and can be accessed
on the HSE Internet and Intranet. Further advice may be obtained from your local
Lead Manager, Regional Lead or from the National Business Support Unit.
National Lottery
Q:
Should the Grant Aid Agreement (GA) be used for National Lottery
Funding?
A:
Yes, the agreement used for National Lottery funding is the Section 39 GA.
The funding amount should be entered in a separate column (column L) on the
National Register.
Where the grant is for capital purposes a Letter of Undertaking is required in relation
to the asset purchased or renovated. A standard letter of Undertaking is available on
the HSE Intranet.
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Capital Funding
Q:
Can the standard documents be used for agreements relating to Capital
Funding?
A:
No, the documents are designed to cover revenue funding only. Further
information in relation to capital funding should be obtained from your Estates
department, however revenue funding provided for minor capital may be included in
the arrangement.
Agencies Receiving Small Grants
Q:
Is there a simpler version of the Grant Aid Agreement (GA) available for
use where agencies are receiving very small grants from HSE?
A:
No, it is HSE policy that every agency receiving funding from HSE is required
to complete one of the standard documents. In the case of agencies receiving
relatively small amounts of funding, less detail will be required in the Grant Aid
Agreement.
For agencies receiving less than €50,000 in funding, a ‘Guide for Small Agencies’ is
available on the HSE website and Intranet. This will assist them in complying with
Grant Aid Agreement requirements.
A quick guide summarising the Agency’s requirements is also attached as an
appendix to the GA.
Threshold for Furnishing Audited Accounts
Q:
Does the threshold of €150,000 set out in Section 4.5 of the Grant Aid
Agreement refer to the organisations yearly total income or expenditure or to
funding received from HSE?
A:
Audited Accounts are required where the organisation’s total income or total
expenditure is above €150,000 irrespective of the source of the income or purpose of
the expenditure.
Governance Self Evaluation Questionnaire
Q:
What is the purpose of the Governance Self Evaluation Questionnaire and
is it required for each agency receiving funding?
A:
Each new agency in receipt of a funding grant of over €50,000 from HSE is
required to complete the questionnaire.
The primary purpose of the questionnaire is to provide a tool for the agency to focus
attention on good governance and to highlight areas where improvements in
governance may be required.
The HSE may also seek submission of this governance questionnaire as part of the
review process with existing Agencies if there are governance concerns.
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Register of Agencies and Arrangements/Agreements
Q:
Where are details of agencies receiving funding recorded?
A:
Each ISA is required to maintain a register which contains details of each
agency receiving funding during the year and containing key information relevant to
the Service Arrangement or Grant Aid Agreement.
Each Service Manager is responsible for ensuring that details of the arrangement that
they manage are recorded in the relevant local register.
The ISA nominated lead collates information for their ISA and the information is
rolled up through the Regional Lead into a national register which is maintained by
the National Business Support Unit.
Further information in relation to the register can be obtained from your local
nominated lead, the Regional Lead or the National Business Support Unit.
National Agencies or Agencies Operating in a number of ISAs
Q:
What is the position in relation to finalising arrangements with agencies
which have a national remit or which operate across a number of Integrated
Service Areas?
A:
It is the policy of the HSE to, where possible and practical, co-ordinate the
process of negotiating and managing Service Arrangements for non-statutory agencies
that provide services on a national basis or agencies providing services across a
number of ISAs.
In 2012 it has been agreed that a single Service Arrangement should be signed at
regional level. HSE managers involved in completing Arrangements/Agreements with
agencies operating in more than one ISA, should contact their relevant Regional Lead
for advice on which HSE manager is taking the lead in relation to a particular agency.
Separate Schedules for each ISA may be maintained if funding is streamed through
the areas separately.
Where the funding for a Region falls below €250K, a Grant Aid Agreement should be
used similar to the process as with Service Arrangements and identification of leads
should take place. (Where Agencies operate across region, the National Register
should be checked and where the overall HSE funding is in excess of the €250K
threshold a SA should be utilised.)
Advice on structures to support this will be available at HSE Regional Level.
Further advice and guidance should be sought from your Regional Lead or the
National Business Support Unit.
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Fostering & Boarding-out Arrangements
Q:
Can the Grant Aid Agreement (GA) be used for Fostering or Boardingout Arrangements?
A:
No, the GA is not appropriate for these types of arrangements with individual
host families which are governed by specific regulations. Further information may be
obtained from your local Child Care or Elderly Services sections.
However where an Agency manages the placements a Service Arrangement should be
in place to govern the contractual relationship with that agency.
Guardian Ad Litem Arrangements
Q:
Can the Grant Aid Agreement (GA) be used for Guardian Ad Litem
arrangements?
A:
No, the GA is not appropriate for Guardian Ad Litem arrangements as the
services are not provided on behalf of the HSE. Guardians are appointed by the Courts
to act in the best interest of children involved in family law proceedings.
Arrangements for Individuals / Sessional / Locum Services
Q:
Can the Grant Aid Agreement (GA) be used for arrangements with
individuals relating to sessional / locum services?
A:
No, the GA is not appropriate for locum/sessional services provided by
individuals. Advice in relation to the most appropriate documentation for such
arrangements should be sought from the local HSE Human Resource department.
Arrangements with Commercial / ‘For-Profit’ / Out-of-State Agencies
Q:
Which is the appropriate documentation to be used to formalise
arrangements with commercial /‘for-profit’ organisations?
- A:
A new Service Arrangement for use with ‘For-Profit’ / Commercial agencies
has been developed and should be used from 1st January, 2012. This ‘Other’
Service Arrangement should also be utilised with Out-of-State agencies.
Agencies Refusing to Engage in the Process or Sign an Agreement
Q:
What happens if an agency refuses to engage in the process of completing
the Schedules or refuses to sign the completed Service Arrangement or Grant
Aid Agreement?
A:
The position should be advised to your ISA nominated lead, ISA Manager and
Regional Lead and should be recorded in the ISA register.
Further work in ongoing in this area, and sanctions in the form of limited funding
withdrawal, has been imposed within the acute sector. Seek advice prior to any action.
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Garda Vetting
Q:
Does the HSE have any specific requirements in relation to Garda
Vetting?
A:
Yes, the Service Arrangement deals with the issue in Clause 16.8 (Section 38)
/ Clause16.6 (Section 39/Section 10) / Clause 14.6 (Other SA) and the Grant Aid
Agreement deals with the issue in Section 3.5 and 6.1.
Further advice on the issue of Garda Vetting may be obtained from your HR
Department.
Tax Clearance
Q:
What are the requirements in relation to obtaining Tax Clearance
Certificates from agencies receiving funding?
A:
The requirements relating to Tax Clearance are contained in the HSE National
Financial Regulations. Receipt of a Tax Clearance Certificate is mandatory where an
organisation is in receipt of €10,000 or more (inclusive of VAT) from HSE in any 12
month period. You should obtain evidence of Tax compliance each year prior to
payment being made.
Any organisation that holds a Charity (CHY) Number does not require a Tax
Clearance Certificate. Agencies that are registered charities have to continue to
comply with the requirements of charitable registration to remain Tax compliant,
further information in relation to this matter may be obtained from www.revenue.ie.
(and is also reproduced in the Guide for small agencies)
Insurance
Q:
What are the insurance cover requirements of HSE in relation to nonstatutory agencies?
A:
The HSE insurance requirements vary depending on which form of agreement
is applicable.
In the case of Service Arrangements, Clause 12 (Other SA) / Clause14 (Section
38/39/10) sets out the specific requirements of the Provider in relation to having
appropriate insurance cover in place as set out in Schedule 7.
The insurance requirements are mandatory and lower indemnity limits can not be
agreed.
In the case of the Grant Aid Agreement, in line with Section 10.1, the Organisation
undertakes that it will have sufficient insurance coverage for its activities. The HSE
does not specify levels of cover leaving this up to the organisation.
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Variation Clause/Exceptional circumstances in Service Arrangement
Q:
What % increase/decrease in costs or services is recommended as to
materially impact on a Service Provider due to changes in law or policy direction
(clause 34.9 (c) refers)? (This provision is not applicable to ForProfit/Commercial or Out-of-State Arrangements.)
A:
The HSE management team has authorised 5%, if a higher percentage is
requested by the Service Provider you should seek the advice of the Regional Lead or
a member of the National Business Support unit.
Q:
What % increase in resource demand for the Service Provider is
recommended before a major incident is considered as materially impacting on
the Organisation?
A:
The HSE management team has authorised 5%, if a different percentage is
requested by the Service Provider you should seek the advice of the Regional Lead or
a member of the National Business Support unit. This provision is not applicable to
For-Profit/Commercial or Out-of-State Arrangements.
Variation for Grant Aid Agreement
Q:
Can the Grant Aid Agreement be altered during the course of the year, to
either increase service/funding or to reduce services/funding?
A:
Yes. The Grant Aid Agreement can be altered to allow for the changes in
circumstances. HSE managers should use the contract change note contained as an
appendix to the Grant Aid Agreement document.
Further Advice and Guidance
Q:
Where can I obtain further information or guidance in relation to this
project?
A:
There are a number of sources for additional information for HSE as set out
below. Contact details for all these sources of information can be accessed on the HSE
Internet and Intranet.
A comprehensive operational manual together with other supporting documentation is
available and should be referenced in the first instance; this is on the specific section
on the HSE Intranet which has been established as a resource for HSE staff involved
with non-statutory agencies. It can be accessed through the following link:
http://hsenet.hse.ie/HSE_Central/Commercial_and_Support_Services/National_Contr
acts_Office/Non_Statutory_Provided_Services/
You may wish to contact your local nominated lead. Each ISA Manager has
nominated a lead for the project in their ISA.
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In addition you may also wish to contact your Regional Lead. Each HSE
Administrative Area has appointed a Regional Lead to oversee the implementation
plan for their area.
Advice and guidance is also available from the National Business Support Unit which
has been established to support the process.
Information is also available to non-statutory agencies and to the general public on the
HSE Internet site. It can be accessed through the following link:
http://www.hse.ie/eng/services/Publications/Non_Statutory_Sector/
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