Commonwealth Financial Counselling - Program Guidelines ...



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Part C: Application Information for the

Commonwealth Financial Counselling Activity

Version 1.1 (August 2012)

Preface

The Australian Government Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA or the Department) has a suite of documents (the Program Guideline Suite) which provide information relating to the program. They provide the key starting point for parties considering whether to participate in the program and form the basis for the business relationship between FaHCSIA and the funding recipient.

They are:

– Part A: Program Guidelines which provides an overview of Program and the Activities relating to the program;

– Part B: Information for Applicants which provides information on the Application, Assessment, Eligibility, Selection and Complaints processes; Financial and Funding Agreement arrangements.

– Part C: Application Information provides specific information on the Activity, Selection Criteria, Performance Management and Reporting. This part should be read in conjunction with the Standard Terms and Conditions.

– The Application Form which is completed by applicants applying for funding during a selection process.

FaHCSIA reserves the right to amend these documents from time to time by whatever means it may determine in its absolute discretion and will provide reasonable notice of these amendments.

Table of Contents

Preface 2

1. Program Overview 4

1.1 Program Outcomes 4

1.2 Objectives 4

2. Activity Overview 4

2.1 Aims and objectives 5

2.2 Service provider eligibility 5

2.3 Participants/clients/recipients/target group 5

2.4 Funding for the activity 6

2.5 Eligible and in-eligible activities 6

2.6 Activity links and working with other agencies and services 7

2.7 Specialist requirements 7

2.8 Information technology 7

2.9 Activity performance and reporting 7

3. Application Process 8

4. Contact information 9

Program Overview

The Financial Management Program (FMP) aims to build financial resilience and wellbeing for vulnerable people and those most at risk of financial and social exclusion and disadvantage. It helps people across a range of income and financial literacy levels to overcome financial adversity, manage their money, participate in their communities and plan for the medium to long term.

FMP service strategies (i.e. activities) include:

• emergency relief;

• financial counselling;

• money management information and education;

• microfinance and matched savings initiatives;

• information about saving for retirement;

• research into problem gambling and its impacts; and

• assistance with energy efficiency.

Additional information about the FMP is available on the Department’s website:

.au/our-responsibilities/communities-and-vulnerable-people/programs-services/financial-management-program

1 Program Outcomes

The FMP contributes to improved outcomes for vulnerable people, families and communities by:

• fostering the improved use and management of money;

• helping people address immediate needs in times of financial crisis;

• providing access to safe, affordable funds that may not be available through mainstream financial services and assisting in asset building; and

• undertaking research to inform policies to reduce the impact of problem gambling.

2 Objectives

The FMP aims to build financial resilience and wellbeing for vulnerable people and those most at risk of financial and social exclusion and disadvantage.

Activity Overview

Commonwealth Financial Counselling services are delivered by community and local government organisations and help people in personal financial difficulty to address their financial problems and make informed choices. Circumstances that can lead to personal financial difficulty include unemployment, sickness, credit over-commitment, family breakdown and the impact of a natural disaster.

While most CFC organisations deliver financial counselling, a small number of CFC organisations deliver resource support targeted at CFC organisations.

The CFC funding complements funding provided by State and Territory Governments for financial counselling services.

CFC financial counselling services include direct casework (e.g. provision of advice and information); advocacy and/or negotiation; referral; community education; and networking/liaison. CFC service delivery methods include face-to-face, telephone (including through the 1800 007 007 national financial counselling helpline), email and internet.

In 2010-11, CFC organisations delivered financial counselling to approximately 40,000 people, including  nearly 14,000 telephone financial counselling clients.

1 Aims and objectives

CFC contributes to the FMP outcomes by helping people in personal financial difficulty to address their financial problems and make informed choices.

The CFC’s aims and objectives include:

• assisting clients to resolve personal financial difficulties (in part or in full);

• working with clients to increase their capability to make informed decisions on the best course of action to resolve personal financial difficulties;

• working with clients to help them gain an improved ability to manage their financial affairs in the future; and

• assisting clients to access other sources of support and assistance.

CFC helps people across a range of income and financial literacy levels to:

• overcome financial adversity;

• make informed choices on the best course of action;

• develop their basic financial skills, capability and financial literacy;

• improve their ability to manage their financial affairs and plan for the medium to long term; and

• increase their economic and social participation in their communities.

2 Service provider eligibility

Eligible organisations under the FMP are generally not-for-profit and one of the following:

• Incorporated Association (incorporated under State/Territory legislation, commonly have ‘Association’ or ‘Incorporated’ or ‘Inc’ in their legal name);

• Incorporated Cooperative (also incorporated under State/Territory legislation, commonly have ‘Cooperative’ in their legal name);

• Organisation established through a specific piece of Commonwealth or State/Territory legislation (many public benevolent institutions, churches, universities, unions, etc.);

• Company (incorporated under the Corporations Act 2001 – may be not-for-profit or for-profit proprietary company (limited by shares or by guarantee) or public companies); or

• Non-government legal entity.

Funding may be provided to for-profit or government agencies, but this is not the FMP’s principal funding model.

3 Participants/clients/recipients/target group

CFC organisations deliver free, independent, non-judgemental services for people in personal financial difficulty, including people who:

• are experiencing personal financial difficulties due to circumstances such as unemployment, sickness, credit over-commitment, mortgage stress and family breakdown;

• need to further develop their basic financial skills, capabilities and financial literacy;

• are disadvantaged through some other form of financial exclusion;

• are subject to Australian Government Income Management arrangements;

• are affected by problem gambling; or

• are affected by the impact of a natural disaster.

Participation in financial counselling is voluntary.

CFC organisations are expected to have fair, reasonable and non-discriminatory service delivery procedures in place, including arrangements for accessing services, prioritising access to service delivery, terminating or interrupting service delivery to a client and referring clients to other organisations.

The FaHCSIA website includes a Commonwealth Financial Counselling (CFC) Directory:

.au/our-responsibilities/communities-and-vulnerable-people/programs-services/commonwealth-financial-counselling-cfc/commonwealth-financial-counselling-cfc-directory

Contact information about CFC organisations and service delivery is also available through the national 1800 007 007 financial counselling helpline. (Please note that calls to 1800 007 007 from public phones/mobile phones may be timed and charged at a higher rate.)

4 Funding for the activity

Under the FMP, distribution of funding is based on Government policy priorities and the needs of individuals and families. A number of factors can be considered, including the number of recipients receiving certain Australian Government payments (e.g. Newstart Allowance) and indices of disadvantage (e.g. Socio-Economic Indexes for Areas (SEIFA), bankruptcy and insolvency data, and housing affordability data).

CFC funding is primarily distributed using a grant based approach - $59.14 million (excluding GST) is being provided over four years until 30 June 2015, with three-year funding agreements in place with most organisations until 30 June 2014.

Additional funding of $25.6 million has been allocated over four years until 30 June 2016 for 50 additional full-time equivalent financial counselling positions to work with people affected by problem gambling.

As at 31 March 2012, 95 community/local government organisations were funded under CFC, including five organisations funded to deliver CFC resource support services.

CFC funding is intended to be spent on the salary (and on costs) of the financial counsellor, plus related costs of supporting that financial counsellor and delivering the financial counselling service, including supervision, training, administration and information technology.

CFC funding must not be utilised for the following categories of costs:

• costs that are not directly and specifically related to the project;

• related activities that would usually be funded from another source;

• seed funding or establishment grants for peak bodies or other new organisations (legal entities);

• overseas travel; and

• retrospective costs, including costs incurred in the preparation of the funding proposal.

Funded organisations are required to enter into a legally binding funding agreement with FaHCSIA, which specifies a range of contractual obligations, including in relation to record keeping and retention, performance reporting and financial expenditure and acquittal.

5 Eligible and in-eligible activities

Most CFC organisations deliver financial counselling, with a small number of CFC organisations delivering resource support targeted at CFC organisations.

CFC financial counselling services include direct casework (e.g. provision of advice and information); advocacy and/or negotiation; referral; community education; and networking/liaison. CFC service delivery methods include face-to-face, telephone (including through the 1800 007 007 national financial counselling helpline), email and internet.

Activities undertaken by CFC resource support workers include acting as a casework adviser, developing resources/information of relevance to financial counsellors, providing advice/information to financial counsellors and contributing to the development of the financial counselling sector.

CFC financial counsellors do not provide:

• financial planning advice (including in relation to shares, superannuation, retirement);

• finance lending;

• endorsement of specific financial products or services (including debt repayment schemes);

• business/small business advice; and

• legal advice.

6 Activity links and working with other agencies and services

CFC complements other government and non-government programs/initiatives, including in the areas of money management, financial literacy and emergency relief.

In delivering financial counselling, CFC organisations must develop and maintain links with other relevant organisations to assist in making appropriate referrals and co-ordinating services with a view to improving client outcomes.

Relevant organisations with whom CFC organisations might work with include, Centrelink, Australian Taxation Office, Child Support Agency, Insolvency and Trustee Service Australia, Legal Aid services and Community Legal Centres, and government and non-government agencies that deliver services for vulnerable, disadvantaged or at-risk people, including people affected by mental illness, new arrivals/emerging communities, prisoners and their families, people affected by problem gambling, Indigenous communities, seniors, people with disabilities, homeless people, people affected by relationship stress or breakdown and other people in crisis.

7 Specialist requirements

In delivering financial counselling services, CFC organisations must take account of relevant legal and regulatory requirements (including as specified by the Australian Securities and Investments Commission (ASIC) – e.g. conditional relief for financial counselling agencies).

All financial counsellors employed by agencies with CFC funding:

• must have undertaken appropriate training in order to have adequate skills and knowledge to satisfactorily provide financial counselling services; and

• are expected to be a member of, or to be eligible for membership of, a relevant financial counselling association.

In addition:

– all financial counsellors employed by agencies with CFC problem gambling funding must also have undertaken, or be undertaking, the following three problem gambling units of competency or equivalent qualifications:

• CHCGMB501A – Work effectively in the problem gambling sector;

• CHCGMB502A – Assess the needs of clients with problem gambling issues; and

• CHCGMB503A – Provide counselling for clients with problem gambling issues.

– all financial counsellors employed by agencies with CFC problem gambling funding in areas with a high population from Culturally and Linguistically Diverse (CALD) or Indigenous backgrounds, and/or in areas with a particularly disadvantaged CALD or Indigenous population, must also have undertaken, or be undertaking, the following two CALD units of competency or equivalent qualifications:

• HLTHIR403C – Working effectively with culturally diverse clients and co-workers; and

• CHCCD413E – Work within specific communities.

The conditions for full/accredited membership of most state and territory financial counselling associations include the Diploma of Community Services (Financial Counselling) or an equivalent qualification.

2.8 Information technology

CFC funding includes costs of supporting financial counsellors and delivering financial counselling services, including information technology.

CFC organisations are expected to have systems in place to allow them to meet their data collection and reporting obligations. As at 31 March 2012, reporting requirements for most CFC organisations include the use of electronic FMP Smart Form Reports for submission of performance reports.

CFC organisations specifically funded for telephone financial counselling are required to have appropriate infrastructure to support the telephone-based service and to meet reporting requirements.

2.9 Activity performance and reporting

The Department will monitor and evaluate ongoing performance and will require service providers to complete performance reports in accordance with their funding agreements.

As at May 2012, the Performance Indicators for delivery of financial counselling services under the CFC activity are:

• Percentage of clients who have their financial difficulties resolved (target: 90%)

• Percentage of clients who have gained increased money management knowledge and skills (target: 85%)

The Department requires funding recipients to provide audited financial statements and reports as specified in their funding agreements.

Monitoring and feedback on an organisation’s performance may include site visits.

The Department periodically undertakes or commissions program evaluations and reviews to ensure program outcomes are met through quality, efficient and effective services. Where input is sought from CFC organisations in relation to an evaluation or review, the Department will notify them of:

• the intention to conduct an evaluation;

• the focus of the evaluation;

• who is conducting the evaluation;

• the time period in which it is to be conducted; and

• where appropriate, the involvement sought.

Application Process

There is no currently open application process.

The next expected CFC application processes are:

• CFC – Financial Counselling Services for People Affected by Gambling (late 2012)

• CFC – General (late 2013-early 2014)

Contact information

Information on FMP service strategies is available from FaHCSIA State/Territory offices.

FaHCSIA – New South Wales/Australian Capital Territory office:

GPO Box 9820, SYDNEY NSW 2001

Phone: 1300 653 227 (local call cost only); Fax: 02 8255 7778

Email: nswactfmp@.au

FaHCSIA – Northern Territory office:

GPO Box 9820, DARWIN NT 0801

Phone: 1300 653 227 (local call cost only); Fax: 08 8936 6331

FaHCSIA – Queensland office:

GPO Box 9820, BRISBANE QLD 4001

Phone: 1300 653 227 (local call cost only); Fax: 07 3004 4805

Email: cfcqld@.au

FaHCSIA – South Australia office:

GPO Box 9820, ADELAIDE SA 5001

Phone: 1300 653 227 (local call cost only); Fax: 08 8400 2199

FaHCSIA – Victoria/Tasmania office:

Victoria

GPO Box 9820, MELBOURNE VIC 3001

Phone: 1300 653 227 (local call cost only); Fax: 03 8626 1217

Email: FMPVictoria@.au or cfc.vic@.au

Tasmania

GPO Box 9820, HOBART TAS 7001

Phone: 1300 653 227 (local call cost only); Fax: 03 6211 9399

Email: communitiestas@.au

FaHCSIA – Western Australia office:

GPO Box 9820, PERTH WA 6848

Phone: 1300 653 227 (local call cost only); Fax: 08 9229 1598

Email: WAFinancialManagementProgram@.au

Further information on CFC/FMP can be obtained by contacting:

Money Management Branch

Department of Families, Housing, Community Services and Indigenous Affairs

PO Box 7576, CANBERRA BUSINESS CENTRE ACT 2610

or by emailing

CFC: CFCP@.au

FMP: Financial.Management@.au

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