7. Funding and operating agreement

In order to receive government funding, each school enters an individual Funding Agreement with government. The Funding Agreement covers the conditions under which recurrent funding is provided for the period 2005-2008.

Government funding is contingent upon the school satisfying meeting specified accountability requirements.  For comprehensive information relating to government funding, compliance and accountability refer to Independent Schools Victoria’s ‘2007 Briefing for Members – Australian and State Government Funding for Non-Government Schools’ and the Educational Accountability – Requirements Under the Schools Assistance Act 2004.

It is important for the Board to understand the implications of the funding agreements and related legislation.  School rules, regulations and guidelines must be consistent with these accountabilities.

Board Members need to be aware of the school’s obligations when these agreements are finalised with governments.  Government funding represents a significant component of overall School revenue.  Understanding and meeting funding agreement criteria are therefore important risk management issues for Board Members.

For further information on Government funding arrangements, please refer to the following documents:

• Comments on Australian Government Funding Agreements
• Risk Management: Australian Government Funding Agreements