The Journal of Contemporary Issues in Business and Government Vol 9 Number 1 May 2003 43-50 (from Curtin Business School)

Over the past decade, governments at all levels have made increasing use of Not-For-Profit Organisations (NFPOs) to provide services to the community sector. Over the same period government agencies have also made increasing use of market type mechanisms to pay for these services.

This paper addresses the effectiveness of such mechanisms against the background of recent policy developments in Western Australia. The paper considers the issues of accountability, and how it is affected by a move from a submission-based funding model involving grants, to that of a purchaser-provider model. The paper then focuses on findings from the "Means to An End' performance examination released by the Office of the Auditor General in June 2000 (Auditor General for Western Australia, 2000). The examination found that the developing relationship between NFPOs and the public agencies was being coloured by: a high turnover of agency contract managers, a lack of signed contracts, tension, contracts which stressed penalties but not rewards, and a situation where NFPOs claimed their administrative workloads and costs had increased without any proportionate increase in government funding. The paper closes by examining the impact the Report has had on recent developments in the state, particularly with regard to the work of a new Working Party established within the Department of the Premier and Cabinet, which has been charged with examining the issue of funding and purchasing agreements with the not-for-profit sector.

Link to full paper - http://www.cbs.curtin.edu.au/index

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