Assistance with Deficit Management and Workforce Bridging

Background

1.         Devolved budgets and workforce management responsibility have operated in Victorian schools since 1996 and all schools are expected to have in place planning strategies to manage their workforce requirements within available funds. 

 2.        The SRP allocates the available State government funding to all schools in a transparent and equitable manner based on student needs.  The imperative for all principals is to manage their school within available resources.

 3.        Deficit management and workforce planning support may be available to schools in circumstances where the school is not able to meet commitments within their allocated budget.  Support is provided in these circumstances through a combination of:

•  Management support via workforce planning, through Regional Finance Managers, Schools  Finance Liaison Officers, and Workforce Bridging Officers.
•  Financial support via Workforce Bridging through the Schools Workforce Analysis and Support Unit (SWASU) of the School Resources Allocation Branch (SRAB) – if the shortfall is not linked to local management decisions

4. This will assist schools to make the transition from a deficit to a ‘within budget’ situation.

Underlying Principles

5.      The following principles inform the policy in assisting schools in circumstances involving deficit management and workforce planning issues:

     5.1.   The SRP is allocated to all schools based on principles of equity, consistency and transparency.  The SRP is adjusted periodically to reflect salary and other cost movements, consistent with the State Budget and the prevailing Victorian Government Schools Agreement.

    5.2.   Schools operate in a devolved environment, wherein workforce planning and SRP management is the responsibility of the principal and school council.  Principals are therefore expected to have a sustainable workforce management plan for their school that is capable of being funded within the SRP. 

    5.3.   School workforce plans must include contingency planning to deal with changing circumstances.  This includes accommodating potential budget changes linked to such factors as enrolment variations, and changing workforce commitments including staff salary increments and leave returnees.  The SRP Planner provides a useful modelling tool for schools for this purpose.  If credit deficits arise, whether or not caused by local management decisions, it is incumbent on the school to take action to remove the deficit, within appropriate DEECD policy.

    5.4.  Schools participating in reorganisations are also expected to undertake workforce planning within their overall budget allocation whilst giving due consideration to clauses contained in the relevant Memorandum of Understanding covering the reorganisation.  Regions and central office are available to assist schools with the workforce planning process through the provision of management advice and support.  Principals are expected to have a sustainable workforce management plan for their school that is capable of being funded within the SRP.

Procedures for Assistance

6.       Management advice and support

Since the first imperative is to manage the school‘s SRP to avoid a deficit, principals should develop a workforce plan that is capable of being funded within the SRP.  Should this process identify that the  school has a need for possible assistance, the principal should contact the Regional Finance Manager; the region may refer to the SWASU for further support.

     6.1      Discussions with the Regional Finance Manager will encompass the overall financial position of the school, including salary mischarges, credit-cash transfers and accumulated surpluses.  This analysis will involve assessment by the Regional Finance Manager of the school’s capacity to manage within its budget.

    6.2      If referred to the SWASU, the region will provide details of the relevant Workforce Plan and information pertaining to the school’s workforce planning issues and financial management history via the regional referral pro forma.

7.       Support

Following regional referral to the SWASU a Workforce Bridging Officer (WFBO) will be assigned to work with the school and Regional Office and prepare a report for the Workforce Bridging Panel. The WFBO and school principal will develop a Workforce Bridging report based on the school’s workforce plan that will include strategies to return the school to a sustainable budget position.

    7.1    Factors considered in determining whether Workforce Bridging financial assistance is provided include:

•  The budget shortfall is not the result of local management decisions
•  The school has a viable deficit management strategy
•  The school undertakes to consult with the SWASU if it anticipates moving outside of its deficit management strategy

    7.2      On completion of discussions, the WFBO will:

            a)     Provide the Principal and the Regional Director with a copy of the WFB Report

            b)    Submit the Workforce Bridging Report to the SWASU who will present the report to the Workforce Bridging Panel for assessment and possible recommendation to the Chief Finance Officer (CFO).

    7.3      The Panel will meet as required and consists of:

•  A Chairperson – Assistant General Manager, SRAB
•  A representative of the Human Resources Division (HRD) – General Manager of Human Resources
•  Two practising principals – one Secondary and one Primary

    7.4      A letter confirming the Panel’s decision will be sent to the principal, with copies to the Regional Finance Manager and Regional Director. The principal will be requested to inform the School Council of this decision.

    7.5    The level of support determined by the Panel and approved by the CFO will be reflected on the school’s Budget Management Report.

    7.6    The final amount of any Workforce Bridging financial assistance is subject to confirmation at the end of the calendar year as the amount notionally approved may be reduced subject to the reconciliation of the school’s SRP.

8.       Review

    8.1   A process is available for schools who wish to have the decision of the Panel reviewed.      Requests, outlining the grounds for the review, should be lodged with the Coordinator, SWASU, Ground Floor, 33 St Andrews Place East Melbourne 3000, within 14 days of the receipt of the  letter confirming the Panel’s decision.

     If additional information is provided it should be explained why it was not included in the original report.

    8.2  The review will, in the first instance, be considered by the Panel and may be referred to the Deputy Secretary, Office of Resources and Infrastructure.

Ensuring Consistency

9.       The SWASU has overall responsibility for the Workforce Bridging process and works with schools, regions, professional associations and stakeholder reference groups to ensure that the process is supportive of schools, while remaining fair and consistent with the principles of devolved school self management.