Financial Management and Assurance Costing Model expansion

The Department of Health, Disability and Ageing is seeking support to develop a robust framework to improve budget management and forecasting for the cost of a range of corporate services provided. Extensive knowledge of Corporate Financial Strategy and Services branch gained by Neoteric from prior engagement and already developed costing model will serve as a foundational architecture to be expanded to additional activities performed by other branches within Financial Management and Assurance Division to facilitate greater cost transparency and consistency and support informed decision making.

The cost model will support each branch and the Executives by:

• Providing an evidence base for annual funding allocations and deriving causes of variations in budget versus actual funding;
• Determining cost of services and ensuring service recoveries (where relevant) are aligned;
• Providing efficient cost recovery processes;
• Forecast future year resource requirements to inform workforce planning; and
• the primary deliverables are:

Model Update

• Expand the existing cost model to reflect the new CFSS branch structure.
• Engage effectively with the Grants and Procurement Branch and the Financial Performance, Advice and Analytics Branch to deliver a cost model that aligns with the Department’s ICT policy and remains simple, transparent, and easy to maintain.
• Apply the existing cost model methodology to expand the cost model to develop a shell for use by the Finance Branch and Assurance Branch.

Divisional Approach to Models

• Individual branch costing models should take a consistent approach utilising the existing current state process maps (where available) with a three-layer costing model design (fixed/variable/platform) and using existing scenario levers.
• Optimise the costing model to support analysis of staffing levels and resource capacity across the division.
• Methodology to ensure full cost of services are captured, including defined linkages within or across costing models. The methodology should also support cross‑charging within branches, across branches, and externally to the division where relevant.
• Provide an executive‑level overview of the cost of services delivered by the division providing insights, useful visuals and ability to get to detailed level where required.
• Ability to forecast the current and future years result for volume driven services and update models with actual volume and related costs; and
• Training of staff on operating and maintaining the models
• Adding new services
• Updating inputs
• Technical documentation and user guides

Background information

Financial Management and Assurance Division is responsible for:

• designing and applying our financial management framework
• preparing and publishing our key (PGPA) planning and reporting documents
• oversight of the portfolio regulatory framework and coordinating best practice regulation activities and reporting
• supporting our grant administration and engaging with the Streamlining Government Grants Administration program
• public-facing enquiry management
• managing our key transactional corporate services.

The deliverables will be for the Financial Management and Assurance Division including work for the below branches:

• Grants and procurement branch listed below:
• Grant Services:
• Early Engagement
• Grant Design
• Grant Assessment and Selection
• Grant Establishment
• Grant Management including variation
• Please note there are a number of enabling sections that support delivery of the above activities
• Procurement Services:
• Procurement activities to be further refined during the planning stage.

• The Financial Performance, Advice and Analytics Branch delivers customer‑focused financial advice and analytical support across the department through the Finance Business Partner model. It works closely with business areas and SES to support sound financial management, informed decision‑making and the delivery of business outcomes.
• The Finance Branch is responsible for implementing, supporting and ensuring compliance with whole‑of‑government financial management requirements. It provides strategic financial leadership and advice, enabling lawful, efficient use of public resources through robust systems, controls, education and performance frameworks.
• The Assurance Branch provides the department’s corporate assurance capability, supporting effective governance, risk management and organisational performance. It is responsible for establishing and maintaining the departmental Assurance Framework, including audits, fraud control, risk planning and business assurance activities.