Statutory bodies are increasingly turning to voluntary and community organisations to deliver services under contract, and the Government is currently keen to increase the sector’s role in delivering public services. For some organisations, this is an opportunity to improve financial sustainability, and to increase and improve the services they can deliver.
But there are dangers. Taking on the role of public service provider can undermine independence and pull an organisation away from its primary purpose.
There is also a danger that some contracts do not deliver Full Cost Recovery and leave organisations with inadequate resources to cover the real costs of services.
This overview introduces key issues associated with contracts and service level agreements.
