chapter 4 - capital grant - dss.gov.au · web viewchapter. 3. or . chapter. 4. of this 2015 acar...

2015 AGED CARE APPROVALS ROUND - ESSENTIAL GUIDE

CHAPTER 4 – CAPITAL GRANT

IMPORTANT INFORMATION ABOUT APPLYING FOR A CAPITAL GRANT

A. Purpose of this Section

This section of the 2015 ACAR Essential Guide provides instructions on how to complete your application(s) for a Capital Grant under the Rural, Regional and Other Special Needs Building Fund. If you are applying for residential aged care places only or both residential aged care places and a capital grant for a service, please refer to Chapter 3 or Chapter 4 of this 2015 ACAR Essential Guide.

The information in this section should be read in conjunction with: Chapter 1 ‘Introduction’ and Chapter 5 ‘Capital Grant Program Guidelines’ of this Essential Guide; and the ‘Questions and Answers’, available on the Department’s website at www.dss.gov.au/2015ACAR.

B. Important considerations for the 2015 ACAR

The Rural, Regional and Other Special Needs Building FundAll capital grants are funded from the Rural, Regional and Other Special Needs Building Fund. All applicants must refer to the program guidelines for this fund at Chapter 5 of this 2015 ACAR Essential Guide.

Use of information held by the Department and others In addition to the information provided in your application, as part of the overall assessment process, the Department will consider any other relevant information available to it, including but not limited to: information obtained from the Aged Care Complaints Scheme and the Australian Aged Care Quality

Agency; information you have provided to the Department in relation to other assessment processes; for example,

any application to transfer, vary or exchange existing places; and information about your compliance history as a provider of aged care.

C. Preparing your application You should consider the following when preparing your applications: Applications may be made by existing approved providers of residential aged care places who hold an

allocation of residential aged care places or expect to hold an allocation of residential aged care places prior to the completion of the 2015 ACAR.

Complete a separate Part C – Capital Grant application form for each service for which you are seeking a capital grant.

If you are applying for residential aged care places and a capital grant you must complete: Part A – Residential Aged Care Places application form once for your organisation Part B – Residential Aged Care Places application form for each service for which you are seeking

residential aged care places Part C – Capital Grant application form

If you are applying for a capital grant only you must complete: Part A – Residential Aged Care Places application form once for your organisation Part C – Capital Grant application form

2015 ACAR Essential Guide: Chapter 4 – Capital Grant of 13

http://www.dss.gov.au/2015ACAR

D. Lodging your application

You are required to submit your applications and associated attachments via email at [email protected] . For further details please refer to Chapter 1 of the 2015 ACAR Essential Guide.

You are required to submit ONE signed copy of your application as part of your electronic lodgement to the above email address. Electronic signature blocks can be used when completing your application.

Please note, however, that should an applicant wish to hand sign or affix their company seal on the Part A endorsement page of their application, applicants are able to send that page as a PDF. The rest of the completed application form should be submitted in the correct Microsoft Word ‘doc’ file format (see Chapter 1 of the 2015 ACAR Essential Guide for further detail).

Please note: Applications will not be accepted by facsimile. Late or incomplete applications may be regarded as invalid and not assessed. Attach documents only where required or requested, other documents will not be considered. The Department will only accept paper applications in exceptional circumstances. Please contact the

Department at [email protected]. Evidence to support this may be required. Applications for places may be deemed invalid if the application is made using a form other than those

available on the Department’s website. Applicants are not permitted to edit the application forms. If you are unable to complete the application forms provided, contact the ACAR Team for further advice at: [email protected].

Ensure your application is received within the Department on or before:

11.59pm (AEST) 25 September 2015.


mailto:[email protected]



COMPLETING YOUR ‘CAPITAL GRANT ONLY’ APPLICATION FORM

COVER PAGE OF APPLICATION FORM

Organisation nameProvide either your approved provider name, or the full legal name of your organisation if you are seeking approved provider status. Do not use abbreviated approved provider or legal names of your organisation.

Please note, this should be the same organisation name detailed in your Part A – Residential Aged Care Places application form.

Service nameProvide the full name of the existing, or proposed, aged care service.

Select the state/territory and aged care planning region in which the residential aged care places are soughtUsing the drop down box select the aged care planning region in the corresponding state and/or territory to which your application for residential aged care places relates.

Please note: You may only select one aged care planning region per application. Failure to meet these requirements may result in an invalid application.

PART 1: APPLICANT DETAILS

1.1 Applicant detailsProvide the RAC Service ID number (existing service only).

1.2 Physical address of the serviceProvide the physical address of the service including the street number and name, suburb or town, state or territory and postcode (if known).

1.3 Contact detailsProvide the email and telephone contact details for your organisation’s primary and alternative contact. This contact is responsible for your organisation’s application, and as such should have a detailed understanding of your application(s).

PART 2: CAPITAL WORKS

2.1 Total Project Cost – Applicant contribution – Grant amount soughtThe total project cost must equal the Total Project Cost figure provided in 2.22 Cost Certificate and the Total Funds in 3.6 Sources of Funds for the Capital Works.

2.2 Capital grant project details – Provide a description of the proposed capital works.All applicants should detail the proposed capital works in response to this question.

Your response should include details of the quality of accommodation proposed.

The word limit for this question is 500 words.

2.3 Describe the issues the proposed capital works will address.All applicants should detail what existing issues your service has identified that will be rectified through the provision of a capital grant and the proposed capital works.



2.4 If the proposed capital works are regarded as urgent, explain the reasons for this urgency.Outline the reasons for the urgency of the proposed capital works with reference to the Accreditation Standards.


2.5 Describe why you are unable to fund the proposed capital works project.This is self-explanatory.


2.6 Provide the configuration of your service, both BEFORE and AFTER the proposal for this service is implemented. Please provide the number of each type of resident rooms, the number of residents in the particular type of room and the number and size of other areas, such as lounges or dining area, you propose to have within the service after your proposal has been implemented. For the purposes of this question: an ‘en-suite’ is defined as a room with toilet and bathroom facilities accessed/adjoined to a bedroom, for the exclusive use of the occupant of that room; and a ‘shared bathroom’ is defined as one that can be accessed directly from more than one resident’s room.

Where two or more services are co-located on a single site or adjacent sites, the information you are providing in your response to question 2.6 should be a consolidated response for all the services located on a single site or adjacent site. The consolidation should include all occupied rooms in the service, including unfunded places which do not attract Australian Government residential aged care subsidies.

For an existing service, the table should be completed to show details of the current configuration of the service, and the configuration of your service after the completion of the capital works.

For a new service, complete Column E only.

2.7 Provide details of any temporary accommodation and/or care arrangements you will need to put in place during the construction or redevelopment work.If you have current occupancy or tenancy arrangements in place, describe:

any temporary accommodation and/or care arrangements you will need to put in place to ensure current occupants have suitable, appropriate and acceptable alternative accommodation, including the number of residents, their care levels and the nature of the temporary accommodation arrangements;

the period in which the temporary accommodation arrangements will be required; the location of the temporary accommodation;

the name of the organisation that will manage the delivery of care (if required), in the temporary accommodation; and

the communication strategy and consultative process you have or will put in place to inform residents, their carers and family members of the temporary accommodation arrangements.


2.8 Provide the key milestones in the development of the capital works project.The table in this question lists the key milestones that you have met, or will meet, in planning the development of your service.

If you experience any change in circumstances that will significantly affect your ability to meet the key milestones you have provided in response to Question 2.8, you should notify the Department, in writing, of the changes at the earliest opportunity.


2.9 Identify any known risks that may affect your ability to meet the above key milestones.Detail any risks that may affect your ability to meet key milestones, including the actions you have taken and/or propose to take to manage identified risks.

If you experience any change in circumstances that will significantly impact upon your ability to meet the key milestones you have provided in response to question 2.8, you should notify the Department, in writing, of the changes at the earliest opportunity.


2.10 Concessional, supported, assisted & low-means care recipients.Provide the numbers of existing and expected numbers of new concessional, supported, assisted & low-means care recipients at your service as at 31 July 2015 and at the completion of this proposal.

2.11 If you have identified as part of your overall proposal, a significant increase in the numbers of concessional, supported, assisted or low-means care recipients, describe the steps you will take to achieve this outcome.This is self-explanatory.


2.12 Is the primary purpose of this capital works project to facilitate the provision of care to people from one or more of the special needs group?One eligibility criterion for a capital grant is that a majority of care recipients are, or will be, people from a special needs group.

Special Needs Groups are: people from Aboriginal and Torres Strait

Islander communities people from culturally and linguistically diverse

backgrounds people who live in rural or remote areas people who are financially or socially

disadvantaged veterans

people who are homeless or at risk of becoming homeless

care leavers parents separated from their children by forced

adoption or removal people who are lesbian, gay, bisexual,

transgender and intersex people

Approximately $11.5 million of Capital Grant funds have been earmarked to support access to residential aged care for older people from culturally and linguistically diverse backgrounds.

Homelessness/risk of homelessness continues to be an issue for older people and, provided application(s) of sufficient quality are received, priority may be given to providing at least one capital grant for a new, or a significant extension to an existing, specialist residential aged care facility for people who are homeless or at risk of homelessness in the 2015 ACAR.

While it is recognised that a care recipient may be a member of more than one special needs group, for the purposes of Questions 2.12-2.19 a care recipient should only be included in one special needs group.PLEASE NOTE: The application form allows you to provide details of your proposal concerning targeting three special needs groups. If you are seeking to provide services for additional special needs groups, you are required to download the supplementary form and attach to your application. The supplementary form can be found here.


http://www.dss.gov.au/2015ACAR

2.13 Specify the special needs group(s). The special needs groups are defined in the Aged Care Act 1997.This is self-explanatory.

2.14 How many people from this group do you provide care to at the service now?You may identify more than one special needs group which will benefit from this capital works project.

2.15 How many people from this group will you provide care to at this service at the conclusion of this project?This is self-explanatory.

2.16 If you have forecast a significant increase in the numbers of people from the special needs group, describe the steps you will take to achieve this outcome.Describe how you propose to ensure the projected significantly increased number of care recipients who are people from the special needs group(s) is reached and maintained.


2.17 Outline the evidence that demonstrates that there is a need in the area for residential aged care for the identified special needs group.Provide a detailed description of:

how you have identified the need for residential aged care for the special needs group your understanding of the demographics of the special needs group evidence of relationships you have established, or steps you intend to take to establish linkages with

relevant communities and/or key organisations:o the evidence you provide must be related to the linkages you have established or intend to

establish with relevant communities and/or key organisations in relation to the provision of care for people with special needs, rather than general letters of support or testimonials.



2.18 Describe your organisation’s experience and/or expertise in the provision of appropriate care to the identified special needs group, or how your organisation intends to develop such expertise and any other approaches you plan to take to meet the particular care needs of the identified special needs group.Provide a detailed description of:

how you have identified the particular care needs of people from the special needs group your understanding of the particular physical, social, spiritual and environmental care needs that may

need to be addressed practical examples of how you have, or will, provide care that has regard to the particular physical,

social, spiritual and environmental care needs of individual care recipients how you have tailored, or will tailor, your service delivery to address the particular care needs of

individual care recipients.


2.19 Describe how the building design and external environment will meet the particular care needs of the identified special needs group.Provide a detailed description of:

any design features that will be incorporated into your building design and external environment that will facilitate the provision of care which addresses the particular physical, social, spiritual and environmental needs of the identified special needs group.


2.20 Is a significant purpose of the capital grant to address the particular care needs of people with dementia?This is self-explanatory.

2.21 Identify how the building design and external environment will meet the particular care needs of people with dementia.Provide a detailed description of:

any particular changes, improvements or innovations you propose to make that will facilitate the provision of the particular physical, social, spiritual and environmental needs of people living with dementia.


2.22 Cost CertificateYou should detail all the cost components of your capital works here. Applicants must provide the cost certificate information as provided to them based on the proposal as described in Question 2.2 and the configuration of services described in Question 2.6.

This cost certificate must be signed and dated by the architect/construction professional who prepared the estimate for your proposal.


PART 3: FINANCIAL INFORMATION

The financial information you provide will contribute to an assessment of your organisation’s ability to complete the capital works in a timely manner while maintaining viability into the future.

Financial information underpins a number of legislative provisions (assessment criteria) including continuity of care for current and future care recipients, measures to protect the rights of care recipients (particularly in relation to lump sum accommodation payments) and, for services where new construction is required, making places operational in a timely manner.

Any allocation of a capital grant does not imply that the Australian Government guarantees the viability of your service or of your organisation. Applicants MUST make their own assessment as to the viability of their operations and of the adequacy of capital funding arrangements. You should notify the Department of any change in your circumstances that will significantly affect your capacity to finance your proposal at the earliest opportunity.

The Department may use financial information for an independent analysis to assist in determining your: financial viability ability to deliver care in the long term ability to complete any capital works relevant to the application organisational viability and sustainability.

If the independent analyst wishes to clarify any financial information, your authorised contact person(s) will be contacted by an officer of the Department. Any request for clarification is to allow consideration of your application and should not be taken as an indication of the likely outcome of your application.

There is no requirement for the Department to clarify any information and seeking clarification does not mean that further information will be sought. The onus is on you to provide sufficient information in your application, and supporting documentation, to allow the Department to determine the robustness of your financial situation.

FINANCIAL INFORMATION - SERVICE LEVEL

3.1 Operating surplus (deficit) – projections for the residential aged care service.Provide the relevant figures against each year in respect of your organisation.

Do not include information relating to non-residential aged care activities, such as, home and/or flexible aged care places, acute care, independent living units or include any debt payments in row A.

The calculation of your organisation's operating surplus or deficit before depreciation and interest payments should take account of the following items but may include other items that are normally included in the accounts for your organisation.

Income Department of Social Services subsidies resident charges (total annual resident fees charged, including accommodation charges) earnings from accommodation bonds, refundable accommodation deposits, daily accommodation payments

and daily accommodation contributions (total annual interest earned from accommodation bonds and any retention amounts)

state/territory government subsidies other income/subsidies (annual income from all other sources including donations and bequests either from

external sources or related entities). Include any income generated through investments of donations/bequests.

Expenditure wages


workers’ compensation catering, cleaning and laundry utilities (for example: electricity, fuel, water, sewerage and waste removal, including rates) rent (annual rental cost for the service) property and maintenance other expenses.

Income – This should include all income generated by the service.

Expenses (not including interest payments) – This should include all expenses other than interest payments.

Interest payments - This should include all interest payments on debts and borrowings that are specifically related to the service. This should also include interest payments on the Zero Real Interest Loan. Do not include any interest payments that are not related to the service.

Operating surplus / (deficit) – This represents the service’s profit and loss.

Depreciation on building – This should only include depreciation on buildings and infrastructure assets that are specific to the service.

Depreciation on plant and equipment – This should only include depreciation on plant and equipment related assets that are specific to the service.

Zero Real Interest Loan principal repayments: This should include principal repayments on Zero Real Interest Loans that are related to the service.

Other debt principal payments: This should include all other debt principal payments that are related to the service.

NET Accommodation bonds, refundable accommodation deposits and refundable accommodation contributions: This should include the net cash inflow (outflow) only (i.e. gross cash inflows less payouts, for the relevant periods).

Total number of operational places: Detail the total number of places expected to be operational against each year, including any new places you are seeking in the 2015 ACAR.

Total number of provisional places: Detail the total number of places that have already been provisionally allocated (that is, not yet operational) against each year.

Total number of places: This is the total number of operational and provisional places.

3.2 Describe the assumptions underlying the projections. This is self-explanatory.


3.3 Outline how your organisation will fund any operating deficit or cash flow shortfall.If the projections for your organisation show an operating deficit in any year, describe how your organisation intends to fund this deficit.


Capital works financial details

3.4 Capital works costs associated with this application.Note that these are capital works for which a capital grant is being sought in this 2015 ACAR.


Complete the table in respect of the total capital works cost required to complete the project related to your application.

If you have indicated ‘Other’ in response to question 3.4, provide a brief description.


3.5 Sources of funds for the capital works.Detail the sources of funds for the capital works related to your proposal.

Do not include information in respect of any other capital works you may have commenced or be planning.

Internal sources: Detail the amount to be drawn from reserves (excluding any amounts from accommodation bonds, refundable accommodation deposits and refundable accommodation contributions) and the amount being provided from internal borrowings and contributions that are non-repayable and describe any sale of assets and the amount from the sale(s).

If borrowing from a parent/allied group, please provide audited financial statements to demonstrate the funder’s financial capacity to provide funding to the applicant.

Resident sources: If you intend to fund construction costs from accommodation bonds, refundable accommodation deposits and refundable accommodation contributions, identify the relevant amounts as either from provisionally allocated and existing places.

External sources: Detail any borrowings from any external organisation, including loans from financial institutions.

Other Sources: Detail the amount expected to be raised through fund raising, such as the amount already raised, the amount expected to be raised and details of the fund raising activities. Indicate any other sources of funding such as, but not limited to, sale of any assets.

Additional sources of funding: This is self-explanatory.

Capital funding - state/territory government: If a state or territory government has allocated funding to this proposal, detail the total amount of this capital funding.

Capital grant(s) allocated in previous ACAR(s): If your organisation has been allocated any capital grant(s) in a previous ACAR(s), detail the amount(s) of the grant(s).

Capital Grant sought in this ACAR: This self-explanatory.

Zero Real Interest Loan allocated in previous ACAR(s): If you have received a Zero Real Interest Loan from the Department as a result of the conduct of Stage One, Two, Three or Four of the Zero Real Interest Loan initiative, detail the total amount(s) of the Zero Real Interest Loan(s).

Describe any other additional sources of funding: This is self-explanatory.

Total funds: The amount you enter for “Total funds” should be the same as the amount you have entered as “Total capital works costs” in question 3.4.

3.6 Where do “Funds drawn from reserves” appear in the Statement of Financial Position (Balance Sheet)?Detail where the reserve funds are to be drawn from and show where these funds appear in the Statement of Financial Position (Balance Sheet).


3.7 Bridging finance to be used for the capital works identified in this application.Detail any bridging or transitional borrowings required in the construction of these capital works. Identify the amount involved and the terms of the loan, including when full repayment is required/anticipated, and include any bridging finance in respect of accommodation bonds projected to be received in the future.

3.8 Current status of funds negotiations.If borrowings are planned, indicate, by ‘checking’ one box only, the stage your negotiations have reached with the proposed lender.

You must provide evidence that supports the status of your funds negotiations and indicate in the relevant box(es) where you have attached evidence.

3.9 Service overview.This question relates to the residential aged care service in which you are seeking residential aged care places. Do not include information relating to any non-residential care activities of the service, such as the provision of home and/or flexible aged care places, acute care, or independent living units.

Provide full year actual or estimated results for each of the four years but leave 2014-15 information blank if there is no existing service. The first of the four years should be the financial year in which any proposed capital works are completed; indicate the relevant year at the top of each column.

Number of allocated places: Record the total number of places, including operational places, unused places and provisionally allocated places.

Number of unfunded places: Record the number of places available for which Australian Government residential aged care subsidies are not received.

Total places: This is self-explanatory.

Total residents: This is self-explanatory.

Occupancy rate (%): Record the average occupancy rate, that is, the total number of occupied bed days per year/total number of possible bed days per year, expressed as a percentage.

Number of residents paying accommodation bonds, refundable accommodation deposits and refundable accommodation contribution: This is self-explanatory. Number of residents paying daily accommodation payments and/or daily accommodation contributions: This is self-explanatory.

Liability for accommodation bonds, refundable accommodation deposits and refundable accommodation contributions ($): Record the total amount owing to residents at the end of the year after deducting allowable deductions.

Reserve funds for the service ($): Record all funds held in reserve to meet, for example, known liabilities, unexpected expenditure requirements or to support future service or capital improvements. Do not include accommodation bonds, refundable accommodation deposits and refundable accommodation contributions. Write “none allocated to service” if there are no reserves allocated specifically to this service, for example, if organisational reserves are held by your organisation but applied to a range of services or activities.

3.10 Describe the assumptions underlying the projections.Provide information on the assumptions underlying your projections. You should outline any assumptions relating to:


the number of residents paying refundable accommodation payments or refundable accommodation contributions

the value of accommodation payments and contributions resident turnover sources of capital funding interest rates related party income.



chapter 4 - capital grant - dss.gov.au · web viewchapter. 3. or . chapter. 4. of this 2015 acar...

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