Gaining government funding and approvals

For externally funded non-HVHR projects, you will need to seek both internal and external approval to undertake the project. The process will vary depending on the project governance structure and associated approvals process, but may involve the following steps:

1. Develop an initial case for investment once the project has been recognised as an organisational priority.

2. Investigate the project's merits. You may need to seek funding and/or approval from the TAFE board to further investigate the merit of the project prior to proceeding to develop a business case. Unlike HVHR projects, the project may only require a preliminary business case. If you require funding to engage specialised consultants to assist with the drafting of the business case, this should also be applied for and approved at this point. Alternatively, internal funding allocated for the purpose of engaging consultants may be used.

3. Seek Business Case approval. As you are seeking external funding for the project, the TAFE board, the OTCD, the Minister for Skills and TAFE and possibly other government departments and bodies, will need to approve the business case. It is important to plan the submission of the business case to coincide with government funding timeframes.

Liaise with your OTCD representative as soon as possible to help ensure the project is best placed for consideration and inclusion in the department’s early prioritisation list and the business case is aligned to current government priorities.

This early consideration can occur in April and May during discussion of the TAFE’s asset management plans with the OTCD; with its support for you to continue developing a detailed business case in May and June for submission to OTCD in October for review, before it is finalised in December.

It is recommended you plan to seek preliminary board approvals from May or June in the year prior to the annual budget process, before submitting preliminary documentation to the OTCD. This documentation will likely require regular updates to support approval of the draft submission in October and final approvals and submission in December.

For more complex projects (i.e. projects that require significant project definition and design specification), the business case may require 12-18 months to prepare, prior to its submission, typically in December, during the normal government budgeting cycle. These may require a full business case.

Once the business case has been approved, you will need to wait for the funding to become available, which is usually in line with federal and state budget key dates as well as the agreement with the OTCD around the release of funds under the capital works funding agreement (CWFA).

The process will vary depending on project governance structure and associated approvals process but may involve the following steps:

1. Develop an initial case for investment. Once the project has been recognised as an organisational priority, you should develop an initial case for investment and seek funding from the TAFE board to further investigate the merit of the project progressing through to the development of a preliminary business case. If you require funding to engage specialised consultants to assist with the drafting of the business case, this should also be applied for and approved at this point. You may also wish to follow the HVHR guidelines to gain access to DTF guidance and elect to participate in the gateway review and assurance processes.

2. Gate 2 review. Following an HVHR gateway review of the preliminary business case, (if elected), you can request participation in the Gate 2 review process for the full business case, prior to its finalization and internal approval. The full business case will need the TAFE board's approval.

3. Funding confirmation. Once all parties have approved the project and your TAFE board has allocated funding, you should formally confirm with the finance department that the funds are available to be released.

Externally funded HVHR projects will need funding and approvals from DTF and the Treasurer. The process may vary depending on the project governance structure and associated approvals process, but will likely involve the following steps:

1. Develop an initial case for investment. Once the project has been recognised as an organisational priority, you should develop an initial case for investment and seek funding from the TAFE board to further investigate the merit of the project prior to developing a preliminary business case. Include funding required to engage specialised consultants to assist with the drafting of the business case. Alternatively, internal funding allocated for the purpose of engaging consultants may be used. Board approval should be sought around May or June to ensure sufficient time to consult with the OTCD to confirm the project is in line with departmental priorities – increasing the chance of success.

2. Develop a preliminary business case. The OTCD and DTF will provide guidance on the development of the preliminary business case prior to participation in the gateway review process (see below). The full business case will require separate endorsement of both the OTCD and the Treasurer, prior to submission for final project approval and funding confirmation at the Expenditure Review Sub-Committee of Cabinet (ERSC). It is important to plan the business case submission to coincide with government funding timeframes. An HVHR project is likely complex and may require substantial project definition and design specification to support business case development. It may be appropriate to commence preparation (such as the appointment of specialists to support the development of the functional requirements and associated spatial requirements) 12-18 months prior to final business case submission in December (for the typical Victorian government budgetary cycle).

3. HVHR gateway review. You will be required to participate in the HVHR gateway review process. This involves a review of the preliminary business case (Gate 1), and full business case (Gate 2), prior to the consideration of the business case at ERSC. You should aim to have the Gate 2 review process complete by October to allow sufficient time to address any identified additional requirements prior to submission to government in December. The full business case will need to be approved by the TAFE board, DTF and the Treasurer, prior to submission to ERSC.

4. Funding availability confirmation. Once the business case has been approved, you will need to wait for the funding to become available, the timing of which will usually align with federal and state budget key dates as well as the agreement with the OTCD around the release of funds under the capital works funding agreement (CWFA).