Lump Sum Grant and its impact Service Quality Standards

• Service Quality Standards (SQSs) define the level of which,

LSG Subvention System in terms of management and service provision, service units
New managerialism are expected to attain.
• Accountability • The SQSs are developed according to four principles which
• Efficiency set out the core values of welfare services. These four
• Monitoring principles are:
• Best practice
Provision of information (SQS 1 to 3)
Market driven • make its mode of delivery transparent to the public;
• Cost recovery to clearly define the purposes and objectives of the service
• Competition
• Flexibility Service management (SQS 4 to 9)
• Incentive • tomanageresourceseffectivelywithflexibility,innovation and
continuous quality improvement;
Service Performance and Monitoring System (SPMS)
• Funding Service Agreement (FSA) Service to users (SQS 10 to 11)
• Service Quality Standard (SQS) • to identify and respond to specific service users’ needs;

Perceived benefits of LSG Respect to service users (SQS 12 – 16)

•NGOs could use the reserves on FSA activities and • to respect the rights of service users.
related support services at their discretion
•SWD’s financial audit process and transparency in
allocation for new and basic LSG service units
•Involvement of staff and users in agencies’ management and
corporate governance of NGOs
•Communication and conflict resolution channels

Funding and Service Agreement (Lump Sum Grant) (sample)

FSA and its impacts
• FSA is an annual exercise
• It seems like a common agreement but SWD would
persuade the service
unit to try first
• Once it was committed, it would not likely be revised
• Extra manpower would be given with extra demand
• However, the demand was generated from the mind of the
administrators who care about figures and accountability, and
field staff was not being involved