Outside School Hours Care – Decision Making Regarding the Provision of OSHC

Change the provider or operating model of your service

If your school delivers an established Outside School Hours Care (OSHC) service there are a number of steps to take if you want to change the approved provider. Depending on whether there is a third party involved, a school council exits their license agreement directly or both the school and the third party exit the licence agreement. This process may also occur at the expiry of an agreement.

A new agreement can then be executed and Quality Assessment and Regulation Division (QARD) must be notified of the transfer. These processes are detailed below.

1. Make a decision on whether to change the provider

There are several steps to follow:

• reviewing the service quality and relevant circumstances
• informing and involving the school community in the decision
• changing the approved provider, including undertaking an Expression of Interest (EOI) process if looking to appoint a new third party provider.

Review the service quality and any relevant circumstances or evidence

The decision by your school council to make a change to the approved provider of an OSHC service should be based on evidence including, but not limited to:

• poor service quality
• ongoing or serious non-compliance with the national law
• increase in the number of complaints received by service users
• a drop in use of the service by families
• poor financial position or performance that threatens the viability of the service
• inability to manage all administrative and legal requirements of the service
• inability to access or retain suitably qualified staff
• expiry of OSHC licence agreement with the incumbent provider
• pre-determined review point set by school council. For example, in the licence agreement between the school council and the third party provider, a review point may be a quarterly meeting.

In many cases, the factors highlighted above:

• may be addressed through ongoing continuous service improvement
• may not require or result in a change to approved provider.

It is important to understand:

• that changing approved providers does not guarantee a better service for the community
• that arrangements or solutions can be identified in collaboration with a third party provider that may be preferable to changing to another provider
• what requirements other providers, including your school council, can realistically deliver, or deliver in a way that is superior to the existing arrangement.

The school council needs to perform due diligence on the current service, to understand any conditions on service approval, compliance actions, financial liabilities and other transmission of business that will affect the school council’s or other third-party provider's ability to deliver the service.

How to inform and involve the school community in the decision

In deciding whether to change the approved provider or operating model for a service, it is important that the decision making process is clear and transparent for families, staff and other stakeholders. The school council or principal should advise stakeholders:

• why they are looking to change providers.
• what the decision making process will be.
• how stakeholders can participate in the process.

Before a decision is made, there should be time to consult with all stakeholders through:

• open forums
• surveys
• newsletters
• website and email, or
• meetings as appropriate.

Changing the approved provider

If your school council has an existing OSHC licence agreement (DOCX) (staff login required) with a third-party provider, the first step the school council needs to take is to examine dispute resolution, review and exit terms and (or) clauses to understand their options.

If your school council wants to change service providers or the operating model, the process will be similar to the 6 steps outlined in the Decide if you need a service section of this guide.

The school council needs to consider what is working well about the current service, and what requirements are a priority for your service at the school. A review of your current service and priorities may result in:

• no change to your current provider
• a revised OSHC licence agreement with your current provider
• a change of third-party provider
• transferring from a third-party managed to a school council managed service
• transferring from a school council managed to a third-party provided service.

2. The transfer process

Once a decision has been made to change the service’s provider, it is a requirement that the proposed new provider notify QARD of the intent to transfer the service approval.

The school will manage matters related to licence agreements, such as exiting any current agreements and making a new agreement and, if applicable, Memorandum of Understanding, with a new provider if the service is transferring to a new third party provider.

In any case, the transferring provider will need to notify the Commonwealth Department of Education, Skills and Employment of the transfer of service approval by completing and submitting the Notification of Closure, Sale or Transfer of Ownership or Management form. Written notice must be given 42 days or more before ceasing to operate.

The process for transferring the approval of the service to operate varies slightly depending on which type of provider will operate the service after the transfer.

Third-party transfer to school council managed service

For your school council to take over management of an OSHC service they should:

• check that the OSHC licence agreement allows the third party to transfer the service approval to the school council during the life of the licence agreement
• advise key stakeholders
• set up operational, business and legislative approvals to operate the service. For more information, refer to Run a service operated by your school
• apply for provider approval from QARD if they are not already an approved provider
• notify QARD at least 42 days prior to the transfer taking effect (form SA04 on the NQAITS) providing evidence that the transferring provider consents to the transfer (form PA09):
  • The school council will need to hold provider approval prior to lodging the notification. A provider that is still under assessment may not lodge form SA04.
  • QARD may consider a time frame shorter than 42 days if you advise of extenuating circumstances in writing.
  • The notification will also need to include information about where the service will operate from on the school grounds after the transfer, as this may change, whether the contact details or service name will change, and whether a new nominated supervisor will be appointed.
  • If the transferring provider will not provide written consent, the school should contact QARD as soon as possible on 1300 307 415 to discuss. It may be required to take over the service by lodging a new service approval application instead. QARD will assist with this process if required.
• finalise the general transfer of business, such as any equipment or furniture, that may transfer to the school
• notify QARD within 2 business days of the transfer taking effect, after which a new service approval certificate will be issued to the school.

School council transfer to third-party managed service

To transfer the operation to a third-party provider, your school council should:

• conduct an expression of interest (EOI) process to select a preferred provider, using the OSHC EOI template.
• ensure that there are sufficient funds available to finalise all staff entitlements, prior to the transfer of the service, including redundancy payments if applicable
• develop and agree on the OSHC licence agreement with the third-party provider
• provide a signed form PA09 to the third party provider, which is required for them to submit the notification of transfer to QARD.
• provide any documents that the new provider will require for the transfer notification, which may include school maps/plans, calculations of space, and the executed licence agreement.
• finalise the general transfer of business, such as any equipment or furniture, that may transfer to the new provider
• when the transfer takes effect, notify QARD within 2 working days.

It is recommended that schools contact the Department’s Legal Services for advice when transferring to a third -party managed service, particularly concerning transfer of business arrangements and possible employment implications. Your school council should also keep families and the school community, informed about the transfer process.

The responsibility for lodging the notification to QARD rests with the third party provider who will operate the service.

Transfer from a current third-party provider to an alternative third-party provider

To transfer the operation from one third-party provider to another, your school council should:

• check that the contract allows the third party to transfer the service approval to another third party to the school council
• advise key stakeholders
• conduct an expression of interest (EOI) process to select an alternative provider using the OSHC EOI template
• develop and agree on the OSHC licence agreement with the third-party provider
• provide any documents that the new provider will require for the transfer notification, which may include school maps/plans, calculations of space, and the executed licence agreement.

The responsibility for lodging the notification rests with the third party provider who will operate the service.

After the transfer takes effect

The receiving approved provider must give written notice to the parents of children enrolled at the service, of the transfer. They must give notice to parents at least 2 days before the service approval takes effect.

Both providers must also notify QARD of the transfer taking effect after this occurs, or not later than 2 days from this occurring.

Queries about the process to transfer the approval of an OSHC service can be directed to QARD at licensed.childrens.services@education.vic.gov.au