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Service Agreement Information Kit for Funded Organisations

3.12.1 Suspension of services

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The department is able to immediately suspend delivery of all of or part of the services described under the Servcie Agreement, if the organisation:

  • has failed to meet the Standards and performance targets set out in the Servcie Agreement
  • is undergoing or is about to undergo a performance review or audit under the Audit and Performance Review clause (clause 9.1(b)-(e))
  • has failed to follow any applicable departmental policies or the organisation’s own policies
  • has misused any of the funding, or has shown an inability to properly manage its assets
  • has breached the Service Agreement and notice has been given by the department of the breach
  • has breached any law that is applicable to the services or the operation of the organisation.

The department may also request the organisation to suspend the delivery of services, or part of the services, by giving five business days' written notice, if the department reasonably suspects any of the following:

  • that the organisation has failed, or is likely to fail, to meet the Standards and performance targets listed in any Schedule to the Service Agreement in respect of the services
  • that the organisation has failed, or is likely to fail, to follow any applicable departmental policy or the organisation's own policies
  • that the organisation has misused funding or is unable to properly manage its assets
  • that the organisation or its officer, board member, employee, member, volunteer, subcontractor, representative or agent has breached any law applicable to the services or the operation of the organisation.

When making decisions about suspension, the department will act reasonably and appropriately.

The department will write to the organisation to inform it if the services in Schedule 2 will be reduced to reflect the suspension.  When services are suspended, the department may fund a third party to deliver all or part of the suspended services. This is to ensure continuity of service for clients accessing the services.

The organisation and the department can exercise their rights under the cessation clause (clause 13 - see chapter 3.13) and the  termination clause (clause 14 - see chapter 3.14) at any time during the suspension of the services.

Organisations and the department can enter the dispute resolution process (clause 11 - see chapter 3.11) at any point during the suspension of services.