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Service Agreement Information Kit for Funded Organisations

3.12.2 Suspension of funding

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The department may immediately suspend payment of any or all of the funding if:

  • the organisation has been requested by the department to suspend all or part of the services under clause 12
  • the organisation does not meet, or report on, a milestone that is linked to a payment of funding
  • the organisation has failed to meet the Standards and performance targets set out in the Service Agreement
  • the organisation has misused or has shown an inability to properly manage its assets
  • the organisation has breached the Service Agreement and notice has been given by the department of the breach
  • the department has reasonable concerns that the organisation is not financially stable.

The department may also stop paying the organisation all or part of the funding on giving five business days’ written notice to the organisation if any of the following occurs:

  • the department reasonably suspects 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
  • the department reasonably suspects that the organisation has misused funding or is unable to properly manage its assets
  • the department has requested the organisation to suspend all or part of the services under clause 12.1A.

The department will write to the organisation to inform it when the funding in Schedule 2 will be reduced to reflect the suspension.

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

Organisations and the department can enter the dispute resolution process at any time during the suspension of funding (see chapter 3.11).