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Service Agreement Information Kit for Funded Organisations

3.9 Audit and performance review

Disclaimer: this disclaimer must be read in conjunction with the content of this page.

Under the Service Agreement, the department can conduct, or engage a third party to conduct, a performance review or an audit of an organisation. A performance review or an audit may be conducted at any reasonable time, at the department's expense:

  • for the purpose of monitoring and assessing the organisation's performance of its obligations under the agreement or the delivery of the services
  • if the department has reasonable concerns that the organisation may not be delivering, or may be unable to deliver, all or part of the services in accordance with the agreement
  • if the organisation's records give the department reasonable concern about the organisation's compliance, or ability to comply, with the agreement
  • if the department has reasonable concerns that the organisation is not financially stable
  • if the department has reasonable concerns that the organisation has misused all or part of the funding; or
  • to confirm whether the funding has been used for the correct purposes

When an audit or performance review is being undertaken by the department or a third party, the organisation is required to:

  • cooperate with and provide assistance to the department or a third party engaged to conduct the audit or performance review
  • make available all information and records needed for the audit or performance review. Records under the agreement may include for example (but are not limited to) client files, policies/guidelines related to service delivery, records on staff, carer and volunteers, and governance documents related to the compliance of the organisation in meeting its obligations under the service agreement
  • allow the department or a third party access to the organisation's premises or place of business to carry out the audit or performance review.

The department is to act reasonably and fairly when determining whether an audit or performance review needs to be undertaken, and the process for undertaking the audit or review.

Information for Department of Health and Human Services (human services' Service Agreements)

For organisations funded through the Department of Health and Human Services, audits and performance reviews under clause 9 are separate to the reviews undertaken by independent review bodies under clause 3 of the Service Agreement.