4.12 Funding that is not spent
The service agreement sets out details of services to be provided by the organisation in return for funding provided by the department. The payment schedule sets out how much and when funds will be paid, and schedule 3 sets out the services.
There may be times when an organisation does not spend all the funding provided by the department. Where services have been deliverd according to specification, and the organisation has some funding left over, this can be retained by the organisation and utilised for ongoing service provision.
Where service delivery targets have not been met, the department will meet with the organisation to determine the most approporiate action.
There are some activities that are funded on an estimate of the volume of service. When the actual volume of service is known, funding will be adjusted up or down to reflect the actual service delivery volume. For these activities, unspent funds can not be retained.
There may be other funding amounts tied to specific purposes. Where these exist, they must be used for those specific purposes. Organisations will be advised in writing of these requirements.