Frequently asked questions

The FAQs are for DCJ service providers. They clarify financial, reporting, asset, and staffing obligations under the Agreement for Funding of Services (commonly referred to as the Human Services Agreement). 

Note: The FAQs were developed in response to questions DCJ received during recommissioning of the TEI program and will be revised with further questions and answers related to recommissioning of DCJ programs. 

1. What financial requirements apply at contract end?

At the end of a contract, providers must complete several financial obligations depending on their circumstances:

1.1 Providers who have an ongoing contractual relationship with DCJ - either being offered a new contract or if they have other existing contracts with DCJ.

Within 20 business days of contract end or expiry:

• Provide a detailed income and expenditure statement, in line with Supplementary Condition 12(f) of the Schedule.
• Provide an income and expenditure report form to report on your income and expenditure and to certify that funds have been spent in accordance with the contract. The income and expenditure report form must be signed by 2 board members.
• Repay any unspent funds and provide supporting evidence to confirm the provider’s financial position at contract close, in line with clause 9.6 of the Standard Terms.
• Provide any outstanding reports or data in line with clause 13.3(c)(iii) of the Standard Terms. DCJ reporting systems will remain open for 20 business days from the end of the contract term.

Assets

• If assets were purchased with DCJ funds, in line with clause 11.1(c) of the Standard Terms DCJ may direct you to:
  • Pay DCJ within 20 business days of expiry or termination the written-down value of the asset (calculated using ATO depreciation rates).; or
  • Dispose of the asset in a timeframe agreed with DCJ for the best price reasonably obtainable price and pay to DCJ within 20 business days the proceeds (minus your share of purchase cost and reasonable disposal costs).; or
  • Continue using the asset under terms approved in writing by DCJ.

Note: Your contract manager will work with you to ensure this is completed in a reasonable timeframe.

Within 4 months of the end of the financial year:

• Participate in annual accountability, in line with Supplementary Condition 12 of the Schedule.
• As part of Annual Accountability submit all final financial reports to DCJ for the new CAFS contract and any other contracts with DCJ, as well as corporate level.

Note: Contracts that are closed, are not included in the annual accountability process. The income and expenditure statement, and income and expenditure report form certified by two board members provided at the end of contract process is all that is required for closed contracts.

1.2 Providers who haven’t been offered a new contract and who don’t have any other contracts with DCJ.

Within 20 business days of contract end or expiry:

• Provide a detailed income and expenditure statement, in line with Supplementary Condition 12(f) of the Schedule.
• Provide an income and expenditure report form to report on your income and expenditure. The form must be certified by two board members to certify funds have been spent in accordance with the contract, in line with Supplementary Condition 12(g) – Schedule.
• Repay any unspent funds and provide supporting evidence to confirm the provider’s financial position at contract close, in line with clause 9.6 of the Standard Terms.
• Provide any outstanding reports or data in line with clause 13.3(c)(iii) of the Standard Terms.

Assets

• Where practical, dispose of any assets purchased with DCJ funds prior to the end of the contract term.
• If assets were purchased with DCJ funds, in line with clause 11.1(c) of the Standard Terms:
  • Pay DCJ within 20 business days of expiry or termination the written-down value of the asset (calculated using ATO depreciation rates).; or
  • Dispose of the asset in a timeframe agreed with DCJ for the best price reasonably obtainable pay to DCJ within 20 business days the proceeds (minus your share of purchase cost and reasonable disposal costs).; or
  • Continue using the asset under terms approved in writing by DCJ.

Note: Your contract manager will work with you to ensure this is completed in a reasonable timeframe.

2. How do service providers return unspent funds at end of contract?

At the end of the contract the preference of DCJ is that providers use Electronic Funds Transfer (EFT) to repay unspent funds, however the return of funds may be made by cheque. See DCJ page on Recovering DCJ Funds for more information.

Unspent funds must be returned within 20 business days of the contract end date or termination, in line with clause 9.6 of the Standard Terms.

3. Can service providers rollover unspent funds to new contracts?

No. Unspent funds cannot be rolled over to new contracts. Clause 9.6 of the Standard Terms requires service providers to repay any funds (and any interest earned) that have not been spent or contractually committed in accordance with the agreement within 20 business days of the contract ending.

4. Will the 20-business day return period be enforced during the holiday season?

Yes. The 20-business day requirement remains in effect regardless of the holiday period, however, any day that is a Saturday, Sunday, or gazetted public holiday in New South Wales does not count as a business day. For example, where a contract ends on 31 December 2025 the deadline for returning unspent funds is 30 January 2026.

If you are unable to meet the timeframe, discuss with your contract manager to seek approval for an extension.

5. Can service providers provision for invoices not received before the end of the contract?

Yes. Allowances can be made for creditors and outstanding invoices, provided they relate to expenses incurred before the end of the contract term, for example between 1 July and 31 December 2025.

This is consistent with clause 9.3 (‘Use of Funds’) of the Standard Terms, which permits funds to be used for services delivered within the contract term. These provisions should:

• Be included in the final Income and Expenditure Statement as committed funds.
• Be supported by reasonable estimates and documentation to demonstrate the obligation was incurred during the contract term.

If actual invoices differ from estimates, adjustments can be reflected in the audited financial statements submitted later for annual accountability.

For providers who have not been offered a new contract or don’t have any other contracts, invoices must be provided and adjustments made within 20 business days from the end of the contract.

Expenses that are incurred beyond the contract term for example, cost to prepare financial statements or insurances may be considered by DCJ. Discuss with your contract manager.

6. Do service providers still need to complete Annual Accountability?

Service providers who haven’t been offered a new contract or don’t have any other contracts with DCJ aren’t required to complete annual accountability.

Service providers with an ongoing contractual relationship with DCJ, will need to complete annual accountability for new and existing contracts along with the corporate level financial reports and declaration.

In July each year, providers that held a contract during the previous financial year will be issued an annual accountability form in the PACS Portal to complete.

Providers will be issued a separate annual accountability form for each contract that was active during that financial year.

7. Will service providers still have access to the PACS Portal after the contract ends?

This depends on the service provider circumstances.

Service providers who have new or continuing contracts with DCJ will retain access to the PACS Portal after the contract ends.  This is necessary to complete the annual accountability process between July and October.

Service providers who haven’t been offered a new contract or don’t have any other contracts with DCJ will continue to have access to PACS Portal until the contract manager advises PACS admin that the provider no longer requires access.

Once this occurs PACS admin will remove access, and the provider will no longer have access to the PACS Portal.

8. Can program funds cover oncosts like workers compensation or long service leave:

8.1 After end of the contract term?

No. Under clause 9.3 of the Standard Terms, program funds may only be used for services delivered within the contract term. This means that costs incurred after the contract ends, cannot be paid using program funds, even if they relate to obligations accrued during the term.

8.2 Before end of the contract term?

Yes. Costs that are incurred during the contract term but payable after the contract term may be provisioned for, provided they are directly linked to services or obligations that occurred while the contract was active. These costs must be clearly documented and treated as committed funds in the final financial reporting.

9. Can service providers use program funds for redundancy payments?

No.  Providers must meet these obligations from other sources. Redundancy payments are considered an employer responsibility under clause 6.1 of the Standard Terms.

10. EAP support

DCJ appreciates end of contract processes has an implication on staff who are exiting the delivery of the program. DCJ may offer Employee Assistance program (EAP) support for your staff through the DCJ’s EAP provider - Converge. Providers without EAP programs should discuss this with their contract managers who will advise you on how to access this support if needed during the end of contract process.

11. How will providers complete end of contract requirements if the provider is no longer being funded, for example provide an income and expenditure statement within 20 days?

Providers are required to plan for end of contract processes before the end of the contract term to ensure they meet obligations as agreed in the contract.

Providers that won’t have an ongoing relationship with DCJ, are encouraged to maintain communication with their contract manager about their obligations to provide an income and expenditure statement, return unspent funds, and to determine treatment of assets before the contract ends.

DCJ funds are provided to deliver the service, DCJ doesn’t fund the organisation, the provider is responsible for meeting end of contract requirements.

If you are unable to meet the requirements, contact your contract manager. DCJ may consider appropriate arrangements and/ or an extension on a case-by-case basis.

12. What happens to depreciated assets purchased with DCJ funds? 

If an asset purchased with DCJ funds retains any residual value, it must be included in the return process (clause 11.1(c) & (d) of the Standard Terms).

For providers who are not offered a new contract, DCJ will determine the next steps for those assets. If the assets have value, DCJ may direct the provider to:

• Dispose of the asset and the proceeds returned to DCJ (minus your share of purchase cost and reasonable disposal costs); or
• Continue using the asset under terms approved in writing by DCJ.

Providers should maintain an accurate Asset Register and be prepared to provide details of all assets purchased with DCJ funds when requested by us (see clause 11.3 of the Standard Terms).  Before expiry or termination, we may require you to provide a copy of the Asset Register. This ensures compliance and supports an orderly transition.

13. What are service provider insurance obligations after the contract ends?

For any claims-made in the contract term (such as professional indemnity), coverage must be maintained for at least six years after the last claim made during the contract term. This ensures compliance with legal and contractual requirements even after the contract ends. Required under clause 20.1 of the Standard Terms

This does not extend to claims made after the contract has expired, and if no claim was made during the term. Providers should review their insurance arrangements early and confirm ongoing coverage for any claims made during or beyond the contract term.

Note: For providers that have claims made against them in the contract term, and are not offered a new contract, and who are intending to cease operating (deregister) have different compliance obligations. Discuss this with your contract manager.   

Reference guide to costs: