What you need to know and do

To comply with the terms and conditions of your contract with DCJ, you’re required to complete several tasks before and after a contract ends, regardless of how the contract ended.

These tasks include (but are not limited to):

• working with DCJ to provide continuity of service delivery until existing services transition
• responding to financial obligations, records, data and reporting requirements
• addressing assets purchased with DCJ funds, which may be disposal
• attending to matters related to your personnel.

Your contract manager will contact you prior to the end of contract and will be in regular communication.  However, it is also important you maintain contact with your contract manager during the end of contract process to discuss any concerns to ensure you can meet these requirements within the specified timeframe.

Continuity of service delivery and transitioning clients

It is important you work with DCJ to ensure that services continue to support clients and families without disruption as the contract ends (whether expiry or termination), in line with the provisions in clause 5.1 and clause 13.3 of the Agreement for Funding of Services – Standard Terms (Standard Terms).

You’re required to work with your DCJ contract manager to maintain a line of communication as contracts end and as services are winding up, transferring to deliver a new service on behalf of DCJ or transferring services to another service provider. It is important you maintain contact with your contract manager to ensure a smooth transition and to resolve any issues or concerns about service delivery as clients transition to new services.

If the contract is terminated for cause under clause 13.1 of the Standard Terms, you’re required to provide this assistance at your cost (see clause 13.3 (c)(v)).

Records, data and reporting

On expiry or termination of the contract, DCJ may direct you to:

• deliver to us or destroy, all our confidential information and any material or records you hold or control for provision of the services as agreed in the contract, as stated in clause 13.3(a) of the Standard Terms.

In accordance with clause 13.3 (c) of the Standard Terms, on expiry or termination of the contract you must:

• within 20 business days provide any outstanding reports or data due to DCJ under the contract
• provide us with any reports and records that we reasonably require you to provide.

You’re required to provide us with access to premises, records and any copies of records for a period of 7 years after the expiry or termination of the contract, in accordance with clause 15.2 of the Standard Terms.

In accordance with clause 19.2 of the Standard Terms, you’re required to keep full and accurate records in relation to the contract for a period of 7 years after the expiry or termination of the contract (or such longer period as may be required by law or specified by DCJ).  You’re required to dispose of the records once the records are no longer required to be maintained in accordance with clause 19.2 of the Standard Terms.

Financial obligations

Regardless of how the contract ends – expiry or termination – at the end of the contract, within 20 business days, you’re required to provide DCJ with:

• a detailed income and expenditure statement in accordance with Supplementary Condition 12(f) of the Schedule.  DCJ may also require you to provide the income and expenditure statement at other times upon request. An income and expenditure statement template is provided for your use, if you haven't been using your own.
• an income and expenditure report form to report 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.

It is important that you plan ahead to meet the financial obligations agreed in the contract with us. 

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

Returning unspent funds

You’re required to repay any unspent funds to DCJ within 20 business days following the expiry or termination of the contract in accordance with clause 9.6 of the Standard Terms.  This is inclusive for all contracts ending, regardless of how the contract ends.  Please refer to unspent funds policy for further information. 

What are unspent funds?

As outlined in the unspent funds policy, unspent funds are funds provided by DCJ in relation to the services or project agreed in a contract that:

• haven’t been spent, including as a result of an underspend of the funds; and
• haven’t been contractually committed to be paid to a third party within the terms of the contract.

Unspent funds include any interest earned on contract funds within the contract term.

• Unspent funds include committed funds to be paid for services that were delivered or expenses incurred as agreed in the contract and within the contract term but weren’t paid before expiry of the contract term.

Unspent funds cannot be committed to be paid for services that were not delivered as agreed in the contract and were not delivered within the term of the contract.

Returning unspent funds - DCJ’s preference is that providers use Electronic Funds Transfer (EFT) to repay unspent funds, however the return of funds may be made by cheque.

Retention of unspent funds - Unspent funds cannot be retained and transferred over to a new contract and cannot be transferred over to any existing contracts you may have with DCJ.

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

Contracts ending 30 June

Where contracts expire at the end of the financial year, for example 30 June 2026, you’re required to use the same process used for contracts that expire or terminate at any time during the year and, within 20 business days of the end of contract term to:

• submit any outstanding reports or data due to DCJ under the Agreement
• provide a detailed income and expenditure statement
• provided a certified income and expenditure report signed by 2 board members
• repay any unspent funds to DCJ
• manage assets as directed by DCJ.

Annual accountability requirements

Depending on the circumstances at the end of recommissioning there are different annual accountability requirements for service providers.

Providers with an ongoing contractual relationship with DCJ - have a new contract with DCJ or other existing contracts with DCJ

Are required to participate in annual accountability, in line with Supplementary Condition 12 – Schedule, and DCJ annual accountability requirements at the end of the financial year.

As part of the annual accountability contract-level obligations, submit all final financial reports for the new contract and any other contracts with DCJ. Annual accountability at corporate level is also required to be completed.

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

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

Aren’t required to complete annual accountability and will not have access to the PACS portal when the contract ends.

Assets

Your contract obligations require you to maintain an accurate Asset Register and be prepared to provide details of all assets purchased with DCJ funds when requested by us (see section 11.3 of the Standard Terms).  Before expiry or termination of the contract we may require you to provide a copy of the Asset Register.

DCJ will direct you regarding the treatment required for these assets. This will include, in line with clause 11.1(c) of the Standard Terms, our direction to:

• dispose of any assets purchased with DCJ funds prior to the end of the contract term where practical
• 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 and pay to DCJ within 20 business days of the date of the disposal the proceeds (minus your share of purchase cost and reasonable disposal costs) or
• continue using the asset under terms approved in writing by DCJ.

The treatment depends on the type of asset, the circumstances in which it’s being used and, potentially, how the asset may be used to support future service delivery.  

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

Insurance

You must maintain adequate insurance during the contract term, as required under clause 20.1 of the Standard Terms. This includes all policies necessary to comply with your legal obligations and cover your business and operational risks in relation to the contract.

For claims made in the contract term (such as professional indemnity), you must maintain coverage for at least 6 years after the last claim made during the contract term. This ensures your compliance with legal and contractual requirements after the contract ends.

However, this does not extend to claims made after the contract has expired if no claim was made during the term.

Review your insurance arrangements early and confirm ongoing coverage for any claims-made against policies beyond the contract term and seek independent legal advice about your obligations and liability.

Personnel and human resources

You’re solely responsible for all personnel employed, engaged or supported by the contract funds, and obliged to pay all wages, entitlements, superannuation, payroll and other associated costs applicable to your personnel, in accordance with clause 6.1 of the Standard Terms.

You’re expected to support your personnel and have policies and procedures in place to support them during the end-of-contract process.

Workers compensation, long service leave and redundancy

Oncosts like workers compensation or long service leave incurred before the end of the contract can be provisioned in the contract funds, provided they are directly linked to services or obligations that occurred while the contract was active.

If the funds are not provisioned, and incurred after the contract ends, workers compensation or long service leave cannot be paid using contract funds, even if they relate to obligations accrued during the term.

In terms of redundancy, contract funds can’t be used. Redundancy payments are considered an employer responsibility. 

You must meet these obligations from other sources. 

Subcontracting

Any approved subcontracting arrangements you have with a third party to deliver part of the services under the contract, will end with the end of the contract term.

You’re responsible for managing relationships with third party subcontractors before the contract ends.

Recommissioning and subcontracting

If you identify subcontracting arrangements during recommissioning processes for new contracts, you must inform your contract manager to seek approval during contract negotiations. Approved subcontracting arrangements during contract negotiations, are pre-approved and are identified in your new contract.

After a new contract is in place, if you consider you require subcontracting arrangements or changes to pre-approved subcontracting arrangements you must seek DCJ’s consent. Refer to DCJ’s subcontracting policy.