How DCJ will manage unspent funds

Unspent funds at the end of a financial year

Unspent funds at the end of a financial year, which are related to a contract must be returned to DCJ as part of the annual accountability process, unless they meet the notified exceptions. In this instance, an application for consent to retain and use unspent funds (DOCX, 439.4 KB) can be submitted for approval.

Service providers are required to repay to DCJ within the current financial year any funds (and any interest earned on these funds) that:

• are unspent in relation to the services agreed in the contract, or
• haven’t been spent in accordance with the contract to DCJ’s reasonable satisfaction.

Unspent funds relating to grants

As stated in clause 8 of the DCJ Grant Agreement, unspent funds or a residual grant must be repaid to DCJ within 1 month of the grant end date, unless otherwise agreed by us in writing.  Grants are acquitted via OneGMS (SmartyGrants).

Recovery of unspent funds may occur, if there is an agreed reduction to the scope of the project or an external event has occurred that no longer requires the project to be delivered.

Unspent funds when contracts end

For the majority of providers operating under the Agreement for Funding of Services, note clauses 9.5 and 9.6, and Funding Deed, note clause 8  where unspent funds must be repaid to Department within 20 business days following the expiry or termination of a contract.

You’re required under that agreement to repay any DCJ funds (and any interest earned on these funds) that:

• are unspent in relation to the services agreed in the contract, or
• haven’t been committed to be spent in accordance with the contract to DCJ’s reasonable satisfaction. 

Unspent funds when services are relinquished

Unspent funds must be returned to DCJ when services are relinquished. If services are being transferred to another provider. you will need to have a legal agreement/deed with this provider. However, DCJ may support an agreement between the first service provider to transfer any unspent funds to the new service provider.

Continue to read next chapter - Gaining approval to use unspent DCJ funds