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The requirements describe the approach DCJ will take to manage any unspent funds provided by DCJ at the end of the financial year, end of the contract term or on termination of the contract.
The requirements will apply to human service contracts and grants managed through the Partnership payment and contracts system and for contracts with obligations for financial accountability, annually or at the end of the contract term.
Unspent funds are funds provided by DCJ in relation to the services or project agreed in a contract that:
These requirements apply to the funding provided to service providers under a contract or grant by DCJ. It doesn’t include funds that service providers may contribute from other sources such as philanthropic funds.
Some DCJ contracts including grants make provision to deal with unspent funds. It’s important that you read your contract to see if there are any relevant provisions.
DCJ’s approach to unspent funds encourages funding to be utilised to support the needs of the individuals, families or communities, as outlined in the contract. The requirements reduce the level of unspent funds across programs, and enable funding to be redirected towards the government's strategic priorities.
Unspent DCJ funds may be addressed at different points throughout the contract lifecycle, specifically:
Unspent funds must be returned to DCJ unless:
There are circumstances where DCJ will consider allowing service providers to retain unspent funds for expenditure on their contracted services. DCJ has identified a list of notified exceptions. If unspent funds fall within these notified exceptions, a service provider may make an application to retain these unspent funds (DOCX, 439.4 KB), and DCJ will accept or decline the application.
Where the unspent funds meet the notified exceptions, service providers may work with their contract manager to identify priorities that may be included and strengthen their application to retain and use unspent funds.
The notified exceptions to the unspent funds requirements are at the discretion of DCJ and are reviewed and notified annually. The notified exceptions are:
Information on how to submit an application is at gaining approval to use unspent DCJ funds.
If your organisation doesn’t meet any of the notified exceptions, you will be required to return unspent funds to DCJ.
Continue to read next chapter - How DCJ will manage unspent funds
For any further information, contact your DCJ contract manager.
21 Oct 2024