About the funding

6. Paying the Funding

6.1 Subject to parliamentary appropriation we will pay you the Funding in accordance with Item C and Item F of the Schedule.
6.2 However, we will only pay the Funding if you are not in breach of this Agreement.
6.3 For the purposes of clause 6.2, being in breach of this agreement includes being in serious breach of any other agreement under which you receive funding from the Commonwealth (a “serious breach” is one which would entitle the Commonwealth to terminate the other agreement).

7. Financial Security

At any time we may require you to provide an unconditional financial security for an amount up to the amount of funding provided by us, from a financial institution that we approve, using a form that we provide. You must do this within 10 Business Days of our request.

8. When can we withhold payment?

8.1 We can withhold any or all of a Funding payment if we consider that you:

1. have not carried out Activities in accordance with this Agreement; or
2. have not spent Funding in accordance with this Agreement; or
3. have breached any other term of this Agreement; or
4. have breached any other agreement as referred to in Clause 6.3

8.2 We will pay the withheld payment under clause 8.1(a) when you have carried out the Activities to which the payment relates according to the requirements of the Agreement.

9. Spending the Funding

9.1 You must spend the Funding:

1. only on carrying out the Activity; and
2. in accordance with this Agreement (including in accordance with the  Budget if stipulated in the Schedule).

10. Acquitting the Funding

10.1 You must provide the reports set out in the Schedule. Where the report is a financial acquittal report, we may (at our discretion) require it to be independently audited, non-audited or in any other form.
10.2 A financial acquittal report must:

1. be in accordance with the Agreement, applicable Australian Accounting Standards¹(Opens in a new tab/window) and based on proper accounts and records; and
2. report income and expenditure relating to the Funding provided under this Agreement. The report must show expenditure in accordance with the approved Budget (where applicable) or, where there is no approved Budget, show to our satisfaction major items/areas of expense; and
3. verify that you have spent the Funding provided on the Activity and in accordance with this Agreement; and
4. include any other matters (in addition to the matters set out in the Schedule) we require to allow us to meet Commonwealth financial management and accountability legislation.

10.3 Independently audited financial acquittal reports must be audited by:

1. a Registered Company Auditor under the Corporations Act 2001 (Cth); or
2. a member of CPA Australia; or
3. a member of the  Institute of Public Accountants in Australia; or
4. a member of the Institute of Chartered Accountants in Australia,
   
   The auditor must not be a principal member, shareholder, officer or employee of yours or of a Related Body Corporate as defined in the Corporations Act 2001 (Cth). Reports must be audited in accordance with Australian Audit Standards²(Opens in a new tab/window).

10.4 A non-audited financial acquittal report must  be certified by your board, your chief executive officer or one of your officers, with authority to do so, verifying that you have spent the Funding on the Activity in accordance with the Agreement.
10.5 At any time up to five (5) years after the Activity Period, we may ask you to send us:

1. original receipts or other documents which account for the expenditure of the Funding; and/or
2. a statutory declaration made in accordance with the Statutory Declarations Act 1959 (Cth) accounting for the expenditure of the Funding.

11. Repaying the Funding

11.1 You must repay the Funding (or the relevant part of it) to us in any of the circumstances set out below:

1. we overpay you;
2. we pay you an amount that you incorrectly claim;
3. we pay you an amount that you are unable to spend in accordance with this Agreement;
4. you spend an amount other than in accordance with this Agreement.

11.2 If you must repay an amount under clause 11.1:

1. you must do so within 20 Business Days after we give you a notice in writing; and
2. you must pay interest on the amount from the end of the 20 Business Days until the date of repayment (and interest is calculated at the general interest charge rate as specified in section 8AAD of the Taxation Administration Act 1953 (Cth) on a daily compounding basis); and
3. we may recover the amount and any interest as a debt due to the Commonwealth.

11.3 We can recover all or any of the amount and interest by deducting it from subsequent amounts we pay you under this Agreement or any other agreement we have with you.

12. GST – Goods and Services Tax

12.1 This clause 12 applies if you are registered or required to be registered, for GST and the Funding arrangement is a payment for a Taxable Supply.
12.2 You must notify us immediately of any change to your GST registration status.
12.3 We are registered for GST, and will notify you immediately of any change to our GST registration status.
12.4 The Funding under this Agreement includes an amount in respect of your GST liability.
12.5 You are responsible for claiming all Input Tax Credits to which you are entitled under this Agreement.  We will not be responsible for any additional costs you may incur as a consequence of failing to claim such Input Tax Credits.
12.6 If an Activity, or any part of it, is not a Taxable Supply (or ceases to be a Taxable Supply) or the rate of GST applying to it is reduced, then we may reduce the amounts we pay in relation to that Activity accordingly.
12.7 The following provisions apply to Tax Invoices:

1. you allow us to issue you with a Recipient Created Tax Invoice (RCTI) for any Taxable Supplies you make under this Agreement;
2. if we issue an RCTI (and we may do so by facsimile, email or pre-paid post), we must do so within 28 days of determining the value of the Taxable Supply to which the RCTI relates and you must not issue a Tax Invoice for the same Taxable Supply;
3. if we issue an RCTI and an Adjustment Event occurs, we will issue you with an Adjustment Note within 28 days of the Adjustment Event;
4. if we do not issue you with a valid RCTI within 28 days, the agreement contained in this clause regarding the issue of RCTIs is no longer valid and you must:
   1. provide us with a Tax Invoice (which you may do by facsimile, email or pre-paid post ); and
   2. issue any Adjustment Notes relating to Taxable Supplies for which you previously issued a valid Tax Invoice within 28 days of the Adjustment Event.

12.8 If we issue an RCTI and the amount of GST paid by us is ultimately less than your GST liability, we will pay to you an additional amount to cover that additional liability.