Common use of Financial Adjustments Clause in Contracts

Financial Adjustments. Activity targets (a) The Department will initiate a joint process with the HHS to determine whether a financial adjustment should be applied in relation to any purchased activity which has breached the thresholds identified bi-annually. This process will take into account any relevant matters that have been identified in a review/analysis of the breach as well as the outcomes of the activity plan implemented to address the activity breach. (b) Activity will be monitored at the purchasing hierarchy level. Providing the HHS meets all relevant KPIs and specific funding allocations, the HHS has the ability to negotiate the transfer of activity across the purchasing hierarchy with the Department. (c) Table 2 demonstrates the financial adjustment that will be applied when activity thresholds have been breached. (d) The HHS may not utilise the provisions within AASB15 Revenue from Contracts with Customers to override the application of any financial adjustment made by the Department in line with Table 2. Over performance Activity exceeds that specified in the service agreement value for in- scope activity as shown in Table 4. Purchasing contracts are capped and an HHS will not be paid for additional activity with the exception of activity that is in scope for the identified purchasing incentives as set out in Table 3. Under performance Activity is below that specified for in-scope activity as shown in Table 4. Purchased activity and the related funding will be withdrawn at 100% of the Queensland Efficient Price and reallocated to an alternate provider that can undertake the activity. Refer to Table 4 for the HHS QWAU target. Failure to deliver on service commitments linked to specific funding allocations Specific funding allocations National Partnership Agreements. It is at the discretion of the Department to withdraw allocated funding pro rata to the level of under delivery. For all other types of activity variance, any financial adjustment will be made at the discretion of the Department.

Financial Adjustments. Activity targets (a) The Department will initiate a joint process with the HHS to determine whether a financial adjustment should be applied in relation to any purchased activity which has breached the thresholds identified bi-annually. This process will take into account any relevant matters that have been identified in a review/analysis of the breach as well as the outcomes of the activity plan implemented to address the activity breach. (b) Activity will be monitored at the purchasing hierarchy level. Providing the HHS meets all relevant KPIs and specific funding allocations, the HHS has the ability to negotiate the transfer of activity across the purchasing hierarchy with the Department. (c) Table 2 demonstrates the financial adjustment that will be applied when activity thresholds have been breached. (d) The HHS may not utilise the provisions within AASB15 Revenue from Contracts with Customers to override the application of any financial adjustment made by the Department in line with Table 2. Over performance Activity exceeds that specified in the service agreement value for in- scope activity as shown in Table 4. Purchasing contracts are capped and an HHS will not be paid for additional activity with the exception of activity that is in scope for the identified purchasing incentives as set out in Table 3. Under performance Activity is below that specified for in-scope activity as shown in Table 4. Purchased activity and the related funding will be withdrawn at 100% of the Queensland Efficient Price and reallocated to an alternate provider that can undertake the activity. Refer to Table 4 for the HHS QWAU target. Failure to deliver on service commitments linked to specific funding allocations Specific funding allocations National Partnership Agreements. It is at the discretion of the Department to withdraw allocated funding pro rata to the level of under delivery. For all other types of activity variance, any financial adjustment will be made at the discretion of the Department.