Common use of Subvention Clause in Contracts

Subvention. (7) The Service is subvented by the Social Welfare Department (SWD) under the Lump Sum Grant Subvention System and the basis of subvention is set out in the notification letter issued by the SWD. The Service Operator is required to observe the rules of subvention as set out in the latest Lump Sum Grant Subvention Manual, circulars, guidelines, management letters and relevant correspondence issued by the SWD. The Government will not accept any liabilities or financial implication arising from the Service other than the amount of subvention as approved by the SWD. (8) The amount of subvention has taken into account the personal emoluments of staff, including provident fund for employing qualified professionals and supporting staff, and other charges (covering all other relevant operating expenses including programmes, air-conditioning, training and traveling expenses for staff, central administration, employees’ compensation insurance and public liability insurance, etc.) applicable to the operation of the Service and recognised fee income, if any. Rent and rates in respect of the premises recognised by the SWD for delivery of the Service will be reimbursed separately on an actual cost basis. (9) (D) (10) (11) (12) Upon the Service Operator’s acceptance of the FSA, payment of subventions will be made on a monthly basis. Validity Period This FSA is valid for a time-defined period as set out at Annex. Should the Service Operator breach any terms of condition of this FSA and fail to remedy the same in such manner and within such time as shall be specified in a written notice from the SWD, the SWD may after expiry of such notice, terminate this FSA by giving 30 days’ notice in writing to the Service Operator. Where there is any change to the service performance standards within the agreement period, the SWD will seek mutual agreement with the Service Operator and the Service Operator will be required to achieve new requirements in accordance with the specified implementation schedule. Continuation of service for the next term will be subject to the relevant considerations such as the prevailing policy directive, service needs and the performance of the Service Operator. The SWD reserves the right to reallocate the Service. (a) The Service Operator has engaged or is engaging in acts or activities that are likely to constitute or cause the occurrence of offences endangering national security or which would otherwise be contrary to the interest of national security; (b) the continued engagement of the Service Operator or the continued performance of the FSA is contrary to the interest of national security; or (c) the SWD reasonably believes that any of the events mentioned above is about to occur.

Subvention. (7) The Service is subvented by the Social Welfare Department (SWD) under the Lump Sum Grant Subvention System and the basis of subvention is set out in the notification letter issued by the SWD. The Service Operator is required to observe the rules of subvention as set out in the latest Lump Sum Grant Subvention Manual, circulars, guidelines, management letters and relevant correspondence issued by the SWD. The Government will not accept any liabilities or financial implication arising from the Service other than the amount of subvention as approved by the SWD. (8) The amount of subvention has taken into account the personal emoluments (PE) of staff, including provident fund for employing qualified professionals and supporting staff, and other charges (covering all other relevant operating expenses including programmes, air-conditioning, training and traveling expenses for staff, central administration, employees’ compensation insurance and public liability insurance, etc.) applicable to the operation of the Service and recognised fee income, if any. Rent and rates in respect of the premises recognised by the SWD for delivery of the Service will be reimbursed separately on an actual cost basis. (9) (D) (10) (11) (12) Upon the Service Operator’s acceptance of the FSA, payment of subventions will be made on a monthly basis. Validity Period This FSA is valid for a time-defined period as set out at Annexperiod. Should the Service Operator breach any terms of condition of this FSA and fail to remedy the same in such manner and within such time as shall be specified in a written notice from the SWD, the SWD may after expiry of such notice, terminate this FSA by giving 30 days’ notice in writing to the Service Operator. Where there is any change to the service performance standards within the agreement period, the SWD will seek mutual agreement with the Service Operator and the Service Operator will be required to achieve new requirements in accordance with the specified implementation schedule. Continuation of service for the next term will be subject to the relevant considerations such as the prevailing policy directive, service needs and the performance of the Service Operator. The SWD reserves the right to reallocate the Service. (a) The Service Operator has engaged or is engaging in acts or activities that are likely to constitute or cause the occurrence of offences endangering national security or which would otherwise be contrary to the interest of national security; (b) the continued engagement of the Service Operator or the continued performance of the FSA is contrary to the interest of national security; or (c) the SWD reasonably believes that any of the events mentioned above is about to occur.