Common use of FINANCIAL HEALTH Clause in Contracts

FINANCIAL HEALTH. 12.1 The Department will undertake an assessment of financial health and control (ESFA financial health assessment - XXX.XX (xxx.xxx.xx)). Should the Department, at its absolute discretion, consider that the outcome of any financial health and/or control assessment is inadequate the Department may, in its absolute discretion take one or more of the following actions: (a) require the Contractor to, and the Contractor will, accept and comply with additional Contract obligations relating to the improvement of financial health and/or control arrangements; (b) require the Contractor to suspend the recruitment of Learners to the Services and/or cap any growth in Learner numbers; (c) give consideration to what changes, if any, are required in its allocations when finalising the amount of funding in any subsequent Contract between the parties; and/or (d) terminate the Contract in accordance with Clause 40.4.2. 12.2 Where the Contractor fails to comply with requirements imposed under Clauses 12.1(a) and/or 12.1(b) the Department will consider termination under Clause 40.4.2. 12.3 Failure to submit accounts for assessment when requested will automatically deem the assessment under clause 12.1 as 'inadequate' and clauses 12.1(a) to 12.1(d) will apply. 12.4 Where the outcome of a financial assessment illustrates a deterioration from the previous assessment the Department may in its absolute discretion request such further assurance or information from the Contractor as it deems necessary. 12.5 The Contractor must notify the Department immediately if it, or any Contractor Related Party, is experiencing or forecasting any financial difficulties and the Department may ask for additional financial information to obtain assurance of continuity of delivery of the Services. 12.6 The Department may require the Contractor to carry out an independent business review at the Contractor’s cost (or for the Department to procure and recharge to the Contractor at its sole discretion) if the Department has concerns over the financial health of the Contractor. 12.7 The Department can at any time require the Contractor at its own cost to provide a copy of the Contractor’s latest accounts, any historic accounts as requested, and submit further copies of the accounts as soon as they become available and to provide, upon request: 12.7.1 the Contractor’s up to date management accounts, including financial performance against delivery; 12.7.2 financial forecasts of the Contractor’s financial position for the next 12 months; 12.7.3 cash flow forecasts for the next 12 months; 12.7.4 any additional financial information the Department deems necessary. 12.8 Where the further information required from the Contractor under Clauses 12.4, 12.5, 12.6 and 12.7 does not provide adequate assurance to the Department then the Department may in its absolute discretion take one or more of the actions set out in Clauses 12.1(a) to 12.1(d). 12.9 The Department reserves the right to request that the Contractor provide a guarantee or other form of security on terms that will be notified to the Contractor.

FINANCIAL HEALTH. 12.1 11.1 The Department will undertake an assessment of financial health and control (ESFA financial health assessment - XXX.XX (xxx.xxx.xx)). Should the Department, at its absolute discretion, consider that the outcome of any financial health and/or control assessment is inadequate the Department may, in its absolute discretion take one or more of the following actions: (a) require the Contractor Provider to, and the Contractor Provider will, accept and comply with additional Contract obligations conditions of funding relating to the improvement of financial health and/or control arrangements; (b) require the Contractor Provider to suspend the recruitment of Learners to the Services and/or cap any growth in Learner numbers; (c) give consideration to what changes, if any, are required in its allocations when finalising the amount of funding in any subsequent Contract Agreement between the parties; and/or (d) terminate the Contract Agreement in accordance with Clause 40.4.236.3.2. 12.2 11.2 Where the Contractor Provider fails to comply with requirements imposed under Clauses 12.1(a11.1(a) and/or 12.1(b11.1(b) the Department will consider termination under Clause 40.4.236.3.2. 12.3 11.3 Failure to submit accounts for assessment when requested will automatically deem the assessment under clause 12.1 Clause 11.1 as 'inadequate' and clauses 12.1(aClauses 11.1(a) to 12.1(d11.1(d) will apply. 12.4 11.4 Where the outcome of a financial assessment illustrates a deterioration from the previous assessment the Department may in its absolute discretion request such further assurance or information from the Contractor Provider as it deems necessary. 12.5 11.5 The Contractor Provider must notify the Department immediately if it, or any Contractor Provider Related Party, is experiencing or forecasting any financial difficulties and the Department may ask for additional financial information to obtain assurance of continuity of delivery of the Services. 12.6 11.6 The Department may require the Contractor Provider to carry out an independent business review at the ContractorProvider’s cost (or for the Department to procure and recharge to the Contractor Provider at its sole discretion) if the Department has concerns over the financial health of the ContractorProvider. 12.7 11.7 The Department can at any time require the Contractor Provider at its own cost to provide a copy of the ContractorProvider’s latest accounts, any historic accounts as requested, and submit further copies of the accounts as soon as they become available and to provide, upon request: 12.7.1 11.7.1 the ContractorProvider’s up to date management accounts, including financial performance against delivery; 12.7.2 11.7.2 financial forecasts of the ContractorProvider’s financial position for the next 12 months; 12.7.3 11.7.3 cash flow forecasts for the next 12 months; 12.7.4 11.7.4 any additional financial information the Department deems necessary. 12.8 11.8 Where the further information required from the Contractor Provider under Clauses 12.411.4, 12.511.5, 12.6 11.6 and 12.7 11.7 does not provide adequate assurance to the Department then the Department may in its absolute discretion take one or more of the actions set out in Clauses 12.1(aClause 11.1(a) to 12.1(d11.1(d). 12.9 11.9 The Department reserves the right to request that the Contractor Provider provide a guarantee or other form of security on terms that will be notified to the ContractorProvider.

FINANCIAL HEALTH. 12.1 The Department will undertake an assessment of financial health and control (ESFA financial health assessment - XXX.XX (xxx.xxx.xx)). Where the Contractor is a college, the financial assessment will be undertaken in accordance with the formal intervention – financial provisions in the Contractor’s grant funding agreement with the Department. 12.2 Should the Department, at its absolute discretion, consider that the outcome of any financial health and/or control assessment is inadequate the Department may, in its absolute discretion take one or more of the following actions: (a) require the Contractor to, and the Contractor will, accept and comply with additional Contract obligations relating to the improvement of financial health and/or control arrangements; (b) require the Contractor to suspend the recruitment of Learners to the Services and/or cap any growth in Learner numbers; (c) give consideration to what changes, if any, are required in its allocations when finalising the amount of funding in any subsequent Contract between the partiesParties; and/or (d) terminate the Contract in accordance with Clause 40.4.240.4.1 (Termination). 12.2 12.3 Where the Contractor fails to comply with requirements imposed under Clauses 12.1(a12.2(a) and/or 12.1(b12.2(b) the Department will consider termination under Clause 40.4.240.4.2 (Termination). 12.3 12.4 Failure to submit accounts for assessment when requested will automatically deem the assessment under clause 12.1 12.2 as 'inadequate' and clauses 12.1(a12.2(a) to 12.1(d12.2(d) will apply. 12.4 12.5 Where the outcome of a financial assessment illustrates a deterioration from the previous assessment the Department may in its absolute discretion request such further assurance or information from the Contractor as it deems necessary. 12.5 12.6 The Contractor must notify the Department immediately if it, or any Contractor Related Party, is experiencing or forecasting any financial difficulties and the Department may ask for additional financial information to obtain assurance of continuity of delivery of the Services. 12.6 12.7 The Department may require the Contractor to carry out an independent business review at the Contractor’s cost (or for the Department to procure and recharge to the Contractor at its sole discretion) if the Department has concerns over the financial health of the Contractor. 12.7 12.8 The Department can at any time require the Contractor at its own cost to provide a copy of the Contractor’s latest accounts, any historic accounts as requested, and submit further copies of the accounts as soon as they become available and to provide, upon request: 12.7.1 12.8.1 the Contractor’s up to date management accounts, including financial performance against delivery; 12.7.2 12.8.2 financial forecasts of the Contractor’s financial position for the next 12 twelve (12) months; 12.7.3 12.8.3 cash flow forecasts for the next 12 twelve (12) months; 12.7.4 12.8.4 any additional financial information the Department deems necessary. 12.8 12.9 Where the further information required from the Contractor under Clauses 12.4, 12.5, 12.6 12.6, 12.7 and 12.7 12.8 does not provide adequate assurance to the Department then the Department may in its absolute discretion take one or more of the actions set out in Clauses 12.1(a12.2(a) to 12.1(d12.2(d). 12.9 12.10 The Department reserves the right to request that the Contractor provide a guarantee or other form of security on terms that will be notified to the Contractor.

FINANCIAL HEALTH. 12.1 The Department will undertake an assessment of financial health and control (ESFA financial health assessment - XXX.XX (xxx.xxx.xx)). Where the Contractor is a college, the financial assessment will be undertaken in accordance with the formal intervention – financial provisions in the Contractor’s grant funding agreement with the Department. 12.2 Should the Department, at its absolute discretion, consider that the outcome of any financial health and/or control assessment is inadequate the Department may, in its absolute discretion take one or more of the following actions: (a) require the Contractor to, and the Contractor will, accept and comply with additional Contract obligations relating to the improvement of financial health and/or control arrangements; (b) require the Contractor to suspend the recruitment of Learners to the Services and/or cap any growth in Learner numbers; (c) give consideration to what changes, if any, are required in its allocations when finalising the amount of funding in any subsequent Contract between the partiesParties; and/or (d) terminate the Contract in accordance with Clause 40.4.240.4.2 (Termination). 12.2 12.3 Where the Contractor fails to comply with requirements imposed under Clauses 12.1(a12.2(a) and/or 12.1(b12.2(b) the Department will consider termination under Clause 40.4.240.4.2 (Termination). 12.3 12.4 Failure to submit accounts for assessment when requested will automatically deem the assessment under clause 12.1 12.2 as 'inadequate' and clauses 12.1(a12.2(a) to 12.1(d12.2(d) will apply. 12.4 12.5 Where the outcome of a financial assessment illustrates a deterioration from the previous assessment the Department may in its absolute discretion request such further assurance or information from the Contractor as it deems necessary. 12.5 12.6 The Contractor must notify the Department immediately if it, or any Contractor Related Party, is experiencing or forecasting any financial difficulties and the Department may ask for additional financial information to obtain assurance of continuity of delivery of the Services. 12.6 12.7 The Department may require the Contractor to carry out an independent business review at the Contractor’s cost (or for the Department to procure and recharge to the Contractor at its sole discretion) if the Department has concerns over the financial health of the Contractor. 12.7 12.8 The Department can at any time require the Contractor at its own cost to provide a copy of the Contractor’s latest accounts, any historic accounts as requested, and submit further copies of the accounts as soon as they become available and to provide, upon request: 12.7.1 12.8.1 the Contractor’s up to date management accounts, including financial performance against delivery; 12.7.2 12.8.2 financial forecasts of the Contractor’s financial position for the next 12 twelve (12) months; 12.7.3 12.8.3 cash flow forecasts for the next 12 twelve (12) months; 12.7.4 12.8.4 any additional financial information the Department deems necessary. 12.8 12.9 Where the further information required from the Contractor under Clauses 12.4, 12.5, 12.6 12.6, 12.7, and 12.7 12.8 does not provide adequate assurance to the Department then the Department may in its absolute discretion take one or more of the actions set out in Clauses 12.1(a12.2(a) to 12.1(d12.2(d). 12.9 12.10 The Department reserves the right to request that the Contractor provide a guarantee or other form of security on terms that will be notified to the Contractor.

FINANCIAL HEALTH. ‌ 12.1 The Department will undertake an assessment of the Contractor's financial health and control (ESFA financial health assessment - XXX.XX (xxx.xxx.xx)). Should the Department, at its absolute discretion, consider that the outcome of any financial health and/or control assessment is inadequate the Department may, in its absolute discretion take one or more of the following actions:actions:‌ (a) 12.1.1 require the Contractor to, and the Contractor will, accept and comply with additional Contract obligations relating to the improvement of financial health and/or control arrangements;arrangements;‌ (b) 12.1.2 require the Contractor to suspend the recruitment of Learners to the Services and/or cap any growth in Learner numbers;numbers;‌ (c) 12.1.3 give consideration to what changes, if any, are required in its allocations when finalising the amount of funding in any subsequent Contract contract between the parties; and/or (d) 12.1.4 terminate the Contract in accordance with Clause 40.4.2.39.4.3.‌ 12.2 Where the Contractor fails to comply with requirements imposed under Clauses 12.1(a) 12.1.1 and/or 12.1(b) 12.1.2 the Department will consider termination of the Contract under Clause 40.4.239.4.3. 12.3 Failure to submit accounts for assessment when requested will automatically deem the assessment under clause Clause 12.1 as 'inadequate' and clauses 12.1(a) Clauses 12.1.1 to 12.1(d) 12.1.4 will apply. 12.4 Where the outcome of a financial assessment illustrates a deterioration from the previous assessment the Department may in its absolute discretion (and without prejudice to its rights under Clause 12.1) request such further assurance or information from the Contractor as it deems necessary.necessary.‌ 12.5 The Contractor must notify the Department immediately if it, or any Contractor Related Party, is experiencing or forecasting any financial difficulties and the Department may ask for additional financial information to obtain assurance of continuity of delivery of the Services.Services.‌ 12.6 The Department may require the Contractor to carry out procure an independent business review of the Contractor’s financial health at the Contractor’s cost (or for the Department to may procure such a review and recharge the costs to the Contractor Contractor, at its sole discretion) if the Department has concerns over the financial health of the Contractor.Contractor.‌ 12.7 The Department can at any time require the Contractor at its own cost to provide a copy of the Contractor’s latest accounts, any historic accounts as requested, and submit further copies of the accounts as soon as they become available and to provide, upon request:request:‌ 12.7.1 the Contractor’s up to date management accounts, including financial performance against delivery; 12.7.2 financial forecasts of the Contractor’s financial position for the next 12 months; 12.7.3 cash flow forecasts for the next 12 months; 12.7.4 any additional financial information the Department deems necessary. 12.8 Where the further information required from the Contractor under Clauses 12.4, 12.5, 12.6 and 12.7 does not provide adequate assurance to the Department then the Department may in its absolute discretion take one or more of the actions set out in Clauses 12.1(a) 12.1.1 to 12.1(d)12.1. 12.9 The Department reserves the right to request that the Contractor provide a guarantee or other form of security on terms that will be notified to the Contractor.

FINANCIAL HEALTH. 12.1 The Department will undertake an assessment of financial health and control (ESFA financial health assessment - XXX.XX (xxx.xxx.xx)). Should the Department, at its absolute discretion, consider that the outcome of any financial health and/or control assessment is inadequate the Department may, in its absolute discretion take one or more of the following actions: (a) require the Contractor to, and the Contractor will, accept and comply with additional Contract obligations relating to the improvement of financial health and/or control arrangements; (b) require the Contractor to suspend the recruitment of Learners to the Services and/or cap any growth in Learner numbers; (c) give consideration to what changes, if any, are required in its allocations when finalising the amount of funding in any subsequent Contract between the parties; and/or (d) terminate the Contract in accordance with Clause 40.4.2. 12.2 Where the Contractor fails to comply with requirements imposed under Clauses 12.1(a) and/or 12.1(b) the Department will consider termination under Clause 40.4.2. 12.3 Failure to submit accounts for assessment when requested will automatically deem the assessment under clause 12.1 as 'inadequate' and clauses 12.1(a) to 12.1(d) will apply. 12.4 Where the outcome of a financial assessment illustrates a deterioration from the previous assessment the Department may in its absolute discretion request such further assurance or information from the Contractor as it deems necessary. 12.5 The Contractor must notify the Department immediately if it, or any Contractor Related Party, is experiencing or forecasting any financial difficulties and the Department may ask for additional financial information to obtain assurance of continuity of delivery of the Services. 12.6 The Department may require the Contractor to carry out an independent business review at the Contractor’s cost (or for the Department to procure and recharge to the Contractor at its sole discretion) if the Department has concerns over the financial health of the Contractor. 12.7 The Department can at any time require the Contractor at its own cost to provide a copy of the Contractor’s latest accounts, any historic accounts as requested, and submit further copies of the accounts as soon as they become available and to provide, upon request:accounts 12.7.1 the Contractor’s up to date management accounts, including financial performance against delivery; 12.7.2 financial forecasts of the Contractor’s financial position for the next 12 months; 12.7.3 cash flow forecasts for the next 12 months; 12.7.4 any additional financial information the Department deems necessary. 12.8 Where the further information required from the Contractor under Clauses 12.4, 12.5, 12.6 and 12.7 does not provide adequate assurance to the Department then the Department may in its absolute discretion take one or more of the actions set out in Clauses 12.1(a) to 12.1(d). 12.9 The Department reserves the right to request that the Contractor provide a guarantee or other form of security on terms that will be notified to the Contractor.

FINANCIAL HEALTH. 12.1 The Department will undertake an assessment of the Contractor's financial health and control (ESFA financial health assessment - XXX.XX (xxx.xxx.xx)). Should the Department, at its absolute discretion, consider that the outcome of any financial health and/or control assessment is inadequate the Department may, in its absolute discretion take one or more of the following actions:actions:‌ (a) 12.1.1 require the Contractor to, and the Contractor will, accept and comply with additional Contract obligations relating to the improvement of financial health and/or control arrangements;arrangements;‌ (b) 12.1.2 require the Contractor to suspend the recruitment of Learners to the Services and/or cap any growth in Learner numbers;numbers;‌ (c) 12.1.3 give consideration to what changes, if any, are required in its allocations when finalising the amount of funding in any subsequent Contract contract between the parties; and/or (d) 12.1.4 terminate the Contract in accordance with Clause 40.4.2.40.4.3.‌ 12.2 Where the Contractor fails to comply with requirements imposed under Clauses 12.1(a) 12.1.1 and/or 12.1(b) 12.1.2 the Department will consider termination of the Contract under Clause 40.4.240.4.3. 12.3 Failure to submit accounts for assessment when requested will automatically deem the assessment under clause Clause 12.1 as 'inadequate' and clauses 12.1(a) Clauses 12.1.1 to 12.1(d) 12.1.4 will apply. 12.4 Where the outcome of a financial assessment illustrates a deterioration from the previous assessment the Department may in its absolute discretion (and without prejudice to its rights under Clause 12.1) request such further assurance or information from the Contractor as it deems necessary.necessary.‌ 12.5 The Contractor must notify the Department immediately if it, or any Contractor Related Party, is experiencing or forecasting any financial difficulties and the Department may ask for additional financial information to obtain assurance of continuity of delivery of the Services.Services.‌ 12.6 The Department may require the Contractor to carry out procure an independent business review of the Contractor’s financial health at the Contractor’s cost (or for the Department to may procure such a review and recharge the costs to the Contractor Contractor, at its sole discretion) if the Department has concerns over the financial health of the Contractor.Contractor.‌ 12.7 The Department can at any time require the Contractor at its own cost to provide a copy of the Contractor’s latest accounts, any historic accounts as requested, and submit further copies of the accounts as soon as they become available and to provide, upon request:request:‌ 12.7.1 the Contractor’s up to date management accounts, including financial performance against delivery; 12.7.2 financial forecasts of the Contractor’s financial position for the next 12 months; 12.7.3 cash flow forecasts for the next 12 months; 12.7.4 any additional financial information the Department deems necessary. 12.8 Where the further information required from the Contractor under Clauses 12.4, 12.5, 12.6 and 12.7 does not provide adequate assurance to the Department then the Department may in its absolute discretion take one or more of the actions set out in Clauses 12.1(a) 12.1.1 to 12.1(d)12.1. 12.9 The Department reserves the right to request that the Contractor provide a guarantee or other form of security on terms that will be notified to the Contractor.

FINANCIAL HEALTH. 12.1 The Department will undertake an assessment of the Contractor's financial health and control (ESFA financial health assessment - XXX.XX (xxx.xxx.xx)). Should the Department, at its absolute discretion, consider that the outcome of any financial health and/or control assessment is inadequate the Department may, in its absolute discretion take one or more of the following actions: (a) 12.1.1 require the Contractor to, and the Contractor will, accept and comply with additional Contract obligations relating to the improvement of financial health and/or control arrangements; (b) 12.1.2 require the Contractor to suspend the recruitment of Learners to the Services and/or cap any growth in Learner numbers; (c) 12.1.3 give consideration to what changes, if any, are required in its allocations when finalising the amount of funding in any subsequent Contract contract between the parties; and/or (d) 12.1.4 terminate the Contract in accordance with Clause 40.4.240.4.3. 12.2 Where the Contractor fails to comply with requirements imposed under Clauses 12.1(a) 12.1.1 and/or 12.1(b) 12.1.2 the Department will consider termination of the Contract under Clause 40.4.240.4.3. 12.3 Failure to submit accounts for assessment when requested will automatically deem the assessment under clause Clause 12.1 as 'inadequate' and clauses 12.1(a) Clauses 12.1.1 to 12.1(d) 12.1.4 will apply. 12.4 Where the outcome of a financial assessment illustrates a deterioration from the previous assessment the Department may in its absolute discretion (and without prejudice to its rights under Clause 12.1) request such further assurance or information from the Contractor as it deems necessary. 12.5 The Contractor must notify the Department immediately if it, or any Contractor Related Party, is experiencing or forecasting any financial difficulties and the Department may ask for additional financial information to obtain assurance of continuity of delivery of the Services. 12.6 The Department may require the Contractor to carry out procure an independent business review of the Contractor’s financial health at the Contractor’s cost (or for the Department to may procure such a review and recharge the costs to the Contractor Contractor, at its sole discretion) if the Department has concerns over the financial health of the Contractor. 12.7 The Department can at any time require the Contractor at its own cost to provide a copy of the Contractor’s latest accounts, any historic accounts as requested, and submit further copies of the accounts as soon as they become available and to provide, upon request: 12.7.1 the Contractor’s up to date management accounts, including financial performance against delivery; 12.7.2 financial forecasts of the Contractor’s financial position for the next 12 months; 12.7.3 cash flow forecasts for the next 12 months; 12.7.4 any additional financial information the Department deems necessary. 12.8 Where the further information required from the Contractor under Clauses 12.4, 12.5, 12.6 and 12.7 does not provide adequate assurance to the Department then the Department may in its absolute discretion take one or more of the actions set out in Clauses 12.1(a) 12.1.1 to 12.1(d)12.1.4. 12.9 The Department reserves the right to request that the Contractor provide a guarantee or other form of security on terms that will be notified to the Contractor.

FINANCIAL HEALTH. 12.1 11.1 The Department will undertake an assessment of financial health and control (ESFA financial health assessment - XXX.XX (xxx.xxx.xx)). Should the Department, at its absolute discretion, consider that the outcome of any financial health and/or control assessment is inadequate the Department may, in its absolute discretion take one or more of the following actions: (a) require the Contractor Provider to, and the Contractor Provider will, accept and comply with additional Contract obligations conditions of funding relating to the improvement of financial health and/or control arrangements; (b) require the Contractor Provider to suspend the recruitment of Learners to the Services and/or cap any growth in Learner numbers; (c) give consideration to what changes, if any, are required in its allocations when finalising the amount of funding in any subsequent Contract Agreement between the parties; and/or (d) terminate the Contract Agreement in accordance with Clause 40.4.236.3.2. 12.2 11.2 Where the Contractor Provider fails to comply with requirements imposed under Clauses 12.1(a11.1(a) and/or 12.1(b11.1(b) the Department will consider termination under Clause 40.4.236.3.2. 12.3 11.3 Failure to submit accounts for assessment when requested will automatically deem the assessment under clause 12.1 Clause 11.1 as 'inadequate' and clauses 12.1(aClauses 11.1(a) to 12.1(d11.1(d) will apply. 12.4 11.4 Where the outcome of a financial assessment illustrates a deterioration from the previous assessment the Department may in its absolute discretion request such further assurance or information from the Contractor Provider as it deems necessary. 12.5 11.5 The Contractor Provider must notify the Department immediately if it, or any Contractor Provider Related Party, is experiencing or forecasting any financial difficulties and the Department may ask for additional financial information to obtain assurance of continuity of delivery of the Services. 12.6 11.6 The Department may require the Contractor Provider to carry out an independent business review at the ContractorProvider’s cost (or for the Department to procure and recharge to the Contractor Provider at its sole discretion) if the Department has concerns over the financial health of the ContractorProvider. 12.7 11.7 The Department can at any time require the Contractor Provider at its own cost to provide a copy of the ContractorProvider’s latest accounts, any historic accounts as requested, and submit further copies of the accounts as soon as they become available and to provide, upon request: 12.7.1 : the ContractorProvider’s up to date management accounts, including financial performance against delivery; 12.7.2 ; financial forecasts of the ContractorProvider’s financial position for the next 12 months; 12.7.3 ; cash flow forecasts for the next 12 months; 12.7.4 ; any additional financial information the Department deems necessary. 12.8 11.8 Where the further information required from the Contractor Provider under Clauses 12.411.4, 12.511.5, 12.6 11.6 and 12.7 11.7 does not provide adequate assurance to the Department then the Department may in its absolute discretion take one or more of the actions set out in Clauses 12.1(aClause 11.1(a) to 12.1(d11.1(d). 12.9 11.9 The Department reserves the right to request that the Contractor Provider provide a guarantee or other form of security on terms that will be notified to the ContractorProvider.

FINANCIAL HEALTH. 12.1 11.1 The Department will undertake an assessment of financial health and control (ESFA financial health assessment - XXX.XX (xxx.xxx.xx)). Should the Department, at its absolute discretion, consider that the outcome of any financial health and/or control assessment is inadequate the Department may, in its absolute discretion take one or more of the following actions: (a) require the Contractor Provider to, and the Contractor Provider will, accept and comply with additional Contract obligations conditions of funding relating to the improvement of financial health and/or control arrangements; (b) require the Contractor Provider to suspend the recruitment of Learners to the Services and/or cap any growth in Learner numbers; (c) give consideration to what changes, if any, are required in its allocations when finalising the amount of funding in any subsequent Contract Agreement between the parties; and/or (d) terminate the Contract Agreement in accordance with Clause 40.4.236.3.2. 12.2 11.2 Where the Contractor Provider fails to comply with requirements imposed under Clauses 12.1(a11.1(a) and/or 12.1(b11.1(b) the Department will consider termination under Clause 40.4.236.3.2. 12.3 11.3 Failure to submit accounts for assessment when requested will automatically deem the assessment under clause 12.1 Clause 11.1 as 'inadequate' and clauses 12.1(aClauses 11.1(a) to 12.1(d11.1(d) will apply. 12.4 11.4 Where the outcome of a financial assessment illustrates a deterioration from the previous assessment the Department may in its absolute discretion request such further assurance or information from the Contractor Provider as it deems necessary. 12.5 11.5 The Contractor Provider must notify the Department immediately if it, or any Contractor Provider Related Party, is experiencing or forecasting any financial difficulties and the Department may ask for additional financial information to obtain assurance of continuity of delivery of the Services. 12.6 11.6 The Department may require the Contractor Provider to carry out an independent business review at the Contractor’s cost (or for the Department to procure and recharge to the Contractor at its sole discretion) if the Department has concerns over the financial health of the Contractor.business 12.7 11.7 The Department can at any time require the Contractor Provider at its own cost to provide a copy of a 11.7.1 the Contractor’s latest accounts, any historic accounts as requested, and submit further copies of the accounts as soon as they become available and to provide, upon request: 12.7.1 the Contractor’s up Provider¶Vup to date management accounts, including financial performance against delivery; 12.7.2 financial forecasts of the Contractor’s financial position for the next 12 11.7.2 ILQDQFLDO IRUHFDVWV RI WKH 3URYLGHU¶V months; 12.7.3 11.7.3 cash flow forecasts for the next 12 months; 12.7.4 11.7.4 any additional financial information the Department deems necessary. 12.8 11.8 Where the further information required from the Contractor Provider under Clauses 12.411.4, 12.511.5, 12.6 11.6 and 12.7 11.7 does not provide adequate assurance to the Department then the Department may in its absolute discretion take one or more of the actions set out in Clauses 12.1(aClause 11.1(a) to 12.1(d11.1(d). 12.9 11.9 The Department reserves the right to request that the Contractor Provider provide a guarantee or other form of security on terms that will be notified to the ContractorProvider.

FINANCIAL HEALTH. 12.1 11.1 The Department will undertake an assessment of financial health and control (ESFA financial health assessment - XXX.XX (xxx.xxx.xx)). Should the Department, at its absolute discretion, consider that the outcome of any financial health and/or control assessment is inadequate the Department may, in its absolute discretion take one or more of the following actions: (a) require the Contractor Provider to, and the Contractor Provider will, accept and comply with additional Contract obligations conditions of funding relating to the improvement of financial health and/or control arrangements; (b) require the Contractor Provider to suspend the recruitment of Learners to the Services and/or cap any growth in Learner numbers; (c) give consideration to what changes, if any, are required in its allocations when finalising the amount of funding in any subsequent Contract Agreement between the parties; and/or (d) terminate the Contract Agreement in accordance with Clause 40.4.236.3.2. 12.2 11.2 Where the Contractor Provider fails to comply with requirements imposed under Clauses 12.1(a11.1(a) and/or 12.1(b11.1(b) the Department will consider termination under Clause 40.4.236.3.2. 12.3 11.3 Failure to submit accounts for assessment when requested will automatically deem the assessment under clause 12.1 Clause 11.1 as 'inadequate' and clauses 12.1(aClauses 11.1.1 (a) to 12.1(d11.1.1(d) will apply. 12.4 11.4 Where the outcome of a financial assessment illustrates a deterioration from the previous assessment the Department may in its absolute discretion request such further assurance or information from the Contractor Provider as it deems necessary. 12.5 11.5 The Contractor Provider must notify the Department immediately if it, or any Contractor Provider Related Party, is experiencing or forecasting any financial difficulties and the Department may ask for additional financial information to obtain assurance of continuity of delivery of the Services. 12.6 11.6 The Department may require the Contractor Provider to carry out an independent business review at the ContractorProvider’s cost (or for the Department to procure and recharge to the Contractor Provider at its sole discretion) if the Department has concerns over the financial health of the ContractorProvider. 12.7 11.7 The Department can at any time require the Contractor Provider at its own cost to provide a copy of the ContractorProvider’s latest accounts, any historic accounts as requested, and submit further copies of the accounts as soon as they become available and to provide, upon request: 12.7.1 11.7.1 the ContractorProvider’s up to date management accounts, including financial performance against delivery; 12.7.2 11.7.2 financial forecasts of the ContractorProvider’s financial position for the next 12 months; 12.7.3 11.7.3 cash flow forecasts for the next 12 months; 12.7.4 11.7.4 any additional financial information the Department deems necessary. 12.8 11.8 Where the further information required from the Contractor Provider under Clauses 12.411.4, 12.511.5, 12.6 11.6 and 12.7 11.7 does not provide adequate assurance to the Department then the Department may in its absolute discretion take one or more of the actions set out in Clauses 12.1(aClause 11.1.1(a) to 12.1(d11.1.1(d). 12.9 11.9 The Department reserves the right to request that the Contractor Provider provide a guarantee or other form of security on terms that will be notified to the ContractorProvider.

FINANCIAL HEALTH. 12.1 The Department will undertake an assessment of the Contractor’s financial health and control (ESFA financial health assessment - XXX.XX (xxx.xxx.xx)). Where the Contractor is a college, the financial assessment will be undertaken in accordance with the formal intervention – financial provisions in the Contractor’s grant funding agreement with the Department. 12.2 Should the Department, at its absolute discretion, consider that the outcome of any financial health and/or control assessment is inadequate the Department may, in its absolute discretion take one or more of the following actions: (a) 12.2.1 require the Contractor to, and the Contractor will, accept and comply with additional Contract obligations relating to the improvement of financial health and/or control arrangements; (b) 12.2.2 require the Contractor to suspend the recruitment of Learners to the Services and/or cap any growth in Learner numbers; (c) 12.2.3 give consideration as to what changes, if any, are required in its allocations when finalising the amount of funding in any subsequent Contract contract between the partiesParties; and/or (d) 12.2.4 terminate the Contract in accordance with Clause 40.4.242.4.2 (Termination). 12.2 12.3 Where the Contractor fails to comply with requirements imposed under Clauses 12.1(a) 12.2.1 and/or 12.1(b) 12.2.2 the Department will consider termination of the Contract under Clause 40.4.2Xxxxxx 42.4.2 (Termination). 12.3 12.4 Failure to submit accounts for assessment when requested will automatically deem the assessment under clause 12.1 12.2 as 'inadequate' and clauses 12.1(a) Clauses 12.2.1 to 12.1(d) 12.2.4 will apply. 12.4 12.5 Where the outcome of a financial assessment illustrates a deterioration from the previous assessment the Department may in its absolute discretion (and without prejudice to its rights under Clause 12.2) request such further assurance or information from the Contractor as it deems necessary. 12.5 12.6 The Contractor must notify the Department immediately if it, or any Contractor Related Party, is experiencing or forecasting any financial difficulties and the Department may ask for additional financial information to obtain assurance of continuity of delivery of the Services. 12.6 12.7 The Department may require the Contractor to carry out procure an independent business review of the Contractor’s financial health at the Contractor’s cost (or for the Department to may procure such a review and recharge the costs to the Contractor Contractor, at its sole discretion) if the Department has concerns over the financial health of the Contractor. 12.7 12.8 The Department can at any time require the Contractor at its own cost to provide a copy of the Contractor’s latest accounts, any historic accounts as requested, and submit further copies of the accounts as soon as they become available and to provide, upon request: 12.7.1 12.8.1 the Contractor’s up to date management accounts, including financial performance against delivery; 12.7.2 12.8.2 financial forecasts of the Contractor’s financial position for the next 12 twelve (12) months; 12.7.3 12.8.3 cash flow forecasts for the next 12 twelve (12) months; 12.7.4 12.8.4 any additional financial information the Department deems necessary. 12.8 12.9 Where the further information required from the Contractor under Clauses 12.4, 12.5, 12.6 12.6, 12.7, and 12.7 12.8 does not provide adequate assurance to the Department then the Department may in its absolute discretion take one or more of the actions set out in Clauses 12.1(a) 12.2.1 to 12.1(d)12.2.4. 12.9 12.10 The Department reserves the right to request that the Contractor provide a guarantee or other form of security on terms that will be notified to the Contractor.