Common use of FINANCIAL HEALTH Clause in Contracts

FINANCIAL HEALTH. 11.1 The Department will undertake an assessment of financial health and control (xxxxx://xxx.xxx.xx/government/publications/esfa-financial-health- assessment). 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 Provider to, and the Provider will, accept and comply with additional conditions of funding relating to the improvement of financial health and/or control arrangements; (b) require the 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 Agreement between the parties; and/or (d) terminate the Agreement in accordance with Clause 36.3.2. 11.2 Where the Provider fails to comply with requirements imposed under Clauses 11.1(a) and/or 11.1(b) the Department will consider termination under Clause 36.3.2. 11.3 Failure to submit accounts for assessment when requested will automatically deem the assessment under Clause 11.1 as 'inadequate' and Clauses 11.1(a) to 11.1(d) will apply. 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 Provider as it deems necessary. 11.5 The Provider must notify the Department immediately if it, or any 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. 11.6 The Department may require the Provider to carry out an independent business review at the Provider’s cost (or for the Department to procure and recharge to the Provider at its sole discretion) if the Department has concerns over the financial health of the Provider. 11.7 The Department can at any time require the Provider at its own cost to provide a copy of the Provider’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: 11.8 Where the further information required from the Provider under Clauses 11.4, 11.5, 11.6 and 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 Clause 11.1(a) to 11.1(d). 11.9 The Department reserves the right to request that the Provider provide a guarantee or other form of security on terms that will be notified to the Provider.

FINANCIAL HEALTH. 11.1 The Department will undertake an assessment of financial health and control (xxxxx://xxx.xxx.xx/government/publications/esfa-financial-health- assessment). 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 Provider to, and the Provider will, accept and comply with additional conditions of funding relating to the improvement of financial health and/or control arrangements; (b) require the 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 Agreement between the parties; and/or (d) terminate the Agreement in accordance with Clause 36.3.2. 11.2 Where the Provider fails to comply with requirements imposed under Clauses 11.1(a) and/or 11.1(b) the Department will consider termination under Clause 36.3.2. 11.3 Failure to submit accounts for assessment when requested will automatically deem the assessment under Clause clause 11.1 as 'inadequate' and Clauses clauses 11.1(a) to 11.1(d) will apply. 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 Provider as it deems necessary. 11.5 The Provider must notify the Department immediately if it, or any 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. 11.6 The Department may require the Provider to carry out an independent business review at the Provider’s cost (or for the Department to procure and recharge to the Provider at its sole discretion) if the Department has concerns over the financial health of the Provider. 11.7 The Department can at any time require the Provider at its own cost to provide a copy of the Provider’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: 11.7.1 the Provider’s up to date management accounts, including financial performance against delivery; 11.7.2 financial forecasts of the Provider’s financial position for the next 12 months; 11.7.3 cash flow forecasts for the next 12 months; 11.7.4 any additional financial information the Department deems necessary. 11.8 Where the further information required from the Provider under Clauses 11.4, 11.5, 11.6 and 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 Clause Clauses 11.1(a) to 11.1(d). 11.9 The Department reserves the right to request that the Provider provide a guarantee or other form of security on terms that will be notified to the Provider.

FINANCIAL HEALTH. 11.1 The Department will undertake an assessment of financial health and control (xxxxx://xxx.xxx.xx/government/publications/esfa-financial-health- assessment). 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 Provider NMSS to, and the Provider NMSS will, accept and comply with additional conditions of funding relating to the improvement of financial health and/or control arrangements; (b) require the Provider NMSS to suspend the recruitment enrolment of Learners Pupils to the Services and/or cap any growth in Learner Pupil numbers; (c) give consideration to what changes, if any, are required in its allocations when finalising the amount of funding in any subsequent Agreement between the parties; and/or (d) terminate the Agreement in accordance with Clause 36.3.2. 11.2 Where the Provider NMSS fails to comply with requirements imposed under Clauses 11.1(a) and/or 11.1(b) the Department will consider termination under Clause 36.3.2. 11.3 Failure to submit accounts for assessment when requested will automatically deem the assessment under Clause clause 11.1 as 'inadequate' and Clauses clauses 11.1(a) to 11.1(d) will apply. 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 Provider NMSS as it deems necessary. 11.5 The Provider NMSS must notify the Department immediately if it, or any Provider NMSS 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. 11.6 The Department may require the Provider NMSS to carry out an independent business review at the ProviderNMSS’s cost (or for the Department to procure and recharge to the Provider NMSS at its sole discretion) if the Department has concerns over the financial health of the ProviderNMSS. 11.7 The Department can at any time require the Provider NMSS at its own cost to provide a copy of the ProviderNMSS’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: 11.7.1 the NMSS’s up to date management accounts, including financial performance against delivery; 11.7.2 financial forecasts of the NMSS’s financial position for the next 12 months; 11.7.3 cash flow forecasts for the next 12 months; 11.7.4 any additional financial information the Department deems necessary. 11.8 Where the further information required from the Provider NMSS under Clauses 11.4, 11.5, 11.6 and 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 Clause Clauses 11.1(a) to 11.1(d). 11.9 The Department reserves the right to request that the Provider NMSS provide a guarantee or other form of security on terms that will be notified to the ProviderNMSS.

FINANCIAL HEALTH. 11.1 The Department will undertake an assessment of financial health and control (xxxxx://xxx.xxx.xx/government/publications/esfa-financial-health- assessment). 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 Provider to, and the Provider will, accept and comply with additional conditions of funding Agreement obligations relating to the improvement of financial health and/or control arrangements; (b) require the 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 Agreement between the parties; and/or and/or (d) terminate the Agreement in accordance with Clause 36.3.2. 11.2 Where the Provider fails to comply with requirements imposed under Clauses 11.1(a) and/or 11.1(b) the Department will consider termination under Clause 36.3.2. 11.3 Failure to submit accounts for assessment when requested will automatically deem the assessment under Clause clause 11.1 as 'inadequate' and Clauses clauses 11.1(a) to 11.1(d) will apply. 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 Provider as it deems necessary. 11.5 The Provider must notify the Department immediately if it, or any 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. 11.6 The Department may require the Provider to carry out an independent business review at the Provider’s cost (or for the Department to procure and recharge to the Provider at its sole discretion) if the Department has concerns over the financial health of the Provider. 11.7 The Department can at any time require the Provider at its own cost to provide a copy of the Provider’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: 11.7.1 the Provider up to date management accounts, including financial performance against delivery; 11.7.2 financial forecasts of the Provider’s financial position for the next 12 months; 11.7.3 cash flow forecasts for the next 12 months; 11.7.4 any additional financial information the Department deems necessary. 11.8 Where the further information required from the Provider under Clauses 11.4, 11.5, 11.6 and 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 Clause 11.1(a) to 11.1(d). 11.9 The Department reserves the right to request that the Provider provide a guarantee or other form of security on terms that will be notified to the Provider.

FINANCIAL HEALTH. 11.1 12.1 The Department will undertake an assessment of the Contractor’s financial health and control (xxxxx://xxx.xxx.xx/government/publications/esfa-financial-health- assessmentESFA 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 Provider Contractor to, and the Provider Contractor will, accept and comply with additional conditions of funding Contract obligations relating to the improvement of financial health and/or control arrangements; (b) 12.2.2 require the Provider Contractor to suspend the recruitment of Learners to the Services and/or cap any growth in Learner numbers; (c) 12.2.3 give consideration to what changes, if any, are required in its allocations when finalising the amount of funding in any subsequent Agreement contract between the partiesParties; and/or (d) 12.2.4 terminate the Agreement Contract in accordance with Clause 36.3.240.4.2 (Termination). 11.2 12.3 Where the Provider Contractor fails to comply with requirements imposed under Clauses 11.1(a) 12.2.1 and/or 11.1(b) 12.2.2 the Department will consider termination of the Contract under Clause 36.3.240.4.2 (Termination). 11.3 12.4 Failure to submit accounts for assessment when requested will automatically deem the assessment under Clause 11.1 12.2 as 'inadequate' and Clauses 11.1(a) 12.2.1 to 11.1(d) 12.2.4 will apply. 11.4 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 Provider Contractor as it deems necessary. 11.5 12.6 The Provider Contractor must notify the Department immediately if it, or any Provider 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. 11.6 12.7 The Department may require the Provider Contractor to carry out an independent business review at the ProviderContractor’s cost (or for the Department to procure and recharge to the Provider Contractor at its sole discretion) if the Department has concerns over the financial health of the ProviderContractor. 11.7 12.8 The Department can at any time require the Provider Contractor at its own cost to provide a copy of the ProviderContractor’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: 11.8 12.8.1 the Contractor’s up to date management accounts, including financial performance against delivery; 12.8.2 financial forecasts of the Contractor’s financial position for the next twelve (12) months; 12.8.3 cash flow forecasts for the next twelve (12) months; 12.8.4 any additional financial information the Department deems necessary. 12.9 Where the further information required from the Provider Contractor under Clauses 11.412.5, 11.512.6, 11.6 12.7, and 11.7 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 Clause 11.1(a) Clauses 12.2.1 to 11.1(d)12.2.4. 11.9 12.10 The Department reserves the right to request that the Provider Contractor provide a guarantee or other form of security on terms that will be notified to the ProviderContractor.

FINANCIAL HEALTH. 11.1 The Department will undertake an assessment of financial health and control (xxxxx://xxx.xxx.xx/government/publications/esfa-financial-health- assessment). 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 Provider to, and the Provider will, accept and comply with additional conditions of funding relating to the improvement of financial health and/or control arrangements; (b) require the Provider to suspend the recruitment of Learners Pupils to the Services and/or cap any growth in Learner Pupil numbers; (c) give consideration to what changes, if any, are required in its allocations when finalising the amount of funding in any subsequent Agreement between the parties; and/or (d) terminate the Agreement in accordance with Clause 36.3.2. 11.2 Where the Provider fails to comply with requirements imposed under Clauses 11.1(a) and/or 11.1(b) the Department will consider termination under Clause 36.3.2. 11.3 Failure to submit accounts for assessment when requested will automatically deem the assessment under Clause clause 11.1 as 'inadequate' and Clauses clauses 11.1(a) to 11.1(d) will apply. 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 Provider as it deems necessary. 11.5 The Provider must notify the Department immediately if it, or any 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. 11.6 The Department may require the Provider to carry out an independent business review at the Provider’s cost (or for the Department to procure and recharge to the Provider at its sole discretion) if the Department has concerns over the financial health of the Provider. 11.7 The Department can at any time require the Provider at its own cost to provide a copy of the Provider’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: 11.7.1 the Provider’s up to date management accounts, including financial performance against delivery; 11.7.2 financial forecasts of the Provider’s financial position for the next 12 months; 11.7.3 cash flow forecasts for the next 12 months; 11.7.4 any additional financial information the Department deems necessary. 11.8 Where the further information required from the Provider under Clauses 11.4, 11.5, 11.6 and 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 Clause Clauses 11.1(a) to 11.1(d). 11.9 The Department reserves the right to request that the Provider provide a guarantee or other form of security on terms that will be notified to the Provider.

FINANCIAL HEALTH. 11.1 12.1 The Department will undertake an assessment of financial health and control (xxxxx://xxx.xxx.xx/government/publications/esfa-financial-health- xxxxx://xxx.xxx.xx/government/publications/esfa-financial- health-assessment). 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 Provider Contractor to, and the Provider Contractor will, accept and comply with additional conditions of funding Contract obligations relating to the improvement of financial health and/or control arrangements; (b) require the Provider 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 Agreement Contract between the parties; and/or (d) terminate the Agreement Contract in accordance with Clause 36.3.240.4.2. 11.2 12.2 Where the Provider Contractor fails to comply with requirements imposed under Clauses 11.1(a12.1(a) and/or 11.1(b12.1(b) the Department will consider termination under Clause 36.3.240.4.2. 11.3 12.3 Failure to submit accounts for assessment when requested will automatically deem the assessment under Clause 11.1 clause 12.1 as 'inadequate' and Clauses 11.1(aclauses 12.1(a) to 11.1(d12.1(d) will apply. 11.4 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 Provider Contractor as it deems necessary. 11.5 12.5 The Provider Contractor must notify the Department immediately if it, or any Provider 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.financial 11.6 12.6 The Department may require the Provider Contractor to carry out an independent business review at the ProviderContractor’s cost (or for the Department to procure and recharge to the Provider Contractor at its sole discretion) if the Department has concerns over the financial health of the ProviderContractor. 11.7 12.7 The Department can at any time require the Provider Contractor at its own cost to provide a copy of the ProviderContractor’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: 11.8 12.7.1 the Contractor’ 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 Provider Contractor under Clauses 11.412.4, 11.512.5, 11.6 12.6 and 11.7 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 Clause 11.1(aClauses 12.1(a) to 11.1(d12.1(d). 11.9 12.9 The Department reserves the right to request that the Provider Contractor provide a guarantee or other form of security on terms that will be notified to the ProviderContractor.

FINANCIAL HEALTH. 11.1 12.1 The Department will undertake an assessment of financial health and control (xxxxx://xxx.xxx.xx/government/publications/esfa-financial-health- xxxxx://xxx.xxx.xx/government/publications/esfa-financial- health-assessment). 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 Provider Contractor to, and the Provider Contractor will, accept and comply with additional conditions of funding Contract obligations relating to the improvement of financial health and/or control arrangements; (b) require the Provider 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 Agreement Contract between the parties; and/or (d) terminate the Agreement Contract in accordance with Clause 36.3.240.4.2. 11.2 12.2 Where the Provider Contractor fails to comply with requirements imposed under Clauses 11.1(a12.1(a) and/or 11.1(b12.1(b) the Department will consider termination under Clause 36.3.240.4.2. 11.3 12.3 Failure to submit accounts for assessment when requested will automatically deem the assessment under Clause 11.1 clause 12.1 as 'inadequate' and Clauses 11.1(aclauses 12.1(a) to 11.1(d12.1(d) will apply. 11.4 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 Provider Contractor as it deems necessary. 11.5 12.5 The Provider Contractor must notify the Department immediately if it, or any Provider 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. 11.6 12.6 The Department may require the Provider Contractor to carry out an independent business review at the ProviderContractor’s cost (or for the Department to procure and recharge to the Provider Contractor at its sole discretion) if the Department has concerns over the financial health of the ProviderContractor. 11.7 12.7 The Department can at any time require the Provider Contractor at its own cost to provide a copy of the ProviderContractor’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: 11.8 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 Provider Contractor under Clauses 11.412.4, 11.512.5, 11.6 12.6 and 11.7 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 Clause 11.1(aClauses 12.1(a) to 11.1(d12.1(d). 11.9 12.9 The Department reserves the right to request that the Provider Contractor provide a guarantee or other form of security on terms that will be notified to the ProviderContractor.

FINANCIAL HEALTH. 11.1 The Department will undertake an assessment of financial health and control (xxxxx://xxx.xxx.xx/government/publications/esfa-financial-health- assessment). 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 Provider to, and the Provider will, accept and comply with additional conditions of funding Agreement obligations relating to the improvement of financial health and/or control arrangements; (b) require the 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 Agreement between the parties; and/or (d) terminate the Agreement in accordance with Clause 36.3.2. 11.2 Where the Provider fails to comply with requirements imposed under Clauses 11.1(a) and/or 11.1(b) the Department will consider termination under Clause 36.3.2. 11.3 Failure to submit accounts for assessment when requested will automatically deem the assessment under Clause clause 11.1 as 'inadequate' and Clauses clauses 11.1(a) to 11.1(d) will apply. 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 Provider as it deems necessary. 11.5 The Provider must notify the Department immediately if it, or any 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. 11.6 The Department may require the Provider to carry out an independent business review at the Provider’s cost (or for the Department to procure and recharge to the Provider at its sole discretion) if the Department has concerns over the financial health of the Provider. 11.7 The Department can at any time require the Provider at its own cost to provide a copy of the Provider’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: 11.7.1 the Provider up to date management accounts, including financial performance against delivery; 11.7.2 financial forecasts of the Provider’s financial position for the next 12 months; 11.7.3 cash flow forecasts for the next 12 months; 11.7.4 any additional financial information the Department deems necessary. 11.8 Where the further information required from the Provider under Clauses 11.4, 11.5, 11.6 and 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 Clause Clauses 11.1(a) to 11.1(d). 11.9 The Department reserves the right to request that the Provider provide a guarantee or other form of security on terms that will be notified to the Provider.