Common use of Reducing Funding Clause in Contracts

Reducing Funding. (a) Where We: (i) are required to cease the Funding to You because of changes to the State budget or any guidelines or policies of the State or Commonwealth government; or (ii) determine that the needs of the Service Users and the Target Group no longer justifies the Funding or that other persons are in greater need than the Service Users and the Target Group, even though You are not in default, We may reduce the Funding at any time, subject to the Governing Act, by giving You reasonable written notice. (b) Where the Funding is reduced under this clause 16.1, then We must review the scope of the Services with You. (c) If We reduce the Funding under this clause 16.1, We are only liable to You for: (i) instalments of the Funding that were due to You up to the date of reduction; and (ii) reasonable costs You incur as a direct result of the reduction, subject to Our reasonable approval. (d) If We reduce the Funding under this clause 16.1, then You must: (i) immediately stop carrying out Your obligations in relation to any Services, that may have been removed by the reduction; (ii) immediately do everything You can to mitigate and lessen all losses, costs and expenses that You may suffer in relation to the reduction; (iii) repay to Us any part of the Funding that We require to be repaid as a result of the reduction, which will be a debt due and owing to Us; (iv) provide written evidence to satisfy Us of the amounts claimed as reasonable costs; and (v) comply with any reasonable request made by Us in relation to the reduction of the Funding. (e) We are not liable to pay You compensation for any loss of profit or benefits that You would have received had the reduction not occurred. (f) This clause does not limit any other rights or remedies that may be available to Us.