27Funding agreements—failure to comply

#### 27 Funding agreements—failure to comply Failure to comply with funding agreement (1) A funding agreement must contain a provision to the effect that any or all of the consequences set out in this section may apply if the relevant authority does not comply with a requirement of the agreement: (a) within the period required by or under the agreement; or (b) within a further period allowed by the Minister (whether the Minister allows this before or after the end of the period required by or under the agreement). Consequences of failure to comply (2) If the Minister so determines, the relevant authority must pay to the Commonwealth a specified amount (not more than the sum of the amounts mentioned in subsection 16(1) (purpose of grants)). (3) The Minister may determine that any other amount or amounts of financial assistance to the State under this Act for the school or body is to be reduced by an amount or amounts totalling not more than: (a) if the Minister makes a determination under subsection (2)—the amount required to be paid under the determination; or (b) in any other case—the sum of the amounts mentioned in subsection 16(1). > Note: A determination reducing the amount of a payment is made under section 34. (4) The Minister may delay the making of any further payment (or a part of a further payment) to the State under this Act for the school or body until the relevant authority complies with the requirement set out in the agreement.