AGREEMENT

between the

COMMONWEALTH OF AUSTRALIA

as represented by the

Department of Health and Ageing

and

DIABETES AUSTRALIA

for

THE NATIONAL DIABETES SERVICES SCHEME

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Table of Contents

1. Interpretation

2. Funding for the Scheme

3. Other Contributions

4. Taxes, Duties and Government Charges

5. Conduct of the Scheme

6. Administration of the Scheme

7. Delivery of the Scheme

8. Management of Funds and Bank Account

9. Records and Reports

10. Disclosure

11. Liaison

12. Access to Premises and Materials

13. Scheme Material and Intellectual Property

14. Acknowledgment of Commonwealth Funds and Scheme Brand Usage

15. Assets

16. Negation of Employment, Partnership and Agency

17. Suspension and Termination

17A. Force Majeure Event

18. Cessation of Dealings with Diabetes Australia

19. Repayment of Funds

20. Indemnity

21. Insurance

22. Confidentiality

23. Protection of Personal Information

24. Conflict of Interest

25. Compliance with Law and Policies

26. Dispute Resolution

27. Notices

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Schedules

Schedule 1 Objectives

Schedule 2 Funds and Payment

Schedule 3 Product Supply and Delivery

Schedule 4 Scheme Outlets

Schedule 5 Registrant Services

Schedule 6 Strategic Development Grant

Schedule 7 National Projects Grant

Schedule 8 Information Technology

Schedule 9 Review of Scheme Efficiencies

Schedule 10 Administrative Matters

Schedule 11 Scheme Reporting

Annexure 1 - Scheme Style Guide

Annexure 2 - Product Schedule

Annexure 3 – Product Listings Procedures Manual

Annexure 4 - NDSS Strategic Development Grant Program Manual

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THIS Agreement is made

between the

COMMONWEALTH OF AUSTRALIA (‘the Commonwealth) as represented by the Department of Health and Ageing (the ‘Department’) ABN 83 605 426 759;

and

DIABETES AUSTRALIA, ABN 47 008 528 461, having its registered office at 5th floor, 39 London Circuit, Canberra ACT 2600 ('Diabetes Australia’)

WHEREAS:

A. Through the National Diabetes Services Scheme, the Commonwealth and Diabetes Australia aim to enhance the capacity of people with diabetes to understand and manage their life with diabetes, and in this way to assist them to live a life in which the impact of diabetes is minimised and in which their overall health outcome is improved.

B. This will be achieved through the National Diabetes Services Scheme by ensuring that persons with diabetes have timely, reliable and affordable access to the supplies and services required for the effective self management of their condition.

C. The Commonwealth wishes to fund Diabetes Australia to administer the National Diabetes Services Scheme on behalf of the Commonwealth on the terms and conditions of this Agreement.

D. Section 9C of the National Health Act 1953 allows the Minister for Health and Ageing to enter into an arrangement with a body corporate established for a public purpose under a law of a State or Territory for and in relation to the supply of medical or surgical aids, equipment or appliances prescribed for the purposes of paragraph 9A(1)(a) to persons who require them.

E. An arrangement made in accordance with section 9C of the National Health Act 1953 can deal with the transfer of ownership to the body corporate of medical or surgical aids, equipment or appliances owned by the Commonwealth.

F. This Agreement constitutes an arrangement under section 9C of the National Health Act 1953.

G. Diabetes Australia recognises the need for proper accountability for the administration of the National Diabetes Services Scheme and for the use and expenditure of the Funds provided by the Commonwealth for the National Diabetes Services Scheme, and agrees to accept responsibility for the administration of the National Diabetes Services Scheme and the Funds on the terms and conditions of this Agreement.

H. An intention of the Department is to transfer the ownership of Products to Diabetes Australia in a way that does not disadvantage Diabetes Australia. The way to achieve this will be the outcome of a review to be completed within 12 months of the execution of this Agreement.

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THE PARTIES AGREE as follows:

1. INTERPRETATION

In this Agreement, unless the contrary intention appears:

Agent means any organisation engaged by Diabetes Australia to provide Services under the Scheme;

Agreement means this document and includes any schedules and annexures;

Approved Auditor means a person who is:

(a) registered as a company auditor under the Corporations Act 2001 or a member of the Institute of Chartered Accountants in Australia, or of CPA Australia or the National Institute of Accountants; and

(b) not a principal, member, shareholder, office holder or employee of Diabetes Australia;

Asset means an item of tangible property purchased or leased either wholly or in part with the use of the Funds, with a value of $5,000.00 or more, inclusive of GST but does not include Products or Scheme Material;

Auditor-General means the office established under the Auditor-General Act 1997 and includes any other person that may, from time to time, perform the functions of that office;

Australian Accounting Standards means the standards of that name maintained by the Australian Accounting Standards Board created by section 226 of the Australian Securities and Investments Commission Act 2001;

Australian Auditing Standards means the standards set by the Auditor-General under section 24 of the Auditor-General Act 1997 and generally accepted audit practices to the extent they are not inconsistent with such standards;

Business Day means, in relation to the doing of any action in a place, any day other than a Saturday, Sunday, or public holiday in that place;

Committed in relation to Funds means Funds that can be identified in legally binding contractual arrangements between Diabetes Australia and other parties engaged to provide goods or services in relation to the Services, and Funds that have been set aside by Diabetes Australia to make legitimate provision for future statutory and other liabilities;

Commonwealth Contact Officer means the person or position holder specified in Schedule 10, or any other person notified to Diabetes Australia by the Commonwealth for this purpose;

Commonwealth Material means any Material: (a) provided by the Commonwealth to Diabetes Australia for the purposes of

this Agreement; or

(b) copied at any time from the Material referred to in paragraph (a);

Confidential Information means information that:

(a) is by its nature confidential;

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(b) is designated by the Commonwealth as being confidential; or

(c) Diabetes Australia knows or ought to know is confidential;

but does not include information which:

(d) is or becomes public knowledge, other than by breach of this Agreement;

(e) is in the possession of Diabetes Australia without restriction in relation to disclosure before the date of receipt from the Commonwealth; or

(f) has been independently developed or acquired by the receiving Party.

Consumer Price Index in relation to a quarter means the All Groups Consumer Price Index number that is the weighted average of eight capital cities published by the Australian Statistician in respect of that quarter;

Conflict includes any conflict of interest, any risk of a conflict of interest and any apparent conflict of interest arising through Diabetes Australia (or its officers, employees, servants, agents) engaging in any activity or obtaining any interest that is likely to conflict with or restrict Diabetes Australia in performing the Scheme fairly and independently;

Department includes any department or agency of the Commonwealth which is from time to time responsible for the administration of this Agreement;

Depreciated means the amount representing the same reduced value of an Asset as calculated for income tax purposes under, and in accordance with, the Income Tax Assessment Act 1997;

Diabetes means Type 1 (formerly known as Insulin Dependent Diabetes Mellitus or IDDM), Type 2 (formerly known as Non-Insulin Dependent Diabetes Mellitus or NIDDM), Gestational Diabetes, Other Diabetes caused by other identifiable etiologies, including :

(a) genetic defects of beta cell function (eg MODY 1,2,3);

(b) genetic defects in insulin action;

(c) diseases of the exocrine pancreas (eg, cancer of the pancreas, cystic fibrosis, pancreatitis);

(d) endocrinopathies (eg, Cushing’s);

(e) drug or chemical induced (eg, steroids);

(f) infection (eg, rubella, Coxsackie, CMV);

(g) uncommon forms of immune-related diabetes; or

(h) other genetic syndromes;

(Classification of diabetes World Health Organisation/American Diabetes Association June 1997);

Diabetes Australia Contact Officer means the person or position holder specified in Schedule 10, or any other person notified to the Department by Diabetes Australia for this purpose;

Diabetes Centre means a discrete unit comprising an interdisciplinary team of health professionals who provide information and clinical services to people with diabetes. The staff of a Diabetes Centre must include a medical practitioner with expertise in diabetes care;

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Existing Material means all Material in existence prior to the commencement of this Agreement:

(a) incorporated in;

(b) supplied with, or as part of; or

(c) required to be supplied with, or as part of:

the Scheme Material and includes any Material identified as Existing Material in Schedule 10;

Final Report means Material provided to the Commonwealth in accordance with Schedule 11;

Force Majeure Event means an event relating to a Party which:

(a) was not contemplated by that Party and could not have reasonably been foreseen by that Party at the commencement of this Agreement;

(b) is completely outside the control of that Party, its employees, officers and Agents;

(c) is not an event or occurrence contemplated by, or referred to in, this Agreement;

(d) is not caused by the other Party its employees, officers and Agents to this Agreement; and

(e) is not a result of industrial action or strike;

Funds means the amount payable by the Commonwealth or part thereof in accordance with Schedule 2;

Health Professional Arm of Diabetes Australia means the committee formed by members of the Australian Diabetes Society and the Australian Diabetes Educators Association;

Intellectual Property includes all copyright (including rights in relation to phonograms and broadcasts), all rights in relation to inventions (including patent rights), plant varieties, registered and unregistered trademarks (including service marks), registered designs and circuit layouts, and all other rights resulting from intellectual activity in the industrial, scientific, literary or artistic fields;

Interest means interest calculated at the 90 day bank-accepted bill rate (available from the Reserve Bank of Australia) less 10 basis points;

Material includes documents, software (including source code and object code), goods and information and data stored by any means including all copies and extracts of the same;

Other Contributions means Registrant Contributions and other financial or in-kind resources (with in-kind resources valued at market rates) from third parties or Diabetes Australia for the Scheme, other than the Funds;

Outlet means a place where Registrants can purchase Product or obtain information in relation to the Scheme;

PhARIA means the Pharmacy Access/Remoteness Index of Australia that provides a pharmacy specific measurement of remoteness for 3855 localities around Australia.

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The index results, ranging from 0 (high accessibility) to 12 (high remoteness), have been divided into a 6 category classification system as follows:

Category 1 0 - 1 Highly Accessible

Category 2 >1 - 2 Accessible (Group A)

Category 3 >2 - 4 Accessible (Group B)

Category 4 >4 - 6 Moderately Accessible

Category 5 >6 - 9 Remote

Category 6 >9 - 12 Very Remote

Party means a party to this Agreement;

Personal Information means information or an opinion (including information or an opinion forming part of a database), whether true or not, and whether recorded in a material form or not, about a natural person whose identity is apparent, or can reasonably be ascertained, from the information or opinion;

Privacy Commissioner means the office established under the Privacy Act 1988 and includes any other person that may, from time to time, perform the functions of that office;

Product means a product to be supplied under the Scheme, as identified in Schedule 3;

Registrant means a person registered under the Scheme;

Registrant Contributions means Registrant Contributions as referred to in Schedules 2 and 3;

Report means a report in accordance with Schedule 11;

Scheme means the National Diabetes Services Scheme described in Schedule 1;

Scheme Material means all Material including Reports:

(a) brought into existence for the purpose of performing the Scheme;

(b) incorporated in, supplied or required to be supplied along with the Material referred to in paragraph (a); or

(c) copied or derived from the Material referred to in paragraphs (a) or (b);

and includes the Scheme Material specified in Schedule 10;

Scheme Period means the period specified in Schedule 10;

Services means the services to be performed by Diabetes Australia under the Scheme as specified in Schedule 1; and

Sub-agent means any organisation engaged by an Agent to provide Services under the Scheme; Sub-agent Connectivity means the Diabetes Australia project known as Sub-agent Connectivity, which has as its purpose the implementation of a direct connectivity, via a web front end, to the Scheme information system in order to allow accessing and processing of Registrants, sales and stock information via electronic means;

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Unit of Product means the products in the quantities itemised in Annexure 2 in the column headed ‘Pack Size’ for insulin syringes/needles/pump attachments and in the column headed ‘PBS Max Qty’ for diagnostic agents, which is the maximum quantity defined in the Schedule of Pharmaceutical Benefits.

1.2 In this Agreement, unless the contrary intention appears:

(a) words in the singular include the plural and words in the plural include the singular;

(b) words importing a gender include any other gender;

(c) words importing persons include a partnership and a body whether corporate or otherwise and vice versa;

(d) where any word or phrase is given a defined meaning, any other form of that word or phrase has a corresponding meaning;

(e) an uncertainty or ambiguity in the meaning of a provision of this Agreement will not be interpreted against a Party just because that Party prepared the provision;

(f) reference to any statute or other legislation (whether primary or subordinate) is to a statute or other legislation of the Commonwealth and, if it has been or is amended, is a reference to that statute or other legislation as amended;

(g) all references to clauses are to clauses in this Agreement, all references to “Items” are to Items in the Schedule to this Agreement and any references to “Schedule” are to the Schedules to this Agreement.

1.3 If there is any conflict or inconsistency between:

(a) the terms and conditions contained in the clauses of this Agreement and any part of the Schedules, then the terms and conditions of the clauses will prevail to the extent of the conflict or inconsistency;

(b) the terms and conditions contained in the clauses of this Agreement and any part of the annexures (if any), then the terms and conditions of the clauses will prevail to the extent of the conflict or inconsistency; and

(c) any part of the Schedule and any part of the Annexures, then the Schedule will prevail to the extent of the conflict or inconsistency.

1.4 The laws of the Australian Capital Territory apply to this Agreement. The Parties agree to submit to the non-exclusive jurisdiction of the courts of the Australian Capital Territory in respect of any dispute under this Agreement.

1.5 This Agreement records the entire agreement between the Parties in relation to its subject matter.

1.6 Subject to clauses 2 and 17, no variation of this Agreement is binding unless agreed in writing between the Parties.

1.7 If a court or tribunal says any provision of this Agreement has no effect or interprets a provision to reduce an obligation or right, this does not invalidate any other provision.

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1.8 If a Party does not exercise, or delays in exercising, any of its rights under this Agreement or at law, that failure or delay does not operate as a waiver of those rights.

1.9 A single or partial exercise by a Party of any of its rights under this Agreement or at law does not prevent the further exercise of any right.

1.10. Diabetes Australia cannot assign its obligations, and agrees not to assign its rights, under this Agreement without, in either case, prior approval in writing from the Commonwealth.

2. FUNDING FOR THE SCHEME

2.1 Subject to Parliamentary appropriation and to the provisions of this Agreement, the Department agrees to pay the Funds to Diabetes Australia in accordance with Schedule 2.

2.2 The funding to be contributed by the Department under this Agreement shall not exceed the amount of Funds provided for in Schedule 2.

2.3 The Department may at its discretion defer, reduce or not make a payment of Funds where it forms the reasonable opinion that the full payment is not properly required by Diabetes Australia because of Scheme surpluses or underspends.

2.4 Without limiting its rights, the Department may at its discretion defer, reduce or not make a payment of Funds until Diabetes Australia has performed all of its obligations that are required to be performed up to the date of that payment under this Agreement.

2.5 Diabetes Australia agrees to submit invoices for payment of the Funds. The amount of the invoice will not exceed the amount of Funds properly required by Diabetes Australia for its use in relation to the Scheme up to the date of the next invoice.

3. OTHER CONTRIBUTIONS 3.1 Diabetes Australia must within 14 days of receipt of any Other

Contribution notify the Department in writing of the amount, source and proposed use of that Other Contribution.

4. TAXES, DUTIES AND GOVERNMENT CHARGES

4.1 Subject to this clause, all taxes, duties and government charges (“Taxes”) imposed or levied in Australia or overseas in connection with this Agreement must be paid by Diabetes Australia, or as Diabetes Australia might arrange.

4.2 Without limiting clause 4.1, Diabetes Australia must pay Goods and Services Tax (‘GST’) on the goods, services and other supplies made under this Agreement (“the supplies”) to the extent that they are taxable supplies within the meaning of the A New Tax System (Goods and Services Tax) Act 1999 (“the GST Act”).

4.3 In relation to any GST payable under clause 4.2, Diabetes Australia must issue the Commonwealth with a tax invoice in accordance with the GST Act.

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4.4 Diabetes Australia warrants it is registered in accordance with the GST Act and agrees to remain registered during the Scheme Period.

5. CONDUCT OF THE SCHEME

5.1 In consideration of the provision of the Funds, Diabetes Australia must:

(a) only use the Funds for the Scheme;

(b) perform the Scheme within the Scheme Period and according to the terms and conditions set out in this Agreement;

(c) perform all aspects of the Scheme (including achieving the objectives of the Scheme through reasonable endeavours) as set out in Schedule 1; and

(d) endeavour in good faith to ensure that all work undertaken under this Agreement is in support of the expected objectives for the Scheme.

5.2 Diabetes Australia represents and warrants to the Commonwealth that:

(a) it has full power and authority to enter into, perform and observe its obligations under this Agreement;

(b) that the execution, delivery and performance of this Agreement has been duly and validly authorised by Diabetes Australia;

(c) Diabetes Australia’s signing, delivery and performance of this Agreement does not constitute:

(i) a violation of any judgment, order or decree;

(ii) a material default under any contract which relates in any way to the performance of the Scheme by which it or any of its assets are bound;

(iii) an event that would, with notice or lapse of time, or both, constitute such a default;

(d) it will provide the necessary resources to perform the Scheme and use those resources or services to perform the Scheme.

6. ADMINISTRATION OF THE SCHEME

6.1 Diabetes Australia may enter into subcontracting or agency arrangements in order to administer the Scheme. A standard form of agreement must be used between Diabetes Australia and Agents it appoints for this purpose. The Commonwealth may agree to the form of this agreement. For the avoidance of doubt, any agreement by the Commonwealth to the form of the agreement does not constitute an approval of the content and Diabetes Australia retains the sole responsibility for ensuring compliance with the requirements of this Agreement.

6.2 The Department agrees that Diabetes Australia has a transition period of 120 days from the date of execution of this Agreement, in which to implement its subcontracting arrangements. At the end of that period all Agents must be fully operational consistent with the terms of this Agreement.

6.3 Should Diabetes Australia implement subcontracting arrangements during the Scheme Period, a transition period of 120 days will also apply. This

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period will commence on the date the Agent signs the agreement consenting to supply the Services. At the end of that period the Agent must be fully operational consistent with the terms of this Agreement.

6.4 Nothing in this Agreement prevents Diabetes Australia from performing, in its own right, all the requirements of the Scheme.

6.5 Where a Sub-agent ceases, for whatever reason to be a Sub-agent, that organisation or a Related Body Corporate, Related Party or Related Entity (as those terms are defined in the Corporations Act 2001), cannot become a Sub-agent within 12 months of the termination of the Sub-agency Agreement unless Diabetes Australia agrees in writing. Where Diabetes Australia agrees it must notify the Department of its decision and the reasons for that decision.

6.6 Diabetes Australia must maintain an adequate quality assurance in respect to the financial and services operations of the Scheme.

6.7 Diabetes Australia is hereby appointed for the duration of this Agreement to act as agent for the Commonwealth only for the purchase of Products in accordance with this Agreement.

6.8 Except to the extent expressly provided in clause 6.7, Diabetes Australia or any officer, employee or agent of Diabetes Australia shall not be or shall not be taken for any purpose to be the agent of the Commonwealth or to have any power to bind or represent the Commonwealth. 

6.9 Except to the extent that to do so would be contrary to law or would render any provision of this Agreement void, voidable or unenforceable, all rights, obligations, duties and liabilities (other than rights, obligations, duties and liabilities expressly stated in this Agreement) arising from the relationship of principal and agent between the Commonwealth and Diabetes Australia, whether under common law, statute or otherwise, are hereby excluded.

6.10 For the avoidance of doubt:

(a) Funds paid to Diabetes Australia under this Agreement are held and used by Diabetes Australia in accordance with this Agreement in its own capacity and not as trustee or agent for the Commonwealth; and

(b) Registrant Contributions received by Diabetes Australia are received by Diabetes Australia in its own capacity and not as agent for the Commonwealth.

6.11 Property in any Product purchased by Diabetes Australia acting as agent for the Commonwealth in accordance with this Agreement, shall vest in the Commonwealth, and shall remain vested in the Commonwealth until the Product is supplied to a Sub-agent or Registrant in accordance with this Agreement.

6.12 Both Parties agree that they will co-operate in good faith in a review of ownership arrangements of Products which will be completed within 12 months of the execution of this Agreement.

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6.13 Products in the possession or control of Diabetes Australia are held at the risk of Diabetes Australia however the Commonwealth recognises a benchmark of 1.0% for working losses and accepts the writing off of Product losses up to this limit.

6.14 Diabetes Australia agrees that it will maintain appropriate insurance and take all other necessary measures to ensure the safe keeping of the Products.

7. DELIVERY OF THE SCHEME

7.1 Diabetes Australia agrees not to enter into any arrangement with another party in relation to the performance of the Scheme, unless Diabetes Australia is satisfied:

(a) that the arrangement facilitates compliance by Diabetes Australia with its obligations under this Agreement;

(b) that the arrangement in no way conflicts with or detracts from the rights and entitlements of the Commonwealth under this Agreement;

(c) that such party is financially viable and has the relevant expertise necessary for the proper performance of the activity in question; and

(d) that such party has all the appropriate types and amounts of insurance in order to perform its work in relation to the Scheme.

7.2 In any arrangement referred to in clause 7.1 Diabetes Australia agrees to:

(a) secure for itself a right to terminate the arrangement on terms no less favourable than those accorded the Commonwealth by clause 17, in the event of this Agreement being terminated;

(b) ensure that any arrangement contains all the relevant terms of this Agreement including those relating to delivery, intellectual property, audit and access, privacy, security, confidentiality, warranties and indemnities, disclosure and termination and ensure that the entity complies with those terms; and

(c) provide a copy of any arrangement to the Commonwealth if so requested.

7.3 Diabetes Australia agrees to use reasonable endeavours to ensure the performance of the Scheme and for ensuring compliance with the requirements of this Agreement, and will not be relieved of that responsibility because of any other arrangement it has entered into for the delivery of the requirements of the Scheme.

8. MANAGEMENT OF FUNDS AND BANK ACCOUNT 8.1 Diabetes Australia must open a bank account controlled solely by Diabetes

Australia to hold the Funds, and must immediately deposit all Funds received into that account.

8.2 Diabetes Australia must notify the Department of the identifying details of the bank account.

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8.3 The bank account is not to contain any monies other than Funds and interest earned on the Funds.

8.4 Diabetes Australia must use and deal with any interest earned on the Funds as if that money earned was part of the Funds.

8.5 Diabetes Australia must keep proper accounts and records of its use of the Funds, separately from other accounts and records of Diabetes Australia.

8.6 Diabetes Australia must not Commit any part of the Funds for expenditure that is likely to occur after the end of the Scheme Period.

9. RECORDS AND REPORTS

9.1 Diabetes Australia must keep comprehensive written records of the conduct of the Scheme including, without limitation, progress against the objectives and outcomes of the Scheme, the creation of Scheme Material, the creation or acquisition of Assets and the receipt and use of the Funds and Other Contributions.

9.2 Diabetes Australia must keep financial records relating to the Scheme so as to enable:

(a) all income and expenditure related to the Scheme to be identified in Diabetes Australia’s accounts;

(b) the presentation of a nationally consistent Scheme set of accounts, prepared on an annual basis which shows accounts in relation to each Agent;

(c) all income derived from Registrant Contributions to be clearly identified;

(d) the preparation of financial statements in accordance with Australian Accounting Standards; and

(e) the audit of these records in accordance with Australian Auditing Standards.

9.3 Within the period stated in Schedule 11 after:

(a) the completion of the Scheme or any earlier termination of this Agreement; and

(b) the end of each financial year in which a payment of Funds is made;

Diabetes Australia must provide the Commonwealth Contact Officer with:

(c) an audited detailed statement of receipts and expenditure in respect of the Funds which must include a definitive statement as to whether the financial accounts are complete and accurate, and a statement of the balance of the bank account referred to in clause 8.1; and

(d) a certificate that all Funds received were expended for the purpose of the Scheme and in accordance with this Agreement.

9.4 The audit referred to in clause 9.3(c) and the certificate referred to in clause 9.3(d) must also contain the requirements, if any, described in Schedule 11.

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9.5 The audit referred to in clause 9.3(c) must be carried out by an Approved Auditor and must comply with the Australian Auditing Standards.

9.6 The certificate referred to in clause 9.3(d) must be provided by the Chief Executive Officer or Chief Financial Officer of Diabetes Australia, or a person authorised by Diabetes Australia to execute documents and legally bind it by their execution. In preparing the certificate, Diabetes Australia should have regard to clause 25.2 of this Agreement.

9.7 Diabetes Australia must provide the Commonwealth Contact Officer with Progress Reports and a Final Report in accordance with the time-frame for Reports specified in Schedule 11.

9.8 Each Progress Report must contain the information specified in Schedule 11 and must also include:

(a) detail on whether the objectives and outcomes of the Scheme are being achieved and if not, why not;

(b) a version of the Scheme Material produced to the date of the Progress Report if requested by the Department; and

(c) a detailed statement of receipts and expenditure in respect of the Funds and a statement of the balance of the bank account referred to in clause 8.1.

9.9 The Final Report must contain the information specified in Schedule 11 and must also include:

(a) a comprehensive report on whether the objectives of the Scheme were achieved and if not, why not; and

(b) a copy of the Assets register (in accordance with clause 15.2(f) and clause 15.2(g)).

10. DISCLOSURE 10.1 It is a condition of this Agreement that:

(a) Diabetes Australia has disclosed in writing to the Commonwealth prior to the execution of this Agreement, or if this Agreement has commenced, discloses in writing to the Commonwealth as soon as practicable after execution:

(i) any litigation, arbitration, mediation, conciliation or proceeding whatsoever including any investigations ('Proceedings'), that are taking place, pending or threatened, against Diabetes Australia; or

(ii) matters relating to the commercial, technical or financial capacity of Diabetes Australia or of any Agent proposed to be engaged or currently engaged in respect of this Agreement including the existence of any breach or default or alleged breach or default of any agreement, order or award binding upon Diabetes Australia, being Proceedings or matters that could have an adverse effect on Diabetes Australia’s ability to perform any of its obligations under this Agreement; and

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(b) Diabetes Australia will promptly notify and fully disclose to the Commonwealth in writing any event or occurrence actual or threatened including matters of the kind described in clause 10.1(a) (i) and (ii) during the Scheme Period which could have an adverse effect on Diabetes Australia's ability to perform any of its obligations under the Agreement.

11. LIAISON

11.1 Diabetes Australia must liaise with and report to the Commonwealth Contact Officer at three monthly intervals or as is otherwise reasonably required by the Commonwealth Contact Officer for the purposes of this Agreement.

11.2 Upon receipt of written notice, Diabetes Australia must, within the time-frame stipulated in the notice, or within a reasonable time-frame if no time-frame is stipulated in the notice, provide any information in relation to the Scheme, including monitoring and evaluation.

12. ACCESS TO PREMISES AND MATERIALS 12.1 Diabetes Australia must give the Auditor-General, the Privacy

Commissioner, the Ombudsman and persons authorised in writing by the Department (referred to in this clause 12 collectively as ‘those permitted’) access to premises at which records and Materials associated with this Agreement are stored or work under the Scheme is undertaken.

12.2 Diabetes Australia must give to those permitted access in order to be able to inspect and copy Materials, in Diabetes Australia’s possession or control, for the purposes associated with this Agreement or any review of performance under this Agreement. Diabetes Australia must also give those permitted access to any Assets, wherever they may be located, and reasonable access to Diabetes Australia’s employees for the same purpose.

12.3 The rights referred to in clause 12.1 are, wherever practicable, subject to:

(a) the provision of reasonable prior notice by the Department (except where it believes that there is an actual or apprehended breach of the law);

(b) access being sought during reasonable times (except where those permitted believe that there is an actual or apprehended breach of the law); and

(c) Diabetes Australia’s reasonable security procedures.

12.4 Diabetes Australia agrees to provide all assistance reasonably requested by the Department in respect of any inquiry into or concerning the Scheme or this Agreement.

12.5 Diabetes Australia must ensure that any arrangement entered into for the purposes of this Agreement contains an equivalent clause allowing those permitted to have access as specified in this clause 12.

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12.6 Nothing in this Agreement limits or restricts in any way any duly authorised function, power, right or entitlement of the Auditor-General or the Privacy Commissioner. The rights of the Commonwealth under this Agreement are in addition to any other duly authorised power, right or entitlement of the Commonwealth Auditor-General or the Privacy Commissioner.

12.7 This clause 12 applies until the end of the Scheme Period or earlier termination of this Agreement and for a period of 7 years from that date.

13. SCHEME MATERIAL AND INTELLECTUAL PROPERTY

13.1 Any Intellectual Property rights and title to, or in relation to, the Scheme Material (whether created before or after the commencement of this Agreement) vests or shall vest, upon its creation, in Diabetes Australia.

13.2 Diabetes Australia grants to the Commonwealth a perpetual, irrevocable, royalty-free and licence-fee free, world wide, non-exclusive licence (including a right of sub-licence) to use, copy modify and exploit the Scheme Material.

13.3 This clause 13 does not affect the ownership of any Intellectual Property in any Existing Material. However, Diabetes Australia undertakes to grant to the Commonwealth, or arrange for the grant to the Commonwealth, of a perpetual, irrevocable, royalty-free and licence fee-free, world-wide, non-exclusive licence (including a right of sub-licence) to use, copy, modify and exploit the Existing Material in conjunction with the other Scheme Material.

13.4 Diabetes Australia warrants that anything done by Diabetes Australia in the course of the Scheme, including in developing the Reports, will not infringe the Intellectual Property rights of any person.

13.5 Intellectual Property rights and title to, or in relation to, Commonwealth Material remains vested at all times in the Commonwealth.

13.6 The Commonwealth grants to Diabetes Australia and its Agents a royalty-free and licence fee-free, world-wide, non-exclusive licence to use, copy and modify the Commonwealth Material for the purposes of the Scheme. Diabetes Australia agrees to ensure that all Commonwealth Material is used strictly in accordance with any conditions or restrictions specified by the Commonwealth.

13.7 At the end of the Scheme Period or on the earlier termination of this Agreement, the Diabetes Australia must deliver a complete copy of the Scheme Material or deal with it as directed by the Department.

13.8 At the end of the Scheme Period or on the earlier termination of this Agreement, the Diabetes Australia must deliver all of the Commonwealth Material to the Department, or deal with it as otherwise directed by the Department.

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14. ACKNOWLEDGMENT OF COMMONWEALTH FUNDS AND SCHEME BRAND USAGE

14.1 Diabetes Australia must ensure appropriate acknowledgement of the Commonwealth in the form set out in clause 14.2 for all activities and Materials developed with the Funds and in any other signage or promotional materials related to the Scheme.

14.2 The form of acknowledgment shall be as follows:

‘The National Diabetes Services Scheme is an initiative of the Australian Government administered by Diabetes Australia.’

14.3 Diabetes Australia must give the Minister at least two weeks prior notice of any public launch or event involving Diabetes Australia where the public launch or event relates to Services funded in part or in full through funds received from the Commonwealth, and give the Minister the opportunity to attend and, if the Minister wishes, to give a formal speech or presentation at the launch or event.

14.4 In addition to the acknowledgement at 14.2, Diabetes Australia must ensure all activities and Materials developed with the Funds and in any other signage or promotional materials related to the Scheme carry the Scheme brand.

14.5 Application of the Scheme brand must be consistent with the ‘Scheme Style Guide’ as agreed by the Commonwealth and Diabetes Australia (Annexure 1).

14.6 The Scheme brand must be co-located with the Diabetes Australia brand and be of equal prominence.

14.7 Other brands may be visible on items addressed under this clause, however their placement must be consistent with the protocols established by the ‘Scheme Style Guide’ and must not imply endorsement or support of a particular product or organisation by the Commonwealth, Diabetes Australia or the Scheme without prior, written consent from the Commonwealth and Diabetes Australia.

15. ASSETS

15.1 During the Scheme Period Diabetes Australia must use or dispose of any Asset only in accordance with the requirements for performance of the Scheme.

15.2 Diabetes Australia must:

(a) not encumber or dispose of any Asset, or deal with or use any Asset other than in accordance with this clause, without the prior written approval of the Department;

(b) hold all Assets securely and safeguard them against theft, loss, damage or unauthorised use;

(c) maintain all Assets in good working order throughout the operational life of the Asset;

(d) maintain all appropriate insurances in respect of any Assets;

(e) be fully responsible for, and bear all risks arising in relation to, the use or disposal of any Asset;

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(f) maintain a register of all Assets recording the date of purchase, purchase price, Asset description, Asset location, the proportion of the Funds used to create or acquire the Asset and (where relevant) details of Asset disposal including the sale price; and

(g) as and when requested, provide copies of the register of Assets to the Department.

15.3 Diabetes Australia must obtain prior agreement in writing from the Department before selling or otherwise disposing of an Asset during the term of the Scheme Period. If, at the time of the sale or disposal, the Asset has not been fully Depreciated Diabetes Australia must, at the option of the Department:

(a) pay to the Department within 28 days of the date of the sale or disposal, an amount equal to the proportion of the value of the Asset following Depreciation that is equivalent to the proportion of the purchase price of the Asset that was funded from the Funds; or

(b) pay to the Department within 28 days of the date of the sale or disposal, the proceeds of the sale or disposal, less an amount equal to the sum of Diabetes Australia’s proportionate contribution to the purchase price of the Asset and Diabetes Australia’s reasonable costs of sale or disposal of the Asset; or

(c) use the amount specified in (a) or (b) above for a purpose approved in writing by the Department.

15.4 If, on completion of the Scheme or earlier termination of this Agreement, an Asset has not been fully Depreciated Diabetes Australia must, at the option of the Department:

(a) pay to the Department within 28 days after completion of the Scheme or earlier termination of this Agreement, an amount equal to the proportion of the value of the Asset following Depreciation that is equivalent to the proportion of the purchase price of the Asset that was funded from the Funds; or

(b) sell the Asset for the best price reasonably obtainable and pay to the Department within 28 days of the date of sale the proceeds of sale, less an amount equal to the sum of Diabetes Australia’s proportionate contribution to the purchase price of the Asset and Diabetes Australia’s reasonable costs of disposal of the Asset; or

(c) use the Asset on such terms and conditions as may be approved in writing by the Department.

15.5 If Diabetes Australia fails to make payment as required by either clause 15.3 or 15.4:

(a) Diabetes Australia must pay the Department Interest on the relevant amount from the date it was due, for the period it remains unpaid; and

(b) the relevant amount, and Interest owed under this clause will be recoverable by the Commonwealth as a debt due to the Commonwealth by Diabetes Australia.

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15.6 This clause 15 survives the expiration or earlier termination of this Agreement.

16. NEGATION OF EMPLOYMENT, PARTNERSHIP AND AGENCY

16.1 Except as expressly provided in this Agreement, Diabetes Australia must not represent itself, and must use reasonable endeavours to ensure that its employees do not represent themselves, as being an employee, partner or agent of the Commonwealth, or as otherwise able to bind or represent the Commonwealth.

16.2 Except as expressly provided in this Agreement, Diabetes Australia is not by virtue of this Agreement, or for any purpose an employee, partner or agent of the Commonwealth, or invested with any power or authority to bind or represent the Commonwealth.

17. SUSPENSION AND TERMINATION

17.1 Where:

(a) the Department is reasonably satisfied that the terms and conditions of this Agreement have not been complied with by Diabetes Australia; or

(b) the Department is reasonably satisfied that Diabetes Australia is unable or unwilling to satisfy the terms of the Agreement; or

(c) the Department, by notice in writing, requests Diabetes Australia to take action to meet a time frame, perform an activity, or achieve an objective of the Scheme and, after 15 Business Days from the date of the notice (or such longer period as is specified in the notice) from the date of the notice, Diabetes Australia has failed to take such action; or

(d) the Commonwealth is reasonably satisfied that any statement made by Diabetes Australia is incorrect or incomplete in a way which would have affected the original decision to approve the Funds for the Scheme; or

(e) the Department is not reasonably satisfied that the purposes and activities of Diabetes Australia remain compatible with the objectives of the Scheme; or

(f) the Department is reasonably satisfied that a Report given by Diabetes Australia is not complete or accurate; or

(g) Diabetes Australia:

(i) becomes bankrupt or insolvent or is wound-up; or

(ii) makes an assignment of its estate for the benefit of creditors or enters into any arrangement or composition with its creditors or has a receiver, manager or administrator appointed on behalf of debenture holders or creditors; or

(iii) goes into liquidation or passes a resolution to go into liquidation, otherwise than for the purpose of reconstruction, or becomes subject to any petition or proceedings in a court for its compulsory winding-up or becomes subject to the supervision of a court either voluntarily or otherwise; or

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(iv) suffers any execution against its assets having adverse effect on its ability to perform the Agreement; or

(h) Diabetes Australia, by notice in writing given to the Commonwealth, withdraws from this Agreement; or

(i) the Commonwealth considers it appropriate for any other reasonable reason;

the Department may, by written notice to Diabetes Australia, immediately suspend dealings with the Funds or terminate this Agreement.

17.2 If this Agreement is terminated in accordance with clause 17.1, the Commonwealth will only be liable for any reasonable costs (excluding, without limitation, loss of prospective profits) unavoidably incurred by Diabetes Australia which are directly attributable to the termination. The Commonwealth will not be liable to pay any amount in excess of the amount of Funds remaining unpaid under this Agreement at the date of termination.

17.3 On termination of this Agreement, or for the duration of any suspension of dealings with the Funds, Diabetes Australia must hold the Funds in utmost good faith for use only in accordance with the directions of the Department and must cease all other dealings with the Funds.

17.4 The Department may end the suspension of dealings with the Funds by written notice to Diabetes Australia, subject to such preconditions (including variations to this Agreement) which the Department may require.

17.5 Subject to clause 17.2, the Department will not be obliged to pay any part of the Funds to Diabetes Australia after the termination of this Agreement or during any period of suspension of dealings with the Funds.

17.6 Except as provided in this clause, the Commonwealth will not come under any liability to Diabetes Australia for termination of this Agreement in accordance with clause 17.1.

17A. FORCE MAJEURE EVENT

17A.1 If a Party's ability to undertake or perform its obligations under this Agreement is affected, or likely to be affected, by a Force Majeure Event:

(a) that Party must immediately give to the other notice of that fact, including:

(i) full particulars of the Force Majeure Event;

(ii) an estimate of its likely duration;

(iii) the obligations affected by it and the extent of its effect on those obligations; and

(iv) the steps taken to rectify it; and

(b) the obligations under this Agreement of the Party giving the notice are suspended to the extent to which they are affected by the Force Majeure Event as long as the Force Majeure Event continues.

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17A.2 A Party claiming a Force Majeure Event must use its best endeavours to remove, overcome or minimise the effects of that Force Majeure Event as quickly as possible.

17A.3 Diabetes Australia will not have the right to any payment (except in respect of moneys payable by the Commonwealth prior to the occurrence of the Force Majeure Event) from the Commonwealth to the extent that its performance of this Agreement is affected by a Force Majeure Event.

17A.4 If a Force Majeure Event continues for 30 days either Party may immediately terminate this Agreement by written notice to the other.

17A.5 Where either Party terminates this Agreement under clause 17A.4, the Commonwealth will only be liable to make payment pursuant to an invoice which the Supplier properly, or could have properly, invoiced the Commonwealth prior to termination.

18. CESSATION OF DEALINGS WITH DIABETES AUSTRALIA

18.1 The Commonwealth will use reasonable endeavours to give Diabetes Australia at least 12 months notice in the event that the Commonwealth determines that it will not use Diabetes Australia to deliver the Scheme following the expiration or earlier termination of this Agreement.

18.2 On termination or expiration of this Agreement for any reason, Diabetes Australia must, in good faith, cooperate and reasonably assist the Department and any new provider of the Scheme selected by the Commonwealth, to achieve an efficient transition of the provision of the Scheme from Diabetes Australia to the new provider.

19. REPAYMENT OF FUNDS

19.1 If:

(a) on the expiry of the Scheme Period or on any earlier termination of this Agreement, any Funds:

(i) remain unspent or not Committed; or

(ii) cannot, by reconciliation between the accounts and records maintained by Diabetes Australia (as reported to the Commonwealth by Diabetes Australia in the financial statements referred to in clause 9), be shown to the reasonable satisfaction of the Department to have been spent or Committed in accordance with this Agreement; or

(b) at any time the Department forms the reasonable opinion that any Funds have been used, spent or Committed by Diabetes Australia other than in accordance with this Agreement;

the Department may by written notice to Diabetes Australia require Diabetes Australia to repay that part of the Funds, and Diabetes Australia must repay to the Department the amount set out in the notice, within 20 Business Days of receipt of the notice.

19.2 If Diabetes Australia fails to repay the Funds in accordance with a notice issued under clause 19.1:

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(a) Diabetes Australia must pay the Department Interest on the amount set out in the notice from the date it was due, for the period it remains unrepaid; and

(b) the amount set out in the notice, and Interest owed under this clause will be recoverable by the Commonwealth as a debt due to the Commonwealth by Diabetes Australia

19.3 Diabetes Australia acknowledges that Interest calculated in accordance with clause 19.2(a) represents a reasonable pre-estimate of the loss incurred by the Department as a result of the loss of investment opportunity for, or the reasonable cost of borrowing other money in place of, the amount which should have been repaid.

19.4 The operation of this clause survives the expiration or earlier termination of this Agreement.

20. INDEMNITY

20.1 Diabetes Australia indemnifies the Commonwealth, its officers, employees and agents (‘those indemnified’) from and against all actions, claims, demands, costs and expenses (including the costs of defending or settling any action, claim or demand) made, sustained, brought or prosecuted against those indemnified in any manner based on any loss or damage to any person or loss or damage to property which may arise in connection with any act or omission of Diabetes Australia or subcontractor in the performance of the Scheme.

20.2 Diabetes Australia agrees that the Commonwealth will be taken to be acting as agent or trustee for or on behalf of those indemnified from time to time.

20.3 Diabetes Australia’s liability to indemnify the Commonwealth under clause 20.1 will be reduced proportionally to the extent that any unlawful or negligent act or omission of the Commonwealth or its officers, employees or agents contributed to the loss or damage.

20.4 The indemnity referred to in clause 20.1 will survive the expiration or termination of this Agreement.

21. INSURANCE

21.1 Diabetes Australia warrants that it has taken out or will take out, and will maintain for the period specified in clause 21.2 or 21.3 as applicable, all appropriate types and amounts of insurance for the Scheme, including but not limited to the types and corresponding amounts of insurance specified in Schedule 10.

21.2 If Diabetes Australia takes out a ‘claims made policy’, which requires all claims and any fact situation or circumstance that might result in a claim to be notified within the period of insurance, Diabetes Australia must maintain the policy during the term of this Agreement and for 7 years after the expiry or earlier termination of this Agreement.

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21.3 If Diabetes Australia takes out an ‘occurrence’ policy, which requires the circumstances to which a claim relates to occur during the period of insurance whilst the notification of event can occur at any time subsequently, Diabetes Australia must maintain the policy during the term of this Agreement.

21.4 Diabetes Australia must, on request, promptly provide to the Department any relevant insurance policies and certificates of currency for inspection.

21.5 This clause 21 survives the expiration or earlier termination of this Agreement.

22. CONFIDENTIALITY 22.1 Diabetes Australia must not disclose Confidential Information

without prior approval in writing from the Commonwealth except to the extent that it is reasonably necessary for Diabetes Australia to pass on such Confidential Information to any entity it has entered into an arrangement with for the performance of the Scheme. In giving written approval the Commonwealth may impose such terms and conditions as are reasonably necessary in the circumstances.

22.2 The Commonwealth may at any time by notice in writing to Diabetes Australia, require Diabetes Australia to give, and to arrange for its employees and any entities engaged in the performance of the Scheme to give written undertakings, in a form required by the Commonwealth, relating to the non-disclosure of Personal Information or Confidential Information or both. Diabetes Australia must promptly arrange for all such undertakings to be given.

22.3 The obligations on Diabetes Australia under this clause will not be taken to have been breached where the information referred to is required by law to be disclosed.

22.4 The Commonwealth gives no undertaking to treat Diabetes Australia’s information, or this Agreement, as confidential but will use its best endeavours to ensure the confidentiality of Diabetes Australia’s information.

22.5 Diabetes Australia acknowledges that the Commonwealth may disclose information relevant to this Agreement, or this Agreement itself, to any person:

(a) to the extent required by law or by a lawful requirement of any government or governmental body, authority or agency;

(b) if required in connection with legal proceedings;

(c) for public accountability reasons, including a request for information by Parliament or a Parliamentary Committee or a Commonwealth Minister.; or

(d) for any other reasonable requirement of the Commonwealth.

22.6 The obligations contained in this clause are in addition to those set out in clause 23 and will survive the expiration or termination of this Agreement.

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23. PROTECTION OF PERSONAL INFORMATION

23.1 This clause applies only where Diabetes Australia deals with Personal Information when, and for the purpose of, performing the Scheme under this Agreement.

23.2 In this clause 23, the terms ‘approved privacy code’ (APC), ‘Information Privacy Principles’ (IPP), ‘National Privacy Principles’ (NPP), ‘health service’ and health information’, have the same meaning as they have in section 6 of the Privacy Act 1988 (the Privacy Act).

23.3 Diabetes Australia acknowledges that it may be treated as a 'contracted service provider' within the meaning of section 6 of the Privacy Act and agrees in respect of performing the Scheme:

(a) to use and disclose Personal Information obtained during the course of performing the Scheme under this Agreement, only for the purposes of this Agreement;

(b) not to do any act or engage in any practice that would breach an IPP contained in section 14 of the Privacy Act, which if done or engaged in by the Commonwealth, would be a breach of that IPP;

(c) to carry out and discharge the obligations contained in the IPPs as if it were the Commonwealth under the Privacy Act;

(d) not to use or disclose Personal Information or engage in an act or practice that would breach section 16F (direct marketing) of the Privacy Act, any NPP or an APC where that section, NPP or APC is applicable to Diabetes Australia, unless:

(i) in the case of section 16F, the use or disclosure is necessary, directly or indirectly, in the performance of the Scheme under this Agreement; or

(ii) in the case of an NPP or an APC, the activity or practice is authorised by this Agreement and engaged in for the purpose of performing the Scheme under this Agreement, and the activity or practice is inconsistent with the NPP or APC;

(e) to disclose in writing to any person who asks, the content of the provisions of this Agreement (if any) that are inconsistent with an NPP or an APC binding a party to this Agreement;

(f) to immediately notify the Commonwealth if Diabetes Australia becomes aware of a breach or possible breach of any of the obligations contained in, or referred to in, this clause 23, whether by Diabetes Australia or any entity it has entered into an arrangement with for the performance of the Scheme;; and

(g) to ensure that any employee of Diabetes Australia who is required to deal with Personal Information for the purposes of this Agreement is made aware of the obligations of Diabetes Australia set out in this clause 23.

23.4 Diabetes Australia agrees to ensure that any arrangement it has entered into for the performance of the Scheme contains provisions to ensure that that entity has the same awareness and obligations as Diabetes Australia has under this clause.

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23.5 Diabetes Australia agrees to indemnify the Commonwealth in respect of any loss, liability or expense suffered or incurred by the Commonwealth which arises directly or indirectly from a breach of any of the obligations of Diabetes Australia under this clause 23, or an entity it has entered into an arrangement with for the performance of the Scheme.

23.6 Notwithstanding any other provision in this clause 23, where Diabetes Australia provides a health service to an individual it will:

(a) comply with the NPPs in relation to the use and disclosure of health information about the individual, and

(b) transfer health information to another health service provider when directed to do so by the Commonwealth.

23.7 Diabetes Australia:

(a) acknowledges that the Commonwealth's lawful functions necessarily include the prevention, detection, investigation and prosecution of fraud including fraud in relation to payments made pursuant to Medicare Australia's functions; and

(b) agrees to co-operate to the maximum extent practicable with relevant Commonwealth officials in preventing, detecting , investigating and prosecuting, including use and disclosure of personal information as permitted by the Privacy Act 1988 generally and NPP 2.1(f) in particular.

23.8 The provisions of this clause 23 survive termination or expiration of this Agreement.

24. CONFLICT OF INTEREST 24.1 Diabetes Australia warrants that, to the best of its knowledge after making

diligent inquiry, at the date of signing this Agreement no Conflict exists or is likely to arise in the performance of its obligations under this Agreement.

24.2 For the avoidance of doubt, a concurrent responsibility to supply benefits under the Pharmaceutical Benefits Scheme will not be considered a Conflict for the purpose of this Agreement.

24.3 If during the term of this Agreement, a Conflict arises in respect of Diabetes Australia, Diabetes Australia must:

(a) immediately notify the Department in writing of that Conflict making a full disclosure of all information relating to the Conflict; and

(b) take such steps as the Commonwealth may reasonably require to resolve or otherwise deal with that Conflict.

24.4 If Diabetes Australia fails to notify the Department under this clause, or is unable or unwilling to resolve or deal with the Conflict as required, the Department may terminate this Agreement in accordance with either clause 17.1(a), (b) or (d).

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24.5 Diabetes Australia agrees that it will not, and will use reasonable endeavours to ensure that any officer, employee, Agent of Diabetes Australia does not, engage in any activity or obtain any interest during the course of this Agreement that is likely to conflict with or restrict Diabetes Australia in performing the Scheme fairly and independently.

25. COMPLIANCE WITH LAW AND POLICIES

25.1 Diabetes Australia must, in carrying out this Agreement, comply with:

(a) the provisions of any relevant statutes, regulations, by-laws, and requirements of any Commonwealth, State, Territory or local authority, including without limitation, those listed in Schedule 10 and the Crimes Act 1914, Criminal Code Act 1995, Racial Discrimination Act 1975, Sex Discrimination Act 1984, Disability Discrimination Act 1992, Equal Opportunity for Women in the Workplace Act 1999, Age Discrimination Act 2004, Ombudsman Act 1976 and Auditor-General Act 1997;

(b) any policies notified to Diabetes Australia in writing, or listed in Schedule 10.

25.2 Diabetes Australia should note that under the Criminal Code Act 1995 section 137.1, giving false or misleading information to the Commonwealth is a serious offence.

25.3 Without limiting the effect of clause 16, Diabetes Australia must comply with, and require its officers, employees and Agents to comply with the behaviours set out in the Code of Conduct in section 13 of the Public Service Act 1999 as if Diabetes Australia and its officers, employees and Agents were APS employees as defined in that Act.

26. DISPUTE RESOLUTION 26.1 Subject to clause 26.3, the Parties agree not to commence any legal

proceedings in respect of any dispute arising under this Agreement, which has not been resolved by informal discussion, until the procedure provided by this clause has been followed.

26.2 The Parties agree that any dispute arising during the course of this Agreement will be dealt with as follows:

(a) the Party claiming that there is a dispute will send the other a written notice setting out the nature of the dispute;

(b) the Parties will try to resolve the dispute through direct negotiation by persons who they have given authority to resolve the dispute;

(c) the Parties have 10 Business Days from the receipt of the notice to reach a resolution or to agree that the dispute is to be submitted to mediation or some alternative dispute resolution procedure; and

(d) if:

(i) there is no resolution of the dispute;

(ii) there is no agreement on submission of the dispute to mediation or some alternative dispute resolution procedure; or

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(iii) there is a submission to mediation or some other form of alternative dispute resolution procedure, but there is no resolution within 15 Business Days of the submission, or such extended time as the Parties may agree in writing before the expiration of the 15 Business Days,

then, either Party may commence legal proceedings.

26.3 This clause 26 does not apply to the following circumstances, where:

(a) either Party commences legal proceedings for urgent interlocutory relief;

(b) action is taken by the Commonwealth under, or purportedly under, clauses 2, 12, 17 or 19;

(c) an authority of the Commonwealth, a State or Territory is investigating a breach or suspected breach of the law by Diabetes Australia.

26.4 Despite the existence of a dispute, both Parties must (unless requested in writing by the other Party not to do so) continue to perform obligations under this Agreement.

26.5 The operation of this clause 26 survives the expiration or earlier termination of this Agreement.

27. NOTICES

27.1 A Party giving notice under this Agreement must do so in writing, including by facsimile, that is:

(a) directed to the Party’s address specified in Schedule 10 marked for the attention of the Liaison Officer; and

(b) hand delivered or sent by pre-paid post or facsimile to that address.

27.2 A notice given in accordance with clause 27.1 is received:

(a) if hand delivered, on delivery;

(b) if sent by pre-paid post on the third Business Day after the date of posting;

(c) if sent by facsimile, at the time the sender receives notification that the notice has been transmitted satisfactorily.

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SIGNED as a contract. SIGNED for and on behalf of the COMMONWEALTH OF AUSTRALIA by The Hon Tony Abbott, MHR, Minister for Health and Ageing __________________________ Signature

_____________________________ Date

in the presence of: ____________________________ __________________________ Printed name of Witness Signature

SIGNED for and on behalf of DIABETES AUSTRALIA (ABN 47 008 528 461) _____________________________ __________________________ Printed name of Director Signature

___________________________ Date

in the presence of: ____________________________ __________________________ Printed name of Director/Secretary Signature

___________________________ Date

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SCHEDULE 1 - OBJECTIVES OF THE SCHEME

1.1 SPECIFIC OBJECTIVES

1.1.1 The specific objective of the Scheme are as follows:

(a) to provide diabetes aids, equipment and appliances in accordance with Section 9A(1)(a) of the National Health Act 1953. Section 9C(1) of the Act allows the Commonwealth to enter into an arrangement with a public corporate body for the supply of such aids prescribed to persons who require them;

(b) Diabetes Australia must, on behalf of the Australian Government and in accordance with the National Health Act 1953, supply Products under the Scheme to Registrants throughout each State and Territory of Australia;

(c) provide Products utilising efficient and effective delivery mechanisms including the use of contemporary communication, information technology and management systems;

(d) ensure that there are appropriate and equitable access arrangements to the Scheme across Australia;

(e) enhance opportunities for community health providers including community pharmacies, Diabetes Centres, GP Practices and community health centres to continue their role as Agents in the distribution of Scheme products, whilst also optimising the role of the other distribution points provided by Diabetes Australia. This is to maximise the accessibility of Scheme Products and Services;

(f) provide appropriate information and support services to maximise the capacity of the Registrant to manage their diabetes. Important to the effective delivery of information and support services is the development and delivery of Product/Services that are consistent across Australia as well as addressing the different population and regional needs of Registrants;

(g) undertake Strategic Development activities to maintain and improve the capability of the Scheme to meet the needs of Registrants and provide information on a nationally consistent basis throughout the duration of the Agreement. The initial focus areas for Strategic Development projects will be Aboriginal and Torres Strait Islander people, young people with diabetes, culturally and linguistically diverse people with diabetes, older Australians with diabetes and the impacts of diabetes on psychosocial and mental health issues.

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SCHEDULE 2 - FUNDS AND PAYMENT

2.1 FUNDS 2.1.1 The Funds payable under this Agreement shall be determined on the

following basis:

(a) subject to Item 2.2, an amount equal to the direct cost to Diabetes Australia of Products supplied to Registrants, calculated at ex-supplier prices; and

(b) an additional amount per Unit of Product actually supplied to Registrants as follows:

Period Amount per Unit of Product

1 November 2006 to 30 June 2007 $7.36

The amount listed above will be indexed in accordance with the annual forecast Wage Cost Index 5 (WCI 5) rate of indexation, at 1 July for each year of the Agreement. The Department will write to Diabetes Australia to inform them of the indexation rate to be applied based on the following year forecasts set by Treasury.

(c) a fixed Grant component comprising the following amounts:

Period Fixed Component – Actual Payments

1 November 2006 to 30 June 2007 to be determined in accordance with clause 2.1.1(d)

1 July 2007 to 30 June 2008 $3,997,000

1 July 2008 to 30 June 2009 $4,097,000

1 July 2009 to 30 June 2010 $4,200,000

1 July 2010 to 31 December 2011 $4,305,000

(d) this fixed Grant Component amount for the period 1 November 2006 to 30 June 2007 will be determined following reconciliation of funding provided in the period 1 July 2006 to 31 October 2006. In any event the total fixed grant component for the period 1 July 2006 to 30 June 2007 will be $3,900,000.

2.1.2 The Funds identified in Item 2.1.1(b) shall be referred to as the ‘Product Component’ and may be applied by Diabetes Australia Ltd as follows:

(a) Product Supply and Delivery (Schedule 3) – 71%;

(b) Registrant Services (Schedule 5) – 22%; and

(c) National Projects Grant (Schedule 7) – 7%.

2.1.3 The Funds identified in Item 2.1.1(c) shall be referred to as the ‘Fixed Component’ and may be applied by Diabetes Australia Ltd as follows:

(a) Diabetes Australia National Office administration;

(b) Strategic Development projects (Schedules 6 and 9); and

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(c) Information Technology (Schedule 8).

2.1.4 Diabetes Australia may transfer Funds between the Product Component Grant and the Fixed Component Grant, provided that all aspects of the Scheme are performed but such transferred amounts would not result in a variation by greater than 10% of the respective grant component without prior approval of the Commonwealth.

2.2 Registrant Contributions

2.2.1 The amount of Funds payable under 2.1.1 shall be reduced by the amount of Registrant Contributions received under the Scheme by Diabetes Australia except for the indexation applied in clause 2.3.

2.3 Indexed Registrant Contributions

2.3.1 Registrant Contributions will also be indexed annually in line with the indexation rate applied to the Pharmaceutical Benefits Scheme.

2.3.2 The Registrant Contributions under this additional contribution will supplement the Grant component identified in Item 2.1.1 (c) over the life of the Scheme, with the aim to improve and enhance services to the Scheme, and shall not reduce the Funds payable by the Commonwealth under this Schedule.

2.4 GST

2.4.1 Funds payable by the Commonwealth to Diabetes Australia under this Agreement are calculated on a basis which does not include an amount on account of any GST which may be payable by Diabetes Australia in relation to supplies made by Diabetes Australia to the Commonwealth.

2.5 PAYMENT

2.5.1 The process for payment of Funds shall be as follows:

(a) within 7 days after the commencement of this Agreement, the Commonwealth shall pay Diabetes Australia in respect of Funds referred to in Items 2.1.1(a), 2.1.1(b) and 2.1.1 (c) an amount equivalent to the last monthly cash advance payment made under the previous Agreement increased by the amount of $100,000.

(b) subsequent payments to Diabetes Australia shall paid through an agreed annual funding estimate and the Commonwealth shall pay to Diabetes Australia the sum of one twelfth of the amount of these Funds on a monthly basis in advance;

(c) If Diabetes Australia is of the opinion that the Annual Estimate requires review, the Department and Diabetes Australia will, if requested by either Party, hold discussions to review the Annual Estimate;

(d) payment shall be made by electronic funds transfer into the account referred to in clause 8.1;

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(e) no later than 90 days after the end of the Scheme Period, the Commonwealth shall pay to Diabetes Australia, or Diabetes Australia shall pay to the Commonwealth, as the case may be, an adjustment payment calculated in a manner which will ensure that the amount of Funds paid by the Commonwealth to Diabetes Australia under this Agreement is in accordance with Item 2.1.

(f) Funds provided in 2.1.1 (c) may be specifically delivered to Diabetes Australia under a timeframe agreed by Diabetes Australia and the Commonwealth.

2.6 REPORTS

2.6.1 Diabetes Australia is required to provide the Department with Reports on the Funds on an annual basis.

2.6.2 Each Report shall contain the following, which can be submitted as part of the Annual Report outlined at Schedule 11:

(a) the number of Units of Products supplied to Registrants;

(b) the actual direct cost to Diabetes Australia of Products supplied to Registrants;

(c) the total amount of Registrant Contributions collected by Diabetes Australia, in the reporting period;

(d) the total amount of indexed Registrant Contributions collected by Diabetes Australia and utilised as supplementary Funding for activities in 2.1.1(c); and

(e) the Funds on hand at the end of the reporting period.

2.7 CONTINGENCIES

2.7.1 In the event that the Consumer Price Index exceeds 5 percent for the 12 months to 30 June in any year of this Agreement, the Commonwealth and Diabetes Australia will, if requested by either party, hold discussions to review arrangements under this Agreement.

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SCHEDULE 3 - PRODUCT SUPPLY AND DELIVERY

3.1 National supply of Products

3.1.1 Diabetes Australia must supply Products under the Scheme to Registrants throughout each State and Territory of Australia.

3.2 Products to be supplied

3.2.2 The Products to be supplied by Diabetes Australia under the Agreement will be the aids and appliances listed in Annexure 2 or listed in a written determination made by the Minister for the purpose of this Agreement, being aids and appliances prescribed for the purposes of section 9C of the National Health Act 1953.

3.3 Purchase and supply arrangements

3.3.1 Diabetes Australia must make suitable arrangements to enable and ensure the supply of Products to Outlets, and their subsequent supply only to Registrants. Outlets may include facilities operated by Agents. Distribution may also be by post or courier direct to Registrants by Agents.

3.3.2 Diabetes Australia must ensure that sufficient stocks and types of Products are maintained at all times to meet all reasonable orders, in accordance with good practices of stock administration. Diabetes Australia may from time to time determine that not all Products need be held at all locations but instead ensure that appropriate referral mechanisms exist to allow Registrants to access Products via an alternative method without additional cost and within a reasonable timeframe.

3.3.3 Diabetes Australia must purchase Products required for the purpose of the Scheme from suppliers nominated by the Commonwealth, at prices agreed by the Commonwealth and the suppliers. Once the price is agreed Diabetes Australia must take over the listing procedure in accordance with the Product Listings Procedures Manual, a copy of which is at Annexure 3.

3.3.4 Diabetes Australia must ensure that Scheme registration and order forms are readily available at all Outlets.

3.3.5 Diabetes Australia must use its best endeavours, assuming that the Product is not on back-order with the relevant supplier, to ensure that a Registrant who has submitted an order to Diabetes Australia is supplied with the ordered quantity, or at least a reasonable quantity in lieu of the ordered quantity, of Products within the following times:

(a) at the time of placing the order, in the case of over the counter purchases; or

(b) Products despatched within 2 working days of receipt of order and delivered as per Australia Post normal delivery schedules, in the case of mail, telephone, Email or internet orders.

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3.4 Registrant Contributions

3.4.1 Registrant Contributions must only apply only to the supply of Products under the Scheme and must be as set out in Annexure 2 as varied from time to time.

3.4.2 Registrant Contributions will also be indexed annually on 1 January each year in line with the indexation rate applied to the Pharmaceutical Benefits Scheme.

3.5 Registrant Identification

3.5.1 The Product must only be supplied upon production of one or more of the following:

(a) a valid Scheme registration card;

(b) a valid Medicare card;

(c) citation of a valid registration number; or

(d) citation of a valid Medicare number.

and payment of the correct amount of Registrant Contributions..

3.5.2 Diabetes Australia is permitted to refuse access to the Scheme where, in the reasonable opinion of Diabetes Australia, the Registrant no longer holds the qualifications necessary to be a Registrant or where the identity of the person cannot be verified.

3.6 PRODUCT SUPPLY REPORTS

3.6.1 Diabetes Australia is required to provide the Department with reports on Product Supply records on an annual basis.

3.6.2 Each report must contain the following information, which can be submitted as part of the Annual Report outlined at Schedule 11:

(a) quantity of Product supplied to Registrants, by Units of Product, for each item covered by the Scheme, including Blood Glucose Test Strips, Urine testing strips, Sharps – consisting pen needles and syringes, and Insulin pump consumables (lines, adaptors and reservoirs); the ex-manufacturer cost of those Products; the value of remuneration to Diabetes Australia paid in accordance with Schedule 2 of this Agreement; Registrant Contributions collected in respect of those Products as described at clauses 2.2 and 2.3; and cost to Government;

(b) level of product ordering by postcode;

(c) the number of Diabetes Australia Agent Outlets by postcode and per postcode population;

(d) the proportion of Products supplied directly, by mail or by courier, over the counter, broken down Agent Outlets, and nationally and by State and Territory; and

(e) the number of occasions complaints were received in regards to not receiving Product as specified in 3.5.4 (b).

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SCHEDULE 4 – SCHEME OUTLETS

The Australian Government and Diabetes Australia recognise that as the Scheme is an Australian Government, program it is essential to ensure that there are fair access arrangements to the Scheme across Australia. As part of this objective, this Schedule aims to provide the mechanisms to implement optimal access and coverage of Outlets for Scheme access for people with diabetes around Australia.

This Schedule also aims to provide the opportunity for health providers including community pharmacies, Diabetes Centres, GP Practices and community health centres to optimise their role as Sub-agents in the distribution of Products, whilst also enhancing the role of other Outlets to provide for access choice which includes orders by telephone, mail, Email, suitably secure internet connection (when available) and over the counter supply from Agents for Products and Services.

Diabetes Australia and the Commonwealth acknowledge that full implementation of the access strategy and location of Outlets may require changes to be made from previous arrangements in some States and Territories.

Diabetes Australia acknowledges that it is fully responsible for performance of the Scheme. However both the Department and Diabetes Australia acknowledge that to implement the Scheme, functions must be undertaken by other entities. To assist in the efficient operation of the Scheme, the Commonwealth has agreed that Diabetes Australia can delegate some or all of its responsibilities as described in this Schedule.

4.1 AGENTS

4.1.1 Agents may be appointed by Diabetes Australia in a State, Territory or other designated area for delivery of the Scheme and may be member organisations of Diabetes Australia or such other suitable entities as from time to time determined at the discretion of Diabetes Australia.

4.1.2 Diabetes Australia must require Agents to carry out their functions and responsibilities under the Scheme, including the appointment and management of Sub-agents, in a manner which mirrors the obligations imposed by this Agreement.

4.1.3 Each Outlet should be established in accordance with the Sub-Agency Establishment and Management Manual which will be supplied to the Agents at the same time the arrangement between Diabetes Australia and the Agent is executed.

4.2 SUB-AGENTS

4.2.1 Diabetes Australia may permit Agents to appoint Sub-agents. Diabetes Australia must ensure that the obligations in any such arrangement mirror the obligations imposed by this Agreement.

4.2.2 Agents may appoint as Sub-agents:

(a) community pharmacies;

(b) community health centres;

(c) Diabetes Centres;

(d) hospitals;

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(e) divisions of general practice;

(f) appropriate allied health practices;

(g) Aboriginal health services; or

(h) other appropriate Outlets which have been approved by Diabetes Australia in writing.

4.2.3 Sub-agents are not to be granted exclusive territory rights.

4.3 ROLE OF DIABETES AUSTRALIA IN RELATION TO SUB-AGENTS

4.3.1 Diabetes Australia must require Agents to ensure that Sub-agents are provided with:

(a) funding as directed by the Commonwealth, to subsidise the cost of initial Product required to establish the Sub-Agency with stock to carry out the role of Sub-agent, except in those circumstances specified in clause 6.5. For the avoidance of doubt this funding will be in addition to Funds outlined in Schedule 2;

(b) an induction into the Scheme to be held within 30 days of the execution of the arrangement between the Agent and the Sub-agents;

(c) an identification of suitable training programs and/or updates for Sub-agent staff on diabetes care and management with programs recognised or accredited by the Health Professional Arm of Diabetes Australia, or as directed by the Department;

(d) Diabetes Australia’s procedural documentation and software relevant to the Sub-agent role within 30 days of the execution of the arrangement between the Agent and the Sub-agent;

(e) suitable marketing information and signs to identify the Outlet as a Sub-agent under the Scheme in accordance with clause 14;

(f) a service that provides a resupply of Product which has been supplied to Registrants;

(g) access to Sub-agent Connectivity within a reasonable time; and

(h) advice on local diabetes services and networks.

4.4 ROLE OF SUB-AGENTS

4.4.1 Diabetes Australia must require Agents to require that Sub-agents perform the following functions and responsibilities under the Scheme:

(a) providing a reliable supply of Products to Registrants within the timeframe referred to in Schedule 5 - Registrant Services. A copy of this Schedule will be supplied to the Agent at the same time the arrangement between Diabetes Australia and the Agent is executed;

(b) providing Registrants with the information material referred to in Schedule 5 - Registrant Services;

(c) providing access for Registrants to a person engaged or employed by the Sub-agent for the provision of information on diabetes and who is capable of responding to Registrants’ questions. This person

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must be aware of other services to which the Registrant can be referred;

(d) collecting, properly accounting for, and remitting to the Agent, in accordance with Diabetes Australia required procedures, Registrant Contributions applying to the supply of Products under the Scheme;

(e) complying with administrative and reporting requirements of the Agent in order for the Agent to fulfil its obligations to Diabetes Australia;

(e) participating in effective and efficient relationships with the Agent to provide high quality and professional services Registrants; and

(f) displaying and promoting the Scheme in a manner that meets Diabetes Australia’s and the Department’s requirements.

4.5 SELECTION OF SUB-AGENTS

4.5.1 All approved pharmacies throughout Australia are eligible to be Sub-agents. The pharmacy needs to demonstrate to the Agent its:

(a) pharmacy licence, location approval and approved PBS supplier status; and

(b) demonstrated high level of interest and commitment to providing specialty services to people with diabetes.

4.5.2 Each individual case for a Sub-Agency will be subject to a feasibility analysis using nationally consistent criteria by the Agent subject to any directions that Diabetes Australia may make and must be reported to the Commonwealth as per reporting requirements in clause 4.8.

4.5.3 Where it is determined that other non-pharmacy Sub-Agency Outlets are to be established, Diabetes Australia must require that the Sub-agents be selected through the following process.

(a) the Agent shall advertise for an Expression of Interest for a Sub-Agency;

(b) persons responding within the timeframe specified shall be provided by the Agent with relevant details, application documentation and the selection criteria set out in clause 4.6;

(c) the Agent will advise successful and unsuccessful applicants of its decision. Unsuccessful applicants must be given the opportunity to contact the Agent to discuss the reasons for the decision; and

(d) the successful applicants must execute a standard form of Sub-Agency agreement, before the applicant commences the functions and responsibilities of Sub-agent.

4.6 SELECTION CRITERIA FOR NON-PHARMACY SUB-AGENTS.

4.6.1 The selection criteria, which are essential considerations to be applied by Diabetes Australia and its Agents to the selection of non-pharmacy Sub-agents, are:

(a) a demonstrated high level of interest and commitment to providing specialty services to people with diabetes;

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(b) a commitment to staff for ongoing education on developments in diabetes management through programs recognised or accredited by the Health Professional Arm of Diabetes Australia, or as directed by the Department;

(c) the ability to assist culturally and linguistically diverse/indigenous groups (eg. languages spoken);

(d) allocation of an area that will be dedicated for the counselling of clients and demonstration of products which can maintain the confidentiality of such meetings;

(e) the availability of business systems and hardware capable of operating and connecting to the Diabetes Australia operating system for recording the delivery of Products and Services to Registrants;

(f) suitable location in relation to public transport and/or car parking; and

(g) other criteria considered appropriate by Diabetes Australia or its Agents in relation to specific or special areas or locations.

4.6.2 Each individual case for a Sub-Agency will be subject to a feasibility analysis using nationally consistent criteria by the Agent subject to any directions that Diabetes Australia may make and must be reported to the Commonwealth as per reporting requirements in clause 4.8.

4.7 SPECIFIC ACCESS AND DISTRIBUTION ARRANGEMENTS. 4.7.1 The following requirements under this Schedule in relation to Outlets

must be implemented in the first year of the Agreement:

(a) NSW

Diabetes Australia and the Agent must review current Sub-Agency business activity in the following postcode ranges in the 12 months following the execution of this Agreement:

• 2140 – 2170 Strategic Development Grant (SDG) Funding Review

• 2170 – 2200 SDG Funding Review

• 2650 – 2770 SDG Funding Review • 2200 – 2220 SDG Funding Review

(b) Victoria Sub-agency expansion – in particular within postcode ranges listed below:

• 3040 – 3050 • Sub-Agency expansion (2 Outlets)

• 3050 – 3080 • Sub-Agency expansion (5 Outlets)

• 3100 – 3110 • Sub-Agency expansion (1 Outlet)

• 3155 – 3180 • Sub-Agency expansion (2 Outlets)

• 3800 – 3860 • Sub-Agency expansion (2 Outlets)

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(c) South Australia

Sub-agency expansion – State wide roll-out of sub-agencies in the 12 months following execution of this Agreement:

Begin focus on Adelaide and greater Adelaide.

• 5000 – 5100 • Sub-Agency expansion (10-15 Outlets year 1)

(d) Queensland

Sub-agency expansion – in particular within postcode ranges listed below:

• 4051 – 4055 • Sub-Agency expansion (2 Outlets)

• 4100 – 4120 • Sub-Agency expansion (2 Outlets)

• 4150 – 4200 • Sub-Agency expansion (3 Outlets)

• 4200 – 4220 • Sub-Agency expansion (2 Outlets)

• 4300 – 4305 • Sub-Agency expansion (2 Outlets)

• 4500 – 4510 • Sub-Agency expansion (2 outlets)

(e) Tasmania

Review current sub-agency business activity – in relation to postcode 7250 (SDG Funding review).

(f) Western Australia

Review current sub-agency business activity – in relation to postcode ranges listed below:

• 6000 – 6100 • Sub-Agency Expansion (5 Outlets)

(g) ACT

Maintain current levels.

(h) NT

Maintain current levels.

4.8 ACCESS REPORTS

4.8.1 Diabetes Australia must provide the Department with reports on its access arrangements on an annual basis.

4.8.2 Each report must contain the following, which can be submitted as part of the Annual Report outlined at Schedule 11:

(a) number of Agents or Diabetes Australia shop-fronts located in each State / Territory;

(b) number of Sub-agents located in the State / Territory;

(c) PhAria rating of each Outlet;

(d) annual review of Sub-agent activity in each State / Territory;

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(e) annual review of Sub-agent expansion in each State / Territory, including:

(i) number of Sub-Agency advertisements each reporting period;

(ii) number of sub-agency applications received (including type – pharmacy, non pharmacy) each reporting period;

(iii) number of successful sub-agency applications;

(iv) number of unsuccessful sub-agency applications and why; and

(v) number of appeals lodged regarding unsuccessful sub-agency applications;

(f) summary of performance against required reviews/objectives specific to clause 4.7;

(g) status of Sub-agent Connectivity rollout and a report on the effectiveness of the system;

(h) the number of Sub-Agency applicants over the reporting period in each State/Territory; and

(i) any other matters considered relevant including areas of concern or areas of continuous improvement.

4.9 Access and Distribution Reviews

4.9.1 In addition to these reporting requirements, the Department and Diabetes Australia agree to undertake a quarterly review of distribution arrangements using datasets of both the Scheme and PBS, in accordance with requirements set out in clause 4.7 of this Schedule. Diabetes Australia and the Department will also review the Specific Access and Distribution arrangements in clause 4.7 as part of this process.

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SCHEDULE 5 - REGISTRANT SERVICES

This Schedule sets out the obligations for delivery of Services to Registrants.

General information to be delivered to Registrant can include a variety of areas - including medical and scientific information.

All medical and scientific information materials developed for distribution to Registrants must receive approval by the Health Professional Arm of Diabetes Australia prior to provision to the Registrant, unless otherwise directed by the Commonwealth.

The information materials must be made available in a selection of common community languages agreed with the Commonwealth.

Agents providing information under this Scheme to Registrants must have undertaken appropriate levels of training, through programs recognised or accredited by the Health Professional Arm of Diabetes Australia or the Department, and have access to qualified staff for correct referral opportunities.

5.1 REGISTRATION UNDER THE SCHEME

5.1.1 Diabetes Australia must maintain arrangements for the registration of persons with diabetes under the Scheme in accordance with the following requirements:

(a) unique identification of a Registrant on receipt of a properly completed application form or alternative arrangements as agreed with the Commonwealth from time to time;

(b) only persons meeting both of the following requirements may be registered:

(i) the person must be able to prove that they are within the definition of an ‘eligible person’ under the Health Insurance Act 1973 or treated as an eligible person under that Act. To confirm eligibility an individual must have one of the following listed on the registration form and may be asked to present it as proof of eligibility:

• a valid Medicare card;

• a passport with a valid visa from a country with a Reciprocal Health Care Agreement;

• a letter from Medicare Australia stating eligibility to Scheme services; or

• other such arrangements as may be agreed in writing between the Department and Diabetes Australia

and

(ii) have a Scheme registration form signed by:

• medical practitioner; or

• credentialled diabetes educator.

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By signing the form the health professional is attesting to the fact that the documentation sighted is sufficient evidence to confirm a diagnosis of diabetes for the purposes of registering on the Scheme. In the case of indigenous people receiving care through Aboriginal Medical Services, certification by the Medical Officer of that service shall be deemed sufficient to establish eligibility.

Under these circumstances, registration via a bulk registration form may be deemed appropriate where Diabetes Australia is satisfied that all mandatory information has been established and verified.

(c) each Registrant must be issued with a Scheme registration card, and the arrangements must provide a means of ensuring that registration cards are only issued in respect of persons meeting both criteria in (b).

(d) for those Registrants entering the Scheme under temporary eligibility arrangements, the time frame will be:

(i) Gestational diabetes – registration valid for 12 months;

(ii) those with diabetes visiting Australia from a country with Reciprocal Health Care Arrangements – eligible to register for the term of the visa or up to the expiry date stated on a temporary Medicare card

and each Registrant must be issued with a Scheme registration card which clearly identifies the expiry of the registration period and the terms under which the registration is valid; and

(e) the arrangements must enable monitoring of utilisation and costs for the supply of Products under the Scheme and provide the information required for Reports under this Agreement.

5.2 SERVICES AND INFORMATION FOR NEW REGISTRANTS JOINING THE SCHEME

5.2.1 Diabetes Australia must provide a registration card and the Commonwealth approved Scheme starter pack to, or in respect of, new Registrants within the following timeframes:

(a) over the counter with Diabetes Australia – immediately;

(b) by mail, email or fax - within 2 weeks of receiving the registration form; and

(c) all registrations submitted through a Sub-agent must be forwarded onto Diabetes Australia for processing within 2 days of receipt;

5.2.2 Information in the Scheme starter pack must include detail on the effective self management of diabetes as it relates to the diabetes type of that Registrant, including;

(a) the appropriate use of Products available under the Scheme;

(b) general health information as it relates to diabetes management;

(c) general diet advice as it relates to diabetes management; and

(d) information on the Scheme and the location of Scheme services within the relevant state or territory

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5.2.3 This information must be based on best practice, updated to reflect this as necessary, and must be reviewed by the Professional Arm of Diabetes Australia.

5.3 CORE REGISTRANT SERVICES

5.3.1 Diabetes Australia must make available and maintain web sites to make the information materials referred to in 5.1.1 available on the Internet. Diabetes Australia must publicise the address of the web site.

5.3.2 Diabetes Australia must make available, advise and respond to requests from Registrants for:

(a) information on the appropriate use of products supplied under the Scheme; and

(b) general information on the self-management of diabetes.

5.3.3 Diabetes Australia must make available an Scheme Registrant 1300 help line telephone number to enable Registrants to order Products under the Scheme and to obtain best practice information on issues relating to the self-management of diabetes. Diabetes Australia must have in place an identity check mechanism.

5.4 TAILORED REGISTRANT SERVICES

5.4.1 Where appropriate, Diabetes Australia must:

(a) provide relevant information to Registrants to enable them to better manage their condition and optimise the effectiveness of Product usage under the Scheme; and

(b) facilitate appropriate referral of Registrants to health professionals.

5.5 OTHER SERVICES TO BE PROVIDED

5.5.1 Diabetes Australia must provide advice promptly to the Department and to the Therapeutic Goods Administration of any significant concerns Diabetes Australia may have over the reliability or safety of any Product distributed under the Scheme.

5.5.2 Diabetes Australia must monitor patterns of usage of Products by Registrants and, based on this monitoring, contact Registrants where patterns of use may indicate sub-optimal management of their diabetes or inefficient use of Scheme resources consistent with protocols developed by the Health Professional Arm of Diabetes Australia or excessive use of product which may be deemed harmful to the Registrant’s diabetes management regimen or possible fraud involving Scheme products.

5.6 SCHEME REGISTRANTS TRAVELLING OR LIVING OVERSEAS

5.6.1 Scheme listed products can only be sent to Registrants residing in Australia. This means that Registrants who are travelling or living overseas cannot have products sent to them at an overseas address.

5.6.2 However, a Registrant who is travelling overseas for short periods can take up to 6 months supply of Scheme products with him or her.

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5.7 AUSTRALIAN OFFSHORE TERRITORIES

5.7.1 Norfolk Island

Norfolk Island is not regarded as part of Australia for Medicare, PBS and Scheme purposes. Norfolk Island residents are ineligible for access to the Scheme except where there are Norfolk Island children studying in Australia who hold a current Medicare card.

5.7.2 Cocos (Keeling) Island and Christmas Island

Cocos (Keeling) Island and Christmas island are regarded as part of Australia for Medicare purposes and residents are thus entitled to Medicare, PBS and Scheme benefits.

5.7.3 Lord Howe Island

Lord Howe Island is regarded as part of New South Wales and residents are considered eligible for the same benefits as an Australian citizen living in New South Wales

5.8 REGISTRANT SERVICES PLAN

5.8.1 Diabetes Australia must prepare and maintain a 3-year rolling Registrant Services Plan, setting out the continuing Services, projects and Products it plans to deliver for the 3 year period.

5.8.2 Diabetes Australia agree to maintain the three-year rolling Registrant Services Plan throughout the duration of the Agreement.

5.8.3 Diabetes Australia’s Agents will prepare and maintain a similar plan for the area for which they are responsible.

5.9 REGISTRANT SERVICES REPORTS

5.9.1 Diabetes Australia must provide the Department with reports on its provision of Registrant Services arrangements on an annual basis against the annual element of the Registrant Services Plan outlined in 5.7.1.

5.9.2 Each report must contain the following, which can be submitted as part of the Annual Report outlined at Schedule 11:

(a) number of Registrants, broken down into:

(i) national and by State/Territory;

(ii) Type 1, Type 2 insulin requiring and non-insulin requiring, GDM insulin requiring and non-insulin using, other diabetes insulin requiring and non-insulin requiring and total Registrants (GDM split to be provided after the first six months of the Agreement);

(iii) by relevant age categories and by diabetes type;

(iv) new registrant trend compared to previous years;

(v) number of registrants who ordered Product within the previous 3, 6 and 12 months, by type as set out in (ii);

(b) number of occasions on which information materials were supplied to or accessed by Registrants or other persons, including:

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(i) printed materials (including number of Starter Packs issued), on a State and Territory breakdown;

(ii) number of calls to Scheme Registrant 1300 help line on a State and Territory breakdown;

(iii) number of hits to the Scheme website;

(c) number and proportion of items of information material distributed:

(i) to indigenous Australian Registrants identifiable from the database, or their healthcare providers;

(ii) in languages other than English; and

(d) numbers of Registrants who have had access to programs and information developed under the Strategic Development Grant program that have been distributed as part of National Projects or have been rolled into Registrant services in the reporting year.

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SCHEDULE 6 - STRATEGIC DEVELOPMENT GRANT Objective.

Diabetes Australia must undertake Strategic Development activities to maintain and improve the capability of the Scheme to meet the needs of Registrants. More specifically, the Strategic Development Grants program is intended to initiate activities which:

• explore opportunities to maintain and improve the capability of the Scheme to achieve its objectives stated under Schedule 1; and

• have a potential for national application.

6.1 Administration

6.1.1 Diabetes Australia will administer the Strategic Development Grant program in a way which meets or exceeds the principles described in Best Practice Guidelines for Grant Programs (Australian National Audit Office, 2002), or other leading practice standard as agreed between the Commonwealth and Diabetes Australia.

6.1.2 The operational requirements of the Strategic Development Grant program will be set out in the NDSS Strategic Development Grant Program Manual (NDSS SDG Manual) a copy of which is at Annexure 4.

6.1.3 The NDSS SDG Manual will also incorporate the priorities and related focus areas to be addressed by the Strategic Development Grant program. This Manual will be established by Diabetes Australia within two months of the execution of this Agreement.

6.1.4 As focus areas and priorities may evolve over the period of this Agreement, the process of review in order to establish the targeted activities after the first 12 months of this Agreement’s commencement is described under 6.5.

6.1.5 Following review, the Commonwealth and Diabetes Australia will confirm focus areas and priorities for the following calendar year by no later than December 31 annually.

6.1.6 The Health Professional Arm of Diabetes Australia will be represented in the selection and review and evaluation processes for any Strategic Development Grant program activity which is related to issues concerning information, particularly on diabetes self management.

6.1.7 Outcomes from such projects must be reviewed by the Health Professional Arm of Diabetes Australia and the opinion expressed by it related to the appropriateness and currency of the material must accompany the final report provided to the Commonwealth on completion of the project for consideration.

6.1.8 From time to time the Commonwealth may direct Diabetes Australia to undertake particular projects which may not be subject to review by the Health Professional Arm of Diabetes Australia.

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6.2 General Registrant Focus

6.2.1 The primary focus of the Scheme Strategic Development Grant program is to support the Scheme objectives for all eligible people with diabetes in Australia.

6.2.2 Recognising the need for improved communication with Scheme Registrants in order to achieve the objectives of the Scheme stated under Schedule 1, a range of communication initiatives incorporating multilingual and Indigenous access must be considered.

6.2.3 Where appropriate, Strategic Development Funding can be utilised to review and enhance access arrangements for the Scheme in each State or Territory, in accordance with requirements set out in Schedule 4.

6.3.3 The intention for any activity undertaken as a result of issues highlighted under Schedule 4 would be to identify underlying Registrant access issues in order to facilitate improved Scheme access (but not to fund the establishment of new sub-agencies). It is anticipated that key learnings from such activities would be applied nationally where appropriate.

6.3 Key Focus Areas

6.3.1 Key focus areas are provided as a guide to direct efforts towards particular Registrant target groups needing specific support in diabetes management and should be considered in context of the overall objectives of the Scheme.

6.3.2 The key focus areas and their related priorities should not be considered exhaustive and may be refined or amended at anytime during this agreement following agreement between the Commonwealth and Diabetes Australia .

6.3.3 At the commencement of this Agreement five key focus areas have been identified:

(a) indigenous Australians with diabetes;

(b) young adults with diabetes aged 16-35 years;

(c) people with diabetes from culturally and linguistically diverse communities;

(d) older people with diabetes, with particular emphasis on potential for improved Scheme access to Aged Care facilities, and;

(e) psychosocial and mental health impacts of living and managing diabetes for all Registrants.

6.4 STRATEGIC DEVELOPMENT REPORTS

6.4.1 Diabetes Australia is required to provide Strategic Development Grant program reports on an annual basis.

6.4.2 Each report must contain the following, which can be submitted as part of the Annual Report outlined at Schedule 11:

(a) number of Strategic Development Projects for the year;

(b) number of projects completed for the year;

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(c) outline of projects that will be rolled out across the Scheme on a national basis;

(d) copies of any resources or materials developed and distributed to Scheme registrants during the period covered by the report;

(e) any other matters deemed relevant.

6.4.3 In addition, for each project funded under the Strategic Development Grant program, Diabetes Australia must supply the Department with a copy of the schedules for any related contract which includes detailed descriptions of agreed timeframes, project objectives, reporting requirements and milestones with an associated schedule of payments.

6.5 ADDITIONAL REVIEW REQUIREMENTS

6.5.1 In addition to these reporting requirements, the Department and Diabetes Australia agree to undertake a regular review of project outcomes, agreed key focus areas and ongoing priorities for the Strategic Development Grant Program.

6.5.2 The first review will be undertaken within 12 months of the execution of this Agreement and then annually no later than October 31. Confirmation of ongoing key focus areas and priorities will be agreed by the Commonwealth and Diabetes Australia by no later than December 31 each year of this Agreement.

6.5.3 This Schedule will enable preparation for announcement of annual grant rounds and their priorities early in each subsequent calendar year and ongoing issue of commissioned projects as appropriate.

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SCHEDULE 7 - NATIONAL PROJECTS

National Projects provides the opportunity for Diabetes Australia to ensure a nationally consistent approach for:

• roll-out of successful information and other resources developed under the Strategic Development Grant;

• marketing and promotion of the Scheme to key external stakeholders to increase awareness and recognition and in support of the scheme objectives stated under Schedule 1; and

• implementation of the Scheme brand.

7.1 Administration

7.1.1 Diabetes Australia must prepare an annual National Projects plan which will outline the key activities to be achieved and allocated for support under this funding pool within each financial year of this Agreement.

7.1.2 Within 3-months of the execution of this Agreement, an initial National Projects plan will be agreed by the Commonwealth and Diabetes Australia for the period remaining to 30 June 2007.

7.1.3 Updated as required on agreement between the Commonwealth and Diabetes Australia, the plan will form the basis of an annual review of the performance of the National Projects component of the Scheme to be completed by no later than 31 August each year of this Agreement.

7.2 Roll-out of successful information and education resources developed under the Strategic Development Grant

7.2.1 Funding made available under National Projects may be allocated in instances where a Strategic Development Grant funded activity has resulted in any new or revised product or service which is subsequently approved for national implementation by the Commonwealth and Diabetes Australia.

7.2.2 National Project funds will ensure that the cost of new product or service provision, or cost difference in the case of an existing product or service revised, can be supported for the first 12-months without impacting on existing Scheme services.

7.2.3 Following the initial 12-months funded under National Projects and agreement of the Commonwealth and Diabetes Australia, the new or revised nationally consistent Product or Service will be considered an ongoing Scheme Registrant service, as indicated under Schedule 5 of this Agreement and provided under the Registrant Services funding pool.

7.3 Marketing and promotion of the Scheme to key external stakeholders to increase awareness and recognition and in support of the scheme objectives stated under Schedule 1.

7.3.1 Scheme awareness and recognition is a key factor in ensuring that the service is effectively utilised and accessible by all eligible persons. Scheme Registrants should be able to recognise Scheme locations and key activities, while health professionals should be encouraged to consider its benefits for their patients/clients.

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7.3.2 Diabetes Australia must develop an initial marketing and promotion plan for the Scheme within 6months of the execution of this Agreement. The focus of this plan will be the awareness and recognition of the Scheme to key external stakeholders.

7.3.3 The marketing and promotion plan will form part of the overall National Projects plan and may include but is not limited to:

(a) ongoing communication with existing Registrants and key health professional groups with particular emphasis on General Practitioners and Practice Nurses; and

(b) an annual program of trade display at select national conferences related to diabetes.

7.3.4 Subject to annual agreement of the Scheme marketing and promotion plan between the Commonwealth and Diabetes Australia, implementation will be funded under National Projects.

7.3.5 An annual report against the Marketing and Promotion Plan will be provided as part of the Annual Report outlined at 11.5.

7.4 Implementation of the Scheme brand

7.4.1 Under the 2001-06 Scheme Agreement, the Strategic Development Grant funded an ‘NDSS Brand Enhancement Project’ - requirements for the application of the Scheme brand are detailed at Annexure 2 and specific advice provided in the Scheme Brand Guidelines.

7.4.3 Funding will be provided under National Projects to enable Diabetes Australia to ensure that within 12-months of the commencement of this Agreement:

(a) all existing Scheme material is revised to incorporate the Scheme brand which complies with the Scheme Brand Guidelines; and

(b) procedures are introduced which ensure ongoing compliance by Agents in the application of the Scheme brand.

7.5 National Project Reports

7.5.1 Diabetes Australia is required to provide the Department with a National Projects Report on an annual basis.

7.5.2 Each report must contain the following information, which can be submitted as part of the Annual Report outlined at Schedule 11:

(a) a copy of the National Projects plan up to 30 June of the reporting period;

(b) number of National Projects undertaken for the year;

(c) outline of projects that will be rolled out across the Scheme on a national basis;

(d) copies of any resources or materials developed and distributed to Scheme Registrants during the period covered by the report; and

(e) any other matters deemed relevant as agreed by the Department and Diabetes Australia.

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SCHEDULE 8 – INFORMATION TECHNOLOGY FUNDING

8.1 The Australian Government and Diabetes Australia recognise that the information technology system supporting the Scheme will need to be maintained, developed and enhanced during the life of this Agreement so that it remains effective, efficient and appropriate to the demands of the Scheme.

8.2 Diabetes Australia will in the first 6 months undertake a review of the information processing requirements of the Scheme for the period of this Agreement and plan for the implementation of any upgrades, supplementation or replacement of hardware and software initially required to ensure an efficient system.

8.3 A strategic plan for information technology will be maintained throughout the period of the Agreement and the system will be continuously developed in line with this plan as necessary.

8.4 Funding for this purpose is set at $4,205,063 for the life of this Agreement, nominally allocated evenly over the 5 years of this Agreement, but which may be spread throughout the period as required.

8.5 Information Technology Reports

8.5.1 Diabetes Australia is required to provide the Department with Information Technology reports on an annual basis.

8.5.2 Each report must contain the following, which can be submitted as part of the Annual Report outlined at Schedule 11:

(a) a copy of progress to date in line with Information Technology developments;

(b) summary of the strategic plan and any changes made to this plan; and

(c) annual costs attributed to Information Technology developments over the life of the Scheme.

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SCHEDULE 9 – REVIEW OF SCHEME EFFICIENCIES

9.1.1 The Australian Government will undertake an evaluation of the effectiveness of Diabetes Australia delivery mechanisms and supply-chain arrangements in each State and Territory, to enable people with diabetes to access Products

9.1.2 This process must commence within six months of the execution of this Agreement and be completed by an independent evaluator.

9.1.3 An independent evaluator will be commissioned to benchmark and compare the costs incurred by Diabetes Australia in administering the delivery of products against other comparable systems.

9.1.4 A review Steering Committee will be formed, chaired by the Department, involving relevant stakeholders as agreed between the Department and Diabetes Australia including where possible, but not limited to:

(a) Diabetes Australia ;

(b) Agents;

(c) Sub-agents;

(d) manufacturers and wholesalers; and

(e) Registrants.

9.1.5 The Steering Committee will select a third party to undertake the review and manage the conduct of the review. This will be carried out in accordance with Commonwealth Procurement Guidelines.

9.2 OBJECTIVES OF THE REVIEW

9.2.1 The objectives of the review are to:

(a) determine the extent to which Diabetes Australia has administered the Product Purchase and Supply, distribution and warehouse management of products in accordance with efficient business management ;

(b) determine whether the Scheme’s service delivery aspects meets the relevant policy requirements of the Commonwealth, and whether Diabetes Australia’s distribution, and warehouse management of Products is the most appropriate, effective and efficient form of delivering relevant Products and services to Agents, Sub-agents and Registrants.

9.2.2 It is acknowledged by the Commonwealth and Diabetes Australia, that it is expected that the review should be able to mainly complete its task through:

(a) analysis of existing policy, financial and operational documents;

(b) analysis of data generated by the Scheme;

(c) discussions with relevant interested parties;

(d) analysis of product distribution management across each State and Territory; and

(e) the effects of the Sub-agent Connectivity roll-out impacting on product distribution management in each State and Territory.

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9.3 TIMEFRAME

9.3.1 The review will be undertaken over a period of no more than six months and not cost (including Steering Committee administration costs) more than $200,000. The Review will be funded from the Strategic Development Fund.

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SCHEDULE 10 – Administrative Matters

1. Commonwealth Contact Officer

The Commonwealth Contact Officer will be the person for the time-being holding, occupying or performing the duties of:

Director Special Access and Analysis Section

Department of Health and Ageing MPD 38 GPO Box 9848 CANBERRA ACT 2601 Telephone : 02 6289 7307 Facsimile : 02 6289 8641 Email : bruce.griffin@health.gov.au The current occupant is Mr Bruce Griffin.

2. Diabetes Australia Contact Officer

Director National Diabetes Services Scheme

3. Existing Material

None specified

4. Scheme Material

All reports and associated Material.

5. Scheme Period

This Agreement will commence upon its execution by the Commonwealth and will terminate on 30 June 2011

6. Insurance

Diabetes Australia must have the following levels of insurance and indemnity coverage in place for this project assignment:

(a) Workers Compensation insurance for an amount required by the relevant State or Territory legislation;

(b) Public Liability insurance for an amount of not less than ten (10) million dollars ($10,000,000.00); and

(c) Professional Indemnity insurance for an amount of not less than ten (10) million dollars ($10,000,000.00).

7. Compliance with Policies

None specified

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8. Addresses for Notices

The Commonwealth’s address for notices is:

MDP 38 GPO Box 9848 CANBERRA CITY ACT 2601

Diabetes Australia’s address for notices is: GPO Box 3156 CANBERRA CITY ACT 2601

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SCHEDULE 11 – SCHEME REPORTING REQUIREMENTS

Diabetes Australia is required to provide, in conjunction with the annual Financial Statements set out at clause 9 of the Agreement, the following items in a progress report against the objectives of the Scheme. In accordance with the annual Financial Statements, this report should be submitted by 30 September of each year of the Agreement or within 60 days of earlier termination of the Agreement.

A Final Report addressing this reporting criteria will also be submitted at the end of the Agreement.

11.1 FINANCIAL REPORTING

11.1.1 Diabetes Australia must provide the Reports as specified in clause 9 of the Agreement.

11.1.2 In addition, the following financial information is also required:

(a) Funds on hand at the beginning of the reporting period;

(b) expenditure on Product during the reporting period;

(c) expenditure of the Product Supply and Delivery Grant during the reporting period;

(d) expenditure of the Registrant Services Grant during the reporting period;

(e) expenditure of the Strategic Development Grant during the reporting period;

(f) expenditure on National Projects during the reporting period;

(g) expenditure on Information Technology Projects during the reporting period;

(h) Patient Contributions received during the reporting period;

(i) Funds received during the reporting period;

(j) Funds on hand at the end of the reporting period; and

(k) carry-over into next reporting period.

11.2 PRODUCT SUPPLY REPORTS (SCHEDULE 3)

11.2.1 Diabetes Australia is required to provide the Department with reports on Product Supply records on an annual basis.

11.2.2 Each report must contain the following information:

(a) quantity of Product supplied to Registrants, by Units of Product, for each item covered by the Scheme, including Blood Glucose Test Strips, Urine testing strips, Sharps – consisting pen needles and syringes, and Insulin pump consumables (lines, adaptors and reservoirs); the ex-manufacturer cost of those Products; the value of remuneration to Diabetes Australia paid in accordance with Schedule 2 of this Agreement; Registrant Contributions collected in respect of those Products as described at clauses 2.2 and 2.3; and cost to Government;

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(b) level of product ordering by postcode;

(c) the number of Diabetes Australia Agent Outlets by postcode and per postcode population;

(d) the proportion of Products supplied directly, by mail or by courier, over the counter, broken down Agent Outlets, and nationally and by State and Territory; and

(e) the number of occasions complaints were received in regards to not receiving Product as specified in 3.5.4 (b).

11.3 SCHEME ACCESS REPORTS (SCHEDULE 4).

11.3.1 Diabetes Australia must provide the Department with reports on its access arrangements on an annual basis.

11.3.2 Each report must contain the following:

(a) number of Agents or Diabetes Australia shop-fronts located in each State / Territory;

(b) number of Sub-agents located in the State / Territory;

(c) PhAria rating of each Outlet;

(d) annual review of Sub-agent activity in each State / Territory;

(e) annual review of Sub-agent expansion in each State / Territory, including:

(i) number of Sub-Agency advertisements each reporting period;

(ii) number of sub-agency applications received (including type – pharmacy, non pharmacy) each reporting period;

(iii) number of successful sub-agency applications;

(iv) number of unsuccessful sub-agency applications and why; and

(v) number of appeals lodged regarding unsuccessful sub-agency applications;

(f) summary of performance against required reviews/objectives specific to clause 4.7;

(g) status of Sub-agent Connectivity rollout and a report on the effectiveness of the system;

(h) the number of Sub-Agency applicants over the reporting period in each State/Territory; and

(i) any other matters considered relevant including areas of concern or areas of continuous improvement.

11.4 REGISTRANT SERVICES REPORTS (SCHEDULE 5)

11.4.1 Diabetes Australia must provide the Department with reports on its provision of Registrant Services arrangements on an annual basis against the annual element of the Registrant Services Plan outlined in 5.8.

11.4.2 Each report must contain the following:

(a) number of Registrants, broken down into:

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(i) national and by State/Territory;

(ii) Type 1, Type 2 insulin requiring and non-insulin requiring, GDM insulin requiring and non-insulin using, other diabetes insulin requiring and non-insulin requiring and total Registrants (GDM split to be provided after the first six months of the Agreement);

(iii) by relevant age categories and by diabetes type;

(iv) new registrant trend compared to previous years;

(v) number of registrants who ordered Product within the previous 3, 6 and 12 months, by type as set out in (ii);

(b) number of occasions on which information materials were supplied to or accessed by Registrants or other persons, including:

(i) printed materials (including number of Starter Packs issued), on a State and Territory breakdown;

(ii) number of calls to Scheme Registrant 1300 help line on a State and Territory breakdown;

(iii) number of hits to the Scheme website;

(c) number and proportion of items of information material distributed:

(i) to indigenous Australian Registrants identifiable from the database, or their healthcare providers;

(ii) in languages other than English; and

(d) numbers of Registrants who have had access to programs and information developed under the Strategic Development Grant program that have been distributed as part of National Projects or have been rolled into Registrant services in the reporting year.

11.5 STRATEGIC DEVELOPMENT REPORTS (SCHEDULE 6)

11.5.1 Diabetes Australia is required to provide Strategic Development Grant program reports on an annual basis.

11.5.2 Each report must contain the following:

(a) number of Strategic Development Projects for the year;

(b) number of projects completed for the year;

(c) outline of projects that will be rolled out across the Scheme on a national basis;

(d) copies of any resources or materials developed and distributed to Scheme registrants during the period covered by the report;

(e) any other matters deemed relevant.

11.6 National Project Reports (SCHEDULE 7) 11.6.1 Diabetes Australia is required to provide the Department with a National

Projects Report on an annual basis.

11.6.2 Each report must contain the following information:

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(a) a copy of the National Projects plan up to 30 June of the reporting period;

(b) number of National Projects undertaken for the year;

(c) outline of projects that will be rolled out across the Scheme on a national basis;

(d) copies of any resources or materials developed and distributed to Scheme Registrants during the period covered by the report; and

(e) any other matters deemed relevant as agreed by the Department and Diabetes Australia.

11.7 INFORMATION TECHNOLOGY REPORT (SCHEDULE 8)

11.7.1 Diabetes Australia is required to provide the Department with Information Technology reports on an annual basis.

11.7.2 Each report must contain the following:

(a) a copy of progress to date in line with Information Technology developments;

(b) summary of the strategic plan and any changes made to this plan; and

(c) annual costs attributed to Information Technology developments over the life of the Scheme.

11.8 SCHEME KPI WEBSITE REPORTING REQUIREMENTS

11.8.1 In addition to the reporting requirements above, Diabetes Australia will maintain its KPI website, undertaking to upload new information on a monthly basis for the following categories:

11.8.2 COST OF THE SCHEME

(a) the ex-manufacturer cost of Products on the Scheme;

(b) the value of remuneration to Diabetes Australia paid in accordance with Schedule 2 of this Agreement;

(c) Registrant Contributions collected in respect of those Products; and

(d) cost to Government.

11.8.3 PRODUCT

(a) quantity of Product supplied to Registrants, by Unit of Product, for each item covered by the Scheme, including blood and urine diagnostic agents, syringes, needles and insulin pump consumables;

(b) the proportion of Products supplied directly, by mail or by courier, over the counter, broken down by Sub-agents and Diabetes Australia Agent Outlets, and nationally and by State and Territory; and

(c) the number of Diabetes Australia Agent Outlets and Sub-agents by postcode and per population.

11.8.4 REGISTRANTS

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(a) number of Registrants, broken down into:

(i) national and by State/Territory;

(ii) Type 2 insulin using and non-insulin using, Type 1, GDM insulin using and non-insulin using and total Registrants (GDM split to be provided after the first six months of the Agreement), number of Registrants who utilise an insulin pump, number of Registrants who have indigenous status, number of registrants with a language other than English spoken at home;

(iii) age range as presently exist on website;

(b) inactive and current Registrations;

(c) number of registrants who ordered Product within the previous12 months, by type (1 and 2 only) as set out in (ii); and

(d) percentage of Registrants who purchase Product.

11.8.5 EXPANSION OF WEBSITE CAPABILITIES

Diabetes Australia must also provide information on the website (on an annual basis for each financial year) for the following categories:

(a) number of Product groups sold by postcode;

(b) number of Units of Product (in PBS quantities) sold by postcode;

(c) number of Units of Product (in PBS quantities) sold by process order (not over the counter) by destination postcode; and

(d) number of Units of Product (in PBS quantities) sold by age range.