Ratios Financieros

24.1 Clause 17.5 shall apply to any underspends upon termination or expiry or completion of a Partnership Arrangement and the Partners shall make such payments to each other as shall be required to reflect this.

24.2 Clause 17.4 shall apply in respect of any overspend existing at the date and shall be apportioned between the Partners as stated therein.

24.3 The Partners shall act in good faith and in a reasonable manner in reaching agreement on the matters referred to in Clauses 24.1 and 24.2.

25 CONTRACTING

25.1 Where a Service Contract relates to both Health Related Functions and NHS Functions the JCG shall agree which Partner shall enter into that Service Contract.

25.2 All Service Contracts entered into by the Council shall be procured in accordance with the Council's Constitution and all contracts entered into by the CCG shall be procured in accordance with the CCG’s Constitution and in any case all Service Contracts shall be procured in compliance with relevant law including (where relevant) the Procurement Regulations.

25.3 Any Service Contracts to be entered into by a Partner (but only where it is proposed that the Service Contract will exceed the Level of Authority of that Partner) shall be first approved by the other Partner and shall include such terms and conditions for like termination as set out in Clause 25.12 of this Deed and shall be in compliance with the requirements of S.75 of the Procurement Regulations and in particular with Regulation 2 of the same regulations insofar as they relate to the procurement of health services for the purposes of the NHS Functions.

25.4 The Partner who has entered into the relevant Service Contract shall unless otherwise agreed oversee compliance by the Service Providers with the terms and conditions of that Service Contract.

25.5 Each Partner shall co-operate with the other to facilitate the overseeing and monitoring of Service Contracts, and to ensure that the relevant Service Contract is performed in accordance with its terms, which may include visiting and inspecting the Service Providers’ property from where the Services are provided.

Any material breach by a Service Provider of a Service Contract's terms or any irregularity relating to it which comes to the attention of a Partner shall be reported to the other as soon as reasonably practicable after the Partner becomes aware of such breach or irregularity. The Partners shall agree what action shall be undertaken to remedy such breach or irregularity to ensure compliance with the relevant Service Contract and the Partner who is a party to the Service Contract shall where agreed with the other Partner and where duly authorised by the other Partner take such action as has been agreed. Responsibility shall be with the Partner who has entered into the Service Contract for the enforcement of the terms of any Service Contract or on behalf of

the other Partner and to the extent that the Contract and law permits) to the extent that it relates to Services commissioned by it on its own behalf.

25.6 Each Partner shall remain responsible for the performance of its own statutory functions in respect of the Services that are being procured under a Service Contract either on its own behalf or on behalf of the other Partner in accordance with this Deed regardless of which Partner has entered into the Service Contract.

25.7 The Council's Constitution shall apply to all actions undertaken by the Council in pursuant of this agreement including the procuring and commissioning of any of the Services on behalf of the CCG under this Deed.

25.8 The CCG's Constitution shall apply to all actions undertaken by the CCG in pursuance of this agreement including the procuring and commissioning of any of the Services on behalf of the Council under this Deed.

25.9 For the avoidance of doubt neither Partner shall be obliged to enter into any Service Contracts or otherwise carry out any dealings on behalf of the other under this Deed if they believe that:

25.9.1 to do so would be a breach of either the CCG’s Constitution of the Council’s Constitution; or

25.9.2 any proposed Service Contract (including action by the Council or the CCG to enforce or claim a breach of the Service Contract) would constitute an unacceptable and unreasonable high level of financial risk; or

25.9.3 any decision made by a Partner under this Deed was based on incorrect information and that information may have affected the Partner's decision, 25.9.4 and both Partners must act reasonably in such circumstances and in any

such event arising shall inform the other of its intention and permit the other Partner to make representations to it.

25.10 The Partner entering into a Service Contract shall ensure that such Service Contract shall be terminable upon termination of this Deed or termination of any Partnership Schedule to which such Service Contract relates subject always to Clause 38 hereof. 25.11 The Partner entering into a Service Contract shall do so in accordance with the Levels of

25.12 It is recognised by the Partners that each of them may have pre-existing Service Contracts in place prior to the date hereof and which will continue following the date hereof and that arrangements will be put in place to continue monitoring those Service Contracts by the Lead Partner