Novation process

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Task card 16

What is a novation?

A novation is the process whereby the rights and obligations of a current grant recipient under their grant agreement are transferred to another legal entity.

Common terms explained:

TERM DESCRIPTION
Retiring The organisation that is transitioning their grant agreements and the roles and obligations associated with these.
Substitute The organisation that is taking on the grant agreements and the roles and obligations associated with these.

Before commencing a novation

Before commencing a novation, the following information will need to be considered:

  • All outlets must be entered into the Data Exchange by the retiring organisation prior to the Organisation Activity End Date. Where the Activity End Date has passed, the organisation can no longer enter outlets, even within the 30 day data finalisation period or data quality month.
  • For novation’s taking effect at the end of a reporting period, it is recommended that some, or all, providers retain access to the retiring organisation for an additional 30 days to make the most of the 30 day data finalisation period.
The retiring legal entities ABN must remain active while the organisation intends to enter data against the ending activities for the organisation in the Data Exchange. If the ABN is inactivated, the provider will be unable to access their AUSkey, which will prevent access to DEX and the ability to enter any required data.
  • The Department is unable to migrate or create any data on behalf of the organisation. Any continuing outlets and client records from the retiring organisation will need to be re-entered or re-uploaded against the substitute organisation as required.
  • Any case and session data entered against the retiring organisation should not be re-entered against the substitute organisation. Only case and session data relating to the substitute entity and occurring after the activity start date for this entity should be reported on.
  • If any of the retiring organisations use system to system web services to upload information to the Data Exchange, and will continue to do so against the substitute organisation, a new system account will need to be requested by the retiring organisation before they are able to enter data against the substitute organisation.
  • The Program Activity being end dated for the retiring organisation will not impact the provider’s ability to finalise data in the Data Exchange. A nightly batch job is run to update the Organisation Activity dates in the Data Exchange to match the grant agreement. Data entry until the end date will still be possible until the end of this reporting period.
  • If the substitute organisation is a Lead organisation, they will need to re-create delivery partners in the Data Exchange once the novation has been completed. Therefore it is recommended that the retiring organisation note which delivery partner is associated with which program activity. (Once the novation has been processed the substitute organisation will need to communicate the change to reporting to their delivery partners.)

Processing a novation

Once the below steps are complete, access cannot be reverted. These steps should only be undertaken by staff no longer requiring access to the retiring organisation’s information in the Data Exchange.Providers should generate any standard reports for the retiring organisation prior to migration as they will no longer have access to reports once user accounts have been moved.

Step 1

Confirm with the Australian Business Register website (https://abr.gov.au/) at “What type of AUSkey is right for you”, that the current AUSkey is sufficient or if a new AUSkey is required.

If your organisation retains its Australian Business Number (ABN) but changes its Legal Name, there is no need to get a new AUSkey. An AUSkey does not have a connection to the Legal Name of the entity; it has a connection to the ABN of that entity. Please keep in mind the time required to obtain a new AUSkey.

You can have multiple AUSkeys using the same email address.

Step 2

Contact the Data Exchange Helpdesk dssdataexchange.helpdesk@dss.gov.au to have the link between your old AUSkey and your Data Exchange account broken. Please keep in mind that it can take up to 10 working days to have this step completed.

Step 3

Are the organisation(s) receiving new email addresses as part of the novation?

Yes
  • The Grant Agreement Manager (after receiving a request from the organisation’s CEO) can submit an email request to the Helpdesk to move all users to the substitute organisation record and state their new email addresses; otherwise, all users will need to complete a DEX System User access request form stating their new email address and organisation details.
  • The Data Exchange Helpdesk will modify user accounts and move the user to the substitute organisation record.
No
  • The Grant Agreement Manager (after receiving a request from the organisation’s CEO) can submit an email request to Helpdesk to move all users to the substitute organisation record; otherwise, all users will need to complete a DEX System User access request form stating the substitute organisation details.
  • The Data Exchange Helpdesk will move the user to the substitute organisation record.

Step 4

The organisation will need to:

  • Re-create outlets and assign program activities.
  • Re-create any current and continuing client records.
  • Create cases and sessions for any service delivered since the effective date of the novation for the substitute entity.

If you are a lead organisation will need to:

  • Re-create any delivery partners against your organisation in the Data Exchange.
  • Communicate the change to reporting conditions to your delivery partners.

More information on outlets, clients, cases and sessions can be found in the Data Exchange Protocols and the Training resources tab.