Reporting Failure Adjustments

3.9  If it is agreed between the Authority and the Service Provider, or determined in accordance with Schedule 19 (Dispute Resolution Procedure) that there has been a [Reporting Failure] in relation to the Monthly Service Payment in respect of a Month which is not corrected by the Service Provider prior to the Service Provider's receipt of the Monthly Service Payment in respect of that Month, the Authority shall make the deduction which is the subject of the [Reporting Failure] and, in addition, a Reporting Failure Adjustment of a sum equal to [50]% of the deduction that is the subject of the Reporting Failure Adjustment.

3.10  Should the Authority and Service Provider disagree over whether a [Reporting Failure] has occurred under paragraph 3.9, then the Authority's decision shall prevail for the purposes of calculating Reporting Failure Adjustments under this Schedule 21 (Payment Mechanism). The Service Provider may refer the matter to the dispute resolution procedure under Schedule 15 (Dispute Resolution Procedure).

3.11  All Reporting Failure Adjustments made by the Authority in accordance with paragraph 3.9 of this Schedule 21 (Payment Mechanism) shall be made from the next Monthly Service Payment to be paid to the Service Provider after such Reporting Failure Adjustment is agreed or determined in accordance with paragraph 3.9 of this Schedule 19 (Payment Mechanism).  Such deductions shall be deemed to be made in respect of the Month in which they are so deducted.

3.12  If it is agreed or determined that there has been a [Reporting Failure] in calculating the Monthly Service Payment in respect of a Month which is corrected by the Service Provider prior to payment of the Monthly Service Payment in respect of that Month, no Reporting Failure Adjustment shall apply.