The Conservatorium Mid North Coast (CMNC) is set to receive money owed from the Department of Education.
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The payment owed to the CMNC amounts to $160,000 and has been outstanding for nearly three months.
In January the CMNC chairperson Brian Corrigan told Port News the organisation may not be able to open its doors due to a lack of funding from the department.
On February 9 the CMNC board met with representatives from the department and the Local Member for Port Macquarie to discuss funding.
Mr Corrigan said at the meeting a representative from the department agreed to pay the money owed to CMNC by February 28.
The funding is for services provided by CMNC to the Mid North Coast community between July and December 2016 under the Regional Conservatorium Grants Program.
Mr Corrigan said the CMNC board thanked the Local Member for Port Macquarie Leslie Williams for her support and the representative from the Department of Education for the commitment to honour the agreement.
The CMNC board released a statement and said it would continue to make every effort to minimise the effects of the delayed payment for its clients, students and residents of Port Macquarie, Taree, Forster, Gloucester and Kempsey.