A Department of Families, Housing, Community Services and Indigenous Affairs spokesman told the Mail-Times late on Friday that it was the responsibility of Karkana and its directors to appoint an administrator.

``The Federal Government has been providing ongoing support to Karkana during the past 12 months to assist with its difficult financial situation and to pursue options to continue operating,'' the spokesman said.

``The decision to go into voluntary administration was made by the board of Karkana on June 29, following the decision of its members not to merge with The Wool Factory. The appointment of an administrator is the responsibility of Karkana and its directors.

``The Federal Government is committed to pursuing the continued employment assistance and the achievement of a good outcome for the supported employees of Karkana and will work with the community to achieve this.''

Karkana members voted against a board plan to merge the service with The Wool Factory on June 29.

Karkana board then recommended the service go into voluntary administration.

The board asked the state and federal governments, which fund the service, to appoint an administrator.

Karkana chairman Jeff Rigby said he was yet to receive formal advice from either government.

``We're seeking to establish that as soon as possible so the people associated with Karkana and the community can be informed on the immediate next steps to be taken,'' Mr Rigby said.

Member for Lowan Hugh Delahunty said an administrator must be appointed quickly to work with Karkana members and the community.

``My fear is if we don't get a good administrator who works for the community and clients we'll end up with an outcome we're not happy with,'' he said.