Keypoints

The Good Practice Guide to Grants Administration provides grants program managers with resources and guidance for managing the grants cycle. It has been updated to reflect recommendations of the Audit Office’s Performance Audit on Grants Administration and the Non-Government Organisation Red Tape Reduction report.

In light of the Audit report, departments should review their programs to:

• manage risk and streamline procedures to the minimum needed to ensure accountability and value for money

• improve transparency by publishing a rolling calendar of grants, procedures for making grant decisions, reasons for any variations from normal procedures in the granting or refusal of grants, and evaluation of what grant programs achieved and how the distribution of funds has supported government objectives

• set up timely monitoring systems, tie payment to clear performance measures and require the recipient to establish internal controls

• consider using web technology to streamline applications and administration

• reduce red-tape by using standard terminology when dealing with grant recipients, set targets to better manage the time taken to process grants, and consider harmonising requirements such as audit thresholds across different grant programs

• regularly evaluate programs and publish the results.

The Non-Government Organisation Red Tape Reduction report sets out a series of reforms that will be implemented by the Department of Human Services and NSW Health throughout 2010. Other departments may find the recommendations useful when reviewing their grants programs.

In light of the recent agency amalgamations, departments should consider consolidating administration of grants programs where this would improve expertise in grants administration, provide better economies of scale, reduce red tape, or improve program outcomes.

Further information can be found in the Good Practice Guide to Grants Administration, the Performance Audit on Grants Administration and the Non-Government Organisation Red Tape Reduction.

Chris Raper
A/Director General