For some time the Government has been concerned about how best to manage the provision of grants to community and non-government agencies. You will recall that the NSW Commission of Audit raised several concerns about the lack of appropriate accountability and monitoring mechanisms for recipients of community grants.

Apart from internal monitoring mechanisms, the Government has also been concerned about the lack of standardised reporting of grants and subsequent accountability to the public. Similarly, there is a lack of readily available summary information to assist in ensuring that funds are allocated to identified priority areas.

Accordingly, the Premier requested the Office of Public Management to consider a range of options for improving the management of grants and subsidies to community organisations. The Premier has now approved the recommendations of the OPM report, and all Government Departments and Authorities are to adhere to the recording and reporting procedures outlined in this memorandum.

As from and including the 1991/92 financial year all Government Departments and Authorities will be required to publish details of the grants they disburse to nongovernment organisations in their Annual Reports. A copy of the amending regulation together with a suggested reporting example will be provided as soon as possible. The following details will be required to be disclosed in the Annual Report:

• Program Area (As per Budget Paper No. 3)
• Program (As per Budget Paper No. 3)
• Name of the Organisation
• Nature and Purpose of the Project receiving the grant
• Amount of the grant

The nature and purpose of the project classification should clearly identify the aims of the project and the target group of clients benefiting from the grant. Summary information obtained from this reporting mechanism will allow Ministers to identify clearly where funds are being disbursed and to which client groups, and so determine if Government and agency priority areas are being adequately targeted.

R G Humphry

Director-General