1Purpose

1 Purpose

1.1 The Commonwealth Grant Guidelines (CGGs) are issued by the Finance Minister under Section 64 of the Financial Management and Accountability Act 1997 (FMA Act) and Regulation 7A of the Financial Management and Accountability Regulations 1997 (FMA Regulations).[1]

1.2 The CGGs establish the overarching Commonwealth grants policy framework and articulate the expectations for all agencies subject to the FMA Act. Within this overarching framework, agencies develop their own specific grants administration practices based on the mandatory requirements and principles of grants administration in the CGGs.

1.3 Bodies subject to the Commonwealth Authorities and Companies Act 1997 are legally and financially separate from the Commonwealth and are not subject to the CGGs.

1.4 The CGGs contain a small number of requirements that apply to Ministers.[2] These include grants-specific decision-making and reporting requirements, in addition to the legislative requirements that apply where Ministers exercise the role of an approver.[3] Agency staff[4] must advise Ministers of these requirements in a timely manner.

1.5 The CGGs are divided into two parts. Part 1 contains the mandatory requirements. Obligations that must be complied withs are denoted by the use of the term must or mandatory in the CGGs. Part 2 further explains the seven principles of grants administration. The use of the term should in the CGGs denotes better practice.

1.6 The combination of mandatory requirements and better practice guidance in the CGGs provides Chief Executives and agency staff with the flexibility to design and administer granting activities (including grant programs) to meet varying government objectives and to work together with stakeholders, such as the not-for-profit sector, to achieve government policy objectives.