11Achieving Value with Public Money

11 Achieving Value with Public Money

11.1 Achieving value with public money should be a prime consideration in all phases of grants administration. Grants administration should provide value, as should the grant recipients in delivering projects/tasks/services funded by the grant. This requires the careful comparison of the costs and benefits of feasible options in all phases of grants administration, particularly when planning and designing grants processes and when selecting grants recipients. It is also a means by which agency staff can assure the agency Chief Executive, Ministers and the Parliament that resources are deployed in an efficient, effective, economical and ethical manner, while not imposing overly burdensome requirements on grants recipients.

11.2 Agency staff achieve value with public money in grants administration by:

 considering and promoting proper use of Commonwealth resources (proper use means efficient, effective, economical and ethical use that is not inconsistent with Commonwealth policies);

 working with stakeholders when appropriate to develop or modify granting activities. Stakeholder input can aid in improving the efficiency of the design and delivery of granting activities;

 using processes, procedures and requirements that are proportional to the risks and nature of granting activities. For intellectual property rights resulting from activities undertaken with grant money, agencies should not generally assert ownership, but should consider a licence for Commonwealth purposes, for example, reporting to Ministers;

 adopting an active risk identification and engagement approach focused on minimising potential adverse impacts and maximising opportunities, through identifying and treating risks;

 responding to change. Agency staff should establish flexible processes so as to be able to respond quickly to changing government priorities;

 effective program design and selection processes. The objective of the appraisal process is to select projects/activities that best represent value with public money in the context of the objectives and outcomes of the granting activity (including grant programs). A fundamental appraisal criterion is that a grant should add value by achieving something worthwhile that would not occur without the grant; and

 ongoing monitoring and management. The establishment of on-going monitoring and management arrangements throughout the life of the grant should enable the granting agency to assure that granting activities are proceeding as planned and that grant money is being appropriately applied.

11.3 Grant recipients contribute to achieving value with public money by:

 considering how best to deliver the goods or services to target groups or individuals. This may involve using existing processes and technologies or professional standards, or it may involve innovation and performance improvement by the grant recipient or agency staff;