2Scope and Objectives

2 Scope and Objectives

Objectives of grants administration

2.1 The objective of grants administration is to promote proper use of Commonwealth resources through collaboration with the non-government sector to achieve government policy outcomes.

2.2 This objective is supported by:

a. the legislative, policy and reporting framework for grants administration set out in Part 1 of the CGGs;

b. the seven key principles for better practice grants administration, discussed in Part 2 of the CGGs: robust planning and design; collaboration and partnership; proportionality; an outcomes orientation; achieving value with public money; governance and accountability; and probity and transparency; and

c. agency specific grants administration practices.

Scope of the CGGs

2.3 Granting activities can take a variety of forms, including payments made: as a result of competitive or non-competitive selection processes; where particular criteria are satisfied; or on a one-off or ad hoc basis.[5] The CGGs apply to all forms of granting activity.

2.4 Agency staff must establish and document whether a proposed activity is a grant prior to applying the Commonwealth grants policy framework.

2.5 FMA Regulation 3A(1) defines a “grant” as an arrangement for the provision of financial assistance by the Commonwealth:

a. under which public money[6] is to be paid to a recipient[7] other than the Commonwealth; and

b. which is intended to assist the recipient achieve its goals; and

c. which is intended to help address one or more of the Australian Government’s policy objectives;[8] and

d. under which the recipient may be required to act in accordance with specified terms or conditions.[9]

2.6 Grants administration encompasses all processes involved in granting activities, and includes:

a. planning and design;

b. selection and decision-making;

c. the making of a grant;

d. the management of grant agreements;

e. the ongoing relationship with grants recipients;

f. reporting; and

g. review and evaluation.

2.7 The CGGs apply to grants administration performed by:

a. Ministers;

b. Chief Executives;

c. agency staff; and

d. other bodies or third parties who are responsible for grants administration on behalf of an FMA Act agency.[10]

2.8 In some circumstances, agency staff will include members of expert committees or advisory panels, where those members provide advice or recommendations to the approver. Where the advice provided by the committee or panel members directly informs a decision about expenditure (for example, where the committee assesses applicants against particular criteria, or recommends supporting particular projects or distributing funds to particular applicants), committee or panel members should be treated as agency staff for the purposes of the CGGs. On the other hand, where advice provided by a committee or panel members is general and unrelated to any specific applicant, activity or project, committee or panel members are not agency staff and are not subject to the CGGs.