4Grants-specific process requirements

4 Grants-specific process requirements

4.1 In addition to the requirements in the FMA Act and FMA Regulations, other grants-specific requirements apply to Ministers, Chief Executives and agency staff.

Requirements for Ministers

4.2 Where a Minister exercises the role of an approver[38] under FMA Regulation 9 in relation to a grant or group of grants, the Minister must not approve the grant without first receiving written advice from agency staff on the merits of the proposed grant or group of grants. That advice must meet the requirements of the CGGs (see paragraph 4.6). [39]

4.3 Ministers may approve grants within their own electorate.

a. Where a Minister (including a Parliamentary Secretary) exercises the role of approver (that is a FMA Regulation 9 decision-maker) for grants awarded in his/her own electorate, the Minister must write to the Finance Minister advising of the details.

b. Where there is correspondence to the relevant grant recipient, a copy of this letter is sufficient, except in the circumstances outlined in paragraph 4.4(b). If there is no correspondence, Ministers must write to the Finance Minister advising of the decision as soon as practicable after it is made.

c. There are two circumstances where grants awarded in a Minister’s own electorate do not need to be reported.

i Senators do not need to report on grants they decide to award in their own state or territory; or

ii Where grants are awarded state-wide, Australia-wide or across a region on the basis of a formula [40] by a Minister, and any of these grants falls in the relevant Minister’s electorate, the Minister does not need to report to the Finance Minister.

4.4 Ministers may approve grants that are not recommended by the relevant agency staff.

a. Ministers (including Senators) must report annually to the Finance Minister on all instances where they have decided to approve a particular grant which the relevant agency staff member has recommended be rejected. The report must include a brief statement of reasons (i.e. the basis of the approval for each grant). The report must be provided to the Finance Minister by 31 March each year for the preceding calendar year.[41]

b. If a decision relates to a Minister’s own electorate (House of Representatives members only), the Minister must also include this information when writing to the Finance Minister in the context of the process outlined in paragraph 4.3.

Requirements for Agency Staff

4.5 Agency staff must:

a. advise the relevant Minister on the relevant requirements of the FMA Act and Regulations and the CGGs, where a Minister exercises the role of an approver;