7Robust Planning and Design

7 Robust Planning and Design

7.1 High quality planning underpins efficient, effective, economical and ethical grants administration.

7.2 Agency staff should work together with stakeholders to plan, design and undertake granting activities, particularly grants programs.

 Potential grant recipients and beneficiaries will likely have valuable insights into how best to design and implement the proposed granting activity and will assist to ensure outcomes are appropriately aligned to public needs.

7.3 Grants administration processes should be proportional to the scale and risk profile of the granting activity. Agency staff should consider that granting activities affect not only the Commonwealth and grant recipients, but also impact on the beneficiaries of a grant.

7.4 Agency staff should address all relevant planning issues before granting activities commence. These issues should be built into the design of any granting activities.

 The specific issues to be addressed will depend on the nature of the granting activities. A complex granting activity may, for example, require a different approach to a grant made on a one-off or ad hoc basis.

7.5 Agency staff should have regard to all relevant planning issues, including the need to:[57]

 establish a rationale for the granting activity, particularly what outcomes are expected and how these will be measured;

 define the operational objectives for the granting activity;

 communicate effectively with potential recipients and key stakeholders;

 undertake risk identification and engagement;

 design the granting activity to achieve value with public money;

 ensure that eligibility criteria reflect the policy intent;

 clearly identify decision makers and their roles;

 design the granting activity for accountability, probity and transparency;

 carefully consider the application and selection process to be used;

 establish performance and evaluation measures;

 select an appropriate funding strategy and grant agreement;

 consider taxation matters and seek advice where appropriate;

 consider the Australian Government’s accounting treatment;

 develop appropriate documentation, such as grant guidelines and application information;

 consider legal and policy matters; and

 implement robust governance arrangements.

7.6 Risk is part of the environment in which government operates. Understanding, accepting and managing risk is part of everyday decision making within government. Chief Executives should develop a positive risk culture within their agencies, supported by appropriate frameworks and processes. A key element of planning and designing a granting activity is to identify and engage with risk. Agency staff should be conscious of the risks of a granting activity, make informed decisions in managing these risks and identify and harness potential opportunities.