Governance and accountability

Good grants administration is underpinned by solid governance structures and clear accountabilities. Ministers, officials, agencies and grantees should all be accountable for their roles in grants administration. Accountability in grants administration is relevant both to the process of grants administration, and the achievement of government outcomes.

Officials should develop policies, procedures and documentation necessary for the effective and efficient governance and accountability of grants administration. This should include the development of grant guidelines and associated operational guidance for administering grant activities. It is particularly important that such guidance clearly sets out who is responsible for different aspects of the grants process, including those responsible for making recommendations and the designated decision-maker.

It is important to ensure that those with responsibilities in relation to a grant have the right experience and skills. For example, officials involved in developing and/or managing grants should have the necessary grants management, stakeholder liaison and financial management skills, while officials involved in assessing applications should be appropriately skilled and have access to procedural instructions and/or training before processing grant applications. Additionally, external subject matter experts may be able to provide valuable expertise, including as part of the assessment team. 

Record keeping is a key component of good governance and accountability. Good record keeping supports better decision-making. For example:

• officials are better able to assess risks where they have records about previous and current grantees and their performance 
• documented reasons for decisions in awarding or not awarding grants supports equitable grants assessment, particularly when selection processes are conducted over an extended period of time.

Ministers, Ministerial staff and officials must comply with their record keeping obligations under the SR Act.

Officials should ensure that grant agreements are well drafted, easy to understand and fit for purpose, as this will contribute to good governance and accountability. Officials should also ensure that grant agreements are supported by ongoing communication, active grants management and performance monitoring requirements, which are proportional to the risks involved.