Robust planning and design

Effective planning and design facilitates fair, effective and transparent grants administration. It helps ensure that grants meet identified needs and deliver value for money. Planning and implementation issues should be considered before commencing a grant opportunity. The specific issues to be addressed will depend on the grant, including its complexity and scale.

Grant planning is also about being strategic in establishing the grant and having regard to activity across the government sector in identifying a particular need that could be met through a grant. Officials should make use of all available information and existing evidence in devising and implementing grants, including through collaboration and partnership.

Officials should have regard to whether a grant is the best vehicle to achieve the intended policy objectives. This involves developing a range of feasible options that would meet the intended  objectives. For instance, it may be more effective, in certain circumstances, to provide a direct service or commission a contracted service rather than establish a grant.

If a grant is the appropriate mechanism, officials should then consider different options for the design of the grant to determine the best approach for achieving the objectives.

Planning a grant should include having regard to: 

• the rationale for the grant initiative and how the grant initiative will meet government objectives, including expected outcomes and benefits and how to measure these
• the potential for co-design with prospective grantees and/or other stakeholders to best meet identified needs
• the expected costs and benefits of the grant initiative and the risks and sensitivities associated with these
• any taxation or accounting treatments required in respect of the grant
• commercial considerations, including  consideration of an appropriate funding strategy and grant agreement
• management issues, including:
  • the approach to engaging and communicating effectively with stakeholders
  • risk identification and management
  • accountability, probity and transparency in administering the grant
  • appropriate application and selection processes to be used
  • the role of decision-makers
  • appropriate performance measures
  • monitoring and evaluation (which may be under a benefits realisation planning framework)
  • appropriate documentation, including guidelines and application information
  • applicable legal, policy and governance requirements (see 1.4 Legislative and policy framework), such as the GSF Act and NSW Government appraisal and evaluation policies (see 6.1 and 6.7)

Once the parameters of a grant have been established, officials should consider the risks associated with the grant opportunity. This entails identifying the risks that may arise and taking steps to avoid or mitigate those risks. This should be built into the grants process.

Risk management activities will vary depending on the grant. Some risks can be appropriately mitigated or managed through the grant agreement, while other risks are better managed across the grant life cycle. Administration processes should be proportionate to the scale and risk profile of the grant. Specific mandatory requirements regarding risk management are outlined further below at 6.1 Planning and designing the grant opportunity.

Officials should ensure that the party who is best placed to manage a specific risk is identified and tasked with managing that risk. In a jointly funded or delivered grant opportunity, it may be appropriate to share the responsibility for some risks. Active risk management should occur throughout the grant life cycle.

See 6.1 Planning and designing the grant opportunity for information on how to plan and design a grant and specific policy requirements.