Dept. of Education > Administrative Services > Finance, Facilities and Business Strategy Branch > Grants

• Overview
• Coverage
• Policy
  • Grant Administration
  • Types of Grants
  • Accountability Requirements of Grant Programs
• References
• Internal Controls / Responsibilities
• Monitoring of Compliance
• Related Topics

This policy outlines the Department’s requirements for the administration of grants, the types of grants the Departments pays, and the accountability requirements for grants.

In the context of this policy, a Grant is defined as any payment to a non-government organisation or individual based on certain conditions imposed by the Department. Grants do not include loans, payments for the provision of goods and services or reimbursement of expenses.

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This policy applies to all staff involved, in the administration and payment of departmental grants.

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Before paying a grant to an organisation or individual, it must first be established that a genuine need for the grant exists. When evaluating whether a genuine need for a grants exists, the Department should consider the costs of the administration of the grant, the impact the grant will have, and any potential risks associated with supplying the grant.

Once the need for a grant has been established, it must be ensured that the grant scheme has appropriate accountability requirements in place. This means that reasons for decisions at all stages of the grant process, including the appraisal, approval and follow-up must be well documented. Adequate accountability requirements will ensure the proper transparency of the grant scheme, and that public funds are used for proper purposes.

The approval and authorisation of grants can be undertaken by a person in a position with appropriate delegated authority, as set out in the Department’s Delegations and Financial Authorities Framework. Note: To ensure good internal controls, no one single departmental officer should appraise a grant, give financial approval and make the offer to the applicant.

A vital requirement of effective grant administration is the ability of the Department to protect its interest in ensuring that public money is used for the intended purpose. In order to do this a well-drafted grant agreement must be prepared. This provides for:

• accountability for, and protection of, public money;
• legal protection of the grant recipient and the Department;
• agreed terms and conditions of the funding assistance, including performance information and access requirements, and clearly defined roles and responsibilities of all parties;
• dispute resolution arrangements;
• clear understanding between the parties on required outcomes prior to commencement of funding.; and
• reporting or accountability requirements of grantee, if any.

When designing the grant agreement, legal advice should be sought from Crown Law on how best to protect the interests of the Department and the Crown. Standard conditions for inclusion in grant agreements can be obtained from Crown Law.

Details of grants which the Department manages are to be included in the Department’s Annual Financial Statements and Budget Papers.

Further information on the administration of grants can be found in the Best Practice Guide for the Administration of Grants.

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The following table summarises the types of grants the Department pays, and provides web links to more detailed information, including the application process.

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Grants which are given to organisations (not individuals) must comply with certain accountability requirements.

Where an Agency has made a grant or grants to a organisation which within a financial year total less than $5000, it is not necessary for any accountability requirements to be met after the grant has been disbursed.

Where the Department gives a grant of $5000 or more to a organisation, or makes grants to a organisation which total $5000 or more during a financial year, one of the following is to be obtained in respect of the grant or grants:

• a signed copy of the organisation’s financial statement, showing that the grant was received and the way each grant was used, together with an signed audit certificate;
• a Statutory Declaration signed by two office holders or members of the organisation considered to be genuine representatives of the organisation, stating that the grant was received and used for the purpose it was intended for; or
• a certificate signed by a suitably qualified person (an auditor) stating that the grant was received and used for the purpose for which it was intended.

Note: Grants given to individuals (i.e. students) are not required to supply any of the information mentioned above.

No further grants are to be given to an organisation that has not provided to the Department any of the above information within 6 months of the end of the relevant financial year, until that information is provided.

If the Department has taken all reasonable steps and is not satisfied that a grant was received by the organisation, or that all material conditions of the grant have been complied with by the organisation, the Secretary is to advise the Treasurer accordingly, and make such recommendations in respect of the grant and the payment of future grants to that organisation as considered necessary.

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• Best Practice Guide for the Administration of Grants
• Education Act 1994
• Education Regulations 1995
• Treasurer’s Instructions 1011 & 1012

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The administration of grants will be subject to internal audit, external audit and performance audits.

• Expenditure Policy
• Trustee Arrangements Policy

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