List of recommendations

2.93The Committee recommends that the Australian Government implement the Recommendation from JCPAA Report 484 to add an eighth principle to the Commonwealth Grants Rules and Guidelines that decision makers should adhere to the guidelines, which the previous Government agreed to but failed to actually implement.

2.94The Committee recommends that the Department of Finance amends its Resource Management Guide No. 412 - Australian Government Grants – Briefing, Reporting, Evaluating and Election Commitments to clarify the definition of an election commitment for the purpose of delivering grants programs.

2.95The Committee recommends that the Australian Government amends the Commonwealth Grants Rules and Guidelines 2017 to provide that:

Competitive, merit-based processes must be adopted by default with program design guidelines or decision makers required to document appropriately detailed reasons when a non-competitive approach is utilised, acknowledging there are legitimate circumstances where it is appropriate or preferable to do so including urgent situations such as disasters, or instances where there are only limited suitable grant recipients to give effect to election commitments or a policy.

The role of all stakeholders must be disclosed in the published program guidelines for competitive merits-based grants programs, including any who assess or award grant funding and how advocacy and input from MPs and stakeholders is to be considered.

A deadline for the receipt of advocacy letters and stakeholder input should be advised, after which time such input may not be able to be considered as part of the assessment process.

Clear recommendations must be made for each individual grant and that the pooling of ‘eligible’ recommendations for decision-makers to choose from does not meet this requirement.

Explicit reference be made to Resource Management Guide 412 so officials are fully aware and cognisant of this guidance.

A decision-maker’s approval of funding against the recommendations of agency of officials must be:

oclearly recorded, with any refusal or unreasonable delay by decision-makers in doing so to be reported to the Minister for Finance at the earliest opportunity; and

oreported online, including the basis for that approval. This should preferably be in a central location on GrantConnect or at least on the agency’s website and be updated within three months of announcements being made.

Any 'other factors' by which grants will be assessed must be:

otransparently listed and published in program design guidelines to enable applicants to address them, and

oformally included as part of the assessment criteria and appropriately assessed and scored.

2.96In keeping with the key principles of ‘Governance and Accountability’ and ‘Probity and Transparency’ in the administration of Commonwealth grants, the Committee recommends that the Department of Finance develops ‘good-practice’ examples of record-keeping templates with an accompanying checklist that give effect to the rules and principles of the CGRGs that all Commonwealth entities be strongly encouraged to use for any grants or ‘grants-like’ programs. These templates and checklists should prompt both public officials and ministers to clearly document all decisions and decision-making processes throughout the operation of a grants program. The following requirements are recommended:

sample templates and accompanying checklists be developed no later than six months from the date of this report

input on template design and accompanying checklists to be sought from the major Commonwealth entities that operate grants programs, Grants Hubs, and from the Australian National Audit Office

all Departments of State and other significant grant-making entities be asked to advise the Committee within 6 months of the templates and checklists being finalised how they have now embedded the guidance in their agency’s practices.

2.97The Committee recommends that the Australian National Audit Office considers a future audit of the process by which the Finance Minister is informed of grant approvals against the recommendation of the awarding agency.

2.128The Committee recommends that the Australian Government amends the Commonwealth Grants Rules and Guidelines 2017 and makes any consequential amendments to other legislation to provide that:

The Commonwealth Grants Rules and Guidelines will apply to corporate Commonwealth entities by default unless exceptions are made via legislative instrument issued by the Minister for Finance.

3.23The Committee requests that the Department of Finance reports back to it on its progress in implementing the recommendations of the audit into the grants hubs by the Australian National Audit Office within 12 months of the date of this report.

3.24The Committee recommends that the Australian National Audit Office conduct another information report on Australian Government Grants Reporting in 2024.