Grants - getting started

Robust planning and design is a key principle of the CGRGs ( Chapter 7). Matters to consider include:

• establishing the rationale for the grant opportunity, in particular what outcomes are required and how these will be measured;
• defining the operational objectives;
• consulting with key stakeholders;
• undertaking risk identification, mitigation and engagement;
• designing the grant opportunity to achieve value with relevant money, considerations for this include:
  • developing eligibility and assessment criteria that reflect the operational objectives and policy intent and are easily assessable;
  • identifying any considerations which will impact on the decision making;
  • ensuring the application and selection processes are proportional and accountable and meet probity and transparency requirements;
  • establishing performance and evaluation measures;
• identifying the capabilities required for assessment, who will assess applications and who the decision maker will be;
• selecting an appropriate funding strategy and grant agreement/s taking into consideration the risks and objectives;
• considering legal, accounting and policy matters; and
• developing robust governance arrangements.

Grant Guidelines

Grant opportunity guidelines must be developed for all grant opportunities. Grant opportunity guidelines are the authoritative documents which potential grantees engage with that provide all information required to understand the purpose of a grant opportunity and how to make an application.

The Department of Finance, in consultation with granting entities, has developed whole of government grant opportunity templates to assist when developing grant opportunities. These templates guide users to meet the better practice administration requirements of the CGRGs and allow speedier timeframes for approval and publication of the grant opportunity, to open the grant opportunity for applications.

This Grants template wizard can help you decide which template to use:

The Grants template wizard tool a key element of grants administration to identify and engage with risk. Entities are required to prepare a risk assessment for each grant opportunity and consult with Finance and the Department of the Prime Minister and Cabinet (PM&C) on the risk rating prior to release of the grant opportunity guidelines (more on this below).

Risk

Entities are required to conduct a self-assessment risk analysis of the grant program and related guidelines. Risks assessed include the program, implementation, grantee and activity risks. Considerations also include: complexity of the grant opportunity’s design, the expected number of eligible applicants and constitutional and legislative risk.  

For the majority of grants, once the entity has determined  a risk rating, they are required to provide the draft grant opportunity guidelines and the risk assessment to Finance and PM&C to consult on the risk assessment and agree the risk rating. This risk rating determines the approval process for publishing the grant opportunity guidelines. The key steps are:

1. Entities prepare a risk assessment and grant opportunity guidelines
2. Finance and PM&C review and agree on a risk rating for the grant opportunity
3. The relevant portfolio minister either:
   1. approves the grant opportunity guidelines if the risk rating is agreed as low and the whole of government template was used;
   2. writes to the Finance Minister notifying of the intent to release the guidelines when the risk was agreed as low but the guidelines were not developed using the whole of government template; OR
   3. seeks the Finance Ministers’ agreement to release the Guidelines for medium or high risk rating agreement.
4. The entity then publishes the grant opportunity guidelines on GrantConnect.

Guidance material on how to prepare a risk assessment is available, please contact the grants team for the self-risk assessment template (grants@finance.gov.au).

Streamlined approval process for grant guidelines

The Government has streamlined the process for grant opportunity guidelines to be agreed and published, when the whole of government template is used and the agreed risk is “low”. The streamlined approval process aims to reduce the time spent by entities on administrative processes, enabling guidelines to be released more quickly and to allow the focus to be on achieving the best outcomes for Australians.

Once the grant opportunity guidelines have been approved, they are published on GrantConnect, which is a requirement of the CGRGs.

In using the whole of government template, responsible Ministers may approve grant opportunity guidelines where the relevant entity, Finance and the Department of the Prime Minister and Cabinet (PM&C) agree the risk is “low” and the templates have been populated as instructed. This process and the correct use of templates enables entities to engage in better practice grants administration in a consistent and transparent way. The templates also aim to reduce the time spent by grant applicants reviewing guidelines by providing a common format and structure making it easier for grant applicants to navigate and understand the requirement they will need to satisfy to apply for a grant.

The table below outlines the key requirements for each grant opportunity