Docstoc

Provision of Grants

Document Sample
Provision of Grants Powered By Docstoc
					PROVISION OF GRANTS



EFFECTIVE: 27 AUGUST 2007
                                                                  2

                                                           CONTENTS

1      POLICY STATEMENT ....................................................................................................... 4
2      BACKGROUND ................................................................................................................. 4
3      DEFINITIONS .................................................................................................................... 5
       3.1   ACQUITTAL ........................................................................................................... 5
       3.2   COMMUNITY BASED SERVICES.......................................................................... 5
       3.3   CONFLICT OF INTEREST ..................................................................................... 5
       3.4   CORRUPTION ....................................................................................................... 5
       3.5   EVALUATION ......................................................................................................... 5
       3.6   GRANT ................................................................................................................... 6
       3.7   GRANT ADMINISTRATOR..................................................................................... 6
       3.8   GRANT PROGRAM................................................................................................ 6
       3.9   GRANT PROJECT PLAN ....................................................................................... 6
       3.10 INTELLECTUAL PROPERTY ................................................................................. 6
       3.11 MONITORING ........................................................................................................ 7
       3.12 PERFORMANCE MEASUREMENT ....................................................................... 7
       3.13 RISK MANAGEMENT ............................................................................................. 7
4      PRINCIPLES ..................................................................................................................... 7
5      RELEVANT LEGISLATION OR AUTHORITY .................................................................... 7
6      RELEVANT POLICIES....................................................................................................... 7
7      PROCEDURES.................................................................................................................. 8
       7.1  GOODS AND SERVICES TAX (GST) .................................................................... 8
       7.2  APPROVAL AND MANAGEMENT OF GRANTS .................................................... 8
           7.2.1 GRANT PROGRAM APPROVAL ................................................................ 8
           7.2.2 GRANT MANAGEMENT ............................................................................. 9
       7.3  CONFLICT OF INTEREST ................................................................................... 10
       7.4  CORRUPTION ..................................................................................................... 10
       7.5  SUPPORT AND ASSISTANCE ............................................................................ 10
       7.6  RECORD KEEPING ............................................................................................. 11
APPENDIX A            GRANT APPROVAL AND MANAGEMENT FLOWCHART ............................. 12
APPENDIX B BEST PRACTICE GUIDELINES FOR GRANT ADMINISTRATORS ............... 13
    B.1   PLANNING PHASE .............................................................................................. 13
          B.1.1 GRANT PROJECT PLAN .......................................................................... 13
          B.1.2 OTHER PLANNING TASKS ...................................................................... 13
    B.2   ESTABLISHMENT PHASE ................................................................................... 14
          B.2.1 KEY TASKS IN ESTABLISHING AND OPERATING A GRANT ................ 14
    B.3   MONITORING PHASE ......................................................................................... 14
          B.3.1 KEY TASKS IN MONITORING GRANTS .................................................. 15
    B.4   REVIEW OR EVALUATION PHASE..................................................................... 15
          B.4.1 REVIEWING A GRANT ............................................................................. 15
          B.4.2 EVALUATING A GRANT ........................................................................... 16




                                                                  2
                                                3

APPENDIX C   GRANT PROGRAM APPROVAL TEMPLATE................................................. 17
APPENDIX D   GRANT PROJECT PLAN TEMPLATE ............................................................ 18
APPENDIX E   STANDARD GRANT AGREEMENT FOR GRANTS OVER $10 000 ............... 21
APPENDIX F   STANDARD GRANT CONDITIONS FOR GRANTS UNDER $10 000 ............ 31




                                                3
                                           4



1   POLICY STATEMENT
    The Department of Education and Training (the Department) will effectively
    administer grants including high standards of financial management and control,
    transparency, accountability and consistent practice.

    Note: This policy does not apply to and should not be used by schools or TAFEWA colleges.


2   BACKGROUND
    The Financial Management Act 2006 requires the Department to plan and implement
    its financial and other resource management activities.

    The Director General, as the accountable authority, has ultimate responsibility to the
    Minister for Education and Training for the Department‟s financial management and
    is supported by the Deputy Director General, Finance and Administration.

    Each year, as part of its operations, the Department enters into financial contracts
    with other organisations principally for:
    a)    the purchase of goods and services necessary for the operations of the
          Department or its staff; and
    b)    the provision of community based services (i.e. the achievement of outcomes
          related to public education and training).

    Under the State Supply Commission Act 1991, the State Supply Commission has
    responsibility for “arranging and coordinating” the supply of goods and services
    necessary for the operations of the Department or its staff. The State Supply
    Commission‟s policies provide a framework for the purchase of goods and services
    that reflects best practice principles and arrangements.

          Examples of goods include the purchase of motor vehicles, office supplies, computer
          equipment and accessories.

          Examples of services include the purchase of medical services (e.g. annual flu
          vaccinations for staff), IT support services, maintenance (e.g. a photocopy technician),
          or postal services.

    In addition to the purchase of goods and services, the Department also provides a
    significant amount of funding to other organisations for the provision of community
    based services.

    Grant funding, predominantly to not-for-profit organisations, forms a major part of
    funding for the provision of community based services.

    Grants are not subject to the State Supply Commission Act 1991. However, The
    Department is required by whole of Government policy, to use standardised
    documentation in all circumstances when providing grants for community based
    services.




                                           4
                                             5

      There is a risk with any grant that:
                 the grant may not be used for its intended purposes;
                 corruption occurs;
                 the grant does not produce the desired outcomes;
                 the grant does not align with the strategic goals of the Department;
                 the grant recipient is able to access and utilise funding from other
                  sources for the same purpose, without an increase in performance or
                  impact; or
                 the grant recipient does not report additional funding sources but reports
                  outcomes as if there was only one source of grant funds.

      Control over the provision of grants is essential to ensure that:
           efficient use is made of the Department‟s financial resources; and
           there is appropriate discharge of public accountability.


3     DEFINITIONS

3.1   ACQUITTAL

      Acquittal is the process the Department undertakes, in conjunction with a grant
      recipient, of ensuring that grant funding has been fully expended for the purpose for
      which the grant was initially intended.

3.2   COMMUNITY BASED SERVICES

      Community based services mean services intended to:
           advance education and training; and/or
           address physical or social disadvantage; and/or
           promote the health and wellbeing of individuals and families; and/or
           provide a service or benefit to the community.

3.3   CONFLICT OF INTEREST

      A conflict of interest is a situation arising from conflict between the performance of
      public duty and private, or personal interests.

      In the context of grants, conflicts of interest may be actual, or perceived, or
      potentially exist at some time in the future.

3.4   CORRUPTION

      Corruption occurs when a staff member without lawful authority or a reasonable
      excuse, misuses her/his position for direct or indirect personal gain or to cause a
      detriment, whether pecuniary or otherwise, to any person.

3.5   EVALUATION

      Evaluation is the process of reviewing the overall efficiency, effectiveness and
      economy, as well as the appropriateness, of a grant.




                                             5
                                             6

3.6    GRANT

       A grant is a sum of money provided to an organisation or individual for a specified
       purpose and duration. The term „grant‟ does not include:
            funding for the purchase or delivery of core education and training services
             (e.g. monies provided to schools under the School Grant process, or to
             registered training organisations under the Competitive Allocation of Training
             program);
            intra-department transfers;
            funding provided on a ongoing basis;
            contracts which are significant, complex, and/or high in monetary value;
            activities relating primarily to the supply of goods and services necessary for
             the operations of the Department;
            activities relating to the acquisition or disposal of land or buildings;
            legal partnerships;
            salaries or wages;
            employment contracts;
            the procurement of works;
            leases or licences;
            sponsorships;
            scholarships;
            gifts, donations, bequests;
            endowments; or
            awards or prizes.

3.7    GRANT ADMINISTRATOR

       The grant administrator is the directorate within the Department which is responsible
       for implementation of a grant program.

3.8    GRANT PROGRAM

       A grant program is a strategic document that clearly summarises the rationale,
       purpose, and desired outcomes of a proposed grants strategy.

3.9    GRANT PROJECT PLAN

       A grant project plan is an operational plan that provides the basis for a grant
       administrator to implement a grant program.


3.10   INTELLECTUAL PROPERTY

       Intellectual Property is the umbrella term given to a range of legal and moral rights
       that come into being with the creation of literary and artistic creations, scientific and
       industrial works and discoveries.

       Copyright, patents, industrial designs, trademarks and plant breeding rights are all
       covered by the term „IP‟. IP law aims to encourage the distribution of these types of
       creations within society by granting their owners various exclusive rights for a limited
       time. The incentives provided by such exclusive rights encourage the distribution of
       the results of intellectual effort throughout the wider society.




                                             6
                                            7

3.11   MONITORING

       Monitoring is the process by which the Department establishes whether individual
       grants are expended as intended.


3.12   PERFORMANCE MEASUREMENT

       Performance measurement is the use of evidence to determine progress toward
       desired grant outcomes. In some cases quantified performance measures may not
       be available and less direct performance measures may have to be used.
       Performance measurement is best supported by relevant, accurate, timely,
       accessible, interpretable and coherent performance information.


3.13   RISK MANAGEMENT

       Risk Management is the culture, processes and structures that are directed towards
       the effective management of potential opportunities and adverse effects as they
       relate to grants.


4      PRINCIPLES
       The policy will be underpinned by four key principles, including:
            using outcomes as a basis for funding;
            focussing on strategic benefits;
            establishing value for money, accountability, fairness and transparency; and
            ensuring natural justice and procedural fairness.


5      RELEVANT LEGISLATION OR AUTHORITY
       A New Tax System (Goods and Services Tax) Act, 1999 (Commonwealth)

       Financial Management Act, 2006

       Public Sector Management Act, 1994

       School Education Act, 1999

       State Supply Commission Act, 1991

       Treasurers Instructions

       Vocational Education and Training Act, 1996


6      RELEVANT POLICIES
       Administration of Grants, Better Practice Guide - Australian National Audit Office
       (May 2002)

       Conflict of Interest Scenarios. Allocation of Grants for Community-based Services -
       The Integrity Coordinating Group



                                           7
                                             8

        Conflict of Interest Guidelines. Identifying and Managing Conflicts of Interest in the
        Western Australian Public Sector - The Integrity Coordinating Group

        Corruption, Prevention and Detection

        Financial Management in Schools - Policy and Procedures

        Funding and Purchasing Community Services Policy - State Supply Commission and
        the Department of Premier and Cabinet (December 2004)

        Procurement Users Guide, State Supply Commission

        Records Management

        Records Management Manual for School, College and Campus Records

        Risk Management within the Education and Training Portfolio: Policy, Procedures
        and Guidelines

        Staff Conduct


7       PROCEDURES

7.1     GOODS AND SERVICES TAX (GST)

        Grant funding must specify the treatment of GST.
        Guidelines
        The tax implications of each individual grant should be considered:
             The Education and Training Shared Services Centre should be consulted
              regarding the tax implications of a grant.
             The Financial Policy and Services Directorate should be consulted regarding
              school based tax issues.

7.2     APPROVAL AND MANAGEMENT OF GRANTS

        There must be separation between those who determine grants funding, those who
        select and manage grants, and the grant recipients.

        The process of managing and approving grants is shown at Appendix A.

7.2.1   GRANT PROGRAM APPROVAL

        The rationale, level of funding, and intended outcomes of a grant program must be
        approved as follows:

         o     For grant programs exceeding $1 million in total value, approval must be
               given by the Minister for Education and Training.

         o     For grant programs with a total value of between $100 000 and $1 million
               approval must be given by Corporate Executive.




                                             8
                                                9

              o    For grant programs with a value of less than $100 000 approval must by given
                   by the Deputy Director General, Schools or Training.

              A template for grant program approval is provided at Appendix C.

7.2.2     GRANT MANAGEMENT

          Following approval of a grant program the responsibility for implementation of the
          program must be delegated to a grant administrator.

          The implementation of a grant program must be achieved by way of a grant project
          plan. Appendix B sets out best practice guidelines for managing grants, including
          the establishment of a grant project plan.

          Each grant project plan must be approved by the Executive Director of the grant
          administrator.

          A template for a grant project plan is provided at Appendix D.

          A number of grants may be provided to different organisations or individuals within
          the scope of a grant project plan.

          Grant administrators must determine from grant recipients what other funding, from
          government and other sources they are receiving in relation to the grant.

          Management of all grants must include:
                 a documented application and approval process;
                 a clearly defined purpose and period for each individual grant;
                 compliance with grant conditions;
                 achievement of outcomes; and
                 the formal acquittal of funds.

7.2.2.1   GRANT OFFERS

          All grant offers must be approved by the Executive Director of the grant
          administrator.

7.2.2.2   STANDARDISED GRANT DOCUMENTS

          A letter confirming the grant offer must be signed by the Executive Director of the
          grant administrator and sent to the successful applicant along with either:
                 a standard grant agreement (a template is provided at Appendix E) to be used
                  as the template for all grants valued at $10 000 or more; or
                 a list of standard grant conditions (a template is provided at Appendix F), which
                  may be used for smaller and less complex grants valued at below $10 000.




                                                9
                                           10

      Guidelines
      For more complex or unique funding arrangements below the $10 000 threshold, the
      use of a standard grant agreement should be considered.

      Wherever possible, any intellectual property developed as a result of the grant
      should be jointly owned by the grantee and the Department of Education and
      Training. Specific details regarding intellectual property can be included in schedule
      1, item 4 of the standard grant agreement.

      Where applicable, provision should be made for the grantee to acknowledge that the
      grant has been ‘funded by the Department of Education and Training’. This
      provision can be included in schedule 1, Item 6 of the standard grant agreement.

      All standard grant documents must be signed by the Executive Director of the grant
      administrator.

7.3   CONFLICT OF INTEREST

      All Department staff must declare any conflict of interest or potential conflict of
      interest as soon as it is apparent such a situation may exist.
      Guidelines
      Although CEOs and senior managers have a particularly important role in ensuring
      conflict of interest situations are managed appropriately within an organisation,
      identifying a conflict of interest is an individual responsibility.

7.4   CORRUPTION

      Staff who suspect corruption must report suspicions in writing to their manager who
      will determine whether there are sufficient grounds for the suspicion of corruption.

      If the suspicion of corruption involves the manager, the staff member must report
      suspicions immediately in writing to the Principal Allocations Officer, Professional
      Standards and Equity or anonymously via the EDvisory Telephone Line
      (Tel 1800 791 197).
      Guidelines
      Refer to Corruption Prevention and Detection policy for more information.

7.5   SUPPORT AND ASSISTANCE

      Under section 57 (2) (c) of the Financial Management Act 2006 the Deputy Director
      General, Finance and Administration is responsible to the Director General for “the
      provision of advice concerning the financial implications of, and financial risks to, the
      agency‟s current and projected services”.
      Guidelines
      Support and assistance regarding the provision of grants, including management,
      possible risks, and financial implications is available from the Corporate and
      Management Accounting Directorate on 9264 4697.




                                           10
                                          11

7.6   RECORD KEEPING

      Grant administrators must ensure that all records relating to a grant program and
      associated grants are incorporated in the Department‟s record keeping systems.

      Records must be kept of all significant records. For the purposes of this policy
      significant records include records of objectives, performance measures,
      achievements, or monitoring and evaluation reports for each grant.
      Guidelines
      Refer to the Records Management policy for further information regarding records
      management.

      Original versions of all standardised grant documents must be kept by the grant
      administrator.

      Copies of all grant agreements must be forwarded to the Director, Corporate and
      Management Accounting (CMA) Directorate.

      The Director, CMA must be advised of any subsequent changes to grant
      agreements.

      The Department must publicly disclose details of all grants, subject to any directives
      in the Financial Management Act 2006 and Treasurer‟s Instructions.




                                          11
                                  12



APPENDIX A GRANT APPROVAL AND MANAGEMENT FLOWCHART

                                    Funds allocated via budget or other
                                                 process



GRANT PROGRAM APPROVAL
                         (1)   Define rationale of program
                         (2)   Seek approval according to $ value of program
          refer to                                                                             Refer to
          section
                                Minister for Education and Training- $1 million +             Appendix C
           7.2.1                Corporate Executive- $100 000 - $1 million                    for template
                                Education/Training Executive- $1 - $100 000
                               n
                                Education/Training Executive- $1 - $100 000
   GRANT MANAGEMENT
                                               Planning Phase



                                                                                               Refer to
                                           Approval of Grant Project Plan                      Appendix D
                                               (Executive Director)                            for template
                                                (Executive Director)
                                            Establishment phase
                                                (Executive Director)

                                                           df

                                                Application process



                                               Approval of grant offer
                                                (Executive Director)
     refer to section
     7.2.2 and Best                >$10 000                                 <$10 000
         Practice
       Guidelines
                           Approval of grant agreement          Approval of grant conditions     Refer to
                               (Executive Director)                (Executive Director)          Appendix E &
                           Copy sent to Director, CMA           Copy sent to Director, CMA       Appendix F
                                                                                                 for templates




                                            Monitoring phase




                                       Review or Evaluation Phase




                                  12
                                            13



APPENDIX B BEST PRACTICE GUIDELINES FOR GRANT ADMINISTRATORS

B.1     PLANNING PHASE

        The aim of the planning process is to ensure that all grants achieve their operational
        objectives.

        Planning enables the identification and specification of:
             the necessary processes and steps needed to achieve objectives;
             resources required and how they will be used;
             milestones and targets; and
             mechanisms for monitoring, recording and reporting performance against
              objectives.

B.1.1   GRANT PROJECT PLAN

        The first stage of the planning process should involve the development of a grant
        project plan, which provides the basis for the implementation of a grant program.

        The grant project plan should clearly link to a grant program, and contain an
        assessment of all the costs, benefits, risks and options of a proposed strategy.

        The method of allocation should be justified and be appropriate to the type/size of
        funding, the grant objectives and the potential market.

        Consideration should be given to grant review and grievance mechanisms which are
        transparent and based on the principles of natural justice.

        Relationships with other funding sources should be mapped to avoid duplication.

        A template for a grant project plan is provided at Appendix D.

B.1.2   OTHER PLANNING TASKS
        a)    Consult with clients and other stakeholders to identify and resolve any
              conflicting objectives or duplication of effort.
        b)    Identify, analyse and assess risks and develop strategies for managing them
              (refer to Risk Management within the Education and Training Portfolio: Policy,
              Procedures and Guidelines).
        c)    Establish funding eligibility rules, ensuring compliance with access and
              participation principles.
        d)    Estimate all administrative costs, including monitoring and evaluation costs.
        e)    Assign administrative responsibilities and allocate resources.
        f)    Develop a funding strategy, accountability/reporting framework and acquittal
              arrangements - the funding strategy may include a lump sum, a standard
              percentage of costs incurred or a discretionary amount payable on
              achievement of agreed milestones.
        g)    Develop performance measurement and monitoring strategies.



                                            13
                                             14

        h)   Develop grant policy, procedures and grant application guidelines - these
             should include application conditions, selection procedures and appeal
             mechanisms. It may be necessary to conduct a financial stability assessment
             of applicants.

B.2     ESTABLISHMENT PHASE

        Grants should add value by achieving a worthwhile outcome that would not occur
        without the grant assistance.

        The successful operation of a grant is dependent on a full understanding of the
        grant‟s objectives and responsiveness to the lessons learned from monitoring and
        evaluation.

B.2.1   KEY TASKS IN ESTABLISHING AND OPERATING A GRANT
        a)   Promote the grant to potential applicants.
        b)   Develop a competition framework and funding conditions for inclusion in a Call
             for Applications for grants.
        c)   Provide guidance and information on grant policy, eligibility and selection
             criteria with application forms.
        d)   Ensure selection criteria target grant priorities.
        e)   Investigate scope for alternative forms of funding support and identify other
             sources of funding for the grant.
        f)   Develop an effective monitoring strategy that allows for corruption detection
             and prevention.
        g)   Assess applicants consistently and fairly, and document decisions.
        h)   Ensure clear separation of duties between the assessment of applicants and
             the approval of grants.
        i)   Award grant to successful applicant(s) and advise unsuccessful applicants.
        j)   Formulate standardised grant documentation (refer to section 7.2.2.2,
             Appendix E, and Appendix F).

B.3     MONITORING PHASE

        The Department is publicly accountable for the value for money achieved from any
        grant it issues. Clearly defined and effective financial and performance monitoring
        arrangements are therefore essential.

        The proper monitoring of a grant ensures that all conditions of the grant are being
        complied with and enables ongoing assessment of the grant's effectiveness in
        meeting its objectives.

        The extent and frequency of monitoring depends on the size of the grant, its
        sensitivity and the capability of the recipient.




                                            14
                                            15

B.3.1   KEY TASKS IN MONITORING GRANTS
        a)   Implement a monitoring strategy based on the risk management plan, ensuring
             a consistent application of monitoring procedures.
        b)   Review financial and progress reports regularly.
        c)   Incorporate lessons learned from monitoring into future selection and
             administration processes.
        d)   Ensure corrective action is taken in a timely and effective manner.
        e)   Ensure grant acquittal procedures are understood by recipients and effectively
             implemented.


B.4     REVIEW OR EVALUATION PHASE

        Review and evaluation contribute to better grant management, greater
        accountability, informed decision-making, clearer grant objectives and improved use
        of resources.

        Grant review and evaluation assists the Department to assess:
            the continued relevance or appropriateness of the grant;
            whether stated objectives were achieved;
            whether there are better ways of achieving the same objectives;
            the need to establish new grants or extend existing ones; and
            the adequacy of resourcing - whether it should be increased, decreased or
             discontinued.

B.4.1   REVIEWING A GRANT

        For major and long term grants, or grants with critical outcomes, a review of the
        operations and performance of the grant during its funding cycle should be
        considered to:
            evaluate the grant recipient's progress towards meeting the grant objectives;
            assess the status of the grant against cost, time and quality objectives;
            identify existing or potential problems;
            check identified risks and how they are being managed; and
            ensure a commitment of funds.

        The advantages of conducting a review during the early stages of the grant are that it
        provides the opportunity to introduce changes without incurring costs to the grant
        recipient or risking the loss of time. Flaws can also be discovered before they
        become an operational failure.

        Review findings should be summarised and presented to the Department and based
        on contributions from grant recipients.

        The report should:
            state clearly whether the grant remains on course to meet its objectives; and
            recommend strategies for dealing with any existing or potential problems and
             improving the effectiveness of implementation.




                                           15
                                            16

B.4.2   EVALUATING A GRANT

        Grants should be evaluated soon after the completion of the funding cycle, after
        grant recipients have acquitted their funds.

        Evaluations should:
             measure the success of the grant in achieving its planned objectives;
             identify the reasons for problems that were encountered and evaluate the
              adequacy of responses to those problems; and
             determine what remedial action needs to be taken to avoid a repeat of the
              problems in future grants.

        The objectives of evaluations are to document the lessons learned for application to
        future grants; improve grant appraisal, design management and implementation; and
        gain the maximum benefit from accrued experience. Apportioning blame is not the
        aim of an evaluation.

        The earlier an evaluation is conducted, the earlier the lessons learnt are available for
        subsequent grants. In particular, evaluations should be completed when:
             key grant personnel are available, and when their knowledge and experiences
              are still live; and
             outstanding obligations are identified and steps are taken to ensure that they
              are fulfilled.

        The evaluations report should:
             state clearly whether the grant objectives were met in terms of time, cost,
              quality and performance;
             state whether the program's overall objectives were met and quantify the
              outcomes;
             canvass possible future grants and alternative funding arrangements;
             recommend strategies to reduce the possibility of similar problems re-occurring
              in future grants; and
             identify aspects of grant management that worked particularly well or
              otherwise.




                                            16
                                               17



APPENDIX C GRANT PROGRAM APPROVAL TEMPLATE

 1   Background


 2   Rationale for Grant Program


 3   Program Framework
     a.   Program Principles


     b.   Priorities and Outcomes


     c.   Allocated Budget


 4   Relationship to State Government Policy


 5   Relationship to the Department of Education and Training’s Strategic Plan


 6   Grant administrator




                                           GRANT PROGRAM ENDORSEMENT

                                   Minister for Education and Training- $1 million +
                                   Corporate Executive- $100 000 - $1 million
                                   Education/Training Executive- $1 - $100 000

                               Please tick whichever is applicable:

                               Approved:                   Not Approved:

                               Signature of Hon Minister or Director General:

                               _________________________________




                                               17
                                                  18

APPENDIX D GRANT PROJECT PLAN TEMPLATE


INTRODUCTION



                                     GRANT PROJECT PLAN

Endorsed by: (Executive Director)



Signature:                                             Date:       /     /



Title of Grant Program:

Grant Administrator: Insert Directorate

Section and Division:

Expected Outcomes of Grants:




GRANT DETAILS             Include a short summary of the proposed grants funding strategy (e.g. a Call for
                          Applications (CFA) followed by a competitive process to be appraised by a
                          committee)


Term/Length of Grants
                                            $
Estimated Value of Grants



Cost Centre

Project Code (if applicable)

Start date:                                 End dates:

Advertising method:

Date:

RISK MANAGEMENT                       Refer to Risk Management within the Education and Training
                                      Portfolio: Policy, Procedures and Guidelines.


Risk Rating                           Low, moderate, high, or extreme




                                                  18
                                                19



INTRODUCTION



DESCRIPTION OF PROPOSAL



SCOPE OF PROPOSAL



BACKGROUND TO PROPOSAL



SPECIFICATIONS
The specifications of the project may include the following requirements:
    eligibility for funding
    intended recipient (e.g. not-for-profit)
    latest commencement date




RISK MANAGEMENT STRATEGIES
Include strategies that manage the risks associated with the following:
    the grant not being used for its intended purposes;
    corruption;
    the grant not producing the desired outcomes;
    the grant not aligning with the strategic goals of the Department;
    the grant recipient being able to access and utilise funding from other sources for the same
     purpose, without an increase in performance or impact; or
    the grant recipient not reporting additional funding sources but reports outcomes as if there
     was only one source of grant funds.



QUALITY ASSURANCE STRATEGIES



SPECIAL CONDITIONS AND REQUIREMENTS
Include any proposed special conditions or requirements to be imposed on each individual grant
recipient.


ESTIMATED COST AND SOURCE OF FUNDING
Where possible, map relationship with other Department funding sources.



                                                19
                                                               20


If the funding is not within the approved Business Unit budget and additional resourcing is
required then it must first be approved within the Department's financial management framework.



GRANT FUNDING STRATEGY
Include a summary and justification of the proposed grants strategy (including justification of
either a competitive or non-competitive process, or grievance and appeals mechanisms where
applicable).




PERFORMANCE MEASURES



SELECTION CRITERIA



MONITORING AND EVALUATION



TIMETABLE

ACTIVITY                                                            TARGET DATE

CFA advertised (where applicable)

Applications Close (where applicable)

Appraisal of applications (where applicable)

Letters to successful applicants and completion of standard grant
documentation

Grants Commence




                                                               20
                                 21




APPENDIX E STANDARD GRANT AGREEMENT FOR GRANTS OVER
           $10 000




______________________________________________________________


                             GRANT AGREEMENT
______________________________________________________________




                             [insert month and year]




                                 21
                                         22

THIS GRANT AGREEMENT is made on .…….… [insert date and year}

BETWEEN:

[insert government agency or authority name]
(“Grantor”)

and

[insert name of grant recipient]     A.B.N. (if applicable)
(“Organisation”)



RECITALS

The Organisation has applied to the Grantor for financial assistance to undertake the
Approved Purpose and the Grantor has agreed to provide a grant subject to the
terms and conditions of this Agreement.

THE PARTIES AGREE as follows:

1.     DEFINITIONS AND INTERPRETATION

       In this Agreement, unless the context otherwise requires:

       Agreement means this Grant Agreement, including its recitals and any
       schedules or annexures (if any).

       Acquittal occurs when the Grantor has advised the Organisation that the
       reports and financial information provided by the Organisation in accordance
       with clause 3.6 are satisfactory.

       Approved Purpose means the purpose or purposes set out in item 1 of
       Schedule 1.

       Auditor means an accountant who is a member of the Institute of Chartered
       Accountants in Australia, the Australian Society of Certified Practicing
       Accountants or the National Institute of Accountants and who is independent
       from the Organisation.

       Auditor General means the Auditor General for the State of Western
       Australia.

       Business Day means a day other than a Saturday, Sunday or public holiday
       in Western Australia.

       Grant Funds means the amount or amounts specified in item 7 of Schedule 1.

       Party means each of the Grantor or the Organisation as the context requires
       and Parties means both of them.

       Project means the initiative or activities to be undertaken with the Grant Fund
       specified in item 2 of Schedule 1.




                                         22
                                      23

2.    PAYMENT OF GRANT FUNDS

      Subject to the terms and conditions of this Agreement, the Grantor will pay
      to the Organisation the Grant Funds in accordance with the payment
      schedule specified in item 8 of Schedule 1.


3.    OBLIGATIONS OF ORGANISATION

3.1   Use of Grant Payment

      The Organisation will use the Grant Funds solely for the Approved Purpose.

3.2   No Changes

      The Organisation will not make any changes to the Approved Purpose
      without the prior written consent of the Grantor.

3.3   No Endorsement

      The Organisation agrees that nothing in this Agreement constitutes an
      endorsement by the Grantor of any goods or services provided by the
      Organisation.

3.4   Acknowledgement of Grantor

      The Organisation will acknowledge the Grantor in the manner set out in item
      6 of Schedule 1.

3.5   Request for Information

      (a)   The Organisation is to provide the Grantor with any documents or
            information relating to this Agreement or the Project within ten (10)
            business days of receiving such a request from the Grantor.

3.6   Accounts and Reporting

      (a)   The Organisation is to provide the progress reports, evaluation reports
            and financial statements specified in Schedule 2.

      (b)   The Organisation is to keep proper financial records in accordance
            with generally accepted accounting principles and practices.

3.7   Special Conditions of Grant

      The Organisation agrees to comply with the special conditions (if any)
      specified in item 4 of Schedule 1.

3.8   General Undertaking of Organisation

      The Organisation must:
      (a)   at all times duly perform and observe its obligations under this
            Agreement and will promptly inform the Grantor of any occurrence
            which might adversely affect its ability to do so in a material way;




                                      23
                                       24

      (b)   undertake its responsibilities under this Agreement with integrity, good
            faith and probity in accordance with good corporate governance
            practices;
      (c)   not, nor attempt to, sell, transfer, assign, mortgage, charge or
            otherwise dispose of or deal with any of its rights, entitlements and
            powers or obligations under this Agreement;
      (d)   comply with all State and Commonwealth laws, rules, regulations and
            by-laws;
      (e)   cooperate fully with the Grantor in the administration of this
            Agreement; and
      (f)   upon reasonable notice, provide the Grantor or its agents, with access
            at any reasonable time and from time to time to the Organisation‟s
            premises, financial records, other documents, equipment and other
            property for the purpose of audit and inspection by the Grantor in
            order to verify compliance by the Organisation with this Agreement.


4.    REPAYMENT AND RETENTION OF GRANT FUNDS

      The Organisation must repay to the Grantor any funds that the Grantor has
      paid which are not used in accordance with this Agreement unless there has
      been written agreement otherwise between the parties.


5.    LIMITATION OF LIABILITY

      The Grantor does not accept any responsibility or liability for the success or
      otherwise of the Approved Purpose and is not liable for any losses which
      may be suffered by the Organisation in undertaking the Approved Purpose.


 6.   FREEDOM OF INFORMATION ACT 1992 AND FINANCIAL
      MANAGEMENT ACT 2006
      (a)   The Organisation acknowledges and agrees that this Agreement and
            information regarding it is subject to the Freedom of Information Act
            1992 and that the Grantor may publicly disclose information in relation
            to this Agreement, including its terms and the details of the
            Organisation.
      (b)   The parties acknowledge and agree that, despite any provision of this
            Agreement to the contrary, the powers and responsibilities of the
            Auditor General under the Financial Management Act 2006 are not
            limited or affected by this Agreement.
      (c)   The Organisation must allow the Auditor General, or an authorised
            representative, to have access to and examine the Organisation‟s
            records and information concerning this Agreement.

7.    NOTICES

      Any notice or other communication that may or must be given under this
      Agreement:
      (a)   must be in writing;



                                       24
                                        25

      (b)   may be given by an authorised officer of the Party giving notice;
      (c)   must be:
            (i)     hand delivered or sent by prepaid post to the address of the
                    Party receiving the notice as set out in item 5 of Schedule 1; or
            (ii)    sent by facsimile to the facsimile number of the Party receiving
                    the notice as set out in item 5 of Schedule 1;
      (d)   subject to paragraph (e), is taken to be received:
            (i)     in the case of hand delivery, on the date of delivery;
            (ii)    in the case of post, on the third Business Day after posting;
                    and
            (iii)   in the case of facsimile, on the date of transmission; and
      (e)   if received after 5.00 pm or on a day other than a Business Day, is
            taken to be received on the next Business Day.


8.    DEFAULT AND TERMINATION

8.1   Event of Default by the Organisation

      An Event of Default occurs if:
      (a)   the Organisation breaches any of its obligations under this Agreement
            which continues without remedy for ten (10) business days after notice
            in writing has been served on the Organisation by the Grantor;
      (b)   the Organisation becomes insolvent or is deemed to be insolvent
            under the Corporations Act (Cth); or
      (c)   if the Grantor has reasonable grounds to believe that the Organisation
            is unwilling or unable to comply with its obligations under this
            Agreement.

8.2   Effect of Event of Default

      If an Event of Default occurs, the Grantor may either:
      (a)   terminate the Agreement by providing a further ten (10) business days
            notice in writing to the Organisation of the Event of Default; or
      (b)   suspend payment of the Grant Funds until the Event of Default is
            remedied.

8.3   Recommencement of Grant Payment

      The Grantor may, in its absolute discretion, recommence payment of the
      Grant Funds if and when the Organisation has rectified the Event of Default.

8.4   Acquittal

      Unless earlier terminated, this Agreement will terminate at the time of the
      final Acquittal.




                                        25
                                       26

9.    GOODS AND SERVICES TAX (GST)

      (a)   For the purposes of clause 9:
            (i)     “GST” means the goods and services tax applicable to any
                    taxable supplies as determined by the GST Act; and
            (ii)    “GST Act” means A New Tax System (Goods and Services
                    Tax) Act 1999 (Cth) and includes all associated legislation and
                    regulations;
            (iii)   the terms “supply”, “tax invoice”, “taxable supply” and “value”
                    have the same meanings as in the GST Act.
      (b)   If the supply of anything under this Agreement is a taxable supply
            under the GST Act, the Grant Funds shall be inclusive of GST.
      (c)   The obligation of the Grantor to pay the GST on any supply by the
            Organisation under this Agreement is conditional upon the prior issue
            by the Organisation to the Grantor of a tax invoice, which complies
            with the GST Act. This provision applies notwithstanding any law to
            the contrary.
      (d)   If the parties agree that the Grantor will issue the Organisation with a
            Recipient Created Tax Invoice (RCTI), then the parties hereby agree
            that:
            (i)     the Grantor will issue a RCTI in respect of GST payable on the
                    supply of the Project and the Organisation will not issue tax
                    invoice in respect of that supply;
            (ii)    The Organisation warrants that it is registered for the
                    purposes of GST and the Organisation will notify the Grantor in
                    writing if it ceases to be registered for the purposes of GST
                    during the term of this Agreement (“the Term”);
            (iii)   the Grantor warrants that it is registered for the purposes of
                    GST and the Grantor will notify the Organisation in writing if it
                    ceases to be registered for the purposes of GST, or if it ceases
                    to satisfy the requirements of the GST Act during the Term ;
                    and
            (iv)    the Grantor will indemnify and keep indemnified the
                    Organisation for GST and any related penalty that may arise
                    from an understatement of the GST payable on the supply of
                    the Project for which the Grantor issues a RCTI under this
                    Agreement.


10.   RELATIONSHIP

      The Parties agree that nothing in this Agreement may be construed to make
      either of them a partner, agent, employee or joint venturer of the other.

11.   WAIVER

      (a)   No right under this Agreement shall be deemed to be waived except
            by notice in writing signed by both parties.




                                       26
                                          27

        (b)   A waiver by either party will not prejudice that party‟s rights in relation
              to any further breach of this Agreement by the other party.
        (c)   Any failure to enforce this Agreement, or any forbearance, delay or
              indulgence granted by one party to the other party, will not be
              construed as a waiver any rights.


12.     ENTIRE AGREEMENT

        This Agreement constitutes the entire agreement between the parties and
        supersedes all communications, negotiations, arrangements and
        agreements, whether oral or written, between the parties with respect to the
        subject matter of this Agreement.

13.     VARIATION

        Any modification, amendment or other variation to this Agreement must be
        made in writing duly executed by both parties.


14.     DISPUTE RESOLUTION

        Before resorting to external dispute resolution mechanisms, the Parties shall
        in good faith attempt to settle by negotiation any dispute in relation to this
        Agreement, and where practical, each Party shall refer the matter to
        personnel who have authority to intervene and facilitate some form of
        resolution.


Executed by the Parties hereto:

For and on behalf of the Grantor:



_________________________                    _____________________________
Signature of Authorised Person               Print full name of Authorised Person

Dated____________________                    _____________________________
                                             Position of Authorised Person


For and on behalf of the Organisation:



_________________________                    _____________________________
Signature of Authorised Person               Print full name of Authorised Person

Dated____________________                    _____________________________
                                             Position of Authorised Person

(Organisations should use common seal of a company or incorporated association,
where appropriate.)



                                          27
                                          28

SCHEDULE 1

             DEFINTION OF PROJECT OR SERVICE TO BE FUNDED

1.       Approved Purpose of Grant

[Include full description of the Approved Purpose of the Grant.]


2.       Project Definition and/or Anticipated Activities

[Include full description of the project and/or anticipated activities to be undertaken
with the Grant Funds, including any specified stages of development/project
requirements, contract management or implementation timeframes.]


3.       Agreement Term

[Note the effect of clause 8.4 whereby, unless earlier terminated, this Agreement will
terminate at the time of Acquittal. In this context, Acquittal means the Grantor has
advised the Organisation that the reports and financial information provided by the
Organisation in accordance with clause 3.6 are satisfactory.]


4.       Special Conditions of Grant

[Detail any specific conditions in relation to the unique requirements of this Grant, as
appropriate. For example, special conditions that might be applied to a Grant could
include issues, such as the maintenance of Quality Standards, management of
intellectual property generated by the Grant or requirements for notification of a
Serious Incident.]


5.       Notice Addresses

(a)      Grantor
         Registered Mail:
         Facsimile:
         Email:

(b)      Organisation
         Registered Mail
         Facsimile:
         Email:


6.       Acknowledgement of Grantor

[Detail requirements for Organisation to provide acknowledgement of the financial
assistance provided in accordance with this Agreement (if any)]




                                          28
                                       29

                             PAYMENT SCHEDULE


7.      Total Amount of Grant Funds

Grant Amount    $……………
GST             $……………(if not included in Grant Amount)

8.      Method of Payment

Payment of the Grant Funds (inclusive of GST) will be made in the amounts detailed
below and within ten (10) business days of the dates listed below:

PAYMENT DATES                               AMOUNT TO BE PAID ($)




                                       29
                                        30

                                 SCHEDULE 2

                        REPORTING REQUIREMENTS

1.   Reports to be provided as at:

     [Insert details of reports and dates.]


2.   Evaluation Arrangements

     [Insert evaluation requirements and obligations, if applicable]


3.   Provide a Statement of Income and Expenditure related to this Agreement
     by [insert appropriate date] as specified by the Grantor.

4.   Where the Grant Funds are valued at under $35,000, financial statements
     are to be certified by the Chairman, CEO or equivalent of the Organisation.

5.   Where the Grant Funds are valued at $35,000 or more, financial statements
     are to be certified by the Chairman, CEO of the Organisation, or equivalent
     AND certified by a professional auditor who is:
       (a) not an officer or employee of the Organisation;
       (b) registered as a company auditor or equivalent under a law in force in
           Western Australia; or
       (c) a member or fellow of the Institute of Chartered Accountants, the
           Australian Society of Certified Practising Accountants or the National
           Institute of Accountants.




                                       30
                                         31



APPENDIX F STANDARD GRANT CONDITIONS FOR GRANTS UNDER
           $10 000
The grant is provided under the following terms and conditions:

1.     The grant is to be used solely for the specified purpose approved by us during
       the funding period.

2.     Any part of the grant funds that are not used in accordance with Condition 1
       must be repaid to us unless you obtain our written approval.

3.     If you cease carrying out the activities for which the grant was made or if we
       have terminated the arrangement on account of your breach or breaches of
       these Conditions then:

       (a)    the balance of the grant monies unspent must be repaid to us; and

       (b)    any property acquired with the grant monies must be transferred to
              another organisation with similar objects and purposes to your
              organisation, provided our prior written approval has been given.

4.     Providing you with a grant does not mean that you are entitled to any further
       funding.

5.     We will not be held responsible for the success of the approved purpose for
       which the grant is applied or for any losses or additional costs incurred that
       are associated with the approved purpose.

6.     You must comply with all Local, State and Commonwealth laws applicable to
       the approved purpose.

7.     If you wish to change the approved purpose or seek an extension of the
       funding period you must obtain our prior written approval.

8.     If you breach any of these terms and conditions, we can terminate the
       arrangement at any time and without giving you any prior notice.

9.     You must provide us with any documents or information relating to the grant
       or the approved purpose that we ask for within ten (10) business days of
       receiving our request.

10.    You must meet any payment conditions and/or reporting requirements as
       specified by us.

11.    You must allow the Auditor General for the State of Western Australia, or an
       authorised representative, to have access to and examine your records and
       information concerning this grant.

12.    The total grant payment provided by us includes an amount to cover any
       liability for GST, if applicable.




                                         31
Uncontrolled when printed                                        32                               Effective: 26 August 2007


                [NB 1#: The addition of this clause is a requirement of the Australian
                Taxation Office]
13.       (a)       For the purposes of clause 12:

                    (i)       “GST” means the goods and services tax applicable to any
                              taxable supplies as determined by the GST Act; and

                    (ii)      “GST Act” means A New Tax System (Goods and Services
                              Tax) Act 1999 (Cth) and includes all associated legislation and
                              regulations;

                    (iii)     the terms “supply”, “tax invoice”, “taxable supply” and “value”
                              have the same meanings as in the GST Act.
          (b)       If the supply of anything under this Agreement is a taxable supply
                    under the GST Act, the Grant Funds shall be inclusive of GST.

          (c)       The obligation of the Grantor to pay the GST on any supply by the
                    Organisation under this Agreement is conditional upon the prior issue
                    by the Organisation to the Grantor of a tax invoice, which complies
                    with the GST Act. This provision applies notwithstanding any law to
                    the contrary.

          (d)       If the parties agree that the Grantor will issue the Organisation with a
                    Recipient Created Tax Invoice (RCTI), then the parties hereby agree
                    that:
                    (i)       the Grantor will issue a RCTI in respect of GST payable on the
                              supply of the Project and the Organisation will not issue tax
                              invoice in respect of that supply;
                    (ii)      The Organisation warrants that it is registered for the
                              purposes of GST and the Organisation will notify the Grantor in
                              writing if it ceases to be registered for the purposes of GST
                              during the term of this Agreement (“the Term”);
                    (iii)     the Grantor warrants that it is registered for the purposes of
                              GST and the Grantor will notify the Organisation in writing if it
                              ceases to be registered for the purposes of GST, or if it ceases
                              to satisfy the requirements of the GST Act during the Term ;
                              and
                    (iv)      the Grantor will indemnify and keep indemnified the
                              Organisation for GST and any related penalty that may arise
                              from an understatement of the GST payable on the supply of
                              the Project for which the Grantor issues a RCTI under this
                              Agreement.

14.       Approval.
          Signed on behalf of the Western Australian Department of Education and
          Training by;


          Name
          Position                                           [Executive Director]


Provision of Grants
All policy and procedural statements contained within this document are lawful orders for the purposes of section
80(a) of the Public Sector Management Act 1994 (WA) and are therefore to be observed by all Department of
Education and Training employees.
Uncontrolled when printed                                        33                                        Effective: 26 August 2007

          Signature:                                          .......................................................................

          Date:                                              .................................................................................




Provision of Grants
All policy and procedural statements contained within this document are lawful orders for the purposes of section
80(a) of the Public Sector Management Act 1994 (WA) and are therefore to be observed by all Department of
Education and Training employees.

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:4
posted:8/28/2011
language:English
pages:33