Policy Statement

NSW Government agencies provide grants to local government councils and a range of non government, non-profit organisations for the purpose of providing a service to the community or undertaking a project of benefit to the community.

This policy statement and the accompanying guidelines are provided to support NSW Government grant giving agencies to engage in consistent and good practice grants administration.

Good practice grants administration

Getting grants administration right is an essential part of ensuring that the relationship between the Government and grants recipients works well for the benefit of the community.

Good practice grants administration must encompass the elements of good financial management and regulation, transparency, accountability, consistent practice and making decisions based on evidence of need.

Grants administration in NSW occurs within the legal and regulatory framework in which the NSW Government operates. A range of legal and regulatory requirements also informs the operations of local government and non government organisations. Grants administration also occurs within the context of cross-jurisdictional funding programs.

This environment presents administrative challenges and requires both grant giving agencies and grant recipients to work imaginatively and productively together to ensure the effectiveness of services and community projects regardless of the proportion of funding contributed by the NSW Government.

Principles have been established to support the working and funding relationship between the Government and grants recipients and form part of this policy statement. These principles embody the key considerations that emerged from consultation by the NSW Premier's Department with government agencies, local government, community, voluntary and consumer organisations, peak bodies and other NGOs, as well as existing best practice in Australia and overseas.

Reporting of grants to Non-Government Organisations

All Government Departments and authorities are required to publish details of grants made to non government organisations in their annual report. The requirements are set out in Premier's Memorandum 91-34.

Guidelines for grant giving agencies

The guidelines are the product of the Grants Administration Review conducted by the Premier's Department in consultation with grant giving agencies and grants recipients. The guidelines provide an operating framework for NSW grant giving agencies to develop, document and publicise their grants administration practice. The guidelines include good practice processes, tools and resources for each step in the grants administration cycle:

  1. Plan and design the program
  2. Promote the program
  3. Receive and process applications
  4. Offer grants and enter into a funding agreement
  5. Monitor and acquit grants
  6. Evaluate the program

Electronic links are also provided to information on: