Document ID: chunk:federal_register_of_legislation:F2024L00854:body:0:p12
Version: federal_register_of_legislation:F2024L00854
Segment Type: other
Provision Reference: 
Character Range: 32471–35827

a closed, non-competitive grant.
    7.5.       Officials should have regard to all relevant planning issues, including the need to:[57]
          * establish a rationale for grant opportunities, particularly what outcomes are expected and how these will be measured;
          * define the operational objectives;
          * communicate effectively with potential grantees and key stakeholders;
          * undertake risk identification and engagement;
          * design grant opportunities to achieve value with relevant money;
          * ensure that eligibility criteria reflect the operational objectives and policy intent;
          * clearly identify decision makers and their roles;
          * design grant opportunities for accountability, probity and transparency;
          * carefully consider the application and selection process to be used;
          * establish performance and evaluation measures;
          * select an appropriate funding strategy and grant agreement;
          * consider the Australian Government's accounting treatment;
          * develop appropriate documentation, such as grant opportunity guidelines and application information;
          * consider legal, taxation and policy matters and seek advice where appropriate; and
          * implement robust governance arrangements.
    7.6.       Grant programs and grant opportunities are established to achieve a government policy outcome and should be designed to enable closure on successful completion and be promoted in a way that does not raise expectations that the grant program or grant opportunity will continue into perpetuity.
Risk Identification and Engagement
    7.7.       Risk is part of the environment in which government operates. Understanding, accepting and managing risk is part of everyday decision-making within government. Accountable authorities have a duty to establish and maintain systems relating to risk and control.[58] They should develop a positive risk culture within their entities, supported by appropriate frameworks and processes. A key element of grants administration is to identify and engage with risk. Officials should be conscious of the risks of a grant opportunity, make informed decisions in managing these risks and identify and harness potential benefits.
    7.8.       Risk identification and engagement should be built into an entity's grants administration processes. Risk identification and engagement activities will vary depending on the entity, grant opportunity, grant, and grantee. Some risks can appropriately be mitigated or managed through the grant agreement, while other risks are better managed across the grants lifecycle, such as planning and design, the application and selection process or the ongoing relationship between officials and grantees.
    7.9.       Risk can be categorised a number of ways. The CGRPs use three broad categories: grant program or grant opportunity risk; grantee risk; and grant activity risk.
    7.10.   Risks involving the grant program or grant opportunity relate to the planning, development and implementation of the grants by the relevant entity, such as:
          * the nature of the grant opportunities (i.e. scope, complexity, uniqueness, quantum of funds, etc);
          * design of the grant opportunities (i.e. a new or novel approach, having clearly