The Australian National Audit Office (ANAO) recently highlighted several crucial lessons in their “Audit Lessons” on Grants Administration. While managing grants may not always be front of mind, it remains one of the most impactful ways for the Commonwealth to achieve targeted policy outcomes.
Unfortunately, the ANAO found that out of 16 performance audits of grants administration conducted between July 2019 and June 2024, none were fully effective, and only 56 percent were largely effective. This highlights the critical need for continuous improvement in grants management.
In my work with Synergy Law, I’ve had the opportunity to support Commonwealth agencies and NGOs in assessing and applying for government grants—alongside brilliant, multi-disciplinary teams at Synergy Group. Reflecting on those engagements, it’s clear that the ANAO’s lessons are more than just recommendations—they’re essential strategies and ‘how-to’ guides for effective grants administration. Here’s how you can apply these insights in your next grant administration effort:
A well-defined plan is the foundation of successful grants administration. The ANAO stresses the importance of early-stage planning, and our experience confirms this. From the beginning of grants administration engagements, we work closely with the Commonwealth and other NSOs to develop detailed Standard Operating Procedures (SOPs) and ensure we have the right tools in place from the start.
Our Recommendation: Start your grant process with a clear, detailed plan that covers every stage of the grant lifecycle, from design to evaluation. Make sure all stakeholders are aligned, and that resources are ready to support smooth execution.
The ANAO underscores the importance of well-crafted grant opportunity guidelines. In one recent project, refining these guidelines was a priority. By making them clear and comprehensive and providing a support “helpline,” we helped grant applicants understand the process better and reduced potential errors.
Our Recommendation: Focus on creating concise, accessible guidelines that provide clear instructions to applicants. This will streamline the application process and enhance overall compliance.
Probity is essential for maintaining the integrity of any grants process. The ANAO recommends planning for probity early on, and our team’s approach reflected this. During grant projects, we implement robust probity plans that include independent oversight. This ensures fairness throughout the grant administration process.
Our Recommendation: Establish a probity framework early in the process. Ensure independent oversight is in place to maintain transparency and fairness, reinforcing trust in the administration process.
The ANAO advises that grant selection should be competitive unless there are specific reasons otherwise. My experience echoed that guidance—it’s clear that a competitive, transparent process is crucial for fairness. By facilitating this, we ensured that all applicants were assessed equally, strengthening the legitimacy of the selection process.
Our Recommendation: Wherever possible, opt for competitive selection processes. This not only enhances fairness but also ensures that the best-suited applicants are chosen.
Decision-makers rely on accurate and timely information. In our engagements, we provided comprehensive support, managing large volumes of data and documentation. This ensured that decision-makers had the necessary insights to make informed choices.
Our Recommendation: Prioritise the accuracy and completeness of information provided to decision-makers. Implement strong data management practices to support informed, timely decisions.
The ANAO also highlighted active monitoring at every stage of the grant process as a critical factor in achieving value-for-money. Our firm maintains rigorous oversight throughout the any grant lifecycle, including regular data checks and transparent billing processes. This helps keep grant processes on track and ensures they deliver their intended objectives while achieving value-for-money.
Our Recommendation: Implement continuous monitoring practices. Regularly review progress and costs to ensure that the grant administration remains aligned with budgetary and policy goals.
Outcome-focused performance measures are vital for assessing the success of a grant programme. In my experience, working closely with the Commonwealth and other organisations helps define these measures, ensuring they align with the intended outcomes. This approach has provided a solid foundation for evaluating a programme’s effectiveness.
Our Recommendation: Develop clear, outcome-focused performance measures early on. These should align with the grant’s objectives and provide a basis for evaluating its success post-implementation.
The ANAO’s lessons on grants administration provide a valuable framework for managing grants effectively. By drawing on these insights and these recent experiences, you can enhance your next grants administration effort. Focus on thorough planning, clear guidelines, strong probity measures, competitive selection, accurate decision-making, active monitoring, and outcome-focused evaluation to ensure success.
