ANAO Report No.10 2014–15 Administration of the Biodiversity Fund Program
85
was up to two years. The long form funding agreement was for projects in excess
of two years and where funding exceeded 80 000. The key clauses included in
the short and long form funding agreements were similar, however, the short
form had reduced reporting requirements and generally, the total project funding
was paid at the commencement of the project. Such an approach is beneficial for
proponents of smaller, less complex projects and demonstrates a flexible
approach from the funding provider. The ANAO’s review of 64 Round 1 funded
projects found that all projects had been provided with the appropriate short or
long form funding agreement.
6.5 In
2012, subsequent to the completion of Round 1, Environment’s standard funding
agreement template for grants programs was updated. The updated template
was used as the basis for all subsequent Biodiversity Fund program rounds,
also taking into account internal legal advice. This revised template provided
greater clarity, by including project‐specific information early in the agreement,
and through the inclusion of additional terms in the definitions list.
Negotiating and executing funding agreements
Execution of Round 1, NATI and Round 2 funding agreements
6.6 Following
the then Minister’s approval of funding recommendations, approved
applicants in Round 1, NATI and Round 2 were notified of their selection
and provided with a copy of the proposed funding agreement. Funding
agreements were to be signed and returned to the department within 10
calendar days for Round 1, and 14 days for NATI and Round 2. For the latter funding
rounds, this notification and return period overlapped the ‘caretaker’ period
for the 2013 Federal Election, which had consequences for a number of approved
projects.
120
6.7 Once
the announcement of the date of the 2013 Federal Election had been made,
government agencies had a short period of time to conclude matters that would
not normally be progressed during the caretaker period.
121
Environment attempted
to conclude as many of the Round 2 and NATI funding agreements
120 Successive governments have accepted that, during the period preceding an election for the House of Representatives, the Government assumes a ‘caretaker role’. While the ordinary business of
government administration is continued such as administering pensions and other payments, the Government avoids: making major policy decisions that are likely to commit an incoming government;
making significant appointments; and entering into significant contracts or undertakings. 121 The caretaker period commences at the time the House of Representatives is dissolved and continues
until the election result is clear or, if there is a change of government, until the new government is appointed. The caretaker period for the 2013 Federal Election commenced at 5:00pm on 5 August 2013.
ANAO Report No.10 2014–15 Administration of the Biodiversity Fund Program
86
prior to the commencement of the caretaker period as was possible. The
department also sought advice from the Department of the Prime Minister and
Cabinet PMC regarding the execution of the outstanding funding
agreements. On the basis of PMC advice, the department proceeded to execute
funding agreements that had been returned within the nominated timeframe.
6.8 Environment
informed the ANAO that, following the Federal Election, a
briefing was provided to the incoming Minister regarding the outstanding non
‐executed funding agreements for previously approved Biodiversity Fund
program projects. There were three outstanding Round 2 projects and one
outstanding NATI project, where proponents had not returned executed funding
agreements to the department within the nominated period, with a total
value of 5.87 million. The Minister decided not to proceed with executing
the outstanding funding agreements and wrote to each applicant advising
them of his decision. Investing in Tasmania’s Native Forests round
6.9 The
Investing in Tasmania’s Native Forests round was being concluded at
a similar time as the NATI and Round 2 funding rounds. The brief to the Minister
recommending the approval of five projects under the Investing in Tasmania’s
Native Forests round was approved by the Minister on 18 July 2013. While
Environment informed the ANAO that, on the date of approval, the department
sought the Minister’s approval to announce the successful applicants
in the Investing in Tasmania’s Native Forests round and to provide them
with funding agreements, this approval was not given. Nonetheless, on 26
July 2013 the Minister’s office provided Environment with signed copies of letters
to the five successful applicants advising them of the outcome. The ANAO
was advised that the department’s usual practice was to wait for the Minister
to formally announce the outcomes of a grants selection process, and for
the Minister to agree to the letters being dispatched to approved applicants. The
letters to approved applicants in the Investing in Tasmania’s Native Forests round
were not, however, sent by the department.
122
6.10 The
department informed the ANAO that funding agreements were not
provided to approved applicants under the Investing in Tasmania’s Native Forests
round due to broader matters relating to Biodiversity Fund program
122 The department did, however, inadvertently publish for a short period of time the list of successful applicants on its website.
