First, Selection of Discretionary Grants

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