To Grant Assessment and Selection

ANAO Report No.10 2014–15 Administration of the Biodiversity Fund Program 76

5. Selection of Discretionary Grants

This chapter examines the four discretionary grants that were funded under the Biodiversity Fund program. Introduction

5.1 In

addition to grants made via competitive selection processes, grants may be made on a one‐off or ad hoc basis also referred to as discretionary grants. These types of grants are designed to meet a specific need, often due to urgency or other circumstances. 104 Under the Biodiversity Fund program, four projects were funded on a discretionary basis, with details of each grant outlined in Table 5.1 on the following page.

5.2 As

outlined in Chapter 3, the grant guidelines for Round 1 of the Biodiversity Fund program had outlined to potential applicants the possibility that discretionary grants would be available ‘where a competitive approach would not be effective or feasible in delivering the desired outcomes of the program’. 105 The guidelines for the subsequent rounds did not refer to the availability of discretionary grants under the program.

5.3 As

the awarding of discretionary grants was undertaken outside of the established funding rounds, the assessment process outlined in the published guidelines did not apply. Environment did not, however, establish an alternative process for assessing applications for discretionary grants under the program. 106 The development of an endorsed and transparent process to manage discretionary grants, including the establishment of a set of criteria against which applications could be assessed, would have enhanced the accountability of the selection and approval process for these grants.

5.4 The

ANAO examined the selection approach adopted by the department for each of the funded projects, to determine whether decisions were transparent, accountable and equitable. 104 Department of Finance and Deregulation, Commonwealth Grant Guidelines, July 2009, Canberra, section 2.7, p. 4. The CGGs the Commonwealth Grant Rules and Guidelines from 1 July 2014 apply to all forms of grants, including discretionary grants. 105 Biodiversity Fund program Round 1 Grant Guidelines, December 2011, p. 9. 106 In addition, the documentation retained by Environment does not indicate that the probity adviser provided advice in relation to the selection and recommendation for funding of the four discretionary grants awarded under the program.