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Audit reveals lessons for not-for-profits when sub-contracting government grant deliverables

The Commonwealth Auditor-General has recently tabled an audit report examining the effectiveness of the Federal Government’s $443.3m partnership with the Great Barrier Reef Foundation to improve the health of the Great Barrier Reef.

While the report found the grant had been appropriately invested, it put forward some useful recommendations for not-for-profits on sub-contracting out government grant deliverables.

The recommendations include:

  • Using open and competitive selection criteria as well as clear financial delegations and approvals from the board
  • Ensure a written sub-contract is used and that all applicable provisions of the head grant contract is included in the subcontract and having procedures to monitor subcontractor compliance
  • Having an overall methodology to monitor the progress of strategic/charitable targets (including interim) funded by the grant, and
  • Using a template form when reporting to the board in traffic light or dashboard style to efficiently convey issues and any suggested corrective actions.

To view the National Audit Office report in full, click here

To register for an NFPLaw webinar on Sub-contracting for NFP Organisations on 22 June, click here

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