Evaluation of grants administration
On 25 January 2023, Commissioner Vanstone announced an evaluation of the practices, policies and procedures of a number of public authorities in relation to grants administration.
This important function is performed by many public authorities in South Australia. It involves the distribution of public money to eligible recipients to support business and innovation, provide emergency relief, aid projects and enrich communities. Grants programs vary in their purpose, monetary value and intended recipients.
Grants administration is a function that is vulnerable to corruption by the public officers administering them and by grant recipients.
The evaluation considered the way in which a number of public authorities administered grants and involved an audit of specific grants programs. The Commission assessed whether the practices, policies and procedures employed by public authorities that administer grants appropriately guard against corruption.
The evaluation involved requesting and reviewing information from public authorities, speaking with relevant parties and inviting submissions.
A staged approach
On 1 May 2023 Commissioner Vanstone announced her new approach to the evaluation following initial information gathering.
A number of public authorities provided large volumes of information about the grant programs administered in South Australia. The responses highlighted how differently grants programs are initiated, developed, implemented and managed.
The arrangements spanned open competitive and merit-based programs to strategically targeted invitation-only programs and ad hoc grants.
In view of the number and complexity of grants activity occurring within the public sector, the Commission progressed the evaluation in stages and produced a series of discrete reports to Parliament.
The staggered evaluation consisted of a number of theme-based stages, periodically selecting agencies for further review.
Phase 1: Administration of commercial, investment, research and entrepreneurial grant schemes
The Commission first turned its attention to the administration of commercial, investment, research and entrepreneurial grants schemes. These schemes, which are aimed at attracting investment and encouraging commercial opportunity in the state, are at risk of corruption because they involve significant financial incentives.
The Commission specifically evaluated the practices, policies and procedures of the Chief Executives of the Department for Trade and Investment and the Department for Industry, Innovation and Science as they relate to the administration of grants.
The Evaluation of grants administration – Phase one: Commercial grants report was tabled in Parliament on 28 November 2023.
Read the Phase 1 report
Evaluation of grants administration – Phase one: Commercial grants
Phase 2: Administration of emergency grants
The second phase of the evaluation analysed the grants which are administered in response to emergencies – including the COVID-19 pandemic, bushfire, flood and drought.
Corruption risks in emergency grant programs may arise due to the pressure and haste to expend funds to support communities and provide relief from social and economic hardship. Such pressures can lead to inadequate planning, budgeting, governance and review of such programs, leaving them exposed to potential corruption.
The Commission specifically evaluated the practices, policies and procedures of the Chief Executives of the Department for Primary Industries and Regions and the Department for Treasury and Finance as they relate to the administration of emergency grants.
Submissions were also sought from a range of agencies administering emergency grants and with regulatory functions in emergency management.
Read the Phase 2 report
Phase 2: Administration of emergency grants
Grants administration: Final report
On 27 August 2024 the Commission published Grants administration: Final report. The third and final report in the Commission’s Grants administration project offers general observations on grants management and raises some areas of potential reform for public sector grants governance.
Read the report
Grants administration: Final report
