Code 6: Integrity
Management of public resources
Criterion 6.1
All parties to the funding agreement have processes in place to ensure proper management of government funding.
Indicators required to achieve this include:
6.1.1 All parties to the agreement take responsibility for the proper management of and accountability for public funds.
6.1.2 Effective financial information and reports are provided in a timely manner.
6.1.3 The non-profit organisation uses all reasonable endeavours to prevent fraud.
Management capability and capacity
Criterion 6.2
Staff within both the funding agency and the non-profit organisation have the capability and capacity to perform their functions.
Indicators required to achieve this include:
6.2.1 Staff involved in the management of the funding agreement have clearly defined roles and responsibilities.
6.2.2 Where changes in personnel occur, the parties to the agreement ensure there are clear transition processes to minimise the impact of the change on the other parties to the agreement.
6.2.3 All parties to the funding agreement operate in a manner consistent with good employer practices.
Fair and reasonable funding
Criterion 6.3
The funding set out in the agreement is fair and reasonable.
Indicators required to achieve this include:
6.3.1 A process for determining costs is established. The costs of the non-profit organisation in managing the funding agreement should be considered.
6.3.2 When the funding is not intended to meet the full cost of the activities specified in the funding agreement this is expressly recognised.
6.3.3 Recognising the importance of maintenance of infrastructure (human resources and physical assets) and systems, and the provision of safe services, project, or activities.
6.3.4 Agreeing prior to commencing the activities in the funding agreement, the status of any funds surplus at the expiry of the agreement.
6.3.5 Agreeing prior to commencing the activities in the funding agreement, a fair way to deal with the escalation of costs beyond the control of the non-profit organisation.
6.3.6 All parties to the agreement ensuring that the safety of a service or outcome is not at risk due to a low-cost service or activity being offered and accepted.
6.3.7 Payments may be made in advance of expenditure where there is a clear need and where this represents value for money.
