Good practice funding advice from Treasury
Treasury has published guidelines to encourage better contracting practices by government agencies involved in negotiating with NGOs for the provision of services.
Guidelines for Contracting with Non-Government Organisations for Services Sought by the Crown
Section 1.2: Defining the Service gives advice on consulting NGOs. A shorter version is reproduced here.
The agency should decide upon and describe what it is purchasing and funding. This should be informed by a needs analysis that draws upon:
- the objectives sought
- information on the effectiveness of government interventions (eg, evaluations)
- any relevant national standards or legal requirements
- appropriate analysis, including an assessment of the needs of the users of the service
- an understanding of the NGOs available to offer services
- consultation with ultimate users, NGOs, potential providers and other stakeholders.
The importance of meaningful consultation within the context of policy development and needs assessment has been consistently highlighted by voluntary organisations, iwi/Māori, and NGOs.
It is usually sensible to develop the description of the service in consultation with NGOs (current and potential), users, other government agencies, and other stakeholders. Many NGOs regard consultation as very important. NGOs that provide services to their communities will often have a good understanding of the particular needs of their communities. Consultation may need to proceed at community level and services provided at that level.
Questions that may need to be discussed include:
- What outcomes are being sought?
- What is an appropriate level of service?
- Will the services be accessible to and used by the target group?
- How would NGOs and service users prefer that the service be delivered?
