Good practice reporting
An agreed reporting plan will reduce risks associated with funding Non-Government Organisations and help to ensure the delivery of the contracted service.
Key elements of reporting - Advice from the Auditor-General
Here are some of the key elements government agencies need to include in their reporting requirements when they monitor the performance of Non-Government Organisation s.
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Agree in advance a reporting plan that is fair and reasonable and addresses key risks. You need to be sure that the Non-Government Organisation has the capability to meet the reporting requirements and that you have not asked for more reporting than is necessary to manage the risks.
- Delivery of the agreed services or results should be able to be measured. This can be difficult and may require in-depth discussions at the negotiation phase.
- Ensure all the reporting requirements are carried out.
- Obtain evidence that the public resource has been spent for the public benefit. This could include:
- requiring annual audited financial statements within specified timeframes from Non-Government Organisations receiving government funding
- an in-depth breakdown of actual costs of projects funded
- requiring the contractor to supply disbursement details
- reviewing costs to see if they are reasonable and if there is any variation – if so, the funder should verify the expenditure and supporting documentation.
- Develop indicators to provide evidence that the funded authority has contributed to the agreed outcome.
- Make final payments only on receipt of final project reports, including financial expenditure reports.
- Ensure the assessment of the final provider report is discussed with the provider and fed into the assessment of future grant applications.
- Carefully review the costs of the project, what has been achieved and what still has to be reviewed before progressing to the next phase.
Reports from the Office of the Auditor General
The advice above comes partly from the Auditor General’s Report on an Inquiry into Public Funding of Organisations Associated with Donna Awatere Huata, MP (2003).
Advice is also drawn from two further reports produced by the Auditor-General, Risk-based Approach to Contracts (2004) and Funding for Results: What Does the Auditor-General Expect? (2005).
The good practice guide Principles to underpin management by public entities of funding to non-government organisations (2006) sets out the principles that the Auditor-General expects public entities to follow when managing funding arrangements with Non-Government Organisation s.
