Code 4: Open communication
Shared understanding
Criterion 4.1
Preliminary discussions are arranged between parties to strengthen their relationship and to develop a shared understanding by all parties.
Indicators required to achieve this include:
4.1.1 Development of a shared understanding of how parties will work together.
4.1.2 Mutual agreement and understanding of all processes involved in the funding agreement. 1
Process strengthens understanding
Criterion 4.2
Processes will support and strengthen understanding between the parties to the funding agreement.
Indicators required to achieve this include:
4.2.1 Accurate information is available to all parties to support decision-making.
4.2.2 The agreement and relationship between the parties is based on the presumption that each party has the capacity to perform its obligations.
4.2.3 Opportunities are provided for constructive interaction between the parties during the life of the agreement.
4.2.4 Opportunities are provided for all parties to the agreement to understand the mission and strategic direction of the other parties to the agreement.
Access to decision-makers
Criterion 4.3
All parties to the funding agreement will allow access to appropriate decision-makers throughout the life cycle of the relationship and the agreement.
Indicators required to achieve this include:
4.3.1 The funding agreement specifies the decision-making roles and responsibilities of the key personnel. Where possible, the parties to the agreement should provide a single point of contact.
4.3.2 Parties to the funding agreement will deal with key personnel with the authority and ability to make decisions in relation to the agreement.
4.3.3 Any changes in key personnel are to be shared with the other parties to the funding agreement at the earliest opportunity.
4.3.4 Recognition that the governing body holds the overall authority for decision-making within the non-profit organisation.
Feedback
Criterion 4.4
Opportunities for honest and constructive feedback will be provided.
Indicators required to achieve this include:
4.4.1 Processes provide for the regular exchange of information between the parties to the agreement.
4.4.2 Opportunities are provided for comment and feedback on the working relationship between the parties. Dependent on the parties involved and what is reasonable for all parties, feedback opportunities may be on an individual basis or at the sector level of non-profit organisations.
4.4.3 An agreed process for responding to changing circumstances and achieving both parties’ outcomes is established.
Dispute resolution
Criterion 4.5
Dispute resolution and grievance processes will be included in the funding agreement and clearly expressed.
Indicators required to achieve this include:
4.5.1 The dispute resolution and grievance processes are designed to have a staged approach which seeks to resolve problems as close to the source, as early as possible, and with the least cost to the organisations.
4.5.2 Both parties will discuss perceived problems and will provide reasonable time as agreed as part of contract negotiations to resolve those problems (except in the case of illegal activity), before imposing any penalty or invoking provision for breach or termination of the agreement.
4.5.3 The dispute resolution and grievance process is:
(a) Accessible;
(b) Timely;
(c) Consistent; and
(d) Fair.
4.5.4 Information about the role and functions of the Office of the Ombudsmen is provided to the non-profit parties to the agreement.
1 Office of the Auditor General, 2008. Summary of features of, and expectations, for, the different categories of funding arrangements, Wellington, NZ.
