(1) The agency administering a grant must
enter into a grant agreement with any organization or person who either
receives a one-off grant or ongoing grant assistance in excess of $5,000.
(2)
The
Chief Executive Officer of the
administering agency must ensure that each grant
agreement is adequate and legally binding.
(3)
A
grant agreement must provide for the
organization or person receiving the grant to agree to keep proper files and
accounting records in relation to the grant and to make these files and records
available upon request by the administering agency or the Auditor-General.
(4)
Grants
must only be paid in accordance with the terms and conditions in the grant
agreement.
(5)
No
variation to a grant agreementshall be made
without the written approval of the Chief
Executive Officer of the administering agency.
(6)
Administering
agencies must review each grant scheme each year to determine whether it is
achieving its specified outcomes as efficiently and
effectively as possible and, where it is not, must take action necessary to
improve its efficiency and effectiveness.
(7)
Unless
otherwise approved by Ministry of Finance,
all grants over $10,000 must be paid in monthly or quarterly installments to
ensure that:
(a)
there is an incentive for the organisation to comply
with the conditions of the grant; and
(b)
Government financing costs are minimised.
(8)
Acquittal
reports must be obtained before the next monthly or quarterly grants are paid
out.
(9)
The
administering agency must ensure that each grant has been used only for the
purpose for which it was provided.
(Financial Instructions 2005 s(25))