Commonwealth Low-risk Grant Agreement Risk Tool
Using the risk tool
Use the questions in the risk tool to help decide whether the Commonwealth Low-risk
Grant Agreement Template (the template) is appropriate for the grant.
If you have questions about the risk tool, please contact grants@finance.gov.au.
1. Threshold questions
Some grant activities are outside the scope of the template.
Answer the following questions to determine whether the grant is within scope.
yes
no
Does the grant involve purchasing or leasing land or buildings?
Does the grant involve complex intellectual property rights?
Is the grantee located outside Australia?
If the answer to any of the above questions is ‘yes’, you should not use the template.
If the answer to all of the questions is ‘no’, then proceed to the next section.
2. Identifying program risks
A risk based approach is in place for consideration of new or revised program
guidelines (including guidelines for grant programs).
Answer the following question to determine whether the grant is within scope.
low
med
high
What is the agreed risk rating of the grant program guidelines?
If the risk assessment rating was ‘medium’ or ‘high’, you should not use the template.
If the grants program guidelines risk assessment rating was ‘low’, you should proceed
to the next section.
If the grant guidelines do not have to be assessed, as they relate to one-off or ad hoc
grants, you should proceed to the next section.
July 2014
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Commonwealth Low-risk Grant Agreement Risk Tool
3. Assessing grantee and activity risks
In addition to the risks identified at a grant program level, individual grants may have their own risks relating to both the activity and grantee.
Answer the following question to help determine whether to use the template.
Grantee/activity risks
Amount of funding
Length of agreement
Nature of payments
Nature of activity
Consequence of grantee’s failure to deliver
grant outcome
Relationship with grantee
Nature of grantee industry or sector
Nature of any members of the public likely to
be affected by the grant
July 2014
low
medium
high
Small/insignificant in totality and as a
proportion of total grant program
Moderate either in totality or as a proportion
of total grant program
Significant either in totality or as a proportion
of total grant program
One year or less
Up to four years
More than four years
Payments occur only at milestones within a
single year
Payments occur at milestones over multiple
years
Single/one-off upfront payment
Single activity aimed at local community
Single activity aimed at multiple jurisdictions
Multiple or additional activities in single or
multiple jurisdictions
Minimal impact to achievement of outcomes
at program level
Moderate impact to achievement of outcomes
at program level
High impact to achievement of outcomes at
program level
Grantee has previously delivered similar
outcomes for your entity/Commonwealth
Grantee has previously delivered different
outcomes for your entity/Commonwealth
Grantee has not delivered outcomes for the
Commonwealth before
Well established and stable
New or emerging
Volatile or prone to controversy
Unlikely to affect particular groups of the
public directly
Likely to affect non-vulnerable or at risk
groups of the community directly
Particularly vulnerable or at risk members of
the public likely to be directly affected
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Commonwealth Low-risk Grant Agreement Risk Tool
If a majority of the answers to the above questions are ‘low’ or ‘medium’ the template is likely suitable for the grant.
If a majority of the answers to the above are ‘medium-high’ or ‘high’ the template may not be suitable. However, as the risks are not weighted, you
will need to determine if overall the risk is ‘low’. For example, a single/one-off upfront payment or an agreement over a numbers of years may
increase or decrease the overall risk depending on the nature of the grant, such as where milestone payments over a number of years mitigates
against the risk of failure to deliver.
[You should record the basis of you risk assessment.]
Approval:
July 2014
Date:
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