Rethinking Grants Management Delivery in Australia’s Public Sector 

To restore public confidence and deliver more than just fast funding, agencies must address the risks inherent across the grants management life cycle. The most common and interrelated issues include:

• Fragmented delivery – Assessment, approval and acquittal are often handled by separate teams with little or no continuity. Those assessing applications rarely see how funds are used, and those acquitting funds have limited insight into original program intent. This disconnect weakens accountability, erodes learning and reduces overall program effectiveness.
• Capability constraints – Many agencies are understaffed or rely on personnel without the skills to manage complex grants programs. During COVID-19, for example, some applications were reportedly pushed through by assessors with little financial background, resulting in misallocated funds, limited oversight and grant recipients entering insolvency. These capability risks persist today.
• Data  vulnerability – Reliance on poorly integrated or insecure digital grants management platforms can lead to data loss, data breaches and limited data quality, Additionally, valuable data collected during assessment is process is often underutilised, reducing opportunities to enhance monitoring, evaluation, and acquittal, and leaving key risks and insights unaddressed.
• Political-policy misalignment – Agencies often see evidence-based funding recommendations overridden by ministerial discretion. Balancing transparency and equity with political pressure, particularly around elections, requires active management. Left unaddressed, this tension puts programme integrity at risk.

Taken together, these issues point to a core problem: grants are being delivered as on-off transactions, not as part of a considered and cohesive approach that focuses on the achievement of program outcomes. If these risks are not addressed at the outset of the delivery phase, agencies are likely to repeat the same missteps that have undermined public trust in the past.

A new approach: Design with the full grants management life cycle in mind

Rather than repeating the cycle of reactive grant programs, there is an opportunity to reframe the grants management life cycle as a strategic continuum. That means embedding capability, accountability and outcome measurement into every stage, from initial design to final evaluation. It also means assembling the right expertise: skilled assessors who can interpret financial and organisational information, flag risks and connect policy intent with proposed delivery.

Here’s what reimagining the grants management life cycle process could look like:

1. Design for the end game

Start with the finish line. Program guidelines should define success clearly and transparently, with reporting, evaluation and community outcomes measurement baked in from the beginning. Designing with outcomes in mind ensures the grants management process stays aligned to purpose, not just process.

2. Assess for capability and impact

Meeting eligibility requirements doesn’t guarantee value. Effective grants assessment goes beyond compliance checks and involves evaluating feasibility, financial health, risk exposure and alignment with policy goals. Can the applicant deliver what it promises? Does it have the experience, systems and governance to manage public funds responsibly?

3. Monitor what matters

Once funds are awarded, many agencies fall into a “set-and-forget” mindset. Smart monitoring, however, can surface issues early, support recipients who need help and capture valuable data for both compliance and evaluation. Monitoring is a strategic tool to ensure taxpayer dollars are being put to good use and lessons are being captured in real time.

4. Acquit with growth in mind

Acquittals are often disconnected from the initial decision-making process. Teams tasked with verifying how funds were spent rarely know what risks were flagged, what the intended outcomes were or why a recipient was selected in the first place. It’s important to close that loop. Effective acquittals should connect funding decisions with results, draw insights that inform future programs and strengthen accountability across the board.

Delivering more than dollars

It can be easy to measure success by the amount of funds distributed, especially when facing political deadlines and public pressure. But the true barometer of success is what those funds achieve. Grant programs exist to build stronger communities, create equitable opportunities and deliver lasting public value.

Achieving that requires more than compliance — it requires risk-aware design, delivery and oversight. A lifecycle approach to grants management helps agencies manage the full spectrum of risks across planning, assessment, monitoring and acquittal. It ensures public funds are not only spent efficiently but spent effectively and ethically as well.