Better value for governments and better outcomes for citizens is possible. This submission acknowledges that the Australian Department of Social Service is giving careful consideration to how improved grant-making can be a powerful lever for driving these improvements in the community services sector. The right grant-making model that offers both delegation of responsibility and accountability to performance objectives can be used as a tool to enhance program effectiveness and efficiency. Yet, a tool is only as good as its user. Sound grant-making expertise as well as improved awareness and understanding of the realities of frontline service delivery in the public service will help to ensure that the government gets the most out of grant-making programs.

This submission offers five recommendations in response to Area of Focus 3: Providing Longer Grant Agreement Terms:

1. Offer longer term grant agreements of 5+2 years with a steady, predictable stream of payments in return for delivering services or running programs as agreed. 
2. Adopt a quasi-contractual grant-making agreement model. 
3. Use the agreement to specify outcomes but offer flexibility to community sector management regarding how these outcomes are achieved. 
4. Provide longer timeframes on national partnership agreements. 
5. Provide active support during the grant-making process.

The Susan McKinnon Foundation also offers two additional recommendations in response to the General Question: What are the problems or challenges that have been overlooked?
6. Consider how to (re-)establish grant-making and procurement as skilled disciplines within the public service.
7. Public sector policy-makers and grant managers should spend time in the community service organisations that receive government grants.