Government grants have a significant impact on Australia’s welfare, particularly in moments of crisis. However, the urgency to swiftly allocate funds can result in higher fraud rates, rising admin costs and less-than-ideal outcomes for participants.
In the context where both public expectations and scrutiny are high, the question emerges: how can governments balance speed with diligence – ensuring money gets into the hands of those who need it?
Our latest report delves into the current state of grant management, unpacking the challenges and potential avenues for shaping a fresh approach.
The government grants landscape
- $81 billion was distributed through grants from the Commonwealth Government in Australia in FY22/23
- 8% increase in federal grants funding from FY22/23 to FY23/24
- The Commonwealth Fraud Prevention Centre estimates $1 billion lost to fraud in FY2021
- Typical admin costs run at between 3% and 10% of a program's budget
Key questions for grants administrators
- What level of confidence do you have that funding is going to the right recipients?
- Are your grant programs achieving the intended outcomes?
- Does your admin cost percentage truly represent value for money?
- How much of each program is wasted or lost to fraud?
Improving grant management workflows and processes
Simplify complex processes
Grant programs are often set up quickly to aid urgent needs, but this can lead to rushed assessments and potential fraud. Connecting siloed operations, simplifying processes and addressing ageing technology can help administrators deliver an optimal experience.
Streamline the business of grants
An opportunity exists to enhance both the government grant journey for recipients and the integrity of administrative practices. Standardising processes across functions can enhance recipient outcomes, cut costs and foster community trust.
Reduce the cost to serve
Overheads consume much of a grants program’s budget, impacting how much funding makes it to recipients – and often administrators don’t have a clear picture of cost to serve. Improving efficiencies by just 1 percent could result in an additional $810 million being available to eligible recipients.
KPMG's powerful grant management platform
From program design and execution to closing and monitoring, KPMG Powered Grants offers an end-to-end solution. Combining our deep expertise with the latest tech, we help governments swiftly set up and manage grants without compromising program integrity.
We help ensure timely and targeted funding distribution, allowing administrators to focus on high-value tasks rather than repetitive manual work. Whether you need the complete platform or individual modules, we can make sure you’re optimised at each step of the journey.
Download the report
Modernising government grant management: Where speed meets diligence for exceptional recipient outcomes.
Download report (PDF 3.3MB)
