16 Dec 2010: Red tape causes Indigenous programs to fail

Promising Indigenous programs in rural and remote communities risk failure due to complex and onerous government reporting requirements, Commonwealth Ombudsman Allan Asher said today.

Releasing the findings of his investigation into the administration of Australian Government funding agreements, Mr Asher highlighted the significant difficulties experienced by Indigenous organisations that struggle to deal with the extensive bureaucratic obligations the Government places on them.

‘Australian Government grant schemes can be complicated and the people who manage them in rural and remote communities may not have the necessary skills or training to meet the Government’s expectations for keeping records or completing paperwork,’ he said.

‘Unfortunately, this means that funding and other resources are being diverted away from delivery to Indigenous communities of important programs, in order to deal with red tape.’

The catalyst for the Ombudsman’s investigation was a complaint made by an Aboriginal media organisation in a remote area, when its funding was withheld by the former Department of the Environment, Water, Heritage and the Arts (DEWHA).

The Department claimed the organisation was in breach of its funding agreement. However, following an Ombudsman finding that DEWHA’s reporting requirements were overly complicated, DEWHA reinstated the funding. Further, the organisation has since been refunded by the Office of the Arts, which has taken over responsibility for the grant program.

The Ombudsman’s report outlines principles for preventing problems common to government funding agreements. They cover improved support and training, simplifying reports, planning for the longer term, resolving disputes, giving clear explanations of funding conditions and communicating well.

The recommendations aim to improve the way government administers funding agreements with Indigenous organisations. They focus on finding a clearer path to success.

‘The issues identified in our investigation are consistent with feedback we have received from a range of people who provide services to Indigenous communities,’ Mr Asher said.

Download the report: Administration of funding agreements with regional and remote indigenous organisations—16|2010

Media contact: Media 02 6276 3759

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Date of release: 16 December 2010