Details the process for assessing Regional Grants Scheme applications submitted by Regional Development Commissions in WA, including the use of independent consultants and conflict of interest management.

AnsweredQoN 3643Legislative Council
Asked
15 March 2011
Portfolio
Regional Development

QuestionView source ↗

I refer to the Regional Grants Scheme, and ask -
(1) What is the process for assessing applications submitted by Regional Development Commissions as applicants to the Regional Grants Scheme?
(2) Who assesses these applications?
(3) If the assessment is undertaken by an independent third party, how is this independent third party appointed and by whom?
(4) Identify all independent third party consultants used to undertake these assessments?
(5) What is the total cost to date of engaging independent third party consultants to undertake the assessments?
(6) What is the process for ensuring the independence of these consultants?
(7) What is the process for verification of advice provided by independent third party consultants?

AnswerView source ↗

Answered
13 April 2011
Responded by
Parliamentary Secretary representing the Minister for Regional Development
Response time
29 days
(1)-(2) An application by a Regional Development Commission for Regional Grants Scheme funding is either initially assessed by an Assessment Panel or internally by a person independent of the project or initiative in question whose recommendation is considered by the relevant Commission Executive and then submitted to the Board for consideration.  The Board reviews applications and determines recommendations against Royalties for Region's criteria, the Commissions' Strategic Plan and other relevant government regional plans. In most circumstances the respective Board will also submit the applications through the Department of Regional Development and Lands to the Regional Development Council to endorse. The recommendations/approvals are then forwarded to the Minister for Regional Development for approval/endorsement and referral to Cabinet.
As per the Regional Grants Scheme Guidelines the following is applied:
· Applications up to and including $250,000 are assessed and approved by the Commission Board.
· Applications in excess of $250,000 and up to and including $500,000 are assessed and approved by the Commission Board and referred to the Minister for Regional Development for endorsement.
· Applications in excess of $500,000 are assessed by the Commission Board and referred to the Minister for Regional Development for approval.
· All approvals are referred to Cabinet.
(3) Goldfields Esperance Development Commission - External representatives of local agencies are identified and invited by the CEO to participate in the process.
Great Southern Development Commission - The Great Southern Development Commission (GSDC) invited three consultants to submit proposals and price quotations on the RGS Contestable Grants Independent Assessor scope of works. A panel consisting of Commission staff members assessed the EOIs and a successful candidate for the position of Independent Assessor selected from the three consultants.  For the RGS Town Centre Enhancement Program the GSDC request a quote from a specialist Land and Town Centre Development Consultant to provide external assessor services.
Gascoyne Development Commission - The Gascoyne Development Commission (GDC) engages a third party to assess those applications requesting funding of $150,000 or more, which require additional information in the form of a business case. The independent assessment is undertaken by a practicing accountant with CPA accreditation. This person was selected after two businesses were requested to quote to provide this service.
(4) Third party consultants have been utilised by the Great Southern Development Commission and the Gascoyne Development Commission:
GSDC - The Independent Assessor for the Great Southern RGS Contestable is Dr Richard Ball of Keston Technologies and Mr Jon Bettink (an Independent Consultant) is the assessor for the Town Centre Enhancement Program.
GDC - Midwest Financials, Accountants and Business Advisors, Mr Jim Dillon.
(5) GSDC -$22,320
GDC - $15,950
(6) GSDC - All persons, inclusive of the Independent Assessors, that are involved in the assessment and decision making processes are required to complete a Conflict of Interest declaration for each application. This process ensures independence is maintained.
GDC - Mr Dillon is required to declare any conflicts of interests and is subject to a confidentiality agreement.
(7) GSDC - Advice provided by the Independent Assessor on the Regional Grants Scheme is scrutinized by a four member panel that is a sub group of the Board of the Commission, the Board itself and the final Government process. . Advice provided by the Independent Assessor on the Regional Grants Scheme Town Centre Enhancement Program is scrutinized by the Executive of the GSDC prior to submission to the Board and the final Government process.
GDC - The independent review provides the Board with an additional, critical financial assessment of those projects of higher value. The independent review does not approve projects but provides another level of scrutiny and review of the applications.
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