Welsh Government expectations of grant recipients

Grant funding is one of Welsh Government’s most important mechanisms for delivering ministerial priorities and making a real difference to the lives of people in Wales. Welsh Government has a duty to protect public funds, ensuring they are well-managed and used only for their intended purposes. As part of performing our duty, it is essential there is public confidence in our grant recipients.

The majority of organisations applying for or receiving Welsh Government grant funding share the same vision of upholding the highest standards of conduct and integrity by living and instilling fairness, equality, and other core public values that sit at the heart of Welsh Government’s policies. The impact of living out these values is significant, driving a positive and powerful change in culture which benefits all of us, the communities we serve and are part of.

This document is designed to highlight and clarify the types of behaviours, cultures and values Welsh Government expects to see ‘lived out’ by its grant recipients. It also outlines what Welsh Government as a funder, can do, should a grant recipient fall short of upholding these core values and behaviours.

Integral to Welsh Government’s approach to how it exercises all its functions is to take account of equality, and to consider the impact of policies on people who share protected characteristics (including, for example, age; gender; disability; gender reassignment; marriage and civil partnership; pregnancy and maternity; race; religion or belief; sex; sexual orientation), as detailed further within the Public Sector Equality Duty (PSED), set out in the Equality Act 2010.

Welsh Government is committed to driving anti-racism and anti-oppression, having zero tolerance of bullying, harassment, discrimination, abuse, exploitation or any kind of inappropriate behaviour and culture. Welsh Government expects organisations to treat their staff, volunteers or any persons associated and active in the organisation’s work, fairly.

We want to work with organisations who are proud of their reputation what they deliver, and their conduct. Well-run organisations have appropriate governance structures in place and can deal with the many issues that arise in running any organisation. This includes ensuring their employees, trustees, directors, volunteers, board members, or individuals appointed by the organisation, understand their duties and responsibilities, having the knowledge, skills, and support structures to carry out their roles in accordance with the relevant legislation relating to grant recipients.

Communication is a key element in working together to deliver Welsh Government objectives. We want to work with organisations building on resilient, meaningful, trusted partnerships and fostering new robust relationships sharply focused on delivery. We expect grant recipients to be open and honest in their dealings with Welsh Government, including when things do not always go to plan, confident to raise issues and discuss with us at any point during the lifecycle of the grant.

We expect organisations to maintain appropriate and proportionate processes and procedures in place, to mitigate against any actual, potential, or perceived conflict of interest through their work. This also minimises any risk to public funds. Regularly reviewing those processes and procedures is essential too, so information is up to date, and nothing overlooked.

A culture of accountability within an organisation promotes increased morale, self-awareness, commitment, and consequently, more effective performance. We expect organisations to encourage and support all their employees, trustees, directors, volunteers, board members and individuals appointed by the organisation, to take responsibility and ownership for their decisions, actions, behaviours, and performance regardless of their role or level held.

As a minimum, organisations should have robust policies and procedures in place which clearly outline who is accountable for decisions, including financial ones; how grant funding is used and monitored; governance; risk management arrangements and fundamental standards of conduct, particularly regarding workplace culture and combatting discrimination; harassment; bullying; and safeguarding staff, service users, and the public.  Subsequently, if and when any issues arise, these organisational foundations provide welcome support and can help address them appropriately and consistently, in a clear, open way.

Organisations should have their own complaints procedures readily available, ensuring that when concerns are raised, they are addressed through internal procedures in the first instance.

Welsh Government has a responsibility to ensure that the grant funding delivers value for money, not only in financial terms but also in terms of broader social, cultural and environmental benefits/outcomes. This includes ensuring the grant objectives are met and the grant funding is spent in line with the standards of governance the public expect.

Well-run organisations ensure they have financial, risk management and control systems in place which include appropriate and proportionate due diligence processes. This involves undertaking regular checks to identify any risks or issues that could expose a grant recipient or Welsh Government to potential financial loss, fraud, or reputational damage. We recognise that processes and systems will need to be proportionate to the size and complexity of the grant scheme and the recipient. For instance, newer or smaller organisations will often have slightly different oversight mechanisms compared to larger organisations.

Welsh Government also expects due diligence in other aspects of organisational operations, such as fostering a positive workplace culture and combatting discrimination, harassment and bullying, and the safeguarding of staff, service users and the public.

Welsh Government has zero tolerance of any form of corrupt practices including fraud. We expect organisations to safeguard funding by remaining vigilant, proactively looking out for any fraudulent activity, and the risk of fraud, within their organisations. Should any corrupt or fraudulent activities be suspected or discovered, we would expect to be notified immediately.

In accepting Welsh Government grant funding, organisations are expected to understand and agree to the full terms and conditions of funding which form part of the legally binding grant agreement. This can also mean telling us, at any time during (and in some cases after) the grant term, about any actual, potential, or perceived material changes which might impact on their ability to remain compliant with the terms and conditions.

Welsh Government has an obligation to comply with requirements of managing Welsh public money in all its dealings and you can find out more here:

Managing Welsh public money

If we receive a concern, including about possible misuse of Welsh Government funding, discrimination, harassment or bullying in organisations we are funding, we will consider, based on risk and circumstances, whether there are grounds for Welsh Government to take further actions to safeguard public funds. This may include working with organisations to establish whether there is any merit in the allegations, alongside other appropriate and proportionate actions. Not every concern raised will be within our remit, therefore we may refer the matter to other agencies when required.

Welsh Government adopts an objective approach when considering concerns it receives, ensuring fair and respectful treatment of the organisation which is the subject of the concern. In any instance where it is required that Welsh Government acts in relation to a concern, it will look to resolve issues consistently and constructively, listening to partners and stakeholders. Welsh Government is dedicated to maintaining fairness, transparency, and proportionality in its approach.

Charity Commission

WCVA (refer to specific information around governance)

Business Wales

Managing Welsh Public Money

The Seven Principles of Public Life

Equality Act 2010 guidance

Code of Practice for Funding the Third Sector 2014