Common phrases used in grants.
Grants phrases can be confusing, especially if you are new to them.
Whether you've applied before or are just starting, there are common terms you'll come across. Understanding these terms can make it easier to apply for a grant and go through the process.
This article aims to help you understand what each of the below common grant phrases mean.
GrantsNT and profiles
To apply for a grant offer by the Northern Territory Government, you must use GrantsNT.
In GrantsNT there are two different profiles.
An Individual account is a personal login to GrantsNT. You will use your individual email to set up your account.
An organisation profile can have many accounts associated with it. Within GrantsNT, they are called members of an organisation.
Depending on the grant, you may be required to apply as an organisation, rather than under your individual account.
Applicant
If you are a business or a sole trader and are applying for a grant, you are referred to as the applicant.
Service provider
A service provider is a business or supplier who is going to provide an applicant with a service under a grant. An example is a web designer creating a new website for a business (the applicant).
Some grants programs require service providers to be approved in the system to be able to complete works under the grant funding. An example is the Business Growth Program Service Providers. You can see some approved suppliers on the published directory.
Request for additional information (info)
If you have applied for a grant, a request for info is when you have been asked to provide more information. This may be because the Grants administration team needs more information. This may be because the Grants administration team needs more information to meet a certain part of the grant criteria, or you may have missed a step in the application process.
You will have 10 business days to provide this extra information. If you need an extension, you can contact the Grants administration team. If you need an extension, you can contact the Grants administration team. They may require you to withdraw your application and reapply if you require a lot more time to gather the extra information.
Reporting
If you are successful in receiving grant funding, it is normal to be asked for reports on the outcome of the grant so it can be filed against your grant. This can also be requested midway through your grant as well.
What you will have to report on will vary depending on the grant. You may receive requests for a wide variety of evidence needs such as progress reports, receipts, produced documents, etc.
This helps the grant provider, usually a Government Department, to provide advice and support throughout the life of the funding to ensure the best outcome possible.
It may also be used to evaluate the grant and provide good information about how to make it better, more accessible, or more targeted.
Acquittal
Something that needs to happen for grants is a process called acquittal. This process happens at the end of a grant. It allows the grants administration team to finalise the grant and make any outstanding payments once the funding agreement ends or the funded projects are completed.
This process also allows the applicant to show the Department that the grants money has been spent as intended and agreed to.
Funding agreement
This is a legally binding contract or agreement that you will need to enter into with the Northern Territory Government if you're grant application is successful.
The funding agreement sets out the terms of a funded activity. It outlines your obligations during the term of the agreement and sets out the procedures for items like dispute resolutions, what happens if you have not met your obligations and termination of the agreement.
It can include reporting requirements, payment details, timeframes to complete the funded projects and the acquittal process.
Co-contribution
Some grants require the applicant pay a portion of the project, usually referred to as a co-contribution.
These requirements will be outlined in the terms and conditions of the grant. A co-contribution means the Department will pay a percentage of the eligible activity up to a maximum amount.
For example, if a grant is a 75:25 contribution up to $15,000 means the Department will pay 75% of the eligible project up to $15,000 + GST if the supplier is registered for GST.
Example scenarios under this grant structure:
- An applicant applied for a project that is costing $10,000 and was successfully approved. In the funding agreement the Department would agree to pay $7,500 towards the project and the applicant would co-contribute $2,500 despite the maximum funding being $15,000.
- If a grant applicant was to use the full eligible amount, a project would cost $20,000, with the Department paying $15,000 and the applicant paying $5,000.
- If a grant applicant has a project that costs $30,000 total, this project may still qualify for the grant funding, however as it exceeds the maximum funding of $15,000, the Department would contribute $15,000 and the applicant would pay the remaining $15,000
Reimbursement funding
When a grant is under a reimbursement funding arrangement, the Department will only pay the successful grant applicant the approved funding amount after the applicant proves that they have completed the approved project and paid for it in full themselves. The Department is then reimbursing those costs up to the approved value.
Redeem/voucher redemption
When a Grant Program has a voucher redemption agreement, applicants receive a voucher once they are deemed successful. This means they do not have to pay the supplier the full invoiced amount upfront. The voucher should be provided to the supplier once the project is complete, and the supplier can redeem it for payment from the Department.
There is a particular process under these models to accept and redeem the vouchers on the GrantsNT system.
Voucher
Voucher are paid directly to the approved supplier. Any changes to your project need to be approved by the Department before you undertake them, otherwise you risk your voucher being cancelled.
Vouchers have an expiry date which applicants should take note of. If a voucher expires, any attached funding will be removed, meaning the applicant is no longer funded under the grant.
