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Code of Funding Practice

The Code of Funding Practice is a voluntary code that sets out best practice principles and standards that government funders and non-profit organisations will adhere to as they work together when using public funds to benefit communities.

The seven core codes are respect, cultural context, transparency, open communication, flexibility and innovation, integrity and accountability. They are supported by 22 key standards and a range of success indicators that can be used in funding arrangements.

Family and Community Services is working to ensure all its funding and contracting is consistent with this new Code. We will build upon the good practices already in place to ensure full compliance with the new code.

In particular we will:

  • work with providers to build better funding arrangements
  • ensure the code is reflected in all areas of the funding and contracting process including applying for funding, selecting providers, managing risk, contract negotiations, communication and relationship management, shared outcomes and monitoring and reporting
  • encourage the use of the Code review tool developed by OCVS, particularly when initiating /renewing contracts
  • find out from the community organisations we fund how we are measuring up to the seven codes by conducting an annual FACS provider perception survey.

The Code complements the Treasury Contracting Guidelines and the Office of the Auditor-General's guide for managing funding arrangements. It was developed by the Office for the Community and Voluntary Sector (OCVS) during 2010 with extensive input from the non-government and government sectors and the public. 

 

Family and Community Services is looking forward to working with providers to implement the Code and develop best practice examples to share with others.

We'll be encouraging the use of the Code review tool developed by OCVS, particularly when initiating /renewing contracts.

Community organisations will have opportunities to comment on our progress in the FACS Provider Perception Survey.

Download a copy of the Code, and read Hon Turiana Turia's message and an overview of the Code
Start using the Code review tool
View the complementary guidance documents of The Treasury and the Office of the Auditor-General
Read good practice examples for the Code

The funding codes

Code 1: Respect - covers the foundations of respect, good faith and appreciating the parties' complementary roles. 

Code 2: Cultural context - focuses on allowing for cultural process and knowledge, the importance of fair access to information, and acknowledging kaupapa Māori.

Code 3: Transparency - covers fairness in selection, using plain English and readily understood agreements, clarifying the purpose for and use of data, and consulting on design, delivery and development of services and programmes.

Code 4: Open communication - covers sharing and strengthening understanding, allowing access to decision-makers, providing feedback, and including dispute resolution processes.

Code 5: Flexibility and innovation - covers encouraging innovation and flexible approaches by community organisations.

Code 6: Integrity - covers management of public resources, management capability and capacity, fair and reasonable funding, and recognising a conflict of interest.

Code 7: Accountability - covers identifying outcomes, notification of reporting and monitoring, and identifying risks.