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Monitoring and evaluation

Monitoring funding arrangements and performance helps funders and NGOs to reduce risk, be responsive to changing needs and improve results.

For funders, good monitoring and reporting:

  • help to ensure value for money
  • show how the recipient spends the money
  • demonstrate the impact of funding.

For funded organisations, good monitoring and reporting help them to:

  • showcase the work they are doing
  • learn and develop.


Monitoring – Advice from Treasury

The Treasury advises government agencies to establish good information sources and be focused on results when monitoring funding arrangements with NGOs.

Good practice monitoring - Advice from the Auditor-General

Ongoing monitoring gives the funder and the funded organisation confidence that the terms of the contract will be met. The process protects all partners by alerting them to any problems early on. Advice in this section draws on a series of reports prepared by the Auditor-General.


It is good practice to

  • make application and reporting processes simple without compromising clarity
  • use online systems to make reporting formats consistent
  • make reporting requirements proportional to the size and purpose of the funding

Measuring performance

Community organisations and funders need to know that resources are being well used. Government agencies need to know they are paying a fair price for what they are purchasing. Information gathered should be useful to all parties and contribute directly to improved performance.

Reviewing the funding process

Regular review of funding processes ensures good funding practices are being followed and ensures that they are consistent with good practice guidelines.

Evaluating project progress

Project evaluation needs to be factored into all projects at the start. It is an ongoing process that feeds back into project design and implementation. For larger projects, formal reviews are commonly undertaken mid-term, end of project, and post-project.

Case study: Ministry for Culture and Heritage

Healthy funding relationships are essential to successful monitoring. The Ministry for Culture and Heritage is committed to having clear expectations and maintaining good relationships with the national cultural organisations it funds.

Related resources