7

Engaging A Consultant?

Select the most appropriate consultant for your requirements at a price which you can afford. Terms of Reference must be drawn up, and a written quote obtained. The Business Development Board can advise on information to be included.

Terms of Reference

The Terms of Reference form the contractual basis for approval of grants under the EAGS. Approval will be made only on the basis of Terms of Reference which are sufficiently detailed to ascertain that the proposed project is one which meets the scheme’s objectives. Costs relating to work not covered by the Terms of Reference but carried out as a part of the project, may be excluded from the calculation of the grant.

The Terms of Reference should provide a full description of the proposed project (e.g. scope, objectives, methodology), and the proposed timetable for the project;

For longer projects, there may be advantages if the Terms of Reference also:

• set out the project in stages. If this is not done there may be difficulty establishing a basis for part payment of the grant if the work is for any reason not completed;
• require the consultant to produce interim reports by set dates. This will allow progress to be monitored.

The Board may withhold approval where the Terms of Reference:

• are not specific to the company making the application;
• refer to previous discussion, correspondence, etc, between the parties which is not detailed.

Quotes

Where individual consultant’s fees are in excess of $10,000 (grant of $5,000 or more sought) the applicant must either:

• attach evidence to their application form that competitive quotes have been sought; or
• explain why competitive bids have not been sought.

The Business Development Board reserves the right to require:

• more detailed Terms of Reference and/or quote;
• further details on the nominated consultant.

Note: Boards have the discretion to require applicants to supply competitive quotes for fees below this $10,000 level; if they do, they will note their reason(s) for this.

Assistance is not available where the consultant has a close, ongoing relationship with the business.

8

How Are Payments Made Once The Grant Has Been Approved?

The grant is paid on a reimbursement basis. Claims against it can be made any time after the applicant has confirmed, in writing, their acceptance of the written grant offer from the appropriate Board. All claims must be made to the Board by the expiry date of the grant.

There are only two bases on which payments can be made:

1. On the applicant forwarding original receipts matched to original invoices to the Board. These should accompany the completed claim and report forms (copies of these forms are available from the Business Development Boards) or

2. On the applicant supplying an Accountant’s certification of costs incurred together with the completed claim and report forms. This must be from an independent Accountant in public practice (ie not in-house) and must match expenditure to the approved costs.

What Conditions Does The Grant Have?

The scheme has ten standard conditions:

1. The applicant must notify the appropriate Board in writing of their acceptance of the grant within the time prescribed in the letter of offer; otherwise the grant offer will lapse.

2. Grants must be uplifted within the time specified in the approval letter, otherwise they will lapse.

3. Retrospective costs cannot be claimed.

4. No other government funds may be used for the balance of the costs funded under the EAGS.

5. The grant is only paid for approved costs on the basis of original invoices matched to original receipts. Photocopied receipts and invoices are not acceptable. The only other basis on which claims can be paid is by forwarding an Accountant’s certification of costs to the Board. This must be by an independent Accountant in public practice certifying a schedule of expenditure, matching expenditure claimed to approved costs. The claim must be made on the prescribed claim form.

6. The grant will not be paid until the Board receives a report on the findings of the work; the prescribed claim and report form is to be used. A copy of the consultant’s report is also to be submitted.

7. Information on grant approvals can be made publicly available by the Board.

8. Any grant approved is personal to the applicant and may not be assigned without the written authority of the Board.

9. The project must be carried out by the nominated consultant and in accordance with the approved Terms of Reference.

NEW ZEALAND GAZETTE
6 AUGUST
2331