To strengthen its approach to managing future rounds of the Fund and other grants, Lotterywest should:

1. improve its conflict of interest processes to:
   1. provide consistent and up to date information to those involved in grant decision making
   2. manage all conflicts in line with approved mitigation strategies

Lotterywest response: Lotterywest has undertaken work to review the conflict of interest process and work to ensure that all conflicts are accurately captured in the appropriate databases. This work identified a number of process improvements to clarify the roles and responsibilities between Grants Administration and Support and Legal Services. These process improvements have been implemented and Lotterywest staff have been asked to update their conflict of interest declarations.

2. enhance recordkeeping practices by appropriately documenting key decisions and making them available for review

Lotterywest response: In July 2020 for the second phase of the COVID-19 Relief Fund, Lotterywest introduced a strengthened internal documentation process which included scoring and increased oversight for all grants. As a result, all key decisions are now clearly documented and made available for review.

3. review the effectiveness of Phase 1 performance reporting timeframes and processes.

Lotterywest response: Lotterywest submits that setting comprehensive indicators including targets at the time of which the Fund was designed, would have been difficult and may have carried the risk of setting inappropriate targets that led to perverse incentives.

Lotterywest is committed to working in a way that is rigorous and responsive and flexible to the needs of grant customers in the community. Adopting an approach that allows grant customers to report only once to Lotterywest to both acquit their grant on a financial basis and provide information on the outcomes achieved is supportive of an approach that does not impose an unreasonable administrative burden on the grant customer.

Lotterywest continues to learn and seek to improve outcome measurement. Lotterywest will undertake a review of the performance reporting timeframes and processes as part of the overall evaluation of the COVID-19 Relief Fund.

Implementation timeframe: This review is to be undertaken in the 2021-22 financial year.