It is important for the entities to decide which type of funding arrangement is appropriate when they prepare the business systems, policies, and procedures to support particular categories of funding, and when they enter into individual transactions or arrangements. A funding arrangement may have several different aspects – for example, it might support an organisation to develop and equip a new training capacity for unemployed people looking for work, and fund the organisation to deliver that training or support to such people. The first aspect is essentially capacity building, or investing in the capability of the organisation. The second aspect is more clearly the purchase of a service.
Advisory services relating to Funding arrangement may be as under:-