External funding is an important topic in the Netherlands. In the financial field, some experience has been gained in the sphere of regulations, accounting and quality control. Measures are inspired by the desire to simplify financial transactions and to reduce red tape. In this paper some insight is given in the prevailing funding techniques in the Netherlands: how government funds are allocated to universities, and what rules govern the funding process. The importance of an efficient control mechanism is also discussed, giving attention to the measures implemented to guarantee the quality of the funded (research) output. The paper concludes with some recommendations, so that the Dutch experience might be used by other countries as an example of good practice.