Text Descriptions

ICT Two Pass RACI Chart

The RACI diagram presents a matrix of the relevant roles of key stakeholders at each step in the ICT Two Pass Review process.  The roles identified in the matrix include:

  • Responsible – the role that does the identified work
  • Accountable – the role that approves the work and owns the outcome
  • Consulted – stakeholders that are consulted about or contribute to the work
  • Informed – stakeholders that are informed on progress or outcome of the work

There are eight key stakeholder groups identified – in three high level groupings. The groupings are Entity, Finance and Government.

In the Entity grouping, the stakeholders are Business Area, CIO and CFO.
In the Finance grouping the stakeholders are AGIMO and Budget Group.

In the Government grouping the stakeholders are the Secretaries’ ICT Governance Board (SIGB), the Expenditure Review Committee (ERC) and Cabinet.

In the process step “Finance discusses ICT investment intentions with entities”, Entity Business Area, Entity CIO and Entity CFO are identified as being responsible, Finance AGIMO are identified as being accountable and Budget Group are identified as informed.

In the process step “Entities commence development of their First Pass Business Case”, Entity Business Area is identified as accountable, Entity CIO is identified as responsible, Entity CFO, Finance AGIMO and Budget Group are identified as consulted.

In the process step “Finance reviews draft First Pass Business Case and provide feedback to entity”, Entity Business Area, Entity CIO and Entity CFO are identified as consulted, Finance AGIMO is identified as both Accountable and Responsible, and Budget Group is identified as consulted.

In the process step “Government decides if the proposal will proceed to Budget deliberations”, Entity Business Area, Entity CIO and Entity CFO are identified as informed, Finance AGIMO, Budget Group and SIGB are identified as consulted, ERC is identified as responsible and Cabinet is identified as accountable.

In the process step “Entities incorporate feedback and submit final First Pass Business Case to AGIMO”, Entity Business Area is identified as accountable, Entity CIO is identified as responsible and Entity CFO, Finance AGIMO and Budget Group are marked as consulted.

In the process step “Government considers first pass proposal”, Entity Business Area, Entity CIO and Entity CFO are identified as informed, AGIMO, Budget Group and SIGB are identified as consulted, ERC is identified as responsible and Cabinet is identified as accountable.

In the process step “Entities develop their draft Second Pass Business Case”, Entity Business Area is identified as accountable, and Entity CIO is identified as responsible, Entity CFO, AGIMO and Budget Group are identified as consulted.

In the process step “Finance reviews Second Pass Business Case and provides feedback to entities”, Entity Business Area, Entity CIO and Entity CFO are identified as consulted, AGIMO is identified as both Accountable and Responsible, Budget Group is identified as consulted, SIGB and ERC are identified as informed.

In the process step “Entities incorporate feedback and submit final Second Pass Business Case”, Entity Business Area is identified as accountable, Entity CIO is identified as responsible, Entity CFO, AGIMO and Budget Group are identified as consulted.

In the process step “Government considers the second pass proposal”, Entity Business Area, Entity CIO and Entity CFO are identified as informed, AGIMO, Budget Group and SIGB are identified as consulted, ERC is identified as responsible and Cabinet is identified as accountable.

Return to the ICT Two Pass Roles and Responsibilities section.

ICT Two Pass and Assurance Reviews Process Alignment

A swim-lane diagram showing the high level process flows within and relationships between the Project Life Cycle, Assurance Reviews, ICT Two Pass and Cabinet.

The Project Lifecycle begins with Phase 1 – Establish Business Need.

Aligned with this phase, in the Assurance Review stream – Entity submits Risk Potential Assessment Tool, footnote to proposal criteria. This links to Pre-decision Assurance Reviews.

Proposal Criteria:

  • projects have a total cost estimated to be $30 million or more for procurement or infrastructure; or an estimated total cost of $30 million or more including an ICT component of at least $10 million;
  • programs have a total cost estimated to be over $50 million; and
  • RPAT risk assessment of medium or higher.
  • Refer to Estimates Memorandum for details.

The ICT Two Pass process stream begins with Entity notifies Finance of ICT investment intentions, which aligns the Cabinet stream process, Portfolio Ministers write to Cabinet Secretary / Prime Minister seeking approval to bring proposal forward.

Next in the ICT Two pass stream – Entity submits draft First Pass Business Case to Finance, footnote to proposal criteria.

Proposal criteria:

  • proposals are ICT-enabled;
  • have a total cost estimated to be $30 million or more, including ICT costs of at least $10 million; and
  • are assessed by Finance as being high-risk

Also note – this includes entity capability information, and SIGB considers ICT Two Pass proposals on an exception basis.

This informs the Assurance Reviews, and is aligned with Cabinet decision – Cabinet Secretary/ERC authorises proposal to be brought forward to cabinet.

If this Cabinet decision is Yes, it triggers the ICT Two Pass process Entity submits final First Pass Business Case to Finance. If the decision is no, it links to the terminator – Cabinet does not approve proposal in current budget.

The Project Lifecycle then moves to Phase 2 – Develop Business Case.

In the ICT Two Pass stream the previous activity, Entity submits final First Pass Business Case to Finance now links to Entity lodges Cabinet Submission seeking first pass approval. This links to a Cabinet decision – Cabinet gives first pass approval. If the decision is yes, the ICT Two Pass process Entity submits draft Second Pass Business Case to Finance is triggered. If the decision is no, it links to the terminator – Cabinet does not approve proposal in current budget.

The Entity submits draft Second Pass Business Case to Finance process informs the next Pre-decision Assurance Reviews process, and informs the ICT Two Pass process Entity submits final Second Pass Business Case to Finance. This links to Entity lodges Cabinet Submission seeking second pass approval. This links to the final Cabinet decision, Cabinet gives second pass approval? If yes the decision links to the Implementation phase of the Project Lifecycle. If the decision is no, it links to the terminator – Cabinet does not approve proposal in current budget.

The Project Life Cycle and Gateway proceed through the implementation phase as follows:

  • Phase Three – Develop Delivery Strategy
  • Gate Two – Delivery Strategy or Mid-Stage Program Review
  • Phase Four – Examine Delivery Solution
  • Gate Three – Investment Decision or Mid-Stage Program Review
  • Phase Five – Deliver Solution
  • Gate Four – Readiness for Service or Mid- Stage Program Review
  • Phase Six – Manage contract/transition to BAU
  • Gate Five – Benefits Realisation - or Mid/Final Stage Program Review
  • Closure – End of project

Return to the ICT Two Pass Process Alignment Section

ICT Two Pass and Assurance Reviews Relationship and Timing

The diagram shows the key activities that occur in three streams over a timescale. The three streams are Entity, ICT Two Pass and Assurance Reviews. The timescale intervals are from June, from August, October, from December, January, and February to March, from May and from October.

From June

Entity stream: Agencies notify Finance of ICT-enabled proposals that may meet cost and risk criteria; links to ICT Two Pass stream: AGIMO determines whether proposals are subject to ICT Two Pass.

From August

Entity stream: Entities submit draft First Pass Business Case to AGIMO; links to ICT Two Pass stream, AGIMO reviews drafts and provides feedback to entities.

Entity stream: Entities submit Risk Potential Assessment Tool (RPAT) to Finance; links to Assurance Reviews stream: Assurance Reviews Branch determine whether proposals are subject to Assurance Review (Gateway/ IRA).

October

Entity stream: Portfolio Ministers write to PM seeking approval to bring proposals forward; links to Cabinet decides whether proposals can be brought forward in the Budget and whether an Assurance Review should be applied, that spans both ICT Two Pass and Assurance Review streams.

From December

Entity stream:  non-corporate Commonwealth Entity (NCCE) commission a Pre-decision Assurance Review; links to Assurance Reviews stream: Review Team conduct Pre-decision Assurance Review.

January

Entity stream: Entities submit final First Pass Business Case to AGIMO; links to ICT Two Pass stream, AGIMO reviews final Business Case and Finance briefs Cabinet.

February to March

Entity stream: Entities lodge Portfolio Budget Submissions seeking first pass approval from Cabinet; links to Cabinet decides whether proposals receive first pass approval that spans both ICT Two Pass and Assurance Reviews streams.

From May

Entity stream: Entities submit draft Second Pass Business Case to AGIMO; links to ICT Two Pass stream, AGIMO reviews drafts and provides feedback to entities.

Entity stream: Entities undertake Pre-decision Assurance Review; links to Assurance Reviews stream, Review Team conduct Pre-decision Assurance Review.

From October

Entity stream: Entities submit final Second Pass Business Cases to AGIMO; links to ICT Two Pass stream, AGIMO reviews final Business Case and Finance briefs Cabinet.

Entity stream: Entities lodge Cabinet Submissions seeking second pass approval from Cabinet; links to Cabinet decides whether proposals receive second pass approval that spans both ICT Two Pass and Assurance Reviews streams.

Return to the ICT Two Pass Gateway relationship section.

New Policy Proposal (NPP) Process Decision Path

A flowchart identifying the decision points in determining if a proposal will require an NPP, and subsequent requirements for ICT Two Pass Review and Assurance Reviews.

Question One: Does the proposal request approval for expenditure from Government?

If Yes, Entity will need to develop an NPP and Risk Potential Assessment Tool (RPAT) to determine the potential risk of a proposal for cabinet approval. Proceed to Question Four.

If No, proceed to Question Two.

Question Two: With the exception of Department of Defence, will the project expend capital greater or equal to $10m in any one year or greater or equal to $30m over forward years from existing capital budgets?

If Yes, Entity will need to develop an NPP (and RPAT to determine potential risk)  for Cabinet approval; then proceed to process: Entity submits completed RPAT to Finance to determine if proposal requires an Assurance Review. Then proceeds to Question Four.

If No, Proceed to Question Three.

Question Three: Does the proposal trigger ICT Two Pass - Will the proposal expend $30 million or more with an ICT component of $10 million or more over its lifetime?

If Yes, Entity is required to engage with AGIMO to determine if proposal will be subject to ICT Two Pass Review process.

If No, an NPP is not required for approval.

Question Four: ICT Two Pass - Will the proposal expend $30 million or more with an ICT component of $10 million or more?

If Yes, Entities engage with AGIMO to determine if proposal will be subject to ICT Two Pass Review process.

If No, Cabinet may still require proposal to go through the ICT Two Pass Review process if the proposal meets risk thresholds.

Footnotes:

ICT-enabled proposals are those where the policy or service delivery outcomes are highly dependent on the underpinning ICT system.

If a proposal does not meet the cost thresholds for the ICT Two Pass Review process, it still may meet risk thresholds, which are determined by Finance. Finance or SIGB may recommend to the ERC that the proposal would benefit from a Two Pass Review.

The decision process outlined above must be considered in the context of the current Budget Process Operational Rules, available through your CFO Unit.

Return to the ICT Two Pass FAQ’s

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Contact for information on this page: ictinvestmentframe@finance.gov.au