Spending relevant money
Officials in non-corporate Commonwealth entities who are required to commit relevant money or enter into or administer an arrangement must comply with the requirements in the PGPA Act and PGPA Rule, various other legislative instruments and policies that apply to spending relevant money and the entity’s internal controls.
A commitment is an activity that results in an obligation to pay relevant money.
The PGPA Act provides flexibility for accountable authorities to establish controls relating to the commitment of relevant money that are appropriate to an entity and its specific circumstances. The controls should identify and balance risks and efficiencies related to the commitment of relevant money.
Guidance on the requirements in PGPA Act and PGPA Rule that all officials must consider when approving commitments of relevant money:
- RMG-400 Approving commitments of relevant money [ 861 KB]
- RMG-400 Approving commitments of relevant money [ 662 KB]
Other rules and policies will apply to the commitment of relevant money will depend on the type of arrangement that is used. Guidance on how to distinguish between a grant, a procurement and other common types of arrangements:
- RMG-411 Grants, procurements and other arrangements [ 472 KB]
- RMG-411 Grants, procurements and other arrangements [ 150 KB]
More information on Grants – the Commonwealth Grants Rules and Guidelines (CGRGs) and better practice principles for grants administration
More information on Procurement – the Commonwealth Procurement Rules (CPRs) which govern how entities undertake procurements and combine both Australia's international obligations and good practice. See also:
- Commonwealth grants and procurement connected policies
- ICT procurement policy
- Vehicle leasing and fleet management
Other policy and guidance that is relevant to committing relevant money:
- Pay on time policy – policy relating to paying small business supplier
- Credit card payment policy – policy on the preferred payment method for payments under $10,000
- Borrowings, including credit cards – guidance on borrowing arrangements
- Discretionary financial assistance – guidance on act of grace payments, waivers of debt and the Scheme for Compensation for Detriment caused by Defective Administration
- Contingent liabilities – guidance on indemnities, guarantees and warrantees
- Payment pending probate – payment of amount owed to person at time of death
- Meeting the Senate Order on entity contracts – policy relating to the reporting of Entity contracts
- Use of the Commonwealth Contracting Suite – policy relating to the mandatory use of the Commonwealth Contracting Suite for procurement under $200,000
Policies and guidance relating to property management.
Last updated: 19 April 2017