Glossary

Account

(in relation to payments) An invoice, claim or any legitimate request for the payment of moneys made on a Commonwealth entity.

(in relation to accounting) A ledger or code against which particular financial information is recorded (for example, an asset account records the economic changes related to a particular asset controlled by an entity).


account

(in relation to payments) An invoice, claim or any legitimate request for the payment of moneys made on a Commonwealth entity.

 

(in relation to accounting) A ledger or code against which particular financial information is recorded (for example, an asset account records the economic changes related to a particular asset controlled by an entity).


Accountable authority

Under the PGPA Act, the person or group of persons responsible for, and control over, each Commonwealth entity's operations. The person(s) or body that is the accountable authority of a Commonwealth entity is as follows:

if the Commonwealth entity is then the accountable authority of the entity is
a Department of State the Secretary of the Department
a parliamentary department the Secretary of the Department
a listed entity the person or group of persons prescribed by an Act or the rules to be the accountable authority of the entity
a body corporate established by a law of the Commonwealth the governing body of the entity, unless otherwise prescribed by an Act or the rules

An accountable authority can issue written instructions about any matter relating to the finance law that all officials of the entity must adhere to. (Accountable authorities may also issue instructions to officials of another Commonwealth entity in relation to matters listed in section 20A(2) of the PGPA Act.) These are referred to as accountable authority instructions (AAIs).


accountable authority

Under the PGPA Act, the person or group of persons responsible for, and control over, each Commonwealth entity's operations. The person(s) or body that is the accountable authority of a Commonwealth entity is as follows:

if the Commonwealth entity is then the accountable authority of the entity is
a Department of State the Secretary of the Department
a parliamentary department the Secretary of the Department
a listed entity the person or group of persons prescribed by an Act or the rules to be the accountable authority of the entity
a body corporate established by a law of the Commonwealth the governing body of the entity, unless otherwise prescribed by an Act or the rules

An accountable authority can issue written instructions about any matter relating to the finance law that all officials of the entity must adhere to. (Accountable authorities may also issue instructions to officials of another Commonwealth entity in relation to matters listed in section 20A(2) of the PGPA Act.) These are referred to as accountable authority instructions (AAIs).


Accounting Centre of Excellence

DOFA's Accounting Centre of Excellence draws together accounting expertise and focuses on keeping DOFA at the forefront of international governance, budgeting and accounting developments.


Accrual


The accounting basis that brings items to account as they are earned or incurred (and not as cash received or paid) and includes them in financial statements in the related accounting period.


Accumulation Scheme

A scheme that provides retirement benefits based on accumulated employer contributions, and any investment earnings on those contributions. It is also known as a defined contribution scheme.


Act of grace payment

A payment made by the Commonwealth to an individual or other body in special circumstances and where there is no legal obligation to make the payment. Act of grace payments must be authorised by the Finance Minister or a delegate under section 65 of the PGPA Act. They may be appropriate where a non-corporate entity's conduct or Commonwealth legislation or policy has resulted in an unintended, inequitable, anomalous or otherwise unacceptable result. Act of grace payments are used where any obligation to the applicant is moral, rather than legal.


act of grace payment

A payment made by the Commonwealth to an individual or other body in special circumstances and where there is no legal obligation to make the payment. Act of grace payments must be authorised by the Finance Minister or a delegate under section 65 of the PGPA Act. They may be appropriate where a non-corporate entity's conduct or Commonwealth legislation or policy has resulted in an unintended, inequitable, anomalous or otherwise unacceptable result. Act of grace payments are used where any obligation to the applicant is moral, rather than legal.


Activities

The actions and/or efforts performed by a Commonwealth entity or Commonwealth company to deliver government objectives and achieve desired results.


activities

The actions and/or efforts performed by a Commonwealth entity or Commonwealth company to deliver government objectives and achieve desired results.


Actuary

Mathematician who compiles and uses statistics mainly for insurance and finance purposes.


Additional Estimates (AEs)

Annual Appropriation Bills that seek legislative authority from parliament to draw and expend money from the Consolidated Revenue Fund (CRF) in addition to the authority provided in the annual Appropriation Acts for the previous Budget. The additional authority is to meet expenditure requirements that have arisen since the last Budget, are unavoidable and cannot wait until the next Budget's appropriations.


Additional Estimates (AEs)

Annual Appropriation Bills that seek legislative authority from parliament to draw and expend money from the Consolidated Revenue Fund (CRF) in addition to the authority provided in the annual Appropriation Acts for the previous Budget. The additional authority is to meet expenditure requirements that have arisen since the last Budget, are unavoidable and cannot wait until the next Budget's appropriations.


Additional rules

(in relation to procurement) Requirements in Division 2 of the Commonwealth Procurement Rules (CPRs) that apply to procurement where the estimated value of the procurement is at or above the relevant procurement threshold.


additional rules

(in relation to procurement) Requirements in Division 2 of the Commonwealth Procurement Rules (CPRs) that apply to procurement where the estimated value of the procurement is at or above the relevant procurement threshold.


Administer

When an accountable authority of a non-corporate Commonwealth entity, or their delegate, gives effect to an arrangement or a grant, including decisions on establishing, varying and paying money. For example, a contract manager might decide that a milestone has been reached by the contractor and that payment is to be made to the contractor for reaching the milestone.

 

A person performing processing tasks in relation to an arrangement, without making any decisions about the arrangement, is not administering the arrangement.

 

To administer an arrangement a person should have a delegation or an authorisation of the power in:

    • section 23 of the PGPA Act or
    • section 32B of the Financial Framework (Supplementary Powers) Act 1997

Administered items

(in relation to appropriations) Items administered by the entity on behalf of the Commonwealth. Amounts are appropriated in the annual Appropriation Bills to meet the total estimated expenses for administered items that are expected to be incurred in the upcoming financial year.

 

Administered items are appropriated separately by entity outcome, making clear what the funding is intended to achieve.

 

Annual appropriations also provide funding to Commonwealth entities for acquiring new administered assets, enhancing existing administered assets and discharging administered liabilities, through a specific Administered Assets and Liabilities appropriation.

 

(in relation to budgeting and reporting) Administered items are usually those managed by an entity on behalf of the Government. Entities do not have control over these items, which are normally related to activities governed by eligibility rules and conditions established by the legislation (for example, grants, subsidies and benefit payments). Items should be classified as either departmental or administered.


Administrative Arrangements Order

An instrument issued by the Governor-General that formally establishes the matters dealt with by each Department of State and the legislation for which each Minister of State administering a Department of State is responsible.


Administrative Arrangements Order

An instrument issued by the Governor-General that formally establishes the matters dealt with by each Department of State and the legislation for which each Minister of State administering a Department of State is responsible.


Administrative Arrangements Order (AAO)

An instrument issued by the Governor-General that formally establishes matters dealt with by each Department of State and the legislation for which each Minister of State administering a Department of State is responsible.


Advance to the Finance Minister (AFM)

A provision in the Annual Appropriation Acts that enables the Finance Minister to provide additional appropriation to entities for urgent and unforeseen expenditure in the current year.


Agency Resourcing Table

A table in Budget Paper No. 4 that shows, by Commonwealth entity and company, by outcome and by source, the aggregate of estimated resources for the upcoming and past financial years.


AGEST

Australian Government Employees Superannuation Trust. AGEST is the default superannuation scheme for persons covered by the Superannuation (Productivity Benefit) Act.


Amount owing to the Commonwealth

A sum of money owing to the Commonwealth that is ascertainable or certain (that is, known or able to be determined objectively), including debts due for payment and amounts that are not yet due for payment. For example, an amount owing to an entity from a supplier where an invoice has been issued, but payment is not due until a later date.


Annual appropriations

Annual funding, provided by annual Appropriation Acts, to Commonwealth entities to carry out Commonwealth outcomes and programmes and also for investment in assets or reduction in liabilities.


Annual performance statements

Statements prepared by the accountable authority of a Commonwealth entity in accordance with section 39 of the PGPA Act and section 16F of the PGPA Rule that acquits actual performance against planned performance described in the entity's corporate plan. The statements may be audited by the Auditor-General, and must be provided to the entity's minister and the Finance Minister.


Annual report

The yearly report prepared by the accountable authority of a Commonwealth entity in accordance with section 39 of the PGPA Act or the directors of a Commonwealth company in accordance with section 97 of the PGPA Act. The annual report must be presented to parliament by the responsible minister. The report provides a broad statement of an entity or company's capability and performance, including results against targets published previously for the corresponding year in the portfolio budget statements. It allows accountable authorities and directors to report to their minister on the efficiency and effectiveness of the public administration for which the minister is ultimately responsible.


Approach to market

(in relation to procurement) Any notice inviting potential suppliers to participate in a procurement including, but not limited to a request for tender, quote, expression of interest, application for inclusion on a multi-use list, request for information and request for proposal.


Appropriation

A law of the Australian Parliament that provides authority for Commonwealth entities to spend money from the Consolidated Revenue Fund (CRF) for a particular purpose. Entities may not spend money without an appropriation authorising that expenditure and, where necessary, other legislation authorising the specified purpose.


Appropriations and Cash Management Module (ACM)

A module of CBMS that is used to assist in the management of appropriations and cash.


Arrangement

An agreement or regime of some kind, including a contract,  deed or understanding.


Audit

Commonwealth entities and companies have periodic requirements for audits:

    • annual financial statements for Commonwealth entities must be audited by the Auditor-General in accordance with sections 42 and 43 of the PGPA Act
    • annual financial statements for subsidiaries of Commonwealth entities must be audited by the Auditor-General in accordance with sections 44 of the PGPA Act
    • the Finance Minister or responsible minister may request the Auditor-General to audit annual performance statements for Commonwealth entities in accordance with section 43 of the PGPA Act
    • Commonwealth companies must provide their auditor's report to the responsible minister in accordance with section 97 of the PGPA Ac

Audit committee

Audit committees provide independent advice and assurance to the accountable authority of an entity on the appropriateness of the entity's accountability and control framework, including to independently verify and safeguard the integrity of an entity's financial and performance reporting:

    • accountable authorities of Commonwealth entities must ensure that the entity has an audit committee in accordance with section 45 of the PGPA Act and section 17 of the PGPA Rule
    • directors of Commonwealth companies must ensure that the companty has an audit committee in accordance with section 92 of the PGPA Act and section 28 of the PGPA Rule.

AusTender

(in relation to procurement) The central web-based facility for the publication of Australian Government procurement information, including business opportunities, annual procurement plans and procurement contracts awarded.


Australian Accounting Standards (AASs and AASBs)

Accounting standards are technical pronouncements that set out the required accounting measurements and disclosures for particular types of material transactions and events. The accounting requirements affect the preparation and presentation of an entity's financial statements.

 

(in relation to financial statements) For Commonwealth entities, accounting standards have the force of law through section 42(2)(a) of the PGPA Act. Further, accounting standards have the force of company law for entities preparing financial reports under that law.

 

(in relation to budgeting) Section 12(3)(a) of the Charter of Budget Honesty Act requires that the budget is based on accounting standards.


Australian Government

All bodies that comprise the public sector at the national level. This includes the Commonwealth, office holders, statutory corporations, Commonwealth companies and their subsidiar


Australian Reward Investment Alliance (ARIA)

Before the establishment of CSC on 1 July 2011, ARIA was the Board responsible for the administration of the CSS, the PSS and the PSSAP. ARIA was also the Trustee for the CSS Fund, the PSS Fund and the PSSAP Fund.


Authorisation

(by an accountable authority) A means of devolving authority. There are two types of authorisation – express (provided in statute) and implied (not provided in statute).

 

Express authorisation provides authority to an official to exercise an express statutory power, and to act on that power in their own right.

 

Implied authorisation devolves authority without exercising an express statutory power of delegation (that is, the statutory power remains with the authorising official). Authorised officials only act for and on behalf of the person issuing the authorisation — they do not operate in their own right. In performing the specified task or function, they are required to think and act as though they were the person who gave the authorisation and comply with any conditions attached to the authorisation. The person who issued the authorisation continues to be responsible for the particular task or function as though they actually carried it out and remains accountable for any decisions and actions in exercising the relevant power.

 

(by the Finance Minister or Treasurer)Under the PGPA Act the Finance Minister or Treasurer may authorise an investment:

    • on behalf of the Commonwealth in accordance with section 58
    • by a corporate Commonwealth entity in accordance with section 59.

An authorisation under section 58 or 59 of the PGPA Act is a legislative instrument that is not disallowable.


Authority

The legal authority (whether express or implied) to exercise a power or function that can be given directly through legislation (for example, an accountable authorities' powers under section 23 of the PGPA Act, section 32B of the FFSP Act or other specific legislation) or through a delegation or authorisation.


BAF

Building Australia Fund


Bank

  • An authorised deposit-taking institution (within the meaning of the Banking Act 1959) or:
  • the Reserve Bank of Australia (RBA) or
  • a person who carries on the business of banking outside Australia.

Bankable money

Relevant money received by an official of a Commonwealth entity or a minister that can be deposited in banks in Australia, or in the place where the money was received. Bankable money must be deposited in a bank account in accordance with the PGPA Rule and the entity's internal controls.

A minister in possession of bankable money (other than money related to the minister's official duties) must give that money to an official of a non‑corporate Commonwealth entity (usually the relevant department of state) as soon as is practicable.


Baseline

(in relation to performance) Information collected before or at the start of an activity that provides a basis for planning and/or assessing subsequent progress and impact.

 

(in relation to appropriations) The core level of funding provided each year to an entity or company in annual Appropriation Acts to carry out ordinary business activities (not including funding for specific programmes or outcomes).

 

(in relation to estimates) The baseline budget estimates in CBMS for the four statements:Financial Performance; Financial Position; Statement of Cash Flows; and the Capital Budget Statement.


Benchmarking

(in relation to performance management) The process of measuring and comparing the performance of an organisation's activities against those of similar organisations, to gain information and insights. This process will assist planning for future improvement. Related terms:monitoring and evaluation.


Body

Includes any department, listed entity, executive agency, statutory agency, statutory authority, statutory office holder, company, association, cooperative, partnership, trust or departmental function with distinct branding.


Body

Includes any department, listed entity, executive agency, statutory agency, statutory authority, statutory office holder, company, association, cooperative, partnership, trust or departmental function with distinct branding.


Body

Includes any department, listed entity, executive agency, statutory agency, statutory authority, statutory office holder, company, association, cooperative, partnership, trust or departmental function with distinct branding.


Body Corporate

A legal entity, other than a body politic or a natural person. It includes a statutory corporation, a company and an incorporated association.


Body corporate

A legal entity, other than a body politic or a natural person. It includes a statutory corporation, a company and an incorporated association.


Body corporate

A legal entity, other than a body politic or a natural person. It includes a statutory corporation, a company and an incorporated association.


Budget Cabinet

The final stage in the budget decision-making process. Budget Cabinet is the full committee of cabinet members who make final decisions on Budget proposals that have been previously reviewed and endorsed by the ERC. Proposals that are approved by Budget Cabinet become measures and are included in the Budget.


Budget Papers

Budget Papers accompany the Appropriation Bills and are supported by the portfolio budget statements. The Budget Papers are published to assist in explaining the Budget figures. The Budget Papers currently consist of:

  • Budget Speech
  • Budget Overview
  • Budget Paper No.1 – Budget Strategy and Outlook
  • Budget Paper No.2 – Budget Measures
  • Budget Paper No.3 – Federal Financial Relations
  • Budget Paper No.4 – Agency Resourcing

Building Australia Fund

The Nation-building Fund which makes funding payments for the creation or development of infrastructure in the areas of transport, communications, eligible broadband matters, energy and water.


Cabinet submission, minute, memorandum

A Cabinet Submission is a document that a minister or ministers present to Cabinet to obtain its agreement to a course of action. It is coordinated by portfolio departments and signed off by the relevant portfolio minister. Cabinet generally makes a decision on the proposals within the submission, and the decisions are published as a Cabinet Minute or Cabinet Memorandum.


Capital expenditure

The purchase of non-current assets necessary for Commonwealth entities and Commonwealth companies to achieve their objectives.


Capital measure

A measure that affects net capital investment, defined as the change in non-financial assets.


Central Budget Management System (CBMS)

The ICT system used to manage the flow of financial information between Finance and Commonwealth entities to facilitate cash and appropriations management, the preparation of budget documentation and financial reporting.


Central departments or central entities

Refers to the Department of the Prime Minister and Cabinet, the Department of the Treasury, and the Department of Finance.


Charges

(in relation to cost recovery) The payments to Commonwealth entities by other Commonwealth entities, individuals, and non-government organisations for goods and services and/or regulation, provided to them. The Commonwealth may direct entities to charge for some or all of their activities in a specific manner and/or apply a specific policy framework, such as cost recovery.


Charter of Budget Honesty Act 1998 (Charter)

Provides a legislative framework for the conduct and reporting of fiscal policy, government decisions and Commonwealth financial statements. The Charter aims to improve the discipline, transparency and accountability applying to the conduct of fiscal policy.


Choice of superannuation fund (choice)

Refers to the requirement under the Superannuation Guarantee (Administration) Act 1992 for employers to offer eligible employees choice of a complying superannuation fund or retirement savings account to receive their superannuation guarantee contributions.


Comcare

The workers' compensation insurer for the Commonwealth, providing safety, rehabilitation and compensation services to Commonwealth employees (and employees of the ACT Government) under the auspices of the safety, rehabilitation and compensation services to Commonwealth employees.


Comcover

The Commonwealth's self-managed insurance fund responsible for protecting Commonwealth entities against insurable losses and promoting better practice risk management to improve policy formulation and the delivery of government activities and services. All Commonwealth entities within the general government sector are insured through Comcover. Entities nominally purchase cover for all normally insurable risks, with the exception of workers' compensation, which remains the responsibility of Comcare.


Commission

A generic term for a body of persons that is authoritatively charged with particular activities. This document primarily uses the term in a technical sense to describe a statutory authority that comprises more than one person. However, the term also occurs in the names of certain entities that are led by a single office holder, such as the Australian Public Service Commission.


Commission

A generic term for a body of persons that is authoritatively charged with particular activities. This document primarily uses the term in a technical sense to describe a statutory authority that comprises more than one person. However, the term also occurs in the names of certain entities that are led by a single office holder, such as the Australian Public Service Commission.


Commission

A generic term for a body of persons that is authorised to perform particular activities. This document primarily uses the term in a technical sense to describe a statutory authority that comprises more than one person. However, the term also occurs in the names of certain entities that are led by a single office holder, such as the Australian Public Service Commission.


Commitment of relevant money

An activity or decision of a non-corporate Commonwealth entity (NCE) that results in an obligation on the Commonwealth to pay relevant money. This may involve entering into an arrangement.  Commitments include obligations that are contingent upon certain events occurring, such as indemnities, guarantees and warranties.

Accountable authorities of NCEs may approve commitments, or delegate or authorise in writing another person to do so.


Commonwealth

The legal entity of the Commonwealth of Australia, created by the Australian Constitution. The term may also be used to differentiate the Australian Government from state and territory governments.


Commonwealth

The legal entity of the Commonwealth of Australia, created by the Australian Constitution. The term may also be used to differentiate the Australian Government from state and territory governments.


Commonwealth

The legal entity of the Commonwealth of Australia, created by the Australian Constitution. The term may also be used to differentiate the Australian Government from state and territory governments.


Commonwealth company

A Corporations Act company that the Commonwealth controls; however, it does not include a company that is a subsidiary of a Commonwealth company, a subsidiary of a corporate Commonwealth entity or a subsidiary of the Future Fund Board of Guardians.


Commonwealth company

A Corporations Act company that the Commonwealth controls; however, it does not include a company that is a subsidiary of a Commonwealth company, a subsidiary of a corporate Commonwealth entity or a subsidiary of the Future Fund Board of Guardians.


Commonwealth company

A company established under the Corporations Act 2001 that the Commonwealth controls. A Commonwealth company is legally and financially separate from the Commonwealth.

The Corporations Act is the primary regulatory framework for these companies. Chapter 3 of the PGPA Act sets out additional requirements that Commonwealth companies have to comply with in order to meet appropriate standards of public sector accountability.

The Commonwealth controls a company if, and only if, it (section 89(2) of the PGPA Act)::

  • controls the composition of the company's board or
  • is in a position to cast, or control the casting of, more than one-half of the maximum number of votes that might be cast at a general meeting of the company or
  • holds more than one-half of the issued share capital of the company (excluding any part of that issued share capital that carries no right to participate beyond a specified amount in a distribution of either profits or capital).

Commonwealth companies include:

  • wholly-owned Commonwealth companies - companies in which no other beneficiary owns an interest other than the Commonwealth (section 90); and
  • government business enterprises (GBEs) - Commonwealth companies with a commercial focus that are prescribed as GBEs under the PGPA Act and, as a result, have some additional responsibilities.

A Commonwealth company does not include a company that is a subsidiary of:

  • a Commonwealth company or
  • a corporate Commonwealth entity or
  • the Future Fund Board of Guardians.

Commonwealth companies are not Commonwealth entities for the purposes of the PGPA Act. The PGPA Act duties that apply to accountable authorities and officials of Commonwealth entities do not apply to directors and officers of Commonwealth companies.

The Flipchart of PGPA bodies lists all Commonwealth companies by portfolio.


Commonwealth credit card

A credit card issued to a Commonwealth entity to enable the entity to obtain cash, goods or services on credit. Credit cards and credit vouchers issued to entities are different from personal credit cards or vouchers, as they do not provide the holder with a revolving line of credit. Money borrowed through the use of a credit card or credit voucher must be paid in full within a specific timeframe.

A Commonwealth credit card number is subject to the same requirements as a Commonwealth credit card (for example, in relation to security of storage).


Commonwealth entity

A non-corporate Commonwealth entity or a corporate Commonwealth entity under the PGPA Act, further defined as a Department of State, a Parliamentary Department, a listed entity, or a body corporate established by a Commonwealth law or listed in the PGPA Rule.


Commonwealth entity

A non-corporate Commonwealth entity or a corporate Commonwealth entity under the PGPA Act, further defined as a Department of State, a Parliamentary Department, a listed entity, or a body corporate established by a Commonwealth law or listed in the PGPA Rule.


Commonwealth entity

A Department of State or:

a parliamentary department or

a listed entity or

a body corporate that is:

established by a law of the Commonwealth or

established under a law of the Commonwealth (other than a Commonwealth company) and is prescribed by an Act or the PGPA Rule to be a Commonwealth entity.

The definition of Commonwealth entities in the PGPA Act does not cover:

bodies corporate that are established under, but not by, a law of the Commonwealth (such as Commonwealth companies)

the High Court and the Future Fund Board of Guardians.


Commonwealth entity premises

All premises owned or leased by a Commonwealth entity, or premises otherwise occupied by or in the care, custody or control of the Commonwealth. This includes land, buildings, aircraft, vessels, vehicles, containers or receptacles.


Commonwealth Grants Rules and Guidelines (CGRGs)

A legislative instrument issued by the Finance Minister under section 105C of the PGPA Act, which establishes the framework under which entities determine their own specific grants administration processes. All officials performing duties in relation to grants administration must act in accordance with the CGRGs.


Commonwealth Procurement Rules (CPRs)

A legislative instrument issued by the Finance Minister under section 105B of the PGPA Act, which establish the framework under which entities govern and undertake their own procurement. It also includes good practice guidance. All officials performing duties in relation to procurement must act in accordance with the CPRs.


Company

A body corporate that has its status conferred by the Corporations Act 2001.


Company

A body corporate that has its status conferred by the Corporations Act 2001.


Company

A body corporate that has its status conferred by the Corporations Act 2001.


ComSuper

ComSuper was the Commonwealth Superannuation Administrator, until merged with Commonwealth Superannuation Corporation on 1 July 2015.


Consolidated financial statements (CFS)

The annual, end-of-year financial statements for the Commonwealth public sector as required by section 48 of the PGPA Act, and prepared in accordance with Australian Accounting Standards and audited by the Australian National Audit Office. They present the consolidated results for the Commonwealth as well as disaggregated information on the various sectors of government.


Consolidated Revenue Fund

A fund established by section 81 of the Constitution, comprising money raised or received by the Commonwealth.


Consolidated Revenue Fund

A fund established by section 81 of the Constitution, comprising money raised or received by the Commonwealth.


Consolidated Revenue Fund (CRF)

A fund established by section 81 of the Constitution, consists of all revenues and moneys raised or received by the executive government of the Commonwealth. The CRF is self-executing in nature, which means that all money received by the Commonwealth automatically forms part of the CRF.


Contestability

Refers to competition in public sector functions to improve both efficiency and effectiveness in the delivery of government objectives.


Contingency reserve

(in relation to budgeting) A provision within the Budget and forward estimates for items that either cannot or should not (generally for reasons of commercial sensitivity) be allocated to specific programmes at the time of publication. For example, allowance for the expected receipts from the sale of assets, or measures that require negotiation by the government where publication of estimates would adversely affect the government's negotiating position. The amount of the contingency reserve is not a general policy reserve, and it is not appropriated.


Contingent asset and liability

(in relation to financial statements/reporting) The full definition of both a contingent asset and a contingent liability are contained in AASB 137 Provisions, Contingent Liabilities and Contingent Assets.

Generally, contingencies are an obligation that arises from a past event but is not recognised (e.g. cannot yet be recorded as a liability). Common examples of contingent liabilities in the Commonwealth are indemnities, guarantees, warranties, legal proceedings and disputes, and uncalled capital.


Contract management

(in relation to procurement) The active management throughout the life of a procurement contract or other contract to ensure a contractor's performance is satisfactory, stakeholders are well informed and all contract requirements are met. It includes managing the contractual relationships and ensuring that deliverables are provided to the required standard, within the agreed timeframe and achieve value for money.


Coordinated procurements

(in relation to procurement) Goods and/or services that the Australian Government has decided to procure at the whole-of-government level. Non-corporate Commonwealth entities must use coordinated procurement arrangements where they exist, unless an exemption has been granted.

Corporate Commonwealth entities and Commonwealth companies are exempt unless a rule or Government Policy Order (GPO) has been issued by the Finance Minister.


Corporate Commonwealth entity

A Commonwealth entity that is a body corporate under the PGPA Act.


Corporate Commonwealth entity

A Commonwealth entity that is a body corporate under the PGPA Act.


Corporate Commonwealth entity (CCE)

A CCE is a body corporate that has a separate legal personality from the Commonwealth, and can act in its own right exercising certain legal rights such as entering into contracts and owning property. Most CCEs are financially separate from the Commonwealth.

 

CCEs are established through legislation or legislative instrument, and are subject to the PGPA Act, which further clarifies the financial and corporate governance arrangements of these bodies. Some provisions of the PGPA Act applies to CCEs differently to non-corporate Commonwealth entities because of their different legal status, for example the provisions relating to appropriations banking, investments, and use of indemnities.

 

The Flipchart of PGPA bodies lists all CCEs by portfolio.


Corporate plan

The primary strategic planning document of a Commonwealth entity or company, setting out the objectives, capabilities and intended results over a four-year period, in accordance with its stated purposes. The plan should provide a clear line of sight with the relevant annual performance statement, portfolio budget statement and annual report:

accountable authorities of Commonwealth entities must prepare a corporate plan in accordance with section 35 of the PGPA Act and section 16E of the PGPA Rule

directors of Commonwealth companies must prepare a corporate plan in accordance with section 95 of the PGPA Act and section 27A of the PGPA Rule.


Corporations Act company

A body corporate that is incorporated, or taken to be incorporated, under the Corporations Act 2001.


Cost recovery

Charging the non-government sector some or all of the costs of a specific government activity. This may include the provision of goods, services or regulation, or a combination of these. The government must direct that the activity be cost recovered, there must be a statutory basis to charge the non-government sector and alignment between expenses and revenue.