Commonwealth entities should actively monitor and evaluate investments throughout their lifecycle, (compliant with the requirements of the Commonwealth Resource Management Framework and Public Governance, Performance and Accountability Act 2013 (PGPA Act)).
Entities are responsible for developing the investment proposal and steering it throughout the necessary processes, including implementation, management and reporting requirements related with the investment decision over the lifecycle of the investment.
All stages of the investment lifecycle are equally important. Longer-term implications should be considered to ensure governance is appropriate, benefits are realised, costs are managed (including whole-of-life investment costs) and risks are managed.
To ensure effective management of a proposal where financial instruments are used to facilitate delivery of a project, Entities should establish governance arrangements to oversee and monitor compliance with the arrangements under the relevant financial instruments.
Commonwealth investments are encouraged to be time limited to the delivery of outcomes, where the exit represents a net benefit to Australians, or where there exists a policy reason for the Government to exit the investment.
