List of Resource Management Guides (RMGs) - Summary

This RMG provides a point of reference for information on Commonwealth appropriations, appropriation Acts and related issues and outlines the Constitutional basis for appropriations, particularly that:

• all revenues or moneys raised or received by government shall form one Consolidated Revenue Fund (CRF)
• no money shall be drawn from the CRF except under an appropriation made by law.

The purpose of this RMG is to provide entity officials with information to support their understanding of appropriation Acts, associated Acts and rules that apply to establishing and amending appropriations, and how these underpin the rules and processes for expending Commonwealth money. This guide:

• summarises the relationship between appropriations and the Budget process
• explains the different types of appropriations and how they are created, increased or decreased
• demonstrates how breaches of the Constitution can occur when spending public money and explains how they can be avoided
• provides information on how the Goods and Services Tax (GST) impacts appropriations.

This guide provides an overview of the Australian Government Assurance Reviews process and assist NCEs, Assurance Reviewers and other participants to understand their roles and responsibilities.

Assurance Reviews are principle based, providing flexibility for refining and adapting to changing environments, including financial risk and complexities associated with governance.

Information in this guide is designed to be applied using common sense as relevant to the circumstances of each program/project under review.

• The RPAT is an Excel template that provides a standardised assessment and presentation of risks in your New Policy Proposal.
• The Budget Process Operational Rules state that entities must comply with the Government’s Risk Assessment and Assurance Reviews process for New Policy Proposals, including completion of a RPAT for eligible policy proposals.
• Entities must complete a RPAT for all New Policy Proposals with financial implications of $30 million or above.
• Entities may opt to complete a RPAT for proposals with a financial implication of less than $30 million if you choose to do so.
• Where the level of risk before mitigation is ‘MEDIUM’ or higher, you must provide a copy of your RPAT to the relevant Finance Agency Advice Unit in Budget Group and the Assurance Reviews Unit. The level of risk will be used to determine whether additional assurance such as an Implementation Readiness Assessment or Gateway Review may be required.
• The purpose of the RPAT is to assist entities to determine and communicate the potential risk of a proposal to ministers before seeking Cabinet’s agreement. The risk rating of a proposal can also inform whether additional assurance processes may apply.
   

This guide provides guidance on the accounting treatment for costs that a Commonwealth entity (entity) has incurred on internally developed software (IDS) and CCAs.

• IDS is software developed by the entity, or purchased by the entity and significantly modified, for the entity’s internal use. Internal use is where there is no substantive plan in existence, or being developed, to market the software externally during the software’s development.
• CCAs are where the entity does not own the underlying software, but rather accesses and uses the software as needed. SAAS arrangements are a type of CCA, in which a customer has the right to access a supplier’s application software.

Intangible assets are identifiable non-monetary assets without physical substance (see paragraph 8 of AASB 138 Intangible Assets).

This guide:

• assists Commonwealth entities with the application of Australian Accounting Standards Board (AASB) 16 Leases (AASB 16)
• summarises the major policy decisions of the Department of Finance (Finance) with regard to the application of AASB 16 and addresses the main issues raised by Commonwealth entities
• aims to achieve consistency in accounting treatment of leases amongst Commonwealth entities, which is necessary for the preparation of the Commonwealth Consolidated Financial Statements (CFS)
• provides Commonwealth entities with examples to calculate lease balances for common scenarios.

This guide:

• provides guidance on accounting for NCAs that are held for sale, in accordance with the Australian Accounting Standards Board (AASB) accounting standard, AASB 5 Non-current Assets Held for Sale and Discontinued Operations (AASB 5).
• replaces Accounting for non-current assets held for sale (RMG 111), dated November 2016.

This guide:

• provides guidance for determining whether insurance arrangements established by Commonwealth entities are classified as general insurance contracts, in the context of Australian Accounting Standards Board (AASB) 1023 General Insurance Contracts (AASB 1023)
• only applies to general insurance contracts under AASB 1023, even where an entity does not conduct an insurance business

This guide:

• explains when the cost of an item of PPE may be recognised as an asset
• defines subsequent expenditure on an item of PPE and when it occurs
• provides guidance, with illustrative examples, for determining whether subsequent expenditure on an item of PPE may be capitalised or expensed
• provides information on the budget impacts and financial statements disclosure requirements that result from subsequent expenditure on an item of PPE.

This guide replaces Accounting for subsequent expenditure on property, plant and equipment (RMG 113), released November 2016.

This guide outlines the accounting and disclosure requirements for the initial recognition and subsequent accounting of make good provisions and corresponding assets, including the unwinding of the discount and changes to provision estimates.

The scope of this RMG is Commonwealth entity accounting requirements for concessional loans. Content in this guide on the ‘market-based loan’ components is also relevant to other financial instruments measured at amortised cost or at fair value.

This RMG provides guidance on accounting for concessional loans including:

• discounting using the effective interest method (EIM)
• the unwinding of the discount
• relevant Central Budget Management System (CBMS) accounts
• illustrative examples of journal entries.

While the guide includes some basic examples, it is not intended to address all the complexities that may arise.  Entity’s proposed approaches should be agreed with relevant audit teams in those instances.

• This guide replaces Resource Management Guide No. 115, released November 2016.

• Annual appropriations are provisions within annual appropriation Acts or supply Acts, that provide Commonwealth entities and companies with annual funding to undertake Australian Government activities and programs.
• No money can be drawn from the Consolidated Revenue Fund (CRF) of the Commonwealth, except under an appropriation made by law.
• To be legally valid, all spending from the CRF must be in accordance with authority given by Parliament:
  • A valid appropriation, made in accordance with section 83 of the Constitution, and
  • A legislated purpose - that is, legislation supporting a program/payment, supported by a head of Commonwealth power or elsewhere in the Constitution.
• Relevant Acts provide the amount of annual appropriations and the authoritative source for the recognition category for accounting purposes.
• All entities must account for and disclose appropriations in accordance with the FRR - regardless of whether amounts are considered material – appropriations are deemed material by nature (subsection 35(1) of the FRR).
• Appropriation Acts perform an important constitutional function. These are the laws of parliament that authorise the withdrawal of money from the CRF, for the purposes specified in the Appropriation Act. More information on annual appropriations can be found in RMG-100 Guide to Appropriations.

Departmental annual appropriations

Provide money for the annual operating costs of entities – entities have control over these items (see section 5 of the FRR and AASB 1050 Administered Items (AASB 1050)). These are recognised in an entity’s annual financial statements:

• when the entity gains control of the appropriation
• as income, equity or a liability – in accordance with the characteristics of the appropriation.

Administered annual appropriations

Provide money to carry out the objectives of the Australian Government. Entities do not have control over these items. These are recognised in the administered schedules of an entity’s annual financial statements as equity.

Legislative authority

All revenues or moneys raised or received by the executive government of the Commonwealth shall form one Consolidated Revenue Fund (CRF), to be appropriated for the purposes of the Commonwealth, in the manner prescribed by the Commonwealth of Australia Constitution Act (the Constitution) (section 81).

No money can be drawn from the Treasury of the Commonwealth, except under an appropriation made by law. Additionally, all spending from the CRF needs to be in accordance with an authority given by Parliament (section 83 of the Constitution).

For expenditure to be valid, there must be a:

• legally valid appropriation
• legislated purpose (that is, legislation supporting a program/payment), supported by a head of Commonwealth power (section 51 of the Constitution) or elsewhere in the Constitution.

In Parliament, a Bill is a proposal for an Act or a change to an existing Act, including:

• appropriation Bills – these are proposed Acts for annual appropriations from the CRF, for expenditure of Commonwealth funds by entities
• supply Bills – these are appropriation Bills that propose appropriations for interim funding, usually where the main Budget Bills are unlikely to be passed in time for the new financial year (for example, if an election would interrupt the normal Budget process).

This guide:

• outlines the principles used in the presentation of government expenditure in the:
  • Australian Government budget financial statements
  • consolidated financial statements
• replaces Advice Paper – General principles for the recognition of expenditure in budget aggregates, dated July 2018.

This guide outlines the accounting requirements for the implementation of MoG changes, particularly:

• assets, liabilities, revenues and expenses transferring between entities when control of these passes from one entity to the other
• entities’ agreement of annual appropriation transfer amounts, in accordance with section 75 of the PGPA Act.

The scope of this guide is aligned with AASB 1004 Contributions  (AASB 1004) paragraphs 54-59 ‘Restructure of administrative arrangements’. For the purposes of paragraphs 54–59 of AASB 1004, section 26(2)(a) of the Public Governance, Performance and Accountability (Financial Reporting) Rule 2015  (FRR) defines ‘government department’ as any government controlled entity.

This RMG excludes transfers of assets and liabilities that are not restructures of administrative arrangements. Appendix A in RMG-123 Designating transfers of assets and liabilities as ‘contributions by owners' (equity) (RMG-123) outlines the steps involved in assessing whether any transfer of assets and liabilities between government entities should be accounted for as contributions by and distributions to owners, either as a restructure of administrative arrangements or otherwise.

This guide:

• outlines the special reporting responsibilities for preparing annual performance statements, annual financial statements and annual reports following a MoG change
• assists entity officials in meeting their reporting responsibilities in accordance with the PGPA Act and 'Special reporting requirements when a Commonwealth entity has ceased to exist or functions have been transferred (Division 4)' of the Public Governance, Performance and Accountability Rule 2014 (PGPA Rule).

This guide provides general information about APS secondment arrangements including:

• typical arrangements for secondments to or from APS entities, state or territory governments or community organisations
• key considerations to be made under the Public Governance, Performance and Accountability Act 2013 (PGPA Act), including for delegating PGPA Act powers and issuing instructions to seconded officials
• key financial considerations for typical secondment arrangements, including appropriations and the application of Australian Accounting Standards Board (AASB) accounting standards
• charging activities under the Australian Government Charging Framework (the Charging Framework).

The financial statements of Commonwealth reporting entities are to be prepared in accordance with the FRR and the Australian Accounting Standards.

This guide provides:

• guidance for the disclosure of maturity information in financial statements, as required under section 34B of the FRR and Australian Accounting Standard AASB 101 Presentation of Financial Statements.
• illustrative examples for breaking-down total assets and liabilities for maturity information disclosures.

What are financial statements?

Financial statements are a means by which a Commonwealth entity’s accountable authority discharges its financial accountability. The Australian Government’s accountability is also supported by the preparation and audit of the Commonwealth Consolidated Financial Statements (CFS), which presents the consolidated whole-of-government financial results, inclusive of all Australian Government controlled entities.

The framework for preparing Commonwealth entity financial statements, and the CFS, includes standards and requirements that support the integrity and consistency of financial information, as established in the:

• Public Governance, Performance and Accountability Act 2013  (PGPA Act),
• Public Governance, Performance and Accountability (Financial Reporting) Rule 2015 (FRR), made under the PGPA Act, which requires all Commonwealth entities to comply with the Australian Accounting Standards.

The disclosure of maturity information (that is, the expected realisation dates of assets and liabilities) in financial statements is useful for assessing entity liquidity and solvency.
 

Transfers of assets and/or liabilities may be treated as contributions by and distributions to owners:

• when part of a business transfer which constitutes a restructure of administrative arrangements under AASB 1004 Contributions (AASB 1004) and RMG 118 Accounting for machinery of government changes (RMG 118), or
• through formal designation under AASB 1004, AASB Interpretation 1038 Contributions by Owners Made to Wholly-Owned Public Sector Entities (Interpretation 1038) and this RMG.

Transfers of assets and/or liabilities that:

• are contributions by or distributions to owners, are accounted for through the statement of financial position, as adjustments to assets, liabilities and equity
• are not contributions by or distributions to owners, are recognised as revenues and/or expenses in the statement of comprehensive income.

For ease of reference and presentation, the Resource Management Guide (RMG) uses ‘entities’ to mean Commonwealth entities, as defined by the Public Governance, Performance and Accountability Act 2013 (PGPA Act).

This guide:

• outlines the criteria for certain transfers of assets and/or liabilities to wholly owned Commonwealth entities, to be designated as ‘contributions by owners’ in accordance with AASB 1004 and Interpretation 1038 
• outlines at Appendix A the overall process for assessing whether transfers of assets and liabilities may be accounted for as contributions by or distributions to owners, whether as restructures of administrative arrangements under AASB 1004 and RMG 118 or through designation under AASB 1004, Interpretation 1038 and this RMG 
• outlines at Appendix B guidance on common asset and liability transfers.

Capital expenditure is the purchase of non-current assets necessary for Commonwealth entities to achieve their objectives and for their operations. Capital funding is used to meet the costs associated with the replacement of assets, capitalised maintenance (to continue using the asset), make-good costs and other asset costs that can be capitalised.

All General Government Sector (GGS) entities, except GBEs, which have separate reporting requirements, are required to prepare a capital management plan (CMP) and are encouraged to prepare and maintain a property capital expenditure forecast (PCEF).

This guide:

• outlines the rules and requirements for the management and reporting of capital or non-current asset funding, and
• provides information on how to prepare a CMP and a PCEF.

This guide:

• will assist officials with existing knowledge of FRR and AAS requirements and/or is to be read in conjunction with the FRR and AAS. It is not a training tool and does not give ‘step-by-step’ guidance for preparing financial statements
• provides general information to support the preparation of annual financial statements (for example definitions, rounding and materiality policies) and explains accounting treatments required by the FRR, including where the AAS allows choice of accounting treatments
• provides relevant references to the FRR that should be read together with the supporting guidance
• aligns with the Department of Finance (Finance) Primary Reporting and Information Management Aid forms of financial statements (PRIMA forms), which assists entities in preparing financial statements.

Entities need to apply professional judgement in preparing annual financial statements, to:

• ensure the FRR and AAS are correctly applied for their entity’s classification and unique circumstances
• present fairly the entity’s financial position, financial performance and cash flows.

Laws/rules/policy: This guide outlines the oversight arrangements for entity GBEs and company GBEs that are prescribed in the PGPA Rule.

Purpose: To provide guidance regarding board and corporate governance, planning and reporting, financial governance and other governance matters.

Previous guidance: This guide replaces the Commonwealth Government Business Enterprise Governance and Oversight Guidelines, August 2015.

As CCEs and parts of NCEs, SIVs have obligations under the Public Governance, Performance and Accountability Act 2013 (PGPA Act), the Public Governance, Performance and Accountability Rule 2014 (PGPA Rule) and supported by accompanying guidance. This guide provides information to support those Commonwealth entities classified as SIVs on:

• board and corporate governance
• cooperation and collaboration
• planning and reporting
• risk governance and management.
   

Government’s strategic interests for its SIVs

The Australian Government has the following strategic interests for its SIVs:  

• a strong interest in how the SIVs meet their Government-set policy and commercial objectives, including socio-economic and policy outcomes and financial returns 
• full, open and timely reporting and accountability arrangements that facilitate active oversight by the responsible minister(s) and the Finance Minister 
• board independence and autonomy within government-mandated directions that is balanced with regular performance reporting to the responsible minister(s) and the Finance Minister 
• appropriately skilled, transparent boards that uphold the highest standards of openness, integrity and governance and are accountable to the responsible minister(s) and the Finance Minister for SIV performance.

This guidance:

Commonwealth entities who are required to report performance information in the PBS must meet the requirements under the Finance Secretary Direction.

This guide:

• explains why performance information is reported in the PBS
• describes the relationship between the PBS and corporate plan, and the clear read principle
• provides guidance on each element of the Finance Secretary Direction
• includes the Performance reporting template for the PBS and better practice examples
• outlines when to report performance information in PAES
• should be read in conjunction with the Guide to preparing Portfolio Budget Statements.

The guidance has been developed to provide anyone new to evaluation with an overview of evaluation concepts and approaches. It will help you:

This guide outlines:

• concepts for developing performance measures
• the specific requirements of section 16EA and section 16E(2) item 5(b) of the PGPA Rule with examples from a range of Commonwealth entities' corporate plans
• Tools, techniques and considerations for developing performance measures.

This guide outlines:

• the content requirements for preparing a corporate plan
• the presentation and publication requirements
• how to vary a corporate plan
• better practice examples.

The accountable authority of a Commonwealth entity must prepare a corporate plan for the entity at least once each reporting period.

The corporate plan must be published on the entity’s website by the last day of the second month of the reporting period for which the plan is prepared, unless the entity's enabling legislation states a different period.
 

A copy of the entity's corporate plan must be given to the responsible Minister and the Finance Minister as soon as practicable after it is prepared and before it is published on the entity's website. To meet the requirement to give the corporate plan to the Finance Minister, a copy of the corporate plan should be sent to the Department of Finance at PGPA@finance.gov.au. Entities do not need to send a copy of the corporate plan to the Office of the Finance Minister directly. 

Finance is responsible for publishing the entity’s corporate plan on the Transparency Portal after the plan has been sent to PGPA@finance.gov.au and the plan has been published on the entity’s website.

This guide outlines:

• the content requirements for preparing a corporate plan
• the presentation and publication requirements
• how to vary a corporate plan.
• better practice examples

The directors of a Commonwealth company must prepare a corporate plan for public release at least once each reporting period. The corporate plan must be published on the company’s website by the last day of the second month of the reporting period for which the plan is prepared (31 August each year).  

A copy of the company's corporate plan must be given to the responsible Minister and the Finance Minister as soon as practicable after it is prepared and before it is published on the company's website. To meet the requirement to give the corporate plan to the Finance Minister, a copy of the corporate plan should be sent to the Department of Finance at PGPA@finance.gov.au. Companies do not need to send a copy of the corporate plan to the Office of the Finance Minister directly.

Finance is responsible for publishing the company’s corporate plan on the Transparency Portal after the plan has been sent to PGPA@finance.gov.au and the plan has been published on the company’s website.

This guide:

• outlines the requirements for entities producing annual performance statements
• provides guidance to assist accountable authorities to prepare and publish annual performance statements for their entities.
   

Key information to assist you in meeting your requirements
 

This guide:

explains what an annual report is

lists the required content for annual reports

describes how to prepare and publish an annual report

specifies the digital publication requirements, including standard data templates that entities are required to complete when creating and publishing the annual report using the Digital Annual Reporting Tool.  

This guide:

explains what an annual report is

lists the required content for annual reports

describes how to prepare and publish an annual report

specifies the digital publication requirements, including standard data templates that entities are required to complete when creating and publishing the annual report using the Digital Annual Reporting Tool.  
 

This guide:

explains what an annual report is

lists the required content for annual reports

describes how to prepare and publish an annual report

specifies the digital publication requirements including standard data templates that companies are required to complete when creating and publishing the annual report using the Digital Annual Reporting Tool (the Tool).      
 

Role of the Corporations Act 2001

Companies are subject to a number of reporting requirements under the Corporations Act 2001. The Public Governance, Performance and Accountability Act 2013 acknowledges these requirements, in particular, the need for companies to produce a financial report, directors’ report and auditor’s report. Together, these reports constitute the annual report. 

To provide transparency and accountability, Commonwealth entities and companies are required to disclose executive remuneration arrangements in annual reports. Commonwealth entities and companies are also required to report this information in whole of government data sets on the Transparency Portal.

This guide outlines:

• the requirements and provides guidance for reporting remuneration details for:
  • key management personnel (KMP)
  • senior executives
  • other highly paid staff (OHPS).
• the requirements for reporting the policies and practices of the entity regarding executive remuneration
• the employment arrangements to include in the disclosure tables
• the process for a Commonwealth entity seeking an exemption from executive remuneration reporting requirements.

To provide transparency and accountability, Commonwealth entities and companies are required to disclose executive remuneration arrangements in annual reports. Commonwealth entities and companies are also required to report this information in whole of government datasets on the Transparency Portal. 

This guide outlines:

• the requirements and provides guidance for reporting remuneration details for key management personnel (KMP)
• the requirements for reporting the policies and practices of Commonwealth companies regarding KMP
• the employment arrangements to include in the disclosure tables
• the process for a Commonwealth company seeking an exemption from executive remuneration reporting requirements. 

• RMG-201 is issued by the Attorney-General's Department and provides practical advice to Commonwealth entities on how to implement the Fraud and Corruption Rule and Policy.
• Entities are strongly encouraged to consider RMG-201 when determining how to manage their fraud and corruption risks in a way that is proportionate and best suits the individual circumstances of their entity.
• Entities should read RMG-201 in conjunction with other relevant Commonwealth polices and guides, located in the right-hand menu including the Commonwealth Risk Management Policy.
• Additional guidance is available at www.counterfraud.gov.au.

Key information to assist you in preventing, detecting and dealing with fraud and corruption
 

As an official you have a responsibility to:

• comply with finance law
• comply with the governance arrangements in your entity, e.g. internal controls on the proper use and management of public resources
• meet high standards of governance, performance and accountability.

Ordinarily a consultant or independent contractor is not considered an official of a Commonwealth entity for Public Governance, Performance and Accountability Act 2013 (PGPA Act) purposes (see section 13 of the PGPA Act note, however, there can be exceptions in respect of entities listed in section 9 PGPA Rule and with particular listed entities). However, item 1A of the table in subsection 9(1) of the PGPA Rule prescribes a consultant or independent contractor (or employee of) [collectively described in this document as a ‘contractor’] as an official of an NCE if the requirements listed in item 1A are met. If the requirements in item 1A are met a contractor is an official of an NCE and can be delegated powers under the PGPA Act, a Rule made under it, or the Financial Framework (Supplementary Powers) Act 1997 (FF(SP) Act).

As a ‘prescribed official’ under the PGPA Rule the person:

• is subject to the general duties of officials under the PGPA Act while they provide relevant services to the Commonwealth;
• is subject to the systems of internal control in the entity, including any accountable authority instructions; and
• requires a delegation of powers, duties or functions in the PGPA Act, a Rule made under it or the FF(SP) Act that they are required to exercise (with accompanying instructions if required).

This guide:

provides advice on how relevant property should be disposed of




provides guidance on when it may be appropriate to gift relevant property




outlines the procedures that must be followed before relevant property can be gifted.

The purpose of this guide is to provide information to Commonwealth entities on how to report significant non-compliance with the finance law under section 19 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act).

The PGPA Act requires, among other things, that accountable authorities of Commonwealth entities notify their responsible Minister, as soon as practicable, of any significant issue that has affected the entity or any of its subsidiaries (section 19). A significant issue, under section 19 of the PGPA Act, includes significant non-compliance with the finance law.

The Finance Minister requires that accountable authorities also notify the Finance Minister of instances of significant non-compliance with the finance law reported to their responsible Minister.

This guide assists entities in reporting significant non-compliance by providing guidance on:

what constitutes significant non-compliance with finance law




the need for accountable authorities to notify their responsible Minister, and the Finance Minister as soon as practicable, of any significant non-compliance with the finance law




the associated annual reporting requirements.

To support accountable authorities in reporting significant non-compliance with the finance law, this guidance:

• clarifies that significant non-compliance involving breaches of the general duties of officials (sections 25 to 29 of the PGPA Act) should only be reported where there is a connection to the management of public resources (defined in section 8 of the PGPA Act) 
• clarifies what constitutes ‘significant’ non-compliance with the finance law. It includes a decision-making flow chart, and illustrative case studies
• provides further guidance on the process for reporting significant non-compliance, including a model letter to the Finance Minister (found under What should be reported?)
• includes requirements and suggestions for reporting significant non-compliance with the finance law in entities’ annual reports.

This guide provides information in relation to investments under sections 58 and 59 of the PGPA Act, including the delegations and authorisations issued by the Finance Minister under those sections and the reporting and managing of investments.

For guidance on key considerations for Commonwealth entities in developing, executing, and managing investment proposals refer to RMG - 308 Commonwealth Investment Framework.

• The Charging Framework promotes consistent, transparent and accountable charging for government activities, by encouraging a common approach to planning, implementing and maintaining government charging. The application of the Charging Framework leads to improved charging and the proper use of public resources.
• The Charging Framework consists of the Australian Government Charging Policy and the Cost Recovery Policy which incorporates overseeing charging of regulatory and non-regulatory government activities.
• The Charging Framework explains the requirements, principles and considerations for charging activities provided by the Government to the non-government sector.
• Entities must consider charging as a funding option for an activity in scope of the Charging Framework. This approach is reflected in the Budget Process Operational Rules and is driven by the Australian Government's Charging Policy Statement.

This guide will support you in understanding:

• what other CRF money is
• what other CRF arrangements need to include
• when it is appropriate to establish other CRF money arrangements
• the legal authority to enter into other CRF money arrangements.

This guide:

• explains the legislation and rules that authorise NCEs to retain receipts by increasing certain existing appropriations
• provides guidance and examples on the kinds of receipts that may be retained
• explains how retained receipts collected by NCEs (or their agents) are managed.

This guide replaces Retainable receipts (RMG 307), released December 2017.

Commonwealth entities commit and spend relevant money to achieve the purposes and objectives of their entity and the Australian Government.

Relevant money is money standing to the credit of any bank account of the Commonwealth or a corporate Commonwealth entity, or money that is held by the Commonwealth or a corporate Commonwealth entity.

A commitment of relevant money is an activity that creates an obligation to pay relevant money. A common way to commit relevant money is by entering into an arrangement. This includes an obligation that is contingent upon certain events occurring (for example, indemnities, guarantees and warranties).

An arrangement includes a contract, agreement, deed or understanding. An arrangement also includes any other instrument between parties that creates rights and obligations.

The need to enter into an arrangement can arise in a variety of circumstances, for example where an entity is:

• procuring goods or services to support its operations (such as, stationery, furnishings, information technology (ICT), consultants, electricity and other utilities, rent, travel, vehicles, subscriptions, contracts, attending conferences, legal, research and other professional services) for itself, or
• cooperating with third parties, to achieve purposes of the entity.

Key information to assist you

This guide:

• describes the types of discretionary financial assistance that can be authorised by the Finance Minister under the PGPA Act, including act of grace payments, waivers of debt and set-off
• replaces all previous versions.

The Public Governance, Performance and Accountability Rule 2014 (PGPA Rule) provides a discretionary power for the Finance Minister to authorise the payment of an amount if, at the time of a person’s death, the Commonwealth owed that amount to the person.

The Finance Minister has delegated this power to accountable authorities of non-corporate Commonwealth entities through the Finance Minister to Accountable Authorities of Non-Corporate Commonwealth Entities Delegation 2022. The delegation can be found on the PGPA legislation, associated policies and other instruments page.

This guide:

• assists NCEs and non-PNFC CCEs (entities) in satisfying their Minister’s obligation under the Senate Order for Entity Contracts (the Senate Order);
• outlines the use of AusTender by NCEs to satisfy the Senate Order as it relates to procurement contracts; and
• replaces Resource Management Guide 403: Meeting the Senate Order on Entity Contracts dated November 2016.

Use of the best fare of the day

This guide sets out requirements for achieving value for money when selecting, booking and approving official domestic air travel.

Use of the best fare of the day
 

This guide sets out requirements for achieving value for money when selecting, booking and approving official international travel.

This guide:

• assists entities subject to the Commonwealth Procurement Rules satisfy obligations under the Senate Order for Consulting Services (the Senate Order)
• outlines the use of AusTender by the Department of Finance to satisfy the Senate Order as it relates to procurement contracts for consultancy.

This guide will assist you with implementing the requirements and best practice principles of the CGRPs.

This guide:

• provides an overview of the grants lifecycle and grants administration activities at each stage
• outlines the obligations of officials and minsters, including briefing and reporting requirements
• provides advice on a range of specific issues, including delivering election commitments through grants and evaluation strategies.

This guide:

• replaces RMG 411 (dated 2014): Grants, Procurements and other Financial Arrangements;
• reflects the resource management framework under the PGPA Act;
• provides guidance on common forms of financial arrangements available to achieve Australian Government policy objectives. To facilitate a particular outcome, accountable authorities and officials may decide to use a specific financial arrangement or a combination of financial arrangements; and
• provides guidance for officials on how to determine whether to use a grant, procurement or other type of financial arrangement.

This guide:

• provides an overview of the legislative requirements for Commonwealth cash management, central banking and transactional banking
• provides an overview of appropriations and cash, central cash management roles and the Central Budget Management System (CBMS)

• explains other CRF money for the purposes of section 81 of the Commonwealth of Australia Constitution Act (the Constitution).

   

• Delegated officials of NCEs can enter into arrangements that provide indemnities, guarantees and warranties (collectively referred to as indemnities) on behalf of the Commonwealth to other parties, subject to the limitations in the PGPA Act.  
  • Indemnities are legally enforceable obligations that create contingent liabilities (i.e. they may give rise to a liability on the occurrence of a future event).
• The PGPA Act enables the Finance Minister to grant indemnities on behalf of the Commonwealth (section 60). This power has been delegated, with directions limiting its use, to accountable authorities of NCEs (Schedule 1, Part 6 of the Finance Minister’s delegations).
• An accountable authority can sub-delegate this power, with written limitations that are consistent with the limits in the Finance Minister’s delegation, to officials of their own entity, or officials of another NCE. A sub-delegate must also comply with any other directions of the accountable authority.
• The delegation from the Finance Minister requires that an official who is delegated the power to enter indemnities must consider two overarching principles:
  • that risks should be borne by the party best placed to manage them; and
  • benefits to the Commonwealth should outweigh the risks involved.
• An official can only grant an indemnity, guarantee or warranty involving a contingent liability in relation to an event on behalf of the Commonwealth, if the delegate is satisfied that:
  • the likelihood of the event occurring is remote, i.e. it has a less than 5% chance of occurring; and
  • the most probable expenditure if the event occurred is not significant, i.e. it would be less than $30 million.
• If an indemnity is beyond these thresholds, a delegate can grant an indemnity on behalf of the Commonwealth if it has been explicitly agreed in a decision of Cabinet, the National Security Committee of Cabinet (NSC) or its successor or the Prime Minister, or a written determination of the Finance Minister.

This guide:

• is implementation guidance for sections 4.14 and 4.15 of the Commonwealth Grants Rules and Principles (CGRPs) and sections 4.9 and 4.10 of the Commonwealth Procurement Rules (CPRs);
• outlines the administrative framework to ensure future Grants-Connected Policies (GCPs) and Procurement-Connected Policies (PCPs) are applied effectively at a whole-of-government level; and
• details the steps required to establish a recognised GCP or PCP.

This guide:

• outlines the Government’s policy on payment timeframes for invoices arising from procurement contracts that are subject to the Commonwealth Procurement Rules
• outlines the Government's policy on the use of payment cards for purchases of goods and services with a total contract value below $10,000
• uses terms as defined in the Commonwealth Procurement Rules
• uses GST inclusive values.

Objective

This policy facilitates timely payment to suppliers, assists with their cash flow, and reduces the cost of supplying to the Commonwealth. 

As a general principle, NCEs are encouraged to implement efficient and timely receipting and payment practices to ensure that supplier payments are made as quickly as possible.

This guide:

• provides advice on the types of payments that are within scope of the federal financial relations (FFR) framework, and the payment classification process undertaken by the Department of Finance (Finance)
• provides guidance on the classification of payments to other levels of government for specific purposes as distinct from Commonwealth own-purpose expenses (COPEs) that may involve payments to other levels of government
• replaces Classifying payments to other levels of government for specific purposes and Commonwealth own-purpose expenses (RMG 419), dated December 2020.

This guide:

• reflects the Government’s policy on the use of the Commonwealth Contracting Suite (CCS) when conducting procurement

• uses terms as defined in the Commonwealth Procurement Rules (CPRs)

• outlines the mandatory components of the CCS

• explains when the CCS is mandatory.

This guide:

• Provides guidance on the Commonwealth procurement complaint mechanism established under the Government Procurement (Judicial Review) Act 2018.
• Assists relevant Commonwealth entities to implement and comply with this mechanism when a supplier has raised a complaint with an accountable authority or submitted an application to the Federal Circuit Court of Australia (FCC) or Federal Court of Australia (Federal Court) alleging a relevant Commonwealth entity’s contravention of relevant CPRs when conducting a covered procurement.
• Outlines the roles and responsibilities of key stakeholders.

This guide:

• sets out all of the publishing and reporting requirements for relevant entities under the Commonwealth Procurement Framework and other government policies
• assists relevant entities to meet their publishing and reporting obligations
• uses definitions from the Commonwealth Procurement Rules (CPRs), and
• only applies to procurement processes.

Overview

The Australian Government is committed to ensuring accountability and transparency in its procurement activities.

The CPRs set out the Australian Government’s requirements to publish key information relating to procurement and to report relevant contracts.

Under the devolved procurement framework, individual entities are responsible for conducting their own procurements, including publishing relevant information, and accurately reporting any resulting contracts on AusTender.

Relevant entities have reporting requirements additional to those in the CPRs arising from annual reporting obligations and government policies. Further links and information are provided in Other reporting obligations, exemptions and quality assurance.

Where the accountable authority is referred to in this guidance, this includes officials that the accountable authority has delegated the relevant power to. 

What is AusTender?

AusTender is the central web-based facility for the publication of Australian Government procurement information, including business opportunities, annual procurement plans and procurement contracts awarded. Many of the publishing and reporting requirements are met through AusTender, the Australian Government’s central procurement information system.

• The Commonwealth Property Management Framework establishes a foundation for achieving value for money and promotes efficient, effective, economical and ethical management of owned and leased Commonwealth property in Australia, including external territories.
• The Commonwealth Property Management Framework supports the Public Governance, Performance and Accountability Act 2013 and supplements Division 1 of the Commonwealth Procurement Rules.

• The LAA is the key legislation used by the Commonwealth to acquire and dispose of interests in land to support the delivery of Government priorities, services and outcomes.
• The LAA defines interests in land broadly. This means that transactions involving interests in land have a wider meaning under the LAA than simply purchasing or selling land and include other property transactions such as leasing office space, licences and easements.
• NCEs must comply with the Framework when undertaking transactions requiring authorisation under the LAA. CCEs that are exempt should strongly consider referring to the Framework, including referenced policies and procedures, which are consistent with good practice.