List of Resource Management Guides (RMGs) - Summary

Display RMGs by: A-Z Number order Topic Summary

  • Topic
    PGPA Act, Assurance and accounting
    Audience

    This Resource Management Guide (RMG) applies to all officials involved in resource management and the expenditure of Commonwealth moneys (e.g. accountable authorities, chief financial officers, officers with spending delegations, finance teams etc).

    Key points

    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 intended 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 RMG replaces RMG 100 - Guide to Appropriations (i.e. Finance online appropriations guidance, posted 8 February 2017).

  • Topic
    PGPA Act, Assurance and accounting
    Audience

    The Australian Government Assurance Reviews Framework applies to some non-corporate Commonwealth entities (NCEs). This guide applies to officials of NCEs who are responsible for conducting Assurance Reviews, and Assurance Reviewers. 

    Key points

    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.

  • Topic
    PGPA Act, Assurance and accounting
    Audience

    This guide applies to officials of Commonwealth entities who are responsible for preparing Risk Potential Assessment Tools as part of a New Policy Proposal (NPP) within the Budget process.

    Key points

    Budget Policy requires that entities complete a Risk Potential Assessment Tool (RPAT) for each NPP with an estimated financial implication of $30 million or above. The RPAT may still be used as an opt-in better practice measure for NPPs with financial implications of less than $30 million.

    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.

  • Topic
    PGPA Act, Assurance and accounting
    Audience

    This guide is relevant to all officials in Commonwealth entities, particularly chief financial officers (CFOs) and finance teams, where the entity has developed software for its own internal use.

    Key points

    This resource management guide (RMG) provides guidance on the costs a Commonwealth entity can capitalise for internally developed software (IDS).

    IDS is software developed by the entity, or purchased by the entity but 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.

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

  • Topic
    PGPA Act, Assurance and accounting
    Audience

    This guide is relevant to Commonwealth officials responsible for the financial reporting of lease transactions. 

    Key points

    This guide assists Commonwealth entities with accounting for leases in accordance with Australian Accounting Standard Board 16 Leases (AASB 16), applicable for the 2019-20 and following financial years.  The guide also provides a simple model to calculate lease balances and example journals for common scenarios.

  • Topic
    PGPA Act, Assurance and accounting
    Audience

    This guide applies to all officials (e.g., finance teams) in Commonwealth entities that have non-current assets that are to be sold.

    This guide is designed to be read in conjunction with relevant Australian Accounting Standards.

    Key points

    This guide:

    • purpose: to provide guidance on the accounting for non-current assets that are held for sale under AASB 5 Non-current Assets Held for Sale and Discontinued Operations.
    • scope: AASB 5 excludes from its scope the restructuring of administrative arrangements and administered activities of a government department and the transfer of assets and liabilities between government departments.
  • Topic
    PGPA Act, Assurance and accounting
    Audience

    This guide applies to all officials (e.g., finance teams) in Commonwealth entities that enter into contracts which transfer insurance risk, irrespective of whether the entity conducts an ‘insurance business’.

    This guide is designed to be read in conjunction with relevant Australian Accounting Standards.

    Key points

    This guide:

    • purpose: to provide guidance on applying AASB 1023 General Insurance Contracts in the identification of general insurance contracts in relation to agreements entered into by Australian Government entities.
    • scope: only applies in identifying ‘general insurance contracts’ under AASB 1023. Additionally, AASB 1023 applies even if the entity does not conduct an ‘insurance business’ (see “insurer” in ‘Definitions used’ below).
  • Topic
    PGPA Act, Assurance and accounting
    Audience

    This guide applies to all officials (e.g., finance teams) in Commonwealth entities with expenditure on property, plant and equipment within the scope of AASB 116.

    This guide is designed to be read in conjunction with relevant Australian Accounting Standards.

    Key points

    This guide:

    • purpose: to provide guidance on the accounting (capitalise or expense) for expenditure on property, plant and equipment after initial recognition, generally referred to as subsequent expenditure.
    • scope: focuses on the subsequent expenditure, not the acquisition, of an AASB 116 asset.
  • Topic
    PGPA Act, Assurance and accounting
    Audience

    This guide applies to all officials (e.g. finance teams) in Commonwealth entities that have obligations to dismantle, remove and restore items of property, plant and equipment.

    This guide is designed to be read in conjunction with relevant Australian Accounting Standards.

    Key points

    This guide:

    • purpose: to provide guidance on the accounting and disclosure requirements for initial recognition of make good provisions and subsequent accounting, including the unwinding of the discount and changes made to the provision.
    • scope: whilst the focus is on accounting for make good provisions, limited guidance is also provided on accounting for the related asset as support. In principle, the discounting guidance can also apply to other AASB 137 provisions.
  • Topic
    PGPA Act, Assurance and accounting
    Audience

    This Resource Management Guide (RMG) applies to officials in Commonwealth entities that issue concessional loans (eg accountable authorities, chief financial officers and finance teams).

    Key points

    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.
  • Topic
    PGPA Act, Assurance and accounting
    Audience

    This Resource Management Guide (RMG) applies to all officials in Commonwealth entities involved in implementing machinery of government (MoG) changes, particularly Chief Financial Officers and finance teams. For ease of reference and presentation, the RMG uses ‘entities’ to mean Commonwealth entities as defined by the Public Governance, Performance and Accountability Act 2013 (PGPA Act).

    Key points

    This RMG provides a point of reference for the accounting requirements that apply to the implementation of MoG changes and in particular that:

    • assets and liabilities transfer between entities when control of these passes from one entity to the other
    • timing for the change of responsibility is to broadly align with the change of control based on legal requirements, and this may vary from item to item
    • entities need to agree on appropriation amounts to be transferred in accordance with the PGPA Act for the transfer to take affect from the date specified in the section 75 legislative instrument.

    This RMG provides information to assist entities in calculating appropriation amounts for transfer under MoG arrangements. It is intended that this RMG is read in conjunction with:

    The scope of this RMG is limited to the accounting implications of a MoG change and excludes other procedural matters arising from changing or abolishing of entity functions.

    This RMG replaces RMG 118 – Accounting for machinery of government changes, November 2016.

  • Topic
    PGPA Act, Assurance and accounting
    Audience

    This Resource Management Guide (the Guide) applies to Commonwealth reporting entities responsible for preparing financial statements under the Public Governance, Performance and Accountability (Financial Reporting) Rule 2015 (FRR)

    Key points
    • Commonwealth reporting entities are required to prepare their financial statements in accordance with the FRR and Australian Accounting Standards (AAS).
    • Entities preparing financial statements need to apply professional judgement to ensure financial statements present fairly the entity’s financial position, financial performance and cash flows.
    • All annual financial statements are subject to an independent auditor’s report by the Australian National Audit Office (ANAO). This includes an assessment of whether the financial statements of an entity have been prepared in accordance with the FRR and AAS.
    • This guidance provides advice to entities on the classification of assets and liabilities to assist them in:
      • complying with section 34B of the FRR when completing financial statements;
      • completing the Supplementary Reporting Pack (SRP) for Consolidated Financial Statements (CFS); and
      • making financial information available for a better understanding of financial sustainability as required by the Joint Committee of Public Accounts and Audit (JCPAA).
  • Topic
    PGPA Act, Assurance and accounting
    Audience

    This guide applies to all officials (e.g., finance teams) in Commonwealth entities that are in the process of transferring assets and/or liabilities to/from another Commonwealth entity.

    This guide is designed to be read in conjunction with relevant Australian Accounting Standards.  

    Key points

    This guide:

    • Policy: outside of Machinery of Government (MoG) transfers, where a Government decision requires the non-reciprocal transfer of assets/liabilities between wholly‑owned government entities, this Guide provides a basis for certain transfers to be accounted for as contributions by owners.
    • Purpose: to direct the above entities as to when it is appropriate to have transfers of assets and liabilities deemed or designated ‘contributions by owners’ (equity) in accordance with Interpretation 1038 Contributions by owners made to wholly-owned public sector entities and/or AASB 1004 Contributions.
    • Scope: transfers within a formal MoG process are excluded from this Guide. Accounting for MoG transfers is covered by Part H of the Commonwealth Entities Financial Statements Guide.
  • Topic
    PGPA Act, Assurance and accounting
    Audience

    Commonwealth entities financial statements guide — 2019-20 (RMG 125) is for use by all Commonwealth entities (entities), as defined by the Public Governance, Performance and Accountability Act 2013 (PGPA Act). It provides guidance for entity officials with responsibility for preparing financial statements in compliance with the:

    This RMG is for users with existing knowledge of FRR and AAS requirements.

    Key points
  • Topic
    PGPA Act, Assurance and accounting
    Audience

    This guide is relevant to Government Business Enterprises (GBEs) that are Commonwealth entities (entity GBEs) or wholly owned Commonwealth companies (company GBEs)[1]. These GBEs are subject to the Public Governance, Performance and Accountability Act 2013 (PGPA Act) and prescribed in the Public Governance, Performance and Accountability Rule 2014 (PGPA Rule). Company GBEs are also subject to the Corporations Act 2001 (the Corporations Act), while entity GBEs are also subject to their enabling legislation. 

    [1] That is, where the Commonwealth has a 100 per cent ownership interest in the company.

    Key points

    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.

  • Topic
    PGPA Act, Enhanced Commonwealth performance framework
    Audience

    This guide is relevant to accountable authorities, Chief Financial Officers, Chief Operating Officers, program managers and officers responsible for measuring and reporting on the performance of activities delivered by a Commonwealth entity.

    Commonwealth companies may use aspects of this guide to assist them in meeting their obligation to produce annual corporate plans under section 95 of the PGPA Act and sections 16E and 27A of the Public Governance, Performance and Accountability Rule 2014 (PGPA Rule).

    Purpose

    This guide provides practical information to support officials of Commonwealth entities in developing good performance information. It also provides guidance on the requirements, as prescribed by section 16EA of the Public Governance, Performance and Accountability Rule 2014 (PGPA Rule), for performance information developed by entities, and replaces Quick Reference Guide – RMG 131 Developing good performance information.

    This guide does not:

    • provide definitive technical advice on how to design performance measures; nor
    • prescribe a generic set of standard performance measures to be reported by Commonwealth entities.
    Key points
  • Topic
    PGPA Act, Enhanced Commonwealth performance framework
    Audience

    This guide is relevant to officials of Commonwealth entities with responsibility for assisting accountable authorities in preparing corporate plans.

    The guide is also intended to support officials who manage the key activities (as described in the corporate plan) of an entity.

    Key points
    • The accountable authority of a Commonwealth entity must prepare a corporate plan for the entity at least once each reporting period.[1]
    • 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.[2]

    Commonwealth entities that report on a financial year basis must publish their corporate plans on their website by 31 August each year. Entities that report on a calendar year basis must publish a corporate plan by the end of February each year.

    • A copy of the entity’s corporate plan must be provided 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.[3]

    It is not necessary for entities to send copies of their corporate plans to the Office of the Finance Minister directly - entities will meet the requirement to provide a copy of their corporate plan to the Finance Minister by emailing a copy of their corporate plan to the Department of Finance at: pgpa@finance.gov.au

    • The content requirements for corporate plans are set out in subsection 16E(2) of the PGPA Rule. The corporate plan must include:
      • an introduction;
      • the purposes of the entity;
      • the key activities;
      • the operating context of the entity (addressing environment, capabilities, risk oversight and management, cooperation, and subsidiaries); and
      • the planned performance of the entity, including performance measures.
    • This guide recognises that it is the accountable authorities who are responsible for developing and tailoring their corporate plans to suit their entity’s particular circumstances.
    • Entities do not have to structure their corporate plan in the same order as the requirements of the PGPA Rule. Entities are encouraged to present their corporate plans in a manner that best demonstrates how they intend to achieve their purposes over the period covered by the plan.
    • Where appropriate, each requirement is illustrated by examples of how it has been addressed by particular entities.

    Effect of amendments made by Public Governance, Performance and Accountability Amendment (2020 Measures No. 1) Rules 2020

    This guidance incorporates the amendments of section 16E, and the insertion of section 16EA, made by the Public Governance, Performance and Accountability Amendment (2020 Measures No. 1) Rules 2020.

    The amendments apply in relation to a corporate plan that is prepared for a reporting period that begins on or after 1 July 2020.

    For entities with reporting periods that align with financial years, this means that the amendments will first apply for their corporate plan prepared for the 1 July 2020 to 30 June 2021 reporting period.

    For entities with reporting periods aligned to calendar years, this means that the amendments will first apply for their corporate plan prepared for the 1 January 2021 to 31 December 2021 reporting period.

     

  • Topic
    PGPA Act, Enhanced Commonwealth performance framework
    Audience

    This guide is relevant to officers of Commonwealth companies (including chief financial officers, chief operating officers and their units in Commonwealth companies) with responsibility for assisting directors in preparing corporate plans.

    The guide is also intended to support officers who manage the activities (as described in the corporate plan) of a company.

    Key points

    Purpose

    This guide provides information on:

    • the obligations on directors under the Public Governance, Performance and Accountability Act 2013 (PGPA Act) to prepare corporate plans for companies.
    • the requirements, as prescribed by the Public Governance, Performance and Accountability Rule 2014 (PGPA Rule) in sections 16E and 27A, for corporate plans published by companies.

    Key Points

    • The directors of a Commonwealth company must prepare a corporate plan for the company 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. 

    Commonwealth companies that report on a financial year basis must publish their updated corporate plans on their website by 31 August each year. Companies that report on a calendar year basis must publish a corporate plan by the end of February each year.

    • A copy of the company’s corporate plan must be provided 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.

    It is not necessary for companies to send copies of their corporate plans to the Office of the Finance Minister directly - companies will meet the requirement to provide a copy of their corporate plan to the Finance Minister by emailing a copy of their corporate plan to the Department of Finance at:pgpa@finance.gov.au

    • Commonwealth companies must prepare their corporate plans in accordance with the requirements of section 27A of the PGPA Rule.
    • The guide recognises that it is the directors of companies who are responsible for developing and tailoring their corporate plans to suit their company’s particular circumstances.
    • Companies do not have to structure their corporate plan in the same order as the requirements of the PGPA Rule. Companies are encouraged to present their corporate plans in a manner that best demonstrates how they intend to achieve their purposes over the period covered by the plan.
    • Where appropriate, each requirement is illustrated in this guide by examples of how it has been addressed by particular Commonwealth companies.

    Effect of amendments made by Public Governance, Performance and Accountability Amendment (2020 Measures No. 1) Rules 2020

    This guidance incorporates the amendments to sections 16E and 27A made by the Public Governance, Performance and Accountability Amendment (2020 Measures No. 1) Rules 2020.

    The amendments apply in relation to a corporate plan that is prepared for a reporting period that begins on or after 1 July 2020.

    For companies with reporting periods that align with financial years, this means that the amendments will apply from their corporate plan prepared for the 1 July 2020 to 30 June 2021 reporting period.

    For companies with reporting periods aligned to calendar years, this means that the amendments will apply from their corporate plan prepared for the 1 January 2021 to 31 December 2021 reporting period.

  • Topic
    PGPA Act
    Audience

    This guide is for officials of Commonwealth entities who are responsible for assisting their accountable authority to prepare annual performance statements.

    Key points

    This guide:

    • provides guidance to assist accountable authorities to prepare and publish annual performance statements for their entities as required by section 39 of the Public Governance Performance and Accountability Act 2013 (PGPA Act);
    • outlines the minimum requirements, prescribed by the Public Governance, Performance and Accountability Rule 2014 (PGPA Rule) in section 16F, for entities producing annual performance statements.
  • Topic
    PGPA Act, Enhanced Commonwealth performance framework
    Audience

    This guide applies to the accountable authorities of non-corporate Commonwealth entities. The guide is also intended to support units responsible for preparing the annual report within non-corporate Commonwealth entities.

    Key points

    This guide:

    • sets out the obligations for non-corporate Commonwealth entities under section 46 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act) to prepare an annual report

    • provides guidance on fulfilling the mandatory requirements for the content of annual reports as prescribed by the Public Governance, Performance and Accountability Rule 2014 (PGPA Rule) in sections 17AA to 17AJ in Subdivision A – Annual report for non‑corporate Commonwealth entities

    • provides guidance on fulfilling the mandatory digital publication requirements for all Commonwealth Entity and Commonwealth Company annual reports as prescribed by the Public Governance, Performance and Accountability Rule 2014 in section 17ABA in Subdivision A – Annual report for non‑corporate Commonwealth entities; including standard data templates that entities are required to complete when publishing using the Digital Reporting tool. To gain access to the digital reporting tool, entity annual report coordinators should email the Department of Finance at PGPA@finance.gov.au.

    This guide applies to annual reports prepared for reporting periods that begin on or after 29 June 2018 and has been updated to reflect the established requirements. These include entities publishing the annual report through the digital reporting tool, and the reporting of executive remuneration. Other existing requirements remain unchanged.

  • Topic
    PGPA Act
    Audience

    This guide applies to the accountable authorities of corporate Commonwealth entities. The guide is also intended to support units responsible for preparing the annual report within corporate Commonwealth entities. 

    Key points

    This guide:

    • sets out the obligations of accountable authorities of corporate Commonwealth entities under section 46 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act), to prepare annual reports for their entities.
    • provides guidance on fulfilling the mandatory requirements for the content of annual reports as prescribed by the Public Governance, Performance and Accountability Rule 2014 (PGPA Rule) in sections 17BA to 17BF in Subdivision B – Annual report for corporate Commonwealth entities.
    • provides guidance on fulfilling the mandatory digital publication requirements for all Commonwealth Entity and Commonwealth Company annual reports as prescribed by the Public Governance, Performance and Accountability Rule 2014 in section 17BCA in Subdivision A – Annual report for corporate Commonwealth entities; including standard data templates that entities are required to complete when publishing through the Digital Reporting tool. To gain access to the digital reporting tool, entity annual report coordinators should email the Department of Finance at PGPA@finance.gov.au

    This guide applies to annual reports prepared for reporting periods that begin on or after 29 June 2018 and has been updated to reflect the established requirements. These include entities publishing the annual report through the digital reporting tool, and the reporting of executive remuneration. Other existing requirements remain unchanged.

  • Topic
    PGPA Act, Enhanced Commonwealth performance framework
    Audience

    This guide applies to the Directors of Commonwealth companies. The guide is also intended to support units responsible for preparing the annual report within Commonwealth companies

    Key points

    This guide:

    • sets out the obligations for companies under section 97 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act), to prepare an annual report.
    • provides guidance on fulfilling the mandatory requirements for the content of annual reports as prescribed by the Public Governance, Performance and Accountability Rule 2014 (PGPA Rule) in sections 28A to 28F in Part 3-3 – Annual report for Commonwealth companies.
    • provides guidance on fulfilling the mandatory digital publication requirements for all Commonwealth Entity and Commonwealth Company annual reports as prescribed by the Public Governance, Performance and Accountability Rule 2014 in section 28 CA in Part 3-3 – Annual report for Commonwealth companies; including standard data templates that entities are required to complete when publishing using the Digital Reporting tool. To gain access to the digital reporting tool, entity annual report coordinators should email the Department of Finance at PGPA@finance.gov.au.

    The guide applies to annual reports for reporting periods that begin on or after 29 June 2018 and has been updated to reflect the established requirements. These include publishing of the annual report through the digital reporting tool, and the reporting of executive remuneration. Other existing requirements remain unchanged.

  • Topic
    PGPA Act, Enhanced Commonwealth performance framework
    Audience

    The Commonwealth entities executive remuneration reporting guide for annual reports (the Guide) applies to all Commonwealth entities required to prepare an annual report under the Public Governance, Performance and Accountability Act 2013 (PGPA Act).

    Executive remuneration reporting by Commonwealth companies for annual reports is covered by Resource Management Guide No.139 – Commonwealth companies Executive Remuneration Reporting Guide for Annual Reports.

    Key points
    • Commonwealth entities[1] are required to disclose executive remuneration information in their annual reports in accordance with the Public Governance, Performance and Accountability Rule 2014[2] (PGPA Rule). Subdivision C of Part 2-3 of the PGPA Rule sets out the executive remuneration disclosure requirements for Commonwealth entities.
    • Commonwealth entities are required to present remuneration information for key management personnel (KMP), senior executives and other highly paid staff.
    • For the 2019-20 reporting period, the threshold for other highly paid staff is $225,000.
    • The PGPA Rule does not affect the reporting of KMP information in entity financial statements in accordance with section 42 of the PGPA Act.[3]
    • This Guide provides:
       
      • information to assist Commonwealth entities to meet the executive remuneration reporting requirements as outlined in the PGPA Rule; and
         
      • examples of the presentation of the relevant tables and items to be included in the required remuneration disclosures.
     

    [1] Section 10 of the PGPA Act defines Commonwealth entities. Subsidiaries of Commonwealth entities are not Commonwealth companies and therefore are not within the scope of the enhanced executive remuneration reporting requirements.

    [2] Incorporating the Public Governance, Performance and Accountability Amendment (Reporting Executive Remuneration) Rules 2019.

    [3] Under section 42 of the PGPA Act, Commonwealth entities must prepare annual financial statements in accordance with the Australian Accounting Standards and any other requirements prescribed by the rules.

  • Topic
    PGPA Act, Enhanced Commonwealth performance framework
    Audience

    The Commonwealth companies executive remuneration reporting guide for annual reports (the Guide) applies to all Commonwealth companies required to prepare an annual report under the Public Governance, Performance and Accountability Act 2013 (PGPA Act).

    Executive remuneration reporting by Commonwealth entities for annual reports is covered by Resource Management Guide No. 138 – Commonwealth entities Executive Remuneration Reporting Guide for Annual Reports.

    Key points
    • Commonwealth companies[1] are required to disclose executive remuneration information for key management personnel (KMP) in their annual reports in accordance with sections 28EA to 28EC of the Public Governance, Performance and Accountability Rule 2014 (PGPA Rule). 
    • The PGPA Rule does not affect the reporting of KMP information in company financial statements in accordance with the requirements of the Corporations Act 2001.[2] This Guide provides:
      • information to assist Commonwealth companies to meet the executive remuneration reporting requirements as outlined in the PGPA Rule; and
      • examples of the presentation of the relevant tables and items to be included in the required remuneration disclosures.
     

    [1] Subsidiaries of Commonwealth companies are not within the scope of the enhanced executive remuneration reporting requirements.

    [2] Section 97 of the PGPA Act sets out the annual report requirements for Commonwealth companies.

  • Topic
    PGPA Act, Managing risk and internal accountability
    Audience
    Key points
  • Topic
    PGPA Act, Managing risk and internal accountability
    Audience

    These guides are relevant to non-corporate Commonwealth entities (NCEs) and corporate Commonwealth entities (CCEs)

    It may also assist audit committees in understanding their role and responsibilities. 

    Key points
  • Topic
    PGPA Act, Managing risk and internal accountability
    Audience

    This guide is relevant to officials of non-corporate Commonwealth entities and corporate Commonwealth entities (collectively, Commonwealth entities), including their accountable authorities.

    Generally, officials are people who are employees of, or are otherwise in, or form part of, a Commonwealth entity. Part 1 of this guide has more detail on who is an official.

    Employees and members of the governing boards of Commonwealth companies are not officials for the purpose of the PGPA Act. 

    Key points
    • Officials are required to exercise their powers and perform their functions under the PGPA Act and rules in accordance with certain standards of behaviour. The PGPA Act does this through imposing a set of general duties on officials:
      • duty of care and diligence (section 25)
      • duty to act honestly, in good faith and for a proper purpose (section 26)
      • duty in relation to use of position (section 27)
      • duty in relation to use of information (section 28)
      • duty to disclose material personal interests (section 29).
    • To meet these duties, officials need to consider and, where relevant, comply with:
      • finance law, which includes the PGPA Act and rules and instruments made under the PGPA Act, as well as Appropriation Acts, and
      • the systems of risk management and internal control in their entity established by their accountable authority (including any delegations or authorisations).
    • These general duties in the PGPA Act do not limit duties contained in other Commonwealth laws or any principles or rules of common law or equity (section 31 of the PGPA Act). The duties in the PGPA Act are in addition to any other legal duties that an official may have under their employment framework or through an employment contract, e.g.:
      • Australian Public Service (APS) employees employed under the Public Service Act 1999 (PS Act) are also subject to the APS Code of Conduct (section 13 of the PS Act)
      • parliamentary staff employed under the Parliamentary Service Act 1999 are also subject to the Parliamentary Service Code of Conduct (section 13 of the Parliamentary Service Act 1999)
      • defence personnel or AFP officers have duties, values or professional standards of employment set out in the Defence Force Discipline Act 1982 and the Australian Federal Police Act 1979 (some of these duties may displace duties in the PGPA Act).
    • The duties in the PGPA Act are consistent with duties in APS Code of Conduct. For APS employees, adherence with the APS Code of Conduct will ordinarily meet the requirements of the duties under the PGPA Act (for a comparison of duties under the PGPA Act and PS Act, see the Appendix).
    • Officials who do not discharge their general duties can be subject to employment sanctions, including termination of employment (for staff) or termination of appointment (for board members or office holders).
  • Topic
    PGPA Act, Managing risk and internal accountability
    Audience
    Key points
  • Topic
    PGPA Act, Managing risk and internal accountability
    Audience

    This guide applies to all officials (e.g., finance teams) in Commonwealth entities when using the terms audit or assurance in relation to independent external services requested by the Australian Government that would ordinarily be carried out by ‘assurance professionals’. The external services would be carried out within frameworks issued by the Australian Auditing and Assurance Standards Board (AUASB) and the Accounting Professional and Ethical Standards Board (APESB).

    Key points

    This guide:

    • Policy: Government requirements for audit and assurance should be expressed with reference to professional standard-setting frameworks, such as auditing standards issued by the AUASB and ethical standards issued by the APESB.
    • Purpose: to provide guidance on the use of the terms audit and assurance and to clarify their meanings to assist in guiding Commonwealth entities about the correct circumstances of their use. As audit and assurance may be used in common language these terms are susceptible to use in describing engagements that do not align with the professional standard-setting frameworks that govern such services, which can lead to complications when oversight processes are discussed publicly.
    • The AUASB is the chief body concerned with ensuring high quality audit and assurance standards. The terminology used by the AUASB is identified and explained in this Guide.
  • Topic
    PGPA Act, Managing risk and internal accountability
    Audience
    Key points
  • Topic
    PGPA Act, Managing risk and internal accountability
    Audience

    This guide is for officials in non-corporate Commonwealth entities (NCEs) who have to advise their accountable authority on prescribing a person as an official of the NCE.

    Key points

    If an NCE requires a contracted individual to exercise a power or function under the PGPA Act or PGPA Rule, the contractor can be prescribed as an official in accordance with item 1A of the table in section 9(1) of the PGPA Rule. A contractor who becomes a prescribed official:

    • 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
    • requires a delegation of the powers or functions in the PGPA Act or PGPA Rule that they are required to exercise (with accompanying instructions if required).
  • Topic
    PGPA Act, Managing risk and internal accountability
    Audience

    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).

    Key points

    This guide is relevant to officials in non-corporate Commonwealth entities (NCEs) and corporate Commonwealth entities (CCEs) who have compliance responsibilities under the finance law relating to the governance, performance and resource management of their entity. This guidance is not relevant to Commonwealth companies, as Commonwealth companies are not Commonwealth entities for the purposes of the PGPA Act.

  • Topic
    PGPA Act, Managing relevant money
    Audience

    This guide is relevant to officials of:

    • non-corporate Commonwealth entities (NCEs) who are delegated investment power from the Finance Minister or Treasurer under section 58 of PGPA Act and section 22 PGPA Rule and
    • corporate Commonwealth entities (CCEs) who are authorised to invest relevant money under section 59 of the PGPA Act.
    Key points
  • Topic
    PGPA Act, Managing relevant property
    Audience
    Key points
  • Topic
    PGPA Act, Managing relevant property
    Audience

    This guide applies to officials of non-corporate Commonwealth entities (NCEs) who:

    • have been delegated the power to enter into, vary or administer arrangements in relation to ‘other CRF money’
    • need to brief their accountable authority about issues relating to other CRF money.
    Key points
    • Sometimes the most effective and efficient way to achieve the purposes of a NCE will be to arrange for a person outside the Commonwealth to use or manage money that belongs to the Commonwealth for and on behalf of the Commonwealth.

    • Money held for and on behalf of the Commonwealth by a person who is not an official forms part of the Consolidated Revenue Fund (CRF) for the purposes of section 81 of the Constitution and is referred to as ‘other CRF money’ in the PGPA Act (sections 8, 105(2)):

      • ‘other CRF money’ is money that makes up part of the CRF other than relevant money or money listed in section 29A of the PGPA Rule

    • A person outside the Commonwealth using or managing other CRF money is not an official, they are acting as the agent of the Commonwealth, as such:

      • they are not directly subject to the PGPA Act or rules

      • the management of other CRF money is principally addressed through the contractual arrangement.

    • The collection and expenditure of other CRF money will need to be credited and debited against an appropriation.

  • Topic
    PGPA Act, Managing relevant money
    Audience
    Key points
  • Topic
    PGPA Act
    Audience

    This guide applies to:

    • all non-corporate Commonwealth entities (NCEs); and
    • corporate Commonwealth entities (CCEs), Commonwealth companies, or private sector persons that manage receipts for and on behalf of a NCE.
    Key points

    This guide:

    The above list does not cover all legislative and policy requirements to manage receipts.

  • Topic
    Commercial Investment
    Audience
    Key points
  • Topic
    PGPA Act, Using relevant money
    Audience

    The following guide is relevant to officials of non-corporate Commonwealth entities (NCEs) and corporate Commonwealth entities (CCEs) who:

    • have been delegated the power or authorised by their accountable authority to approve commitments of relevant money or enter into, vary and administer arrangements on behalf of the Commonwealth or a Commonwealth entity, and
    • are responsible for providing advice on the use of these powers to other officials or ministers.

    This guide replaces RMG 400: Approving commitments of relevant money (July 2014).

    Key points

    Non-corporate Commonwealth entities (NCEs)

    A. Committing relevant money

    1. The Commonwealth commits and spends relevant money to achieve the purposes and objectives of the Australian Government.
    2. Relevant money is money standing to the credit of any bank account of the Commonwealth (or CCE), or money that is held by the Commonwealth (or CCE).
    3. 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).

    What is an arrangement?

    1. An arrangement includes a contract, agreement, deed or understanding. An arrangement also includes any other instrument between parties that creates rights and obligations.
    2. An accountable authority of a NCE can enter into, vary and administer particular arrangements where authorised by legislation, including under section 23 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act) and section 32B of the Financial Framework (Supplementary Powers) Act 1997 (FF(SP) Act).
    3. 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.
    1. The purpose or outcome being sought by an entity will influence the type of arrangement that it enters into and the legislation, rules and policies that will apply (in addition to the PGPA Act), for example:

    B. Legislative authority to enter into arrangements involving the commitment of relevant money

    1. The accountable authority of a NCE must generally have legislative authority to enter into arrangements involving the commitment of relevant money. For NCEs, this legislative authority can come from:
    • for arrangements relating to the ordinary activities of government, section 23 of the PGPA Act
    • for arrangements covered by another legislative scheme, that specific legislation
    • for arrangements not authorised by either of the above and made for the purposes of an arrangement, grant or program listed in the Financial Framework (Supplementary Powers) Regulations 1997, section 32B of the FF(SP) Act (e.g. this legislation supports the entry of arrangements for the purposes of many grants programs).
    1. For more on the different ways officials can commit relevant money, see RMG 411: Grants, procurements and other financial arrangements (July 2014).

    Delegating the power to enter into an arrangement

    When to use section 23 of the PGPA Act?

    1. Section 23 of the PGPA Act provides authority for the Commonwealth to commit relevant money by entering into and varying arrangements for the ordinary activities of government. The PGPA Act provides an accountable authority with the power to:
    • enter into, vary and administer arrangements relating to the affairs of their entity (subsection 23(1)) and
    • approve commitments of relevant money for which the accountable authority is responsible (subsection 23(3)).
    1. The ordinary activities of government can include:
    • procuring goods or services for the purposes of running an entity (e.g. paying for stationery, furnishings, information technology, electricity and other utilities, rent, travel, vehicles, subscriptions or attending conferences)
    • paying contractors (e.g. engaging a consultant to conduct research for the entity)
    • paying for legal, accounting and other professional services.
    1. Typically, the ordinary activities of government are funded out of an entity’s annual departmental appropriation.

    Is a separate approval to commit relevant money required before you can enter into an arrangement under section 23 of the PGPA Act?

    1. The PGPA Act does not require a separate approval to commit relevant money to be given (under subsection 23(3)) as a precondition to an arrangement being entered into under subsection 23(1).
    2. Under the framework a delegate may enter into the arrangement under subsection 23(1) without seeking any prior approval. In these circumstances:
    • the delegate will, as an implicit part of entering into the arrangement, approve any commitment of relevant money resulting from the entry of the arrangement
    • the delegate will need to record their approval in writing as soon as practicable, in accordance with section 18 of the PGPA Rule.
    1. A written record is required because section 18 of the PGPA Rule requires approval for a commitment of relevant money to be recorded (in writing) in all cases, and not just when separate approval is required under subsection 23(3) of the PGPA Act.
    2. In managing their entity, an accountable authority can decide to implement a two step process by prescribing this requirement in the entity’s internal controls (e.g. in accountable authority instructions or in the delegation instrument itself).  In doing so, they may clarify when an approval for a commitment of relevant money will be required (under subsection 23(3)) separately to an arrangement being entered into under subsection 23(1). An accountable authority may decide that a two-step process is appropriate in certain circumstances. For example, they may decide that for an arrangement involving expenditure over a particular dollar limit:
    • an official who has been delegated power under subsection 23(3) must approve a commitment of relevant money (step 1)
    • once the relevant approval has been granted, an official who has been delegated power under subsection 23(1) can enter into the arrangement (step 2).
    1. Under this scenario, the official approving the commitment under step 1 would need to record their approval in writing as soon as practicable after giving it (section 18 of the PGPA Rule).

    When is an overarching approval to commit relevant money appropriate?

    1. Accountable authority delegations or instructions can permit an official to provide an ‘overarching approval’ for a group or class of purchases in particular circumstances. In deciding whether an overarching approval should be issued, the accountable authority and delegate will need to consider:
    • the nature of the arrangements, the extent of the entity’s internal controls, the environment the entity operates in and the risk appetite of the delegate and the entity, for example:
      • an overarching approval may be appropriate where the need for the goods or services is routine
      • the volume and price is known and the supplier is known, such as in the case of stationery supplies
    • imposing limitations on an overarching approval, for example:
      • a time limit to help ensure that conditions at the time the approval was granted are still in place when purchases are made
      • a dollar limit, e.g. purchases over a certain amount will not be covered by the approval and will require additional approval.
    1. Additional risks will exist for commitments that are non-routine. Directions issued by an accountable authority can indicate the circumstance when an overarching approval is permitted to be granted.

    Case study 1

    The CFO of Small Entity wishes to provide an overarching approval for the commitment of relevant money for stationery for the financial year. Based on expenses for previous financial years, the CFO can reasonably estimate the annual expense for stationery ($100,000). Small Entity utilises a panel of stationery providers established by its portfolio department. The terms and conditions under the panel arrangement were separately approved (i.e. assessed as being a proper use of relevant money) when the panel was set up.

    The CFO of Small Entity provides her approval for stationery purchases from the panel up to a total of $100,000 for the financial year and records this approval in writing. Once this limit has been reached for the year, a new approval is needed from the CFO. Controls are in place to monitor stationery expenses and instructions issued to entity officials on the process for ordering stationery and the type of stationery that can be purchased.

    Case Study 2

    The Business Unit Manager of a Large Entity wants to provide an overarching approval for the commitment of relevant money for all future travel within her unit for the financial year. The expenditure for previous financial years has varied considerably, and a reasonable estimate for travel within the unit cannot be accurately determined. There are a number of factors that influence the need and cost of each individual travel proposal. These include:

      • if the travel is needed in the particular situation or if alternatives can be used, i.e. video conferencing
      • if the type and class of travel is appropriate for the situation
      • if the additional costs associated with travel are appropriate, such as accommodation, meals and incidentals, or
      • if the timing of travel qualified for best fare of the day, or was in line with other government policies.

    Based on the circumstances, the Business Unit Manager decides that travel would more appropriately be considered and approved by a delegate on a case-by-case basis.
     

    Can a minister approve proposed expenditure?

    1. The PGPA Act recognises that a minister can approve a proposed expenditure of relevant money, providing they meet the requirements in section 71, namely, that the minister:
    • does not approve a proposed expenditure of relevant money unless they are satisfied, after making reasonable inquiries, that it constitutes a proper use of the money
    • record the terms of the approval in writing.
    1. If the proposed expenditure relates to a grant, then there are additional requirements in the Commonwealth Grants Rules and Guidelines that ministers must comply with.
    What are reasonable inquiries?
    1. Subsection 71(1) requires a minister to make reasonable inquiries about whether proposed expenditure would be a proper use of relevant money. The nature of the inquiries that the Minister will need to make in a particular case will depend on the nature, significance and value of the proposed expenditure as well as any associated risks.
    2. To be satisfied that a proposed expenditure would constitute a proper use of relevant money, the minister can take into account advice from the relevant Commonwealth entity. The entity is encouraged to take appropriate steps to advise their minister of the legal requirements of the PGPA Act and any other relevant information (such as, risks or impediments to achieving outcomes, or evidence to justify a recommendation) that may assist the minister to form a view about whether the proposed expenditure would involve a proper use of relevant money.
    What should a record of the approval of a minister include?
    1. A record of the approval is required to ensure that there is an appropriate record for accountability purposes (subsection 71(2)). The record should include relevant factual information such as the parties involved and the costs of a proposed expenditure.

    When to use the Financial Framework (Supplementary Powers) Act 1997?

    1. Section 32B of the FF(SP) Act can provide legislative authority for the Commonwealth to enter into, vary or administer an arrangement that is not authorised by section 23 of the PGPA Act or any other Commonwealth legislation.  To rely on this power, the proposed arrangement must be made for the purposes of an arrangement, grant or program listed in Schedule 1AA or 1AB of the Financial Framework (Supplementary Powers) Regulations 1997. For example, section 32B (together with the regulations) provides legislative authority for various:
    • open competitive grants rounds
    • targeted and one-off grants
    • entitlements programs that are not supported by their own legislation
    • sponsorships, subsidies and rebates
    • gifts of relevant money.

    What other legislation authorises Commonwealth expenditure?

    1. Other legislation can provide authority for the Commonwealth to spend money and/or enter arrangements.  For example, legislation can authorise:
    1. For more on these other ways to commit relevant money, see RMG 411: Grants, Procurements and Other Financial Arrangements

    C. Delegating the power to enter into an arrangement

       28.  An accountable authority can delegate the power in section 23 of the PGPA Act or section 32B of the FF(SP) Act to enter into an arrangement to:

    • officials in their entity or
    • officials of another NCE who will use or manage public resources that the accountable authority is responsible for.
    1. In delegating the power to enter into arrangements, an accountable authority must have regard to their duties in the PGPA Act, in particular:
    • their general duties in sections 25, 26, 27, 28 and 29
    • the duty to promote the proper use of the money, i.e. the efficient, effective, economical and ethical use of the money (sections 15, 16 and 18)
    • the duty to encourage cooperation to achieve common objectives, where practicable (section 17).
    1. An accountable authority can meet these duties by giving directions or instructions to officials about the commitment of relevant money, as part of the entity’s systems of risk management and internal control. For example, an accountable authority could give officials:
    • directions about the exercise of the delegated power
    • instructions about what is expected from officials to demonstrate the proper use of relevant money, such as when officials are required to obtain a separate approval to commit relevant money before entering an arrangement
    • instructions to encourage officials to consider, where practicable:
    • entering into a contract where the services can be accessed by other entities (such as the Department of Finance currently does in relation to the leasing of vehicles)
    • cooperatively sharing an arrangement that allows the inclusion of other entities
    • dealing with contracts and payments on behalf of other entities (in these cases, arrangements might also be established to reimburse the entity bearing the initial costs of such contracts).

    Who should an accountable authority delegate power to?

    1. The scope of an accountable authority’s delegation to approve a commitment of relevant money and/or enter into an arrangement will depend on the entity’s size, structure, risk appetite and operations. There is no ‘one‑size‑fits‑all’ approach for delegating relevant powers. For example:
    • in a very small entity, the accountable authority could determine that they will personally approve all commitments of relevant money, or will delegate this power to only one person (such as the CFO)
    • by contrast, in a large entity the powers may need to be delegated to a range of officials at an appropriate level to facilitate an efficient system of decision-making and administration within the entity and
    • in situations where NCEs cooperate to achieve a common objective, officials of another entity may be delegated the power to use public resources to achieve the desired outcome on behalf of government

    D. Exercising the power to enter into arrangements

    1. Accountable authorities and delegates exercising the power to commit relevant money by entering into an arrangement must meet their general duties under sections 25 to 29 of the PGPA Act. In particular, these officials must exercise the power to commit relevant money with the degree of care and diligence that a reasonable person would exercise in the same position (section 25 of the PGPA Act) and act honestly, in good faith and for a proper purpose (section 26 of the PGPA Act). This will include being suitably informed of and, where necessary, complying with:
    • their entity’s purposes and program objectives, and how the intended commitment of relevant money will support those purposes and objectives
    • the environment their entity operates in and the risk appetite of their entity
    • any relevant limitations, directions and instructions in their accountable authority’s delegation of the power or in accountable authority instructions
    • any other relevant statutory obligations (e.g. the requirement to keep a written record of any approval to commit relevant money in section 18 of the PGPA Rule, or requirements in the Commonwealth Procurement Rules or Commonwealth Grants Rules and Guidelines).
    1. Because NCEs are part of the Commonwealth, a delegate who enters into an arrangement for an NCE does so on behalf of the Commonwealth.

    What about an arrangement that involves an indemnity, guarantee or warranty?

    1. Some arrangements will not require money to be spent immediately, or at all, but will create an obligation that is contingent on particular events occurring (e.g. an indemnity, guarantee or warranty). An official considering an arrangement containing a contingent liability will need to take into account the same considerations as they do in relation to any other arrangement. However, additional considerations also arise because a contingent liability may impact and constrain the ability to allocate future resources of the entity and the Commonwealth more broadly.
    2. Section 60 of the PGPA Act gives the Finance Minister the power to grant indemnities, guarantees and warranties on behalf of the Commonwealth. The Finance Minister has delegated this power to accountable authorities in certain circumstances. That delegation is subject to particular directions (e.g. a delegate may generally only grant an indemnity, guarantee or warranty involving a contingent liability in relation to an event if the delegate is satisfied that the likelihood of the event occurring is less than 5% and the potential expenditure is likely to be less than $30 million). In order for an official to enter into an arrangement containing an indemnity, guarantee or warranty, they must have been sub‑delegated power in section 60 of the PGPA Act and must comply with any relevant directions. For further information, see RMG 414: Indemnities, guarantees and warranties.

    Who needs to be delegated power to administer an arrangement?

    1. Subsection 23(1) of the PGPA Act and subsection 32B(1) of the FF(SP) Act also confer power on an accountable authority or their delegate to administer an arrangement.  An official who makes decisions in relation to an arrangement will be ‘administering’ the arrangement. For example, a contract manager who decides that a contractor has reached a milestone and can receive their next payment will be ‘administering’ the contract. To make this decision, the contract manager must be delegated the power in subsection 23(1) of the PGPA Act or subsection 32B(1) of the FF(SP) Act.
    2. By contrast, a person who is performing processing tasks in relation to an arrangement, without making any decisions about the arrangement, is not administering the arrangement and will not need to be delegated power under subsection 23(1) of the PGPA Act or subsection 32B(1) of the FF(SP) Act.

     E. Recording an approval to commit relevant money 

      38.  An official can provide verbal approval for a commitment of relevant money. However, an official must (either when entering into an arrangement or, if required, as a separate step) make a written record of the approval as soon as              practicable after giving it (section 18 of the PGPA Rule).

      39.  If applicable, officials will also need to have regard to requirements for documenting approvals under the:

    1. The accountable authority’s instructions may set out what type of record of an approval to commit relevant money is appropriate in the circumstances. In considering what form of record will be sufficient, consider:
    • whether the record is proportionate to the significance, value, level of risk and sensitivities associated with the commitment, e.g. when hiring a taxi to attend a meeting, the cab charge voucher and a receipt from the taxi driver could themselves be sufficient to record the approval and
    • who will rely on the record.

    What is an appropriate record of an approval to commit relevant money?

    1. The written record of an approval can:
    • be paper or electronic (e.g. an email or within an information system where a delegate ‘presses a button’), provided it creates a record which can be retrieved (section 12 of the Electronic Transactions Act 1999)
    • be a signed minute, a signed purchase order or purchase order request
    • include the terms and/or basis of particular approvals
    • include other relevant information, such as the parties involved and the costs of the proposed commitment.
    1. For example, records of high-risk commitments could include, where appropriate:
    • the key elements of the proposed commitment, such as the item, cost, parties, timeframes and any risks associated with the proposal
    • any conditions on the approval, such as timing, or additional approvals and
    • contingent liabilities, such as indemnities.

    Corporate Commonwealth entities (CCEs)

    A. Committing of relevant money

    1. Commonwealth entities commit and spend relevant money to achieve the purposes and objectives of their entity and the Australian Government.
    2. Relevant money is money standing to the credit of any bank account of a CCE (or the Commonwealth), or money that is held by a CCE (or the Commonwealth).
    3. 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.

    What is an arrangement?

    1. An arrangement includes a contract, agreement, deed or understanding. An arrangement covers any other instruments between parties that create rights and obligations.
    2. The need to enter into an arrangement can arise in a variety of circumstances, for example where an entity:
    • 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
    • is cooperating with third parties, to achieve purposes of the entity.
    1. The purpose or outcome being sought will influence the type of arrangement. For example, the two most common types of arrangements are:

    B. Legislative authority to enter into arrangements involving the commitment of relevant money

    1. CCEs are legally separate from the Commonwealth and generally derive power to enter into arrangements involving the commitment of relevant money from their enabling legislation and from their body corporate nature.
    2. An accountable authority of a CCE may be able to delegate, or authorise officials to exercise, the power to enter into arrangements under the CCE’s enabling legislation. In deciding whether to devolve relevant powers, an accountable authority must have regard to their duties in the PGPA Act, in particular:
    • the general duties in sections 25, 26, 27, 28 and 29
    • the duty to promote the proper use of the money, i.e. the efficient, effective, economical and ethical use of the money (sections 15, 16 and 18)
    • the duty to encourage cooperation to achieve common objectives, where practicable (section 17).
    1. An accountable authority can meet these duties by giving directions or instructions to officials about the commitment of relevant money, as part of their entity’s systems of risk management and internal control. For example, an accountable authority could give officials:
    • instructions on what is expected from officials to demonstrate the proper use of relevant money
    • instructions to encourage officials to consider, where practicable:
    • entering into a contract where the services can be accessed by other entities
    • cooperatively sharing an arrangement that allows the inclusion of other entities
    • dealing with contracts and payments on behalf of other entities (in these cases, arrangements might also be established to reimburse the entity bearing the initial costs of such contracts).

    C. Exercising the power to enter into arrangement

    1. Officials who are able to enter into arrangements on behalf of a CCE must exercise the power in accordance with their general duties under sections 25 to 29 of the PGPA Act. In particular, they must exercise the power with the degree of care and diligence that a reasonable person would exercise in the same position (section 25 of the PGPA Act) and act honestly, in good faith and for a proper purpose (section 26 of the PGPA Act).  This will include being suitably informed of and, where necessary, complying with:
    • their entity’s purposes and program objectives
    • the environment their entity operates in and the risk appetite of their entity
    • any relevant instructions from their accountable authority
    • any other relevant legislative requirements (e.g. the requirement to keep a written record of an approval to commit relevant money in accordance with section 18 of the PGPA Rule or, where required, the Commonwealth Procurement Rules).

    D. Recording an approval to commit relevant money 

    1. An official can provide verbal approval for a commitment of relevant money. However, an official must make a written record of the approval as soon as practicable after giving it (section 18 of the PGPA Rule).
    2. If applicable, officials will also need to have regard to requirements for documenting approvals under Commonwealth Procurement Rules (CPRs), e.g. recording the procurement requirements and process, how value for money was considered and achieved and approvals and decisions made.  The CPRs apply to CCEs listed in section 30 of the PGPA Rule.
    3. The accountable authority’s instructions may set out what type of record of an approval to commit relevant money is appropriate in the circumstances.  In considering what form of record will be sufficient, consider:
    • whether the record is proportionate to the significance, value, level of risk and sensitivities associated with the commitment, e.g. when hiring a taxi to attend a meeting, the cab charge voucher and a receipt from the taxi driver could themselves be sufficient to record the approval and
    • who will rely on the record.

    What is an appropriate record of an approval to commit relevant money?

    1. The written record of an approval can:
    • be paper or electronic (an email or within an information system where a delegate ‘presses a button’), provided it creates a record which can be retrieved (section 12 of the Electronic Transactions Act 1999)
    • be a signed minute, a signed purchase order or purchase order request
    • include the terms and/or basis of particular approvals
    • include other relevant information, such as the parties involved and the costs of the proposed commitment.
    1. For example, records of high-risk commitments could include, where appropriate:
    • the key elements of the proposed commitment, such as the item, cost, parties, timeframes and any risks associated with the proposal
    • any conditions on the approval, such as timing, or additional approvals and
    • contingent liabilities, such as indemnities.
  • Topic
    PGPA Act, Using relevant money
    Audience

    This guide is relevant to staff in non-corporate Commonwealth entities (NCEs) who deal with requests to the Finance Minister to approve discretionary financial assistance under the Public Governance, Performance and Accountability Act 2013 (PGPA Act).

    Key points

    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.
  • Topic
    PGPA Act
    Audience

    This guide is relevant to:

    • officials in all non-corporate Commonwealth entities (NCEs) who are required to make a payment of an amount owed by the Commonwealth to a person at the time of their death.
    Key points
    1. Section 25 of the 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.
    2. The Finance Minister has delegated this power to accountable authorities of NCEs. The Finance Minister (or delegate) has the discretion to:
    • decide who receives an amount payable by the Commonwealth (e.g. a deceased person’s spouse or family member to help them to satisfy a debt or other requirement) and
    • make the payment before probate or letters of administration are produced (which can be a lengthy and complex process).
    1. The Finance Minister (or delegate) must take into consideration the people who are entitled to the payment under succession law (section 25(3) of the PGPA Rule). However, the Finance Minister (or delegate) is not bound to act in accordance with that law.
    2. In practice, section 25 is expected to be used in limited circumstances, since many statutory payment schemes (such as superannuation Acts) include arrangements for payments owed to a deceased person. Section 25 of the PGPA Rule is meant for circumstances when a payment is owed to a deceased person and there is no other provision to make this payment to an appropriate recipient, such as a spouse or family member. Section 25 is concerned with the discharge of a debt on the part of the Commonwealth. It is therefore likely to be used mainly in circumstances involving the death of an employee with accrued salary and entitlements potentially payable to a spouse.
    3. This rule was made under section 103(f) of the PGPA Act. Section 103 of the PGPA Act and section 25 of the PGPA Rule do not create an appropriation – payments must be made from existing appropriations.
  • Topic
    PGPA Act, Using relevant money
    Audience

    This guide is relevant to:

    • officials in non-corporate Commonwealth entities (NCEs); and
    • officials in corporate Commonwealth entities (CCEs), excluding trading Public Non-Financial Corporations (PNFCs) as classified by the Australian Bureau of Statistics.
    Key points

    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.
  • Topic
    PGPA Act, Using relevant money
    Audience

    This guide applies to officials of:

    • all non-corporate Commonwealth entities; and
    • corporate Commonwealth entities participating in the Whole of Australian Government (WoAG) Travel Arrangements.
    Key points

    This guide:

    • sets out requirements for achieving value for money when selecting, booking and approving official domestic air travel
    • takes effect from 1 October 2016
    • replaces Resource Management Guide No. 404: Official Domestic Air Travel – Use of the Lowest Practical Fare (July 2014).
  • Topic
    PGPA Act, Using relevant money
    Audience

    This guide applies to officials of:

    • all non-corporate Commonwealth entities; and

    • corporate Commonwealth entities participating in the Whole of Australian Government (WoAG) Travel Arrangements.

    Key points

    This guide:

    • sets out requirements for achieving value for money when booking and approving official international travel

    • takes effect from 1 October 2016

    • replaces Resource Management Guide No. 405: Official International Air Travel – Use of the Best Fare of the Day (February 2015).

  • Topic
    PGPA Act, Using relevant money
    Audience

    This guide applies to officials of all non-corporate Commonwealth entities (NCEs). Officials of corporate Commonwealth entities (CCEs) are encouraged to comply as a matter of good practice.

    Key points

    The Commonwealth Procurement Rules (CPRs) require NCEs to publish all open tenders on AusTender.

    This guide:

    • sets out NCE requirements for publishing and advertising open approaches to market and complements the use of AusTender.

    • replaces Resource Management Guide No. 407: Restrictions on advertising for open Approaches to Market (ATMs) (November 2015).

  • Topic
    PGPA Act, Using relevant money
    Audience

    This guide applies to officials of all non-corporate Commonwealth Entities (NCEs). Officials of corporate Commonwealth entities (CCEs) are encouraged to comply as a matter of good practice.

    Key points

    This guide:

    • outlines the government's mandatory requirements in relation to recruitment advertising.
    • assists NCEs to achieve value for money in recruitment advertising by:
      • encouraging the use of online recruitment advertising over print media advertising
      • restricting the use of major metropolitan and national newspapers for recruitment advertising (unless paragraph 6 on exemptions applies)
      • mandating maximum sizes and placement of recruitment advertisements in limited print media (such as regional, periodic publications or specialist media such as Indigenous); and
      • mandating that colour must not be used in print media advertisements, where the cost is higher than black and white print.
    • replaces Resource Management Guide No. 408: Recruitment Advertising Policy (September 2015).
  • Topic
    PGPA Act, Using relevant money
    Audience

    This guide is relevant to staff in non-corporate Commonwealth entities who deal with requests for financial assistance under the Scheme for Compensation for Detriment caused by Defective Administration (CDDA Scheme).

    Key points

    This guide:

    • assists staff of non-corporate Commonwealth entities in managing and determining CDDA Scheme claims
    • replaces the version published in May 2017.
  • Topic
    PGPA Act, Using relevant money
    Audience

    This Resource Management Guide (RMG) is relevant to accountable authorities and officials involved in resource management in all NCEs [1]. It is also relevant to prescribed corporate Commonwealth entities (CCEs) with respect to the CPRs.

    Key points

    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.
  • Topic
    PGPA Act, Using relevant money
    Audience

    This guide is relevant to accountable authorities and officials involved in grants administration in all non-corporate Commonwealth Entities (Entities)[1].

    Key points

    This Resource Management Guide (RMG) provides guidance for accountable authorities and officials on briefing requirements that apply to grants administration. It also includes other guidance to assist with implementing the Commonwealth Grants Rules and Guidelines 2017 (CGRGs) and provides detailed technical information in the attached templates.

    It reflects the resource management framework under the Public Governance, Performance and Accountability Act 2013 (PGPA Act). The CGRGs are issued by the Finance Minister under section 105C of the PGPA Act.

    This guide replaces Resource Management Guide (RMG) 412 (dated 2014): Australian Government Grants – Briefing and Reporting.

  • Topic
    PGPA Act, Using relevant money
    Audience

    This guide is relevant to non-corporate Commonwealth entities (NCEs) and corporate Commonwealth entities (CCEs), within the meaning of these terms in the Public Governance, Performance and Accountability Act 2013 (PGPA Act).

    Key points

    This guide:

    • provides an overview of the legislative requirements for Australian Government cash management, central banking and transactional banking
    • supports an understanding of entity requirements for the banking of relevant money
    • provides an overview of appropriations and cash, central cash management roles and the Central Budget Management System (CBMS).

    This guide replaces:

    • The banking of cash by Commonwealth entities (RMG 413)—June 2014

    • Banking of relevant money received by Ministers and officials (RMG 300)
      - June 2014

  • Topic
    PGPA Act
    Audience

    This guide is relevant to officials in non-corporate Commonwealth entities (NCEs) who:

    • have been sub-delegated by their accountable authority the power to grant an indemnity, guarantee or warranty on behalf of the Commonwealth
    • need to brief their accountable authority about an indemnity, guarantee or warranty or
    • request the Finance Minister grant an indemnity, guarantee or warranty.
    Key points
    • 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 types of contingent liabilities (i.e. they may give rise to a liability on the occurrence of a future event), which are legally enforceable obligations.
    • 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 the scope of the delegation, an indemnity can only be granted on behalf of the Commonwealth if it has been 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.
  • Topic
    PGPA Act, Using relevant money
    Audience

    This guide is relevant to policy officials in non-corporate Commonwealth entities (NCEs).

    Key points

    This guide:

    • is implementation guidance for sections 4.14 and 4.15 of the Commonwealth Grants Rules and Guidelines (CGRGs) and sections 4.7 and 4.8 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.

  • Topic
    PGPA Act, Using relevant money
    Audience

    This guide is relevant to all non-corporate Commonwealth entities (NCEs). It is particularly relevant to Chief Financial Officers (CFOs) and their staff, and officials who are responsible for the NCEs internal controls and processes.

    Corporate Commonwealth entities (CCEs) are encouraged to apply this policy.

    Key points

    This guide:

    • replaces RMG 417 (dated July 2019): Supplier Pay On-Time or Pay Interest Policy;
    • replaces RMG 416 (dated November 2016): Facilitating Supplier Payment Through Payment Card;
    • outlines the Government’s policy on payment timeframes for invoices arising from procurement contracts to non-government individuals and entities; and
    • uses terms as defined in the Commonwealth Procurement Rules.
  • Topic
    PGPA Act, Using relevant money
    Audience

    This guide applies to officials of:

    • all non-corporate Commonwealth entities; and

    • corporate Commonwealth entities using the Travel and Related Card Services Arrangement through participation in the Whole of Australian Government (WoAG) Travel Arrangements.

    Key points

    This guide:

    • sets out the payment terms for entities using the Travel and Related Card Services Arrangement established as part of the WoAG Travel Arrangements

    • reflects contractual arrangements that commenced from 2 July 2012

    • replaces Resource Management Guide No. 418: Payment Terms for Australian Government Travel Arrangements — Card Services (July 2014).

  • Topic
    PGPA Act, Assurance and accounting
    Audience

    This guide applies to all Commonwealth entities.

    Key points
    • laws/rules/policy: The federal financial relations (FFR) framework established by the Intergovernmental Agreement on Federal Financial Relations (IGA) and supported by the Federal Financial Relations Act 2009 and the COAG Reform Fund Act 2008 was introduced on 1 January 2009. The FFR framework centralised payments to and through the States and Territories for general and specific purposes.
    • purpose: To provide guidance to entities 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. The correct classification of payments is important as this determines how each payment is reported in the Australian Government’ Budget papers; which Commonwealth entity is responsible for making and reporting the payment in financial statements and whether payments are subject to FFR framework and require an agreement under the IGA, or the Department of Finance (Finance) – issued Commonwealth Grant Rules and Guidelines (CGRGs).
    • reference previous guidance: This guide replaces Finance Circular 2010/02 – Classification of Payments to the States and Territories and Commonwealth Own –Purpose Expenses.
  • Topic
    PGPA Act, Using relevant money
    Audience

    This guide is relevant to all non-corporate Commonwealth entities (NCEs).

    Corporate Commonwealth entities (CCEs) are encouraged to apply this policy.

    Key points

    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.

  • Topic
    PGPA Act, Using relevant money
    Audience

    This guide is relevant to accountable authorities and officials involved in grants administration in all non-corporate Commonwealth entities (NCEs)1.

    Key points

    This Resource Management Guide (RMG) sets out the requirements for the publication of grants on GrantConnect and outlines arrangements in relation to additional publication of grants information in other ways.

    This guide applies to grants defined under paragraph 2.3 of the Commonwealth Grants Rules and Guidelines 2017 (CGRGs). It does not apply to grants that are excluded from the definition of a grant under paragraph 2.6 of the CGRGs.

  • Topic
    PGPA Act, Using relevant money
    Audience

    This guide is relevant to accountable authorities and officials undertaking procurements in:

    • non‑corporate Commonwealth entities (NCEs); and

    • corporate Commonwealth entities (CCEs) prescribed in section 30 of the Public Governance, Performance and Accountability Rule 2014 as having to comply with the Commonwealth Procurement Rules (CPRs).

    These entities are referred to as relevant Commonwealth entities in this guide.

    This guide contains general information only. It does not replace legal advice that may be required in relation to the rights and obligations of Commonwealth entities in the context of a particular complaint or procurement process.

    Key points

    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.

  • Topic
    PGPA Act, Managing relevant property, Property and Construction
    Audience
    Key points