The PGPA Act and PGPA Rule Compliance Summary

The PGPA Act and PGPA Rule Compliance Summary

This table provides a summary of compliance reporting requirements under the PGPA Act and Rules as at January 2015. This is designed to be used as a guide for entities and may provide the basis of internal compliance checklists. This table does not interpret the legal obligations or requirements of the PGPA Act or Rules and should only be used for compliance reporting purposes.

Where a section has not been included in the table, no compliance element is included in that section.

Accountable Authorities

Section Title Requirement Reportable Instances Applicable

Section 15

Section 16

Section 17

Section 18

Duty to govern the

Commonwealth entity

Duty to establish and maintain systems relating to risk and control

Duty to encourage cooperation with others

Duty in relation to requirements imposed on others

(1) The accountable authority of a Commonwealth entity must govern the entity in a way that:

(a) promotes the proper use and management of public resources for which the authority is responsible; and

(b) promotes the achievement of the purposes of the entity; and

(c) promotes the financial sustainability of the entity.

(2) In making decisions for the purposes of subsection (1), the accountable authority must take into account the effect of those decisions on public resources generally.

The accountable authority of a Commonwealth entity must establish and maintain:

(a) an appropriate system of risk oversight and management for the entity; and

(b) an appropriate system of internal control for the entity; including by implementing measures directed at ensuring officials of the entity comply with the finance law.

The accountable authority of a Commonwealth entity must encourage officials of the entity to cooperate with others to achieve common objectives, where practicable.

When imposing requirements on others in relation to the use or management of public resources for which the accountable authority of a Commonwealth entity is responsible, the accountable authority must take into account:

Non-compliance is reportable where an accountable authority does not comply with his/her duty to govern the entity in a way that promotes the proper use and management of public resources, the achievement of the purposes of the entity; or the financial sustainability of the entity.

Non-compliance is reportable where an accountable authority does not comply with his/her duty to establish and maintain systems of risk oversight and management, and internal control for the entity.

Non-compliance is reportable where an accountable authority does not comply with his/her duty to encourage officials of the entity to cooperate with others to achieve common objectives where practicable.

Non-compliance is reportable where an accountable authority does not comply with his/her duty to take into account the matters of section 18 when imposing requirements on others in relation to the use or

Corporate and non-corporate




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January 2015


Section Title

Section 19

Requirement Reportable Instances Applicable

(a) the risks associated with that use or management; and

(b) the effects of imposing those requirements.

(1) The accountable authority of a Commonwealth entity must do the following:

(a) keep the responsible Minister informed of the activities of the entity and any subsidiaries of the entity;

(b) give the responsible Minister or the Finance Minister any reports, documents and information in relation to those activities as that Minister requires;

(c) notify the responsible Minister as soon as practicable after the accountable authority makes a significant decision in relation to the entity or any of its subsidiaries;

(d) give the responsible Minister reasonable notice if the accountable authority becomes aware of any significant issue that may affect the entity or any of its subsidiaries;

(e) notify the responsible Minister as soon as practicable after the accountable authority becomes aware of any significant issue that has affected the entity or any of its subsidiaries.

(2) However, for a Commonwealth entity that is related to a court or tribunal, subsection (1) applies only to activities, reports, documents, information or notifications about matters of an administrative nature.

(3) Without limiting subsection (1), the rules may prescribe matters to be taken into account in deciding whether a decision or issue is significant.

(4) The accountable authority must comply with a requirement under paragraph (1)(b) within the time limits set by the

Minister concerned.

Relationship with other laws and powers

(4A) If a Commonwealth entity has enabling legislation, then subsection (1) applies only to the extent that compliance with that subsection is not inconsistent with compliance with that legislation.

(4B) This section is subject to any Commonwealth law that prohibits disclosure of particular information. management of public resources.

Non-compliance is reportable where an accountable authority does not comply with his/her duty to provide the information to the responsible Minister or the Finance Minister as required under section 19 and within the time limits set by the Minister concerned.


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Duty to keep responsible

Minister and Finance

Minister informed


Section Title

Section 21

Section 22

Section 23


(5) This section does not limit any other power that a Minister has to require information from a Commonwealth entity.

The accountable authority of a non-corporate Commonwealth entity must govern the entity in accordance with paragraph 15(1)(a) in a way that is not inconsistent with the policies of the Australian

Government.

(1) The Finance Minister may make an order (a government policy order ) that specifies a policy of the Australian

Government that is to apply in relation to one or more corporate Commonwealth entities.

(2) Before making a government policy order that applies in relation to a corporate Commonwealth entity, the Finance

Minister must be satisfied that the Minister responsible for the policy has consulted the entity on the application of the policy.

(3) If a government policy order applies in relation to a corporate

Commonwealth entity, the accountable authority of the entity must ensure that the order is complied with:

(a) in relation to the entity; and

(b) in relation to any subsidiary of the entity, so far as practicable.

(4) A government policy order is a legislative instrument, but section 42 (disallowance) of the Legislative Instruments Act

2003 does not apply to it.

(1) The accountable authority of a non-corporate Commonwealth entity may, on behalf of the Commonwealth:

(a) enter into arrangements relating to the affairs of the entity; and

(b) vary and administer those arrangements.

(2) An arrangement includes a contract, agreement, deed or understanding.

Non-compliance is reportable by the accountable authority of a non-corporate Commonwealth entity when there is a use of public resources which is inconsistent with a policy of the Australian

Government.

This is not an emphatic test, and “not inconsistent” is a lower threshold than consistent with government policies.

Non-compliance is reportable by the accountable authority of a corporate Commonwealth entity when a general policy order has been issued for the entity and it does not comply with the order.

Non-corporate only

Corporate only

Non-compliance is reportable by the accountable authority of a non-corporate Commonwealth entity where an official enters into, varies or administers an arrangement, without the appropriate delegation or authorisation under section 23 (1).

Non-corporate only

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Application of government policy - Non-corporate

Commonwealth entities

Application of government policy - Corporate


Power in relation to arrangements and commitments


Section

Section 24

Title

Power to establish advisory boards

Requirement

(3) The accountable authority of a non-corporate

Commonwealth entity may, on behalf of the Commonwealth, approve a commitment of relevant money for which the accountable authority is responsible.

Reportable Instances

Although there is not a legal requirement to approve a commitment of relevant money, non-compliance is reportable against section 23(3) where an official approves a commitment which is inconsistent with a delegation, authorisation, direction or instruction

(such as Accountable Authority Instructions).

This will assist in providing a continuation of comparable data from previous reporting periods for the independent review and will provide assurance to

Ministers and the Parliament, that commitments of relevant money are being appropriately managed.

(1) The accountable authority of a non-corporate Commonwealth entity may establish an advisory board to assist the authority in governing the entity.

(2) An advisory board for a non-corporate Commonwealth entity may include individuals who are not officials of the entity.

Non-compliance is not reportable for the purposes of the compliance report. This is a discretionary power for an accountable authority to establish advisory boards.

Applicable

Non-corporate only

Officials

Section 25 Duty of care and diligence (1) An official of a Commonwealth entity must exercise his or her powers, perform his or her functions and discharge his or her duties with the degree of care and diligence that a reasonable person would exercise if the person:

(a) were an official of a Commonwealth entity in the

Commonwealth entity’s circumstances; and

(b) occupied the position held by, and had the same responsibilities within the Commonwealth entity as, the official.

(2) The rules may prescribe circumstances in which the requirements of subsection (1) are taken to be met.

Non-compliance is reportable where an official has not exercised care and diligence in relation to the use of public resources.

Examples of not exercising care and diligence could be:

 not taking reasonable steps to inform yourself about an issues significance before making a decision

 knowingly performing actions that are inconsistent with statutory obligations

 undertaking an unfamiliar task without checking legislative requirements, related guidance and the entity’s operational guidelines.

Separate disclosure


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Section Title Requirement

Section 26

Section 27

January 2015

Duty to act honestly, in good faith and for proper purpose

Duty in relation to use of position

Reportable Instances Applicable

An official of a Commonwealth entity must exercise his or her powers, perform his or her functions and discharge his or her duties honestly

,

in good faith and for a proper purpose.

An official of a Commonwealth entity must not improperly use his or her position:

(a) to gain, or seek to gain, a benefit or an advantage for himself or herself or any other person; or

(b) to cause, or seek to cause, detriment to the entity, the

Commonwealth or any other person.



Instances of non-compliance relating to credit card misuse, should be separately disclosed in the entity’s Compliance Report.

Non-compliance is reportable where an official has not acted honestly, in good faith or for a proper purpose, in relation to the use of public resources.

Examples of not acting in good faith and for a proper purpose could be:

 providing information to a person in a way that intentionally deceives or misleads them

 undertaking an activity that is outside the powers and functions of the entity

 purporting to have authority to approve something when you knowingly do not

 withholding relevant information with the intent to influence the decision of a delegate.

Separate disclosure



Instances of non-compliance relating to credit card misuse, should be separately disclosed in the entity’s Compliance Report



Instances of non-compliance relating to fraud by an official, should be separately disclosed in the entity’s Compliance Report.

Non-compliance is reportable where an official has misused their position in relation to the use of public resources.

Examples of misuse of position could be:

 an official using their official title to seek a discount that benefits them personally

 on behalf of the entity, entering into a contract for the provision of goods or services with a



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he could use the ATO’s computer system look up the home address of an old friend he is trying to get in contact with. Shaun, advises John that he is unable use the ATO’s systems to disclose the personal information of a tax payer.


Section Title

Section 28

Section 29 Duty to disclose interests


A person who obtains information because they are an official of a

Commonwealth entity must not improperly use the information:

(a) to gain, or seek to gain, a benefit or advantage for himself or

(b) herself or any other person; or to cause, or seek to cause, detriment to the Commonwealth entity, the Commonwealth or any other person.

(1) An official of a Commonwealth entity who has a material personal interest that relates to the affairs of the entity must disclose details of the interest.

(2) The rules may do the following:

(a) prescribe circumstances in which subsection (1) does not apply;

(b) prescribe how and when an interest must be disclosed;

(c) prescribe the consequences of disclosing an interest (for example, that the official must not participate at a meeting about a matter or vote on the matter). family member or friend, without disclosing the potential material personal interest

 using Commonwealth resources for personal purposes without explicit approval.

Non-compliance is reportable where an official has misused information obtained as result of their position in relation to the use of public resources.

Examples of misuse of information could be:

 leaking financial information to the media

 using protected financial data held by a government entity for personal financial gain

 providing information to a person or company that gives, or potentially gives, that person or company a competitive advantage in a procurement tender.

Non-compliance is reportable when an official does not disclose a material personal interest in relation to the use of public resources.

Where the official has not disclosed the interest consistent with section 13 to 16 of the PGPA Rule, non-compliance should be reported against the relevant section of the Rule.

A material personal interests could arise, for example, when:

 an official is on an employment selection panel that is interviewing a friend or family member for a position with the Commonwealth entity

 an official approving or recommending the approval of a grant is directly or indirectly involved with an organisation seeking the grant

 a member of an accountable authority is also a



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Duty in relation to use of information


Section

Section 30

Title

Termination—accountable authority, or member of accountable authority, contravening general duties of officials


(1) A person (the appointer ) may terminate the appointment of another person (the appointee ) to a position in a corporate

Commonwealth entity if:

(a) the appointer is responsible for appointing the appointee to the position; and

(b) the appointee is, or is a member of, the accountable authority of the entity; and

(c) the appointee contravenes Subdivision A , or rules made for the purposes of that Subdivision, in relation to the entity; and

(d) the termination is in accordance with any requirements prescribed by the rules.

Ex officio positions

(1A) A person’s appointment may be terminated under subsection (1):

(a) even if the person was not appointed as the accountable authority, or a member of the accountable authority, of the entity but is the accountable authority, or a member of the accountable authority, as a result of holding the position in the entity to which the person was appointed; and

(b) whether or not the contravention referred to in paragraph (1)(c) relates to the person’s duties as the accountable authority.

Procedure for terminating appointments

(2) The appointer terminates the appointment by giving the appointee a written notice signed by the appointer.

(3) The notice must include a statement of reasons for the termination.

(4) The appointer must cause a copy of the notice to be tabled before each House of the Parliament within 15 sitting days of that House after the day the appointer gives the notice to the director of an organisation that is seeking to provide services to the Commonwealth entity.

Note that section 12 of the PGPA Rule provides that this duty does not apply to particular interests listed.

Non-compliance is generally not reportable against this section for the purposes of the compliance report.

Section 30 provides the appointer with the power to terminate the appointment of the appointee in relation to a corporate Commonwealth entity.

There is a mandatory requirement under section 30 that the appointer must table the notice to each House of the Parliament.

The compliance report is a report from the accountable authority of the entity to the responsible

Minister. As such this is not a reportable requirement for reporting purposes, unless the accountable authority is the appointer.

Corporate

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Section Title Requirement Reportable Instances Applicable appointee.

Rules may prescribe positions whose appointments must not be terminated

(5) Without limiting paragraph (1)(d), the rules may prescribe positions in relation to which appointments must not be terminated under this section.

Relationship with other termination of appointment provisions

(6) This section applies in addition to, and does not limit, any provision in any enabling legislation for a corporate

Commonwealth entity that provides for the termination of the appointment of a person in relation to the entity.

Planning, Performance and Accountability

Section 35 Corporate plan for


Commonwealth entities

(1) The accountable authority of a Commonwealth entity must:

(a) prepare a corporate plan for the entity, at least once each reporting period for the entity; and

(b) give the corporate plan to the responsible Minister and the

Finance Minister in accordance with any requirements prescribed by the rules.

(2) The corporate plan must comply with, and be published in accordance with, any requirements prescribed by the rules.

(3) If:

(a) a statement of the Australian Government’s key priorities and objectives is published under section 34; and

(b) the purposes of the Commonwealth entity relate to those priorities and objectives; then the corporate plan must set out how the activities of the entity will contribute to achieving those priorities and objectives.

(4) However, if the Commonwealth entity has enabling legislation, then subsection (3) applies only to the extent that compliance with that subsection is not inconsistent with compliance with

Non-compliance is reportable against section 35 where the accountable authority has not prepared a corporate plan in accordance with section 35 or the

PGPA Rule.

Note that this provision of the PGPA Act does not apply for the 2014-15 reporting period as there are no additional requirements prescribed by the PGPA

Rule.


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Section

Section 36

Section 37

Title

Records about performance of Commonwealth entities

Requirement that legislation.

Subsidiaries

(5) If the Commonwealth entity has subsidiaries, the corporate plan must cover both the entity and its subsidiaries. In particular, for each subsidiary the corporate plan must include details of any matters prescribed by the rules, so far as they are applicable.

Variation of corporate plan

(6) If the accountable authority varies the plan, the authority must comply with any requirements relating to variations of corporate plans that are prescribed by the rules


(a) prepare the budget estimates covering the entity’s activities for each reporting period for the entity, and for any other periods directed by the Finance Minister; and

(b) give the budget estimates to the Finance Secretary in accordance with any directions under subsection (3).

(2) The budget estimates must:

(a) fairly present the estimated financial impacts of the entity’s activities for the reporting period or other period; and

(b) comply with any directions under subsection (3); and

(c) be accompanied by any information relating to the budget estimates for the entity that is required by any direction under subsection (3).

(3) The Finance Secretary may give written directions to the accountable authority of a Commonwealth entity for the purposes referred to in paragraph (1)(b) or subsection (2).

(4) A direction made under subsection (3) is not a legislative instrument.

(1) The accountable authority of a Commonwealth entity must cause records to be kept that properly record and explain the entity’s performance in achieving its purposes.


Non-compliance is reportable by the accountable authority where the records of the Commonwealth entity are not kept in accordance with section 37.

Applicable

Non-compliance is reportable against section 36 where the accountable authority has not prepared budget estimates in accordance with section 36 or the written directions of the Finance Secretary.



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Budget estimates for



Section Title

Section 38

Section 39

Measuring and assessing performance of


Annual performance statements for



(2) The accountable authority must ensure that the records are kept in a way that:

(a) complies with any requirements prescribed by the rules; and

(b) enables the preparation of the annual performance statements required by section 39.

(3) The responsible Minister and the Finance Minister are entitled to full and free access to the records kept under this section.

However, those Ministers’ access is subject to any

Commonwealth law that prohibits disclosure of particular information.

(1) The accountable authority of a Commonwealth entity must measure and assess the performance of the entity in achieving its purposes.

(2) The measurement and assessment must comply with any requirements prescribed by the rules.

Where the requirements of section 39 have not been met, non-compliance is reportable against that section and not section 37.

As at 1 July 2014 there are no additional requirements prescribed by the PGPA Rule.

Non-compliance is reportable against section 38 where the accountable authority has not measured and assessed the performance of the entity in achieving its purposes in accordance with section 38 or the PGPA Rule.

Where there is non-compliance with the requirements of the PGPA Rule non-compliance is reportable against the relevant section of the Rule.


Rule.


(a) prepare annual performance statements for the entity as soon as practicable after the end of each reporting period for the entity; and

(b) include a copy of the annual performance statements in the entity’s annual report that is tabled in the Parliament.

(2) The annual performance statements must:

(a) provide information about the entity’s performance in achieving its purposes; and

(b) comply with any requirements prescribed by the rules.

Non-compliance is reportable against section 39 where the accountable authority has not prepared annual performance statements in accordance with section 39 or the PGPA Rule.



Rule.



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Section Title

Section 40

Section 41

Section 42


Audit of annual performance statements for


(1) The responsible Minister for a Commonwealth entity or the

Finance Minister (the requesting Minister ) may request the

Auditor-General to examine and report on the entity’s annual performance statements.

(2) If, under a request under subsection (1), the Auditor-General examines and reports on the entity’s annual performance statements, the Auditor-General must give a copy of the report to the requesting Minister.

(3) The requesting Minister must cause a copy of the

Auditor-General’s report to be tabled in each House of the

Parliament as soon as practicable after receipt. The copy that is tabled must be accompanied by a copy of the entity’s annual performance statements.

Accounts and records for


Annual financial statements for Commonwealth entities

(1) The accountable authority of a Commonwealth entity must cause accounts and records to be kept that properly record and explain the entity’s transactions and financial position.

(2) The accountable authority must ensure that the accounts and records are kept in a way that:

(a) complies with any requirements prescribed by the rules; and

(b) enables the preparation of the annual financial statements required by sections 42 and 48; and

(c) allows those financial statements to be conveniently and properly audited in accordance with this Act.

(3) The Finance Minister and the responsible Minister are entitled to full and free access to the accounts and records kept under this section. However, those Ministers’ access is subject to any

Commonwealth law that prohibits disclosure of particular information.


(a) prepare annual financial statements for the entity as soon as practicable after the end of each reporting period for the entity; and

(b) give the statements to the Auditor-General as soon as practicable after they are prepared.

Non-compliance is reportable by the

Auditor-General

and the Department of the requesting Minister against section 40. Noncompliance is reportable if the requirements of section 40 are not met, when the

Auditor-General accepts a request to examine and report on an entity’s annual performance statements.

Note that this provision of the PGPA Act does not apply for the 2014-15 reporting period.


Non-compliance is reportable where the accounts and records of the Commonwealth entity are not kept in accordance with section 41 and as required by the

Financial Reporting Rule issued by the Finance

Minister.


Non-compliance is reportable by the accountable authority where the requirements of section 42(1) to

(4) are not met.


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Section Title

Section 43

Section 44

Audit of annual financial statements for


Audit of subsidiary’s financial statements

Requirement

(2) The annual financial statements must:

(a) comply with the accounting standards and any other requirements prescribed by the rules; and

(b) present fairly the entity’s financial position, financial performance and cash flows.

(3) In the annual financial statements, the accountable authority must state whether, in the authority’s opinion, the statements comply with subsection (2).

(4) If the Commonwealth entity is a government business enterprise, the accountable authority must state whether, in the authority’s opinion, there are reasonable grounds to believe, when the statement is made, that the entity will be able to pay its debts as and when they fall due.

Refer to the PGPA Act


(1) This section applies in relation to a corporate Commonwealth entity that has a subsidiary at the end of the subsidiary’s reporting period.

(2) The accountable authority of the Commonwealth entity must ensure that all the subsidiary’s financial statements for a reporting period of the subsidiary are audited.

(3)

The subsidiary’s financial statements must be audited by the

Auditor-General unless:

(a) the subsidiary is incorporated or formed in a place outside

Australia; and

(b) either:

(i) under the law applying to the subsidiary in that place, the Auditor-General cannot be appointed as auditor of the subsidiary; or

(ii) in the Auditor-General’s opinion, it is impracticable or unreasonable for the Auditor-General to audit, or to be required to audit, the statements.

Non-compliance is not reportable by all accountable authorities of Commonwealth entities.

Non-compliance is only reportable by the ANAO as this requirement is only applicable for the

Auditor-General.

Non-compliance is reportable by the accountable authority where the requirements of section 44 are not met.

Applicable

ANAO

Corporate only

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Section

Section 45

Section 46

Section 47

Title

Monthly financial reports


(4) For a subsidiary that is a Corporations Act company that, under the Corporations Act 2001 , is required to have those statements audited, the Auditor-General’s report on the subsidiary’s financial statements must be prepared using the relevant rules in the Corporations Act 2001 . Those rules must also be used for other subsidiaries, so far as is practicable.

(5) The accountable authority of the Commonwealth entity must give the report of the auditor to the responsible Minister

(whether or not the auditor is the Auditor-General), together with a copy of the subsidiary’s financial statements.

(1) The accountable authority of a Commonwealth entity must ensure that the entity has an audit committee.

(2) The committee must be constituted, and perform functions, in accordance with any requirements prescribed by the rules.

(1) After the end of each reporting period for a Commonwealth entity, the accountable authority of the entity must prepare and give an annual report to the entity’s responsible Minister, for presentation to the Parliament, on the entity’s activities during the period.

(2) The annual report must be given to the responsible Minister by:

(a) the 15th day of the fourth month after the end of the reporting period for the entity; or

(b) the end of any further period granted under subsection

34C(5) of the Acts Interpretation Act 1901 .

(3) The annual report must comply with any requirements prescribed by the rules.

(4) (4)Before rules are made for the purposes of subsection (3), the rules must be approved on behalf of the Parliament by the

Joint Committee of Public Accounts and Audit.


Non-compliance is reportable by an accountable authority where an audit committee is not established.


Note that non-compliance is not reportable against section 45 if the audit committee is not constituted in accordance with the requirements of section 17 of the

PGPA Rule, in this instance. Non-compliance should be reported against section 17.

Non-compliance is reportable by the accountable authority where the requirements of section 46 are not met.


Non-compliance is only reportable by the Department of Finance as this requirement is only applicable for

Finance

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Audit committee for


Annual report for




Section 48

Section 49

Annual consolidated financial statements

Audit of annual consolidated financial statements


Refer to the PGPA Act the Finance Minister.

Non-compliance is only reportable by the Department of Finance as this requirement is only applicable for the Finance Minister.

Finance

Non-compliance is only reportable by the

Auditor-General and the Department of Finance as this requirement is only applicable for the

Auditor-General and the Finance Minister.

Finance and

ANAO

Use and Management of Public Resources

Section 51 Making amounts appropriated available to

(1) If an amount is appropriated by the Parliament in relation to a

Commonwealth entity, then the Finance Minister may, on

Commonwealth entities behalf of the Commonwealth, make the appropriated amount available to the entity in such instalments, and at such times, as the Finance Minister considers appropriate.

(2) However, the Finance Minister must make an amount available if:

(a) a law requires the payment of the amount; and

(b) the Finance Minister is satisfied that there is an available appropriation.

Section 53 Banking by the

Commonwealth

(1) The Finance Minister may, on behalf of the Commonwealth, enter into an agreement with a bank relating to the conduct of the banking business of the Commonwealth, including in relation to opening and maintaining bank accounts.

(2) The agreement:

(a) must not provide for overdraft drawings by the

Commonwealth unless it provides for each drawing to be repaid within 30 days; and

(b) must be in accordance with any requirements prescribed by the rules.

(3) The Finance Minister must, on behalf of the Commonwealth, open and maintain a central bank account with the Reserve

Bank of Australia.

(4) The rules may prescribe matters relating to banking by the

Commonwealth, except in relation to the central bank account

Non-compliance is not reportable by an accountable authority as this is a power of the Finance Minister which has not been delegated.

Non-compliance is reportable by an accountable authority of a non-corporate Commonwealth entity, where an agreement for an overdraft by the

Commonwealth is made with a bank and the repayment period is longer than 30 days.

Note: The Finance Minister has delegated this power to accountable authority with directions. Where the directions are not complied with an instance of non-compliance is reportable against the Delegation

(Schedule 1, Part 1 and Part 2, as applicable).

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Non-corporate only


Section Title

Section 55

Section 56

Requirement Reportable Instances Applicable referred to in subsection (3).

Ministers

(1) A Minister who receives relevant money (other than relevant money that is to be held for the purposes of making payments in relation to the Minister’s official duties) must give the money to an official of a non-corporate Commonwealth entity as soon as is practicable.

Officials receiving bankable money

(2) An official of a Commonwealth entity who receives relevant money that can be deposited in a bank ( bankable money ) must:

(a) deposit the bankable money in a bank:

(i) within the period prescribed by the rules or, if the rules do not prescribe a period, as soon as is practicable; and

(ii) in accordance with any requirements prescribed by the rules; or

(b) otherwise deal with the bankable money in accordance with any requirements prescribed by the rules.

Officials receiving unbankable money

(3) The rules may prescribe matters relating to relevant money that:

(a) is received by an official of a Commonwealth entity; and

(b) is not bankable money.

Application of section

(4) To avoid doubt, this section applies to money that becomes relevant money on receipt by a Minister or an official of a

Commonwealth entity.

(1) An agreement for the borrowing of money by the

Commonwealth (including by obtaining an advance on

Non-compliance is not reportable against section 55 for the purposes of the compliance report.

However, non-compliance is reportable against section 19 of the PGPA Rule for each transaction where an official does not bank the relevant money by the end of the next banking day or the period approved by the accountable authority, as required by section 19 of the Rule.

Non-compliance is reportable by an accountable authority of a non-corporate Commonwealth entity


Non-corporate only

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Banking or dealing with relevant money

Borrowing by the

Commonwealth


Section Title

Section 58

Requirement

(a)

Commonwealth within 90 days; and the rules. overdraft or obtaining credit by way of credit card or credit voucher) is of no effect unless the borrowing is expressly authorised by or under an Act.

(2) The Finance Minister may, on behalf of the Commonwealth, enter into an agreement for borrowing money.

(3) The agreement must: require the amount borrowed to be repaid by the

(b) be in accordance with any requirements prescribed by


(1) The Finance Minister or the Treasurer may, on behalf of the

Commonwealth, invest in any authorised investment.

(2) For the purposes of investing under this section in securities of the Commonwealth, the Commonwealth is to be treated as if it were a separate legal entity to the entity issuing the securities.

(3) An investment under this section must not be inconsistent with the terms of any trust that applies to the money concerned.

(4) If an amount invested under this section was debited from a special account, then expenses of the investment may be debited from that special account.

(5) The proceeds of an investment of an amount debited from a special account must be credited to the special account.

(6) At any time before an investment matures, the Finance

Minister or Treasurer, as the case requires, may, on behalf of the Commonwealth, authorise in writing the reinvestment of the proceeds upon maturity in an authorised investment with the same entity.

(7) The CRF is appropriated as necessary for the purposes of this section.

(8) Any of the following are an authorised investment :

(a) in relation to both the Finance Minister and the Treasurer:

(i) securities of, or securities guaranteed by, the

Commonwealth, a State or a Territory; or

(ii) a deposit with a bank, including a deposit evidenced where an agreement for the borrowing has taken longer than 90 days for the money to be repaid.

Note: Subsection 56 (3) has been delegated to accountable authorities of non-corporate

Commonwealth entities, only for the issue of

Commonwealth credit cards (Schedule 1, Part 3).

Where an accountable authority (other than the

DFAT accountable authority – refer Delegation) enters into any other borrowing, it should be reported as an instance of non-compliance with the

Delegation.

Non-compliance is reportable by the accountable authority of a non-corporate Commonwealth entity where an investment is made which is not authorised under section 58 or section 22 of the PGPA Rule.

Non-compliance is reportable where relevant money is invested without a delegation from the Finance

Minister. In particular, a special account which has an investment capacity still requires a delegation from the Finance Minister to exercise investment power.

Note: Subsection 58 has been delegated to a limited number of accountable authorities of non-corporate

Commonwealth entities in regards to particular special accounts.

Non-corporate only

Page 16 of 45

January 2015

Investment by the

Commonwealth


Section Title

Section 59

Requirement Reportable Instances Applicable by a certificate of deposit; or

(iii) any other form of investment prescribed by the rules;

(b) in relation to the Treasurer—debt instruments with an investment grade credit rating that:

(i) are issued or guaranteed by the government of a foreign country; or

(ii) are issued or guaranteed by a financial institution whose members consist of foreign countries (which may also include Australia); or

(iii) are denominated in Australian currency.

(9) An authorisation under subsection (6) is a legislative instrument, but section 42 (disallowance) of the Legislative

Instruments Act 2003 does not apply to it.

(1) A corporate Commonwealth entity must not invest relevant money for which the entity is responsible unless:

(a) the money is not immediately required for the purposes of the entity; and

(b) the money is invested:

(i) on deposit with a bank, including a deposit evidenced by a certificate of deposit; or

(ii) in securities of, or securities guaranteed by, the

Commonwealth, a State or a Territory; or

(iii) in any other form of investment authorised by the

Finance Minister in writing; or

(iv) in any other form of investment prescribed by the rules; or

(v) for a government business enterprise—in any other form of investment that is consistent with sound commercial practice.

(2) A spending limit provision in the corporate Commonwealth entity’s enabling legislation does not apply to a contract for the investment of money under subsection (1), unless the provision expressly states that it applies to such a contract.

(3) A spending limit provision in a corporate Commonwealth

Non-compliance is reportable by the accountable authority of a corporate Commonwealth entity where relevant money is invested in an investment which is not consistent with section 59 or section 22A of the

PGPA Rule.

Corporate only

Page 17 of 45

January 2015

Investment by corporate



Section Title

Section 60

Section 63

January 2015

Indemnities, guarantees or warranties by the

Commonwealth

Waiver of amounts or modification of payment terms

Requirement Reportable Instances Applicable entity’s enabling legislation is a provision in that legislation to the effect that the entity must not enter into a contract involving the expenditure or payment of more than a specified amount of money without the approval of a specified person.

(4) An authorisation under subparagraph (1)(b)(iii) is a legislative instrument, but section 42 (disallowance) of the Legislative

Instruments Act 2003 does not apply to it.

(1) The Finance Minister may, on behalf of the Commonwealth, grant an indemnity, guarantee or warranty.

(2) The grant of the indemnity, guarantee or warranty must be in accordance with any requirements prescribed by the rules.

(1) The Finance Minister may, on behalf of the Commonwealth, authorise:

(a) the waiver of an amount owing to the Commonwealth; or

(b) the modification of the terms and conditions on which an amount owing to the Commonwealth is to be paid to the Commonwealth.

(2) An authorisation of a waiver or modification must be in accordance with any requirements prescribed by the rules.

(3) An authorisation of a waiver may be made either unconditionally or on the condition that a person agrees to pay an amount to the Commonwealth in specified circumstances.

Non-compliance is not reportable against this section for the purposes of the compliance report.

Section 60 provides the Finance Minister with the power to grant an indemnity, guarantee or warranty.

The Finance Minister has delegated this power to all accountable authorities of non-corporate

Commonwealth entities, with directions which limit the power.

Where an official exercises a power without the appropriate delegation or authorisation under section

60 or does not comply with the directions, a non-corporate Commonwealth entity must report this as an instance of non-compliance with the Delegation

(Schedule 1, Part 6).

Non-corporate only


Section 63 provides the Finance Minister with the power to waive, or otherwise modify the terms and conditions on which an amount owing to the

Commonwealth (for example postpone, allow the payment by instalment, or defer the time for payment). The Finance Minister has delegated the power to waive debts to a limited number of accountable authorities of non-corporate

Commonwealth entities. The power to allow payment by instalment or to defer the time for payment of debt has been delegated to all accountable

Non-corporate only

Page 18 of 45


Section

Section 66

Section 67

Section 68

Title

Gifts of relevant property


(4) To avoid doubt, an amount may be owing to the

Commonwealth even if it is not yet due for payment.

(5) An authorisation of a waiver or modification is not a legislative instrument . authorities of non-corporate Commonwealth entities.

Section 24 of the PGPA Rule imposes a mandatory action to be taken by the Finance Minister for a total amount of more than $500,000.

Where an official exercises a power without the appropriate delegation or authorisation under subsection 63(1) or does not comply with the directions, a non-corporate Commonwealth entity must report this as an instance of non-compliance with the Delegation (Schedule 1, Part 7 to 9 as appropriate).

Where a debt is not recovered by an accountable authority (or delegate) it should be reported under section 11 of the PGPA Rule, not section 63 or the

Delegation.

(1) A Minister or an official of a non-corporate Commonwealth entity must not make a gift of relevant property unless:

(a) the property was acquired or produced to use as a gift; or

(b) the making of the gift:

(i) is expressly authorised by law; or

(ii) is authorised by the Finance Minister in writing; or

(iii) is made in accordance with any requirements prescribed by the rules .

(2) An authorisation under subparagraph (1)(b)(ii) is not a legislative instrument.

Non-compliance is reportable by the accountable authority of a non-corporate Commonwealth entity where an official makes a gift of relevant property inconsistent with subsections 66 (1) (a) to (b).

The Finance Minister has delegated this power to the accountable authorities of non-corporate

Commonwealth entities with conditions.

Non-compliance is reportable against the Delegation

(Schedule 1, Part 10) where the directions are not followed.

(1) A Minister or an official of a non-corporate Commonwealth entity is liable to pay an amount to the Commonwealth if the

Minister or official makes a gift of relevant property in contravention of section 66.

(2) The amount the Minister or official is liable to pay under subsection (1) is the value of the relevant property.

Non-compliance is reportable by the accountable authority of a non-corporate Commonwealth entity where an official makes a gift of relevant property inconsistent with section 66 and the accountable authority does not purse the recovery of the value of the relevant property.

(1) A Minister or an official of a non-corporate Commonwealth entity is liable to pay an amount to the Commonwealth if all of the following apply:

The loss of relevant money and property (including by way of deficiency, destruction or damage) in itself is not a reportable instance of non-compliance for the

Non-corporate only

Non-corporate only

Non-corporate only

Page 19 of 45

January 2015

Liability for unauthorised gifts of relevant property


Section Title

Section 69 Liability for loss— misconduct


(a) a loss of relevant money or relevant property occurs

(including by way of deficiency, destruction or damage);

(b) at the time of the loss, the Minister or official had custody of the money or property as described in subsection (3) or (4);

(c) the Minister or official did not take reasonable steps in the circumstances to prevent the loss. purpose of the compliance report.

That said, non-compliance is reportable by accountable authorities of non-corporate

Commonwealth entities, against this section where there has been no repayment to the Commonwealth when an official had custody and reasonable steps were not taken by the official to prevent the loss.

(2) The amount the Minister or official is liable to pay under subsection (1) is:

(a) for a loss of relevant money—the amount of the loss; or

(b) for a loss of relevant property:

(i) if the property is damaged—the value of the property or the cost of repairing the property, whichever is less; or

(ii) otherwise—the value of the property.

(3) For the purposes of paragraph (1)(b), a person has custody of relevant money if the person:

(a) holds the money by way of a petty cash advance, change float or other advance; or

(b) has received the money, but has not yet dealt with it as required by section 55 (which is about banking of relevant money).

(4) For the purposes of paragraph (1)(b), a person has custody of relevant property if:

(a) the person has taken delivery of the property and has not returned it to another person entitled to receive the property on behalf of the Commonwealth; and

(b) when the person took delivery of the property the person signed a written acknowledgement that the property was delivered on the express condition that the person would at all times take strict care of the property.

(1) A Minister or an official of a non-corporate

Commonwealth entity is liable to pay an amount to the

Commonwealth if:

The loss of relevant money and property (including by way of deficiency, destruction or damage) in itself is not a reportable instance of non-compliance for the

Non-corporate only

Page 20 of 45

January 2015



(a) a loss of relevant money or relevant property occurs

(including by way of deficiency, destruction or damage); and

(b) the Minister or official caused or contributed to the loss by misconduct, or by a deliberate or serious disregard of reasonable standards of care.

(2) The amount the Minister or official is liable to pay under subsection (1) is so much of the loss as is just and equitable having regard to the Minister’s or official’s share of the responsibility for the loss. purpose of the compliance report.

That said, non-compliance is reportable by accountable authorities of non-corporate

Commonwealth entities, against this section for the loss of relevant money or property, where misconduct, or deliberate or serious disregard of a reasonable standard of care by the official caused the loss.

Section 71 Approval of proposed expenditure by a Minister

(1) A Minister must not approve a proposed expenditure of relevant money unless the Minister is satisfied, after making reasonable inquiries, that the expenditure would be a proper use of relevant money.

(2) If a Minister approves a proposed expenditure of relevant money, the Minister must:

(a) record the terms of the approval in writing as soon as practicable after giving the approval; and

(b) comply with any other requirements prescribed by the rules in relation to approvals of proposed expenditure.


There is a mandatory requirement under section 71, however, it is the Minister who must be satisfied, that the expenditure would be a proper use of relevant money.

This power cannot be delegated by a Minister.

Non-corporate only

Where an official is approving the commitment of relevant money see Section 18 of the PGPA Rule.

(3) For a Parliamentary Department, the references in subsection (1) or (2) to a Minister are references to:

(a) a Presiding Officer, for expenditure for which he or she alone is responsible; and

(b) the Presiding Officers jointly, for expenditure for which they are jointly responsible.

Appropriations relating to non-corporate Commonwealth entities and the Commonwealth

Section 77 Repayments by the

Commonwealth

If:

(a) an amount is received by the Commonwealth; and

(b) some or all of the amount is required or permitted to be repaid; and

(c) the Finance Minister is satisfied that, apart from this section, there is no appropriation for the repayment; then the CRF is appropriated for the repayment.

Non-compliance is not reportable against this section for the purposes of the compliance report. Section 77 provides the Finance Minister with the power to be satisfied that, apart from section 77, there is no existing appropriation for the repayment. This power has been delegated to accountable authorities of non-corporate Commonwealth entities.

Where an official exercises a power without the appropriate delegation or authorisation under section

Page 21 of 45

January 2015

Non-corporate only



77 or does not comply with the directions, a non-corporate Commonwealth entity must report this as an instance of non-compliance with the Delegation

(Schedule 1, Part 11).

Companies, subsidiaries and new corporate Commonwealth entities

Section 86 Subsidiaries of corporate


The accountable authority of a corporate Commonwealth entity must ensure, as far as practicable, that none of the entity’s subsidiaries does anything that the entity does not itself have power to do.

Commonwealth companies

Section 91 Duty to keep the responsible Minister and

Finance Minister informed

(1) The directors of a wholly-owned Commonwealth company must do the following:

(a) keep the responsible Minister informed of the activities of the company and any subsidiaries of the company;

(b) give the responsible Minister or the Finance Minister any reports, documents and information in relation to those activities as that Minister requires;

(c) notify the responsible Minister as soon as practicable after the directors make a significant decision in relation to the company or any of its subsidiaries;

(d) give the responsible Minister reasonable notice if the directors become aware of any significant issue that may affect the company or any of its subsidiaries;

(e) notify the responsible Minister as soon as practicable after the directors become aware of any significant issue that has affected the company or any of its subsidiaries.

(2) Without limiting subsection (1), the rules may prescribe:

(a) matters to be taken into account in deciding whether a decision or issue is significant; and

(b) matters relating to discharging duties under subsection (1).

(3) The directors must comply with a requirement under paragraph (1)(b) within the time limits set by the Minister concerned.

(4) This section does not limit any other power that a Minister has

Non-compliance is reportable by the accountable authority of a corporate Commonwealth entity, where it does not ensure that any of its subsidiaries does anything that the entity itself cannot do.

Corporate only

Non-compliance is reportable where directors of a wholly-owned Commonwealth company do not provide the information to the responsible Minister or the Finance Minister as required under section 91 and within the time limits set by the Minister concerned.

Company only

Page 22 of 45

January 2015


Section

Section 92

Section 93

Section 95

Title

Audit committee

Requirement to require information from a Commonwealth company.

(1) The directors of a wholly-owned Commonwealth company must ensure that the company has an audit committee.

(2) The committee must be constituted, and perform functions, in accordance with any requirements prescribed by the rules.


Non-compliance is reportable by directors of a wholly-owned Commonwealth company where an audit committee is not established.

Note non-compliance is not reportable against section

92 if the audit committee is not constituted in accordance the requirements of Rule 28.

Non-compliance should be reported against Rule 28.

Non-compliance is reportable by the directors of a wholly-owned Commonwealth company when a general policy order has been issued for the company and it does not comply with the order.

Company only

Company only Application of government policy

Corporate plan for

Commonwealth companies

(1) The Finance Minister may make an order (a government policy order ) that specifies a policy of the Australian

Government that is to apply to one or more wholly-owned

Commonwealth companies.

(2) Before making a government policy order that applies in relation to a wholly-owned Commonwealth company, the

Finance Minister must be satisfied that the Minister responsible for the policy has consulted the company on the application of the policy.

(3) If a government policy order applies in relation to a wholly-owned Commonwealth company, the directors of the company must ensure that the order is complied with:

(a) in relation to the company; and

(b) in relation to any subsidiary of the company, so far as practicable.

(4) A government policy order is a legislative instrument, but section 42 (disallowance) of the Legislative Instruments Act


Commonwealth companies

(1) The directors of a Commonwealth company must:

(a) prepare a corporate plan for the company at least once each reporting period for the company; and

(b) give the corporate plan to the responsible Minister and the Finance Minister in accordance with any requirements prescribed by the rules.

(2) The corporate plan must comply with, and be published in

Non-compliance is reportable against section 95 where the directors of a Commonwealth company have not prepared a corporate plan in accordance with section 95 or the PGPA Rule.


Note that this provision of the PGPA Act does not

Company only

Page 23 of 45

January 2015


Section

Section 96

Title

Budget estimates for wholly-owned


Requirement Reportable Instances Applicable accordance with, any requirements prescribed by the rules.

(3) If:

(a) a statement of the Australian Government’s key priorities and objectives is published under section 34; and

(b) the purposes of the Commonwealth company relate to those priorities and objectives; then the corporate plan must set out how the activities of the company will contribute to achieving those priorities and objectives.

Subsidiaries

(4) If the Commonwealth company has subsidiaries, the corporate plan must cover both the company and its subsidiaries. In particular, for each subsidiary the corporate plan must include details of any matters prescribed by the rules, so far as they are applicable.

Variation of corporate plan

(5) If the directors vary the plan, the directors must comply with any requirements relating to variations of corporate plans that are prescribed by the rules.

(1) The directors of a wholly-owned Commonwealth company must:

(a) prepare budget estimates covering the company’s activities for each reporting period for the company, and for any other periods directed by the Finance Minister; and

(b) give the budget estimates to the Finance Secretary in accordance with any directions under subsection (3).

(2) The budget estimates must:

(a) fairly present the estimated financial impacts of the company’s activities for the reporting period or other period; and

(b) comply with any directions under subsection (3); and

(c) be accompanied by any information relating to the apply for the 2014-15 reporting period as there are no additional requirements prescribed by the PGPA

Rule.

Non-compliance is reportable against section 96 where the directors of a wholly-owned

Commonwealth company have not prepared budget estimates in accordance with section 96 or the written directions of the Finance Secretary.

Company only

Page 24 of 45

January 2015


Section

Section 97

Title

Annual reports for


Requirement Reportable Instances budget estimates for the company that is required by any direction under subsection (3).

(3) The Finance Secretary may give written directions to the directors of a Commonwealth company for the purposes referred to in paragraph (1)(b) or subsection (2).

(4) A direction made under subsection (3) is not a legislative instrument.

(1) The directors of a Commonwealth company must give the responsible Minister:

(a) a copy of the company’s financial report, directors’ report and auditor’s report that the company is required by the Corporations Act 2001 to have for the reporting period for the company (or would be required by that

Act to have if the company were a public company); and

(b) for a wholly-owned Commonwealth company—any additional information or report prescribed by the rules.

(2) The Commonwealth company must give the reports and information by:

(a) if the company is required by the Corporations Act 2001 to hold an annual general meeting—the earlier of the following:

(i) 21 days before the next annual general meeting after the end of the reporting period for the company;

(ii) 4 months after the end of the reporting period for the company; and

(b) in any other case—4 months after the end of the reporting period for the company; or the end of such further period granted under subsection

34C(5) of the Acts Interpretation Act 1901 .

(3)

If the auditor’s report required by the

Corporations Act 2001 was prepared by an auditor other than the Auditor-General, subsection (1) also requires the company to give a report by the Auditor-General on the financial statements.

Non-compliance is reportable by the directors of a

Commonwealth company where the requirements of section 97 are not met.

Applicable

Company only

Page 25 of 45

January 2015


Section Title

Section 99


(4) In preparing a report for the purposes of subsection (3), the

Auditor-General must use the same Corporations Act 2001 rules as applied to the report by the other auditor.

(5) If the Commonwealth company is a wholly-owned

Commonwealth company, or is not required to hold an annual general meeting, the responsible Minister must table the documents in each House of the Parliament as soon as practicable after receiving them. In all other cases, the responsible Minister must table the documents in each House of the Parliament as soon as practicable after the annual general meeting of the company.

(1) This section applies in relation to a Commonwealth company that has a subsidiary at the end of the reporting period for the subsidiary.

(2) The directors of the Commonwealth company must ensure that all the subsidiary’s financial statements for a reporting period of the subsidiary are audited.

(3)

The subsidiary’s financial statements must be audited by the

Auditor-General unless:

(a) the subsidiary is incorporated or formed in a place outside Australia; and

(b) either:

(i) under the law applying to the subsidiary in that place, the Auditor-General cannot be appointed as auditor of the subsidiary; or

(ii) in the Auditor-General’s opinion, it is impracticable or unreasonable for the Auditor-General to audit, or to be required to audit, the statements.

(4) For a subsidiary that is a Corporations Act company that, under the Corporations Act 2001 , is required to have those statements audited, the Auditor-General’s report on the subsidiary’s financial statements must be prepared using the relevant rules in the Corporations Act 2001 . Those rules must also be used for other subsidiaries, so far as is practicable.

(5) The directors of the Commonwealth company must give the report of the auditor to the responsible Minister (whether or

Non-compliance is reportable by the directors of a

Commonwealth company where the requirements of section 99 are not met.

Company only

Page 26 of 45

January 2015

Audit of subsidiary’s financial statements


Section Title Requirement Reportable Instances Applicable not the auditor is the Auditor-General), together with a copy of the subsidiary’s financial statements.

Rules, delegations and independent review

Section 105B Instruments relating to procurement

(Commonwealth

Procurement Rules)

(1) The Finance Minister may, by written instrument, make provision about procurement by:

(a) the Commonwealth; or

(a) corporate Commonwealth entities prescribed by the rules; or

(b) wholly-owned Commonwealth companies prescribed by the rules.

(2) An instrument under subsection (1) is a legislative instrument, but section 42 (disallowance) of the Legislative Instruments Act


Section 105C Instruments relating to grants

(Commonwealth Grant

Rules and Guidelines)

Section 107 Delegations - Finance

Minister

(1) The Finance Minister may, by written instrument, make provision about grants by the Commonwealth.

(2) An instrument under subsection (1) is a legislative instrument, but section 42 (disallowance) of the Legislative Instruments Act


When Finance Minister may delegate

(1) The Finance Minister may, by written instrument, delegate to the Finance Secretary, or an accountable authority or an official of a non-corporate Commonwealth entity, any of the

Finance Minister’s powers, functions or duties under this Act or the rules.

(2) However, the Finance Minister may not delegate (except as provided in subsection (3)) any of the Finance Minister’s

Non-compliance is reportable against the CPRs where an official of a relevant entity does not comply with the mandatory requirements.

The mandatory requirements are indicated by the term “ must ” in the CPRs.

The CPRs are a legislative instrument. The CPR applies from 1 July 2014.

Non-compliance with supplementary guidance on procurement requirements is not reportable for the purposes of the compliance report.

Section 30 of the PGPA Rule prescribes which

Corporate entities are required to comply with the

CPRs

Non-compliance is reportable against the CGRGs where an official of a non-corporate Commonwealth entity does not comply with the mandatory requirements.

The mandatory requirements are indicated by the term “ must

” or “mandatory”

in the CGRGs.

The CGRGs are a legislative instrument.

The CGRGs applies from 1 July 2014.


This section provides a discretionary power for the

Finance Minister to delegate powers.

Where an official does not follow the directions in the

Delegation from the Finance Minister this is reportable against the relevant part of the Delegation.

All non-corporate and some corporate entities are required to comply with the

CPRs.

Non-corporate only

Finance only

Page 27 of 45

January 2015


Section Title

Section 109 Delegations - Finance

Secretary

Requirement Reportable Instances powers, functions or duties under:

(a) paragraph 57(b) (which is about authorising borrowing by corporate Commonwealth entities); or

(b) subsection 71(1) or (2) (which is about approving expenditure); or

(c) subsection 72(1) (which is about notifying Parliament about certain events); or

(d) section 75 (which is about transfers of functions between non-corporate Commonwealth entities); or

(e) section 78 (which is about special accounts); or

(f) section 85 (which is about the Commonwealth forming companies etc.); or

(g) section 87 (which is about establishing new corporate

Commonwealth entities); or

(h) section 101 (which is about the rules) ; or

(i) Part 4-1A (which is about some other instruments made under this Act).

(3) The Finance Minister may, by written instrument, delegate to the Finance Secretary any of the Finance Minister’s powers, functions or duties under:

(a) section 75 (which is about transfers of functions between non-corporate Commonwealth entities); or

(b) section 85 (which is about the Commonwealth forming companies etc.); or

(c) section 87 (which is about establishing new corporate

Commonwealth entities).

Directions by the Finance Minister about delegation

(4) In exercising powers, performing functions or discharging duties under a delegation, the delegate must comply with any written direction given by the Finance Minister to the delegate.

When the Finance Secretary may delegate

(1) The Finance Secretary may, by written instrument, delegate to an official of the Department any powers, functions or duties under this Act or the rules:

Non-compliance is only reportable against this section by the Department of Finance.

This section provides a discretionary power to the

Finance Secretary. Non-compliance is only

Applicable

Finance only

Page 28 of 45

January 2015


Section Title Requirement Reportable Instances

(a) including:

(i) this power to delegate in relation to powers, functions and duties conferred directly by this Act or the rules on the Finance Secretary; and

(ii) powers, functions or duties that have been delegated by the Finance Minister to the Finance Secretary under subsection 107(1) or paragraph 107(3)(a); but

(b) not including powers, functions or duties that have been delegated by the Finance Minister to the Finance

Secretary under paragraph 107(3)(b) or (c).

Directions by the Finance Secretary about delegation

(2) If:

(a) the Finance Secretary delegates a power, function or duty to a person (the delegate ); and

(b) the power, function or duty is not one that has been delegated by the Finance Minister to the Finance

Secretary under subsection 107(1) or (3); then the Finance Secretary may give written directions to the delegate in relation to the exercise of that power, the performance of that function or the discharge of that duty.

(3) The delegate must comply with any directions given under subsection (2).

Subdelegation of Finance Minister’s delegation

(4) If the Finance Secretary delegates to a person (the second delegate ) a power, function or duty that has been delegated by the Finance Minister to the Finance Secretary under subsection 107(1) or paragraph 107(3)(a), then that power, function or duty, when exercised, performed or discharged by the second delegate, is taken for the purposes of this Act to have been exercised, performed or discharged by the Finance

Minister.

(5) If the Finance Secretary is subject to directions in relation to the exercise of a power, the performance of a function or the discharge of a duty, delegated by the Finance Minister to the reportable where the Finance Secretary is subject to directions under section 107 and the Finance

Secretary does not give corresponding directions to the second delegate.

Applicable

Page 29 of 45

January 2015


Section Title

Section 110

Requirement Reportable Instances

Finance Secretary under subsection 107(1) or paragraph

107(3)(a), then:

(a) the Finance Secretary must give corresponding written directions to the second delegate; and

(b) the Finance Secretary may give other written directions

(not inconsistent with those corresponding directions) to the second delegate in relation to the exercise of that power, the performance of that function or the discharge of that duty.

(6) The second delegate must comply with any directions of the

Finance Secretary.

When accountable authority may delegate

(1) The accountable authority of a non-corporate Commonwealth entity may, by written instrument, delegate to an official of a non-corporate Commonwealth entity any powers, functions or duties under this Act or the rules, including:

(a) this power to delegate in relation to powers, functions and duties conferred directly by this Act or the rules on the accountable authority; and

(b) powers, functions or duties that have been delegated by the Finance Minister to the accountable authority under subsection 107(1).

(2) However, the accountable authority of a non-corporate

Commonwealth entity may not delegate any of the accountable authority’s powers, functions or duties under:

(a) Subdivision A of Division 2 of Part 2-2 (which is about the general duties of accountable authorities); or

(aa) section 20A (which is about accountable authority instructions); or

(b) section 21 (which is about the application of government policy to non-corporate Commonwealth entities); or

(c) section 35 (which is about corporate plans for

Commonwealth entities); or

(d) section 37, 38 or 39 (which has requirements relating to performance of Commonwealth entities); or

Non-compliance is reportable against this section for the purposes of the compliance report.

This section provides a discretionary power to accountable authorities. Non-compliance is only reportable where the accountable authority of a noncorporate Commonwealth entity is subject to directions under section 107 and the accountable authority does not give corresponding directions to the second delegate.

Applicable

Non-corporate only

Page 30 of 45

January 2015

Delegations - Accountable authority



(e) section 41, 42 or 43 (which has requirements relating to accounts and financial statements of Commonwealth entities).

Directions given by the accountable authority about delegation

(3) If:

(a) the accountable authority of a non-corporate

Commonwealth entity delegates a power, function or duty to a person (the delegate ); and

(b) the power, function or duty is not one that has been delegated by the Finance Minister to the accountable authority under subsection 107(1); then the accountable authority may give written directions to the delegate in relation to the exercise of that power, the performance of that function or the discharge of that duty.

(4) The delegate must comply with any directions given under subsection (3).

Subdelegation of Finance Minister’s delegation

(5) If the accountable authority of a non-corporate

Commonwealth entity delegates to a person (the second delegate ) a power, function or duty that has been delegated by the Finance Minister to the accountable authority under subsection 107(1), then that power, function or duty, when exercised, performed or discharged by the second delegate, is taken for the purposes of this Act and the rules to have been exercised, performed or discharged by the Finance Minister.

(6) If the accountable authority of a non-corporate

Commonwealth entity is subject to directions in relation to the exercise of a power, the performance of a function or the discharge of a duty, delegated by the Finance Minister to the accountable authority under subsection 107(1), then:

(a) the accountable authority must give corresponding written directions to the second delegate; and

(b) the accountable authority may give other written directions (not inconsistent with those corresponding directions) to the second delegate in relation to the


January 2015

Applicable

Page 31 of 45


Section Title Requirement exercise of that power, the performance of that function or the discharge of that duty.

(7) The second delegate must comply with any directions of the accountable authority.


PGPA Rules

Rule 10 Preventing, detecting and dealing with fraud

Rule 11 Recovery of debts

Applicable

The accountable authority of a Commonwealth entity must take all reasonable measures to prevent, detect and deal with fraud relating to the entity, including by:

(a) conducting fraud risk assessments regularly and when there is a substantial change in the structure, functions or activities of the entity; and

(b) developing and implementing a fraud control plan that deals with identified risks as soon as practicable after conducting a risk assessment; and

(c) having an appropriate mechanism for preventing fraud, including by ensuring that:

(i) officials of the entity are made aware of what constitutes fraud; and

(ii) the risk of fraud is taken into account in planning and conducting the activities of the entity; and

(d) having an appropriate mechanism for detecting incidents of fraud or suspected fraud, including a process for officials of the entity and other persons to report suspected fraud confidentially; and

(e) having an appropriate mechanism for investigating or otherwise dealing with incidents of fraud or suspected fraud; and

(f) having an appropriate mechanism for recording and reporting incidents of fraud or suspected fraud.

The accountable authority of a non-corporate Commonwealth entity must pursue recovery of each debt for which the accountable authority is responsible unless:

(a) the accountable authority considers that it is not economical to pursue recovery of the debt; or

(b) the accountable authority is satisfied that the debt is not

Non-compliance is reportable where an accountable authority does not take all reasonable measures to prevent, detect and deal with fraud relating to the entity in accordance with paragraphs (a) to (f).

Non-compliance is reportable where an accountable authority of a non-corporate Commonwealth entity does not pursue recovery of each debt for which the accountable authority is responsible unless paragraphs (a) to (c) are applicable.

Where a debt was not pursued during the reporting


Non-corporate only

Page 32 of 45

January 2015


Section

Rule 13

Rule 14

Title

Officials who are members of the accountable authority—how and when to disclose interests

Requirement legally recoverable; or

(c) the debt has been written off as authorised by an Act.

(1) An official of a Commonwealth entity who:

(a) is the accountable authority of the entity; and

(b) has a material personal interest that relates to the affairs of the entity; must disclose that interest, in writing, to the entity’s responsible Minister.

(2) The disclosure must include details of:

(a) the nature and extent of the interest; and

(b) how the interest relates to the affairs of the entity.

(3) The official must make the disclosure:

(a) as soon as practicable after the official becomes aware of the interest; and

(b) if there is a change in the nature or extent of the interest after the official has disclosed the interest under this section—as soon as practicable after the official becomes aware of that change.

(1) An official of a Commonwealth entity who:

(a) is a member of the accountable authority of the entity; and

(b) has a material personal interest that relates to the affairs of the entity; must disclose that interest, orally or in writing, to each other member of the accountable authority.




(3) The official must make the disclosure at a meeting of the members of the accountable authority:

(a) as soon as practicable after the official becomes aware

Reportable Instances Applicable period, it should be reported as non-compliance against section 11 of the PGPA Rule.

Non-compliance is reportable against section 13 of the PGPA Rule where an accountable authority does not disclose a material personal interest, in writing, to the entity’s responsible Minister in accordance with subparagraph 2 and 3.


Non-compliance is reportable against section 14 of the PGPA Rule where an accountable authority does not disclose a material personal interest, in accordance with section 14.


Page 33 of 45

January 2015

Officials who are the accountable authority


Section Title

Rule 15

Requirement

Officials who are members of the accountable authority—consequences of having interests of the interest; and

(b) if there is a change in the nature or extent of the interest after the official has disclosed the interest under this section—as soon as practicable after the official becomes aware of that change.

(4) The official must ensure that the disclosure is recorded in the minutes of the meeting.

(1) This section applies to an official of a Commonwealth entity who:

(a) is a member of the accountable authority of the entity; and

(b) has a material personal interest that relates to the affairs of the entity.

Consequences of having interest

(2) If a matter in which the official has the interest is being considered at a meeting of the members of the accountable authority, the official must not:

(a) be present while the matter is being considered at the meeting; or

(b) vote on the matter.

(3) However, if:

(a) the responsible Minister for the entity has declared, in writing, that the official may be present or vote (or both); or

(b) the members of the accountable authority who do not have a material personal interest in the matter have decided that the official is not disqualified from being present or voting (or both), and the decision is recorded in the minutes of a meeting of the members; then the official may be present or vote (or both) in accordance with the declaration or decision.

Minister’s declaration

(4) The responsible Minister for the entity may declare in writing


Non-compliance is reportable against section 15 of the PGPA Rule where an accountable authority who has a material personal interest, attends a meeting of members as described in subparagraph 2, unless the responsible Minister has made a declaration under subparagraph 3.

Applicable

Page 34 of 45

January 2015



Section Title

Rule 16

Rule 16A

Requirement Reportable Instances Applicable that the official may:

(a) be present while the matter is being considered at the meeting; or

(b) vote on the matter; or

(c) be present while the matter is being considered at the meeting and vote on the matter.

(5) The responsible Minister may only make the declaration if:

(a) the number of members of the accountable authority entitled to be present and vote on the matter would be less than the quorum for a meeting of the accountable authority if the official were not allowed to be present or vote on the matter at the meeting; or

(b) the matter needs to be dealt with urgently; or

(c) there is a compelling reason for the matter being dealt with at the meeting.

Officials who are not the accountable authority or a member of the accountable authority

An official of a Commonwealth entity who:

(a) is not the accountable authority, or a member of the accountable authority, of the entity; and

(b) has a material personal interest that relates to the affairs of the entity; must disclose that interest in accordance with any instructions given by the accountable authority of the entity.

Certain officials appointed under a law to a body—how and when to disclose interests

(1) This section applies to an official of a Commonwealth entity if:

(a) the official is appointed under a law as a member (an appointed member) of a body that is:

(i) a committee, council or other body; or

(ii) the entity itself; and

(b) all appointed members of the body are officials of the entity; and

(c) the official has a material personal interest that relates to the affairs of the entity.

Requirement to disclose interest

(2) The official must disclose that interest, orally or in writing, to

Non-compliance is not reportable against section 16 of the PGPA Rule for the purposes of the compliance report.

Non-compliance is reportable against section 16A of the PGPA Rule where an official appointed under a law to a body who has a material personal interest, does not disclose the interest consistent with subsections 2 to 5.



Page 35 of 45

January 2015


Section Title

Rule 16B

Requirement Reportable Instances each other appointed member of the body.




(4) The official must make the disclosure at a meeting of the appointed members of the body:

(a) as soon as practicable after the official becomes aware of the interest; and

(c) if there is a change in the nature or extent of the interest after the official has disclosed the interest under this section—as soon as practicable after the official becomes aware of that change.

(5) The official must ensure that the disclosure is recorded in the minutes of the meeting.

(1) This section applies to an official of a Commonwealth entity if:

(a) the official is appointed under a law as a member (an appointed member) of a body that is:

(i) a committee, council or other body; or

(ii) the entity itself; and

(b) all appointed members of the body are officials of the entity; and

(c) the official has a material personal interest that relates to the affairs of the entity; and

(d) a matter in which the official has the interest is being considered at a meeting of the appointed members of the body.

(2) Unless the appointed members otherwise determine, the official must not:

(a) be present during any consideration by those members on the matter; or

(b) vote on the matter.

(3) For the purposes of making a determination under subsection

(2), the official must not:

(a) be present during any consideration by the appointed members for the purpose of making the determination; or

(b) take part in making the determination.

(4) The official must ensure that a determination under subsection

Non-compliance is reportable against section 16B of the PGPA Rule where an official appointed under a law to a body who has a material personal interest, does not act consistent with subsections 2 to 4.

Applicable


Page 36 of 45

January 2015

Certain officials appointed under a law to a body— consequences of having interest


Section Title

Rule 17

Rule 17A


Audit committee for


Commonwealth entities ceasing to exist or functions transferred

(2) is recorded in the minutes of the meeting.

Functions of the audit committee

(1) The accountable authority of a Commonwealth entity must, by written charter, determine the functions of the audit committee for the entity (2) The functions must include reviewing the appropriateness of the accountable authority’s:

(a) financial reporting; and

(b) performance reporting; and

(c) system of risk oversight and management; and

(d) system of internal control; for the entity.

Membership of the audit committee

(3) The audit committee must consist of at least 3 persons who have appropriate qualifications, knowledge, skills or experience to assist the committee to perform its functions.

(4) On and after 1 July 2015, the majority of the members of the audit committee must:

(a) for a non-corporate Commonwealth entity—be persons who are not officials of the entity; or

(b) for a corporate Commonwealth entity—be persons who are not employees of the entity.

(5) Despite subsections (3) and (4), the following persons must not be a member of the audit committee:

(a) the accountable authority or, if the accountable authority has more than one member, the head (however described) of the accountable authority;

(b) the Chief Financial Officer (however described) of the entity;

(c) the Chief Executive Officer (however described) of the entity.

Non-compliance is reportable against section 17 of the PGPA Rule where the accountable authority has not established the functions and membership of the audit committee, consistent with the criteria at section

17(1) to (5).


(1) If a Commonwealth entity (the old entity) ceases to exist, then the accountable authority of another Commonwealth entity nominated by the Finance Minister must prepare:

Non-compliance is reportable against section 17A of the PGPA Rule where the statements listed in section

17A (either by transfer or if an entity ceases to exist) are not prepared by the accountable authority


Page 37 of 45

January 2015


Section

Rule 18

Title

Approving commitments of relevant money


(a) the annual performance statements for the old entity; and

(b) the annual financial statements for the old entity; and

(c) the annual report for the old entity; that the accountable authority of the old entity would have been required to prepare under the Act if the old entity had not ceased to exist.

(2)

Subsection (1) applies only to the extent that the old entity’s functions are not transferred to one or more other

Commonwealth entities.

Transfer of Commonwealth entity’s functions

(3) If a function of a Commonwealth entity (the old entity) is transferred to one or more other Commonwealth entities, either because the old entity ceases to exist or for any other reason, then the accountable authority of a Commonwealth entity nominated by the Finance Minister in relation to that function must prepare:

(a) the annual performance statements for the old entity that relate to that function; and

(b) the annual financial statements for the old entity that relate to that function; and

(c) the annual report for the old entity that relate to that function;

(d) that the accountable authority of the old entity would have been required to prepare under the Act if the function had not been transferred. nominated by the Finance Minister.

(1) If:

(a) the accountable authority of a Commonwealth entity is approving the commitment of relevant money for which the accountable authority is responsible; or

(b) an official of a Commonwealth entity is approving the commitment of relevant money for which the accountable authority of a Commonwealth entity is responsible; then the accountable authority or official must record the approval in writing as soon as practicable after giving it.

(2) To avoid doubt, the official must approve the commitment,

Non-compliance is reportable where there has either been no written record of an approval, or approval in an FMIS, by an official approving a commitment of relevant money.


Non-compliance may also be reportable where the written record has not occurred “as soon as practicable”.

Non-compliance is reportable against section 23 of the PGPA Act, not section 18 of the PGPA Rule when an official has not approved the commitment consistently with any written requirements, including

Page 38 of 45

January 2015


Section Title

Rule 19

Rule 20

Rule 21


Banking of bankable money received by officials

Otherwise dealing with bankable money received by officials

Dealing with unbankable money received by officials and record the approval, consistently with any written requirements (including any requirements relating to the proper use of that money and spending limits) specified by the accountable authority referred to in paragraph (1)(b) in:

(a) if the official is acting under a delegation or authorisation of the accountable authority:

(i) the instrument that delegates to the official, or otherwise authorises the official to exercise, the accountable authority’s power to approve the commitment of relevant money; or

(ii) a direction to the official in relation to the exercise of that power; or

(b) instructions given by the accountable authority.

(1) An official of a Commonwealth entity who receives bankable money must deposit the money in a bank:

(a) before the end of the next banking day; or

(b) if the instructions of the accountable authority of a

Commonwealth entity that is responsible for the money prescribe a period in which the money must be so deposited—before the end of that period.

(2) A banking day is a day other than a Saturday, a Sunday or a day that is a public holiday in the place where the money was received.

If an official of a Commonwealth entity receives bankable money that is to be held for the purposes of making payments in relation to a Commonwealth entity , then the official must deal with the money in accordance with any requirements prescribed by the instructions of the accountable authority of a Commonwealth entity that is responsible for the money , despite section 19 (which would otherwise require the money to be deposited in a bank).

An official of a Commonwealth entity who receives relevant money that is not bankable money must deal with the money in accordance with any requirements prescribed by the instructions of the accountable authority of a Commonwealth entity that is responsible for the money. spending limits, specified by the accountable authority. This may also lead to administrative action within the entity.

Non-compliance is reportable against section 19 of the PGPA Rule for each transaction where an official does not bank the relevant money by the end of the next banking day or the period prescribed

by the accountable authority, as required by section 19 of the PGPA Rule.

Non-compliance is not reportable for the purpose of the compliance report.

If an official does not undertake activities in accordance with any requirements prescribed by the instructions of the accountable authority this may lead to administrative action.

Non-compliance is not reportable for the purpose of the compliance report.

If an official does not undertake activities in accordance with any requirements prescribed by the instructions of the accountable authority this may




Page 39 of 45

January 2015


Section

Rule 21A

Rule 23

Rule 24

Title

Authorisations of waivers, modifications of payment terms, set-offs and act of grace payments


A borrowing of money by a corporate Commonwealth entity is authorised if:

(a) the borrowing is the obtaining of credit by way of credit card, credit voucher or similar credit facility; and

(b) the agreement for the borrowing requires the amount borrowed to be repaid by the entity within 90 days.

(1) A corporate Commonwealth entity must not insure an official of the entity against a liability (other than one for legal costs) arising out of:

(a) conduct involving a wilful breach of duty, arising at common law, in equity or under the finance law (other than section 27 or 28 of the Act), in relation to the entity; or

(b) a contravention of section 27 or 28 of the Act (which deal with the duties of officials in relation to use of position and use of information).

(2) Anything that purports to insure a person against, or exempt a person from, a liability is void to the extent that it contravenes this section.

(1) This section applies if:

(a) the Finance Minister proposes to authorise any of the following:

(i) the waiver of an amount (the relevant amount ) owing to the Commonwealth under subsection 63(1) of the Act;

(iii) the set-off of an amount (the relevant amount ) owing to the Commonwealth against another amount under subsection 64(1) of the Act;

(iv) the payment of an amount (the relevant amount ) to a person under subsection 65(1) of the Act; and

(b) the relevant amount is more than $500,000.

(2) Before making the authorisation, the Finance Minister must consider a report of the advisory committee established under lead to administrative action.

Non-compliance is reportable by an accountable authority of a corporate Commonwealth entity where an agreement for the borrowing has taken longer than

90 days for the money to be repaid.

Corporate only

Non-compliance is reportable against section 23 of the PGPA Rule where the accountable authority of a corporate Commonwealth entity has insured an official of the entity inconsistent with the criteria at section 23.

Non-compliance is not reportable against this section by all Commonwealth entities for the purposes of the compliance report.

Non-compliance can only be reported by Finance, where the requirements of section 24 of the PGPA

Rule are not met.

Non-compliance is reportable against the Delegation

(Schedule 1, Part 7 to 9 as appropriate) where a delegate has not exercised the power in accordance with the directions in the Delegation.

Corporate only

Non-corporate only

Page 40 of 45

January 2015

Borrowing by corporate


Insurance obtained by corporate Commonwealth entities


Section Title

Rule 25


Payment of amount owed to person at time of death subsection (3) in relation to the authorisation.

(3) The Finance Minister must establish an advisory committee to report on the appropriateness of the authorisation. The advisory committee must consist of:

(a) the Chief Executive Officer of the Australian Customs and Border Protection Service; and

(b) the Finance Secretary; and

(c) the accountable authority of:

(i) the Commonwealth entity responsible for the matter to which the authorisation relates; or

(ii) if there is no Commonwealth entity responsible for that matter, or if the Commonwealth entity responsible for that matter is the Department or the

Australian Customs and Border Protection

Service—the Commonwealth entity nominated, in writing, by the Finance Minister.

(4) A member of the advisory committee may appoint a deputy to act in his or her place if the member is, for any reason, unable to perform the duties of the member.

(5) The advisory committee may conduct itself as it sees fit and may prepare its report without having a meeting.

(1)

If, at the time of a person’s death (whether before or after this section commences), the Commonwealth owed an amount to the person, the Finance Minister may authorise payment of that amount to a person who the Finance Minister considers should receive the payment.

(2) The Finance Minister may authorise the payment without requiring:

(a) production of probate of the will of the deceased person; or

(b) letters of administration of the estate of the deceased person.

(3) In deciding who should receive the payment, the Finance

Minister must consider the people who are entitled to the property of the deceased person under:

Non-compliance is reportable by the accountable authority of a non-corporate Commonwealth entity, if a delegate is deciding who should receive the payment, and a person’s entitlement to the property of the deceased person is not taken into account, in accordance with section 25 of the PGPA Rule.

Section 25 provides the Finance Minister with the power to authorise a payment pending probate.

The Finance Minister has delegated this power to all accountable authorities of non-corporate

Commonwealth entities with no additional directions.

Non-corporate only

Page 41 of 45

January 2015


Section Title

Rule 26

Rule 28

Rule 29


Minister to inform

Parliament of certain events

Audit committee for wholly-owned


Other CRF money

(a) the deceased person’s will; and

(b) the law relating to the disposition of the property of deceased persons.

(4) After the payment is made, the Commonwealth has no further liability in relation to the amount that was owed.

(5) This section does not relieve the recipient from a liability to deal with the money in accordance with law.

A notice of an event must contain the particulars set out in the following table.

See section 26 of the PGPA Rule for the full table.

(1) Section 17 of this rule (which is about audit committees for

Commonwealth entities) applies to a wholly-owned

Commonwealth company in the same way as it applies to a corporate Commonwealth entity.

(2) For the purposes of subsection (1), a reference in section 17 to the accountable authority of the entity is taken to be a reference to the governing body of the company.

(1) The accountable authority of a non-corporate Commonwealth entity must ensure that any arrangement it enters into relating to the use or managment of other CRF money complies with subsection (2).

(2) The arrangement must:

(a) promote the proper use and management of the other

CRF money; and

(b) be in writing; and

(c) require the other CRF money to be deposited in a bank as soon as is practicable; and

(d) require the other party to the arrangement:

(i) to cause records to be kept that properly record and explain the receipt, custody or expenditure of the other CRF money; and

Non-compliance is not reportable against section 26 of the PGPA Rule for the purposes of the compliance report.

There is a mandatory requirement under section 26.

That said, this is not a reportable requirement for the purposes of the compliance report. Refer to section

72.

Non-compliance is reportable against section 28 of the PGPA Rule where a wholly-owned

Commonwealth company has not established the functions and membership of the audit committee, consistent with the criteria at section 17(1) to (5).

Non-compliance is reportable where an accountable authority of a non–corporate Commonwealth entity enters into an arrangement relating to other CRF money, which is inconsistent with subsection 2

Note: Where a person who is outside of the

Commonwealth does not comply with the terms of the arrangement for Other CRF money, this should not be reported for compliance purposes,but may result in penalties for the outside person.


Company only

Non-corporate only

Page 42 of 45

January 2015



(ii) to allow those records to be conveniently and properly audited; and

(e) require any interest earned on the other CRF money to be remitted in full to the Commonwealth (including a requirement about the timing and frequency of remitting such interest); and

(f) include a requirement about the timing and frequency of any remittance of the other CRF money to the

Commonwealth required under the arrangement; and

(g) include a requirement about the timing and frequency of any payments of the other CRF money to another person required under the arrangement.

(3) Proper , when used in relation to the use or management of other CRF money, means efficient, effective, economical and ethical.

Other Reportable Instances of Non-compliance

Financial Framework (Supplementary Powers) Act 1997

Section 32B Supplementary powers to make commitments to spend relevant money and other CRF money etc.

(1) If:

(2) If:

(a) apart from this subsection, the Commonwealth does not have power to make, vary or administer:

(i) an arrangement under which relevant money or other

CRF money is, or may become, payable by the

Commonwealth; or

(ii) a grant of financial assistance to a State or Territory; or

(iii) a grant of financial assistance to a person other than a

State or Territory; and

(b) the arrangement or grant, as the case may be:

(i) is specified in the regulations; or

(ii) is included in a class of arrangements or grants, as the case may be, specified in the regulations; or

(iii) is for the purposes of a program specified in the regulations; the Commonwealth has power to make, vary or administer the


Non-compliance is reportable against section 32B where an official relies on section 32B to make, vary or administer an arrangement:

 without the appropriate delegation or authorisation under section 32D

 for spending involving a grant of financial assistance to a State or Territory, without the terms or conditions being set out in a written agreement in accordance with section 32C, or

 without legislative authority being provided by FFSP Regulation 16 and an item in

Schedule 1AA or 1AB of the

FFSPRegulations.

Applicable

Page 43 of 45

January 2015

Non-corporate only


Section Title Requirement arrangement or grant, as the case may be.

(2) A power conferred on the Commonwealth by subsection (1) may be exercised on behalf of the Commonwealth by a Minister or a

accountable authority of a non-corporate

Commonwealth entity

.

Note 1: For delegation by a Minister, see section 32D.

Note 2: For delegation by a Chief Executive, see section 53.

(3) In this section: administer :

(a) in relation to an arrangement—includes give effect to; or

(b) in relation to a grant—includes make, vary or administer an arrangement that relates to the grant.

Reportable Instances arrangement includes contract, agreement or deed. make , in relation to an arrangement, includes enter into. vary , in relation to an arrangement or grant, means:

(a) vary in accordance with the terms or conditions of the arrangement or grant; or

(b) vary with the consent of the non Commonwealth party or parties to the arrangement or grant.

Financial Management and Accountability Act 1997

Section 26 Drawing rights required for payment etc. of relevant money

An official or Minister must not do any of the following except as authorised by a valid drawing right:

(a) make a payment of relevant money;

(b) request that an amount be debited against a designated

Special Account appropriation;

(c) debit an amount against a designated Special Account appropriation.

A reference to a designated Special Account appropriation were a reference to an appropriation under section 80 of the PGPA Act that relates to:

(i) the COAG Reform Fund established by the COAG

Applicable

Non--compliance is reportable where the payment of relevant money occurs without a valid drawing right.

Note: Non-compliance is reportable against section

26 for each payment run.

Note: The power to issue drawing rights under section 27 has been delegated to accountable authorities. Where the directions have not been followed, non-compliance should be reported against the Delegation (Schedule 1, Part 8 or Part 9, as applicable).

Non-corporate only

Page 44 of 45

January 2015



Reform Fund Act 2008 ; or

(ii) a special account (within the meaning of the PGPA Act) established by the Nation-building Funds Act 2008 .


Page 45 of 45

January 2015

The PGPA Act and PGPA Rule Compliance Summary

Where a section has not been included in the table, no compliance element is included in that section.

he could use the ATO’s computer system look up the home address of an old friend he is trying to get in contact with. Shaun, advises John that he is unable use the ATO’s systems to disclose the personal information of a tax payer.

Financial Framework (Supplementary Powers) Act 1997

accountable authority of a non-corporate

Commonwealth entity

Financial Management and Accountability Act 1997

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The PGPA Act and PGPA Rule Compliance Summary

Where a section has not been included in the table, no compliance element is included in that section.

he could use the ATO’s computer system look up the home address of an old friend he is trying to get in contact with. Shaun, advises John that he is unable use the ATO’s systems to disclose the personal information of a tax payer.

Financial Framework (Supplementary Powers) Act 1997

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Financial Management and Accountability Act 1997

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