Part III: The Budget process Resource Management and Budget Training November 2014 1 Contact and acknowledgement information ©Commonwealth of Australia 2014 All material produced by the Department of Finance (Finance) constitutes copyright administered by Finance. Finance reserves the right to set out the terms and conditions for the use of such material. Apart from any use permitted under the Copyright Act 1968, and those explicitly granted herein, all other rights are reserved. Unless otherwise noted, all material in this publication, except the Commonwealth Coat of Arms, and any material protected by a trademark is licensed under the Creative Commons BY SA Attribution Share Alike 4.0 Australia Licence. Details of this licence are available at: http://creativecommons.org/licenses/by-sa/4.0/. Enquiries For enquiries or suggestions about this presentation, please contact training.team@finance.gov.au Resource Management and Budget Training — Part III 2 Commonwealth Resource Management Framework Constitution PGPA Act Appropriation acts Other legislation Policy Legislative instruments Entity internal controls reporting and evaluation proper use appropriations earned autonomy accountability planning objectives and strategies governance property management transparency audit efficiency PUBLIC RESOURCES spending procurement performance grants management implementing and monitoring risk management cooperation with others commitments budgeting and operational planning 3 The Budget Framework Part I: The Resource Management Framework Part II: Use of public resources Part III: The Budget process • Commonwealth Resource Management Framework • Accountability and performance • The Budget Framework • The Australian system of government • Risk management • Implementing and monitoring • Appropriations • Managing relevant property • The PGPA Act • Compliance reporting • Spending relevant money • Planning and budgeting • Reporting and evaluation • Rules, policy and guidance • Other legislation Resource Management and Budget Training — Part III 4 The Budget Framework Planning and budgeting General taxation Non-tax revenue Consolidated Revenue Fund 5 The Budget Framework Planning and budgeting 700 600 400 300 200 Payments 100 Receipts 2024-25 2022-23 2020-21 2018-19 2016-17 2014-15 2012-13 2010-11 2008-09 2006-07 2004-05 0 2002-03 $ billion 500 Actuals Estimates backward looking (records and explanations) forward looking (forecasts or projections) 6 The Budget Framework Budget roles and responsibilities Prime Minister and Cabinet • agrees to the Budget process • approves new revenue and expenditure decisions Expenditure Review Committee (ERC) • reviews portfolio ministers’ bids for funding (NPPs) • includes expenditure, revenue and savings proposals • recommends to Budget Cabinet which proposals should be: • fully developed for consideration in the Budget • included as final measures in the Budget Parliamentary Budget Office (PBO) • prepares costings and analysis on financial or economic matters, as requested by Members of Parliament Resource Management and Budget Training — Part III 7 The Budget Framework Budget roles and responsibilities Central departments (PM&C, Treasury, Finance) • manages Budget process in accordance with legislation, policy and convention (Finance and Treasury) • costs all expense, capital and savings proposals (Finance) • costs all revenue proposals (Treasury) • manages Cabinet meetings and approvals for NPPs (PM&C) Commonwealth entities • develop NPPs for consideration by Ministers, as part of Portfolio Budget Submissions • update their estimates and actuals for public reporting Resource Management and Budget Training — Part III 8 The Budget Framework Relevant legislation and policy PGPA Act • requires accountable authorities to prepare budget estimates Section 36 Charter of Budget Honesty Act • sets planning and reporting requirements • aims to improve policy outcomes and public scrutiny Budget Process Operational Rules (BPORs) • sets out rules and timing for each year’s Budget process Cabinet Handbook • sets out the process for preparing submissions Resource Management and Budget Training — Part III 9 The Budget Framework Charter reporting requirements • Fiscal strategy statements (Budget Paper No 1) • Regular fiscal reporting • Budget economic and fiscal outlook report • Mid-Year Economic and Fiscal Outlook (MYEFO) report • Final Budget Outcome (FBO) report • Intergenerational reports • Pre-election economic and fiscal outlook reports • costings for election policies Resource Management and Budget Training — Part III 10 The Budget Framework Contents of the Budget Budget papers • • • • No. 1 Budget Strategy and Outlook No. 2 Budget Measures No. 3 Federal Financial Relations No. 4 Agency Resourcing Appropriation bills Budget related • • • • • Portfolio Budget Statements Budget Speech Budget Overview Budget at a Glance Ministerial Statements (Intergenerational Report) • Appropriation Bill (No.1) • Appropriation Bill (No.2) • Appropriation (Parliamentary Departments) Bill (No.1) 11 The Budget Framework Budget tools Central Budget Management System (CBMS) • Budget Estimates and Actuals Management (BEAM) • Entities add agreed estimates for the NPPs • Finance reviews and validates the estimates • Budget Policy and Coordination Database (BPCD) • details about the measures • links relevant estimates in BEAM INPACT new policy and costings tracker • allows Finance to track policies and costings • captures submissions, NPPs, costing agreements and Government decisions Resource Management and Budget Training — Part III 12 The Budget Framework Three year budget cycle Year 3: Post-budget year • reporting • audit Year 1: Pre-budget year Reporting and evaluation Planning objectives and strategies Implementing and monitoring Budgeting and operational planning Year 2: Budget year • monitoring and adjusting • fiscal strategy set • allocation of public resources • parliament and the public informed about these decisions • appropriations put to Parliament for approval Resource Management and Budget Training — Part III 13 The Budget Framework Three year budget cycle Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Pre-Budget Year Government sets BPORs and timing Government undertakes initial strategic budget planning Portfolio minister proposes policy priorities to the PM ERC considers policy priorities Portfolio departments prepare draft PBSs Finance agrees costings contained in draft PBSs PM decides which proposals may be submitted to ERC Portfolio departments lodge final PBSs to Cabinet Secretariat ERC considers NPPs contained in the PBSs CBMS: pre-ERC estimates update Risk and assurance processes CBMS: Budget estimates update Budget Cabinet considers NPPs approved by ERC Budget papers produced Budget night (2nd Tuesday) Budget papers and appropriation bills introduced to Parliament Senate Legislation Committee hearings Appropriation bills considered and usually passed by Parliament by end of June Budget Year Performance monitoring MYEFO papers produced Senate estimates hearings Additional estimates bills passed by Parliament (usually by end of April) Additional Estimates appropriation bills prepared Supplementary additional estimates appropriation bills prepared and introduced to Parliament, if required Post-Budget Year Entities prepare annual reports (audited by ANAO) Final Budget Outcomes (FBO) published by Finance Entities’ annual reports published Consolidated Financial Statements (CFSs) audited by ANAO and published by Finance Finance Minister provides report to Parliament on the use of Advances to the Finance Minister (AFMs) Parliament passes AFM report (usually by end of April) 14 Planning and budgeting Part I: The Resource Management Framework Part II: Use of public resources Part III: The Budget process • Commonwealth Resource Planning Management Framework • Accountability and performance • The Budget Framework • • Risk management • Implementing and monitoring objectives and The Australian system of strategies government • Appropriations • Budgeting and The PGPA Act operational planning • Spending relevant money • Managing relevant property • Compliance reporting • Planning and budgeting • Reporting and evaluation • Rules, policy and guidance • Other legislation Resource Management and Budget Training — Part III 15 Planning and budgeting Budget Process Operational Rules Process Purpose Indicative timing Government sets operational timing Budget Process Operational Rules considered by Cabinet. Process and timetable are formally set September Ministers submit draft proposals Ministers outline draft proposals for the coming budget October Estimates updated at Mid-Year Economic and Fiscal Outlook Estimates of spending and revenue are updated and policy decisions since the last Budget are reported October/November Budget priorities are set Ministers’ draft proposals are reviewed by Expenditure Review Committee and budget priorities are established. Late November Portfolio budget submissions Departments prepare submissions. Finance and Treasury agree on costings for all new policy proposals. All central departments provide feedback to portfolio departments on the quality and content of submissions coming forward in the context of the Budget. January Central departments review/ pre-ERC estimates update Central departments review submissions and Finance prepares briefs for ERC and pre-ERC estimates update January/February Expenditure Review Committee ERC reviews proposals and recommends which proposals should be included in the Budget (Finance Green Briefs inform this process) March Pre-budget review Entities update estimates to reflect ERC’s recommendations prior to finalising the Budget April Budget Cabinet Special sitting of Cabinet is held to consider and confirm ERC decisions and agree on final Budget measures Late April Budget night Government’s decisions about budget management are announced. Appropriation Bills tabled for consideration by parliament. May 16 Planning and budgeting Planning objectives and strategies Pre-budget year Jul Aug Jan Feb Portfolio departments prepare draft PBSs Portfolio departments lodge final PBSs to Cabinet Secretariat Finance agrees costings contained in draft PBSs Risk and assurance processes Budgeting and operational planning Sep Oct Government sets BPORs and timing Portfolio minister propose policy priorities to the Prime Minister Government undertakes initial strategic budget planning Prime Minister decides which proposals may be submitted to ERC Mar Apr May CBMS: Budget estimates update Budget papers produced ERC considers NPPs contained in the PBSs CBMS: pre-ERC estimates update Budget Cabinet considers NPPs approved by ERC Nov Dec ERC considers policy priorities Budget night (2nd Tuesday) Budget papers and appropriation bills introduced to Parliament Jun Budget night (2nd Tuesday) Budget papers and appropriation bills introduced to Parliament Appropriation bills considered and usually passed by Parliament by end of June 17 Planning and budgeting Planning objectives and strategies Costing process — key elements Budgeting and operational planning Prepare Understand Finance’s role in policy costing Understand Finance’s costing protocols Develop clear policy description, RPAT and complete costing Understand and clarify policy Ascertain if policy is being funded correctly Clarify key policy implementation issues Interpret policy Cost departmental expenses Assess general costing assumptions and information Assess staffing costs and standard on-costs or overheads Assess nonstandard operating costs Assess operating costs associated with capital funding protocols Apply efficiency dividend Apply indexation to forward year costs as required Cost administered expenses Apply indexation to forward year costs as required Assess general information and costing data Assess implementation and evaluation assumptions Assess assumptions behind the key cost drivers Cost capital and ICT funding proposals Does proposal require? 1. Full business case 2. Gateway clearance 3. Two-stage clearance Assess proposal (business case) with lifecycle costing approach Costing sign-off As required, seek expert input/assistance to assess proposal (e.g. FMG, AMPS, AGIMO) Clearly identify operating expenses associated with the proposed capital asset Apply indexation to forward year costs as required Calculate impact on resourcing and Budget balances 18 Planning and budgeting Where does an NPP come from? Planning objectives and strategies Budgeting and operational planning A few things to remember: • Policy landscape is not a blank canvass • New policy can involve a change to an existing program or activity. Policies come from: • Government direction, such as election commitments • Entities, through improving core business or new ideas • Other sources, such as reports produced within or outside Government Resource Management and Budget Training — Part III 19 Planning and budgeting Planning objectives and strategies Discussion Budgeting and operational planning NPP to build and support schools in regional and remote areas (Page 2 of the Activity Book) Resource Management and Budget Training — Part III 20 Planning and budgeting Developing an NPP Planning objectives and strategies Budgeting and operational planning Information government needs to make a decision about an NPP… • • • • • • • • • • • what is being proposed and why? does the proposal have authority to come forward? which entities will be affected? is there agreement between entities? how will the proposal be implemented? how much will it cost? is legislation required? what are the risks and how will they be managed? are there any broader impacts? have the right people been consulted? how will performance be measured? Resource Management and Budget Training — Part III 21 Planning and budgeting Planning objectives and strategies Costing process — key elements Budgeting and operational planning Prepare Understand Finance’s role in policy costing Understand Finance’s costing protocols Develop clear policy description, RPAT and complete costing Understand and clarify policy Ascertain if policy is being funded correctly Clarify key policy implementation issues Interpret policy Cost departmental expenses Assess general costing assumptions and information Assess staffing costs and standard on-costs or overheads Assess nonstandard operating costs Assess operating costs associated with capital funding protocols Apply efficiency dividend Apply indexation to forward year costs as required Cost administered expenses Apply indexation to forward year costs as required Assess general information and costing data Assess implementation and evaluation assumptions Assess assumptions behind the key cost drivers Cost capital and ICT funding proposals Does proposal require? 1. Full business case 2. Gateway clearance 3. Two-stage clearance Assess proposal (business case) with lifecycle costing approach Costing sign-off As required, seek expert input/assistance to assess proposal (e.g. FMG, AMPS, AGIMO) Clearly identify operating expenses associated with the proposed capital asset Apply indexation to forward year costs as required Calculate impact on resourcing and Budget balances 22 Planning and budgeting Planning objectives and strategies Entities & Finance: High-level elements of a costing • understanding the policy • costing departmental items • costing administered items (on behalf of Commonwealth) • costing capital and ICT funding (Gateway, 2 Pass review) Budgeting and operational planning Considerations: • • • • • Number of staff required Level of staff required Assumptions Cost components Cost drivers (price/volume) • Options • Business cases, etc Resource Management and Budget Training — Part III 23 Planning and budgeting Planning objectives and strategies Costing process — key elements Budgeting and operational planning Prepare Understand Finance’s role in policy costing Understand Finance’s costing protocols Develop clear policy description, RPAT and complete costing Understand and clarify policy Ascertain if policy is being funded correctly Clarify key policy implementation issues Interpret policy Cost departmental expenses Assess general costing assumptions and information Assess staffing costs and standard on-costs or overheads Assess nonstandard operating costs Assess operating costs associated with capital funding protocols Apply efficiency dividend Apply indexation to forward year costs as required Cost administered expenses Apply indexation to forward year costs as required Assess general information and costing data Assess implementation and evaluation assumptions Assess assumptions behind the key cost drivers Cost capital and ICT funding proposals Does proposal require? 1. Full business case 2. Gateway clearance 3. Two-stage clearance Assess proposal (business case) with lifecycle costing approach Costing sign-off As required, seek expert input/assistance to assess proposal (e.g. FMG, AMPS, AGIMO) Clearly identify operating expenses associated with the proposed capital asset Apply indexation to forward year costs as required Calculate impact on resourcing and Budget balances 24 Planning and budgeting Entity and Finance: Risk assessment Planning objectives and strategies Budgeting and operational planning to assess the broader impacts that an NPP could have, entities must consider: • nature and intent of the proposal • components that are by nature higher risk (e.g., ICT, remote distance), which require more detailed assurance processes • possible impacts on the different sectors, either directly or indirectly: • regulatory impacts (consistent with Government’s red tape reduction agenda) • families, indigenous, regional areas and small businesses Resource Management and Budget Training — Part III 25 Planning and budgeting Activity: Preparing a costing for an NPP Planning objectives and strategies Budgeting and operational planning (Pages 2-8 of the Activity Book) 26 Planning and budgeting Planning objectives and strategies Pre-budget year Jul Aug Jan Feb Portfolio departments prepare draft PBSs Portfolio departments lodge final PBSs to Cabinet Secretariat Finance agrees costings contained in draft PBSs Risk and assurance processes Budgeting and operational planning Sep Oct Government sets BPORs and timing Portfolio minister propose policy priorities to the Prime Minister Government undertakes initial strategic budget planning Prime Minister decides which proposals may be submitted to ERC Mar Apr May Jun CBMS: Budget estimates update Budget papers produced Senate Legislation Committee hearings Budget night (2nd Tuesday) Budget papers and appropriation bills introduced to Parliament Appropriation bills considered and usually passed by Parliament by end of June ERC considers NPPs contained in the PBSs CBMS: pre-ERC estimates update Budget Cabinet considers NPPs approved by ERC Nov Dec ERC considers policy priorities 27 Planning and budgeting Preparing Portfolio Budget Submissions Planning objectives and strategies Budgeting and operational planning • prepared on a portfolio basis • presented to Cabinet by the relevant Minister • Cabinet Handbook process • costings agreed between entity and Finance from relevant entities and central departments • exposure drafts of the submission distributed • coordination comments obtained from relevant entities and central departments • final submissions then provided to ERC Resource Management and Budget Training — Part III 28 Planning and budgeting Expenditure Review Principles Appropriateness Effectiveness Strategic policy alignment Efficiency Performance assessment Integration Planning objectives and strategies Budgeting and operational planning Evidence 29 Planning and budgeting Discussion: Expenditure Review Principles Planning objectives and strategies Budgeting and operational planning (Pages 2-8 of the Activity Book) Examine the costing you prepared in light of the Expenditure Review Principles • How would you weigh the different principles in this particular scenario? • Would you weigh them differently for other types of costings? Resource Management and Budget Training — Part III 30 Planning and budgeting Planning objectives and strategies Budget Cabinet Expenditure Review Committee decisions Budgeting and operational planning Budget Cabinet Cabinet decisions Resource Management and Budget Training — Part III 31 Planning and budgeting Budget Night: Budget delivered to Parliament Planning objectives and strategies Budgeting and operational planning 32 Planning and budgeting Contents of the Budget Budget papers • • • • No. 1 Budget Strategy and Outlook No. 2 Budget Measures No. 3 Federal Financial Relations No. 4 Agency Resourcing Appropriation bills • Appropriation Bill (No.1) • Appropriation Bill (No.2) • Appropriation (Parliamentary Departments) Bill (No.1) Budget related • • • • • Portfolio Budget Statements Budget Speech Budget Overview Budget at a Glance Ministerial Statements (Intergenerational Report) Resource Management and Budget Training — Part III 33 Planning and budgeting Planning objectives and strategies Parliamentary consideration of Appropriation Bills Jul Aug Jan Feb Portfolio departments prepare draft PBSs Portfolio departments lodge final PBSs to Cabinet Secretariat Finance agrees costings contained in draft PBSs Risk and assurance processes Sep Oct Government sets BPORs and timing Portfolio minister propose policy priorities to the Prime Minister Government undertakes initial strategic budget planning Prime Minister decides which proposals may be submitted to ERC Mar Apr May Jun CBMS: Budget estimates update Budget papers produced Senate Legislation Committee hearings Budget night (2nd Tuesday) Budget papers and appropriation bills introduced to Parliament Appropriation bills considered and usually passed by Parliament by end of June ERC considers NPPs contained in the PBSs CBMS: pre-ERC estimates update Budgeting and operational planning Budget Cabinet considers NPPs approved by ERC Nov Dec ERC considers policy priorities 34 Planning and budgeting Activity: Budget Family Feud Resource Management and Budget Training — Part III 35 Implementing and monitoring Part I: The Resource Management Framework Part II: Use of public resources Part III: The Budget process • Accountability and • Commonwealth Resource Implementing performance Management Framework and monitoring • Risk management • The Australian system of government • Spending relevant money • The Budget Framework • Appropriations • Managing relevant property • The PGPA Act • Compliance reporting • Reporting and evaluation • Planning and budgeting • Implementing and monitoring • Rules, policy and guidance • Other legislation Resource Management and Budget Training — Part III 36 Implementing and monitoring Implementing & monitoring Budget year Jul Aug Sep Oct Nov Dec Performance monitoring MYEFO papers produced 1 July budget year begins Jan Additional Estimates appropriation bills prepared Feb Mar Apr May Additional estimates bills usually introduced to Parliament Jun Performance monitoring Senate estimates hearings Additional estimates bills passed by Parliament (usually by end of April) Supplementary additional estimates appropriation bills prepared and introduced to Parliament, if required • programmes may require adjustment Resource Management and Budget Training — Part III 37 Implementing and monitoring Reasons for adjustments • • • • • Implementing & monitoring new or revised Government decision(s) programme specific parameter changes movement of funds interest equivalency payments changes in environment Resource Management and Budget Training — Part III 38 Implementing and monitoring Estimates preparation Implementing & monitoring Entities: • prepare estimates and supporting documentation • enter into CMBS and amend as necessary Finance : • validates entity estimates • checks for authority, appropriate explanation, accuracy and impact on baseline and financial statements • prepares consolidated reports Resource Management and Budget Training — Part III 39 Implementing and monitoring Implementing & monitoring Additional annual appropriation Bills Introduced in May Generally introduced February to April Introduced in May Budget Additional estimates Supplementary additional estimates Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Bills 5 & 6 Bills 3 & 4 Bills 1 & 2 40 Implementing and monitoring Activity: Estimates and reports Implementing & monitoring Performance indicators, estimates and reports (Pages 12-15) Resource Management and Budget Training — Part III 41 Reporting and evaluation Part I: The Resource Management Framework • Commonwealth Resource Management Framework Part II: Use of public resources • Accountability and performance Reporting and • Risk management • The Australian system of evaluation government • Spending relevant money • Appropriations • Managing relevant property • The PGPA Act • Compliance reporting Part III: The Budget process • The Budget Framework • Planning and budgeting • Implementing and monitoring • Reporting and evaluation • Rules, policy and guidance • Other legislation Resource Management and Budget Training — Part III 42 Reporting and evaluation Relevant legislation Reporting and evaluation PGPA Act • requires financial and performance reports from entities • focus on better information for Parliament and the public • clear line of sight from corporate plans and PBS to annual reports Charter of Budget Honesty Act • specifies arrangements for budget reporting Auditor-General Act • specifies the auditing role and responsibilities of the Auditor-General and the ANAO Resource Management and Budget Training — Part III 43 Reporting and evaluation Reporting requirements Jul Aug Sep Aug Nov Dec Jan Feb Mar Apr Budget reporting Pre-budget year: Jul Oct Reporting and evaluation Oct Nov Dec Jan Feb Mar Jun Budget night • annual forecast • support Budget-related decisions of Government • provides the fiscal outlook for the economy Sep May Apr May Jun Monthly financial statements Budget year: MYEFO / Additional Estimates Budget-year reporting • provides updated estimates • allows assessment of performance against fiscal strategy • takes into account government decisions Jul Aug Post-budget year: Sep Oct Final Budget Outcome Entity annual reports Nov Consolidated Financial Statements Dec Jan Feb Mar Apr May Jun Post-budget outcomes • compares actual results to previous estimates • covers Commonwealth public sector, general government sector and individual entities 44 Reporting and evaluation Post budget year reporting Jul Aug Sep Entities prepare annual reports (audited by ANAO) Oct Entities’ annual reports published Final Budget Outcomes (FBO) published by Finance Jan Feb Finance Minister provides report to Parliament on the use of Advances to the Finance Minister (AFMs) Mar Apr Reporting and evaluation Nov Dec Consolidated Financial Statements (CFSs) audited by ANAO and published by Finance May Jun Parliament passes AFM report (usually by end of April) 45 Reporting and evaluation End-of-year outcomes Commonwealth public sector General government sector (GGS) Non-corporate Commonwealth entities Reporting and evaluation • Final Budget Outcome (FBO) – General government sector only – required by the Charter – prepared by Finance, not audited • Entity annual reports Corporate Commonwealth entities Commonwealth companies Government business enterprises (GBEs) Public Non-Financial Corporations Public Financial Corporations – principal transparency and accountability document – to the relevant portfolio minister – focus on performance • Consolidated Financial Statements – Commonwealth public sector – disaggregated financial information – prepared by Finance, audited Resource Management and Budget Training — Part III 46 Reporting and evaluation Monthly reporting requirements Jul Aug Sep Oct Nov Dec Jan Feb Reporting and evaluation Mar Apr May Jun Monthly financial statements • Important budget tracking mechanism for government • how do actual expenses vary from the Budget? • Assists with International Monetary Fund reporting • Flows into Australian National Accounts published by the Australian Bureau of Statistics Resource Management and Budget Training — Part III 47 Reporting and evaluation Accounting standards and statistics Reporting and evaluation Reports prepared to Australian Accounting Standards (plus any modifications issued by the Finance Minister) Australian Accounting Standards Focus on financial performance, position and stewardship over resources AASB 1049 Harmonisation Government Finance Statistics Focus on the government’s impact on the economy Resource Management and Budget Training — Part III 48 Reporting and evaluation Major fiscal aggregates Fiscal balance (revenue) minus (expenses) minus (investment in non-financial assets) • accrual measure • shows whether the government has to borrow from financial markets to cover its activities Net worth (assets) minus (liabilities) • economic measure of wealth Reporting and evaluation Underlying cash balance (operating receipts) minus (operating payments) minus (Future Fund net receipts) minus (investment in non-financial assets) • cash measure • shows whether government has to borrow from financial markets to cover its activities Net debt (interest-bearing debts) minus (associated financial assets) • common measure of the strength of government’s financial position • used in cash accounting Resource Management and Budget Training — Part III 49 Reporting and evaluation Activity: Reviewing reports Reporting and evaluation Resource Management and Budget Training — Part III 50 Recap Year 3: Post-budget year • reporting • audit Year 1: Pre-budget year Reporting and evaluation Planning objectives and strategies Implementing and monitoring Budgeting and operational planning Year 2: Budget year • monitoring and adjusting • fiscal strategy set • allocation of public resources • parliament and the public informed about these decisions • appropriations put to Parliament for approval Resource Management and Budget Training — Part III 51 Commonwealth Resource Management Framework Constitution PGPA Act Appropriation acts Other legislation Policy Legislative instruments Entity internal controls reporting and evaluation proper use appropriations earned autonomy accountability planning objectives and strategies governance property management transparency audit efficiency PUBLIC RESOURCES spending procurement performance grants management implementing and monitoring risk management cooperation with others commitments budgeting and operational planning 52 Wrap up Part I: The Resource Management Framework Part II: Use of public resources Part III: The Budget process • Commonwealth Resource Management Framework • Accountability and performance • The Budget Framework • The Australian system of government • Risk management • Implementing and monitoring • Appropriations • Managing relevant property • The PGPA Act • Compliance reporting • Spending relevant money • Planning and budgeting • Reporting and evaluation • Rules, policy and guidance • Other legislation Resource Management and Budget Training — Part III 53 Questions and feedback Resource Management and Budget Training — Part III 54 Further information Department of Finance • finance.gov.au Australian Government Budget • budget.gov.au Public management reform • pmra.finance.gov.au Resource Management and Budget training • finance.gov.au/resource-management/training Resource Management and Budget Training — Part III 55