10 June 2014
FMA Act PGPA Act agency or FMA Act agency prescribed agency chief executive chief executive instructions public money non-bankable (money) public property officer/staff/employee
FMA Regulations non-corporate Commonwealth entity listed entity accountable authority accountable authority instructions relevant money unbankable (money) relevant property official
PGPA rule
Finance Minister’s Orders PGPA rule for financial reporting
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Section of FMA
Act or FMA regulation
Subject
Regs 4 and 5 Allocated officials
(allocation of certain persons to Departments and prescribed agencies)
Transitional or saving arrangement
An allocated official arrangement established before 1 July will be saved to continue after 1 July for the duration of the arrangement. For the duration of the arrangement the allocated official will be taken to be an official under the PGPA Act (e.g. the duties of officials will apply to that person)
No new allocated official arrangements can be established after
Proposed transitional arrangements for FMA Act agencies
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Section of FMA
Act or FMA regulation
Schedule 1 of
Regs s6 agencies
Subject
Prescribed agencies
Notional payments and receipts between
Transitional or saving arrangement
1 July 2014. After 1 July, if a person does not meet the definition of an official in the PGPA Act but it is necessary for that person to be treated as an official, then they will need to be listed in a
PGPA rule.
This provision does not cover arrangements authorised under s12 of the FMA Act. Arrangements authorised under s12 before
1 July will continue after 1 July until they expire. If a new arrangement is established after 1 July, it will have to meet the requirements of s29 of the PGPA Rule for “other CRF money”.
After 1 July, “prescribed agencies” will be listed in the PGPA rules as “listed entities”.
Notional payments made before 1 July will continue to be covered by s6 FMA Act.
Notional payments after 1 July will be covered by the equivalent provision in s76 of the PGPA Act. s8 s10
Arrangements with banks
Banking or public money
/ relevant money ss 15 and 42 Losses of public / relevant money or public
/ relevant property
Losses that occur before 1 July will be subject to the requirements in ss15 and 42 of the FMA Act. This is because the
FMA Act and the PGPA Act have different penalty arrangements.
Losses that occur after 1 July will be subject to ss 68, 69 and 70 of the PGPA Act. s 20
Banking arrangement made before 1 July will be saved and deemed to have been made under s53 of the PGPA Act.
The Commonwealth’s central banking agreement with the
Reserve Bank of Australia (RBA) will be preserved until the end of 2014 to enable an orderly transition to new arrangements with the RBA under s53(3) of the PGPA Act.
Public money received before 1 July, must be banked in accordance with s10 FMA Act (even if that occurs after 1 July).
Relevant money received after 1 July must be banked in accordance with s55 of the PGPA Act. s 21 ss 26-27
Special Accounts established by Finance
Minister
Special Accounts established by other Acts
Drawing rights
Special Accounts established by a determination under s20(1) of the FMA Act before 1 July, will be saved after 1 July and deemed to have been made under s78(1) of the PGPA Act.
Will be recognised by, and subject to, s80 of the PGPA Act, regardless of when they were created.
Existing drawing rights arrangements under ss26-27 of the FMA
Act will continue until 30 June 2015.
This will provide continuity for the 2014-15 reporting period until the new administrative arrangements relating to the drawing down of appropriations are finalised.
The Finance Minister’s delegation of the power to issue drawing rights under s27 of the FMA Act will also be saved and continued until 30 June 2015. Any sub-delegations from Chief
Executives will also be saved to enable new drawing right instruments to continue to be issued by sub-delegates.
Proposed transitional arrangements for FMA Act agencies
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Section of FMA
Act or FMA regulation s 28
Subject
Repayments by the
Commonwealth
Transitional or saving arrangement ss 30 and
32A(2) ss 30A and
32A(3) s 31
Reg 15 s 32
Repayments to the
Commonwealth
GST – appropriations to take account of recoverable GST
Retaining prescribed receipts
Transfer of appropriations to follow functions
Amounts paid by the Commonwealth before 1 July can be repaid after 1 July in accordance with ss30 and 32A(2) of the FMA Act.
The GST arrangements in ss30A and 32A(3) will continue until
1 July 2015.
This is to ensure a scheme is in place while further consultation occurs on more appropriate and simplified arrangements in relation to GST payments and receipts.
The retained receipt requirements in ss31 and 32A(4) of the
FMA Act will continue until 1 July 2015.
This is to ensure a scheme is in place while further consideration is given to more appropriate and simplified arrangements in relation to payments and receipts relating to
GST. Retained receipts will then be governed by s74 of the
PGPA Act.
Will apply to the transfer of appropriations up to 1 July.
After 1 July, regardless of when the transfer of entity functions occurs, s75 of the PGPA Act will apply. Including to any transfers of functions that require appropriation adjustments that have not been dealt with under s32 of the FMA Act before
1 July. ss 32B, 32C,
32D
Schedules 1AA and 1AB of the
Regulations
Supplementary powers to make, vary and administer arrangements and grants specified in the FMA
Regulations s 39B
Schedule 1B to the Regs
Supplementary powers to form companies
Will be saved and continue as ss32B, 32C, 32D of the Financial
Framework (Supplementary Powers) Act 1997 (FFSP Act).
The list of arrangements, grants and programmes to which s32B applies in Schedules 1AA and 1AB will also be saved and continued.
The delegation of Chief Executives or ministers powers in ss32B or 32C and any directions under s32D(4) of the FMA Act made before 1 July, will continue as if those delegations or directions had been made under the FFSP Act. Any sub-delegations made under the FMA Act before 1 July will also be preserved (until revoked or replaced by the accountable authority or minister).
Will be saved and continue as s39B of the Financial Framework
(Supplementary Powers) Act 1997.
The list of Commonwealth companies in Schedule 1B will also be saved and continued.
The delegation of the Finance Minister’s powers in s39B of the
FMA Act made before 1 July will continue as if that delegation had been made under s40 the FFSP Act. Any directions on the use of delegations relating to s39B would also be preserved. s 32D
Amounts received before 1 July can be repaid after 1 July in accordance with s28 of the FMA Act. s77 of the PGPA Act will apply to repayments the
Commonwealth is required or permitted to make after 1 July.
Delegations by a Minister of the supplementary power in s32B of the
Any delegations made under s32D(1) of the FMA Act before
1 July will be deemed to have been made under s32D(1) of the
Financial Framework (Supplementary Powers) Act 1997 from
Proposed transitional arrangements for FMA Act agencies
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Section of FMA
Act or FMA regulation
FMA Act
Subject
1 July.
Transitional or saving arrangement s 33 s 38 s 39 s 39A(1) reg 22AA s 43(b) s 44 reg 9 s 44A ss 47 and 63
Act of grace payments
Finance Minister may borrow for short periods
Investment of public money
Minister must inform
Parliament of involvement in a company by the
Commonwealth
Any agreements relating to short-term borrowing (such as for credit cards) made before 1 July, will be deemed to have been made under s56 of the PGPA Act from 1 July.
Any investments made before 1 July, will be deemed to have been made under s58 of the PGPA Act from 1 July.
A Minister may inform Parliament of an event listed in s39A(1) of the FMA Act or reg 22AA of the FMA Regulations (share acquisitions and other events) after 1 July, where the event happens before 1 July.
For certain events that occur after 1 July, ministers will inform
Parliament in accordance with s72 of the PGPA Act.
Gifts of public property An approval to make a gift of property made before 1 July, will be deemed to authorise the making of that gift after 1 July under s66 of the PGPA Act.
After 1 July, the gifting of all relevant property will be in accordance with s66 of the PGPA Act, regardless of when the property was acquired by a Minister or official.
Making, varying or administering an arrangement
Any arrangements made before 1 July, will be deemed to continue as if made under s23 of the PGPA Act.
Approval of spending proposals
Any act of grace authorisation made by the Finance Minister before 1 July will be deemed to have been made under s65 of the PGPA Act from 1 July.
Keeping responsible
Minister and Finance
Minister informed
Recovery of debts
An approval under reg 9 of the FMA Regulations before 1 July, will be deemed to continue as if the approval had been made under s18 of the PGPA Rule.
If information has been required before 1 July but not yet provided, the information must be provided after that date (a minister will not need to make a new request under s19 of the
PGPA Act).
Any debt that a FMA Chief Executive began to pursue before
1 July must be continued under s47 of the FMA Act (the debt recovery action does not need to be restarted under the debt recovery rules in the PGPA Act).
PGPA rule 11 will apply to:
 debts incurred after 1 July and
 debts incurred before 1 July if the recovery of the debt has not yet commenced.
After 1 July:
 the waiver of amounts owing to the Commonwealth will be in accordance with s63 of the PGPA Act (rather than s34 of the
FMA Act), regardless of when such an amount becomes owing
 set-off against amounts owing to the Commonwealth will be
Proposed transitional arrangements for FMA Act agencies
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Section of FMA
Act or FMA regulation s 48 ss 49, 51, 55,
56, 57 regs 22A, 22B reg 22D s 50 ss 54-56
Subject Transitional or saving arrangement
Accounts and records in accordance with s64 of the PGPA Act (rather than s35 of the FMA Act), regardless of when such an amount becomes available for setting off
Accounts and records made before 1 July shall continue to be subject to s48 of the FMA Act after 1 July. Over time the ordinary record-keeping requirements of the Archives Act 1983 will supersede FMA Act requirements.
Continuation of reporting obligations for
2013-14 financial year
Certain FMA Act provisions relating to the 2013-14 financial year continue to apply after 1 July to ensure that FMA Act agencies produce their financial statements for 2013-14 and have those statements audited by the Auditor-General under the
FMA Act.
Where relevant the FMA reg 22A (preparation of annual financial statements by the Finance Minister) and reg 22B
(Audit of the Finance Minister’s annual financial statements) will also be preserved.
The reporting requirements in the PGPA Act will then apply for the 2014-15 financial year and beyond, for example:
 annual financial statements will be prepared and audited for reporting periods commencing on or after 1 July 2014 in accordance with ss42 and 43 of the PGPA
 audits of financial statements of any subsidiaries for reporting periods commencing on or after 1 July in accordance with s44 of the PGPA Act
 annual reports for reporting periods commencing on or after
1 July 2014 in accordance with s46 of the PGPA Act.
Rules supporting the annual reporting obligations will also be developed in consultation with key stakeholders, including the Joint Committee of Public Accounts Audit (JCPAA), during the second half of 2014 before the JCPAA is asked to formally approve any proposed rules.
Budget estimates Will be prepared in accordance with any directions issued by the Finance Secretary under s36 of the PGPA Act for reporting periods commencing on or after 1 July 2014 (i.e. the first estimates to be prepared in accordance with the PGPA Act will be for 2015-16 Budget).
Additional financial statements
Australian Government financial reporting requirements
Additional financial statements required under s50 of the FMA
Act before 1 July will continue to be required after 1 July in accordance with the FMA Act.
Will continue to apply to Australian Government financial reporting required for 2013-14. For example the financial statements for June 2014 (the last month before the FMA Act is repealed) will be in accordance with s54 of the FMA Act.
For reporting periods commencing on or after 1 July, monthly and other financial statements will be in accordance with ss47-49 of the PGPA Act.
Proposed transitional arrangements for FMA Act agencies
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Section of FMA
Act or FMA regulation s 58 regs 28 & 28A
Schedule 2
–
New
New
New
New
Subject
Modified operation of
Act and relevant regulations
Delegations
Duties of officials – use of position
Duties of officials – use of information
Duties of officials – disclosures of interests
Corporate plans
Transitional or saving arrangement
Modifications to the FMA Act and FMA Regulations for intelligence, security or prescribed law enforcement agencies made before 1 July, continue to apply after 1 July for the purposes of the 2013-14 financial year (e.g. for completing
2013-14 audited financial statements).
FMA Act delegations: the power to delegate powers in the
FMA Act (e.g. to issue drawing rights under s27 of the FMA Act) will not be saved. New delegations cannot be made under the
FMA Act after 1 July.
However, delegations made under the FMA Act prior to 1 July will continue in effect and can be relied on in relation to the powers in the FMA Act that will continue after 1 July (e.g. for the issue of drawing rights under s27 of the FMA Act).
FFSP Act delegations: s32D of the FMA Act provides authority to delegate the supplementary spending power in s32B. This power to issue delegations will be continued in s32D of the FFSP
Act. Until revoked or replaced, officials can rely on an existing delegation under s32D of the FMA Act after 1 July.
PGPA Act delegations:
 Finance Minister will delegate his powers under the PGPA Act when the amendment and consequential and transitional
Bills are passed by Parliament.
 Accountable authorities can then delegate (or sub-delegate) their powers under the PGPA Act (in accordance with s110 of the PGPA Act). s 27 of the PGPA Act will apply to officials after 1 July. This will ensure that an official cannot be found to have contravened s27 by misusing his or her position before 1 July, even if the effects of that misuse only become apparent after 1 July.
Any misuse of position before 1 July will be actioned through legislation in place at that time (e.g. the Public Service Act). s 28 of the PGPA Act will apply to the actions of officials before or after 1 July. If a person obtains information before 1 July and misuses it after 1 July, Then it should still amount to a contravention of s28 and should be subject to appropriate administrative action against the official. s 29 of the PGPA Act will apply to the interests of officials that arise before or after 1 July. A material personal interest arising before 1 July should be disclosed as this could still pose a risk to the Commonwealth entity if it is ongoing. s 35 of the PGPA Act will require all Commonwealth entities who are not already required to prepared corporate plans by existing legislation, to prepare their first corporate plan for reporting periods commencing on or after 1 July 2015.
This requirement is not commencing until 1 July 2015:
 as the first complete reporting period that occurs immediately after commencement of ss35 and 95 will be the
Proposed transitional arrangements for FMA Act agencies
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Section of FMA
Act or FMA regulation
New
Subject
Annual performance statements
Transitional or saving arrangement
2015-16 year and
 so that rules on corporate planning can be prepared in consultation with stakeholders, including the Parliament and Commonwealth entities and companies, during the second half of 2014.
Any requirement in legislation other than the PGPA Act for a
Commonwealth entity to prepare a corporate plan (however described) will continue for the 2014-15 financial year. ss 39 and 40 of the PGPA Act will be required in entity’s annual reports to provide an assessment of performance against the matters covered in their corporate plan for reporting periods commencing on or after 1 July 2015 (as for corporate plans).
The first performance statements will need to be included in annual reports presented to Parliament in October 2016.
This requirement is not commencing until after 1 July 2015:
 as the corporate plans on which the performance statements will be based will not be available before mid-
2015 and
 to enable consultation with key stakeholders, including the
Parliament, on the rules and information requirements to be met in their preparation.
Proposed transitional arrangements for FMA Act agencies
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