AUSTRALIAN GOVERNMENT GRANTS NEWS December 2013 Welcome to the inaugural edition of Grants News, a quarterly publication about key activities involving Commonwealth grants administration. It is an eventful time to be working in grants administration, with the updated Commonwealth Grants Guidelines (CGGs) coming into effect in June 2013. The Grants Policy team in Finance has been busy running information sessions for agencies with a focus on how the CGGs encourage you to reduce red-tape and apply proportionality. In August, we hosted a whole-of-government skills roundtable on grants to discuss collaboration opportunities across government. This newsletter was a suggestion arising out of the roundtable. This edition contains information about the Public Governance, Performance and Accountability Act 2013 and its implications for the CGGs. A progress update of the exciting new grants.gov.au project is provided, as well as information on the work being undertaken by Finance (AGIMO) around grant management business processes and a taxonomy. Contributions and suggestions for future editions of Grants News are welcomed via grants@finance.gov.au. We would like to wish you all a Merry Christmas and a prosperous New Year. We look forward to our continued collaboration with you throughout 2014. The grants.gov.au project The Australian Government Grants System, (grants.gov.au), was announced in the 2013–14 Budget. Grants.gov.au will be a whole-of-government grants system, similar to Austender, and will be a single point of reference for agencies and grant applicants. It will enable the transfer of application information to and reporting information from agencies’ systems. For Parliament and the public, this single consolidated source of information will improve transparency and accountability about the use of public resources. Importantly grants.gov.au does not supersede agencies’ grant management systems, but will instead interface with agency systems. It will help industry, small business and the not-for-profit sector identify grant opportunities and find out who received a grant. A scoping study, to inform the development of the system, is currently underway. The grants.gov.au questionnaire was sent to all agencies on the 4 December 2013. It collects comprehensive data about current agency practices to determine the business and functional requirements of grants.gov.au. The final scoping study report is due for release mid 2014. If you would like to know more please contact us at grants@finance.gov.au. Grants News | 1 Public Governance, Performance and Accountability Act Implementing Better Practice Grants Administration Guide What is the PGPA Act? The Australian National Audit Office (ANAO) released an updated version of the Administration of Grants Better Practice Guide in early December 2013, entitled Implementing better practice grants administration (the Guide). From 1 July 2014, the Public Governance, Performance and Accountability Act 2013 (PGPA Act) replaces the Financial Management and Accountability Act 1997 (FMA Act) and the Commonwealth Authorities and Companies Act 1997 (CAC Act). It will bring together the fundamental elements of the Commonwealth financial framework under one piece of legislation. The PGPA Act is the cornerstone of the broader public management reform agenda. The objective of the reform agenda is to improve performance, accountability and risk management across government, through a framework that is simple, easy to use and valued by all stakeholders. The PGPA Act will be supported by rules that will set out specific financial management requirements for Commonwealth entities. These rules will be made by the Finance Minister and will be disallowable instruments that must be tabled in the Parliament. Finance, in collaboration with relevant stakeholders, is currently developing these rules and the guidance material to assist Commonwealth entities to manage resources under the PGPA Act. What does it mean for Commonwealth grants? As the CGGs were recently updated we are planning to maintain the CGGs with minor changes, although they may be called the Commonwealth Grant Rules. More information Further information, including draft rules for consultation, fact sheets, latest news and relevant links etc, are available on the Public Management Reform Agenda website at http://www.pmra.finance.gov.au. The Guide is a companion reference to the CGGs to assist decision-makers and agencies in carrying out granting activities. Specifically, the Guide will assist decisionmakers to understand and comply with their obligations and implement the better practice principles, having regard to the particular circumstances of individual granting activities. The updated Guide reflects the revised CGGs that came into effect in June 2013 and draws together key messages identified in audits of granting activities undertaken since the previous version was released. As a result of the progressive implementation of the PGPA Act, further changes to the legislative and policy framework are expected in the context of grants administration. This version of the Guide has been developed with these changes in mind. The Guide will be further updated once the details of the PGPA Act framework are finalised. More Information Copies of the Guide can be downloaded from www.anao.gov.au or requested from the ANAO Publications area on 02 6203 7505 or webmaster@anao.gov.au. Questions or requests for clarification in relation to the contents of the Guide can be directed to Brian Boyd on 02 6203 7672 or brian.boyd@anao.gov.au. Queries in relation to the reform agenda can be directed to pmra@finance.gov.au. Grants News | 2 Frequently Asked Questions If my agency gained responsibility for a grant administered by another agency prior to machinery of government changes, does my agency need to publish the grant on our website? Yes. The CGGs state that information must be retained on an agency’s website for at least two financial years. Where machinery of government (MoG) changes have resulted in responsibility for grants programs changing, agencies should ensure that the information is moved from the losing agency’s website to the receiving agency’s website, wherever practicable. This will ensure the CGGs requirements continue to be met. What are my agency’s grant reporting responsibilities under the Minchin Order? Senators are informed of granting activity through the Procedural Order of Continuing Effect 14 - Departmental and Agency Grants. This is also known as the Minchin Order or Senate Order 14. This order requires agencies to produce a consolidated list of all grants approved each reporting period, including the value of the grant, recipient of the grant and the program from which the grant was made. The reporting period commences the day after the last tabling date, which is no later than 7 days before the commencement of the budget estimates, supplementary budget estimates and additional estimates hearings. Grants management business process and taxonomy development In late 2012, the Secretaries’ ICT Governance Board (SIGB) asked Finance (AGIMO), in partnership with agencies managing significant grants programs, to continue business analytical work around grants management. This work involved identifying a high level set of business processes that could apply across government. AGIMO was also asked to compile a taxonomy, or common language, for grants management. The taxonomy work was to be based on existing taxonomies, such as Standard Business Reporting. This work will help decide whether a wholeof-government feasibility study of a more coordinated grants management ICT system should be undertaken. A draft grants management business process and taxonomy was released for comment by agencies participating via the Grants Working Group on 29 November 2013. This group has also been contributing to the development of the Low-Risk Grant Agreement Template. Agencies are encouraged to provide feedback by close of business on Friday 10 January 2014. Comments should be sent to solutionsandstandards@finance.gov.au. For any agency whose grants programs have been affected by MoG changes, the responses should be based on the receiving agency’s responsibilities as at the end of the reporting period. All grants must be reported and should only be reported once. Contacting Grants News Mailing list – if you wish to subscribe to Grants News please enter your contact details on the Grants News webpage located at http://www.finance.gov.au/financial-framework/financialmanagement-policy-guidance/grants/news.htm. Submissions – to submit an article for Grants News please contact grants@finance.gov.au. Collaborative opportunities – to request interagency engagement or to share information on a collaborative opportunity please contact grants@finance.gov.au. *********** Grants policy framework – please visit http://www.finance.gov.au/financialframework/financial-management-policy-guidance/grants/. Grants News | 3