Next Steps – 25
8 April 2015
Content:
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Discussion forums on the PMRA Community on Govdex
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Update on the Enhanced Commonwealth Performance Framework
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What else is new
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Future Reforms
Discussion forums on PMRA Community on Govdex
The PMRA Community on Govdex now has discussions forums for members to ask questions and
share ideas on the following resource management topics:
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risk management
performance framework
internal controls
financial reporting
compliance reporting
working with others
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resource management training
Any member of the Govdex community can initiate or join any of the discussions occurring on
these forums. Some of the discussions currently occurring:
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how are entities preparing their corporate plans to align with the principles in the
PGPA Act?
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how will entities report compliance with the duties of officials in sections 25-29 of
the PGPA Act?
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do any entities have a risk management framework they are willing to share?
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how are entities assigning delegations to contractors under the PGPA Act?
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what resource management tools and training resources will help Commonwealth
entities to better inform and equip officials to exercise their duties and
responsibilities under the PGPA Act?
Over time an aim of the PMRA Community on Govdex is to build a library of case studies, tools,
templates and answers that entities can use to improve their internal processes and outcomes.
If you are not already a member of the PMRA Community on Govdex, contact
[email protected] and we can send you and your team members an invite to join the
Community.
APS Idea Management platform trial
To further explore ways to share ideas across the Commonwealth public sector, Finance is
preparing to trial a cross-government idea management solution in collaboration with other
entities (DHS, Industry, Health, ATO, and IP Australia). The project is part of the APS
Innovation Action Plan and aims to develop a platform for discussing potential impediments
towards a One APS vision of communication and collaboration and more broadly to provide
better access to solutions for government.
If you are interested in being part of the trial or want to know more about the trial, email
[email protected].
Update on the Enhanced Commonwealth Performance Framework
The Joint Committee of Public Accounts and Audit (JCPAA) announced its support for the
implementation of the Commonwealth Performance Framework to take effect from 1 July
2015. The JCPAA’s support is on the basis that planned performance information be retained
in Portfolio Budget Statements (PB Statements) from 2016-17 onwards.
The amendments to the PGPA Rule will now be finalised for the Finance Minister to make.
The amendments will cover corporate plans and annual performance statements and are
expected to take effect later this month.
Commonwealth entities and companies will be required to publish corporate plans on their
websites by 31 August 2015, unless otherwise directed by their enabling legislation.
Final guidance will be released in coming weeks to assist entities to develop their corporate
plans and provide information about other features of the new Commonwealth performance
framework.
Finance will hold information sessions and workshops from late April.
Transitional performance reporting for 2015-16
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there will be no change to the performance information requirements for the
2015-16 PB Statements – entities should refer to Finance’s guide to preparing
the 2015-16 PB Statements
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the existing key performance indicator based framework will still apply
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corporate plans for 2015-16 (due by 31 August 2015) will be the starting point
for entities to implement more flexible approaches to performance
measurement.
Performance reporting from 2016-17 onwards
The JCPAA has requested that planned performance information be retained in
PB Statements, rather than being located solely in the new corporate plans as was originally
proposed. To meet this request Finance intends to issue a direction under s36(3) of the
PGPA Act, which will set out mandatory performance information reporting requirements for
entities that are required to provide input to annual PB Statements:
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performance information in corporate plans will be more detailed and will relate
to key entity activities
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performance information in PB Statements will be a strategic subset of the
performance information contained in corporate plans that relates to the budget
estimates
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even though PB Statements focus on outcomes and programmes, and corporate
plans focus on the purposes of the entity (which may in part be reflected
through programme structures), it is expected that the same impact and
strategic level performance measures will be reported in an entity’s PB
Statements and corporate plans
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at the end of each reporting period, entities will then be required to report
against these measures in their annual performance statement.
Further consultation will be undertaken leading up to the start of the 2016-17 financial year
to finalise the process.
JCPAA Inquiry into the Commonwealth Performance Framework
While supporting the Commonwealth performance framework becoming operational from
1 July 2015, the JCPAA is of the view that there is a need for further parliamentary scrutiny of
this important area over a longer period.
On 26 March 2015, the JCPAA announced a public inquiry to ensure an effective, integrated
performance management system that continues to improve accountability to the
parliament and the public. The JCPAA has invited submissions by 1 May 2015. Information
on the performance inquiry, including terms of reference, can be found on the JCPAA
website.
For further information about corporate plans or any aspect of the performance framework,
please contact [email protected].
Updated guidance for preparing PB Statements
Finance has released guidance to assist entities preparing PB Statements for 2015-16.
PB Statements are prepared by Commonwealth entities that receive funding through the
annual Appropriation Acts (either directly or through a portfolio department). Excel and
word templates can be downloaded from CBMS, or by contacting your CFO Unit.
Please contact your Finance Agency Advice Unit (AAU) in the first instance for more
information. Questions on the PB Statements guidance, contact
[email protected].
What else is new
New brochure on the duties of officials
A brochure on the duties of officials is now available on the Finance
website. The brochure supports the eLearning modules, PGPA posters and
Resource Management Guide 203 on the duties of officials that can all be
accessed from the webpage Introduction to the Commonwealth Resource
Management Framework.
PGRLA Bill (No. 1) passed both Houses
On 26 March 2015, the Public Governance and Resources Legislation Amendment Bill (No. 1)
2015 passed the Senate. The Bill, Explanatory Memorandum and amendments to the Bill
are on the Parliament House Bill homepage. Of general interest, the Bill includes
amendments to:
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further clarify arrangements relating to the implementation of the resource
management framework under the PGPA Act, e.g. an amendment to provide
that s77 of the PGPA Act, and not s28 of the former FMA Act, supports
repayments by the Commonwealth for amounts received by the Commonwealth
before or after 1 July 2014
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support the administration of goods and services tax (GST) obligations by
non-corporate Commonwealth entities (s74A)
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streamline the administration of the transfer of functions between
non-corporate Commonwealth entities (s75).
Updated accounting policy guides
Finance has updated and released ten accounting policy guides to provide explanations and
examples relating to the interpretation and application of Australian Accounting Standards
and/or the Financial Reporting Rule.
Updated RMG 405 – official international travel
Finance has updated and released RMG 405: Official International Travel - Use of the Best
Fare of the Day, to reflect changes to the approval processes for international travel
announced by the Prime Minister on 9 February 2015. The updated guide replaces the earlier
RMG 405 issued in July 2014. For further information contact [email protected].
Future Reforms
Drawing Rights
The legislative requirement for drawing rights to make a payment of relevant money will
cease on 30 June 2015. There is no requirement to revoke instruments made under the
FMA Act. There is no replacement under the PGPA legislation of drawing rights.
Entities should review their internal controls to ensure that controls over the payment of
relevant money are adequate in preparation for the removal of drawing rights.
Updates to the model Accountable Authority Instructions (AAIs)
Finance is reviewing the model AAIs for non-corporate Commonwealth entities (main change
being to remove references to drawing rights). Finance is also consulting on whether to issue
model AAIs for corporate Commonwealth entities. Comments or questions on the model
AAIs can be sent to [email protected].
Updates to the Finance Minister to Accountable Authority Delegations
The Finance Minister to Accountable Authority Delegations are currently being reviewed as
minor amendments will be necessary for 1 July 2015. Entities will not need to make
substantial changes to internal delegations to address the proposed amendments. Finance
intends to circulate proposed amendments to the Finance Minister’s delegations before the
end of May 2015.
Allocated Officials
The transitional arrangements for allocated officials will cease on 1 July 2015. Finance
expects that an amendment will be made to s9 (Officials) of the PGPA Rule 2014. The
proposed amendment and guidance will be provided to the Governance, Risk Management
and Culture Reference Group for consultation in April 2015, and has been discussed with the
AAI working group. This proposed amendment will take effect from 1 July 2015.
Audit Committees
Finance is proposing to amend s17 of the PGPA Rule relating to non-corporate
Commonwealth entities to provide that a person who is engaged primarily for the purpose of
being an independent member of the audit committee will be considered to be independent,
even if they are deemed to be an official through the entity’s enabling legislation or listing.
This amendment will clarify the requirement for majority independent membership which
comes into effect from 1 July 2015.
The proposed amendment and revised RMG guidance will be provided to the Governance,
Risk Management and Culture Reference Group for consultation in April 2015.