Public Management Reform Agenda

Public Management Reform Agenda

The Public Governance, Performance and Accountability Act 2013 (PGPA Act) commenced on 1 July 2014 and replaced the FMA Act and the CAC Act.

The PGPA Act, the PGPA Rules and other legislative instruments made under the Act are now available on the Finance website.

The PGPA Act represents a cultural change in Commonwealth resource management, from a compliance approach to a principles-based framework. Commonwealth entities are encouraged to think differently about how they manage resources. The Act is based on the following principles:

  • government should operate as a coherent whole
  • a uniform set of duties should apply to all resources handled by Commonwealth entities
  • performance of the public sector is more than financial
  • engaging with risk is a necessary step in improving performance.

Tools to assist Commonwealth entities

Checklist for FMA Act agencies (non‑corporate Commonwealth entities) preparing for 1 July 2014

Legislative instruments:

Summary of changes for FMA Act agencies

PGPA Poster

PGPA video play

Transitional arrangements to consider moving from the FMA Act to the PGPA Act
review and update internal controls before 1 July 2014 to address the new sources of authority in the PGPA Act
prepare new internal delegations for your accountable authority to delegate the powers in the PGPA Act

Note:

  • some powers that were delegable under the FMA Act will not be delegated/ or exist under the PGPA Act  (e.g. FMA Reg 10).
review entity’s contracts that end after 1 July 2014 to identify any contracts that refer to specific provisions of the FMA Act that may need to be updated No changes will be required to most Commonwealth contracts that continue beyond 1 July as most contracts do not refer to specific provisions in the FMA Act. All arrangements that end after 1 July will be saved and continued under the PGPA Act. Some arrangements that are likely to refer to specific provisions of the FMA Act are arrangements relating to allocated officials and arrangements authorised by s12 of the FMA Act, i.e.:

  • where contractors are handling Commonwealth money and so are allocated officials or outsiders under FMA legislation
  • where contractors are conducting procurement or grants processes on behalf of the Commonwealth

Allocated officials and s12 arrangements will be saved and continued after 1 July, however, it may prudent to ensure the arrangements address the new requirements in the PGPA Act (i.e. allocated officials or outsiders are subject to, and aware of, any new requirements imposed by the PGPA Act)

Other transitional arrangements to manage
  • Update Financial Management Information Systems (FMIS) – e.g. consider updating all FMA Act references to approving arrangements/ commitments to reflect the PGPA Act and AAIs.
  • Drawing rights will continue to be required for 2014-15:
    • ensure your entity has adequate drawing rights to cover the payment of relevant money until 30 June 2015 (this includes any necessary third party drawing rights)
    • note the power to delegate powers in the FMA Act to issue drawing rights will not be saved after 1 July (however, delegation made under the FMA Act prior to 1 July will continue in effect after 1 July).
  • GST arrangements in s30A of the FMA Act continued until 30 June 2015
2013-14 requirements that will need to be completed in accordance with the requirements in the FMA Act
  • 2013-14 certificate of compliance
  • 2013-14 financial reports (ss 49, 51, 55, 56 and 57 FMA Act)
  • Losses of public money or public property that occur before 1 July (ss15 & 42 FMA Act)
  • continue any debt recovery actions commenced before 1 July
Compliance Reporting under the PGPA Act for 2014-15
  • Draft guidance has been issued outlining proposed requirements for compliance reporting for the 2014-15 year. This is applicable to non-corporate Commonwealth entities.
  • Guidance tool – details compliance elements of the PGPA framework.
New policy and guidance to help entities prepare for 1 July

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Checklist for Commonwealth authorities (corporate Commonwealth entities) preparing for 1 July 2014

Legislative instruments:

Summary of changes for Commonwealth authorities:

PGPA PosterPGPA video play
Transitional arrangements to consider moving from the FMA Act to the PGPA Act
review and update internal controls before 1 July 2014 to address the new sources of authority in the PGPA Act
Compliance Reporting under the PGPA Act for 2014-15
  • Draft guidance has been issued outlining proposed requirements for compliance reporting for the 2014-15 year. This is applicable to corporate Commonwealth entities in the general government sector only.
  • Guidance tool – details compliance elements of the PGPA framework.
New guidance to help entities prepare for 1 July

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Checklist for Commonwealth companies preparing for 1 July 2014

 

Legislation:
Transitional arrangements to consider moving from the FMA Act to the PGPA Act
2013-14 requirements that will need to be completed in accordance with the CAC Act
  • 2013-14 financial reports (ss 36, 37, 39 of the CAC Act)
Compliance Reporting under the PGPA Act for 2014-15
  •  Draft guidance has been issued outlining proposed requirements for compliance reporting for the 2014-15 year. This is applicable to Commonwealth companies in the general government sector only.
  • Guidance tool – details compliance elements of the PGPA framework.

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Reforms after 1 July – new Commonwealth performance framework

Finance is consulting with entities to develop the Commonwealth Performance Framework, to be available for use by entities from December 2014.

A revised Performance Framework Project Plan is now available.

A Performance Framework Concept Paper about the development of the Commonwealth Performance Framework is now available for review. Written comments can be sent at anytime to PMRAPerformanceFramework@Finance.gov.au.

A more detailed Discussion Paper is being prepared for release in mid to late July 2014.

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PMRA Readiness for implementation Newsletters

PMRA Newsletter 01 – 7 February 2014 (PDF) (docx)
  • Overview of the steps to 1 July. Legislation, rules and guidance to be finalised. Steps for entities
PMRA Newsletter 02 – 25 February 2014 (PDF) (docx)
  • Revised draft PGPA Rules and supporting guidance available
  • Short animated video on the PGPA Act available
PMRA Newsletter 03 – 14 March 2014 (PDF) (docx)
  • JCPAA inquiry into the PGPA rules development
  • draft model resource management instructions for non-corporate Commonwealth entities available
PMRA Newsletter 04 – 3 April 2014 (PDF) (docx)
  • PGPA Act infograhic poster (for all entities) available
  • PGPA Act information sessions
PMRA Newsletter 05 – 17 April 2014 (PDF) (docx)
  • PGPA Act information sessions in all capital cities
  • Project plan for the development of the new Commonwealth Performance Framework available
PMRA Newsletter 06 – 2 May 2014 (PDF) (docx)
  • Release of two PGPA Act infograhic posters (for FMA Act agencies and CAC Act bodies) to assist in explaining changes to the resource management framework
PMRA Newsletter 07 – 23 May 2014 (PDF) (docx)
  • Checklist for Commonwealth entities to prepare for the start of the PGPA Act and information to assist
  • JCPAA tabled report 441 on the PGPA Rules Development
PMRA Newsletter 08 – 30 May 2014 (PDF) (docx)
  • Whole of Commonwealth developments in the lead up to 1 July, including:
    • PGPA Amendment Bill
    • transitional and consequential provisions Bill
    • finalisation of the PGPA Rules
    • finalisation of Resource Management Guidance
PMRA Newsletter 09 – 17 June 2014 (PDF) (docx)
  •  Checklists to help Commonwealth entities prepare for 1 July and address transitional matters now available
  • Commonwealth Performance Framework Concept Paper now available
PMRA Newsletter 10 – 20 June 2014 (PDF) (docx)
PMRA Newsletter 11 – 26 June 2014 (PDF) (docx)
  • the PGPA (Consequential & Transitional Provisions) Bill 2014 passed both Houses of Parliament on 26 June
  • the PGPA Amendment Act 2014 received Royal Assent on 26 June.
PMRA Newsletter 12 – 1 July 2014 (PDF) (docx)
  • PGPA Act has commenced
  • the Act and accompanying rules and instruments are available on the Finance website
  • new and updated resource management guidance is also available on the Finance website
  • the first Commonwealth Resource Management eLearning module, Introduction to the PGPA Act, will be available on GovDex later this week.
PMRA Newsletter 13 – 16 July 2014  (PDF)  (docx)
  •   New framework terminology
  • Commonwealth Resource Management (CRM) eLearning Program
  • FFSP Act and Regs now on Comlaw

To subscribe to the PMRA Newsletter, please contact us at pmra@finance.gov.au.

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