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26/12/2024
(in relation to payments) An invoice, claim or any legitimate request for the payment of moneys made on a Commonwealth entity.
(in relation to accounting) A ledger or code against which particular financial information is recorded (for example, an asset account records the economic changes related to a particular asset controlled by an entity).
Under the PGPA Act, the person or group of persons responsible for, and control over, each Commonwealth entity's operations. The person(s) or body that is the accountable authority of a Commonwealth entity is as follows:
| if the Commonwealth entity is | then the accountable authority of the entity is |
|---|---|
| a Department of State | the Secretary of the Department |
| a parliamentary department | the Secretary of the Department |
| a listed entity | the person or group of persons prescribed by an Act or the rules to be the accountable authority of the entity |
| a body corporate established by a law of the Commonwealth | the governing body of the entity, unless otherwise prescribed by an Act or the rules |
An accountable authority can issue written instructions about any matter relating to the finance law that all officials of the entity must adhere to. (Accountable authorities may also issue instructions to officials of another Commonwealth entity in relation to matters listed in section 20A(2) of the PGPA Act.) These are referred to as accountable authority instructions (AAIs).
DOFA's Accounting Centre of Excellence draws together accounting expertise and focuses on keeping DOFA at the forefront of international governance, budgeting and accounting developments.
The accounting basis that brings items to account as they are earned or incurred (and not as cash received or paid) and includes them in financial statements in the related accounting period.
A scheme that provides retirement benefits based on accumulated employer contributions, and any investment earnings on those contributions. It is also known as a defined contribution scheme.
A payment made by the Commonwealth to an individual or other body in special circumstances and where there is no legal obligation to make the payment. Act of grace payments must be authorised by the Finance Minister or a delegate under section 65 of the PGPA Act. They may be appropriate where a non-corporate entity's conduct or Commonwealth legislation or policy has resulted in an unintended, inequitable, anomalous or otherwise unacceptable result. Act of grace payments are used where any obligation to the applicant is moral, rather than legal.
The actions and/or efforts performed by a Commonwealth entity or Commonwealth company to deliver government objectives and achieve desired results.
Mathematician who compiles and uses statistics mainly for insurance and finance purposes.
Annual Appropriation Bills that seek legislative authority from parliament to draw and expend money from the Consolidated Revenue Fund (CRF) in addition to the authority provided in the annual Appropriation Acts for the previous Budget. The additional authority is to meet expenditure requirements that have arisen since the last Budget, are unavoidable and cannot wait until the next Budget's appropriations.
(in relation to procurement) Requirements in Division 2 of the Commonwealth Procurement Rules (CPRs) that apply to procurement where the estimated value of the procurement is at or above the relevant procurement threshold.
When an accountable authority of a non-corporate Commonwealth entity, or their delegate, gives effect to an arrangement or a grant, including decisions on establishing, varying and paying money. For example, a contract manager might decide that a milestone has been reached by the contractor and that payment is to be made to the contractor for reaching the milestone.
A person performing processing tasks in relation to an arrangement, without making any decisions about the arrangement, is not administering the arrangement.
To administer an arrangement a person should have a delegation or an authorisation of the power in:
(in relation to appropriations) Items administered by the entity on behalf of the Commonwealth. Amounts are appropriated in the annual Appropriation Bills to meet the total estimated expenses for administered items that are expected to be incurred in the upcoming financial year.
Administered items are appropriated separately by entity outcome, making clear what the funding is intended to achieve.
Annual appropriations also provide funding to Commonwealth entities for acquiring new administered assets, enhancing existing administered assets and discharging administered liabilities, through a specific Administered Assets and Liabilities appropriation.
(in relation to budgeting and reporting) Administered items are usually those managed by an entity on behalf of the Government. Entities do not have control over these items, which are normally related to activities governed by eligibility rules and conditions established by the legislation (for example, grants, subsidies and benefit payments). Items should be classified as either departmental or administered.
An instrument issued by the Governor-General that formally establishes matters dealt with by each Department of State and the legislation for which each Minister of State administering a Department of State is responsible.
A provision in the Annual Appropriation Acts that enables the Finance Minister to provide additional appropriation to entities for urgent and unforeseen expenditure in the current year.
A table in Budget Paper No. 4 that shows, by Commonwealth entity and company, by outcome and by source, the aggregate of estimated resources for the upcoming and past financial years.
Australian Government Employees Superannuation Trust. AGEST is the default superannuation scheme for persons covered by the Superannuation (Productivity Benefit) Act.
A sum of money owing to the Commonwealth that is ascertainable or certain (that is, known or able to be determined objectively), including debts due for payment and amounts that are not yet due for payment. For example, an amount owing to an entity from a supplier where an invoice has been issued, but payment is not due until a later date.
Annual funding, provided by annual Appropriation Acts, to Commonwealth entities to carry out Commonwealth outcomes and programmes and also for investment in assets or reduction in liabilities.
Statements prepared by the accountable authority of a Commonwealth entity in accordance with section 39 of the PGPA Act and section 16F of the PGPA Rule that acquits actual performance against planned performance described in the entity's corporate plan. The statements may be audited by the Auditor-General, and must be provided to the entity's minister and the Finance Minister.
The yearly report prepared by the accountable authority of a Commonwealth entity in accordance with section 39 of the PGPA Act or the directors of a Commonwealth company in accordance with section 97 of the PGPA Act. The annual report must be presented to parliament by the responsible minister. The report provides a broad statement of an entity or company's capability and performance, including results against targets published previously for the corresponding year in the portfolio budget statements. It allows accountable authorities and directors to report to their minister on the efficiency and effectiveness of the public administration for which the minister is ultimately responsible.
Application process refers to the steps that must be followed by potential grantees to be considered for a grant. It includes the forms, and written documentation, which contain eligibility and any assessment criteria to be satisfied.
(in relation to procurement) Any notice inviting potential suppliers to participate in a procurement including, but not limited to a request for tender, quote, expression of interest, application for inclusion on a multi-use list, request for information and request for proposal.
A law of the Australian Parliament that provides authority for Commonwealth entities to spend money from the Consolidated Revenue Fund (CRF) for a particular purpose. Entities may not spend money without an appropriation authorising that expenditure and, where necessary, other legislation authorising the specified purpose.
A module of CBMS that is used to assist in the management of appropriations and cash.
Approver (or decision maker) refers to the person or group of people who decide to approve a grant and could be a minister, ministerial panel, accountable authority, official or third party.
A person engaged under section 22, or a person who is engaged as an APS employee under section 72, of the Public Service Act 1999
An agreement or regime of some kind, including a contract, deed or understanding.
Assessment criteria are the specified principles or standards, against which applications will be judged. These criteria are also used to assess the merits of proposals and, in the case of a competitive grant opportunity, to determine application rankings.
Commonwealth entities and companies have periodic requirements for audits:
Audit committees provide independent advice and assurance to the accountable authority of an entity on the appropriateness of the entity's accountability and control framework, including to independently verify and safeguard the integrity of an entity's financial and performance reporting:
(in relation to procurement) The central web-based facility for the publication of Australian Government procurement information, including business opportunities, annual procurement plans and procurement contracts awarded.
Accounting standards are technical pronouncements that set out the required accounting measurements and disclosures for particular types of material transactions and events. The accounting requirements affect the preparation and presentation of an entity's financial statements.
(in relation to financial statements) For Commonwealth entities, accounting standards have the force of law through section 42(2)(a) of the PGPA Act. Further, accounting standards have the force of company law for entities preparing financial reports under that law.
(in relation to budgeting) Section 12(3)(a) of the Charter of Budget Honesty Act requires that the budget is based on accounting standards.
All bodies that comprise the public sector at the national level. This includes the Commonwealth, office holders, statutory corporations, Commonwealth companies and their subsidiary.
Before the establishment of CSC on 1 July 2011, ARIA was the Board responsible for the administration of the CSS, the PSS and the PSSAP. ARIA was also the Trustee for the CSS Fund, the PSS Fund and the PSSAP Fund.
(by an accountable authority) A means of devolving authority. There are two types of authorisation – express (provided in statute) and implied (not provided in statute).
Express authorisation provides authority to an official to exercise an express statutory power, and to act on that power in their own right.
Implied authorisation devolves authority without exercising an express statutory power of delegation (that is, the statutory power remains with the authorising official). Authorised officials only act for and on behalf of the person issuing the authorisation — they do not operate in their own right. In performing the specified task or function, they are required to think and act as though they were the person who gave the authorisation and comply with any conditions attached to the authorisation. The person who issued the authorisation continues to be responsible for the particular task or function as though they actually carried it out and remains accountable for any decisions and actions in exercising the relevant power.
(by the Finance Minister or Treasurer)Under the PGPA Act the Finance Minister or Treasurer may authorise an investment:
An authorisation under section 58 or 59 of the PGPA Act is a legislative instrument that is not disallowable.
The legal authority (whether express or implied) to exercise a power or function that can be given directly through legislation (for example, an accountable authorities' powers under section 23 of the PGPA Act, section 32B of the FFSP Act or other specific legislation) or through a delegation or authorisation.
Building Australia Fund
Relevant money received by an official of a Commonwealth entity or a minister that can be deposited in banks in Australia, or in the place where the money was received. Bankable money must be deposited in a bank account in accordance with the PGPA Rule and the entity's internal controls.
A minister in possession of bankable money (other than money related to the minister's official duties) must give that money to an official of a non‑corporate Commonwealth entity (usually the relevant department of state) as soon as is practicable.
(in relation to performance) Information collected before or at the start of an activity that provides a basis for planning and/or assessing subsequent progress and impact.
(in relation to appropriations) The core level of funding provided each year to an entity or company in annual Appropriation Acts to carry out ordinary business activities (not including funding for specific programmes or outcomes).
(in relation to estimates) The baseline budget estimates in CBMS for the four statements:Financial Performance; Financial Position; Statement of Cash Flows; and the Capital Budget Statement.
(in relation to performance management) The process of measuring and comparing the performance of an organisation's activities against those of similar organisations, to gain information and insights. This process will assist planning for future improvement. Related terms:monitoring and evaluation.
Beneficiaries include the individuals/organisations/communities which directly or indirectly receive a gain or benefit from the grant activity.
Includes any department, listed entity, executive agency, statutory agency, statutory authority, statutory office holder, company, association, cooperative, partnership, trust or departmental function with distinct branding.
A legal entity, other than a body politic or a natural person. It includes a statutory corporation, a company and an incorporated association.
A legal entity, other than a body politic or a natural person. It includes a statutory corporation, a company and an incorporated association.
The final stage in the budget decision-making process. Budget Cabinet is the full committee of cabinet members who make final decisions on Budget proposals that have been previously reviewed and endorsed by the ERC. Proposals that are approved by Budget Cabinet become measures and are included in the Budget.
Budget Papers accompany the Appropriation Bills and are supported by the portfolio budget statements. The Budget Papers are published to assist in explaining the Budget figures. The Budget Papers currently consist of:
The Nation-building Fund which makes funding payments for the creation or development of infrastructure in the areas of transport, communications, eligible broadband matters, energy and water.
A Cabinet Submission is a document that a minister or ministers present to Cabinet to obtain its agreement to a course of action. It is coordinated by portfolio departments and signed off by the relevant portfolio minister. Cabinet generally makes a decision on the proposals within the submission, and the decisions are published as a Cabinet Minute or Cabinet Memorandum.
The purchase of non-current assets necessary for Commonwealth entities and Commonwealth companies to achieve their objectives.
A measure that affects net capital investment, defined as the change in non-financial assets.
The ICT system used to manage the flow of financial information between Finance and Commonwealth entities to facilitate cash and appropriations management, the preparation of budget documentation and financial reporting.
Refers to the Department of the Prime Minister and Cabinet, the Department of the Treasury, and the Department of Finance.
(in relation to cost recovery) The payments to Commonwealth entities by other Commonwealth entities, individuals, and non-government organisations for goods and services and/or regulation, provided to them. The Commonwealth may direct entities to charge for some or all of their activities in a specific manner and/or apply a specific policy framework, such as cost recovery.
Provides a legislative framework for the conduct and reporting of fiscal policy, government decisions and Commonwealth financial statements. The Charter aims to improve the discipline, transparency and accountability applying to the conduct of fiscal policy.
Refers to the requirement under the Superannuation Guarantee (Administration) Act 1992 for employers to offer eligible employees choice of a complying superannuation fund or retirement savings account to receive their superannuation guarantee contributions.
Closed non-competitive processes – for example, where applicants are invited by the entity to submit applications for a particular grant and the applications or proposals are not assessed against other applicants’ submissions but assessed individually against the selection criteria. Better practice closed non-competitive processes either name the eligible applicants and/or provide information on how eligibility was determined.
The workers' compensation insurer for the Commonwealth, providing safety, rehabilitation and compensation services to Commonwealth employees (and employees of the ACT Government) under the auspices of the safety, rehabilitation and compensation services to Commonwealth employees.
The Commonwealth's self-managed insurance fund responsible for protecting Commonwealth entities against insurable losses and promoting better practice risk management to improve policy formulation and the delivery of government activities and services. All Commonwealth entities within the general government sector are insured through Comcover. Entities nominally purchase cover for all normally insurable risks, with the exception of workers' compensation, which remains the responsibility of Comcare.
A generic term for a body of persons that is authoritatively charged with particular activities. This document primarily uses the term in a technical sense to describe a statutory authority that comprises more than one person. However, the term also occurs in the names of certain entities that are led by a single office holder, such as the Australian Public Service Commission.
A generic term for a body of persons that is authoritatively charged with particular activities. This document primarily uses the term in a technical sense to describe a statutory authority that comprises more than one person. However, the term also occurs in the names of certain entities that are led by a single office holder, such as the Australian Public Service Commission.
A generic term for a body of persons that is authorised to perform particular activities. This document primarily uses the term in a technical sense to describe a statutory authority that comprises more than one person. However, the term also occurs in the names of certain entities that are led by a single office holder, such as the Australian Public Service Commission.
An activity or decision of a non-corporate Commonwealth entity (NCE) that results in an obligation on the Commonwealth to pay relevant money. This may involve entering into an arrangement. Commitments include obligations that are contingent upon certain events occurring, such as indemnities, guarantees and warranties.
Accountable authorities of NCEs may approve commitments, or delegate or authorise in writing another person to do so.
The legal entity of the Commonwealth of Australia, created by the Australian Constitution. The term may also be used to differentiate the Australian Government from state and territory governments.
A Corporations Act company that the Commonwealth controls; however, it does not include a company that is a subsidiary of a Commonwealth company, a subsidiary of a corporate Commonwealth entity or a subsidiary of the Future Fund Board of Guardians.
A Corporations Act company that the Commonwealth controls; however, it does not include a company that is a subsidiary of a Commonwealth company, a subsidiary of a corporate Commonwealth entity or a subsidiary of the Future Fund Board of Guardians.
A company established under the Corporations Act 2001 that the Commonwealth controls. A Commonwealth company is legally and financially separate from the Commonwealth.
The Corporations Act is the primary regulatory framework for these companies. Chapter 3 of the PGPA Act sets out additional requirements that Commonwealth companies have to comply with in order to meet appropriate standards of public sector accountability.
The Commonwealth controls a company if, and only if, it (section 89(2) of the PGPA Act):
Commonwealth companies include:
A Commonwealth company does not include a company that is a subsidiary of:
Commonwealth companies are not Commonwealth entities for the purposes of the PGPA Act. The PGPA Act duties that apply to accountable authorities and officials of Commonwealth entities do not apply to directors and officers of Commonwealth companies.
The Flipchart of PGPA bodies lists all Commonwealth companies by portfolio.
A credit card issued to a Commonwealth entity to enable the entity to obtain cash, goods or services on credit. Credit cards and credit vouchers issued to entities are different from personal credit cards or vouchers, as they do not provide the holder with a revolving line of credit. Money borrowed through the use of a credit card or credit voucher must be paid in full within a specific timeframe.
A Commonwealth credit card number is subject to the same requirements as a Commonwealth credit card (for example, in relation to security of storage).
A non-corporate Commonwealth entity or a corporate Commonwealth entity under the PGPA Act, further defined as a Department of State, a Parliamentary Department, a listed entity, or a body corporate established by a Commonwealth law or listed in the PGPA Rule.
A non-corporate Commonwealth entity or a corporate Commonwealth entity under the PGPA Act, further defined as a Department of State, a Parliamentary Department, a listed entity, or a body corporate established by a Commonwealth law or listed in the PGPA Rule.
A Department of State or:
a parliamentary department or
a listed entity or
a body corporate that is:
established by a law of the Commonwealth or
established under a law of the Commonwealth (other than a Commonwealth company) and is prescribed by an Act or the PGPA Rule to be a Commonwealth entity.
The definition of Commonwealth entities in the PGPA Act does not cover:
bodies corporate that are established under, but not by, a law of the Commonwealth (such as Commonwealth companies)
the High Court and the Future Fund Board of Guardians.
All premises owned or leased by a Commonwealth entity, or premises otherwise occupied by or in the care, custody or control of the Commonwealth. This includes land, buildings, aircraft, vessels, vehicles, containers or receptacles.
A legislative instrument issued by the Finance Minister under section 105B of the PGPA Act, which establish the framework under which entities govern and undertake their own procurement. It also includes good practice guidance. All officials performing duties in relation to procurement must act in accordance with the CPRs.
A body corporate that has its status conferred by the Corporations Act 2001.
A body corporate that has its status conferred by the Corporations Act 2001.
ComSuper was the Commonwealth Superannuation Administrator, until merged with Commonwealth Superannuation Corporation on 1 July 2015.
The annual, end-of-year financial statements for the Commonwealth public sector as required by section 48 of the PGPA Act, and prepared in accordance with Australian Accounting Standards and audited by the Australian National Audit Office. They present the consolidated results for the Commonwealth as well as disaggregated information on the various sectors of government.
A fund established by section 81 of the Constitution, comprising money raised or received by the Commonwealth.
A fund established by section 81 of the Constitution, comprising money raised or received by the Commonwealth.
A fund established by section 81 of the Constitution, consists of all revenues and moneys raised or received by the executive government of the Commonwealth. The CRF is self-executing in nature, which means that all money received by the Commonwealth automatically forms part of the CRF.
Refers to competition in public sector functions to improve both efficiency and effectiveness in the delivery of government objectives.
(in relation to budgeting) A provision within the Budget and forward estimates for items that either cannot or should not (generally for reasons of commercial sensitivity) be allocated to specific programmes at the time of publication. For example, allowance for the expected receipts from the sale of assets, or measures that require negotiation by the government where publication of estimates would adversely affect the government's negotiating position. The amount of the contingency reserve is not a general policy reserve, and it is not appropriated.
(in relation to financial statements/reporting) The full definition of both a contingent asset and a contingent liability are contained in AASB 137 Provisions, Contingent Liabilities and Contingent Assets.
Generally, contingencies are an obligation that arises from a past event but is not recognised (e.g. cannot yet be recorded as a liability). Common examples of contingent liabilities in the Commonwealth are indemnities, guarantees, warranties, legal proceedings and disputes, and uncalled capital.
(in relation to procurement) The active management throughout the life of a procurement contract or other contract to ensure a contractor's performance is satisfactory, stakeholders are well informed and all contract requirements are met. It includes managing the contractual relationships and ensuring that deliverables are provided to the required standard, within the agreed timeframe and achieve value for money.
(in relation to procurement) Goods and/or services that the Australian Government has decided to procure at the whole-of-government level. Non-corporate Commonwealth entities must use coordinated procurement arrangements where they exist, unless an exemption has been granted.
Corporate Commonwealth entities and Commonwealth companies are exempt unless a rule or Government Policy Order (GPO) has been issued by the Finance Minister.
A CCE is a body corporate that has a separate legal personality from the Commonwealth, and can act in its own right exercising certain legal rights such as entering into contracts and owning property. Most CCEs are financially separate from the Commonwealth.
CCEs are established through legislation or legislative instrument, and are subject to the PGPA Act, which further clarifies the financial and corporate governance arrangements of these bodies. Some provisions of the PGPA Act applies to CCEs differently to non-corporate Commonwealth entities because of their different legal status, for example the provisions relating to appropriations banking, investments, and use of indemnities.
The Flipchart of PGPA bodies lists all CCEs by portfolio.
The process by which entities are directed and controlled. It is generally understood to encompass authority, accountability, stewardship, leadership, direction and control
The primary strategic planning document of a Commonwealth entity or company, setting out the objectives, capabilities and intended results over a four-year period, in accordance with its stated purposes. The plan should provide a clear line of sight with the relevant annual performance statement, portfolio budget statement and annual report:
accountable authorities of Commonwealth entities must prepare a corporate plan in accordance with section 35 of the PGPA Act and section 16E of the PGPA Rule
directors of Commonwealth companies must prepare a corporate plan in accordance with section 95 of the PGPA Act and section 27A of the PGPA Rule.
A body corporate that is incorporated, or taken to be incorporated, under the Corporations Act 2001.
Charging the non-government sector some or all of the costs of a specific government activity. This may include the provision of goods, services or regulation, or a combination of these. The government must direct that the activity be cost recovered, there must be a statutory basis to charge the non-government sector and alignment between expenses and revenue.
(in relation to budgeting) An assessment of the financial impact of a proposed policy change. Commonwealth entities are required to provide costings for any new policy proposal and seek Cabinet endorsement. Finance must agree to these costings before they can be incorporated into a submission for Cabinet.
Commonwealth Superannuation Corporation. CSC was established on 1 July 2011 by merging ARIA, the Military Superannuation and Benefits Board and the Defence Force Retirement and Death Benefits Authority. CSC is responsible for managing the main Commonwealth civilian and military superannuation schemes. From 1 July 2015 they became responsible for the Administrations Services previously performed by ComSuper. The relevant schemes are:
Commonwealth Superannuation Scheme. The CSS provides for a combination of defined benefits and accumulation benefits. The defined benefit in the CSS is usually a pension based on the length of membership, age and salary at retirement. The accumulation benefits include the 3% employer productivity contribution, if applicable, and the employee component. The CSS was closed to new members from 1 July 1990.
When a person:
holds the money by way of a petty cash advance, change float or other advance or
has received the money, but has not yet dealt with it as required under section 55 of the PGPA Act (which is about banking of relevant money).
When:
a person has taken delivery of relevant property and has not returned it to another person entitled to receive the property on behalf of the Commonwealth and
the person has signed a written acknowledgement at the time of delivery, that the property was delivered on the express condition that the person would at all times take strict care of the property.
A sum of money owing to the Commonwealth which is known and not being disputed, due for payment now and legally capable of being recovered in a legal action for debt. For example, an official who has been overpaid a salary, or a person who has been overpaid a social security payment, may owe a debt to the Commonwealth as a result of the overpayment. Accountable authorities of non-corporate Commonwealth entities are required to pursue amounts owing to the Commonwealth in accordance with section 11 of the PGPA Rule.
In relation to the Commonwealth Scheme for Compensation for Detriment caused by Defective Administration (CDDA Scheme), defined as:
a specific and unreasonable lapse in complying with existing administrative procedures that would normally have applied to the claimant's circumstances or
an unreasonable failure to institute appropriate administrative procedures to cover a claimant's circumstances or
giving advice to (or for) a claimant that was, in all circumstances, incorrect or ambiguous or
an unreasonable failure to give to (or for) a claimant, the proper advice that was within the official's power and knowledge to give (or was reasonably capable of being obtained by the official to give).
A scheme that provides a retirement benefit usually based on salary and/or a pre-determined formula for calculating that benefit. Unlike an accumulation scheme, the retirement benefit and method of calculation is known to the member at all times.
(in relation to the PGPA Act) An official who has been given statutory authority, by an instrument of delegation, to make particular decisions or perform particular functions. A delegate is constrained by any limitations expressed in the delegation instrument.
(in relation to the PGPA Act) A statutory procedure permitting an official to entrust their statutory authority to another official (the delegate). Delegates personally hold and possess the powers and responsibilities that they have been given and are personally accountable for their decisions and actions in the exercise or performance of the powers and responsibilities that they have been given. A delegation is distinct from an authorisation.
The Department of Finance acknowledges the Traditional Owners and Custodians throughout Australia and their continuing connection to land, water and community.