Commonwealth entities should undertake a process of active monitoring and evaluation throughout the lifecycle of the investment (compliant with the requirements of the Commonwealth Resource Management Framework and PGPA Act).
Commonwealth entities are responsible for developing the investment proposal and steering it throughout the necessary processes. This extends to the implementation, management and reporting requirements related with the investment decision over the lifecycle of the investment.
All stages of the investment lifecycle are equally important. Longer-term implications should be considered to ensure governance is appropriate, benefits are realised, costs are managed (including whole-of-life investment costs) and risks are managed.
To ensure effective management of a proposal where financial instruments are used to facilitate delivery of a project, Commonwealth entities are encouraged to establish appropriate governance arrangements for oversight and monitoring of the compliance with the arrangements under the relevant financial instrument.
Commonwealth investments are encouraged to be time limited to the delivery of outcomes, where the exit represents a net benefit to Australians, or where there exists a policy reason for the Government to exit the investment.
