First 72 Hours

Affected entities are to clarify the scope of functions and programs to be transferred. Where the scope of the MoG change is unclear, entities should seek advice from the Department of the Prime Minister and Cabinet (PM&C).

Transferring entities are to provide background information to receiving entities on the programs/functions to be transferred. This can include soft copies of the most recent portfolio budget statements/portfolio additional estimates statements, annual reports, corporate plans, organisational structures/charts, affected branch and team names, program descriptions, and internal budget allocations.

Consideration and appointment of lead contacts should be completed within 72 hours of the MoG change being announced. These lead contacts will typically be Senior Executive Service (SES) level or appropriate senior officers from the affected entities’ corporate or enabling services areas.

For large or complex MoG changes, a joint, multi-disciplinary steering committee should be established. The steering committee should be comprised of the lead contacts as well as relevant senior officers from all affected entities, and may be supported by working groups, taskforces and/or a secretariat. 

The steering committee should establish a list of key operational contacts within all affected entities to assist with implementation, such as contacts from the finance, human resources (HR), information and communications technology (ICT), legal, parliamentary, communications, security, records and relevant program/policy areas. Entities should also identify key contacts in shared services or other providers whose operations may be impacted by the MoG change.

A MoG change may impact entities’ duties and responsibilities under legislation. It is important that entities identify all relevant legislation (including legislation that contains appropriations) and associated delegations early and assess whether such legislation and delegations need to be amended in order to give effect to the MoG change.

Where available, transferring entities should provide an extract of their legislation database (or equivalent) to receiving entities to assist in the assessment of legal impacts. Affected entities may also be able to request a list of legislation from the Office of Parliamentary Counsel (OPC).

Affected entities may also need to contact the Attorney-General’s Department where they intend to rely on the Acts Interpretation Act 1901 to reflect changes to the names of entities, departments or Ministers in their legislation. See Name and title changes.

Affected entities must review their outcome statements within the first 72 hours of the MoG change being announced to determine if changes are required.

Receiving entities may need to seek legal advice where it is unclear whether the outcome statement(s) will support the functions being transferred. 

For more information, see Governance and Financial Management issues.

Both transferring and receiving entities should review their instruments of delegation under all applicable legislation to ensure continuity of service and effective change management. For example, entities should consider any delegations made under the PS Act and its subordinate legislation, the Maternity Leave (Commonwealth Employees) Act 1973, the Long Service Leave (Commonwealth Employees) Act 1976, enterprise agreements and any internal policies.

The accountable authority of a non-corporate Commonwealth entity (NCE) can delegate their powers under the Public Governance, Performance and Accountability Act (PGPA Act) and the Public Governance, Performance and Accountability Rule 2014 (PGPA Rule) to employees in their entity, and employees of other NCEs, so that they can undertake resource management activities on behalf of the entity.

Receiving entities should review their delegation instruments and accountable authority instructions (AAIs) to ensure appropriate arrangements are in place and that they cover all relevant matters and legislation to be administered by that entity, including where functions are delivered by a third party such as a shared service provider.

If a new entity is created, consideration should be given to what delegations will be required to be in place at the time of establishment. Similarly, employees in an entity that is transferring functions should review their delegations to ensure that they no longer deal with matters that have transferred to another entity.

New instruments of delegation and authorisations should be made on the MoG change date of effect or as soon as practicable following the date of effect but may be drafted earlier where MoG changes are known in advance of the date of effect.

In addition, if, because of MoG changes, an entity gets a new Minister or accountable authority, it is good practice to provide them with the opportunity to reconsider arrangements for delegated decision-making and issue new instruments of delegation.

Employees, board members and other relevant officers (and similar individuals in other entities who are assisting with the transfer of functions) should be advised of relevant delegations of powers. This is important for all employees, board members and other relevant officers, including those that may be based in other states/territories or at Australia’s international posts.

There can be timing differences between the MoG change date of effect and the date of transfer of employees and appropriations. Depending on the timing of transfers of entity functions and appropriations, entities may need to put in place interim arrangements under the PGPA Act (refer to sections 20A and 110 of the PGPA Act) or other relevant legislation to make adequate provision for transferring functions.

For example, the accountable authority of the receiving entity may provide delegations to employees in the transferring entity (or employees in a third entity that is involved in service delivery) to enable them to continue to administer functions, until appropriations and employees are transferred from the transferring entity.

Where a receiving entity is relying on a transferring entity to continue to undertake transferred functions, it is prudent they do so with the authority of the receiving entity's accountable authority for future payments. This could be done via email using words similar to below:

I [name] as accountable authority of [receiving entity] authorise, to the extent that such authority is necessary, including from XX XX 20XX (date of the MoG change date of effect), the relevant officials of the [transferring entity] to continue to make payments, consistent with program obligations and other relevant policy decisions, on behalf of the [receiving entity] until the transfer of [description of program or function] between our entities is completed.

There may be value in a receiving entity including relevant parts of the AAIs of the transferring entity in relation to functions that are transferred.

Accountable authorities may choose to apply the AAIs of a transferring entity until the accountable authority of a receiving entity is able to issue AAIs specifically for the transferred functions to their entity.

For large and/or complex MoG changes affecting many entities, Finance will contact the affected entities’ Chief Financial Officers (CFOs) once the MoG changes are announced or known to organise a meeting with affected entities’ CFOs and lead contacts and discuss critical timelines and resource management issues. Subject matter experts and representatives from central entities, such as the APSC, will attend where required to address entities’ queries and/or concerns.

For other MoG changes, affected entities should establish contact with Finance, the APSC and other entities as appropriate to their respective areas of responsibility, for timelines to be set.

For example, Finance can assist entities with setting timelines for the transfer of appropriations, and the APSC for the movement of employees.

Transferring entities should provide receiving entities with a list of secondary and related bodies that will be affected by the MoG change. This list of secondary and related bodies can be sourced from the entity’s records or the Australian Government Organisations Register. 

See Due Diligence and Change Management and People Management.

Entities should identify those areas of operations which may be immediately impacted by a change in the legal status of an entity.

For example, these operations could include invoicing arrangements (where the entity’s Australian Business Number needs to change), credit cards, financial delegations, funding agreements, travel arrangements, memoranda of understanding (MOU), service level agreements and contracts.

Within 72 hours of the MoG changes being announced, transferring entities will be required to provide a download of their financial management information system (FMIS) to receiving entities for the specific function(s) they are transferring and associated corporate functions. The download should include details of the available estimates and the latest monthly actuals for the functions being transferred at the cost centre/profit centre/fund centre/internal order level, as well as a chart of accounts. Transferring entities should also provide a download of the annual estimates for the outcomes/programs being transferred from the Central Budget Management System (CBMS).

For MoG changes that transfer functions which are not entire outcomes or programs, it may be difficult for the transferring entity to identify transactions relating to the transferring function and associated corporate functions. While it may be difficult, transferring entities should provide as much information as soon as possible, caveated where necessary to say that further analysis is required, prior to providing final information.

Where a new entity is being established, funding may either be transferred from an existing entity or the new entity may need new funding.

The portfolio department of the affected portfolio should contact Finance for further advice on funding arrangements for the new entity. 

For further information, see MoG Scenarios - New APS Entity.

Entities should develop and issue joint, consistent advice to all employees advising them of the MoG change and how it impacts the entities. Care is needed to ensure commitments are not given to employees that cannot be fulfilled.

Entities may also consider establishing a dedicated intranet site and email address for queries from employees on the MoG change.