RMG-214 has been enhanced in line with Finance's digital-first approach to guidance. There have been no updates to the content or policy changes. For any questions, please contact PGPA@finance.gov.au.
RMGs are guidance documents. The purpose of an RMG is to support PGPA Act entities and companies in meeting the requirements of the PGPA framework. As guides, RMGs explain the legislation and policy requirements in plain English. RMGs support accountable authorities and officials to apply the intent of the framework. It is an official’s responsibility to ensure that Finance guidance is monitored regularly for updates, including changes in policy/requirements.
Audience
This guide is relevant to officials in non-corporate Commonwealth entities and corporate Commonwealth entities who have compliance responsibilities under the finance law relating to the governance, performance and resource management of their entity.
This guide is not relevant to Commonwealth companies, as Commonwealth companies are not Commonwealth entities for the purposes of the PGPA Act.
Key points
The purpose of this guide is to provide information to Commonwealth entities on how to report significant non-compliance with the finance law under section 19 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act).
The PGPA Act requires, among other things, that accountable authorities of Commonwealth entities notify their responsible Minister, as soon as practicable, of any significant issue that has affected the entity or any of its subsidiaries (section 19). A significant issue, under section 19 of the PGPA Act, includes significant non-compliance with the finance law.
The Finance Minister requires that accountable authorities also notify the Finance Minister of instances of significant non-compliance with the finance law reported to their responsible Minister.
This guide assists entities in reporting significant non-compliance by providing guidance on:
what constitutes significant non-compliance with finance law
the need for accountable authorities to notify their responsible Minister, and the Finance Minister as soon as practicable, of any significant non-compliance with the finance law
the associated annual reporting requirements.
To support accountable authorities in reporting significant non-compliance with the finance law, this guidance:
- clarifies that significant non-compliance involving breaches of the general duties of officials (sections 25 to 29 of the PGPA Act) should only be reported where there is a connection to the management of public resources (defined in section 8 of the PGPA Act)
- clarifies what constitutes ‘significant’ non-compliance with the finance law. It includes a decision-making flow chart, and illustrative case studies
- provides further guidance on the process for reporting significant non-compliance, including a model letter to the Finance Minister (found under What should be reported?)
- includes requirements and suggestions for reporting significant non-compliance with the finance law in entities’ annual reports.
Resources
Related resources including links to the 'Significant' non-compliance with the Finance law flow chart, related guidance, glossary terms and relevant sections of the PGPA Act are available in the right-hand menu.
Key information to assist you
