Case Study 1: Arrangement for a person outside the Commonwealth to administer a Commonwealth grants program
In this case, the relevant entity needs to consider:
- Whether it is necessary for a person outside the Commonwealth to handle the other Consolidated Revenue Fund (CRF) money and, if so, whether the person is the right person to do so.
- Whether the terms and conditions in the proposed other CRF money arrangement meet the requirements in section 29 of the PGPA Rule.
- Whether any other terms and conditions are necessary in the contract. For example:
- the information the person will need to provide to meet its requirements under the Commonwealth Grants Rule and Guidance (such as the requirement to publish information on individual grants no later than 14 working days after the grant takes effect), or other requirements to ensure the person acts in accordance with the law, government policy, applicable grants agreements and internal controls and guidelines issued by the accountable authority.
- The appropriation from which the grants payments will be made, most likely an administered appropriation managed by the non-corporate Commonwealth entities (NCE).
- The legal authority to enter into the other CRF arrangement. For an arrangement to administer a grants program, the authority is most likely to come from section 32B of the Financial Framework (Supplementary Powers) Act 1997, which provides the power to enter into, vary or administer a financial grant arrangement if the grants program it is specified in Schedule 1AA or 1AB to the Financial Framework (Supplementary Powers) Regulations 1997. The Schedules may list a specific arrangement or grant of financial assistance, a class, or a program under which a grant is made.
- If a minister will approve grants, how to ensure the minister will meet the requirements in section 71 of the PGPA Act and the Commonwealth Grants Rules and Guidance.
Case Study 2: Arrangement for a person outside the Commonwealth to collect fees for attendees at a function
A function is organised where attendees will pay an attendance fee. A person outside the Commonwealth is required to collect the fees paid by attendees, deduct their fee for this service from the amount collected from attendees, and remit the balance to the NCE. In this case, the relevant entity needs to consider:
- Whether it is necessary for a person outside the Commonwealth to handle the other CRF money and, if so, whether the person is the right person to do so.
- Whether the terms and conditions in the proposed other CRF money arrangement meet the requirements in section 29 of the PGPA Rule.
- Whether any other terms and conditions are necessary in the contract. For example:
- the NCE will require reports on the total amount collected by the person from the attendees, and the amount deducted to pay the person’s fees to enable the correct appropriation to be debited and credited as appropriate, but that might be all as this type of arrangement will generally be a relatively low-risk, uncomplicated arrangement, the terms and conditions may not need more than the mandatory requirements in the PGPA Rule.
- The relevant appropriation, as this arrangement relates to the ordinary services of government, the appropriation to be debited is likely to be the departmental appropriation of the NCE. The departmental appropriation may also be able to be credited by the amount of fees collected (section 74 of the PGPA Act and section 27 of the PGPA Rule).
- The legal authority to enter into the other CRF arrangement. As this arrangement relates to the ordinary services of government, section 23(1) of the PGPA Act is likely to provide the authority to enter into the arrangement.
Case Study 3: Sale of property by agent
An agent sells Commonwealth property on behalf of the Commonwealth and receives the purchase price from which they deduct their service fee and remit the remaining balance of the amount received to the Commonwealth. In this case the entity’s departmental appropriation could support the payment by the agent.
- In this case the departmental appropriation could be increased by the receipt (section 74 of the PGPA Act and section 27 of the PGPA Rule), and any subsequent payments (such as a fee for service to the property manager) could be made by the entity from the departmental appropriation.
Case Study 4: Payments by agent
An organisation manages payments of Commonwealth funding to recipients on behalf of the Commonwealth (such as scholarship payments or a grant program).
- In this case the scholarship or grant payments could be supported by the Commonwealth entity’s administered appropriation that covered the scholarship or grant program.
