The Public Governance, Performance and Accountability Act 2013 requires accountable authorities to produce, for each reporting period:
- annual performance statements (section 39)
- annual financial statements (section 42)
- an annual report (section 46).
MoG changes may result from:
- a change to the Administrative Arrangement Orders (AAO), which set out the matters dealt with by entities, and the legislation administered by ministers of state
- a decision of the Prime Minister or Cabinet, regarding a movement of responsibilities and functions between entities, where the change is not a change to the AAO.
The Public Governance, Performance and Accountability Rule 2014 (PGPA Rule) in sections 17A–17J set out the special reporting requirements that apply where an entity has ceased to exist, or functions have been transferred as a result of a MoG change.
These reporting arrangements are designed to ensure that:
- all accountability obligations are met following MoG changes
- there is no duplication of reporting of operations impacted by these changes, including reporting relating to key management personnel.
Section 17K of the PGPA Rule provides for the Minister for Finance (Finance Minister) to determine that a transfer of functions between entities is to be taken as not to have occurred for annual reporting purposes.
Should a situation arise, as a result of a MoG change, that does not comfortably fit into any of the scenarios addressed at sections 17A–17K of the PGPA Rule, the affected entities should contact PGPA.
Example 1: MoG scenario where an entity should contact Finance.
If the governance structure or the name of an entity is changed as a result of a MoG change, but its functions remain unchanged, the entity should discuss the appropriate reporting arrangements with Finance in the first instance.
There is a need for the Parliament to be informed about the financial and non-financial performance of the old entity in relation to the functions performed up until the entity ceased to exist. Therefore, while the PGPA Rule provides discretion to the Finance Minister to nominate an accountable authority of an entity, it would ordinarily be expected that the Finance Minister would nominate an accountable authority to prepare the necessary reports and information for the old entity.
The implementation of MoG changes necessarily involves consultation between impacted entities and Finance. Where these consultations identify the need for the Finance Minister to make a nomination, Finance will work with relevant entities to request that the Finance Minister, or delegate, make the required nomination.
For more information on these requirements, or the process of seeking a determination or nomination, please contact PGPA.
