The PGPA Act and PGPA Rule Compliance Summary
This table provides a summary of compliance reporting requirements under the PGPA Act and Rules as at January 2015. This is designed to be used as a guide for entities and may provide the basis of internal compliance checklists. This table does not interpret the legal obligations or requirements of the PGPA Act or Rules and should only be used for compliance reporting purposes.
Where a section has not been included in the table, no compliance element is included in that section.
Accountable AuthoritiesSection / Title / Requirement / Reportable Instances / Applicable
Section 15 / Duty to govern the Commonwealth entity / (1) The accountable authority of a Commonwealth entity must govern the entity in a way that:
(a) promotes the proper use and management of public resources for which the authority is responsible; and
(b) promotes the achievement of the purposes of the entity; and
(c) promotes the financial sustainability of the entity.
(2) In making decisions for the purposes of subsection(1), the accountable authority must take into account the effect of those decisions on public resources generally. / Non-compliance is reportable where an accountable authority does not comply with his/her duty to govern the entity in a way that promotes the proper use and management of public resources, the achievement of the purposes of the entity; or the financial sustainability of the entity. / Corporate and non-corporate
Section 16 / Duty to establish and maintain systems relating to risk and control / The accountable authority of a Commonwealth entity must establish and maintain:
(a) an appropriate system of risk oversight and management for the entity; and
(b) an appropriate system of internal control for the entity;
including by implementing measures directed at ensuring officials of the entity comply with the finance law. / Non-compliance is reportable where an accountable authority does not comply with his/her duty to establish and maintain systems of risk oversight and management, and internal control for the entity. / Corporate and non-corporate
Section 17 / Duty to encourage cooperation with others / The accountable authority of a Commonwealth entity must encourage officials of the entity to cooperate with others to achieve common objectives, where practicable. / Non-compliance is reportable where an accountable authority does not comply with his/her duty to encourage officials of the entity to cooperate with others to achieve common objectives where practicable. / Corporate and non-corporate
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January 2015
The PGPA Act and PGPA Rule Compliance Summary
Section / Title / Requirement / Reportable Instances / ApplicableSection 18 / Duty in relation to requirements imposed on others / When imposing requirements on others in relation to the use or management of public resources for which the accountable authority of a Commonwealth entity is responsible, the accountable authority must take into account:
(a) the risks associated with that use or management; and
(b) the effects of imposing those requirements. / Non-compliance is reportable where an accountable authority does not comply with his/her duty to take into account the matters of section 18 when imposing requirements on others in relation to the use or management of public resources. / Corporate and non-corporate
Section 19 / Duty to keep responsible Minister and Finance Minister informed / (1) The accountable authority of a Commonwealth entity must do the following:
(a) keep the responsible Minister informed of the activities of the entity and any subsidiaries of the entity;
(b) give the responsible Minister or the Finance Minister any reports, documents and information in relation to those activities as that Minister requires;
(c) notify the responsible Minister as soon as practicable after the accountable authority makes a significant decision in relation to the entity or any of its subsidiaries;
(d) give the responsible Minister reasonable notice if the accountable authority becomes aware of any significant issue that may affect the entity or any of its subsidiaries;
(e) notify the responsible Minister as soon as practicable after the accountable authority becomes aware of any significant issue that has affected the entity or any of its subsidiaries.
(2) However, for a Commonwealth entity that is related to a court or tribunal, subsection(1) applies only to activities, reports, documents, information or notifications about matters of an administrative nature.
(3) Without limiting subsection(1), the rules may prescribe matters to be taken into account in deciding whether a decision or issue is significant.
(4) The accountable authority must comply with a requirement under paragraph(1)(b) within the time limits set by the Minister concerned.
Relationship with other laws and powers
(4A) If a Commonwealth entity has enabling legislation, then subsection(1) applies only to the extent that compliance with that subsection is not inconsistent with compliance with that legislation.
(4B) This section is subject to any Commonwealth law that prohibits disclosure of particular information.
(5) This section does not limit any other power that a Minister has to require information from a Commonwealth entity. / Non-compliance is reportable where an accountable authority does not comply with his/her duty to provide the information to the responsible Minister or the Finance Minister as required under section 19 and within the time limits set by the Minister concerned. / Corporate and non-corporate
Section 21 / Application of government policy - Noncorporate Commonwealth entities / The accountable authority of a noncorporate Commonwealth entity must govern the entity in accordance with paragraph 15(1)(a) in a way that is not inconsistent with the policies of the Australian Government. / Non-compliance is reportable by the accountable authority of a noncorporate Commonwealth entity when there is a use of public resources which is inconsistent with a policy of the Australian Government.
This is not an emphatic test, and “not inconsistent” is a lower threshold than consistent with government policies. / Non-corporate only
Section 22 / Application of government policy - Corporate Commonwealth entities / (1) The Finance Minister may make an order (a government policy order) that specifies a policy of the Australian Government that is to apply in relation to one or more corporate Commonwealth entities.
(2) Before making a government policy order that applies in relation to a corporate Commonwealth entity, the Finance Minister must be satisfied that the Minister responsible for the policy has consulted the entity on the application of the policy.
(3) If a government policy order applies in relation to a corporate Commonwealth entity, the accountable authority of the entity must ensure that the order is complied with:
(a) in relation to the entity; and
(b) in relation to any subsidiary of the entity, so far as practicable.
(4) A government policy order is a legislative instrument, but section42 (disallowance) of the Legislative Instruments Act 2003 does not apply to it. / Non-compliance is reportable by the accountable authority of a corporate Commonwealth entity when a general policy order has been issued for the entity and it does not comply with the order. / Corporate only
Section 23 / Power in relation to arrangements and commitments / (1) The accountable authority of a noncorporate Commonwealth entity may, on behalf of the Commonwealth:
(a) enter into arrangements relating to the affairs of the entity; and
(b) vary and administer those arrangements.
(2) An arrangement includes a contract, agreement, deed or understanding.
(3) The accountable authority of a noncorporate Commonwealth entity may, on behalf of the Commonwealth, approve a commitment of relevant money for which the accountable authority is responsible. / Non-compliance is reportable by the accountable authority of a non-corporate Commonwealth entity where an official enters into, varies or administers an arrangement, without the appropriate delegation or authorisation under section 23 (1). / Non-corporate only
Although there is not a legal requirement to approve a commitment of relevant money, non-compliance is reportable against section 23(3) where an official approves a commitment which is inconsistent with a delegation, authorisation, direction or instruction (such as Accountable Authority Instructions).
This will assist in providing a continuation of comparable data from previous reporting periods for the independent review and will provide assurance to Ministers and the Parliament, that commitments of relevant money are being appropriately managed.
Section 24 / Power to establish advisory boards / (1) The accountable authority of a noncorporate Commonwealth entity may establish an advisory board to assist the authority in governing the entity.
(2) An advisory board for a noncorporate Commonwealth entity may include individuals who are not officials of the entity. / Non-compliance is not reportable for the purposes of the compliance report. This is a discretionary power for an accountable authority to establish advisory boards. / Non-corporate only
Officials
Section 25 / Duty of care and diligence / (1) An official of a Commonwealth entity must exercise his or her powers, perform his or her functions and discharge his or her duties with the degree of care and diligence that a reasonable person would exercise if the person:
(a) were an official of a Commonwealth entity in the Commonwealth entity’s circumstances; and
(b) occupied the position held by, and had the same responsibilities within the Commonwealth entity as, the official.
(2) The rules may prescribe circumstances in which the requirements of subsection(1) are taken to be met. / Non-compliance is reportable where an official has not exercised care and diligence in relation to the use of public resources.
Examples of not exercising care and diligence could be:
· not taking reasonable steps to inform yourself about an issues significance before making a decision
· knowingly performing actions that are inconsistent with statutory obligations
· undertaking an unfamiliar task without checking legislative requirements, related guidance and the entity’s operational guidelines.
Separate disclosure
· Instances of non-compliance relating to credit card misuse, should be separately disclosed in the entity’s Compliance Report. / Corporate and non-corporate
Section 26 / Duty to act honestly, in good faith and for proper purpose / An official of a Commonwealth entity must exercise his or her powers, perform his or her functions and discharge his or her duties honestly, in good faith and for a proper purpose. / Non-compliance is reportable where an official has not acted honestly, in good faith or for a proper purpose, in relation to the use of public resources.
Examples of not acting in good faith and for a proper purpose could be:
· providing information to a person in a way that intentionally deceives or misleads them
· undertaking an activity that is outside the powers and functions of the entity
· purporting to have authority to approve something when you knowingly do not
· withholding relevant information with the intent to influence the decision of a delegate.
Separate disclosure
· Instances of non-compliance relating to credit card misuse, should be separately disclosed in the entity’s Compliance Report
· Instances of non-compliance relating to fraud by an official, should be separately disclosed in the entity’s Compliance Report. / Corporate and non-corporate
Section 27 / Duty in relation to use of position / An official of a Commonwealth entity must not improperly use his or her position:
(a) to gain, or seek to gain, a benefit or an advantage for himself or herself or any other person; or
(b) to cause, or seek to cause, detriment to the entity, the Commonwealth or any other person. / Non-compliance is reportable where an official has misused their position in relation to the use of public resources.
Examples of misuse of position could be:
· an official using their official title to seek a discount that benefits them personally
· on behalf of the entity, entering into a contract for the provision of goods or services with a family member or friend, without disclosing the potential material personal interest
· using Commonwealth resources for personal purposes without explicit approval. / Corporate and non-corporate
Section 28 / Duty in relation to use of information / A person who obtains information because they are an official of a Commonwealth entity must not improperly use the information:
(a) to gain, or seek to gain, a benefit or advantage for himself or herself or any other person; or
(b) to cause, or seek to cause, detriment to the Commonwealth entity, the Commonwealth or any other person. / Non-compliance is reportable where an official has misused information obtained as result of their position in relation to the use of public resources.
Examples of misuse of information could be:
· leaking financial information to the media
· using protected financial data held by a government entity for personal financial gain
· providing information to a person or company that gives, or potentially gives, that person or company a competitive advantage in a procurement tender. / Corporate and non-corporate
Section 29 / Duty to disclose interests / (1) An official of a Commonwealth entity who has a material personal interest that relates to the affairs of the entity must disclose details of the interest.
(2) The rules may do the following:
(a) prescribe circumstances in which subsection(1) does not apply;
(b) prescribe how and when an interest must be disclosed;
(c) prescribe the consequences of disclosing an interest (for example, that the official must not participate at a meeting about a matter or vote on the matter). / Non-compliance is reportable when an official does not disclose a material personal interest in relation to the use of public resources.
Where the official has not disclosed the interest consistent with section 13 to 16 of the PGPA Rule, non-compliance should be reported against the relevant section of the Rule.
A material personal interests could arise, for example, when:
· an official is on an employment selection panel that is interviewing a friend or family member for a position with the Commonwealth entity