Government agencies will need to consider whether internal
processes and delegations for procurement and grants need to be
revised as a result of new financial management and accountability
legislation and rules.
As explained in the last edition of Government Matters, the
Public Governance, Performance and Accountability Act 2013 (PGPA
Act) replaces the Financial Management and Accountability Act
1997 (FMA Act) and the Commonwealth Authorities and
Companies Act 1997 (CAC Act). It establishes a core set of
obligations for all Commonwealth officials and governing bodies of
agencies (accountable authorities).
The move away from the one-size-fits-all approach under the FMA
Act will require agencies to understand and engage with relevant
risks. The Department of Finance notes "the emphasis of the
new system is on encouraging prudent behaviour through the duties
of accountable authorities and officials, not on overly
prescriptive regulatory and compliance requirements".
