Document ID: chunk:federal_register_of_legislation:F2024L00854:body:0:p6
Version: federal_register_of_legislation:F2024L00854
Segment Type: other
Provision Reference: 
Character Range: 15132–18208

audit committee.
    3.8.       Before entering into an arrangement[25] for the proposed commitment of relevant money there must be legal authority to support the arrangement.
    3.9.       The authority to enter into, vary or administer an arrangement can come from either:
        1. section 23 of the PGPA Act, which provides the Commonwealth with the power to enter into, vary or administer an arrangement of relevant money that relates to the ordinary services and functions of government[26];
       b.   section 32B of the Financial Framework (Supplementary Powers) Act 1997 (FFSP Act), which provides the Commonwealth with the power to enter into, vary or administer an arrangement or a grant of financial assistance if it is specified in Schedule 1AA or Schedule 1AB to the FFSP Regulations; or
       c.    specific legislation. New or existing primary legislation administered by the relevant portfolio that provides the Commonwealth with the power to enter into, vary or administer an arrangement. This authority may be delegated to officials to enable them to enter into, vary or administer an arrangement.
    3.10.   In addition to the requirement for legal authority, accountable authorities and officials must also act in accordance with the PGPA Act and Rule, and the CGRPs, in relation to the proposed expenditure of relevant money.
    3.11.   Section 18 of the PGPA Rule requires that where accountable authorities or officials approve a proposed commitment of relevant money, the approval must be recorded in writing as soon as practicable after the approval is given.[27]
    3.12.   Accountable authorities and officials must disclose material personal interests, including in relation to grants administration, under the PGPA Act and Rule.[28] A similar requirement is contained in the Code of Conduct under the Public Service Act 1999.[29] Ministerial staff[30] must disclose and take reasonable steps to avoid any conflicts of interest, as per the Ministerial Staff Code of Conduct.
    3.13.   The PGPA Act and Rule, and the CGRPs, include requirements that apply to ministers. Officials must advise the relevant minister on these requirements.
    3.14.   The PGPA Act requires that a minister must not approve proposed expenditure of relevant money unless satisfied, after reasonable inquiries, that the expenditure would be a 'proper' use of relevant money.[31] The terms of the approval must be recorded in writing as soon as practicable after the approval is given. 'Proper' when used in relation to the use or management of public resources means efficient, effective, economical and ethical.
    3.15.   Officials must retain appropriate records, consistent with their accountability obligations, and ensure the records are available on request.[32]

  4.   Grants-specific Processes and Requirements
    4.1.       The grants policy framework is an important part of the resource management framework. This framework provides for non-corporate Commonwealth entities to work together with non-government stakeholders to achieve government