Document ID: chunk:federal_register_of_legislation:F2024L00854:body:0:p5
Version: federal_register_of_legislation:F2024L00854
Segment Type: other
Provision Reference: 
Character Range: 12139–15418

public resources. In managing the affairs of the entity, accountable authorities must comply with the Constitution, the PGPA Act, the PGPA Rule and any other relevant law. In addition, accountable authorities of non-corporate Commonwealth entities must govern the entity in a way that is not inconsistent with the policies of the Australian Government.[21]
    3.3.       Ministers must also comply with the relevant legislative requirements in the PGPA Act and Rule and the CGRPs. Officials must advise their ministers on these requirements.[22]

Key resource management legislative requirements
    3.4.       The PGPA Act and Rule provide the overarching accountability framework for grants administration. Accountable authorities and officials must consider their obligations under the PGPA Act and Rule when undertaking grants administration.[23] Internal guidelines, operational guidance and grant opportunity guidelines must be consistent with these requirements, while including any additional specific processes.[24]
    3.5.       Section 15 of the PGPA Act provides that an accountable authority must govern the affairs of the entity in a way that promotes proper use and management of public resources for which the accountable authority is responsible. When used in relation to the use or management of public resources 'proper' means efficient, effective, economical and ethical.
        1. Section 15 is an overarching requirement applying to all aspects of an entity's resource management, including grants administration.
       b.   Accountable authorities mainly discharge their responsibility under section 15 by ensuring that their entity has appropriate policies, procedures, guidelines and internal controls in place. Entities then undertake grants administration, proportionate to the risks identified and outcomes sought, ensuring that they are consistent with the resource management framework and CGRPs.
       c.    Accountable authorities of non-corporate Commonwealth entities are required to manage within the context of the Australian Government's policy framework. The CGRPs are the core policy of the Australian Government relating to grants administration.
    3.6.       Accountable authorities must ensure that entity fraud and corruption procedures and practices comply with section 10 of the PGPA Rule that goes to preventing, detecting and responding to fraud and corruption, including appropriate mechanisms in relation to risk management and controls, including as it relates to grants administration.
    3.7.       The Rule places obligations on accountable authorities in relation to: fraud and corruption risk assessments; control plans; awareness and training; and case handling and reporting.
          * Under section 10(b) of the PGPA Rule, an entity's accountable authority must implement a fraud and corruption control plan for the entity.
          * Under section 45 of the PGPA Act, accountable authorities must establish and maintain an 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.