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Commonwealth Resource Management Framework
The Commonwealth Resource Management Framework governs how officials in the Commonwealth public sector use and manage public resources.
The framework is an important feature of an accountable and transparent public sector and informs the Australian people of the daily work of Commonwealth entities and their employees.
The cornerstone of the framework is the Public Governance, Performance and Accountability Act 2013 (PGPA Act).
The related Public Governance, Performance and Accountability Rule 2014 (PGPA Rule) and associated instruments and policies give effect to the governance, performance and accountability matters covered by the PGPA Act.
Resource management cycle
In relation to the role of evaluation, the PGPA Act establishes a clear cycle of resource management that includes:
- planning
- budgeting
- implementing
- evaluating
- being held accountable.
Public-funded programs and activities insights
By placing explicit obligations on officials for the quality and reliability of performance information, the PGPA Act is designed to provide insights into whether publicly funded programs and activities are achieving their objectives and outcomes.
This includes:
- providing meaningful information to the Parliament and the public about planned and actual performance of Commonwealth entities and companies
- supporting all Commonwealth entities and companies to meet high standards of governance, performance and accountability.
Training and support
Training and supporting resources are designed to help users improve their understanding of the Resource Management Framework and the PGPA Act.
For more information, visit the Department of Finance's Learning and support.
Commonwealth Performance Framework
The Commonwealth Performance Framework (CPF), established by the PGPA Act and Rule, requires all Commonwealth entities to measure and assess their performance in the context of achieving their purposes.
Corporate plan and annual performance statements
Under the PGPA Act and Rule, the accountable authority of a Commonwealth entity is required to produce and publish annually:
- a corporate plan that details how the entity's performance in achieving its purposes will be measured and assessed over at least a 4-year period, and
- annual performance statements, included in their annual report, that report on the entity's performance in achieving its purposes in that year (reconciling performance information reported in corporate plans and related portfolio budget statements, with the results and an analysis of the reasons for the results achieved).
Portfolio budget statements
Commonwealth entities also publish performance information in related portfolio budget statements, including most notably their portfolio minister’s Portfolio Budget Statement (PBS). This includes:
- reporting at least one high‑level performance measure and planned performance results for existing programs across the forward estimates, as well as reporting on expected performance results for the current year
- reporting all performance measures and planned performance results for new or materially changed programs.
Performance measures
The PGPA Rule sets out the requirements for performance measures for a Commonwealth entity.
The performance measures for an entity meet the requirements of the Rule if, in the context of the entity’s purpose or key activities, they:
- specify targets for each performance measure for which it is reasonably practicable to set a target
- relate directly to one or more the entity's purposes or key activities
- use sources of information and methodologies that are reliable and verifiable
- provide an unbiased basis for the measurement and assessment of the entity's performance
- where reasonably practicable, compromise a mix of qualitative and quantitative measures
- include measures of the entity's outputs, efficiency and effectiveness where appropriate
- provide a basis for an assessment of the entity’s performance over time.
Complement, enhance or support
Evaluation can complement, enhance or support an entity's routine performance monitoring and reporting by providing a robust evidence‑base to:
- develop good performance information
- track the delivery of Government priorities
- assess the extent to which expected benefits are being achieved
- identify when initiatives require course correction.
Improve performance reporting quality
Evaluation methods and tools can also be used to improve the quality of performance reporting in corporate plans, related portfolio budget statements and annual performance statements, particularly where:
- issues with the program or activity objectives, implementation or outcomes have been identified through monitoring, review or stakeholder feedback
- baseline data and information to assess the impact of an program or activity has not been established in the early policy design stage.
Continually measuring and assessing what works, using robust analytical approaches, will help to build capability across the Commonwealth to evaluate how programs and activities are going, and to embed evaluation into everyday practice.
Australian Government Charging Framework
Australian Government Charging Framework (Charging Framework) is the government policy that provides principles and requirements for undertaking government charging.
It relates to activities of exchanging specific goods, services or regulation services, or a combination of these, for money, delivered by the Commonwealth entity to an individual or organisation in the non-government sector.
Two activity types
The Charging Framework identifies different requirements for 2 types of activities:
- regulatory - where the government is seeking to control or influence behaviour, manage risk and/or protect the community.
- non-regulatory - where the non‑government sector obtains a good or a service from Government on a discretionary (non‑compulsory) basis. Non‑regulatory activities may be further classified as:
- resource activity - involving access to public resources, infrastructure and/or equipment
- commercial activity - involving sale of government goods or services.
Importance
The cornerstone of the Charging Framework is the following policy statement:
Where specific demand for a government activity is created by identifiable individuals or groups they should be charged for it unless the Government has decided to fund that activity. Where it is appropriate for the Australian Government to participate in an activity, it should fully utilise and maintain public resources, through appropriate charging. The application of charging should not, however, adversely impact disadvantaged Australians.
For more information on the policy requirements visit RMG-302 Implementing the Charging Framework.
Evaluating charging activities
In evaluating each charging activity, government entities should consider:
- how well the policy intent of the charging activity is being supported by charging, including through the pricing level
- the type of charging activity it undertakes and the charging policy requirements for this type of activity
- for regulatory charging activities: review the charging model annually to ensure the efficient cost is recovered at a level agreed by the Government (to avoid over - or under under‑recovery)
- reviewing performance of charging activities on an ongoing basis
- adhering to other charging policy reporting requirements, including:
- preparing entity's contribution to the Portfolio Charging Review (every 5 years)
- providing the Charging Survey responses for all your charging activities (every 2 years)
- for regulatory charging activities: Updating and publishing the Cost Recovery Implementation Statement (CRIS), annually.
For more information visit Stage 4 of the Charging Lifecycle - Ongoing monitoring and evaluation.
Commonwealth Grants Policy Framework
The Commonwealth Grants Rules and Guidelines 2017 (CGRGs) establish the Commonwealth Grants Policy Framework.
The CGRGs contain the key mandatory legislative and policy requirements and explain the better practice principles of grants administration.
The framework applies to all non‑corporate Commonwealth entities subject to the PGPA Act.
Under the framework, grant administration is the process that an entity undertakes to achieve government policy outcomes through grants.
It includes:
- planning and design
- selection and decision‑making
- making of a grant
- management of grant agreements
- ongoing relationship with grantees
- reporting
- review and evaluation.
Evaluation strategy
Entities should adopt an early focus on evaluation through developing an evaluation strategy during the design phase of the grants lifecycle.
Evaluation includes establishing appropriate performance measures on which to evaluate individual grants and the whole grant opportunity program.
Grant opportunities should be evaluated prior to initiating further grant opportunities or extending existing grant agreements, in order to determine whether existing grants administration processes, practices and requirements remain applicable.
For more information, visit RMG‑412 Australian Government Grants – Briefing, Reporting, Evaluating and Election Commitments
Commonwealth Risk Management Policy
The Commonwealth Risk Management Policy (risk policy) supports section 16 of the PGPA Act which requires accountable authorities of all Commonwealth entities to establish and maintain appropriate systems of risk oversight, management and internal control for the entity.
The risk policy sets out the principles and mandatory requirements for effectively managing risk when undertaking the activities of government.
Good risk management
Good risk management supports the delivery of government services by ensuring controls to manage risks are implemented, remain relevant and effective, and that a collaborative culture is fostered where entities cooperate to manage shared risks.
Regular evaluation
Regular evaluation ensures that the management of risk in policy and programs remains effective and fit for purpose to address emerging risks resulting from changes to the operating environment of entities.
Evaluation also promotes a process of continuous improvement and the sharing of lessons learned.
This is why ‘monitoring and review’ is a core part of the risk management process [PDF 410KB]. It is integral to successful risk management. Risks can change over time and requires the process of risk management to be dynamic, responsive and evolving.
Comcover resources
Comcover resources are designed to assist Commonwealth officials of all levels to improve their understanding of risk management.
For more information, visit: