EXPLANATORY STATEMENT
Issued by the authority of the Minister for Finance
Public Governance, Performance and Accountability Act 2013
PGPA Act Determination (Establishment of ICT Coordinated Procurement Special Account 2017)
Purpose of this determination
This determination is made under subsections 78(1) and 78(3) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act). It will establish the ICT Coordinated Procurement Special Account 2017 (the special account) and make a consequential amendment to the purposes of the Coordinated Procurement Contracting Special Account.
As part of the machinery of government change on 27 October 2016, the whole of government information and communication technology (ICT) procurement function transferred to the Digital Transformation Agency (DTA) from the Department of Finance (Finance).
The ICT Coordinated Procurement Special Account is being established to administer the operations of centralised ICT procurement for the Australian Government, which has transferred from Finance. The special account provides accountability for costs incurred when undertaking centrally coordinated ICT supply arrangements. Amounts will be able to be debited from the Coordinated Procurement Contracting Special Account and credited to the special account, to be used for the purpose of centralised ICT procurement.
The purpose of the special account will be to administer Australian Government ICT Coordinated procurement contracts for the benefit of Commonwealth entities, including by:
- Planning for and conducting the whole of government ICT supply tenders;
- Managing whole of government ICT supply contracts;
- Providing ICT procurement assistance to Commonwealth entities;
- Undertaking monitoring and reviews of centralised ICT procurement performance by Commonwealth entities.
The Coordinated Procurement Contracting Special Account will continue to provide accountability for those whole of government procurement functions not transferred to the DTA.
The operating context of special accounts
A special account may be established, varied or revoked under the PGPA Act: by a determination made by the Minister for Finance (under section 78) or by an Act (see section 80).
A special account is an appropriation mechanism that sets aside amounts within the Consolidated Revenue Fund (CRF) for spending on specified purposes. The purposes of a special account are set out in the establishing determination or Act.
In accordance with section 81 of the Constitution, all revenues or moneys raised or received by the Commonwealth Executive Government form one CRF. Section 83 of the Constitution provides that such money may not be drawn from the Treasury except under an appropriation made by law.
- A special account enables revenues or moneys raised or received to be set aside for the purposes of that special account.
- Payments made for the purposes of a special account are supported by an appropriation in the PGPA Act; subsection 78(4) for a special account established by a determination or subsection 80(1) for a special account established by an Act.
Special account determinations
Special account determinations are legislative instruments under the Legislation Act 2003. Special account determinations may be varied or revoked by a subsequent determination being made in accordance with subsection 78(3) of the PGPA Act.
In accordance with subsection 79(3) of the PGPA Act, the Finance Minister must table a copy of such determinations in each House of the Parliament. Subsection 79(4) of the PGPA Act provides that special account determinations are subject to disallowance by either House of the Parliament. The disallowance period starts on the day a special account determination is tabled in the House and ends on the fifth sitting day after the determination was tabled in that House.
If neither House passes a resolution to disallow a special account determination, under subsection 79(5) it comes into effect on the day immediately after the last day on which it could have been disallowed, or on a later day if specified in the determination.
Human Rights
A Statement of Compatibility with Human Rights is not required for this determination. Subsection 9(1) of the Human Rights (Parliamentary Scrutiny) Act 2011 requires a Statement of Compatibility with Human Rights for all legislative instruments subject to disallowance under section 42 of the Legislation Act 2003. While determinations made or varied under subsections 78(1) or 78(3) of the PGPA Act are subject to disallowance under section 79 of the PGPA Act, subsection 79(2) provides that they are not subject to disallowance under section 42 of the Legislation Act 2003. As such, a Statement of Compatibility with Human Rights is not required.
Consultation
The DTA was consulted in the preparation of this determination.
Overview
The Public Governance, Performance and Accountability Act 2013 (PGPA Act) is an Australian legislation that was enacted to provide a framework for the governance and accountability of Commonwealth entities. This Act was introduced to address the need for a unified and efficient system for managing the financial and administrative operations of the Australian Government. The PGPA Act Determination (Establishment of ICT Coordinated Procurement Special Account 2017) was made under the authority of the Minister for Finance to establish the ICT Coordinated Procurement Special Account, thereby addressing the gap in accountability and administration of centralised ICT procurement for the Australian Government. The establishment of this special account reflects the transfer of the ICT procurement function from the Department of Finance to the Digital Transformation Agency as part of the machinery of government change on 27 October 2016. The special account aims to enhance the efficiency and effectiveness of ICT procurement for Commonwealth entities by centralising the procurement process and ensuring that costs are properly accounted for.
Scope and Application
The PGPA Act Determination (Establishment of ICT Coordinated Procurement Special Account 2017) applies to the establishment of a special account within the Australian government to administer the operations of centralised Information and Communication Technology (ICT) procurement. This special account is established under the authority of the Public Governance, Performance and Accountability Act 2013, and it specifically pertains to the functions that were transferred from the Department of Finance to the Digital Transformation Agency (DTA) on 27 October 2016. The special account will be used to manage costs associated with centrally coordinated ICT supply arrangements, including planning and conducting whole of government ICT supply tenders, managing contracts, providing procurement assistance to Commonwealth entities, and monitoring procurement performance. The special account serves as an appropriation mechanism within the Consolidated Revenue Fund (CRF), setting aside funds for specified purposes as outlined in the determination. The establishment of this special account is subject to disallowance by either House of the Parliament, though it does not require a Statement of Compatibility with Human Rights as it is not subject to disallowance under section 42 of the Legislation Act 2003. The special account determinations are legislative instruments under the Legislation Act 2003 and can be varied or revoked by subsequent determinations.
Key Provisions
The main operative sections of the determination establish the ICT Coordinated Procurement Special Account 2017 under subsections 78(1) and 78(3) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act) (section 2). This special account is intended to administer the operations of centralised information and communication technology (ICT) procurement for the Australian Government, which was transferred from the Department of Finance to the Digital Transformation Agency (DTA) as part of the machinery of government changes on 27 October 2016 (section 2). The special account provides accountability for costs incurred when undertaking centrally coordinated ICT supply arrangements and will be used for the purpose of centralised ICT procurement (section 2). The special account's purpose is to administer Australian Government ICT Coordinated procurement contracts for the benefit of Commonwealth entities by planning and conducting whole of government ICT supply tenders, managing whole of government ICT supply contracts, providing ICT procurement assistance to Commonwealth entities, and undertaking monitoring and reviews of centralised ICT procurement performance (section 2).
The Act imposes obligations and requirements on the parties and entities it governs. The Digital Transformation Agency is responsible for administering the ICT Coordinated Procurement Special Account and ensuring that it is used for the intended purposes of centralised ICT procurement. The account provides accountability for costs incurred during centrally coordinated ICT supply arrangements. Additionally, the account will receive amounts from the Coordinated Procurement Contracting Special Account for use in centralised ICT procurement. The Minister for Finance is required to table a copy of the determination in each House of the Parliament, and the determination is subject to disallowance by either House (subsection 79(3) and (4)). If neither House passes a resolution to disallow the determination, it comes into effect on the day immediately after the last day on which it could have been disallowed or on a later day if specified in the determination (subsection 79(5)).
The determination does not explicitly state any offences, penalties, or consequences for breach. However, any breach of the requirements or obligations imposed by the determination may result in legal action or consequences under the PGPA Act or other relevant legislation. The determination is subject to disallowance by either House of the Parliament, and if disallowed, it will not come into effect. Additionally, any misuse of funds within the ICT Coordinated Procurement Special Account may result in legal action or consequences under the PGPA Act or other relevant legislation. The maximum penalties for offences under the PGPA Act vary depending on the specific offence and are not stated in the determination.