Circular No 2011/01 - Ministerial Council for Federal Financial ...

PAYMENT ACCOUNTABILITIES
Federal Financial Relations Circular 2011/01
1. Improved accountability is a key objective under the framework for federal financial relations.
2. Federal Finances Circular 2009/03 details the roles and responsibilities of Commonwealth
Ministers and agencies under the framework. This Circular seeks to confirm the payment
accountabilities outlined in that Circular.
3. The Treasurer is responsible, on the advice of the relevant Commonwealth Minister, for the
estimates, appropriations, efficient payment and the financial reporting of National Partnership
payments.
National Partnerships – Project payments
4. Project payments will involve set funding arrangements that specify an amount of money to be
provided at certain times, and which may be subject to the satisfactory attainment by the States of
milestones.
5. The relevant Commonwealth Minister is accountable for policy, implementation and
evaluation in respect of project payments.
6. Where the achievement of pre-determined milestones is required by the relevant National
Partnership before a payment is made to a State or Territory, the relevant Commonwealth Minister
will determine, based upon expenditure and performance reporting arrangements set out in the
National Partnership, whether the project payment will be paid. National Partnership project
payments will only be made in accordance with the requirements set out in the relevant National
Partnership and unless specifically provided for in the agreement, there is no scope for payments
for partial performance.
7. As noted above, National Partnerships generally require Commonwealth Ministers to assess
and certify payments to Commonwealth officials. In some instances, this responsibility has been
delegated to Commonwealth officials in the agreement. The issue of delegating responsibility for
making a determination in respect of project payments has been considered by the Heads of
Treasuries in a review of National Agreements, National Partnerships and Implementation Plans
under the Intergovernmental Agreement on Federal Financial Relations. The findings of the review
are expected to be considered at the next Council of Australian Governments (COAG) meeting. In
the interim, project payments need to continue to be assessed and certified by Commonwealth
Ministers (or an authorised delegate where allowed by the agreement). We expect to issue further
guidance on issues identified in the Heads of Treasuries’ review following consideration by COAG.
8. Where the achievement of a milestone is not required before a payment is made to a State or
Territory, payments will be scheduled in accordance with the payment profile set out in the National
Partnership.
National Partnerships – Facilitation payments
9. When an area emerges as a national priority, National Partnership facilitation payments may be
used to assist States to lift service standards or to provide the capacity to engage in certain agreed
reform activities.
Page 2