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DOCUMENT 1
Accountable Authority
Instructions and
Financial
Authorisations
September 2021
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5. Accountable Authority Instructions
5.1 Terms you need to know
AAI means Accountable Authority Instructions
AAI Quick Guides means topic specific guides and scenarios to assist Officials, Contractors and Consultants in
meeting the requirements of these AAIs
Accountable Authority means the Board
Agency means the National Disability Insurance Scheme Launch Transition Agency
Agency money means public or relevant money held in any bank account of the Agency, or relevant public
money that is held by the Agency
Agency property means relevant property (other than Agency money) that is owned or held by the Agency, or
any other thing prescribed as Agency property by the PGPA Rule
ANAO means Australian National Audit Office
Arrangement means any arrangement for the procurement of goods or services under which Agency money is
payable or may become payable; including a contract, agreement, deed, work order, purchase order, or
memorandum of understanding
Authorisation means
a mechanism to confer a function, duty or power from the holder to another official
Breach or breach means the identification of a non-compliance with the finance law
Board means the Board of the Agency established under section 123 of the NDIS Act
Business system means the Agency computer system that manages participant plans and payments (also
known as the Customer Relationship Management (CRM) system)
CCE means
corporate Commonwealth entity
CEO means
Chief Executive Officer
CFO means Chief Financial Officer
CGRGs means Commonwealth Grant Rules and Guidelines
CIO means Chief Information Officer
Contractor means engaged by the Agency under contractual arrangements
Consultant means engaged by the Agency to provide independent expert advice
CPO means Chief People Officer
CPRs means Commonwealth Procurement Rules
CRO means Chief Risk Officer
ELT means Executive Leadership Team
Executive Placement Program (EPP) officers means
Contractors of an equivalent level as SES, with equivalent
management responsibilities, obligations, delegations and authorisations
FBT means Fringe Benefits Tax
Financial Authorisations means Financial Authorisations to officials from the Accountable Authority
Finance law means PGPA Act, PGPA Rule, Appropriation Acts, instruments made under the PGPA Act including
these AAIs
FMCS means Financial Management and Compliance System
Governance means the system of managing, controlling and monitoring
Grant means the provision of financial assistance by the Agency to assist the recipient to achieve its goals while
addressing the Agency’s outcome
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Human Resources Delegations and Authorisations means delegations and authorisations under the
Public
Service Act 1999 and other legislation that relates to human resource management
Independent assurance means a process that tests both system and non-system controls and is provided by a
person or persons independent of the business areas performing the work
Material means when something is relevant, significant or important in its context
National Contracts means mandatory whole-of-Government contracts to be used for certain types of
expenditure (e.g. AOT, QBT and COS)
NDIS Act means National Disability and Insurance Scheme Act 2013 (Cth)
NDIS Operations Delegations means delegation by the CEO of powers and functions under the NDIS Act
Official or
official means an individual who is in or forms part of the Agency. This includes a member of the
Accountable Authority of the Agency, staff engaged under the
Public Service Act 1999 (Cth) and an officer or
employee of the Commonwealth, a state or territory whose services are made available to the Agency
Official gift means any gift made to a person or organisation external to the Agency as a cultural gesture or
token of appreciation
Payment accuracy means the Agency’s ability to pay the right person the right amount of money, through the
right program, at the right time and takes into account participant/provider/vendor and administrative errors
Procurement means a term used to describe purchasing goods and/or services
Proper means efficient, effective, economical and ethical
Proportionate means an appropriate response or decision in the context of the particular circumstance – being
in the correct proportion - commensurate
Research or Evaluation Project means a project that involves the systematic collection and analysis of
information to make judgements about the effectiveness, efficiency and/or appropriateness of an activity, the
creation of new knowledge and/or the synthesis and analysis of existing knowledge so as to generate new
concepts, methodologies, inventions and understandings to inform policy, programs or service delivery
SES means Senior Executive Service (SES) employees employed under the
Public Service Act 1999
Significant issue means a significant issue for the purpose of section 19 of the PGPA Act
Significant non-compliance means any serious breach, including:
serious breaches of the duties of officials, including any fraudulent activity by officials;
systemic issues reflecting internal control failings or high volume instances of non-compliance; and
non-compliance issues that are likely to impact on the Agency’s financial sustainability
Tax Invoice or
Invoice has the same meaning as given to that term in the
A New Tax System (Goods and
Services) Act 1999 You or
you means any person required to comply with the AAIs.
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6. AAI - Corporate governance
6.1 Duty to keep the Board informed
6.1.1 The Board must be advised as soon as practicable of all instances of significant non-compliance
and anything that could be considered a significant issue under the PGPA Act that has impacted
or may impact on the Agency’s operations.
6.2 Professional judgement
You must comply with these AAIs, including the principles and requirements set out in these
AAIs, and exercise your professional judgement when making decisions and taking actions. Your
professional judgement must include consideration of the following:
a. Is the proposed decision/action reasonable in the circumstances?
b. If there are resource implications, will the proposed decision/action represent a proper
use of Agency resources?
c. What risks are associated with the decision/action and can they be appropriately
managed?
d. Is the decision or action proportionate in the circumstances?
e. Does the decision/action represent value for money?
f. Ensure the authorisation is applied in accordance with the relevant legislation, policies
and related procedures.
6.3 Duties of officials
6.3.1 Sections 25 to 29 of the PGPA Act impose the following duties on all officials:
a. a duty of care and diligence;
b. a duty to act honestly, in good faith and for a proper purpose;
c. a duty in relation to use of position;
d. a duty in relation to use of information; and
e. a duty to disclose interests.
6.3.2 To meet these duties, officials are expected to exhibit a minimum standard of behaviour in
exercising their powers or performing their functions. An official must comply with the finance
law, which includes the PGPA Act, the PGPA Rule, any other instruments made under the PGPA
Act (including these instructions), and an Appropriation Act.
6.3.3 You must ensure that you understand your duties as an official under the PGPA Act. If you are
a line manager, you must ensure that your staff members are aware of their status as an official
and understand their duties. As an official, you must not do or fail to do anything to cause or
contribute to the Agency being in breach of the finance law.
6.3.4 Failure by an official to comply with a lawful and reasonable direction and failure to comply
with finance law may result in APS Code of Conduct proceedings.
6.3.5 You must comply with the Agency’s policies.
6.3.6 For further information refer to the AAI Quick Guide: Duties of Officials.
6.4 Financial authorisations
6.4.1 The Financial Authorisations for officials in the Agency are detailed at section 12.
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When making a decision or taking action you must consider whether there is authority under
the Financial Authorisations that is applicable.
Prior to exercising an authorisation you must consider any recommendation/s from the relevant
internal committee providing specialist advice.
6.4.4 For further information refer to AAI Quick Guide: Delegations and Authorisations.
6.5 Risk management and fraud control
6.5.1 The Board is accountable for the oversight of risks, and the CEO and the CRO are responsible for
the implementation of the Agency’s Risk Management Strategy (RMS). You must act, in
accordance with the Agency’s RMS.
6.5.2 Refer to Appendix A of the RMS for details of risk management roles and responsibilities. For
further information contact s47E(d) - certain operations of agencies.
6.5.3 You must act in accordance with the Agency’s Fraud and Corruption Control Plan, and
contribute to a positive risk and fraud control culture within the Agency. For further information
contact Scheme Integrity Branch at s47E(d) - certain operations of agencies .
6.5.4 You must report any suspected fraudulent activity to the fraud reporting hotline on 1800 650
717, via email to s47E(d) - certain operations of agenciesor via Speak Up.
6.6 Insurance (Comcover and Comcare)
6.6.1 The Agency is required to insure its assets and liabilities through Comcover, and to arrange
workers compensation insurance through Comcare.
6.6.2 Comcover requests and information must be directed to s47E(d) - certain operations of agencies .
6.6.3 For further information refer to the Agency’s Finance Policies, General Insurance chapter.
6.7 Disclosure of interests
6.7.1 You must disclose material personal interests relating to the affairs of the Agency.
6.7.2 You must maintain a current Conflict of Interest Declaration and provide the declaration via the
People and Culture Service Desk.
6.7.3 For further information refer to the Conflict of Interest policy or submit your enquiry to the
People and Culture service desk.
6.8 Accounts and records
6.8.1 You must maintain appropriate accounts, records and non-financial performance information to
demonstrate resources have been used appropriately, decisions made soundly, and how public
resources have been used to achieve the purposes of the Agency.
6.8.2 You must comply with any lawful request by the Finance Minister, the responsible minister or
the Commonwealth Auditor-General for access to the Agency's accounts and records.
6.8.3 Refer to the Agency’s Finance Policies, Accounts and Records chapter for further detail.
6.9 Audit
6.9.1 You must cooperate with representatives of the CFO, Internal Audit, the Agency’s Audit
Committee and the Australian National Audit Office (ANAO), including providing prompt and
unfettered access to requested information, and responding to audit queries and
recommendations in a timely manner.
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6.10 Systems
6.10.1 If you are undertaking a project with a potential impact on the following systems you must seek
approval from the CIO, CFO, CRO and the Agency’s Information Law and Privacy Team at
s47E(d) - certain operations of agencies and any additional business owners listed below:
a. SAP CRM (Customer Relationship Manager) links participant and provider portals and
streamlines workload management and work allocation for planners and partners. SAP
CRM will be replaced with the ACE business system. Business Owners are CIO and CFO.
b. ESSentials – Agency HR and Finance management – Business Owners are CPO and CFO.
c. SAP R1P – Financial system – Business Owner is CFO.
d. Public Sector Collections and Disbursements (PSCD) – client platform within SAP which
facilitates Scheme payments. Business Owner is CFO.
6.10.2 The CFO must approve the implementation of system changes or new systems, where
participant data, employee data or Scheme and Agency payments (including participant or
provider payments) are potentially impacted, before those systems are released into
production. Assurance must be provided to the CFO as part of the approval process and must
include consideration of payment accuracy and the accounting treatment of transactions.
6.10.3 As required the system business owner must undertake the following:
a. maintain a risk management plan and a business continuity plan (contingency plan) for
the system, and review it objectively at least annually;
b. update the risk management plan when there is a material change to the system or its
supporting systems, processes or governance or when new risks are identified;
c. ensure that all risks are subject to appropriate controls;
d. have regard to the protection of privacy and consult with the Information Law and
Privacy Team at s47E(d) - certain operations of agenciesas required, to identify, eliminate, mitigate and
manage any real or potential privacy risk;
e. undertake sufficient assurance activity to satisfy that the controls for the system are
operating effectively and the system is performing as intended;
f. comply with directions given by the CIO and the CFO relating to undertaking
post-payment transactional testing; and
g. undertake a fraud assessment (in accordance with the Fraud Rule at section 10 of the
PGPA Rule 2014) as directed by the Risk Advisory Branch.
6.11 Exemptions
6.11.1 The CEO, the CFO (up to the limits of their respective delegations) and the Board are the only
officials who may grant an exemption from compliance with these AAIs or elect to apply
paragraph 2.6 of the Commonwealth Procurement Rules (CPRs)1.
1 Paragraph 2.6 of the Commonwealth Procurement Rules allows officials to not apply the CPRs “to the extent… necessary for the maintenance or restoration of international
peace and security, to protect human health, for the protection of essential security interests, or to protect national treasures of artistic, historic or archaeological value’
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7. AAI - Procurements, grants and other commitments and arrangements
7.1 Approving commitments of Agency money
7.1.1 You must only approve expenditure if you are an official or you are authorised to do so (refer to
Financial Authorisations) and the following conditions are met:
a. Relevant Commonwealth and Agency policies have been followed;
b. the expenditure complies with any specific requirements for that expenditure type
detailed in these AAIs;
c. you are satisfied that the expenditure:
i. is supported by available budget;
ii. is appropriate and proper use of Agency money and achieves value for money;
and
iii. promotes the achievement of the Agency’s purposes, including any related
benefits to people living with disability;
d. forward commitment approval (in writing) has been provided if the commitment of
Agency money extends beyond the current financial year; and
e. separate authorisation has been obtained for any indemnities included in the proposed
arrangement, unless the indemnity is exempt as per AAI Quick Guide: Indemnities and
other contingencies.
7.1.2 You must record any approval of a commitment of relevant money in writing (where not
recorded directly in the relevant system).
7.1.3 The CEO can provide written authorisation for the CFO to execute contracts on his/her behalf
when required.
7.2 Entering into and varying arrangements
7.2.1 You may only enter into or vary an arrangement on behalf of the Agency if the maximum value
(as varied if applicable) is within your Financial Authorisation (and has not been disaggregated
inappropriately to avoid scrutiny by a higher level of financial authorisation), and:
a. it complies with the AAIs; and
b. is otherwise in accordance with any applicable Agency policy, direction or guidance.
7.3 Administering an arrangement
7.3.1 If you are responsible for managing an arrangement you must:
a. actively manage the arrangement throughout the term to ensure the objectives are
achieved;
b. monitor, evaluate, record and report on, as required, the performance of the parties to
the arrangement to ensure the Agency achieves value for money; and
c. identify, assess and manage risks in respect of the arrangement/s you manage.
7.3.2 For further information, refer to the Australian Government Contract Management Guide.
7.4 Procurement (buying goods and/or services)
7.4.1 The Agency’s Procurement and Corporate Services Branch is your first point of contact for all
procurement advice. For further information contact s47E(d) - certain
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7.4.2 When undertaking a procurement you must procure goods and/or services in a manner
consistent with the Commonwealth Procurement Rules
2.
7.4.3 You should consult with the Research and Evaluation Branch prior to procuring any research
and/or evaluation services. For further information contact s47E(d) - certain operations of agencies
7.5 Grants
7.5.1 You should approach and conduct grant opportunities in a manner that may enable compliance
with the Commonwealth Grant Rules and Guidelines (CGRGs)
3.
7.5.2 For further information contact s47E(d) - certain
.
7.6 Indemnities and other contingent liabilities
7.6.1 Indemnities, guarantees, warranties and certain caps on liability (collectively referred to as
‘indemnities’ in these AAIs) may give rise to a contingent liability that is a cost to the Agency as
a result of a future event.
7.6.2 You must not enter into an arrangement that includes an indemnity on behalf of the Agency
unless an exception applies at 7.6.4, or you have separate authorisation from the Board, CEO or
CFO.
7.6.3 As evidenced by a risk assessment:
a. The Board can provide approval, where the likelihood of the event giving rise to the
contingent liability occurring is more than five per cent and the most probable cost is
more than $30 million;
b. the CEO can provide approval, where the likelihood of the event giving rise to the
contingent liability occurring is less than five per cent and the most probable cost is less
than $30 million;
c. CFO can provide approval, where the likelihood of the event giving rise to the contingent
liability occurring is less than five per cent and the most probable cost is less than $10
million; and
d. indemnities in favour of the CFO and CEO require CEO and Board authorisation
respectively.
7.6.4 Subject to compliance with the AAI Quick Guide: Indemnities and other contingencies, the
following exceptions apply:
a. indemnities included in the terms and conditions of vehicle rentals within Australia;
b. indemnities included in the terms and conditions of venue hire within Australia;
c. indemnities included in the terms and conditions of equipment hire within Australia; and
d. car park licences within Australia.
7.6.5 All indemnities with a likelihood of an event giving rise to a contingent liability of more than five
per cent or the most probable cost of more than $5 million must be recorded in the Contingent
Liability module in FMCS. The Risk Branch must be consulted to notify Comcover.
7.6.6 The PGPA Rules provide that in some circumstances the Agency must not, as a CCE, grant
certain indemnities, and is not allowed to grant exemptions to persons for liabilities incurred as
2 While the Agency as a non-prescribed CCE for the purposes of s30 of the PGPA Rule is not bound by the CPRs, the Board, as the Accountable Authority, intends NDIA staff to
comply with the CPRs (or where not possible, for example, use of AusTender reporting, comply with the intent of the CPRs) through this Instruction
3 While the Agency as a CCE is not bound by the CGRGs, the Board, as the Accountable Authority, intends NDIA staff to comply with the CGRGs through this Instruction
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officials of the Agency with particular reference to pecuniary penalties and legal costs4. For
more information, contact Legal Services at s47E(d) - certain operations of agencies .
7.7 Gifts, hospitality and sponsorship
7.7.1 You must refer to the Agency’s Finance Policies, Gifts, Hospitality and Sponsorship chapter prior
to providing official hospitality (for external activities), food and beverage (for internal
activities), sponsorships and giving or receiving of gifts (including gifting of Agency property).
7.8 Official travel
7.8.1 You must comply with the Agency’s Finance Policies, Travel chapter when arranging official
travel.
8. AAI - Making payments
8.1 Corporate credit cards
8.1.1 You must refer to the Agency’s Finance Policies, Credit Card chapter for the issuance,
management, processing and usage of a corporate credit card.
8.2 Gratuities
8.2.1 You must not tip using Agency money in Australia.
8.2.2 When travelling internationally for the Agency, tipping is acceptable if it is customary to do so in
that country.
8.3 Payments to vendors
8.3.1 The Agency’s standard payment terms for invoices is 20 calendar days upon receipt of a
correctly rendered invoice, unless shorter maximum payment terms have been agreed between
the Agency and the vendor.
8.3.2 You must action any correctly rendered invoice within five business days of receiving it. This will
enable invoices to be paid in line with the payment terms agreed to by the Agency and the
vendor.
8.3.3 For further information refer to the Agency’s Finance Policies, Accounts and Records chapter.
8.4 Discretionary financial assistance
8.4.1 If you receive a request for discretionary financial assistance from a person or organisation that
has suffered detriment as a result of the Agency’s administration you must refer the claim
immediately to Legal Services ats47E(d) - certain operations of agencies
8.4.2 It should be noted that the Scheme for Compensation for Detriment caused by Defective
Administration (CDDA Scheme) does not apply to the Agency as a CCE
5.
8.5 Claims and legal settlements
8.5.1 If you become aware of a potential dispute or a legal proceeding, you must immediately refer
the matter to Legal Services at s47E(d) - certain operations of agencies
4 Refer to the PGPA Rule – Division 4A of Part 2-4 ‘Indemnities and Exemptions by corporate Commonwealth entities’.
5 The CDDA Scheme applies to non-CCEs.
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8.5.2 You must only agree to a settlement of a dispute, claim or legal proceeding if:
a. Legal Services has been consulted and the Chief Counsel or his/her delegate has
approved the proposed settlement;
b. you have the Financial Authorisation to approve expenditure of this type; and
c. all statutory requirements in relation to the committing of any settlement monies have
been complied with.
8.6 Payments pending probate
8.6.1 Payments pending probate can only be approved by the CEO or the CFO. For further
information contact s47E(d) - certain operations of agencies
9. AAI - Managing money
9.1 Managing money guidance
9.1.1 You must refer to the Agency’s Finance Policies, Managing Money chapter for guidance on:
a. receiving or managing appropriations;
b. receiving and banking money;
c. management of bank accounts and banking; and
d. loss of Agency money.
9.2 Investments
9.2.1 Investments must be made and managed in line with the Agency’s Finance Policies, Managing
Money chapter and the PGPA Act. Refer to Financial Authorisation 5: Investments.
9.3 Borrowing
9.3.1 The CEO and the CFO are authorised to enter into a credit arrangement if:
a. the borrowing is the obtaining of credit by way of credit card, credit voucher or similar
credit facility; and
b. the agreement for the borrowing requires the amount borrowed to be repaid by the
Agency within 90 days; or
c. the borrowing is authorised by the Finance Minister in writing or otherwise authorised
by the PGPA Rule.
10. AAI - Debts
10.1 General principles
10.1.1 Where you establish that money is owed to the Agency, a debt must be raised as soon as
practicably possible.
10.2 Managing Agency debts
10.2.1 Agency debt is an amount of money owed to the Agency, as a result of:
a. amounts due from corporate debts, overpayments, fees, leases, rents, services provided
by the Agency;
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b. sales of real and personal issued property owned by the Agency;
c. overpayments or incorrect payments paid to Agency employees (and former
employees), other Commonwealth or state / territory government entities, external
agencies, organisations or individuals (including Agency contractors and consultants);
and/or
d. fines, penalties, damages, interest and forfeitures.
10.2.2 You must refer to the Agency’s Finance Policies, Agency Debt chapter for the identification,
management and recovery of Agency debts.
10.3 Managing debts under NDIS Act (Scheme Debt)
10.3.1 Scheme debt is an NDIS amount owed to the Agency, including as a result of:
a. incorrect payment or overpayment to a provider or participant (including nominees
acting on behalf of participants);
b. compensation matters; and
c. other debts relating to the operations of the NDIS Act.
10.3.2 If you are responsible for managing debts and/or waivers under the NDIS Act you must act in
accordance with the legislation, the Scheme Debt Management policy and the NDIS Operations
Delegations.
11. AAI - Managing Agency property
11.1 Management and use of Agency property
11.1.1 You must manage Agency property in accordance with the Agency’s Finance Policies, Asset
Management chapter.
11.1.2 You must not dispose of Agency property unless you have financial authorisation to do so as per
Financial Authorisation 4: Disposal of Agency Assets.
11.2 Real property
11.2.1 In dealing with Agency property that is real property (including leases or arrangements that
relate to interests in land) you must ensure that you comply with the requirements of the Land
Acquisition Act 1989 (Cth) and any delegations that apply to the Agency under that Act, as and if
applicable.
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Document Management
Overview:
Release
s22(1)(a)(ii) - irrelevant material
Effective Date
Author
Owner
Client
Document Number
Release
Effective Date
Authors
Owners
HR Delegations
Audience
Financial
Authorisations
Audience
Document Number
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