Notification of significant non-compliance with the finance law (PGPA Act, section 19)

Section 19 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act) requires, among other things, that accountable authorities of Commonwealth entities notify their responsible Minister, as soon as practicable, of any significant issue that has affected the entity. A significant issue, under section 19 of the PGPA Act, includes significant non-compliance with the finance law.

The Finance Minister requires that accountable authorities also notify the Finance Minister of instances of significant non-compliance with the finance law reported to their responsible Minister.

The guidance below assists entities in reporting significant non-compliance by providing guidance on:

  • what constitutes significant non-compliance with the finance law
  • the need for accountable authorities to notify their responsible Minister, and the Finance Minister as soon as practicable, of any significant non-compliance with the finance law
  • the associated annual reporting requirements.

The guidance was updated in May 2019 to clarify expectations of accountable authorities in reporting significant non-compliance with the finance law. The enhanced guidance:

  • clarifies that significant non-compliance involving breaches of the general duties of officials (s.25 to 29 PGPA Act) should only be reported where there is a connection to the management of public resources (defined s.8 PGPA Act)
  • clarifies what constitutes ‘significant’ non-compliance with the finance law. It includes a decision-making flow chart at Appendix A, and illustrative case studies
  • provides further guidance on the process for reporting significant non-compliance, including a model letter to the Finance Minister at Appendix B
  • includes requirements and suggestions for reporting significant non-compliance with the finance law in entities’ annual reports.

Related guidance:

Contact information: The contact for this topic is pmra@finance.gov.au.

Last updated: 10 May 2019