version: May 2025
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AAIs Quick Guide
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Delegations and Authorisations
Delegations and authorisations set out legal powers and functions Agency officials have under different legislation. The delegations and authorisations specific to the Agency are Financial Authorisations, Human Resource Delegations and NDIS Operations Delegations.
Financial Authorisations
Through the Accountable Authority Instructions (AAIs), the Board issues the Agency’s Financial Authorisations. The Financial Authorisations ensure the Board is able to meet its governance, risk
management and oversight duties under the Public Governance, Performance and Accountability Act 2013 (PGPA Act) and provides the framework for managing the Agency’s financial resources.
Human Resource Delegations
The Public Service Act 1999 (PS Act) provides the CEO (as employer) with powers and functions in relation to the employment and management of employees. The CEO has delegated some of these powers and functions to particular positions. For further information, refer to the HR Delegations.
NDIS Operations Delegations
The National Disability Insurance Scheme Act 2013 (NDIS Act) enables the CEO to delegate to an official any of the powers conferred to them under the Act. The delegations of power and function under the NDIS Act include, for example, decisions that relate to access, planning, compensation, review of plans, review of decisions and debt recovery. A person must comply with any directions given by the CEO when exercising those powers or functions under the NDIS Act and outlined in the NDIA Act 2013
Operations Instrument of Delegation. The Financial Authorisations have spending limits
Financial Authorisations are capped at a value, or at the level of available funds under the official’s control. It is the responsibility of all officials to know the relevant thresholds under the Financial Authorisations and to satisfy themselves that any action they take is in accordance with the Accountable Authority Instructions (AAls) and Financial Authorisations. The Financial Authorisations are located in section 9 of the AAls.
Financial Authorisations are inclusive of all taxes and charges (including GST) and are maximum limits applicable per purchasing decision. Each value threshold is based on the whole-of-life value of the commitment. Extensions to commitments and other increases in value (or risk profile) must be approved based on the cumulative whole-of-life value of the commitment (not just the increase) unless otherwise specified.
Principles of the Financial Authorisations
The Financial Authorisations reflect the organisational structure. A Financial Authorisation can only be exercised if there is sufficient uncommitted funds available within the functional budget responsibility of the official.
Officials acting in a role within the Agency will automatically assume delegations and authorisations for that position for the period that the acting arrangement is in place.
You must not authorise or approve your own expenditure, e.g travel.
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Contingent liabilities need to be considered
Contingent liabilities must be factored into the total sum (on a most probable expenditure basis). Any commitment containing a contingent liability must be reviewed by Legal Services prior to entering into the commitment. You should also refer to the AAls Quick Guide - Indemnities and other contingencies.
Financial Authorisation categories
Financial Authorisation Description
Financial Authorisation 1 Approve proposed expenditure of Agency Funds (Program 1.2)
Financial Authorisation 2 Approve proposed expenditure of Scheme Funds (Program 1.1) Financial Authorisation 3 Enter or vary an Arrangement
Financial Authorisation 4 Manage a Debt
Financial Authorisation 5 Asset Revaluations
Financial Authorisation 6 Disposal of Agency Assets
Financial Authorisation 7 Agency Asset Write-offs
Financial Authorisation 8 Investments
More Information and additional guidance:
Contact the Finance Service Desk for more information. For additional guidance, refer to the:
e Accountable Authority Instructions and Financial Authorisations
e AAls Quick Guide - Duties of Officials
e AAls Quick Guide - Indemnities and other contingencies
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ndis
AAIs Quick Guide
The contents of this document are OFFICIAL
Duties of Officials
An official is an individual who is in or forms part of the Agency. Under the Public Governance Performance and Accountability Act 2013 (PGPA Act), officials include: members of the Accountability Authority of the Agency (the Board); staff engaged under the Public Service Act 1999 (PS Act); and officers or employees of the Commonwealth, state or territory.
As an official, you must exercise your powers and perform your functions under the PGPA Act and rules in accordance with certain standards of behaviour. Sections 25-29 of the PGPA Act impose the following duties on all officials:
PGPA Duty Description
Section
Section 25 Duty of care and You must take a reasonable amount of care when exercising diligence your powers, performing your functions and discharging your
duties. You must assess the potential consequences of your actions and do what a reasonable person in the same position and situation would do.
Section 26 Duty to act honestly, You must act honestly, work towards Agency outcomes, and in good faith and fora actin away that you genuinely believe is in the best interests proper purpose of the Agency.
Section 27 Dutyinrelationtouse You must not use your position improperly with the intention of position to gain an advantage for yourself or another person or to
cause harm to the Agency, the Commonwealth or anyone else.
Section 28 Duty inrelationtouse You must not use information obtained as a result of your of information position with the intent to gain an advantage for yourself or
another person, or, to cause harm to the Agency, the Commonwealth or anyone else.
Section 29 Duty to disclose You have a duty to disclose any material personal interests material personal that you have that relates to the affairs of the Agency. You interests must disclose any conflict of interest, whether real or
perceived. Key points
The duties in the PGPA Act are consistent with duties in APS Code of Conduct. For APS employees, adherence with the APS Code of Conduct will ordinarily meet the requirements of the duties under the
PGPA Act.
Officials who do not discharge their general duties can be subject to employment sanctions, including termination of employment (for staff) or termination of appointment (for Board members or office
holders).
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Contractors (including Executive Placement Program officers (EPPs)) and consultants must comply with the relevant terms of their contract, including the functions of the PGPA Act where applicable. For example, complying with relevant policies and the Fraud and Corruption Control Plan, maintaining appropriate records, disclosing material personal interests and exercising Financial Authorisations.
Case Study:
Joshua is an official and must act in accordance with the duties of officials when exercising a power, authorisation, or function under the PGPA Act.
Scenario 1: Joshua has been given a mobile phone so he can perform his functions as an official. Joshua leaves the phone in a public place and it is stolen. Joshua has not exercised due care or diligence and should have ensured the security of the phone to prevent it from being stolen. Scenario 2: Sandy has asked Joshua if she can use a fleet vehicle to run some personal errands. Sandy has offered to reimburse the Agency for the costs of her personal use. Joshua refuses the request; to do otherwise would be to fail to act honestly, in good faith and for proper purposes. Scenario 3: Joshua sits on a recruitment panel. After the closing date for applications, Joshua discovers that his best friend from university has applied for the role. This is a conflict of interest and must be disclosed. More Information and additional guidance: Contact the Finance Service Desk for more information. For additional guidance, refer to the:
e Accountable Authority Instructions and Financial Authorisations
e Department of Finance - General Duties of Officials (RMG 203)
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Contingent liability
A contingent liability is a potential liability that may occur, depending on the outcome of an uncertain future event.
Types of contingent liabilities
Indemnity A legally binding promise whereby the Agency undertakes to accept the risk of loss or damage another party may suffer.
Guarantee A promise whereby the Agency assumes responsibility for the debt, or performance of the obligations of, another party on default of its obligation.
Warranty A promise whereby the Agency provides certain assurances to the other party to an
arrangement. Liability A liability cap or limit may result in the creation of a contingent liability. Prior to cap entering into an arrangement with a liability cap, advice should be obtained from
Legal Services.
Requirements for entering into an arrangement that involves a contingent liability
You cannot enter into an arrangement that involves a contingent liability unless an official with the required authorisation has approved it prior to entering into the arrangement. Refer to section 3.8 of the Accountable Authority Instructions (AAls).
The application and approval to enter an arrangement with a contingent liability must be recorded in the Financial Management and Compliance System (FMCS).
The AAls include an exception for vehicle rentals, venue and equipment hire arrangements and car park licences. These exceptions are listed below.
AAI exceptions
If you are organising vehicle rentals, venue and equipment hire or a car park licence, you are covered by exception if:
the arrangement is occurring within Australia;
the arrangement is part of official Agency business;
the equipment hire is limited to audio/visual, or furniture for stalls;
the likelihood of unsociable behaviour is remote;
the indemnity clause does not cover costs of civil or criminal penalties; and
where subcontractors are engaged, the services will be limited to audio/visual services, catering, or non-construction set up of stalls.
If you answer yes or not applicable to all of the above points then you can proceed without obtaining further approval for the indemnity provision.
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Liability cap A liability cap may result in the creation of a contingent liability, if:
e it involves limiting a supplier’s contingent liability to a third party so that the Agency is liable to the third party for any excess above that cap; or
e it limits a supplier’s exposure for damage the supplier has suffered itself, so that the Agency is liable to the supplier for any excess.
All contracts that include a liability cap should be referred to the Procurement Branch using the Procurement Service Desk and Legal Services for review to determine if the cap constitutes a contingent liability.
Implications of contingent liabilities on the Agency’s insurance coverage
Section 18(3) of the Comcover Statement of Cover sets out indemnity terms and conditions. Comcover will not pay for a liability arising out of any indemnity unless:
a. the liability would have arisen in the absence of such indemnity; or b. the indemnity is contained in a contract where the contract was entered into prior to 1 July 2004; or c. the Agency has followed Australian Government policy on issuing and managing indemnities and, after making reasonable inquiries, the Agency has assessed:
i. the likelihood of the event giving rise to the liability occurring as being less than 5%; and ii. the most probable expenditure that would need to be made if the event giving rise to the liability occurred as being less than $5,000,000.
If the Agency is considering entering into an arrangement where the assessed exposure exceeds the Comcover thresholds, the Risk Advisory Branch must be consulted to review the proposal and to consult with Comcover.
More Information and additional guidance:
Contact the Finance Service Desk for more information. For additional guidance, refer to the:
e Accountable Authority Instructions and Financial Authorisations
e Finance Policies, Chapter 2, General Insurance
e Department of Finance - Indemnities, Guarantees and Warranties
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