Second edition Last updated 17 April 2013 Third edition Last updated September 2013 Implementing Machinery of Government Changes i Foreword As many of us in the Australian Public Service know from experience, undergoing a machinery of government change can be challenging. Agencies are required to consider an enormous number of issues and deal with wide-ranging matters, some of which can be very complex and time-consuming. Affected staff need to be kept informed of what is happening; legislative and government policy requirements must be complied with; and for the process to work as smoothly as possible, actions should be undertaken with a cooperative ‘whole-of-government’ spirit. This publication has been designed to provide practical guidance to help agencies implement machinery of government changes. It has been developed jointly by the Australian Public Service Commission and the Department of Finance and Deregulation in consultation with the Department of the Prime Minister and Cabinet, the National Archives of Australia and the Office of the Australian Information Commissioner. The information contained in this publication was developed in consultation with Departmental Secretaries and draws on their extensive experience of machinery of government changes over the years. This third edition has been updated to reflect changes to the Public Service Act 1999 which came into effect on 1 July 2013. In addition, minor revisions have been made to Part 4 (Financial management), new information relating to privacy and freedom of information has been included, and a new case study on winding up an APS agency has been added. We trust that managers and their staff across the Australian Public Service, particularly those undergoing machinery of government changes, will find this guide useful. Stephen Sedgwick AO Australian Public Service Commissioner David Tune PSM Secretary, Department of Finance and Deregulation Implementing Machinery of Government Changes i Contents Foreword ............................................................................................................. i Contents .............................................................................................................. ii Introduction......................................................................................................... 1 Legislative and policy framework ............................................................................................... 1 Legislation ............................................................................................................................................ 1 Relevant guidance ............................................................................................................................... 2 Useful contacts and resources ................................................................................................... 2 Part 1 Machinery of government process ........................................................... 3 1.1 Administrative Arrangements Order ..................................................................................... 3 1.2 General machinery of government changes ........................................................................ 3 1.3 Post-election machinery of government changes ................................................................ 3 1.4 Governance arrangements .................................................................................................. 4 1.5 Name or title changes .......................................................................................................... 4 1.6 Roles of central agencies ..................................................................................................... 5 1.7 Supporting newly created agencies ..................................................................................... 5 1.8 Senior Executive Service cap .............................................................................................. 5 Part 2 Principles and issue resolution ................................................................ 6 2.1 Principles and approach ....................................................................................................... 6 2.1.1 Whole-of-government approach .................................................................................................. 6 Good faith negotiations ........................................................................................................................ 6 Open and honest identification of resource implications ...................................................................... 6 Timely and accurate exchange of information...................................................................................... 7 2.1.2 Constructive and open communication with staff ........................................................................ 7 Providing early advice and assistance to staff ..................................................................................... 7 Consultation ......................................................................................................................................... 7 Acting with integrity .............................................................................................................................. 8 2.1.3 Accountability and compliance with legislation and policy .......................................................... 8 Following established procedural frameworks ..................................................................................... 8 Ensuring adequate records management ............................................................................................ 8 Ensuring appropriate delegations and Chief Executive’s Instructions are in place .............................. 8 2.2 Protocols for resolving the transfer of resources ................................................................. 9 Part 3 Planning ................................................................................................. 10 3.1 Establishing a steering committee ..................................................................................... 10 3.2 Due diligence framework .................................................................................................... 11 3.3 Communication strategy .................................................................................................... 11 3.4 People management strategy ............................................................................................ 11 3.5 Information and communications technology strategy ....................................................... 11 3.6 Records management strategy .......................................................................................... 12 3.7 Indicative timeframe ........................................................................................................... 12 Part 4 Financial management........................................................................... 14 4.1 Outcomes and program structure ...................................................................................... 14 4.1.1 Process for changing outcomes ................................................................................................ 14 4.1.2 Continuation of funding for a function pending a new outcome................................................. 15 4.2 Section 32 determinations .................................................................................................. 15 4.2.1 Annual appropriations ............................................................................................................... 15 4.2.2 Determining the amount to be transferred under section 32 of the FMA Act ............................ 15 4.2.3 Section 32 of the FMA Act 4.2.4 Processing a section 32 request ............................................................................................... 16 4.3 Transfer of functions between FMA Act agencies and CAC Act bodies ............................ 16 4.4 Retaining Prescribed (Relevant Agency) Receipts ............................................................ 16 4.5 Superannuation costs......................................................................................................... 16 4.6 Special appropriations ........................................................................................................ 17 4.6.1 Special Accounts ...................................................................................................................... 17 4.7 Delegations under the FMA Act ......................................................................................... 18 4.8 Assets and liabilities ........................................................................................................... 18 Implementing Machinery of Government Changes ii 4.8.1 Transfer of physical assets ....................................................................................................... 19 4.8.2 Commenced but not finalised procurements ............................................................................. 19 4.8.3 Cost issues ............................................................................................................................... 19 4.8.4 Transfer of employee leave entitlements .................................................................................. 19 4.8.5 Timing of transfers of assets and