Governance – G3.1: National Partnership Agreements ... · Web viewAppendix C16 Appendix D17...

Treasurer’s DirectionsGovernance – G3.1: National Partnership Agreements, Implementation Plans, Project Agreements and Project Plans

Statement of Intent

This Direction provides information on the design principles, and process of negotiation and approval of National Partnership Agreements, Implementation Plans, Project Agreements and Project Plans.

Summary: Main Features

● Agencies involved in the development of draft National Partnership Agreements, Implementation Plans, Project Agreements, and Project Plans (Commonwealth Funding Agreements) must follow the process set out in these Treasurer’s Directions.

● Commonwealth Funding Agreements must align with the Northern Territory Government’s strategic policy and deliver benefits to Territorians.

● Commonwealth Funding Agreements must be consistent with the design principles of the Intergovernmental Agreement on Federal Financial Relations, with a focus on outcomes.

● Agencies must provide a copy of any new or amended Commonwealth Funding Agreements to the Department of Treasury and Finance and the Department of the Chief Minister (Central Agencies) as soon as possible after receipt from the Commonwealth.

● In general, Agencies are to lead negotiation of Commonwealth Funding Agreements, except for whole-of-government initiatives, which require coordination by Central Agencies.

● Central Agencies are to provide advice, when required, throughout the drafting, negotiation and approval processes outlined in Appendices A, B and C.

● National Partnership Agreements are signed by the Chief Minister, usually following endorsement from the Treasurer and Portfolio Minister, but may require prior endorsement by Cabinet.

● Implementation Plans, Project Agreements and Project Plans are generally signed by Portfolio Ministers, but may require prior endorsement by Cabinet, or the Chief Minister and Treasurer.

● Ministerial correspondence seeking endorsement of Commonwealth Funding Agreements should include relevant information and analysis of issues set out at Appendix D.

● Agencies are responsible for the financial risks associated with not achieving agreed performance measures of Commonwealth Funding Agreements and are to fund any resultant budgetary shortfalls from within existing resources.

● Agencies must notify Central Agencies of any expected changes to the amount or timing of funding under Commonwealth Funding Agreements as soon as possible.

● The Australian National Audit Office can conduct a performance audit of a Territory Agency receiving Commonwealth funding.

DEPARTMENT OF TREASURY AND FINANCE

Governance – G3.1: National Partnership Agreements, Implementation Plans, ProjectAgreements and Project Plans

Contents Statement of Intent 1

Agency Roles and Responsibilities 3Risk Management Approach to Determining the Consultation and Approval Process 3

Development and Negotiation Process 4Approval Process 5

Design Principles 6Funding 7

Performance Indicators and Benchmarks 8Reporting Arrangements 8

Reviews 9Expiring Agreements 10

Variation of Agreements 10Performance Audits 10

G3.13 Glossary 12Appendix A 14

Appendix B 15Appendix C 16

Appendix D 17

Authorities Financial Management Act

Northern Territory (Self-Government) Regulations1978 (Cth)

References Department of the Chief Minister’s Guidance on Commonwealth Funding Agreements

Council on Federal Financial Relation – Toolkit for Drafters of New Agreements

Intergovernmental Agreement on Federal Financial Relations

Other Treasurer’s Directions

Cabinet Handbook

ContactsDepartment of Treasury and Finance, Intergovernmental Relations Unit

Email: [email protected]

Department of the Chief Minister, Strategic and Federal Policy Unit

Email: [email protected]

DEPARTMENT OF TREASURY AND FINANCE of 18

mailto:[email protected]

https://dcm.nt.gov.au/__data/assets/pdf_file/0018/252216/Northern_Teritory_Government_Cabinet_Handbook.pdf

http://www.treasury.nt.gov.au/BudgetAndFinance/Pages/Treasurer's-Directions.aspx

http://www.federalfinancialrelations.gov.au/content/intergovernmental_agreements.aspx

http://www.federalfinancialrelations.gov.au/content/guidelines_for_new_nps.aspx


Agency Roles and Responsibilities

G3.1.1 Agencies must provide a copy of all new or amended Commonwealth Funding

Agreements to the Department of Treasury and Finance and the Department of the Chief Minister (Central Agencies) as soon as possible after receipt from the Commonwealth.

Central Agencies will provide advice on whether or not Commonwealth Funding Agreements require endorsement by Cabinet or the Chief Minister and Treasurer in accordance with the Risk Management Approach outlined in Section G3.1.2.

(i) In general, Agencies are to lead the negotiation of Commonwealth Funding Agreements, except for whole-of-government initiatives, which require coordination by Central Agencies.

(ii) Central Agencies are to provide advice, when required, throughout the drafting, negotiation and approval processes of Commonwealth Funding Agreements.

(iii) Where it has been decided that Cabinet, or the Chief Minister and Treasurer should endorse a Commonwealth Funding Agreement, Agencies must provide progress updates to Central Agencies as negotiations with the Commonwealth progress, and seek feedback on all drafts.

(iv) The Agency responsible for coordination and negotiation of the Commonwealth Funding Agreement is to prepare the documentation required to seek relevant Ministerial endorsements and/or approvals.

(v) Agencies must provide Central Agencies with a copy of all signed Commonwealth Funding Agreements.

(vi) Collaboration between Central Agencies and Portfolio Agencies in negotiating Commonwealth Funding Agreements is required to ensure sound agreement design, through combining Agencies’ expertise in policy and service delivery, with Central Agency experience and expertise in Commonwealth-state financial relations.

Risk Management Approach to Determining the Consultation and Approval Process

G3.1.2 Endorsement by Cabinet or the Chief Minister and Treasurer may be required prior to

Ministerial signature of Implementation Plans, Project Agreements and Project Plans, where they are deemed to be high risk, high value, of strategic importance, or are to fund new infrastructure.

Central Agencies will provide advice on whether or not Commonwealth Funding Agreements require endorsement by Cabinet or the Chief Minister and Treasurer prior to Ministerial signature.

When endorsement by Cabinet or the Chief Minister and Treasurer is required, advice from Central Agencies should be sought throughout the negotiation of the Commonwealth Funding Agreement.

(i) The Chief Minister signs National Partnership Agreements, following endorsement by the Treasurer and the relevant Portfolio Minister/s.






(ii) Portfolio Ministers sign Implementation Plans, Project Agreements and Project Plans.

(iii) Following provision of draft Implementation Plans, Project Agreements and Project Plans to Central Agencies, officers will determine whether or not endorsement by Cabinet or the Chief Minister and Treasurer is required prior to Ministerial signature.

(iv) Considerations will include whether or not the draft Agreement:

is high-risk;

includes high-value funding;

is of strategic importance;

includes infrastructure funding; or

outlines significant details regarding the funding and performance measures for the Territory.

(v) The need for Cabinet consideration of Commonwealth Funding Agreements also depends on whether or not the Agreement represents a new policy or service arrangement and whether or not Cabinet has already endorsed the new policy or service arrangement presented in the Agreement.

Development and Negotiation Process

G3.1.3 Schematic diagrams outlining the development, negotiation and approval processes for

Commonwealth Funding Agreements are set out at Appendices A, B and C. Agencies are to engage with Central Agencies, where required, throughout the

development and negotiation process. The Commonwealth usually prepares initial drafts of National Partnership Agreements

and Project Agreements. States are generally responsible for developing Implementation Plans and Project

Plans.

(i) The development of National Partnership Agreements or Project Agreements occurs following identification of an area for policy collaboration between the Commonwealth and states and territories (states).

(ii) The Northern Territory has discretion to determine whether or not to enter into Commonwealth Funding Agreements proposed by the Commonwealth.

(iii) The Commonwealth usually provides an initial draft National Partnership Agreement or Project Agreement for states’ consideration, and seeks feedback on the proposed terms of the Agreement from states.

(iv) When reviewing draft Commonwealth Funding Agreements, Agencies should refer to the range of issues outlined at Appendix D (service delivery, financial, cross portfolio, legal and accountability issues) to frame analysis, in order to ensure due consideration of issues from a whole-of-government perspective.

(v) In general, negotiations should focus on ensuring that:

the specified outcomes, outputs and performance measures are appropriate;



the proposed level of funding is adequate to meet the proposed targets; and

the draft Agreement is consistent with the principles of the Intergovernmental Agreement on Federal Financial Relations.

(vi) Where it has been decided that Cabinet, or the Chief Minister and Treasurer should endorse a Commonwealth Funding Agreement, Agencies must provide progress updates to Central Agencies as negotiations with the Commonwealth progress, and seek feedback on all drafts.

(vii) Templates for all Commonwealth Funding Agreements are available at the Council on Federal Financial Relations (CFFR) website.

(viii) Implementation Plans have the same design principles as National Partnership Agreements (see Section G3.1.5) and should be developed in conjunction with the overarching National Partnership Agreement. Where this is not possible, the Implementation Plan should be developed within six months of the National Partnership Agreement being signed.

(ix) For whole-of-government initiatives, the Department of Treasury and Finance and the Department of the Chief Minister are to lead negotiation and coordination of Commonwealth Funding Agreements, while Portfolio Agencies are to draft relevant Implementation Plans.

Approval Process

G3.1.4 Schematic diagrams outlining the development, negotiation and approval processes for

Commonwealth Funding Agreements are set out at Appendices A, B and C. National Partnership Agreements are signed by the Chief Minister, following

endorsement by the Treasurer and Portfolio Minister, and advice from the Department of the Chief Minister. They may require prior endorsement by Cabinet, in accordance with the Risk Management Approach outlined in Section G3.1.2.

Project Agreements, Implementation Plans and Project Plans are signed by the relevant Portfolio Minister, but may require prior endorsement by Cabinet or the Chief Minister and Treasurer, in accordance with the Risk Management Approach outlined in Section G3.1.2.

Ministerial correspondence seeking approval of Commonwealth Funding Agreements should include relevant information and analysis of issues set out at Appendix D.

(i) For Commonwealth Funding Agreements requiring Cabinet approval, Cabinet Submissions must be prepared and submitted in accordance with the processes and procedures set out in the Cabinet Handbook.

(ii) Appendix A outlines the negotiation and approval process for National Partnership Agreements and Commonwealth Funding Agreements requiring Cabinet approval.

(iii) Appendix B outlines the negotiation and approval process for Implementation Plans, Project Agreements and Project Plans requiring endorsement by the Chief Minister and Treasurer.

(iv) Appendix C outlines the negotiation and approval process for Implementation Plans, Project Agreements and Project Plans not requiring endorsement by the Chief Minister and Treasurer.



(v) Commonwealth Funding Agreements that have been approved by Cabinet do not require further Ministerial approval or endorsement.

(vi) After being signed by the appropriate Territory Minister, Commonwealth Funding Agreements are submitted to the appropriate Commonwealth Agency, with copies provided to Central Agencies.

(vii) All Commonwealth Funding Agreements are made publicly available through the CFFR website. Implementation Plans and Project Plans may in some instances be modified for public use where sensitivities exist.

Design Principles

G3.1.5 Commonwealth Funding Agreements are to be consistent with the design principles

agreed under the Intergovernmental Agreement on Federal Financial Relations, available at the CFFR website.

Commonwealth Funding Agreements should align with the Northern Territory Government’s strategic policy and deliver a benefit to the Northern Territory and Territorians.

(i) Agencies should refer to the templates and guidance material for Commonwealth Funding Agreements available at the CFFR website.

(ii) Key design principles for Commonwealth Funding Agreements set out under the Intergovernmental Agreement on Federal Financial Relations include:

Commonwealth Funding Agreements are to focus on the achievement of outputs and outcomes and avoid the use of financial and other input controls, such as clauses requiring: maintenance of effort, cost matching/sharing, income and expenditure reporting, acquittals and auditing, or prescribing: how funds are to be spent, return of unspent funds/quarantine of savings, procurement methods and staffing arrangements and costs.

Commonwealth Funding Agreements are to reinforce the core principle of reducing Commonwealth prescriptions on service delivery and not provide details of how the Territory will manage individual projects or programs.

Commonwealth Funding Agreements are not to create an excessive administrative and/or compliance burden for the Territory. Commonwealth Funding Agreements are to be drafted in plain English and may include limited contextual or historical content. Policy background, advocacy content, personal information or information that might affect procurement arrangements should not be included.

Where a Commonwealth Funding Agreement is in an area within scope of any National Agreement, the National Partnership Agreement should link directly to the objectives, outcomes and outputs in the relevant National Agreement.



Funding

G3.1.6 A payment schedule is to be incorporated into all National Partnership Agreements and

Project Agreements, or the associated Implementation Plan or Project Plan. Agencies are responsible for the financial risks associated with not achieving agreed

performance measures, and are to meet any associated funding shortfalls from within existing resources, unless alternate arrangements have been approved by Cabinet.

Agencies must notify Central Agencies when they become aware that they will not receive the full funding allocation available under an Agreement.

(i) Agencies must address the financial implications and risks of all draft Commonwealth Funding Agreements when seeking Ministerial approval.

(ii) Funding schedules must outline the type and timing of payments, relevant milestones or performance benchmarks to trigger payments and any financial contributions required of the Territory.

(iii) Commonwealth Funding Agreements may include Commonwealth funding only, or a combination of Commonwealth and state funding contributions.

(iv) National Partnership payments are the main category of funding provided under Commonwealth Funding Agreements, but they may also include Commonwealth Own-Purpose Expense payments.

(v) National Partnership payments are provided to:

support the delivery of specified outputs or projects, including to improve the quality or quantity of service delivery (project payments);

facilitate reforms (facilitation payments); or

reward those jurisdictions that deliver on nationally significant reforms (reward payments).

(vi) Commonwealth Funding Agreements may include graduated performance benchmarks and partial payment arrangements, so that the Territory may receive some proportion of total available funding for an activity where it has only partially achieved the agreed outcomes.

(vii) Commonwealth funding may be determined on the basis of a competitive bidding process. Agencies are to provide copies of Territory bids to Central Agencies.

(viii) Reward funding that is not required to be allocated to an agreed portfolio area is untied Territory Government revenue.

(ix) Where a Commonwealth Funding Agreement requires reward payments to be tied for a specific purpose, this refers to a broad portfolio area rather than a specific program.



Performance Indicators and Benchmarks

G3.1.7 Performance indicators should be few in number and reflect the most relevant

information to report progress in achieving the objectives of the Commonwealth Funding Agreement.

Performance indicators and benchmarks must not be input-focused. When Agencies become aware that funding is at risk due to failure to achieve

performance benchmarks or milestones, they must inform Central Agencies as soon as possible.

(i) All National Partnership Agreements and Project Agreements or the associated Implementation Plans or Project Plans are required to include a performance framework that specifies how progress towards objectives and outcomes or the achievement of project milestones will be measured.

(ii) Components of a performance framework may include:

a list of performance indicators;

information on the data collections that will be used for quantitative indicators;

the performance benchmarks or milestones on which payments are tied; and

a timetable for the delivery of performance information to Commonwealth Agencies or third parties.

(iii) Performance indicators are to be relevant, accurate, meaningful, understandable, timely, measurable, comparable across jurisdictions and over time (if applicable), administratively simple and cost effective; and must be practical and achievable in the Territory-specific context.

(iv) Where appropriate, performance indicators should be consistent with those in relevant National Agreements.

(v) Where Commonwealth Funding Agreements include reward payments, eligibility should be assessed by an independent body.

Reporting Arrangements

G3.1.8 Reporting requirements specified in Commonwealth Funding Agreements are not to

place an undue administrative or compliance burden on the Territory. Commonwealth Funding Agreements are not to include financial reporting

requirements. A separate formal acquittals process exists for this purpose. An Agency is responsible for achieving the outcomes and performance milestones

required under Commonwealth Funding Agreements and for submitting required performance reports to the Commonwealth.



(i) Commonwealth Funding Agreements are to clearly specify all reporting requirements, performance indicators and benchmarks. They should not require in depth reporting about service delivery arrangements.

(ii) In general, Project Agreements are to have less onerous reporting requirements than National Partnership Agreements. Existing forms of progress reports should be used if appropriate to avoid duplication.

(iii) Performance reporting should be limited to the minimum amount of information necessary for the assessment of performance against the outcomes and objectives of the Agreement.

(iv) Agencies are responsible for determining their performance reporting systems and requirements.

(v) Performance reports are to be agreed by an Agency’s Chief Executive Officer and Chief Financial Officer, prior to being provided to the Commonwealth.

(vi) Reporting cycles are to be on a financial year basis (calendar year basis for the education sector), and in general, should not be more frequent than six monthly.

(vii) Territory expenditure of Commonwealth tied funding is reported to the Commonwealth by the Department of Treasury and Finance, consistent with acquittal process set out in the Intergovernmental Agreement on Federal Financial Relations.

(viii) The Department of Treasury and Finance reports total annual expenditure for each Commonwealth Funding Agreement within six months of the end of financial year, including Territory co-contributions.

Reviews

G3.1.9 National Partnership Agreements are to include provisions for review, where

appropriate. Central Agencies must be consulted at the commencement of all reviews of

Commonwealth Funding Agreements.

(i) The Commonwealth is responsible for initiating reviews of Commonwealth Funding Agreements, in consultation with states.

(ii) Where a National Partnership Agreement is developed to deliver a significant reform initiative, the inclusion of a mid-term review provision may be warranted.

(iii) A mid-term review is to consider the achievement of objectives, outcomes and outputs as well as consistency with the design principles of the Intergovernmental Agreement on Federal Financial Relations. Mid-term reviews provide a means of identifying whether any remedial action is required to ensure that agreed outcomes and/or outputs are achieved by the time the Agreement expires.

(iv) A final review may be warranted in addition to, or instead of a mid-term review. Final reviews are to provide a means of assessing whether policy objectives and outcomes of National Partnership Agreements have been achieved, to inform decisions regarding the treatment of expiring Agreements.

(v) Final Reviews of Commonwealth Funding Agreements that deal with complex issues or include significant capital components should be completed at least 12 months prior to



scheduled expiry. Reviews may be conducted independent of, or jointly by, the parties to the Agreement.

(vi) Copies of all review reports should be provided to Central Agencies.

Expiring Agreements

G3.1.10 Agencies are to consult with Central Agencies on how to manage expiring

Commonwealth Funding Agreements.

(i) Consideration should be given to whether or not an expiring Agreement will be renewed, whether or not the associated programs will continue, and if so, how they will be funded.

(ii) The Commonwealth or states may decide to withdraw from a Commonwealth Funding Agreement at any stage, including prior to its scheduled expiry.

(iii) Agencies should develop exit strategies, with consideration of how future arrangements should be managed, including the impact of cessation of funding on continuing service provision, non-government organisations, and staffing levels.

(iv) Following consultation with Central Agencies, Agencies must engage in discussions with the Commonwealth to negotiate the arrangements for cessation, extension or renewal of Commonwealth Funding Agreements.

Variation of Agreements

G3.1.11 The process for variation of Commonwealth Funding Agreements is consistent with that

for development. Agencies are to consult Central Agencies on all proposed variations to Agreements.

(i) Variations to Commonwealth Funding Agreements are only to be made as a result of significant policy or performance measurement issues and must adhere to the design principles outlined in Section G3.1.5 and on the CFFR website.

(ii) Approval for variations to Commonwealth Funding Agreements must follow the same process for new Agreements.

(iii) Variations to Commonwealth Funding Agreements should not be undertaken without consideration of the net benefits of this approach compared to developing a new Agreement.

Performance Audits

G3.1.12 The Australian National Audit Office is able to conduct a performance audit of Territory

Agencies receiving Commonwealth funding under the Intergovernmental Agreement on Federal Financial Relations.



(i) Performance audits involve the independent and objective assessment of a Territory Agency’s programs, policies, projects or activities for which Commonwealth funding has been provided. The audit can include consideration of cost minimisation, efficiency, effectiveness and legislative and policy compliance.

(ii) The Commonwealth’s Auditor-General Act 1997 empowers the Australian National Audit Office (ANAO) to conduct a performance audit of a Territory Agency that receives Commonwealth funding for a particular purpose.

(iii) Consultation will take place with the Department of the Chief Minister, the Auditor General and the Portfolio Agency in relation to any proposed audits. Where possible, the Northern Territory Auditor General will have Agreements flagged for audit placed on the Northern Territory’s Audit list.

(iv) Performance audits will generally involve the commitment of resources by both the ANAO and the Agency being audited.

(v) A draft audit report will be provided to the relevant Portfolio Agency and may be provided to the Territory’s Auditor General for comment.

(vi) A final audit report will be provided to the Agency and may be provided to the Territory’s Auditor General. The report will be tabled in the Federal parliament and will be made publicly available.

(vii) Copies of all audit reports should be provided to Central Agencies.

(viii) The ANAO’s publication Guidelines for the Conduct of Performance Audits can be accessed through its website.



G3.13 Glossary

Term Definition

Commonwealth Own-Purpose Expenditure

Expenditure by the Commonwealth in the conduct of its own general government sector activities, including for the purchase of goods and services and associated transfer payments. They are the only intergovernmental financial transfers that are not covered by the payment arrangements agreed under the Intergovernmental Agreement on Federal Financial Relations.

Implementation Plan A bilateral Agreement associated with a National Partnership Agreement which provides additional detail as to how a jurisdiction intends to achieve the outcomes specified in the National Partnership Agreement. Not all National Partnership Agreements require Implementation Plans.

Input Control A prescription on the manner in which an outcome and/or output is delivered, or a prescription on reporting content that is inconsistent with the Intergovernmental Agreement on Federal Financial Relations, such as income and expenditure reporting or reporting on staffing arrangements and costs.


A multilateral Agreement providing the overarching framework for financial relations between the Commonwealth and the states and territories. It aims to improve the quality and effectiveness of government services by reducing Commonwealth prescriptions on service delivery, providing increased flexibility in the way states and territories deliver services to the Australian people. It also provides for clearer specification of the roles and responsibilities of each level of government and an improved focus on accountability for the achievement of outcomes. It is not legally enforceable.

Milestone An action or event marking completion of a project or phase of a project. These should be clearly defined, understandable in terms of achievement or non-achievement, verifiable and not open to any subjectivity.

National Agreements Ongoing Agreements established under the Intergovernmental Agreement on Federal Financial Relations, guiding the Commonwealth and the states and territories in the delivery of services across key sectors (healthcare, education, skills and workforce development, disability services, affordable housing and Indigenous reform). National Agreements broadly define the objectives, outcomes, outputs and performance indicators for each sector, and clarify the roles and responsibilities of the parties.

National Partnership Agreements

Time-limited Agreements established under the Intergovernmental Agreement on Federal Financial Relations which provide financial support from the Commonwealth to states and territories for the delivery of reforms, service delivery improvements and/or projects of national importance. National Partnership Agreements are required to focus on outcomes and/or outputs, and payments should be aligned with the achievement of outcomes and outputs, as measured through clearly



Term Definition







specified performance indicators within the Agreement. They are not legally enforceable.

Outcomes The impact a government activity is expected to have on community wellbeing. Outcomes are specific goals for change and should be strategic, high-level and observable and expressed in clear, measurable and achievable terms.

Outputs The projects or services being delivered by governments to achieve outcomes.

Performance benchmarks

Quantifiable changes in a performance indicator, usually expressed in respect of a period of time. Performance benchmarks should be few in number, objective and measurable.

Performance indicators Data which informs the community about how governments are progressing towards achieving objectives, outcomes and outputs. Performance indicators should provide sufficient evidence to the community that funds are achieving or progressing satisfactorily towards the achievement of desired outcomes and outputs.

Project Agreement A simpler form of a National Partnership Agreement, used where the project or payment is considered straightforward, low value and/or low risk. Project Agreements typically include less detail, with fewer reporting requirements and payments than National Partnership Agreements. Project Agreements do not require Implementation Plans,



Term Definition







but sometimes require a Project Plan or Schedule.

Project Plan Similar to an Implementation Plan. A project plan is a bilateral Agreement associated with a Project Agreement, and is intended to provide additional detail as to how an individual jurisdiction intends to achieve the outcomes specified in the overarching Agreement. Not all Project Agreements require Project Plans.

Schedule An attachment to an Agreement setting out additional detail. Sometimes used to provide state-specific details similar to an Implementation Plan.

Specific Purpose Payment

Tied Commonwealth funding to the states and territories for use in providing government services in key sectors. States and territories are required to spend each Specific Purpose Payment in the service sector relevant to the payment, but they have full budget flexibility to allocate funds within that sector as they see fit to achieve any mutually agreed objectives for that sector, as set out in the relevant National Agreement.



Appendix A

Negotiation and Approval Process for National Partnership Agreements (NPAs) and Commonwealth Funding Agreements (Agreements) Requiring Cabinet Approval


Commonwealth Agency:Provides draft Agreement to Northern Territory Agency.

Territory Agency: Advises Department of Treasury and Finance and Department of the Chief Minister (Central

Agencies) of draft Agreement and provides agency contact details. Develops Territory position in collaboration with Central Agencies. Commences negotiations with Commonwealth. Seeks Central Agency feedback on each iteration of draft Agreement. When final draft is provided for in-principle agreement, seeks final feedback from Central

Agencies, then either: provides officer-level in-principle agreement to Commonwealth; or continues negotiations until issues are resolved.

Receives signed copy of Agreement from Commonwealth and, based on Central Agencies’ advice, either prepares: cabinet submission seeking Cabinet approval of Agreement; or ministerial to Portfolio Minister from CEO, and joint memo to Chief Minister and

Treasurer, seeking approval of NPA. NB: If Cabinet approval is provided, no further approvals are necessary and the relevant Territory Minister signs the Agreement and submits to the Commonwealth.

Portfolio Minister: Either:

endorses Agreement and forwards joint memo to Treasurer and Chief Minister; or does not endorse Agreement and directs Territory Agency on whether or not to continue

negotiations with Commonwealth.

Treasurer: Seeks advice from Department of Treasury and Finance and decides to endorse/not

endorse Agreement. Advises Chief Minister and Portfolio Minister of decision.

Chief Minister: Seeks advice from Department of the Chief Minister and decides to endorse/not endorse

Agreement. If endorsed, signs agreement and submits to the Commonwealth with letter of acceptance

and provides copy to Agency and Department of Treasury and Finance. Advises Portfolio Minister of decision by signing and returning memo to Portfolio Minister.

NOTE: Allow 10 to 15 working days to complete Ministerial approval


Appendix BNegotiation and Approval Process for Implementation Plans, Project Agreements and Project Plans (Agreements) Requiring Endorsement by the Chief Minister and Treasurer


Commonwealth Agency:Provides draft Commonwealth Funding Agreement (Agreement) to Northern Territory Agency.

Territory Agency: Advises Department of Treasury and Finance and Department of the Chief Minister

(Central Agencies) of draft Agreement and provides agency contact details. Receives advice from Central Agencies that endorsement by Chief Minister and Treasurer

is required prior to Ministerial signature and develops Territory position in collaboration with Central Agencies.

Commences negotiations with Commonwealth. Seeks Central Agency feedback on each iteration of draft Agreement. When final draft is provided for in-principle agreement, seeks final feedback from Central

Agencies, then either: provides officer-level in-principle agreement to the Commonwealth; or continues negotiations until issues are resolved.

Receives signed copy of Agreement from the Commonwealth and prepares briefing from CEO to Territory Minister and joint memo to Treasurer and Chief Minister, seeking endorsement of Agreement.

.


endorses Agreement and forwards joint memo to Treasurer and Chief Minister; or does not endorse Agreement and directs Territory Agency on whether or not to continue

negotiations with Commonwealth.

Treasurer: Seeks advice from Department of Treasury and Finance and decides to endorse/not

endorse Agreement. Advises Chief Minister and Portfolio Minister of decision.

Chief Minister: Seeks advice from Department of the Chief Minister and decides to endorse/not endorse

Agreement. Advises Portfolio Minister of decision by signing and returning memo to Portfolio Minister.

Portfolio Minister: Signs Agreement, forwards to Commonwealth with letter of acceptance, and provides copy to Central Agencies.

NOTE: Allow 10 to 15 working days to complete Ministerial approval


Appendix CNegotiation and Approval Process for Implementation Plans, Project Agreements and Project Plans (Agreements) Not Requiring Endorsement by the Chief Minister and Treasurer


Commonwealth Agency:Provides draft Commonwealth Funding Agreement (Agreement) to Northern Territory Agency.

Territory Agency: Advises Department of Treasury and Finance and Department of the Chief Minister

(Central Agencies) of draft Agreement and provides agency contact details. Receives advice from Central Agencies that Agreement does not require endorsement by

Chief Minister or Treasurer prior to Ministerial signature. Commences negotiations with Commonwealth Agency. Seeks Central Agency advice where required. When final draft is provided for in-principle agreement, either:

provides officer-level in-principle agreement to Commonwealth; or continues negotiations until issues are resolved.

Receives a copy of Agreement signed by relevant Commonwealth Minister and prepares briefing from CEO to Territory Minister seeking approval of Agreement.


approves and signs Agreement and forwards to Commonwealth with letter of acceptance; or

does not approve Agreement and directs agency on whether or not to continue negotiations with Commonwealth

Agency:Advises Central Agencies of Minister’s decision and forwards copy of signed Agreement.


Appendix D

Information and Analysis to be Included in Ministerial Correspondence Regarding Commonwealth Funding Agreements


General information

Parties to the Agreement – bilateral or multilateral? New Agreement or renegotiated/extended? Term of Agreement. Total funding to Territory and funding profile. Territory funding contribution required? Recurrent/capital funding? Frequency of reporting requirements. Details of reporting requirements. Do adequate data reporting systems currently exist? Are payment milestones clearly specified?

Issues for consideration

What are the risks that the Territory will not receive all funding available under the Agreement?

How will this risk be managed? Does the agency have the budget capacity to make any required co-contributions? What are the costs to the Territory other than the required co-contributions? What is the likelihood that the Territory will achieve the milestones? What share of possible funding is the Territory likely to receive? Does the intent of the Agreement align with the Territory’s strategic policy? How does the Agreement align with or integrate other Territory Government services or

policies?

Governance – G3.1: National Partnership Agreements ... · Web viewAppendix C16 Appendix D17...

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