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Last updated: 17 June 2005
What budget and accountability framework works best?
What is the best budget and accountability framework for your task?
Before you start you need to think about the following:
Do you understand the budget framework and how it is made up? You need to know that:
- outcomes are results or impacts the government wants to achieve—for example, school systems provide their students with high-quality foundation skills and learning outcomes
- outputs are the goods and services produced by agencies on behalf of the government or external organisations or individuals—for example, infrastructure funding for the schools system
- administered items are revenues, expenses, assets and liabilities that the government controls, but which an agency manages on behalf of the government—for example, grants, subsidies, benefit payments.
The outcomes and outputs budget framework was introduced in 1999–2000, but it did not deal explicitly with the treatment of whole of government budget initiatives. The framework is, nonetheless, flexible enough to accommodate whole of government initiatives.
Which of the budget framework flexibilities best suits your whole of government task?
- a single or common outcome where agencies are jointly delivering a specific outcome
- a purchaser–provider arrangement where the lead agency purchases services from one or more agencies but remains accountable for the outcome towards which the activity contributes
- a lead agency model where all responsible agencies are appropriated funds in accordance with their outcome structure but a lead agency is nominated for coordination and reporting
or
- a multi-agency package where there may be no particular benefit from ongoing coordination and reporting.
You will need to talk to the other agencies involved and maybe include the Department of Finance and Administration (Finance) in your meeting. Here are some things to consider for that meeting:
- Will accountability be shared by more than one minister?
- Have you scoped the project and does it include all costs?
- What are the right performance measures? Do evaluations need to occur annually or over a longer period? Is there a need for responsible agencies to report separately— for example, in their Portfolio Budget Statement or annual report?
- Have you agreed on how you will share information with the other agencies involved?
- Have you talked to Finance to help you decide how to advise your minister?
