Financial management in the AIHW operates within the following legislative framework:
- AIHW Act
- PGPA Act
- Auditor-General Act 1997.
Our internal operations are funded by:
- parliamentary appropriations
- contributions from income received for project work undertaken for external agencies to provide corporate services for that work
- miscellaneous sources, such as bank interest, ad hoc information services and publication sales.
These funds are allocated in a detailed budget process conducted in May–June each year. Funds are spent on:
- project work by our statistical groups
- collaborations with universities that undertake specialist activities
- corporate services, such as financial, human resources, executive support, governance and legal, records management, business improvement and ICT services.
Our externally funded project work is undertaken by our statistical groups. Fees charged for each project are determined using a pricing template set to cover salaries and on-costs, other direct costs and a corporate cost-recovery charge for infrastructure and corporate support. The pricing template is updated each year. Expenditure incurred in each project is accounted for separately and monitored monthly.
The AIHW is required by section 30 of the Public Governance, Performance and Accountability Rule 2014 (PGPA Rule) to comply with the Commonwealth Procurement Rules, which established requirements for Australian Government entities regarding their procurement activities. The procurement rules are available at www.finance.gov.au/commonwealth-procurement-rules.
We comply with the mandatory procedures for all procurements above the $400,000 threshold. We complied with our obligations under the procurement rules in 2018–19.
For purchase contracts with suppliers, we use, wherever possible, template contracts prepared by legal advisers. These template contracts aim to manage risks and ensure value for money through provisions such as: defined deliverables and performance standards linked to milestone payments; necessary insurances and indemnities; intellectual property ownership and requirements; and requirements for privacy and confidentiality.
Purchase contract payments are typically linked to the successful delivery of services.
Most revenue contracts were for provision of services related to projects being managed by our statistical units. Our revenue contracts and standard schedules for memoranda of understanding detail the scope, timing, deliverables and budget for most externally funded projects.
Any contract over $200,000 must be approved by the CEO.