Functional and Efficiency Review could be managed, Australian Public Service staffing, capability considerations and Key Steps potential governance arrangements. 1. Scope 5. Submit An Independent Review Leader is Submit a draft report to Finance to confirm appointed. the report complies with the Terms of FERS will consider: Reference and Contestability Framework the role of the Government entity, its and is sufficiently rigorous. programmes, functions, outcomes and purpose Submit the final report to the Contestability Programme Steering Committee (CPSC), and whether current functions performed within the entity align with in turn, to the Finance Minister. government forward priorities and 6. Implementation policy commitments The actions resulting from FERs will support departmental expenditure Commonwealth Ministers to align public ability to achieve results, including resources to the government’s policy and optimal management structure, programme priorities, achieve planned contract management and value for reforms, and address contemporary money in consultancies pressures while ensuring a responsible and any barriers preventing the entity streamlined public sector. from achieving its current intended outcomes and, where relevant, Roles and Responsibilities propose solutions to address these Finance and the entity will agree to concerns. governance arrangements at the 2. Analyse commencement of the Review process. This will include high-level engagement between The Independent Review Leader will departments and general oversight by the comprehensively assess the feasibility and CPSC, led by Finance. efficiency of alternative approaches for addressing government priorities including The Independent Review Leader will report identifying the benefits, costs, risks and any regularly on the Review to relevant other relevant considerations (including stakeholders. Regular reporting provides legal, regulatory and cultural assurance that the FER is progressing as considerations). agreed and provides opportunities for feedback and guidance from relevant 3. Assess Alternative Approaches stakeholders. A FER will assess whether a function is being delivered in the most efficient way possible and by the entity most able to do so. In some cases, a FER will look beyond the functions For more information about the an entity undertakes and assess where Contestability Programme similar functions are performed in other W: entities, and if these functions should be transferred or modified. E: T: 02 6215 2991 4. Recommend Actions Analyse implementation and management of the recommended alternative approach/es over the short, medium and long term. Identify the best approaches and make recommendations about the proposed transition path to implement preferred alternatives, including how performance
Functional and Efficiency Review Key Steps 1. Scope An Independent Review Leader is appointed. FERS will consider: the role of the Government entity, its programmes, functions, outcomes and purpose whether current functions performed within the entity align with government forward priorities and policy commitments departmental expenditure ability to achieve results, including optimal management structure, contract management and value for money in consultancies any barriers preventing the entity from achieving its current intended outcomes and, where relevant, propose solutions to address these concerns. 2. Analyse The Independent Review Leader will comprehensively assess the feasibility and efficiency of alternative approaches for addressing government priorities including identifying the benefits, costs, risks and any other relevant considerations (including legal, regulatory and cultural considerations). 3. Assess Alternative Approaches A FER will assess whether a function is being delivered in the most efficient way possible and by the entity most able to do so. In some cases, a FER will look beyond the functions an entity undertakes and assess where similar functions are performed in other entities, and if these functions should be transferred or modified. 4. Recommend Actions Analyse implementation and management of the recommended alternative approach/es over the short, medium and long term. Identify the best approaches and make recommendations about the proposed transition path to implement preferred alternatives, including how performance could be managed, Australian Public Service staffing, capability considerations and potential governance arrangements. 5. Submit Submit a draft report to Finance to confirm the report complies with the Terms of Reference and Contestability Framework and is sufficiently rigorous. Submit the final report to the Contestability Programme Steering Committee (CPSC), and in turn, to the Finance Minister. 6. Implementation The actions resulting from FERs will support Commonwealth Ministers to align public resources to the government’s policy and programme priorities, achieve planned reforms, and address contemporary pressures while ensuring a responsible and streamlined public sector. Roles and Responsibilities Finance and the entity will agree to governance arrangements at the commencement of the Review process. This will include high-level engagement between departments and general oversight by the CPSC, led by Finance. The Independent Review Leader will report regularly on the Review to relevant stakeholders. Regular reporting provides assurance that the FER is progressing as agreed and provides opportunities for feedback and guidance from relevant stakeholders. For more information about the Contestability Programme W: E: T: 02 6215 2991
fact-sheet-functional-and-efficiency-reviews.docx