Implementing Machinery of Government Changes: A good practice guide

Appendix: Checklist for implementing MOG changes

The following list provides some suggestions for implementation and issues for consideration.

Not all of these issues will be relevant in every situation. Particular complexities may arise when non-FMA and/or non-APS agencies and entities are involved in a transfer of functions, which are not covered in these Guidelines or in the list below. Issues arising as a result may require legal advice or advice from agencies with policy responsibility for the particular matters.

Planning
	Gaining agency to establish a steering committee or change management team to coordinate implementation of the MOG change, and consider whether the losing agency should be represented on the team.
	Gaining agency to consult losing agency to consider whether a small working group should be established in the losing agency to undertake scoping exercise and answer due diligence questions.
	Gaining agency to establish a due diligence framework and develop a comprehensive list of questions relevant to the transferring functions and programmes including assets and liabilities, contracts register, intellectual property, disputes and litigation, lapsing programmes, staff numbers, and pay and conditions.
Communication
	Gaining agency to develop communication strategy informing employees of the impact of proposed changes, with regular updates as needed. There is a key role to be played by agency heads (and their senior executives) in driving the integration of new areas and staff into their agencies.
	Gaining agency to consider setting up a website page and/or hotline for affected employees, providing advice on what the changes mean for them.
	Gaining agency to consult extensively with affected employees throughout the process and provide opportunities for them to raise any concerns they may have.
Financial management (including taxation issues)
	Memorandums of understanding to be developed covering implementation issues, including decisions regarding costs, payment of invoices, and recovery of moneys.
	Recovery of moneys expended on transition costs to be effected as soon as possible.
	Chief financial officers of losing and gaining agencies to agree on the amount of appropriation and unspent cash balances relating to the transferred function to be transferred via an FMA Act section 32 direction.
	Arrange for section 32 details to be forwarded to Finance.
	Gaining agency to review section 31 agreements and advise Finance if variations are needed.
	Arrange for bank accounts to be renamed and for signatories to be changed.
	Gaining and losing agencies to update financial management systems.
	Gaining agency to liaise with Finance to arrange access to the central budget management system and ensure new responsibilities are reflected in outcomes and outputs framework.
	Administratively transfer, establish, abolish or vary Special Accounts, as required.
	Gaining agency to consider whether outcomes are still appropriate and, if not, seek changes through Additional Estimates or Budget process.
	Gaining agency to revise accounting and financial reporting systems as appropriate.
	Gaining and losing agencies to arrange to report on functions in financial statements for relevant period and include notes to financial statements about the restructure and partial reporting of a function.
	The section 49 financial statements of an abolished agency must be prepared and signed by a Chief Executive nominated by the Finance Minister.
	Take appropriate action to cancel or obtain an Australian Business Number, if relevant.
	Review Chief Executive’s Instructions, as required.
	Gaining agency and losing agency to contact Comcover to discuss whether a review of the risk profile and adjustment of premiums needs to be considered.
	Gaining agency and losing agency to contact Finance to discuss whether adjustment of the agencies’ employer contribution rate is required.
People management
	Losing and gaining agencies to consult on identification of employees to be moved—seek advice from the Commission where necessary.
	Losing agency to advise the Commission of details of ongoing and non- ongoing employees to be moved (names, AGS numbers and classification levels) to allow for preparation of determination under section 72 of the PS Act.
	Losing agency to advise the Commission of any employees on leave without pay or on temporary assignment within the agency, or to other agencies.
	Gaining agency to negotiate with losing agency and individual employees to establish temporary movement agreements (in accordance with section 26 of the PS Act) where necessary.
	Losing agency to identify any outstanding recruitment action relating to jobs that are located in the function being moved and advise the gaining agency of status.
	Losing agency to advise gaining agency of any outstanding action relating to employees (breaches of Code of Conduct, disputes, harassment claims, reviews of action, occupational health and safety issues, non-performance assessments, etc.) that are in train at the time of the move. Discuss handling of these cases with the Commission if necessary.
	Gaining agency to assign duties to transferred employees in accordance with section 25 of the PS Act.
	Gaining agency to establish whether any additional clearances (e.g. security) are needed for transferring employees.
	Gaining agency to conduct induction sessions and provide information packages to transferred employees.
	Gaining agency to liaise with Finance about superannuation issues where relevant.
	Gaining agency to liaise with Comcare about managing compensation cases for employees moved as a result of a MOG change.
	Losing agency to finalise performance appraisals and pro rata performance bonus payments, where relevant.
Remuneration and other conditions of employment
	Gaining agency to consult DEWR about any workplace relations implications of the change and, if necessary, seek legal advice.
	Gaining agency to brief affected employees on the likely workplace relations implications of the proposed move and to consider whether it is necessary or appropriate to make a section 24(1) determination for transferred employees.
	Gaining agency to prepare determinations under section 24 of the PS Act (relating to conditions of employment) for signature on, or as soon as possible after, the day of the move. Agency head must consult employees on section 24 determinations made pursuant to PS Regulation 8.1(3) before signing.
Delegations
	Gaining agency to ascertain whether any interim delegations (under PS Act, FMA Act etc.) are needed in circumstances where there is a delay between the AAO coming into effect and the date employees and other resources are transferred.
	Gaining agency to obtain approval for required delegations and authorisations, including drawing rights, particularly for delegations required to take effect on the day of the move.
General
	Legislative area of each agency to examine AAO to ensure all entries are correct.
	Losing agency to identify outstanding legal action, freedom of information requests, Australian National Audit Office reviews, and advise gaining agency of details.
	Identify governance documents requiring review as a result of MOG changes, for example, MoUs, Heads of Agreement, Ministerial Determinations, etc.
	Gaining agency and losing agency to agree on reporting issues (e.g. annual reports, taxation and GST reporting).
	Conduct a post-MOG change review to ensure all matters have been satisfactorily resolved.
Accommodation, furniture and equipment
	Gaining and losing agencies to determine whether employees will move immediately to a new location or remain in the losing agency’s accommodation for a period.
	If remaining in losing agency’s accommodation and gaining agency is taking over leasing arrangements, gaining agency should notify the landlord of the premises of the change of client.
	If remaining in losing agency’s accommodation for a period and losing agency is continuing to pay for the lease, an MoU should be developed to include the intention to recover these costs.
	Gaining agency to consult losing agency about any furniture and equipment to be moved, if relevant.
	Gaining agency to arrange removal of furniture and equipment, provide packing boxes to employees etc.
	Identify staff requiring temporary access to losing agency’s premises and desktop facilities and arrange for this to continue.
	Losing agency to arrange for employees to return agency items in their possession (laptops, mobile phones, gym keys, security passes, credit cards, vehicles, library books, etc.) consistent with normal ‘exit’ procedures. In some cases, staff from the losing agency may be able to take certain items with them, as part of agreed transfer arrangements.
Information and communications technology
	Both agencies to arrange for websites to be updated, including links with other agency’s website, if necessary.
	Losing agency to arrange for telephone calls and emails to be diverted to gaining agency, if necessary.
	Losing agency to arrange for databases, emails and personal files to be downloaded (gaining agency will need to re-load information) – see also Records management below.
	Gaining agency to arrange for link to its information technology network for employees remaining in losing agency’s accommodation.
	Both agencies to update internal distribution lists, contact lists and intranets.
Records management
	Gaining and losing agency to discuss arrangements and develop a strategy for transferring records (both paper-based and electronic).
	Losing agency to identify and list records (both paper-based and electronic) required for the ongoing management of the transferred business.
	Losing agency to make arrangements with the gaining agency for transport of paper-based records relating to the transferred business.
	Losing agency to make arrangements with the gaining agency to hand over computer systems and/or storage media used to create and manage current and inactive electronic records of the transferred business.
	Gaining agency to check records received for completeness against control records and/or lists or other documentation supplied by the losing agency.
	Gaining and losing agency to update systems that control records to reflect the movement of records.
	Losing agency to provide gaining agency with copies of Record Authorities that relate to transferred business; copies of National Archives transfer documentation for records in archival custody relating to transferred business; details of storage, maintenance or other charges imposed by the National Archives or a service provider for which the inheriting agency will take responsibility.
	Gaining and losing agencies to provide National Archives with details on how functions have been re-allocated so NAA systems can be updated.
	Losing agency to contact the National Archives to arrange for the possible transfer of sentenced archival records no longer required for current business.
	Gaining and losing agencies to decide on access arrangements for categories of records needed by both the losing and gaining agencies.
	Gaining and losing agencies to agree on arrangements for splitting accounts for records storage and maintenance charges.
	Gaining and losing agencies to make arrangements for archiving websites that need updating, and make necessary adjustments to file lists reflecting the new responsibilities.

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Implementing Machinery of Government Changes: A good practice guide

Appendix: Checklist for implementing MOG changes