Author
Lisa F.
Lisa F

Machinery of government (MoG) changes occur when the government restructures the functions that government departments administer. MoG changes usually result in the transfer of specific functions and legislative responsibilities from one department to another. This can include:

  • abolishing existing departments, with all functions transferred to other departments
  • creating new departments, who receive functions previously administered by other departments
  • changing the functions, outputs, or resources that existing departments administer.

MoG changes arise through 2 processes:

  1. an administrative arrangements order, which the Governor in Council makes
  2. through departmental arrangements notices, which the Public Sector Commission issues.

MoG changes following the state election

On 1 November 2024, the Governor in Council approved Administrative Arrangements Order (No. 2) 2024. Changes to departmental arrangements included:

  • abolishing one department (the Department of Energy and Climate) 
  • creating one new department (the Department of Customer Services, Open Data and Small and Family Business)
  • redistributing functions between 17 existing departments, with 12 of the departments renamed.

When do the MoG changes take effect?

Generally, MoG changes are effective from the date the administrative arrangements order is made. If it is issued on a date other than the first day of the month, changes for accounting purposes are taken to have occurred on the first day of the following month.

As the administrative arrangements order was issued on 1 November 2024, all changes take effect on that date (refer s.80 of the Financial Accountability Act 2009). 

What are the impacts of MoGs?

MoG impacts can be wide-ranging, including:

  • changes to organisational structures
  • transfers of employees
  • transfers of assets and liabilities
  • changes to information systems
  • changes to corporate policies, procedures, and plans.

Implementing MoG changes can also impact the quality and timeliness of financial statement preparation due to:

  • the movement of key finance staff between departments
  • changes required to financial systems
  • inability to access financial information in a timely manner.

What should you consider in implementing a MoG change?

Given the extent of change that may be required, it can sometimes take many months, or even years, before the new functions are fully integrated into the operations of the receiving department. 

For this reason, it is important that affected departments assess the size and nature of any MoG changes and plan the actions required to implement the changes. Departments should appoint a project team early in the transition phase to coordinate all aspects of reorganisation and develop a transition plan. Both the transferring and receiving departments will need to agree on the scope of changes required – that is, identifying and defining the areas being transferred and what this involves. This will help them identify, manage, and monitor the associated risks at both an operational and strategic level.

Any major restructuring of departmental arrangements should be supported by a robust process including a formal plan assigning responsibilities and lines of accountability. It also requires involvement and commitment from senior management of both the receiving and transferring departments.

At an organisational level, departments will need to consider how MoG changes impact on existing governance and reporting structures. This may include:

  • reviewing corporate plans, policies, and performance measures
  • reviewing and updating financial and non-financial delegations
  • assessing the organisational structure and reviewing the reporting and accountability arrangements.

Other operational considerations departments need to address include:

  • reviewing all existing contracts, leases, and litigation and identifying where these now belong
  • managing the handover of records
  • ensuring that all information is securely stored in approved business applications and systems
  • considering and addressing the potential impact on staff
  • assessing outstanding internal and external audit issues, outstanding Crime and Corruption Commission matters, and other matters being investigated.

In managing the changes, departments should also develop a clear and comprehensive communication strategy that addresses:

  • communication of expectations with key external stakeholders, including ministers
  • keeping staff informed of the process
  • communicating with clients and suppliers of relevant changes to operations
  • communicating with central agencies and the Queensland Audit Office (QAO).

Departments need to ensure they clearly document key processes and actions performed in implementing MoG changes. Post implementation, it’s essential that departments assess lessons learnt to inform management and central agencies of what went well and which areas need further improvement. This will assist in the transfer of knowledge and experience in preparation for a future MoG change.

Where can I seek further assistance?

In June 2023, QAO tabled Implementing machinery of government changes (Report 17: 2022–23). We also have 2 better practice guides available to assist departments impacted by MoG changes, being:

Other assistance available includes: