Governance and Structure
The AOFM is a Non-Corporate Commonwealth Entity within the Treasury portfolio. It is accountable to the Treasurer and the Secretary to the Treasury.
The AOFM issues debt under the Commonwealth Inscribed Stock Act 1911 and the Loans Securities Act 1919. It makes investments under the Public Governance, Performance and Accountability Act 2013 and has established the Australian Business Securitisation Fund under the Australian Business Securitisation Fund Act 2019 and the Structured Finance Support Fund under the Structured Finance Support (Coronavirus Economic Response Package) Act 2020. These Acts confer legal authority on the Treasurer, who delegates issuance and investment powers through a Direction. Directions authorise AOFM officials to undertake debt issuance and investments operations consistent with Government policy and in accordance with official fiscal forecasts, and can be found at https://www.legislation.gov.au/.
The Chief Executive of the AOFM is appointed by the Secretary to the Treasury and is the AOFM’s accountable authority under the Public Governance, Performance and Accountability Act 2013. The Secretary to the Treasury delegates powers under the Public Service Act 1999 to the Chief Executive of the AOFM.
Organisational structure
The AOFM’s organisational structure is based on financial industry best practice, including developing our teams to align with different stages of our business processes. It gives specific recognition to financial transaction‑related duties. Core operational activities form 3 broad areas.
Front Office
This comprises strategy, markets, sustainable finance and funding. Activities involve portfolio and global market research; investor engagement; and liaison with Treasury on debt policy and related financial market issues. The front office conducts tenders and syndications for the issue of AGS and manages and executes investment programs for the Australian Business Securitisation Fund and Structured Finance Support Fund. It also leads the cash management task.
Middle office
This comprises activities to support enterprise risk management, second line risk assurance monitoring, business continuity management, security, privacy, portfolio performance measurement, data management, and business systems management. Risk and compliance monitoring facilitates the AOFM’s management of risk, including adherence to the separation of back and front office functions. The middle office maintains business databases that facilitate monitoring and reporting of our business activities.
Back office (Operations group)
The operations group is responsible for accounting, budgeting, and financial management services. It manages debt financing and investment transaction settlements, ensures debt payment obligations are met in all instances, manages procurement and vendor risk and outsourced debt registry services. The operations group also manages ICT projects and service delivery.
Agency administrative support, executive support for the Chief Executive Officer (CEO), communications, and human resources are managed by the Office of the CEO. These functions sit outside the 3 offices described above.
