Summary:

The intent of the Gateway process is to provide the NSW Government, as the investor, with a level of confidence that the State's programs and projects are being effectively developed and delivered on time, on budget and in accordance with the Government's objectives. It is also intended to assist delivery agencies by providing independent assessments to complement agency internal assurance arrangements and support a delivery agency to deliver successful outcomes. Gateway entails peer reviews conducted by independent experts at key decision points in a project or program's lifecycle.

Gateway reviews have been undertaken in NSW for over ten years, primarily for capital projects based on financial thresholds. The new NSW Gateway Policy (TPP17-01):

• adopts a risk based approach to determine when, and at what decision points, Gateway reviews should be undertaken

• makes the Gateway process applicable to all significant Government investment/spending decisions (i.e. capital and recurrent spend)

• sets minimum requirements for risk based review frameworks

• specifies Gateway Coordination Agencies (GCAs) who are responsible for the design and administration of these frameworks, coordinating reviews and reporting on performance

• nominates Infrastructure NSW (INSW) as the GCA for capital investments, the Department of Finance Services and Innovation (DFSI) for ICT investments and Treasury for major recurrent investments

• clarifies roles and responsibilities of policy owner, GCAs and delivery agencies.

Gateway is the core element of each GCA framework, which determine its application based on relevant risk tier classification. GCA frameworks also set out associated project and program reporting and monitoring.

The policy applies to all General Government agencies and Government businesses. State Owned Corporations are required to comply with the policy to the extent required under the Commercial Policy Framework.

As previously notified (Treasury Circular TC16-09), the Government approved the Infrastructure Investor Assurance Framework (IIAF), administered by INSW, in June 2016. The Government has now approved the ICT Assurance Framework (IAF), administered by DFSI, and the Recurrent Investor Assurance Framework (RIAF), administered by Treasury. These frameworks are consistent with TPP17-01.

Agencies are advised to familiarise themselves with these frameworks which will operate in conjunction with Treasury's existing budget and project approval processes. Copies of the policy and framework documents are available from the relevant GCA internet sites as outlined below.

State Owned Corporations should initially refer to the Commercial Policy Framework. For further information on the application of this Policy, please contact your Treasury SOC Investment Manager.

Relevant agencies were required to comply with the IIAF in July 2016.

Interim arrangements were in place for ICT projects pending Government approval of the IAF. Agencies to which this policy applies are now required to comply with the approved IAF for ICT projects. Treasury will provide separate advice on the implementation of the RIAF, following further consultation with clusters on timing and other operational matters.

This Gateway Policy forms part of a comprehensive suite of guidance that covers all aspects of investment policy. Treasury will be issuing a compendium that will integrate various other topics such as guidelines for Business Cases and Cost Benefit Analysis with Gateway Policy.

This Circular withdraws and replaces TC10-13 (Gateway Review System) and TC11-14 (Gateway Review System and Business Case Guidelines).

Caralee McLiesh
Deputy Secretary
for Secretary
NSW Treasury