Net Appropriation Agreement for the Department of Families, Community Services and Indigenous Affairs (30/03/2007) (Cth)
FINANCIAL MANAGEMENT AND ACCOUNTABILITY ACT 1997, Section 31
NET APPROPRIATION AGREEMENT
For the Department of Families, Community Services and Indigenous Affairs
This Agreement is made between:
THE MINISTER FOR FINANCE AND ADMINISTRATION
AND
THE MINISTER FOR FAMILIES, COMMUNITY SERVICES AND INDIGENOUS AFFAIRS
INTRODUCTION
1.1.This net appropriation agreement is made under section 31 of the Financial Management and Accountability Act 1997 (the FMA Act).
Note 1 Section 31 of the FMA Act, together with the annual Appropriation Acts, allows a departmental item (or in some instances, an administered item) to be increased by an amount up to the amount of relevant receipts where the Finance Minister (or his or her delegate) and the responsible Minister have entered into a net appropriation agreement.
Note 2 This agreement is given effect by specific provisions within the annual appropriation Acts. Therefore, the agreement only has effect while the relevant specific provisions exist in the annual appropriation Acts.
1.2.This agreement will commence upon registration on the Federal Register of Legislative Instruments.
DEFINITIONS
2.1.In this agreement:
2.1.1.'the agency' means the Department of Families, Community Services and Indigenous Affairs.
2.1.2.‘relevant receipts’ means the receipts set out in clauses 5.1 and 5.2 of this agreement.
PURPOSE
3.1.This net appropriation agreement records the extent to which the amount specified in an item in an annual Appropriation Act may be taken to be increased by reference to relevant receipts of the agency.
3.2.The purpose of the agreement is to apply to:
3.2.1.the current departmental appropriation item of the agency;
3.2.2.the current administered item for outcome one of the agency;
3.2.3.the current administered item for outcome two of the agency;
3.2.4.the current administered item for outcome three of the agency; and
3.2.5.the current administered item for outcome four of the agency.
Note: In most cases the item in the annual Appropriation Act will be taken to be increased by the whole amount received by the agency. However, in some cases, the item in the annual Appropriation Act will only be taken to be increased by a proportion of the whole amount received by the agency - see clause 6.
DURATION OF THE AGREEMENT
4.1.This agreement replaces any previous net appropriation agreement in respect of any of the appropriation items identified in this agreement.
4.2.This agreement continues until cancelled or replaced with a new net appropriation agreement.
Note: Under section 31(4) of the FMA Act, the Finance Minister may at any time cancel or vary this agreement, without the consent of the other party.
RELEVANT RECEIPTS
5.1.The following receipts are relevant receipts for the purposes of this agreement.
5.1.1.Receipts from the sale, leasing, hiring out of, or other dealing with goods.
5.1.2.Receipts from the provision of staff and other services.
5.1.3.Receipts from a person (whether employed, appointed, or performing services for, the Commonwealth) or agency as payment for any associated benefit provided (whether to that person or another person).
5.1.4.Receipts from the sale of minor assets that are departmental in nature such as furniture and fittings.
5.1.5.Receipts from the transfer of annual and long-service leave entitlements between agencies.
5.1.6.Subsidy and grant moneys received as a result of participation in employment subsidy schemes or programs.
5.1.7.Sponsorships, grants, subsidies and contributions received to fund departmental activities of the agency.
5.1.8.Amounts received from the Australian Taxation Office as interest on a late repayment.
5.1.9.Donations received, expressed to be for the performance of specific departmental activities of the agency.
5.1.10.Financial incentives to enter into leasing arrangements.
5.1.11.Amounts received in relation to the ADF Reserves Employer Support Payment Scheme.
5.1.12.Court awarded costs to the extent to which they reflect legal costs incurred in litigating the matter.
5.1.13.Amounts paid to the agency from the following Special Accounts (consistent with the purposes of the Special Account):
5.1.13.1.Aboriginal Advancement Account
5.1.13.2.Aboriginals Benefit Account
5.1.13.3.Aboriginal and Torres Strait Islander Land Account
5.1.13.4.Commonwealth State Territory Disability Agreement Special Account
5.1.13.5.National Youth Affairs Research Scheme Special Account
5.1.13.6.Other Trust Moneys Account
5.1.13.7.Services for other Governments and Non-agency Bodies Account
5.1.13.8.Supported Accommodation Assistance Program Data and Program Evaluation Fund Special Account
5.1.14.Receipts from the sub-leasing of real property.
5.1.15.Receipts from the sale of Departmental housing.
5.2.The following receipts are eligible receipts for the purposes of clauses 6.2, 6.3, 6.4. and 6.5 of this agreement:
5.2.1.Subsidy, contract and grant moneys received as a result of contributions from other entities as co‑contributions for joint initiatives.
5.3.For the avoidance of doubt, receipts under clauses 5.1 and 5.2 do not include:
5.3.1.Court awarded fines and damages, etc (other than to the extent covered by clause 5.1.12); and
5.3.2.Receipts from taxes, levies or specific cost recovered activities where the receipts are raised under legislation and where the activities are budget funded.
Note: User charging activities should comply with the Government’s cost recovery policy as set out in the Australian Government Cost Recovery Guidelines (July 2005).
PROPORTION OF RECEIPTS COVERED
6.1.Subject to the net appropriation provisions of the annual Appropriation Acts, the departmental item for the agency is increased by an amount equivalent to 100 per cent of the relevant receipts listed in clause 5.1.
6.2.Subject to the net appropriation provisions of the annual Appropriation Acts, the administered item for Outcome 1 of the agency is increased by an amount equivalent to 100 per cent of the relevant receipts listed in clause 5.2 that relate to Outcome 1 of the agency.
6.3.Subject to the net appropriation provisions of the annual Appropriation Acts, the administered item for Outcome 2 of the agency is increased by an amount equivalent to 100 per cent of the relevant receipts listed in clause 5.2 that relate to Outcome 2 of the agency.
6.4.Subject to the net appropriation provisions of the annual Appropriation Acts, the administered item for Outcome 3 of the agency is increased by an amount equivalent to 100 per cent of the relevant receipts listed in clause 5.2 that relate to Outcome 3 of the agency.
6.5.Subject to the net appropriation provisions of the annual Appropriation Acts, the administered item for Outcome 4 of the agency is increased by an amount equivalent to 100 per cent of the relevant receipts listed in clause 5.2 that relate to Outcome 4 of the agency.
Notes
- In order to comply with the appropriation requirements of sections 81 and 83 of the Constitution and with sections 19 and 48 of the FMA Act, agencies must keep proper accounts and records of all appropriations to ensure that they do not spend above their appropriation limits.
- The agency must be able to identify, quantify and, if requested, produce information to show the amounts attributable to net appropriation receipts. This information should be available within the agency’s Financial Management Information System or in other supporting systems or documentation.
- The agency must report the net appropriations referred to above, as required, in the relevant Budget documents, agency financial statements and the Consolidated Financial Statements.
- It is the agency’s responsibility to be aware of any changes to reporting requirements which affect net appropriation reporting requirements.
- The Efficiency Dividend will not apply to any amounts deemed to be appropriated under this agreement.
| ....John Ignatius............................................... Sub-Delegate of the Minister for Finance and Administration | .....Jeff Harmer................................................. |
| John Ignatius 30 March 2007 | Jeff Harmer 2 March 2007 |
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