Net Appropriation Agreement for the Department of Transport and Regional Services (22/06/2007) (Cth)
FINANCIAL MANAGEMENT AND ACCOUNTABILITY ACT 1997, Section 31
NET APPROPRIATION AGREEMENT
For the DEPARTMENT OF TRANSPORT AND REGIONAL SERVICES
This Agreement is made between:
THE MINISTER FOR FINANCE AND ADMINISTRATION
AND
THE MINISTER FOR LOCAL GOVERNMENT, TERRITORIES AND ROADS
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.
1.3.This agreement will apply to receipts of the agency received on or after 1 July 2006, to the extent that those receipts were not captured under the previous agreement made 3 December 2004, in relation to the administered item for Outcome 2 of the agency.
DEFINITIONS
2.1.In this agreement:
2.1.1.'the agency' means the Department of Transport and Regional Services.
2.1.2.‘relevant receipts’ means the receipts set out in clause 5.1 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 the current administered appropriation item 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, where those receipts are associated with the administration of the Indian Ocean and Jervis Bay Territories, 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 sale of administered assets other than land, buildings and infrastructure (except for receipts from the sale of residual scrap from buildings and infrastructure).
5.1.3.Subsidy and grant moneys received as a result of participation in employment subsidy schemes or programs for non-departmental employees.
5.1.4.Court awarded costs, to the extent they reflect legal costs incurred in litigating a matter associated with the delivery of a service.
5.1.5.Receipts from fee for service activities, including utility and infrastructure fees, fees for health services and other State equivalent services.
5.2.For the avoidance of doubt, receipts under item 5.1 do not include:
5.2.1.Court awarded fines and damages, etc (other than to the extent covered by clause 5.1.4);
5.2.2.Receipts from taxes, levies or specific cost recovered activities where the receipts are raised under legislation and where the activities are separately budget funded; and
5.2.3.Receipts from the sale of administered land, building and infrastructure (except for receipts from the sale of residual scrap from buildings and infrastructure).
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 administered item for Outcome 2 of the agency is increased by an amount equivalent to 100 per cent of the relevant receipts covered by this agreement.
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.
| ............................................................... Sub-Delegate of the Minister for Finance and Administration | ............................................................... |
| Lembit Suur 22 June 2007 | Michael J Taylor 18 June 2007 |
Note: The execution clauses (signature blocks) used in section 31 agreements should correctly reflect the capacity of the signatories. Guidance as to the appropriate signature block to use in particular circumstances is included in Attachment D to Finance Circular 2006/04. Please contact the Financial Framework Branch at [email protected] if further information is required.
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