Net Appropriation Agreement for the Private Health Insurance Ombudsman (28/09/2007) (Cth)
FINANCIAL MANAGEMENT AND ACCOUNTABILITY ACT 1997, Section 31
NET APPROPRIATION AGREEMENT
For the PRIVATE HEALTH INSURANCE OMBUDSMAN
This Agreement is made between:
THE MINISTER FOR FINANCE AND ADMINISTRATION
AND
THE MINISTER FOR HEALTH AND AGEING
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.The agreement will cover relevant receipts received by the agency on or after the date when the agency is prescribed in Part 1 of schedule 1 of the Financial Management and Accountability Regulations 1997.
DEFINITIONS
2.1.In this agreement:
2.1.1.‘the agency’ means the Private Health Insurance Ombudsman.
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 departmental 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 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 by, appointed by, 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 or exit from 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 Account (consistent with the purposes for which the Special Account is established):
5.1.13.1Services for Other Entities and Trust Moneys – Private Health Insurance Ombudsman Special Account.
5.1.14.Until the Services for Other Entities and Trust Moneys – Private Health Insurance Ombudsman Special Account is established, amounts received that are related to the purposes of, and that would otherwise have been credited to, that Special Account.
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 5.1.12); and
5.2.2.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) and the Australian Government Competitive Neutrality Guidelines for Managers (February 2004).
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 covered by this agreement.
6.2.Insofar as this agreement applies to amounts received in the 2007‑2008 financial year, ‘the Departmental item for the agency’ refers to the appropriation item for Departmental Outputs of the Private Health Insurance Ombudsman Agency (contained in Appropriation Act (No 1) 2007‑2008), which is deemed to be read as the appropriation item for Departmental Outputs of the Private Health Insurance Ombudsman Agency by section 39, Part 6 of the transitional Act.
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 | ............................................................... |
| John Ignatius 28 September 2007 | Minister for Health and Ageing 15 September 2007 |
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