FINANCIAL MANAGEMENT AND ACCOUNTABILITY ACT 1997, Section 31
NET APPROPRIATION AGREEMENT
For NATIONAL NATIVE TITLE TRIBUNAL
This Agreement is made between:
THE MINISTER FOR FINANCE AND ADMINISTRATION
AND
THE ATTORNEY GENERAL
- INTRODUCTION
- This net appropriation agreement is made under section 31 of the Financial Management and Accountability Act 1997 (the FMA Act).
- Under this agreement, if the agency receives any amounts covered by the agreement, the appropriation to the agency in the annual appropriation Act will be increased.
This agreement will commence upon signature by the second party.
2. DEFINITIONS
2.1. In this agreement:
2.1.1. 'the agency' means the National Native Title Tribunal.
2.1.2. ‘eligible receipts’ means the receipts set out in clause 5.1 of this agreement.
3. 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 eligible receipts of the agency.
4. DURATION OF THE AGREEMENT
4.1. This agreement replaces any previous net appropriation agreement between the Finance Minister and the responsible Minister in respect of any of the appropriation items identified in this agreement.
4.2. This agreement continues until a new net appropriation agreement covering the appropriation item identified in this agreement is executed by both parties to the agreement.
5. NATURE OF ELIGIBLE RECEIPTS
5.1. The following receipts are eligible 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) 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. Court awarded costs to the extent to which they reflect legal costs incurred in litigating the matter.
5.1.8. Receipts from the sub-leasing of real property. (If relevant)
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 paragraph 5.1.7).; 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; being receipts raised under the Freedom of Information Act 1992 Section 94 and Native Title (Tribunal) Regulations 1993.
6. INCREASE IN APPROPRIATION ITEMS
6.1. Subject to the net appropriation provisions of the annual appropriation Acts, the Departmental item for the agency is taken to be increased by the following amounts:
6.1.1. All receipts listed in 5.1, 100% of the receipts.
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.
SIGNED...............................................Delegate of the Minister for Finance and Administration | SIGNED................................................. Delegate of the Attorney General |
Peter Saunders Division Manager Government and Defence Division ............................................................... Dated 2 December 2004 | Christopher Doepel Registrar National Native Title Tribunal ............................................................... Dated 2 November 2004 |
Overview
The Financial Management and Accountability Act 1997 (FMA Act) was enacted to establish a framework for the financial management and accountability of Commonwealth entities, ensuring that they operate within their appropriation limits and comply with relevant legislation. This net appropriation agreement is made under section 31 of the FMA Act and is between the Minister for Finance and Administration and the Attorney General. The purpose of this agreement is to record the extent to which the amount specified in an appropriation item in an annual appropriation Act may be increased by reference to eligible receipts of the National Native Title Tribunal. These receipts include sales, leasing, hiring out of goods, provision of staff and other services, payments for associated benefits, sale of minor assets, transfer of leave entitlements, subsidy and grant moneys, court awarded costs, and sub-leasing of real property. The agreement ensures proper accounting and reporting of these receipts and states that the Efficiency Dividend will not apply to any amounts deemed to be appropriated under this agreement. This net appropriation agreement serves to clarify and regulate the financial management practices of the National Native Title Tribunal within the framework established by the FMA Act.
Scope and Application
The Net Appropriation Agreement, as specified under Section 31 of the Financial Management and Accountability Act 1997, applies to the National Native Title Tribunal (NNTT) and pertains to the management and appropriation of certain receipts that increase the agency's appropriation items as outlined in the annual appropriation Acts. The agreement specifies that the eligible receipts for this purpose include sales, leasing, provision of services, associated benefits, minor asset sales, transfer of leave entitlements, subsidy and grant moneys, court-awarded costs reflecting legal expenses, and sub-leasing of real property. Notably excluded from these eligible receipts are fines, damages, taxes, levies, and specific cost recovery activities, particularly those raised under the Freedom of Information Act 1992 and Native Title (Tribunal) Regulations 1993. The agreement ensures compliance with constitutional and statutory requirements for financial management by mandating that the NNTT maintains accurate accounts and records of these appropriations, and reports them accordingly in the agency's financial statements and the Consolidated Financial Statements. The agreement remains in effect until replaced by a new agreement covering the same appropriation items.
Key Provisions
The main operative sections of the Financial Management and Accountability Act 1997, as detailed in the net appropriation agreement, concern the nature and extent of eligible receipts that will increase the appropriation to the National Native Title Tribunal (section 5). According to section 5.1, eligible receipts include amounts from the sale, leasing, or other dealings with goods; provision of staff and services; payments for associated benefits; sale of minor assets; transfer of leave entitlements between agencies; subsidy and grant moneys from employment subsidy schemes; and court awarded costs that reflect legal expenses incurred. These eligible receipts are detailed in clause 5.1 of the agreement, which also specifies that certain receipts, such as court awarded fines and damages (except as mentioned in 5.1.7), and receipts from taxes, levies, or specific cost-recovered activities, are not included (section 5.2). This agreement is made under section 31 of the FMA Act, and it records the extent to which appropriation amounts may be increased by reference to these eligible receipts (section 3.1).
The agreement imposes several obligations on the National Native Title Tribunal. It mandates that the agency keep proper accounts and records of all appropriations to ensure compliance with appropriation requirements and to prevent overspending (Notes). The agency must be able to identify, quantify, and produce information on net appropriation receipts, which should be accessible within the agency’s Financial Management Information System or in supporting documentation (Notes). Additionally, the agency must report these net appropriations in relevant budget documents, financial statements, and consolidated financial statements, and it must stay informed of any changes to reporting requirements (Notes). The agreement also specifies that the Efficiency Dividend will not apply to any amounts deemed to be appropriated under this agreement.
The agreement does not explicitly outline specific offences, penalties, or civil/criminal consequences for breaches. However, the underlying Financial Management and Accountability Act 1997 would apply, and any failure to comply with the appropriation requirements, such as overspending or inaccurate record-keeping, could result in legal repercussions. Such breaches could lead to financial mismanagement charges, which could potentially carry significant penalties, depending on the severity and impact of the breach. Furthermore, the obligation to report accurately and transparently on appropriations ensures that any misreporting or non-compliance could result in administrative or legal action.