AUSTRALIAN GOVERNMENT
ISSUES FROM THE ADVANCES UNDER
THE ANNUAL APPROPRIATION ACTS
ANNUAL REPORT 2009-10
 Commonwealth of Australia 2010
ISBN 978-0-642-74648-1
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TABLE OF CONTENTS
Introduction ................................................................................................................................ 1
Determinations made under the Advance provisions in 2009-10............................ 2
Replenishment of the Advance provisions in 2009-10 .............................................. 3
Appropriation Act (No. 1) 2009-2010.......................................................................................... 4
Independent Auditor's Review Report ................................................................................. 11
iii
INTRODUCTION
The purpose of the “Issues From The Advances Under The Annual Appropriation Acts
Annual Report 2009-10” (the Report) is to disclose the use of Advances during the
2009-10 financial year. The Report provides a summary of legal and policy frameworks
relevant to Advances including the amounts available for Advances under the annual
appropriation Acts, the effect of the Advances on the annual appropriation Acts, an
explanation of the replenishment process and detailed information on each advance
issued during 2009-10.
The Advances under the annual appropriation Acts are provisions that enable urgently
required appropriation to be issued to agencies during the year. They are issued by a
determination of the Finance Minister.1
The sections of the appropriation Acts which specify the use of the Advances can
change from year to year. In 2009-10 the relevant sections were:

Section 13 of Appropriation Act (No. 1) 2009-2010;

Section 15 of Appropriation Act (No. 2) 2009-2010; and

Section 13 of Appropriation (Parliamentary Departments) Act (No. 1) 2009-2010.
The Finance Minister may issue a determination under the Advance provisions if
satisfied that:
1) there is an urgent need for expenditure that is not provided for, or is insufficiently
provided for, in the Schedules to the Acts; and
2) the additional expenditure is not provided for, or is insufficiently provided for, in
the Schedules to the Acts:
a) because of an erroneous omission or understatement; or
b) because the additional expenditure was unforeseen until after the last day on
which it was practicable to provide for it in the Bills for these Acts before those
Bills were introduced into the House of Representatives.
A determination made by the Finance Minister has effect on the appropriation Act
concerned as if the schedule to the Act was amended in accordance with the
determination.
1
In this document, references to the Advances are references to the Advance to the Finance
Minister and the Advance to the responsible Presiding Officer. References to the Finance
Minister are also references to the responsible Presiding Officer.
1
Determinations made under the Advance provisions are legislative instruments under
the Legislative Instruments Act 2003. Accordingly, all determinations are registered on
the Federal Register of Legislative Instruments (FRLI) and tabled in the House of
Representatives and the Senate. FRLI is a publicly accessible database, available at:
http://www.frli.gov.au/.
The Advance provisions in each Act limit the total amounts that the Finance Minister
may determine in the financial year concerned. The following table shows the total
amounts of the Advance that could be determined in 2009-10:
2009-10
Advance to the Finance Minister
Appropriation Act (No. 1)
$295 million
Appropriation Act (No. 2)
$380 million
Advance to the responsible Presiding Officer
Appropriation (Parliamentary Departments) Act (No. 1)
– Department of the Senate
– Department of the House of Representatives
– Department of Parliamentary Services
$0.3 million
$0.3 million
$1.0 million
Guidelines on the Advance are provided for Australian Government agencies on the
Finance web site at:
http://www.finance.gov.au/budget/budget-process/advance-to-finance-minister.ht
ml
This Annual Report lists all amounts determined by the Finance Minister in the
2009-10 financial year under the Advance provisions. Cents have been omitted and
each amount in the following section is shown to the nearest dollar. Therefore, due to
rounding, amounts may not add to the totals.
Determinations made under the Advance provisions in 2009-10
Usage of the Advance provisions in the annual appropriations Acts during the 2009-10
financial year are summarised in the following table:
No. of Issues
Total Value of Issues
Advance to the Finance Minister
Appropriation Act (No. 1)
6
Appropriation Act (No. 2)
$150,240,462
-
-
6
$150,240,462
-
-
Sub-total
-
-
Total
6
$150,240,462
Sub-total
Advance to the responsible Presiding Officer
Appropriation (Parliamentary Departments) Act (No. 1)
2
Replenishment of the Advance provisions in 2009-10
When the limits for the Advances under Appropriation Acts (No. 1) and (No. 2) are
likely to be exhausted within the financial year, subsequent annual appropriation Acts
can contain clauses to restore the limits for that particular year. The limits are restored
by means of excluding all issues made before the subsequent Acts commence from the
calculation of the total amounts issued.
The Additional Estimates appropriation Bills for 2009-10 were finalised in
November 2009. At that time it was likely that the limits on the Advance would be
exhausted before April 2010, when the Bills were expected to commence.
Consequently, provisions were made in both Bills to replenish the limits.
The Additional Estimates appropriation Acts received Royal assent on 25 March 2010.
During the period 1 July 2009 to 24 March 2010 a total of $46,479,080 was issued from
Appropriation Act (No. 1) 2009-2010. After the commencement of Appropriation Act
(No. 3) 2009-2010 on 25 March 2010, the Minister’s access to the full limit of
$295 million provided for in Appropriation Act (No. 1) 2009-2010 was restored.
Therefore, the $46,479,080 that had already been determined under that Act was
excluded from the calculation of the total amount issued under that Act.
The Additional Estimates appropriation Acts also contain provisions which prevent
appropriations from both the Advance to the Finance Minister (AFM) and the Acts for
the same expenditure. Subsection 13(2) of Appropriation Act (No. 3) 2009-2010 ensured
that if the Act provided an amount for a particular expenditure and, prior to the
commencement of the Act, the Finance Minister determined an amount from the AFM
under Act No. 1 for the same expenditure (the advanced amount), then the
appropriation in the Act was reduced by the amount of the AFM issued.
3
APPROPRIATION ACT (NO. 1) 2009-2010
TOTAL AMOUNT ISSUED: $150,240,462
SUMMARY
Issues from the
Advance to the
Finance Minister
Page No. Portfolio
Expenditure
$
$
29,675,000
29,675,000
6,440,080
6,440,080
Education, Employment and Workplace Relations
10,364,000
10,364,000
Immigration and Citizenship
72,572,000
50,945,783
1,808,382
1,808,382
5
Treasury
6
Health and Ageing
7
8
9
Agriculture, Fisheries and Forestry
10
Foreign Affairs and Trade
4
29,381,000
29,381,000
150,240,462
128,614,245
APPROPRIATION ACT (NO. 1) 2009-2010
Legislative Instrument
No. and Title
F2010L00149, Advance to the Finance Minister
Section 13 of Appropriation Act (No. 1) 2009-2010
Number
No. 1 of 2009-2010
Portfolio
Treasury
Agency
Department of the Treasury
Appropriation Item
Administered Item, Outcome 1
Outcome
Informed
decisions
on
the
development
and
implementation of policies to improve the wellbeing of the
Australian people, including by achieving strong,
sustainable economic growth, through the provision of
advice to government and the efficient administration of
federal financial relations
Program
Payments to International Financial Institutions
Date Issued
Legislative
Requirement
18 January 2010
Erroneous
Omission
—
Amount Issued
Expenditure
$29,675,000
$29,675,000
Explanation of Requirement
In the 2009-10 Mid-Year Economic and Fiscal Outlook (MYEFO), the Government
announced an additional contribution to the International Monetary Fund (IMF)
Poverty Reduction and Growth Trust in the form of a single payment of $30,000,000. It
was intended that the funding be appropriated through the special appropriation —
International Monetary Agreements Act 1947 — s8 — Payments to the IMF. It was
subsequently found that the specific section of that Act was not a valid source of
funding for the payment and that no other section of the Act would be appropriate.
An advance of $29,675,000 was required through Appropriation Act (No. 1) 2009-2010 to
enable the payment to be made. Savings of $325,000 in other programs funded by
Treasury’s administered item for Outcome 1 in Act 1 were available to contribute to
the total payment of $30,000,000 to the IMF.
5
APPROPRIATION ACT (NO. 1) 2009-2010
Legislative Instrument
No. and Title
F2010L00340, Advance to the Finance Minister
Section 13 of Appropriation Act (No. 1) 2009-2010
Number
No. 2 of 2009-2010
Portfolio
Health and Ageing
Agency
Department of Health and Ageing
Appropriation Item
Administered Item, Outcome 14
Outcome
Biosecurity and Emergency Response — Preparedness to
respond to national health emergencies and risks, including
through surveillance, regulation, prevention, detection and
leadership in national health coordination
Program
Health Emergency Planning and Response
Date Issued
Legislative
Requirement
4 February 2010
Unforeseen
Amount Issued
$6,440,080
—
Expenditure
$6,440,080
Explanation of Requirement
In the 2009-10 Mid-Year Economic and Fiscal Outlook (MYEFO), the Government
announced its response to the H1N1 influenza pandemic. The Department of Health
and Ageing commenced implementation of the Government’s response using
appropriation provided in Appropriation Act (No. 1) 2009-2010 for Outcome 14. A
further appropriation of $36.8 million was provided in Appropriation Act (No. 3)
2009-2010 to manage the pandemic and to enhance preparedness for any future
pandemics.
Analysis in January 2010 of spending trends showed that the appropriation provided
in Appropriation Act (No. 1) 2009-2010 for Outcome 14 would be exhausted by
mid-February 2010. As the appropriation provided in Appropriation Act (No. 3)
2009-2010 might not be available until April 2010, an advance of $6,440,080 was
required to ensure that contractual obligations could be paid as they fell due.
On 25 March 2010, when Appropriation Act (No. 3) 2009-2010 commenced, the amount
provided in that Act was reduced by the amount advanced.
6
APPROPRIATION ACT (NO. 1) 2009-2010
Legislative Instrument
No. and Title
F2010L00597, Advance to the Finance Minister
Section 13 of Appropriation Act (No. 1) 2009-2010
Number
No. 3 of 2009-2010
Portfolio
Education, Employment and Workplace Relations
Agency
Department of Education, Employment and Workplace
Relations
Appropriation Item
Administered Item, Outcome 5
Outcome
Safer, fairer and more productive workplaces for
employers and employees by promoting and supporting
the adoption of fair and flexible workplace arrangements
and safer working arrangements
Program
Employee Assistance
Date Issued
Legislative
Requirement
25 February 2010
Unforeseen
—
Amount Issued
Expenditure
$10,364,000
$10,364,000
Explanation of Requirement
The General Employment Entitlements and Redundancy Scheme (GEERS) is a basic
payment scheme to assist employees who have lost their employment due to the
liquidation or bankruptcy of their employer and who are owed certain employee
entitlements.
GEERS is a demand-driven scheme, and it is difficult to predict the quantum and
timing of future payments. Expenditure under GEERS is affected by a wide range of
variables, including the number of companies placed into liquidation; the number of
claimants for GEERS assistance; the industrial instruments that determine the terms
and conditions of the claimants’ employment; and eligible entitlements outstanding at
the time of the insolvency.
Analysis in February 2010 showed that based on the trends at the time and the recent
insolvency of several large businesses, the appropriation provided for in Appropriation
Act (No. 1) 2009-2010 would be exhausted by the end of February 2010. As the
appropriation provided in Appropriation Act (No. 3) 2009-2010 was not available until
April 2010, an advance of $10,364,000 was required to ensure that eligible applicants
under the GEERS scheme received their full entitlements in a timely manner.
On 25 March 2010, when Appropriation Act (No. 3) 2009-2010 commenced, the amount
provided in that Act was reduced by the amount advanced.
7
APPROPRIATION ACT (NO. 1) 2009-2010
Legislative Instrument
No. and Title
F2010L01479, Advance to the Finance Minister
Section 13 of Appropriation Act (No. 1) 2009-2010
Number
No. 4 of 2009-2010
Portfolio
Immigration and Citizenship
Agency
Department of Immigration and Citizenship
Appropriation Item
Administered Item, Outcome 4
Outcome
Lawful stay of visa holders and access to citizenship rights
for eligible people through promotion of visa compliance
responsibilities, status resolution, citizenship acquisition
integrity, case management, removal and detention, and
policy advice and program design
Program
Offshore Asylum Seeker Management
Date Issued
Legislative
Requirement
24 May 2010
Unforeseen
—
Amount Issued
Expenditure
$72,572,000
$50,945,783
Explanation of Requirement
The Department of Immigration and Citizenship (DIAC) is responsible for the
reception and processing of Irregular Maritime Arrivals (IMAs). The cost of this is
dependent on the number of new arrivals. By May 2010, the number of IMAs was
trending higher than forecast in the 2009-10 Budget when appropriation for the
program was initially provided. The rise in the number of IMAs resulted in an increase
in accommodation costs in multiple locations and associated operating costs including
transport, escort and security services.
An advance of $72,572,000 was required to enable DIAC to meet accommodation and
other contractor payments due in May and June 2010.
Explanation of Underspend
As at 30 June 2010, cash expenditure was $50,945,783. Of that amount, $45,382,177 was
cash expenditure on the Offshore Asylum Seeker Management program. An amount of
$5,563,606 was also spent on the Onshore Detention Network program. Both programs
are within Outcome 4. The cash underspend of $21,626,217 resulted from expenses
incurred but not paid as at 30 June 2010.
8
APPROPRIATION ACT (NO. 1) 2009-2010
Legislative Instrument
No. and Title
F2010L01677, Advance to the Finance Minister
Section 13 of Appropriation Act (No. 1) 2009-2010
Number
No. 5 of 2009-2010
Portfolio
Agriculture, Fisheries and Forestry
Agency
Department of Agriculture, Fisheries and Forestry
Appropriation Item
Administered Item, Outcome 2
Outcome
Safeguard Australia’s animal and plant health status to
maintain overseas markets and protect the economy and
environment from the impact of exotic pests and diseases,
through risk assessment, inspection and certification, and
the implementation of emergency response arrangements
for Australian agricultural, food and fibre industries
Program
Plant and Animal Health
Date Issued
Legislative
Requirement
8 June 2010
Unforeseen
Amount Issued
$1,808,382
—
Expenditure
$1,808,382
Explanation of Requirement
To support reform of export certification services to coincide with the return to full
cost recovery, the Government funded the Export Certification Reform Package
(ECRP). The ECRP contained elements for fee rebates to assist exporters to adjust to the
lapsing of the export subsidy, for reform of the regulatory and export supply chain,
and for meat inspection reform.
In April 2009 the Minister for Agriculture, Fisheries and Forestry established six joint
Industry-AQIS Ministerial Taskforces (MTF) representing each of the affected export
sectors (dairy, fish, grain, horticulture, live animals and meat) to explore delivery
arrangements for AQIS export certification and inspection services in line with the
recommendations of the Beale Report (December 2008) and to promote efficiencies and
to improve productivity.
Funding was subject to the increased fee regulations not being disallowed by the
Senate. As the disallowance period did not expire until 11 May 2010, funding could not
be incorporated into Appropriation Act (No. 3) 2009-2010, and no further appropriation
Bills occurred in 2009-10. An advance of $1,808,382 was required to meet payments,
associated with the formation of and consultancy services for the MTFs, that had to be
made by 30 June 2010.
9
APPROPRIATION ACT (NO. 1) 2009-2010
Legislative Instrument
No. and Title
F2010L01790, Advance to the Finance Minister
Section 13 of Appropriation Act (No. 1) 2009-2010
Number
No. 6 of 2009-2010
Portfolio
Foreign Affairs and Trade
Agency
AusAID
Appropriation Item
Administered Item, Outcome 1
Outcome
To assist developing countries to reduce poverty and
achieve sustainable development, in line with Australia’s
national interest
Programs
Official Development Assistance — East Asia
—
Official Development Assistance — Africa, South and
Central Asia, Middle East and Other
Date Issued
Legislative
Requirement
22 June 2010
Unforeseen
Amount Issued
Expenditure
$29,381,000
$29,381,000
Explanation of Requirement
This request covered two programs.
1. Official Development Assistance — East Asia Program. In November 2009 the Prime
Minister agreed to commit an additional $25,000,000 as a contribution to stabilisation
in northern Sri Lanka. The contribution was to fund reconstruction efforts in Sri Lanka,
including resettlement of Internally Displaced People. Of this total, funding required
through Appropriation Act (No. 1) 2009-2010 Outcome 1 was $24,381,000.
2. Official Development Assistance — Africa, South and Central Asia, Middle East and
Other Program. In the 2010-11 Budget, the Government announced its decision to
commit $5,000,000 to multilateral climate change financing, for expenditure in 2009-10.
This was Australia’s contribution to a global agreement to help developing countries
deal with the effects of climate change through the development of National
Adaptation Plans of Action for climate change adaptation and mitigation.
An advance of $29,381,000 was required to enable all of the above payments to be
made by 30 June 2010.
10
11
12