Recommendations
Recommendation 1
The Committee recommends that the government produce and
table with the annual budget documents a document that sets out the past and
expected expenditure from all Special Appropriations. The data in that document
should be set out against the programs that are funded from the relevant
appropriation.
Recommendation 2
The Committee recommends that the Government implement a
system of review for standing appropriations to ensure that access to the CRF
is withdrawn when no longer required and to ensure that standing appropriations
are subject to periodic government and parliamentary review.
Recommendation 3
The Committee recommends that the government ensure that
where transfers of amounts between different forms of appropriation occur, that
the transfers be highlighted in the reporting documents. Because the reporting
of these events in agencies' financial statements may not occur until well
after the event, these transfers should be documented and tabled as they occur.
In making this recommendation the Committee is aware that there
might be many such transfers and that there could therefore be practical
difficulties in the timely provision of the data. The Committee therefore
recommends that Finance consider the practical implications of the above
recommendation and report to the Committee on this matter this financial year.
Recommendation 4
The Committee recommends that the central role in the
management of net appropriations should be returned to the Appropriation Acts
so as to ensure that these significant transfers of funds are fully transparent
to the Parliament. In making this recommendation the Committee is aware that
the management of net appropriations is complicated and that the Department of
Finance and Administration is investigating other options. If a procedure other
than returning the central role to the Appropriations Acts is proposed, the
Committee would expect that the Parliament and its committees would be
consulted. In particular, the Committee would expect Finance to report to it on
any proposed alternative approach this calendar year.
Recommendation 5
The Committee recommends that agencies report the amounts of
their unspent appropriations and the reasons for the underspend to Finance at
the end of each financial year and that the government tables in Parliament a
consolidated report on the amount and reasons for the underspend within six
months of the end of the relevant financial year. The Committee further
recommends that unspent appropriations be returned to the CRF unless the
finance minister determines that there is good cause for the funds to be
retained.
Recommendation 6
The Committee recommends that unless the Government can
propose another mechanism that would overcome the accountability and
transparency issues raised in connection with the carry over of appropriations
it should discontinue the appropriation of funds to agencies for the purpose of
depreciation.
Recommendation 7
The Committee recommends that the State and Territory
jurisdictions provide to the Commonwealth comprehensive annual statements of
the purposes and expenditures of GST revenues to enable their incorporation
into Budget Paper No. 3.
Recommendation 8
The Committee recommends that the Senate continue to seek
clarification from the Government as to which items the Government believes
should be included in the different appropriation bills. The Senate should then
form a view as to the appropriateness of the split. When any differences are resolved
to the satisfaction of the Senate, the Department of Finance and Administration
should be required to monitor and enforce the split.
Recommendation 9
The Committee recommends that the Standing Committee on Appropriations
and Staffing should report expeditiously on its negotiations with Government in
relation to the appropriate split of items of expenditure in the different
appropriation bills so that the issue may be considered by the Senate.
Recommendation 10
The Committee recommends that the Clerk advise the President
of the Senate with respect to concerns about the matters included in periodic
Appropriation bills and that the President table a statement accompanying the bills
or return the bills to the House of Representatives or to the minister for
clarification, elucidation or adjustment.
Recommendation 11
The Committee recommends that a common approach be taken for
the Portfolio Budget Statements and that estimates for three forward years be
included for departmental and administered items.
Recommendation 12
The Committee recommends that outcomes be expressed in
clear, simple and measurable terms.
Recommendation 13
The Committee recommends that expenditure should be reported
at the levels of programs in the budget documents, including in the schedules
to the Appropriation Acts.
Recommendation 14
The Committee recommends that the terms 'administered' and
'departmental' be defined in the appropriation bills or other appropriate
documents.
Recommendation 15
The Committee recommends that the ongoing process being
undertaken to harmonise the accounting standards should continue and should be
expedited by the Government setting a deadline for its completion.
Recommendation 16
The Committee recommends that the Government should give
consideration to a system for funding depreciation whereby gross capital
expenditure would be separately reported and budgeted for as required, with a
subdivision of expenditures between asset replacement (i.e. the depreciation
component) and asset expansion.
Recommendation 17
The Committee recommends that the Senate Standing
Legislative and General Purpose Committees report as necessary in their reports
on the estimates on the format and contents of the PBS and PAES that are
referred to them.
Recommendation 18
The Committee recommends that the Committee Chairs Group
examine proposals made by the Auditor-General for measures to assist the Legislative
and General Purpose Standing Committees in their consideration of the
estimates.
Recommendation 19
The Committee recommends that the Government ensure that
future appropriation bills that the Senate cannot amend under the provisions of
the Constitution restore the need for any approved expenditure to be legally
linked to and connected with a specific outcome or purpose.
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