NOTE 24: Appropriations

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Note 24A: Annual Appropriations - 2011

	Appropriation Act	Appropriation Act	Appropriation Act	FMA Act	FMA Act	FMA Act
	Annual Appropriation $’000	Appropriations reduced (a) $’000	AFM $’000	Section 30 $’000	Section 31 $’000	Section 32 $’000	Total Appropriation $’000	Appropriation applied in 2011 (current and prior years) $’000	Variance (b) $’000
DEPARTMENTAL
Ordinary annual services	612,403	(367)	0	20,583	31,773	(3,713)	660,679	673,157	(12,478)
Other services
Equity	100,311	0	0	0	0	0	100,311	10,503	89,808
Total departmental	712,714	(367)	0	20,583	31,773	(3,713)	760,990	683,660	77,330
ADMINISTERED
Ordinary annual services
Administered items	5,528,849	(751,138)	0	9,808	0	(71,300)	4,716,219	4,663,352	52,867
Payments to CAC Act bodies	288,736	0	0	0	0	(132,032)	156,704	156,704	0
Other services
Specific payments to States, ACT, NT and Local Government	10,241	0	0	4	0	(250)	9,995	5,589	4,406
Administered assets and liabilities	37,300	(9,390)	0	0	0	0	27,910	27,872	38
Payments to CAC Act bodies	300	0	0	0	0	0	300	300	0
Total administered	5,865,426	(760,528)	0	9,812	0	(203,582)	4,911,128	4,853,817	57,311

(a) Appropriation Acts (No. 1 and 2) 2010-11: sections 10 and 11. On 30 June 2011, the Finance Minister determined a reduction in departmental and administered appropriations following a request by the Minister for Health and Ageing: The amount of the reduction determined under Appropriation Act (No.1) of 2010-11 was $367,490 and Appropriation Act (No. 2) of 2010-11 was $9,390,181.
(b) The variance of $12,478 for departmental annual services predominately reflects the purchase of assets from prior year depreciation funding for the replacement of the Department’s IT desktop in accordance with the provisions of the Net Cash Resourcing framework. The variance of $89,808,000 represents an underspend in capital projects. During 2010-11, the Department was provided authority to utilise $72,114,000 of this appropriation in forward years. The administered ordinary annual services items variance of $52,867,000 and the administered other services specific payments to States, ACT, NT and Local Governments variance of $4,406,000 relates to the difference in 2009-10 and 2010-11 section 11 amounts.

Note 24A: Annual Appropriations - 2010

	Appropriation Act	Appropriation Act	Appropriation Act	Appropriation Act	FMA Act	FMA Act	FMA Act
	Annual Appropriation $’000	Appropriations reduced (a) $’000	AFM $’000	Section 14 (Act No. 1) $’000	Section 30 $’000	Section 31 $’000	Section 32 $’000	Total Approp- riation $’000	Appropriation applied (current and prior years) $’000	Variance (b) $’000
DEPARTMENTAL
Ordinary annual services	584,751	0	0	0	7,972	33,126	0	625,849	634,781	(8,932)
Other services
Equity	7,093	0	0	0	0	0	0	7,093	3,923	3,170
Departmental supplementations	3,236	0	0	0	0	0	0	3,236	3,236	0
Total departmental	595,080	0	0	0	7,972	33,126	0	636,178	641,940	(5,762)
ADMINISTERED
Ordinary annual services
Administered items	4,804,204	(353,731)	0	27,235	23,909	0	(1,350)	4,500,267	4,386,283	113,984
Payments to CAC Act bodies	263,318	0	0	0	0	0	0	263,318	263,318	0
Other services
Specific payments to States, ACT, NT and Local Government	3,920	0	0	0	0	0	0	3,920	4,649	(729)
Administered assets and liabilities	67,226	0	0	0	0	0	0	67,226	193,884	(126,658)
Payments to CAC Act bodies	2,516	0	0	0	0	0	0	2,516	2,516	0
Total administered	5,141,184	(353,731)	0	27,235	23,909	0	(1,350)	4,837,247	4,850,650	(13,403)

(a) Appropriation Acts (No. 1, 2009-10: section 11).
(b) The variance of $8,932,000 for departmental annual services reflects the high level of asset acquisitions in 2009-10 not funded by Bill 2 equity. The administered ordinary annual services items variance of $113,984,000 and administered other services specific payments to States, ACT, NT and Local Governments variance of $729,000 relates to the difference in 2008009 and 2009-10 section 11 amounts. The administered assets and liabilities variance of $126,658,000 is caused by the use of prior year appropriation.

Note 24B: Unspent Departmental Annual Appropriations

	2011 $’000	2010 $’000
2004/05 Appropriation Act 1	0	8,405
2005/06 Appropriation Act 1	0	12,119
2005/06 Appropriation Act 2	7,083	7,083
2005/06 Appropriation Act 3	0	3,285
2005/06 Appropriation Act 4	1,604	1,604
2005/06 Appropriation Act 5	0	3,645
2006/07 Appropriation Act 1	0	25,753
2006/07 Appropriation Act 2	5,754	5,754
2006/07 Appropriation Act 3	0	18,622
2006/07 Appropriation Act 4	11,879	11,879
2006/07 Appropriation Act 5	0	3,681
2006/07 Appropriation Act 6	625	625
2007/08 Appropriation Act 1	12,573	17,946
2008/09 Appropriation Act 1	9,903	10,848
2008/09 Appropriation Act 4	1,217	1,217
2009/10 Appropriation Act 1	9,679	9,959
2009/10 Appropriation Act 2	4,098	4,098
2009/10 Appropriation Act 3	6,035	6,035
2009/10 Appropriation Act 4	683	683
2010/11 Appropriation Act 1	57,949	0
2010/11 Appropriation Act 1 – Cash at bank1	3,603	0
2010/11 Appropriation Act 1 – Departmental Capital Budget (DCB)	5,544	0
2010/11 Appropriation Act 2	89,456	0
2010/11 Appropriation Act 4	352	0
Total	228,037	153,241

¹ Cash at bank mainly relates to deposits made on 30 June 2011 that are subject to section 31 of the Financial Management and Accountability Act 1997.

Note 24C: Special Appropriations

The Department will investigate these circumstances and any impact on its special appropriations shown below, seeking legal advice as appropriate.

Authority	Type	Purpose	Appropriation applied	Appropriation applied
			2011 $’000	2010 $’000
Aged Care Act 1997, Administered	Unlimited Amount	To provide for the Commonwealth to give financial support for the provision of aged care.	7,876,499	7,055,609
Aged Care Bond Security Act 2006, Administered	Unlimited Amount	To provide for the Commonwealth to give financial support for the provision of aged care.	0	15,524
Health Insurance Act 1973, Administered	Unlimited Amount	An Act providing for payments by way of medical benefits and payments for hospital services and for other purposes.	16,333,188	15,381,077
National Health Act 1953, Administered	Unlimited Amount	An Act relating to the provision of pharmaceutical, sickness and hospital benefits and of medical and dental services.	9,681,734	9,062,050
Medical Indemnity Act 2002, Administered	Unlimited Amount	To provide Commonwealth funding to assist medical practitioners in obtaining affordable and secure medical indemnity cover.	59,258	53,542
Private Health Insurance Incentives Act 1998, Administered	Unlimited Amount	To enable payments of Government funds to be made to people who claim the Government 30% rebate on private health insurance.	4,690,882	4,302,297
Dental Benefits Act 2008, Administered	Unlimited Amount	Sets up a framework for provision of dental benefits.	58,210	63,414
Private Health Insurance Act 2007, Administered	Unlimited Amount	Shares the cost of claims within the private health insurance industry.	316,053	301,990
Private Health Insurance Act 2007, Administered	Unlimited Amount	Levies private health insurance to meet general operating costs of PHIAC	5,235	5,085
Aged or Disabled Persons Care Act 1954, Administered	Unlimited Amount	An Act to provide for assistance by the Commonwealth towards the provision of care for aged persons or disabled persons.	0	0
Aged Care (Consequential Provisions) Act 1997, Administered	Unlimited Amount	An Act to enact transitional provisions, and make consequential amendments, in connection with the enactment of the Aged Care Act 1997.	0	0
Health and Other Services (Compensation) Act 1995, Administered	Unlimited Amount	An Act relating to the consequences of certain compensation payments.	0	0
Medical Indemnity Agreement (Financial Assistance – Binding Commonwealth Obligations) Act 2002, Administered	Unlimited Amount	An Act about binding Commonwealth obligations to provide financial assistance under indemnity agreements relating to Australasian Medical Insurance Limited and United Medical Protection Limited.	0	0
Total			39,021,059	36,240,588

Note 24D: Disclosure by Agent in Relation to Annual and Special Appropriations
(‘Recoverable GST exclusive’)

The Department provided payments services on behalf of DPMC and ANPHA whilst they established their own mechanisms to support recently created functions. The Department did not make any agency payments in 2009-10. The agency arrangements for DPMC and ANPHA ceased on 30 June 2011.

Note 24E: Reduction in Administered Items – 2011
Ordinary Annual Services

1. Numbers in this section of the table must be disclosed to the cent.
2. Administered Items for 2010-11 were reduced to these amounts when the financial statements were tabled in Parliament as part of the Department’s 2010-11 annual report. This reduction is effective in 2011-12, but the amounts are reflected in Table A in the 2010-11 financial statements in columns ‘Appropriations reduced’ as they are adjustments to the 2010-11 appropriations.

Note 24E: Reduction in Administered Items - 2011
Other services
Specific payments to States, ACT, NT and Local Government

1. Numbers in this section of the table must be disclosed to the cent.
2. Administered Items for 2010-11 were reduced to these amounts when the financial statements were tabled in Parliament as part of the Department’s 2010-11 annual report. This reduction is effective in 2011-12, but the amounts are reflected in Table A in the 2010-11 financial statements in columns ‘Appropriations reduced’ as they are adjustments to the 2010-11 appropriations.

Note 24E: Reduction in Administered Items - 2010
Ordinary Annual Services

Outcome	Amount required – by Appropriation Act (No. 1)	Amount required – by Appropriation Act (No. 3)	Amount required – as represented by Spent	Amount required – as represented by Retention	Total amount required	Total amount appropriated	Total reduction
Outcome 1	273,654,231.47	0.00	220,070,010.99	53,584,220.48	273,654,231.47	299,529,000.00	25,874,768.53
Outcome 2	655,348,881.50	0.00	609,495,118.36	45,853,763.14	655,348,881.50	676,109,000.00	20,760,118.50
Outcome 3	135,601,000.00	2,696,168.45	110,900,790.31	27,396,378.14	138,297,168.45	142,510,000.00	4,212,831.55
Outcome 4	558,408,889.12	0.00	517,651,154.18	40,757,734.94	558,408,889.12	704,474,000.00	146,065,110.88
Outcome 5	842,803,991.99	0.00	751,000,701.08	91,803,290.91	842,803,991.99	856,742,000.00	13,938,008.01
Outcome 6	173,872,162.59	0.00	164,049,326.89	9,822,835.70	173,872,162.59	175,111,000.00	1,238,837.41
Outcome 7	342,772,861.90	0.00	328,989,078.02	13,783,783.88	342,772,861.90	348,931,000.00	6,158,138.10
Outcome 8	585,091,194.49	0.00	546,935,037.95	38,156,156.54	585,091,194.49	614,526,000.00	29,434,805.51
Outcome 9	598,983.10	0.00	598,983.10	0.00	598,983.10	14,673,000.00	14,074,016.90
Outcome 10	195,274,589.63	0.00	176,493,004.44	18,781,585.19	195,274,589.63	205,719,000.00	10,444,410.37
Outcome 11	143,140,069.39	0.00	126,993,287.85	16,146,781.54	143,140,069.39	145,991,000.00	2,850,930.61
Outcome 12	367,738,606.33	0.00	262,078,000.83	105,660,605.50	367,738,606.33	411,794,000.00	44,055,393.67
Outcome 13	75,774,705.85	0.00	71,593,155.01	4,181,550.84	75,774,705.85	82,395,000.00	6,620,294.15
Outcome 14	25,931,000.00	20,924,987.68	42,418,671.59	4,437,316.09	46,855,987.68	66,619,000.00	19,763,012.32
Outcome 15	76,725,363.52	0.00	71,566,765.50	5,158,598.02	76,725,363.52	84,966,180.23	8,240,816.71
Total	4,452,736,530.86	23,621,156.13	4,000,833,086.10	475,524,600.89	4,476,357,686.99	4,830,089,180.23	353,731,493.24

Notes:

1. Numbers in this section of the table must be disclosed to the cent.
2. Administered Items for 2010-11 were reduced to these amounts when the financial statements were tabled in Parliament as part of the Department’s 2009-10 annual report. This reduction is effective in 2010-11, but the amounts are reflected in Table A in the 2009-10 financial statements in columns ‘Appropriations reduced’ as they are adjustments to the 2009-10 appropriations.

Note 24E: Reduction in Administered Items – 2010
Other services
Specific payments to States, ACT, NT and Local Government

Outcome	Amount required – by Appropriation Act (No. 2)	Amount required – by Appropriation Act (No. 4)	Amount required – as represented by Spent	Amount required – as represented by Retention	Total amount required	Total amount appropriated	Total reduction
Outcome 1	0.00	1,620,000.00	945,000.00	675,000.00	1,620,000.00	1,620,000.00	0.00
Outcome 2	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Outcome 3	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Outcome 4	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Outcome 5	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Outcome 6	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Outcome 7	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Outcome 8	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Outcome 9	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Outcome 10	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Outcome 11	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Outcome 12	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Outcome 13	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Outcome 14	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Outcome 15	2,300,000.00	0.00	2,300,000.00	0.00	2,300,000.00	2,300,000.00	0.00
Total	2,300,000.00	1,620,000.00	3,245,000.00	675,000.00	3,920,000.00	3,920,000.00	0.00

Notes:

1. Numbers in this section of the table must be disclosed to the cent.
2. Administered Items for 2010-11 were reduced to these amounts when the financial statements were tabled in Parliament as part of the Department’s 2009-10 annual report. This reduction is effective in 2010-11, but the amounts are reflected in Table A in the 2009-10 financial statements in columns ‘Appropriations reduced’ as they are adjustments to the 2009-10 appropriations.

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