General government
2013-14 End-of-year information requirements
This guidance material outlines the timelines and information requirements to finalise departmental
funding requests prior to the end of the current financial year.
Key dates:
2 June 2014 – Ministers to finalise requests to access prior year appropriation (Section 33).
13 June 2014 – Ministers to finalise departmental funding requests (Sections 29, 30 and 35).
Action required
Prior to the end of each financial year there is a need to finalise departmental funding requests in
order to meet legislative requirements and to advise the Treasurer on the likely outcome for the
year. This requires the responsible Minister to request for approval by the Treasurer the following
items:

2 June 2014 - Requests to access prior year appropriation as determined under Section 33 of
the FMA are required by.

13 June 2014:

completed annotated receipts agreements required under Section 29 of the FMA for the
2014-15 financial year;

details of any appropriation transfers allowed under Section 30 (Section 31(1)(b) for
Parliament) of the Financial Management Act 1994 (FMA); and

final budget supplementation requirements from the Advance to Treasurer (TA)
appropriation and advances provided under Section 35 of the Financial Management Act
1994 (FMA).
The specific requirements relating to each of the above are provided below.
Budget supplementation requirements
Ministers may seek supplementation to current year funding from the Advance to Treasurer (TA)
annual appropriation, or advances under Section 35 of the FMA to meet urgent funding claims.
TA is intended to be used only where a department has exhausted, or is close to exhausting, all other
available legal sources of funding. Departments are reminded that they will need to provide
appropriate supporting documentation for their Minister to demonstrate to the Treasurer that their
TA application satisfies the criteria for TA, i.e. that they are of an urgent and unavoidable nature.
In submitting information on the anticipated level of budget supplementation the following
information needs to be supplied:
Page 1
General government

details on post 2013-14 Budget output/asset initiatives and/or other urgent claims already
approved by the Treasurer or the Budget and Expenditure Review Committee (BERC) for 201314;

items for which the Treasurer has already provided an approval-in-principle for TA; and

any new items that have not yet been approved or approved-in-principle including justification
for each item.
Departments should assess their final supplementation requirements taking into account any factors
that will reduce the final drawdown against the supplementation amount. For example, where a
BERC initiative is not expected to be fully delivered in 2013-14, an urgent claim has not eventuated
or other sources of departmental revenue are available, the final draw down request from the
Minister should be reduced.
Please note that full supplementation for 2013-14 initiatives will only be provided for those
initiatives that will be fully delivered in the 2013-14 financial year. It is not possible to carryover the
approved budget supplementation amounts into 2014-15.
In assessing budget supplementation requirements, Ministers are requested to provide a complete
list of all 2013-14 TA supplementation requests for their department in the format set out in
Attachment A.
Appropriation transfers
Under Section 30 of the FMA (Section 31(1)(b) for Parliament), the Treasurer may approve the
transfer of funding between appropriation items within a financial year. For example, a transfer
between Provision of outputs and Additions to the net asset base. Ministers are required to identify
any appropriation transfers not already approved by the Treasurer, that are required for 2013-14, by
completing Attachment B and providing justification for the transfers requested.
Carryover requirements
Under Section 32 of the FMA, the Treasurer may determine the level of unused appropriation to be
carried over, although the final determination does not need to be completed prior to 30 June.
A preliminary estimate will be used to inform the Treasurer regarding the likely 2013-14 outcome
and to assist in finalising 2013-14 supplementation requirements. The preliminary carryover estimate
should be provided as part of the updated Chief Financial Officer forecasts for June. These will be
requested following consolidation of the April year to date actual results.
Page 2
General government
Attachment C provides guidance on requests for carryover from 2013-14 to 2014-15, including the
business rules for deciding carryover amounts.
You should also note that formal carryover approval will still be required following the end of the
financial year. More details regarding this specific requirement will be outlined in a subsequent
information request as part of the 2013-14 Financial Report for the State of Victoria preparation.
Annotated Receipts Agreements
Under Section 29 of the FMA, it is necessary to have annotated receipts agreements in relation to
Commonwealth specific purpose payments (SPPs) and national partnership payments; asset sale receipts; and
eligible user charges a Minister wishes to annotate during 2014-15. These agreements need to be signed by
both the Treasurer and the relevant portfolio Minister prior to the funds being received and annotated to
their department’s appropriation amounts.
Attachment D contains two templates for the annotated receipts agreements. The first should be
used for output revenue, while the second relates to capital items. You need to complete the
relevant template of Attachment D for each relevant portfolio Minister (noting that each template
can reflect a number of Section 29 agreements). Once all responses have been received, we will
submit an omnibus brief to the Treasurer requesting him to sign the agreements. Once the Treasurer
has signed these agreements, they will be forwarded to you to be countersigned by the relevant
portfolio Minister. Further guidance on the operation of these agreements is outlined in the Budget
and Financial Management Guidance No. 20, available at the following web address:
http://bfm.dtf.vic.gov.au/CA25713E0002EF44/pages/budgeting-bfm-guidances
Note: only items for which there is an estimate should be included, i.e. zeros or ‘–’ are not
acceptable. Should estimates for additional items become available, subsequent Net Appropriation
Agreements can be made.
Access to appropriation funding set aside in prior years
As part of the end of year process, any negative movements in the Consolidated Fund SAU balances
are required to be authorised under Section 33 of the FMA on or before 30 June by accessing
appropriation funding set aside in prior years.
Page 3
General government
An example of a negative movement for the year is where the closing balance at 30 June 2013 is
higher than the closing balance at 30 June 2014 resulting in an overall outflow of cash in the balance
sheet. Any departments who are expecting a negative movement at the end of the year must
request authorisation to access prior year funds before the end of the year. Any requests to access
prior year funds to cover balance sheet movements such as payables or employee entitlements will
not impact on the department’s balances of surplus on provision of outputs or depreciation
equivalent.
Any Ministerial requests for authorisation to access funding under Section 33 must be provided to
your usual DTF Relationship Manager, in writing, by no later than 2 June 2014. Further information
If you have any questions regarding this information request, please contact, in the first instance,
your usual DTF Relationship Manager.
Page 4
General government
Attachment A
Budget supplementation requirements
This attachment presents the information that needs to provide to enable DTF to advise the
Treasurer on the final requirement for 2013-14 supplementation, including supplementation from
the Advance to Treasurer (TA) appropriation and Section 35 of the Financial Management Act 1994.
This includes:
a) funding post 2013-14 Budget output/asset initiatives and/or other cost pressures already
approved by the Treasurer or BERC;
b) items for which the Treasurer has provided approval in-principle agreement to funding from TA;
and
c) any new items not yet approved or approved in principle.
An example of the table to be completed is shown below.
[Department name]
Requirement
Department
identified
alternative
funding
Final
Department
requested TA
0
0
0
0
0
0
0
0
0
Items previously approved in
principle
0
0
0
0
0
Other urgent claims (new
requests)
0
0
0
0
0
Total supplementation
0
0
0
0
0
Original amount
approved
Amount in
SRIMS
0
TA
Previous BERC /Treasurer
approvals and approvals inprinciple
Other urgent claims (new
requests)
Section 35
Page 5
General government
Attachment B
Appropriation transfers
This attachment presents the information to be provided by to enable DTF to advise the Treasurer on
the final requirement for transfer between appropriation types pursuant to Section 30, or 31(1)(b)
for Parliament, of the Financial Management Act 1994.
The table will need to be completed showing the amount of funding required to be transferred
between appropriation types. In addition, justification for the requested transfers is also required.
.
[Enter department name]
Provision of
outputs
Additions to net
asset base
Item
$'000
xx
$'000
xx
Payments on
behalf of the
State
$'000
xx
Total
xx
xx
xx
Page 6
General government
Attachment C
Carryover requirements
This attachment provides guidance for applying for carryover of unapplied 2013-14 appropriations.
A carryover occurs where an annual appropriation amount for the previous year was not applied (i.e.
where you have not delivered your budgeted outputs, asset investments or payments on behalf of
the State) and where the Treasurer has approved the application of this amount in the next
succeeding year only.
A carryover is different from a surplus, in that a surplus results where there has been full delivery of
all budgeted outputs in a particular financial year (that meets budgeted performance targets) at
lower than budgeted cost. All annual appropriation for the provision of those outputs will be
received but the associated operating expenses will be less and therefore an operating surplus is
created that you can retain. In this instance, you would have no unapplied output appropriation
available carryover.
Carryover of unapplied appropriation will be provided pursuant to the provisions of Section 32 (1) of
the Financial Management Act 1994. Amounts approved for carryover will be incorporated as a
one-off addition to the budget estimates for 2014-15.
Unapplied appropriation will therefore relate to some shortfall or delay in the delivery of outputs or
asset investment. This unapplied appropriation lapses unless it is carried over pursuant to Section 32
of the Financial Management Act 1994. There are three scenarios that can occur:
a) Output provision delayed to next year – you intend to provide the ‘delayed’ 2013-14 budgeted
outputs after 1 July 2014. You should therefore apply to the Treasurer for carryover of the
unapplied annual appropriation;
b) You intend to provide different outputs next year in place of outputs not provided in 2013-14 –
you should apply for carryover and justify the non-delivered 2013-14 outputs being replaced with
others in 2014-15; and
c) Outputs not delivered in 2013-14 are not to be provided or replaced with others in 2014-15 – in
this case the unapplied annual appropriation lapses.
You may not carryover appropriation provided for interest, the capital asset charge, concessions
and other transfer payments which are outside the direct control of management (e.g.
non-discretionary expenditure).
You may apply to carryover unapplied 2013-14 annual appropriations in relation to:
a) Appropriation for provision of outputs or payments made on behalf of the State, on the condition
that:
i.
the reasons for the under expenditure in 2013-14 are outlined;
ii.
the additional outputs which will be provided in 2014-15 (including measures of quantity,
quality, timeliness and price) or the administered payments to be made are clearly
identified; and
Page 7
General government
iii.
The total amounts being carried forward do not exceed three per cent of the total
appropriation for the year. (Note: larger carryover amounts may be approved by the
Treasurer only in exceptional circumstances).
b) Appropriation for additions to the net asset base, on the condition that:
i.
the reasons for the under expenditure in 2013-14 are outlined;
ii.
a revised estimate of cash flows to project completion is provided; and
iii.
in the case of minor works provisions, a clear purpose for the amounts carried forward is
identified.
There is no automatic right to carryover part or the total of an appropriation amount, nor is it
possible to carryover previous year’s carryover (i.e. 2012-13) or unused TA or Section 35 advances
approved for 2013-14.
Note: Specific Purpose Payments (SPP) or national partnership agreement balances for
Commonwealth/State agreements that continue beyond a financial year are available in the next
year subject to you meeting the Section 32 Carryover requirements of the Financial Management Act
1994. SPP amounts to be carried over should be identified in the table below under Commonwealth
Funds.
Action required
The table below should be completed as part of the Chief Financial Officer forecasts following the
consolidation of April actuals showing the amount of funding required to be carried over by
appropriation type from 2013-14 to 2014-15. At this stage, justification for the requested carryovers
is NOT required.
[Enter department name]
State funds
$'000
Commonwealth
funds
$'000
Total
$'000
Provision of outputs (section 29 of the Financial Management
Act 1994 applies)
xx
xx
xx
Additions to the net asset base (section 29 of the Financial
Management Act 1994 applies)
xx
xx
xx
Payments on behalf of the State
xx
xx
xx
Total
XX
XX
XX
Page 8
General government
Attachment D
NET APPROPRIATION AGREEMENT
PURSUANT TO SECTION 29 OF THE FINANCIAL MANAGEMENT ACT 1994
BETWEEN THE TREASURER AND MINISTER FOR [Enter Portfolio]
For the purposes of Section 29 of the Financial Management Act 1994, it is agreed that all money
received from the items of revenue specified below, estimated at (but not limited to) the respective
amounts shown in the column headed ‘2014-15 agreed revenue base’ may be:
(a)
credited to the item of expenditure set out in Schedule 1 of the Appropriation (2014/15) Act
(‘the Act’), which is specified below; and
(b)
applied for the purpose of that item in accordance with the Act.
2013-14 revised
revenue estimate
$’000
2014-15 agreed 2014-15 agreed
revenue base revenue estimate
$’000
$’000
Output Revenue Item
Title of item
(entity-acct-auth)
xx
xx
xx
Expense Item
Provision of Outputs (net appropriation – see Section 29)
(entity-acct-auth)
HON. MICHAEL O’BRIEN MP
Treasurer
[Enter relevant Minister’s name]
Minister for [Enter relevant portfolio]
DATE:
Page 9
General government
NET APPROPRIATION AGREEMENT
PURSUANT TO SECTION 29 OF THE FINANCIAL MANAGEMENT ACT 1994
BETWEEN THE TREASURER AND MINISTER FOR [Enter Portfolio]
For the purposes of Section 29 of the Financial Management Act 1994, it is agreed that all money
received from the items specified below, estimated at (but not limited to) the respective amounts
shown in the column headed ‘2 Agreed Receipts Estimate’ may be:
(a)
credited to the item of expenditure set out in Schedule 1 of the Appropriation (2014/15) Act
(‘the Act’), which is specified below; and
(b)
applied for the purpose of that item in accordance with the Act.
2013-14 revised
receipts estimate
$’000
2014-15 agreed
receipts base
$’000
2014-15 agreed
receipts estimate
$’000
xx
xx
xx
Capital Item
Title of item
(entity-acct-auth)
Capital Item
Increase in Net Assets Base (net appropriation – see Section 29)
(entity-acct-auth)
HON. MICHAEL O’BRIEN MP
Treasurer
[Enter relevant Minister’s name]
Minister for [Enter relevant portfolio]
DATE:
Page 10