Portfolio Budget Statements 2011 12

PORTFOLIO BUDGET STATEMENTS 2011–12 BUDGET RELATED PAPER NO. 1.15B

PRIME MINISTER AND CABINET PORTFOLIO

(DEPARTMENT OF REGIONAL AUSTRALIA, REGIONAL DEVELOPMENT AND LOCAL GOVERNMENT) BUDGET INITIATIVES AND EXPLANATIONS OF APPROPRIATIONS SPECIFIED BY OUTCOMES AND PROGRAMS BY AGENCY

ii ISBN 978-0-9870837-2-2

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The document must be attributed as the Portfolio Budget Statements 2011-12 Prime Minister and Cabinet Portfolio, Department of Regional Australia, Regional Development and Local Government.

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Abbreviations and conventions The following notation may be used:

NEC/nec not elsewhere classified - nil .. not zero, but rounded to zero na not applicable (unless otherwise specified) nfp not for publication $m $ million $b $ billion

Figures in tables and in the text may be rounded. Figures in text are generally rounded to one decimal place, whereas figures in tables are generally rounded to the nearest thousand. Discrepancies in tables between totals and sums of components are due to rounding.

Enquiries Should you have any enquiries regarding this publication please contact Ms Kym Partington, Chief Financial Officer, Department of Regional Australia, Regional Development and Local Government on telephone (02) 6274 6945.

A copy of this document can be located on the Australian Government Budget website at: http://www.budget.gov.au.

v User Guide to the Portfolio Budget Statements

vi USER GUIDE

The purpose of the 2011–12 Portfolio Budget Statements (PB Statements) is to inform Senators and Members of Parliament of the proposed allocation of resources to Government outcomes by agencies within the portfolio. Agencies receive resources from the annual appropriations Acts, special appropriations (including standing appropriations and special accounts), and revenue from other sources.

A key role of the PB Statements is to facilitate the understanding of proposed annual appropriations in Appropriation Bills No. 1 and No. 2 2011–12. In this sense the PB Statements are Budget related papers and are declared by the Appropriation Acts to be ‘relevant documents’ to the interpretation of the Acts according to section 15AB of the Acts Interpretation Act 1901.

The PB Statements provide information, explanation and justification to enable Parliament to understand the purpose of each outcome proposed in the Bills.

As required under section 12 of the Charter of Budget Honesty Act 1998, non-general government sector entities are not consolidated into the Commonwealth general government sector fiscal estimates and, accordingly, these entities are not reported in the PB Statements.

The Department of Regional Australia, Regional Development and Local Government was established by a machinery of government change on 14 September 2010. Functions from the former Department of Infrastructure, Transport, Regional Development and Local Government and the Attorney-General’s Department were transferred to the department and appropriations were amended on 1 October 2010 to effect the transfer of funding under s32 of the Financial Management and Accountability Act 1997 (FMA Act). The 2010-11 financial year figures represent the first nine months of operations.

vii CONTENTS

Portfolio Overview 1 Department of Regional Australia, Regional Development and Local Government 3

Agency resources and planned performance 9 Department of Regional Australia, Regional Development and Local Government 11 National Capital Authority55

Glossary 83 Index 89

viii Portfolio Overview

1 DEPARTMENT OF REGIONAL AUSTRALIA, REGIONAL DEVELOPMENT AND LOCAL GOVERNMENT

PORTFOLIO OVERVIEW

Minister and portfolio responsibilities

The Prime Minister and Cabinet Portfolio includes two Departments of State under the Public Service Act 1999: the Department of the Prime Minister and Cabinet; and the Department of Regional Australia, Regional Development and Local Government. These Portfolio Budget Statements (PB Statements) detail the allocation of resources for the Department of Regional Australia, Regional Development and Local Government (DRARDLG) and its related entity the National Capital Authority (NCA). The Department of the Prime Minister and Cabinet and its related entities are reported in separate PB Statements (Budget Related Paper No. 1.15A refers).

The entities in the Regional Australia, Regional Development and Local Government portfolio support the Government’s commitment to improve the social, economic and environmental outcomes for Australia’s regions. The principal responsibilities that fall within the purview of the department and its related entity were described in the Administrative Arrangement Orders (AAO) of 14 September 2010 (amended on 14 October 2010) as being:

 administration of the Jervis Bay Territory, the Territory of Cocos (Keeling) Islands, the Territory of Christmas Island, the Coral Sea Islands Territory, the Territory of Ashmore and Cartier Islands, and Commonwealth responsibilities on Norfolk Island;  constitutional development of the Northern Territory and the Australian Capital Territory;  delivery of regional and rural specific services;  planning and land management in the Australian Capital Territory;  regional development;  matters relating to Local Government;  regional Australia policy and co-ordination; and  support for ministers and parliamentary secretaries with regional responsibilities.

On 7 February 2011, the Prime Minister announced new governance arrangements to provide coordination and oversight of the Commonwealth Government’s contribution towards the recovery and reconstruction effort and to ensure close, effective working relationships with State governments to achieve the best possible reconstruction outcomes for the funds invested. Whilst responsibility for disaster prevention,

2 Portfolio Overview preparedness, response and recovery rests primarily with the States and Territories, the scale of the impacts of events in late 2010-early 2011 across all sections of the population, including the significant damage to infrastructure, required additional support from the Commonwealth Government. A National Disaster Recovery Taskforce was established in DRARDLG to provide strategic direction and oversight of the Commonwealth contribution to the reconstruction efforts. The legislation administered by entities in the portfolio comprises:  ACT Self-Government (Consequential Provisions) Act 1988  Ashmore and Cartier Islands Acceptance Act 1933  Australian Capital Territory (Planning and Land Management) Act 1988, except to the extent administered by the Minister for Finance and Deregulation  Australian Capital Territory (Self-Government) Act 1988  Canberra Water Supply (Googong Dam) Act 1974  Christmas Island Act 1958  Christmas Island Agreement Acts  Cocos (Keeling) Islands Act 1955  Coral Sea Islands Act 1969  Growth Centres (Financial Assistance) Act 1973  Jervis Bay Territory Acceptance Act 1915  Land Commissions (Financial Assistance) Act 1973  Local Government (Financial Assistance) Act 1995  Norfolk Island Act 1979  Northern Territory Acceptance Act 1910  Northern Territory (Self-Government) Act 1978, except sections 69 and 70  Parliament Act 1974  Removal of Prisoners (Territories) Act 1923, insofar as it relates to the Northern Territory (except to the extent administered by the Attorney-General) and to Norfolk Island, the Territory of Cocos (Keeling) Islands, the Territory of Christmas Island, the Coral Sea Islands Territory, and the Territory of Ashmore and Cartier Islands  Seat of Government Acceptance Acts  Seat of Government Act 1908  Seat of Government (Administration) Act 1910  Territories Law Reform Act 1992  Urban and Regional Development (Financial Assistance) Act 1974.

3 Portfolio Overview

The Department of Regional Australia, Regional Development and Local Government (DRARDLG)

DRARDLG provides a dedicated source of advice on regional Australia to the Government through the Minister for Regional Australia, Regional Development and Local Government, the Hon Simon Crean MP and the Regional Australia and Regional Development Committee of Cabinet. It administers targeted regional programs and investments and assists in the delivery of the Government’s Commitment to Regional Australia1.

The department works across Government and in partnership with State, Territory and Local Governments to ensure a coordinated approach to delivery of the Government’s policies, programs and investments that impact on regional Australia. The department is ensuring that the needs of different regions are understood and considered by Government to maximise economic growth, flexibility and diversity. It supports arrangements, including the Regional Development Australia Committee (RDAC) network, to empower local communities to advise on local priorities to input into Government policies and programs. The department also administers the Territories of the Ashmore and Cartier Islands, Christmas Island, the Cocos (Keeling) Islands, the Coral Sea Islands and Jervis Bay, and oversees national interests in the Australian Capital Territory (including through the National Capital Authority), the Northern Territory and Commonwealth responsibilities on Norfolk Island.

The Commonwealth National Disaster Recovery Taskforce (the Taskforce) was established in the department in 2011 to provide strategic direction and oversight of the Commonwealth Government’s contribution to reconstruction efforts in response to the extreme weather events of late 2010-early 2011. One of the main activities of the Taskforce is to ensure that the recovery effort takes account of local community engagement and input; ensures timely reconstruction and value for money; leverages available funding; and coordinates existing Commonwealth strategies and investment. The Taskforce also provides secretariat support to the Australian Government Reconstruction Inspectorate chaired by former Federal Finance Minister, Mr John Fahey AC. The Prime Minister’s Business Taskforce, chaired by the Hon Wayne Swan, MP, Deputy Prime Minister and Federal Treasurer, brings together ten Australian business leaders from a range of industries to mobilise businesses across Australia to assist with reconstruction efforts.

1 The Commitment to Regional Australia refers to the agreement signed on 7 September 2010 between the Australian Labor Party (represented by the Hon Julia Gillard MP, Prime Minister, and the Hon Wayne Swan MP, Deputy Prime Minister) and two independent Members of Parliament, Mr Rob Oakeshott MP and Mr Tony Windsor MP.

The National Capital Authority (NCA)

The NCA is established under the Australian Capital Territory (Planning and Land Management) Act 1988 (the PALM Act). The role of NCA is to manage the continuing interests of the Commonwealth in the National Capital, including the range of functions required to plan, promote, enhance and maintain the national characteristics and qualities of the capital.

Figure 1: Regional Australia, Regional Development and Local Government’s portfolio structure and outcomes

Minister for Regional Australia, Regional Development and Local Government The Hon Simon Crean MP

Department of Regional Australia, Regional Development and Local Government Secretary: Ms Glenys Beauchamp Outcome 1: Coordinated community infrastructure and services in rural, regional and Local Government areas through financial assistance. Outcome 2: Good governance in the Australian Territories through the maintenance and improvement of the overarching legislative framework for self-governing territories, and laws and services for non self-governing territories.

National Capital Authority Chief Executive Officer: Mr Gary Rake Outcome 1: Manage the strategic planning, promotion and enhancement of Canberra as the National Capital for all Australians through the development and administration of the National Capital Plan, operation of the National Capital Exhibition, delivery of education and awareness programs and works to enhance the character of the National Capital.

The National Disaster Recovery Taskforce is reported under DRARDLG Outcome 1 and reports to two Commonwealth Government ministers:  the Hon Simon Crean, MP, Minister for Regional Australia, Regional Development and Local Government, who is responsible for coordination and oversight of Commonwealth ministerial involvement in flood recovery and reconstruction in affected States other than Queensland, and  Senator the Hon Joe Ludwig, Minister for Agriculture, Fisheries and Forestry and Minister Assisting the Attorney General on Queensland Floods Recovery, who is responsible for coordination and oversight of Commonwealth involvement in the Queensland flood recovery and reconstruction.

PORTFOLIO RESOURCES

Table 1 shows the total resources provided to the portfolio in the 2011–12 budget year, by agency.

Table 1: Portfolio Resources 2011-12 Appropriation Receipts Total Bill No. 1 Bill No. 2 Special $'000 $'000 $'000 $'000 $'000 Departm e nt of Regional Australia, Regional Developm ent and Local Gove rnm ent Administered appropriations 309,848 90,231 1,609,717 - 2,009,796 Departmental appropriations 71,908 - - 60 71,968 Total: 381,756 90,231 1,609,717 60 2,081,764 National Capital Authority Administered appropriations 15,186 - - - 15,186 Departmental appropriations 14,359 - - 2,010 16,369 Total: 29,545 - - 2,010 31,555

Resources available w ithin portfolio: 2,113,319

7 Portfolio Overview Agency resources and planned performance

Department of Regional Australia, Regional Development and Local Government 11 National Capital Authority 55

8 Department of Regional Australia, Regional Development and Local Government

Agency resources and planned performance

DEPARTMENT OF REGIONAL AUSTRALIA, REGIONAL DEVELOPMENT AND LOCAL GOVERNMENT

Section 1: Agency overview and resources 15 1.1 Strategic direction statement 15 1.2 Agency resource statement 18 1.3 Budget measures 20 Section 2: Outcomes and planned performance 23 2.1 Outcomes and performance information 23 Section 3: Explanatory tables and budgeted financial statements 39 3.1 Explanatory tables 39 3.2 Budgeted financial statements 42

10 DEPARTMENT OF REGIONAL AUSTRALIA, REGIONAL DEVELOPMENT AND LOCAL GOVERNMENT

Section 1: Agency overview and resources

1.1 STRATEGIC DIRECTION STATEMENT

The Department of Regional Australia, Regional Development and Local Government (DRARDLG) works across the Government and in partnership with States, Territories, regional groups, Regional Development Australia Committees and Local Government to maximise economic growth, flexibility and diversity. The department is ensuring that the needs of different regions are understood and considered by Government in its policy development and service delivery functions. The department achieves this through two outcomes:  coordinated community infrastructure and services in rural, regional and Local Government areas through financial assistance; and  good governance in the Australian Territories through the maintenance and improvement of the overarching legislative framework for self-governing Territories, and laws and services for non self-governing Territories. The key roles of the department include:  Partnering with a network of Regional Development Australia (RDA) Committees and Local Governments to ensure that policy making and advice is informed by local input and priorities, and interventions are tailored to meet the diverse needs of our regions.  Developing specific regional policies in areas such as economic development and community-based structural adjustment in response to social, economic or environmental priorities.  Working across all levels of government to develop and implement a place based approach to co-ordinate, integrate and leverage government initiatives and investments within regions.  Working across all Commonwealth agencies to ensure that regional implications are embedded in broader policy considerations and program implementation.  Developing a sound evidence base and strong analytic capacity on regional economic, social and environmental issues to inform and underpin regional policy development and program delivery, and to influence other portfolio policies and programs.

11 DRARDLG Budget Statements

 Managing regional grants programs, to deliver community and economic infrastructure, to foster growth and to improve the economic and social outcomes in Australia’s regions and local communities.  Providing strategic direction and oversight of the Commonwealth Government’s recovery efforts in response to the flood and cyclone affected areas arising from the events of late 2010-early 2011; and secretariat support to the Australian Government Reconstruction Inspectorate.  Administering the Territories of the Ashmore and Cartier Islands, Christmas Island, the Cocos (Keeling) Islands, the Coral Sea Islands and Jervis Bay, and oversighting national interests in the Australian Capital Authority (including through the National Capital Authority), the Northern Territory and Commonwealth responsibilities on Norfolk Island. In 2011-12, the department will continue to develop and implement a range of new initiatives in regional areas including:  Bringing together critical regional stakeholders and developing approaches to address the impacts of key priority issues. Areas of focus may include the Murray Darling Basin Plan, climate change and carbon pricing, digital productivity and workforce participation.  Working with all other agencies to embed regional implications in broader policy considerations and program implementation.  Developing myregion.gov.au interactive website - a key element of engaging with regional communities and providing better access to government information on regions.  Establishing and supporting a Regional Development Policy Centre.  Supporting a COAG Standing Council on regional Australia.  Strengthening the Regional Development Australia (RDA) network and building the capacity of RDA Committees.  Managing the Australian Government’s new Regional Development Australia Fund (RDAF) and Community Infrastructure Grants (CIG).  Funding a number of projects including: partnering with Football NSW to construct a world class football and sporting precinct at Riverstone West; upgrading the indoor sports stadium at Port Macquarie; and contributing to the restoration of the Port of Karumba seawall.  Supporting regional cities to implement strategic and targeted marketing strategies to promote the benefits and opportunities of living and working in those cities to the broader community.  Working with the Queensland and Victorian Governments, and other State governments where appropriate, to ensure timely recovery and reconstruction of disaster–affected infrastructure that achieves value for money.

 Progressing a referendum on constitutional recognition of Local Government.  Upgrading essential infrastructure on Christmas Island including water and waste water pressure mains and pumping upgrade, hospital extension, fuel supply and storage facility, and an extension to the wharf.  Providing support for the joint national program for the celebration of the Centenary of Canberra with the ACT government.  Reforms to promote economic sustainability and improved governance for Norfolk Island.

1.2 AGENCY RESOURCE STATEMENT

Table 1.1 shows the total resources from all sources. The table summarises how resources will be applied by outcome and by administered and departmental classification.

Table 1.1: Department of Regional Australia, Regional Development and Local Government Resource Statement — Budget estimates for 2011-12 as at Budget May 2011 Estimate Proposed Total Actual of prior + at Budget = estimate available year amounts appropriation available in 2011-12 2011-12 2011-12 2010-11 $'000 $'000 $'000 $'000 Ordinary annual services 1 Departm ental appropriation Prior year departmental appropriation2 6,588 3,733 10,321 - Departmental appropriation3 - 68,175 68,175 44,533 s31 relevant agency receipts4 - 60 60 45 Total 6,588 71,968 78,556 44,578 Adm inistered expenses Outcome 1 - 202,731 202,731 100,356 Outcome 25 36,478 107,117 143,595 117,500 Total 36,478 309,848 346,326 217,856 Total ordinary annual services A 43,066 381,816 424,882 262,434 Other services 6 Adm inistered expenses Specific paym ents to States, ACT, NT and local governm ent Outcome 1 - 56,249 56,249 245,272 Total - 56,249 56,249 245,272 Adm inistered non-operating Administered assets and liabilities - 33,982 33,982 57,738 Total - 33,982 33,982 57,738 Total other services B - 90,231 90,231 303,010 Total available annual appropriations 43,066 472,047 515,113 565,444 Special appropriations Special appropriations lim ited by criteria/entitlem ent Local Government (Financial Assistance) Act 1995 - s19 - 1,609,717 1,609,717 2,107,606 Total special appropriations C - 1,609,717 1,609,717 2,107,606 Total appropriations excluding Special Accounts 43,066 2,081,764 2,124,830 2,673,050

Table 1.1: Department of Regional Australia, Regional Development and Local Government Resource Statement — Budget estimates for 2011-12 as at Budget May 2011 (continued) Estimate Proposed Total Actual of prior + at Budget = estimate available year amounts appropriation available in 2011-12 2011-12 2011-12 2010-11 $'000 $'000 $'000 $'000 Special Accounts Opening balance7 - 2,800 2,800 2,800 Non-appropriation receipts to Special Accounts - 1,000 1,000 667 Total Special Account D - 3,800 3,800 3,467 Total resourcing (A+B+C+D) 43,066 2,085,564 2,128,630 2,676,517 1 Appropriation Bill (No.1) 2011-12. 2 Estimated balance carried forward from previous year. 3 Includes an amount of $1.0m in 2011-12 for the Departmental Capital Budget (refer to Table 3.2.5 for further details). For accounting purposes this amount has been designated as 'contributions by owners'. 4 Estimate of own source receipts. 5 Includes an amount of $10.8m in 2011-12 for the Administered Capital Budget (refer to Table 3.2.10 for further details). For accounting purposes this amount has been designated as 'contributions by owners'. 6 Appropriation Bill (No.2) 2011-12. 7 Estimated opening balance for special accounts (refer Table 3.1.2 for further details).

Excludes payments for National Partnership Payments to and through the States and Territories. The Treasury holds the appropriation for these items and reports the financial details accordingly. The non-financial performance of the corresponding programs remains the responsibility of the department.

All figures are GST exclusive.

1.3 BUDGET MEASURES

Budget measures relating to the department are detailed in Budget Paper No. 2 and summarised below.

Table 1.2: Department of Regional Australia, Regional Development and Local Government 2011-12 Budget measures Program 2010-11 2011-12 2012-13 2013-14 2014-15 $'000 $'000 $'000 $'000 $'000 Expense measures Centenary of Canberra - a gift to the national capital 2.1 Administered - - - - - Departmental - - - - - Total - - - - - Centenary of Canberra - contribution to a joint national program 2.1 Administered - - - - - Departmental - 122 123 124 - Total - 122 123 124 - Community Infrastructure Grants - additional funding1 1.1 Administered - - - - - Departmental - - - - - Total - - - - -

Department of Regional Australia, Regional Development and Local Government - additional resourcing 1.1 Administered - - - - - Departmental 2,306 17,006 11,313 9,645 9,567 Total 2,306 17,006 11,313 9,645 9,567 Efficiency dividend - temporary increase in the rate all Administered - - - - - Departmental - (191) (535) (601) (721) Total - (191) (535) (601) (721) Local government payments - accelerating payments 1.2 Administered 536,572 (536,572) - - - Departmental - - - - - Total 536,572 (536,572) - - - MyRegion website - establishment 1.1 Administered - - - - - Departmental - 1,971 829 713 718 Total - 1,971 829 713 718

Table 1.2: Department of Regional Australia, Regional Development and Local Government 2011-12 Budget measures (continued) Program 2010-11 2011-12 2012-13 2013-14 2014-15 $'000 $'000 $'000 $'000 $'000 Natural Disaster Recovery and Rebuilding - assistance to Queensland local governments 1.1 Administered - - - - - Departmental - - - - - Total - - - - - Natural Disaster Recovery and Rebuilding - Commission of Inquiry into Queensland Floods all Administered - - - - - Departmental (81) (87) - - - Total (81) (87) - - - Natural Disaster Recovery and Rebuilding - National Disaster Recovery Taskforce and the Reconstruction Inspectorate - establishment 1.1 Administered - - - - - Departmental 1,427 6,934 3,161 - - Total 1,427 6,934 3,161 - - Natural Disaster Recovery and Rebuilding - Priority Regional Infrastructure Program - reallocation 1.1 Administered - (50,000) (125,000) (125,000) (50,000) Departmental - - - - - Total - (50,000) (125,000) (125,000) (50,000) Norfolk Island Government - financial assistance2 2.1 Administered 4,209 - - - - Departmental - - - - - Total 4,209 - - - - Port Macquarie indoor sports stadium upgrade - contribution 1.1 Administered - 1,400 1,400 - - Departmental - - - - - Total - 1,400 1,400 - - Regional Development Australia committees - additional resourcing 1.1 Administered - 3,155 3,228 3,295 3,365 Departmental - 2,085 1,702 1,717 1,730 Total - 5,240 4,930 5,012 5,095 Restoration of the Port of Karumba seawall - contribution 1.1 Administered - 2,000 - - - Departmental - - - - - Total - 2,000 - - -

Table 1.2: Department of Regional Australia, Regional Development and Local Government 2011-12 Budget measures (continued) Program 2010-11 2011-12 2012-13 2013-14 2014-15 $'000 $'000 $'000 $'000 $'000 Riverstone Football and Sporting Precinct Community Infrastructure Initiative 1.1 Administered - 2,000 5,000 1,000 - Departmental - - - - - Total - 2,000 5,000 1,000 - South Australian local roads - continuation of supplementary funding 1.2 Administered - 16,349 17,042 17,685 - Departmental - 696 351 - - Total - 17,045 17,393 17,685 - Sustainable Australia - promoting regional living 1.1 Administered - 2,000 4,000 4,000 - Departmental - 620 320 420 100 Total - 2,620 4,320 4,420 100 Total expense measures Administered 540,781 (559,668) (94,330) (99,020) (46,635) Departmental 3,652 29,156 17,264 12,018 11,394 Total 544,433 (530,512) (77,066) (87,002) (35,241) Capital measures Border Security - Christmas Island infrastructure 2.1 Administered - 13,000 21,500 9,100 - Departmental - - - - - Total - 13,000 21,500 9,100 - Efficiency dividend - temporary increase in the rate all Administered - (55) (90) (100) (185) Departmental - (5) (12) (21) (16) Total - (60) (102) (121) (201) Total capital measures Administered - 12,945 21,410 9,000 (185) Departmental - (5) (12) (21) (16) Total - 12,940 21,398 8,979 (201) 1 The Government will provide additional funding for the Community Infrastructure Grants program, the cost of which will be met from within existing resources by redirecting $49m from the Priority Regional Infrastructure Program (now a part of the Regional Development Australia Fund). 2 $6.4m has been provided in 2010-11 to enable the Norfolk Island Government to continue to provide essential services to its population. The 2010-11 PAES included additional funding of $4.2m, which was a decision made after the 2010-11 Mid-Year Economic Fiscal Outlook but prior to the publication of the PAES. To ensure completeness of Budget documentation this measure will be published in the 2011-12 Budget Paper No.3 and has been reflected in these PB Statements. The additional $2.2m will be funded internally by the department and has no fiscal impact. Prepared on a Government Finance Statistics (fiscal) basis.

Section 2: Outcomes and planned performance

2.1 OUTCOMES AND PERFORMANCE INFORMATION

Government outcomes are the intended results, impacts or consequences of actions by the Government on the Australian community. Commonwealth programs are the primary vehicle by which government agencies achieve the intended results of their outcome statements. Agencies are required to identify the programs which contribute to Government outcomes over the Budget and forward years.

Each outcome is described below, together with its related programs, specifying the performance indicators and targets used to assess and monitor the performance of the department in achieving Government outcomes.

OUTCOME 1

Outcome 1: Coordinated community infrastructure and services in rural, regional and local government areas through financial assistance.

Outcome 1 Strategy Outcome 1 is delivered through the following programs:

 Regional Development.  Local Government. The department will advise on, and lead, national efforts to address regional and Local Government issues by:  Developing specific regional policies in areas such as economic development and community-based adjustment in response to social, economic or environmental priorities.  Working across all Commonwealth agencies to ensure that regional implications are embedded in broader policy considerations and program implementation.  Developing a sound evidence base and strong analytic capacity on regional economic, social and environmental issues to inform and underpin regional policy development and program delivery, and to influence other portfolio policies and programs.  Developing the myregion.gov.au interactive website - a key element of engaging with regional communities.  Supporting a COAG Standing Council on regional Australia.

 Establishing, supporting and monitoring a Regional Development Policy Centre.  Partnering with a network of 55 Regional Development Australia committees, 565 Local Governments together with State and Territory governments to strengthen networks to ensure that policy making and advice is informed by local input and priorities, and interventions are tailored to meet the diverse needs of our regions.  Managing regional grants programs, including the Australian Government’s new Regional Development Australia Fund (RDAF), the Community Infrastructure Grants (CIG) Program and targeted funding to local communities through the Regional and Local Community Infrastructure Program (RLCIP).  Delivering the Better Regions Program.  Supporting regional cities to promote the benefits and opportunities of living and working in those cities to the broader Australian community.  Co-ordinating, integrating and leveraging government initiatives in its northern Australian program including establishing a Northern Australia Ministerial Forum that oversees initiatives to promote sustainable economic development across northern Australia.  Implementing a government response to the Northern Australia Land and Water Taskforce.  Working closely with the Western Australia Department of State Development, the Shire of Wyndham East Kimberley, and relevant Aboriginal corporations, in the implementation of the East Kimberley Development Package.  Coordinating and working with other Commonwealth and State Government agencies to develop policy which underpins sound and innovative reconstruction and recovery efforts following the national disasters in late 2010- early 2011; and providing secretariat support to the Australian Government Reconstruction Inspectorate.  Managing Financial Assistance Grants to Local Governments. Financial Assistance Grants consist of two components: a general purpose component which is distributed between the States and Territories according to population, and an identified local road component which is distributed between the States and Territories according to fixed historical shares. Both components of the grants are untied in the hands of Local Government, allowing councils to spend the grants according to local priorities.  Administering the Local Government Reform Fund.  Progressing a referendum on constitutional recognition of Local Government.

The department will consult extensively with relevant stakeholders including local communities, State, Territory and Local Governments, the Regional Development Australia network and industry.

Following COAG’s federal financial framework reforms, the Treasury is responsible for National Partnership Payments to and through the States and Territories. The Treasury holds the appropriation for these items and reports the financial details accordingly. The non-financial performance of the corresponding programs remains the responsibility of the department. The Outcome 1 programs administered by DRARDLG under this framework are the East Kimberly Development Package Program, the Local Government Reform Fund Program, the Regional Development Australia Fund, and the Natural Disaster Recovery and Rebuilding – Assistance to Queensland Local Government.

Outcome expense statement Table 2.1 provides an overview of the total expenses for outcome 1, by program.

Table 2.1: Budgeted expenses for Outcome 1 Outcom e 1: Coordinated com m unity infrastructure and 2010-11 2011-12 services in rural, regional and local governm ent areas Estimated Estimated through financial assistance actual expenses expenses $'000 $'000 Program 1.1: Regional Developm ent Administered expenses Ordinary annual services (Appropriation Bill No. 1) 99,873 202,181 Other services (Appropriation Bill No. 2) 9,301 - Departmental expenses Departmental appropriation1 27,117 51,760 Expenses not requiring appropriation in the Budget year2 134 457 Total for Program 1.1 136,425 254,398 Program 1.2: Local Governm e nt Administered expenses Ordinary annual services (Appropriation Bill No. 1) 400 550 Other services (Appropriation Bill No. 2) 235,970 56,249 Special appropriations 2,082,222 1,609,717 Departmental expenses Departmental appropriation1 4,116 6,233 Expenses not requiring appropriation in the Budget year2 20 55 Total for Program 1.2 2,322,728 1,672,804 Outcom e 1 Totals by appropriation type Administered Expenses Ordinary annual services (Appropriation Bill No. 1) 100,273 202,731 Other services (Appropriation Bill No. 2) 245,271 56,249 Special appropriations 2,082,222 1,609,717 Departmental expenses Departmental appropriation1 31,233 57,993 Expenses not requiring appropriation in the Budget year2 154 512 Total expenses for Outcom e 1 2,459,153 1,927,202 2010-11 2011-12 Average Staffing Level (num ber) 241 332 1 Departmental Appropriation combines ‘Ordinary annual services (Appropriation Bill No. 1)’ and ‘Revenue from independent sources (s31)’. 2 Expenses not requiring appropriation in the Budget year is made up of depreciation expense, amortisation expense and audit fees. Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of the budget year as government priorities change.

Contributions to Outcome 1

Program 1.1: Regional Development

Program objective The Regional Development program contributes to Outcome 1 through a range of regionally focused stakeholder consultation and engagement, research, policy development, and program delivery activities. These include:  Better Regions: delivering the Government’s 2007 election commitments by implementing important community and social infrastructure projects identified by local communities as priority investments for their regions.  East Kimberley Development Package: Coordinating the Australian Government interest in the implementation of the package which is jointly implemented by the Western Australian Government.  Regional and Rural Research and Development Grants: provides funding for research into issues affecting Australia’s regions, and to help communicate this research to national and regional decision makers.  Regional Development Australia Committees: funds the operational costs of RDA committees to support their work in engaging with States, Territories, Local Government and regional communities to promote regional planning; economic development initiatives; and provide advice to Government on issues affecting, and opportunities for, regional Australia.  Regional Development Australia Fund: funds projects that support the infrastructure needs that will enhance the economic and community development of Australia’s regions.  Community Infrastructure Grants: delivers the Government’s 2010 election commitments by implementing important community and social infrastructure projects identified by local communities as priority investments for their regions.  Promoting Regional Living: funds regional cities to implement strategic and targeted marketing strategies to promote the benefits and opportunities of living and working in those cities.  Northern Australia Sustainable Futures: provides advice to the Minister on achieving sustainable development outcomes and improved coordination between governments and with key stakeholders in relation to the northern Australia agenda.  National Disaster Recovery Taskforce: works with other Commonwealth and State Government agencies to develop policy which underpins sound and innovative reconstruction and recovery efforts.

Program expenses 1.1 2010-11 2011-12 2012-13 2013-14 2014-15 Revised Budget Forw ard Forw ard Forw ard budget year 1 year 2 year 3 $'000 $'000 $'000 $'000 $'000 Annual administered expenses: Better Regions 69,236 33,110 - - - Community Infrastructure Grants - 78,902 30,500 78,000 - East Kimberley Development Package1 - - - - Appropriation Bill No. 1 1,360 Appropriation Bill No. 2 6,975 Jobs Fund - Bike Paths2 9,694 - - - - Jobs Fund - Infrastructure Employment Projects1 - - - - Appropriation Bill No. 1 2,550 Appropriation Bill No. 2 2,326 Mariners Sporting Campus - 2,500 5,000 2,500 - Meeting the Commitments to Regional Australia - creation of a Regional Development Policy Centre - 8,000 - - - Northern Australia Sustainable Futures 695 2,590 1,670 - - Port Macquarie Sports Stadium - 1,400 1,400 - - Port of Karumba Seaw all - 2,000 - - - Promoting Regional Living - 2,000 4,000 4,000 - Regional and Rural Research and Development Grants 228 228 228 228 228 Regional Development Australia Committees 13,584 18,451 18,921 19,364 19,816 Regional Development Australia Fund - 51,000 100,000 100,000 50,000 Regional Partnerships 2,526 - - - - Riverstone Football and Sporting Precinct community infrastructure initiative - 2,000 5,000 1,000 - Tow nsville Convention and Entertainment Centre (Appropriation Bill No. 2) - - 10,000 10,000 10,000 Annual departmental expenses: National Disaster Recovery Taskforce and the Reconstruction Inspectorate - establishment 1,427 6,934 3,161 - - Program support 25,690 44,826 34,542 32,816 32,393 Expenses not requiring appropriation in the Budget year3 134 457 622 847 1,076 Total program expenses 136,425 254,398 215,044 248,755 113,513 1 Excludes expenses for payments made to and through the States and Territories by The Treasury. 2 Excludes $0.083m of accrued expenses incurred by the Department of Infrastructure and Transport during the period 1 July 2010 to 30 September 2010 to be paid from the Department's 2010-11 Appropriation Act (No.1) funding transferred under section 32 of the FMA Act. 3 Expenses not requiring appropriation in the Budget year is made up of depreciation expense, amortisation expense and audit fees.

Program 1.1 Deliverables  Regional Development: Strategic policy and implementation advice on the delivery of the Government’s commitment to regional Australia including support for the key whole of government and cross government regionally focused fora. Develop and implement place based approaches to support communities in making the best of their opportunities and managing their challenges. Enhance engagement with the RDA networks, Commonwealth, State, Territory and Local Governments, and regional communities, to better identify issues affecting, and opportunities for, regional Australia. Ensure effective engagement with all stakeholders including all levels of Government, the private sector and the not-for-profit sector. Support regional development objectives through the effective and efficient delivery of administered items. Effective development and delivery of grants programs.

 Promoting Regional Living: Manage a competitive grants program to promote the benefits and opportunities of living and working in regional cities.

 Northern Australia Sustainable Futures: Provide advice to the Government concerning northern Australia issues. Deliver a response to the Government to the report of the Northern Australia Land and Water Taskforce. Continue to progress northern Australia issues, establishment and effective operation of the Northern Australia Ministerial Forum and Northern Australia Sustainable Futures Program initiatives.

 East Kimberley Development Package: Coordinate delivery of the East Kimberley Development Package.

 National Disaster Recovery Taskforce: Provide responsive support to the Minister Assisting the Attorney- General for Queensland Flood Recovery and the Minister for Regional Australia, Regional Development and Local Government, the Australian Government Reconstruction Inspectorate, Prime Minister's Business Taskforce and Secretaries’ Steering Committee. Coordinate and maximise contribution of existing Commonwealth programs to the recovery effort. Assure the Commonwealth that public funding of reconstruction efforts represents value for money. Work collaboratively with other Commonwealth agencies to influence the development of policy to underpin sound and innovative reconstruction and recovery efforts.

Program 1.1 Key performance indicators  Regional Development: High level of satisfaction of the Minister in regards to the:  quality and timeliness of advice, briefing and support.  collaboration with other agencies in the delivery of the department’s responsibilities.  support for a COAG Standing Council on regional Australia. Issues and risks in regional service delivery, policies and program implementation are identified and actioned appropriately. Number of RDA engagements with State, Territory, Local Government and regional communities that facilitate sustainable economic and social development. RDA plans are recognised and utilised by Commonwealth and State agencies in developing their regional priorities. myregion.gov.au website delivered on time and on budget and effectively engages with key stakeholders through a centralised regional specific portal. RDAF processes effectively engage key stakeholders, applications are assessed to ensure compliance with better practice framework, and funding rounds are delivered on time and within budget. The Minister and RDAF Advisory Panel are well informed by relevant and timely advice founded on robust analysis. All CIGs are assessed to ensure compliance with the value for money framework.

 Northern Australia Sustainable Futures: Policies and administered items promote and support the sustainable development of northern Australia. Northern Australia ministerial forum established and effective.

 National Disaster Recovery Taskforce: Ministers (and through them the Government), Cabinet, the National Disaster Recovery Committee and the Inspectorate are well informed by relevant and timely advice founded on robust analysis. External evaluations and stakeholder assessments demonstrate that the Taskforce's role in coordinating contributions are supporting the

28 DRARDLG Budget Statements recovery effort. Percentage and number of projects that are reviewed to conform with the approved value for money framework. Issues and risks in the delivery of Commonwealth effort are identified and addressed in a timely manner.

Program 1.2: Local Government

Program objective The Local Government program contributes to Outcome 1 through a range of Local Government focused activities. These include:  Local Government Reform Fund: funds projects designed to improve the asset and financial management capabilities of councils around Australia.  Regional and Local Community Infrastructure: funds a range of construction projects including parks, gardens, town halls, community centres, sporting grounds, libraries and facilities upgrades.  Supplementary funding to South Australian councils for local roads: supplementary funds for the construction and maintenance of local roads in South Australia to June 2014 in recognition of changes in the population and circumstances of the State.  Administers the Local Government (Financial Assistance Act) 1995.  Consults with Local Government stakeholders and State and Territory Governments on a process for constitutional recognition of Local Government.  Builds capacity in Local Government through the ongoing operation of the Centre of Excellence for Local Government.  Promotes best-practice Local Government service delivery through the National Awards for Local Government.  Facilitates Commonwealth and Local Government engagement on matters of national significance.

Program expenses 1.2 2010-11 2011-12 2012-13 2013-14 2014-15 Revised Budget Forw ard Forw ard Forw ard budget year 1 year 2 year 3 $'000 $'000 $'000 $'000 $'000 Annual administered expenses: Local Government Reform Fund1 400 450 - - - Regional and Local Community Infrastructure Program (Appropriation Bill No. 2) 216,594 40,000 - - - Supplementary Funding to South Australian Councils for Local Roads Appropriation Bill No. 1 100 50 Appropriation Bill No. 2 15,566 16,249 16,992 17,685 - Thornton Park commuter car park - additional funding (Appropriation Bill No. 2) 3,810 - - - - Special Appropriations: Local Government (Financial Assistance) Act 1995 2 2,082,222 1,609,717 2,242,227 2,333,263 2,427,529 Annual departmental expenses: Program support 4,116 6,233 5,948 5,643 5,702 Expenses not requiring appropriation in the Budget year3 20 55 98 146 190 Total program expenses 2,322,728 1,672,804 2,265,315 2,356,737 2,433,421 1 Excludes expenses for payments made to and through the States and Territories by The Treasury. 2 Excludes $25.384m of accrued expenses incurred by the Department of Infrastructure and Transport in 2009-10 paid from the special appropriation balance transferred to the department as a result of the AAO made on 14 September 2010. 3 Expenses not requiring appropriation in the Budget year is made up of depreciation expense, amortisation expense and audit fees.

Program 1.2 Deliverables  Local Government objectives are supported through the effective and efficient delivery of administered items, including ensuring that projects that receive funding are delivered on time and on budget.  Improved transparency and robust reporting mechanisms through detailed quantitative and qualitative assessment processes.  Development and implementation of guidelines, assessment processes and management of the program to support the urban agenda and regional development policy.

Program 1.2 Key performance indicators  High level of satisfaction of the Minister and other stakeholders with the: quality and timeliness of advice, briefing and support. implementation and ongoing management of programs and projects. engagement mechanisms used to review matters of national significance.  Enhanced engagement with State, Territory, Local Government and regional communities to facilitate sustainable economic and social development.  Funded projects and activities improve employment and sustainability of local communities.  Process for a referendum on constitutional recognition of Local Government agreed.  Maintaining high levels of awareness and participation in the National Awards for Local Government as a tool for promoting innovation and best-practice service delivery.

OUTCOME 2

Outcome 2: Good governance in the Australian Territories through the maintenance and improvement of the overarching legislative framework for self-governing territories, and laws and services for non self-governing territories.

Outcome 2 Strategy The department administers the Territories of the Ashmore and Cartier Islands, Christmas Island, the Cocos (Keeling) Islands, the Coral Sea Islands and Jervis Bay; and manages national interests in the Australian Capital Territory, the Northern Territory and Norfolk Island.

Through Outcome 2, the department assists these Territories to establish and maintain good governance and manage their own futures by providing services and advice on ongoing administration. The department delivers services, provides funding support and undertakes capital works with the objective of ensuring that Territory communities enjoy the same level of services as equivalent State communities.

The department will contribute to these objectives by:

 Providing policy advice and legislation to maintain effective systems of governance and the necessary legal framework for the protection and wellbeing of the community.  Supporting the Commonwealth’s role in the Territories through the administration of inter-government agreements and various programs, maintaining Commonwealth assets and delivering State and Local Government- type services. Following COAG’s federal financial framework reforms, the Treasury is responsible for National Partnership Payments to and through the States and Territories. The Treasury holds the appropriation for these items and reports the financial details accordingly. The non-financial performance of the corresponding programs remains the responsibility of the department. The Outcome 2 programs administered by DRARDLG under this framework are the Commonwealth’s contribution to the Centenary of Canberra.

Outcome expense statement Table 2.1 provides an overview of the total expenses for outcome 2, by program.

Table 2.1: Budgeted Expenses for Outcome 2 Outcom e 2: Good governance in the Australian Territorie s 2010-11 2011-12 through the m aintenance and im provem ent of the Estimated Estimated overarching legislative fram ew ork for self-governing actual expenses territories , and law s and se rvices for non self-gove rning expenses territories $'000 $'000 Program 2.1: Service s to Territories Administered expenses Ordinary annual services (Appropriation Bill No. 1) 96,771 96,312 Special Accounts 667 1,000 Departmental expenses Departmental appropriation1 6,893 9,207 Expenses not requiring appropriation in the Budget year2 14,414 22,029 Total for Program 2.1 118,745 128,548 Outcom e 2 Totals by appropriation type Administered Expenses Ordinary annual services (Appropriation Bill No. 1) 96,771 96,312 Special Accounts 667 1,000 Departmental expenses Departmental appropriation1 6,893 9,207 Expenses not requiring appropriation in the Budget year2 14,414 22,029 Total expenses for Outcom e 2 118,745 128,548 2010-11 2011-12 Average Staffing Level (num ber) 3 70 73 1 Departmental Appropriation combines ‘Ordinary annual services (Appropriation Bill No. 1)’ and ‘Revenue from independent sources (s31)’. 2 Expenses not requiring appropriation in the Budget year is made up of depreciation expense, amortisation expense and audit fees. 3 Excludes administered staff of an estimated 100 ASL. Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of the budget year as government priorities change.

Program 2.1: Services to Territories

Program objective The Territories program contributes to Outcome 2 by:  Fostering the connectedness of the isolated communities of external Territories to the broader Australian community by delivering services and contributing to economic and social sustainability.  Safeguarding Australia’s national strategic interests in its external Territories and delivering to the residents of non self-governing Territories services of a comparable nature and standard to those delivered to equivalent mainland communities.  Managing the Australian Government’s interests in the internal Territories and ensuring that funding is administered in line with relevant legislation, policies and agreements and takes into consideration the cultural and linguistic diversity of Territory residents.

Program expenses 2.1 2010-11 2011-12 2012-13 2013-14 2014-15 Revised Budget Forward Forward Forward budget year 1 year 2 year 3 $'000 $'000 $'000 $'000 $'000 Annual administered expenses:1 Services to Indian Ocean Territories 82,119 87,578 92,083 88,179 88,998 Norfolk Island - Kingston and Arthur's Vale Historic Area 564 598 610 616 621 Office of the Administrator, Norfolk Island 481 642 662 679 685 Norfolk Island - Financial Assistance 6,409 - - - - Services to Jervis Bay Territory 5,716 5,471 5,576 5,658 5,710 ACT Government - National Capital functions 1,278 1,734 1,834 1,957 1,975 Office of Administrator, Northern Territory 204 289 297 306 309 Special Account Expenses: Christmas Island Phosphate Mining Rehabilitation Special Account 667 1,000 1,000 1,000 1,000 Annual departmental expenses: Program support 6,893 9,207 9,281 9,241 9,220 Expenses not requiring appropriation in the Budget year2 14,414 22,029 22,368 22,344 22,332 Total program expenses 118,745 128,548 133,711 129,980 130,850 1 These items exclude accrued expenses totalling $15.667m incurred by the Attorney-General's department during the period 1 July 2010 to 30 September 2010 to be paid from the department’s 2010-11 Appropriation Act (No.1) funding transferred under section 32 of the FMA Act. 2 Expenses not requiring appropriation in the Budget year is made up of depreciation expense, amortisation expense and audit fees.

Program 2.1 Deliverables  Community services, infrastructure and legal frameworks and processes in the Territories are equivalent to comparable mainland communities.  Social and economic links to the wider Australian community are strengthened.  Australia’s interests in the Territories are well managed and protected.  Reforms to promote long term financial sustainability and improved governance are progressed on Norfolk Island.  Essential infrastructure in the Indian Ocean Territories is maintained and upgraded in line with the capital management plan.

Program 2.1 Key performance indicators  Legislative and legal frameworks are in place in the Territories that provide the same rights and protections enjoyed by the rest of Australia.  State-type services are delivered efficiently and effectively to residents of the non self-governing Territories.  Essential infrastructure meets the needs of communities, border protection and other national strategic priorities.  Grant funding is targeted, supported by the community and fully utilised.  Inter-governmental agreements meet value-for-money criteria and deliver the required level of services to the Territories.  The Territories Law Reform Act 2010 is implemented to provide a sustainable financial framework for Norfolk Island.  Long term financial and governance reform for Norfolk Island is achieved through constructive partnerships with the Norfolk Island Government and the community.  Sustainable economic, environmental and social policies are progressively implemented in the Indian Ocean Territories.  The roles and responsibilities of the Commonwealth and the ACT Government in the National Capital are clarified.

Section 3: Explanatory tables and budgeted financial statements

Section 3 presents explanatory tables and budgeted financial statements which provide a comprehensive snapshot of agency finances for the 2011–12 budget year. It explains how budget plans are incorporated into the financial statements and provides further details of the reconciliation between appropriations and program expenses, movements in administered funds, special accounts and government indigenous expenditure.

3.1 EXPLANATORY TABLES

3.1.1 Movement of administered funds between years Administered funds can be provided for a specified period, for example under annual Appropriation Acts. Funds not used in the specified period may be moved to a future year with the agreement of the Finance Minister. Table 3.1.1 shows the movement of administered funds approved between years.

Table 3.1.1: Movement of administered funds between years1 2010-11 2011-12 2012-13 2013-14 2014-15 $'000 $'000 $'000 $'000 $'000 Outcome 1: Better Regions2 (33,110) 33,110 - - - Community Infrastructure Grants3 (1,190) 1,190 - - - Mariners Sporting Campus3 (500) 500 - - - Regional and Local Community Infrastructure Program (Appropriation Bill No. 2)4 (40,000) 40,000 - - - Regional Development Australia Fund5 - 50,000 (25,000) (25,000) - Total Movem e nt of Adm iniste red Funds (74,800) 124,800 (25,000) (25,000) - 1 Figures displayed as a negative (-) represent a decrease in funds and a positive reflect an increase in funds. 2 Projects have been delayed due to regions being heavily impacted by natural disasters, planning delays and changes in scope. 3 As a result of the proponents not being required to provide project information until 15 June 2011 the execution of funding agreements to occur in 2011-12. 4 Projects have been delayed due to bad weather and natural disasters. 5 Reprofiling of funds.

3.1.2 Special accounts Special Accounts provide a means to set aside and record amounts used for specified purposes. Special Accounts can be created by a Finance Minister’s Determination under the Financial Management and Accountability Act 1997 (FMA Act) or under separate enabling legislation. Table 3.1.2 shows the expected additions (receipts) and reductions (payments) for each account used by the department.

Table 3.1.2: Estimates of Special Account Flows and Balances Opening Closing balance Receipts Payments Adjustments balance 2011-12 2011-12 2011-12 2011-12 2011-12 2010-11 2010-11 2010-11 2010-11 2010-11 Outcome $'000 $'000 $'000 $'000 $'000 Christmas Island Phosphate Mining Rehabilitation Special 2 2,800 1,000 1,000 - 2,800 1 Account FMA Act s20 (A) 2,800 667 667 - 2,800 Total Special Accounts 2011-12 Budge t estim ate 2,800 1,000 1,000 - 2,800 Total Special Accounts 2010-11 estimated actual 2,800 667 667 - 2,800 (A) = Administered (D) = Departmental

1 The Christmas Island Phosphate Mining Rehabilitation Special Account relates to funds received from the conservation levy paid by Phosphate Resources Limited under the terms of its mining lease with the Commonwealth. The special account has been established to fund activities performed in accordance with environmental management and rehabilitation plans to rehabilitate old phosphate mining sites on Christmas Island. The special account transferred from the Attorney-General's Department as a result of the Administrative Arrangements Orders made on 14 September 2010.

3.1.3 Australian Government Indigenous expenditure Table 3.1.3: Australian Government Indigenous Expenditure Appropriations Other Total Program Bill Bill Special Total No. 1 No. 2 approp approp $'000 $'000 $'000 $'000 $'000 $'000 Outcom e 1 Administered 2011-12 750 - - 750 - 750 1.1 Administered 2010-11 235 - - 235 - 235 1.1 Total outcome 2011-12 750 - - 750 - 750 Total outcome 2010-11 235 - - 235 - 235 Outcom e 2 Administered 2011-12 ------Administered 2010-11 248 - - 248 - 248 2.1 Total outcome 2011-12 ------Total outcome 2010-11 248 - - 248 - 248 Total administered 2011-12 750 - - 750 - 750 Total administered 2010-11 483 - - 483 - 483 Total AGIE 2011-12 750 - - 750 - 750 Total AGIE 2010-11 483 - - 483 - 483

3.2 BUDGETED FINANCIAL STATEMENTS

3.2.1 Differences in agency resourcing and financial statements The agency resource statement (Table 1.1) provides a consolidated view of all the resources available to the agency in 2011–12. For departmental items this includes appropriation receivable that is yet to be drawn down to cover payables and provisions on the balance sheet and the Departmental Capital Budget. The income statement (Table 3.2.1) shows only the operating appropriation provided in 2011-12.

3.2.2 Analysis of budgeted financial statements Departmental Budgeted income statement DRARDLG is budgeting for a break-even operating result, adjusted for depreciation and amortisation expense, in 2011–12 and the forward years. The department was established by a machinery of government change on 14 September 2010. Functions from the former Department of Infrastructure, Transport, Regional Development and Local Government and the Attorney-General’s Department were transferred to the department and appropriations were amended effective 1 October 2010. The 2010-11 estimates represent nine months of operations. Additional departmental funding has been provided to the department in 2011–12 as summarised in Table 1.2. This includes funding for the National Disaster Recovery Taskforce of $6.9 million (terminating in 2012-13) and one-off funding for specific projects such as the development of myregion.gov.au website, progressing a referendum on constitutional recognition of Local Government, establishing and supporting a Regional Development Policy Centre and promoting regional living.

Budgeted balance sheet As a result of net cash appropriation arrangements and asset replacements being funded through capital injections, budgeted operating deficits from depreciation and amortisation expenses erode accumulated results in the forward years.

Administered Schedule of budgeted income and expenses administered on behalf of Government Revenue from administered activities is estimated at $24.3 million in 2011-12. This includes interest on State Government loans, mining lease royalties and municipal and facilities charges associated with the Commonwealth’s role in the Territories, all of which is returned directly to the Official Public Account.

Additional administered funding has been provided as summarised in Table 1.2. This includes funding for strengthening RDAs, extending supplementary funding for South

Australian local roads, infrastructure initiatives and a competitive grants program to promote the benefits and opportunities of living and working in regional cities.

On 27 January 2011 the Prime Minister announced the Government’s response to the challenge of rebuilding flood–affected regions across Australia. This included the reallocation of $350 million over four years (including $50 million in 2011-12) from the Priority Regional Infrastructure Program (now a part of the RDAF) as a contribution to the flood loss.

In 2011-12 it is estimated that a total of $2.0 billion of expense will be administered on behalf of government. Of this, $1.6 billion (81%) represents a special appropriation under the Local Government (Financial Assistance) Act 1995. Other grants expense relates to the RDAF, the CIG, Better Regions, RLCIP and grants to the Indian Ocean Territories (IOT). Other expenses primarily relate to services to the IOT and Jervis Bay Territory (JBT).

Schedule of budgeted assets and liabilities on behalf of the Government As at 30 June 2012 total administered assets are estimated at $811.7 million. Financial assets comprise primarily sewerage agreements with the New South Wales and Queensland Governments pursuant to the Urban and Regional Development (Financial Assistance) Act 1974. Non-financial assets represent the Commonwealth’s interest in the IOT and JBT. Additional funding has been provided in the 2011-12 Budget to upgrade essential infrastructure on Christmas Island.

3.2.3 Budgeted financial statements tables Table 3.2.1: Budgeted departmental comprehensive income statement (for the period ended 30 June) Estimated Budget Forward Forward Forward actual estimate estimate estimate estimate 2010-11 2011-12 2012-13 2013-14 2014-15 $'000 $'000 $'000 $'000 $'000 EXPENSES Employee benefits 26,434 45,965 41,375 39,027 39,486 Supplier expenses 11,792 21,635 11,957 9,073 8,229 Depreciation and amortisation 137 355 582 848 1,109 Total expenses 38,363 67,955 53,914 48,948 48,824 LESS: OWN-SOURCE INCOME Own-source revenue Sale of goods and rendering of services 45 60 60 60 60 Total own-source revenue 45 60 60 60 60 Gains Other 100 400 400 400 400 Total gains 100 400 400 400 400 Total own-source income 145 460 460 460 460 Net cost of (contribution by) services 38,218 67,495 53,454 48,488 48,364

Revenue from Government 38,081 67,140 * 52,872 * 47,640 * 47,255 * Surplus (deficit) (137) (355) (582) (848) (1,109) Surplus (deficit) attributable to the Australian Government (137) (355) (582) (848) (1,109)

Note: Reconciliation of comprehensive income attributable to the agency 2010-11 2011-12 2012-13 2013-14 2014-15 $'000 $'000 $'000 $'000 $'000 Operating result attributable to the Australian Government (137) (355) (582) (848) (1,109) plus non-appropriated expenses depreciation and amortisation expenses 137 355 582 848 1,109 Total comprehensive income (loss) attributable to the agency - - - - - Prepared on Australian Accounting Standards basis.

Table 3.2.2: Budgeted departmental balance sheet (as at 30 June) Estimated Budget Forward Forward Forward actual estimate estimate estimate estimate 2010-11 2011-12 2012-13 2013-14 2014-15 $'000 $'000 $'000 $'000 $'000 ASSETS Financial assets Cash and cash equivalents 50 50 50 50 50 Trade and other receivables 10,285 11,736 10,854 10,365 10,513 Other 248 248 248 248 248 Total financial assets 10,583 12,034 11,152 10,663 10,811 Non-financial assets Property, plant and equipment 81 38 187 132 89 Intangibles 936 1,659 2,171 3,050 3,013 Other 6 6 6 6 6 Total non-financial assets 1,023 1,703 2,364 3,188 3,108 Total assets 11,606 13,737 13,516 13,851 13,919 LIABILITIES Payables Suppliers 80 80 80 80 80 Other 978 978 978 978 978 Total payables 1,058 1,058 1,058 1,058 1,058 Provisions Employee provisions 7,881 9,332 8,450 7,961 8,109 Total provisions 7,881 9,332 8,450 7,961 8,109 Total liabilities 8,939 10,390 9,508 9,019 9,167 Net assets 2,667 3,347 4,008 4,832 4,752 EQUITY Contributed equity 1,040 2,075 3,318 4,990 6,019 Retained earnings 1,627 1,272 690 (158) (1,267) Total non-controlling interest 2,667 3,347 4,008 4,832 4,752 Total equity 2,667 3,347 4,008 4,832 4,752 Prepared on Australian Accounting Standards basis.

Table 3.2.3: Budgeted departmental statement of changes in equity — summary of movement (Budget year 2011-12) Retained Asset Other Contributed Total earnings revaluation reserves equity/ equity reserve capital $'000 $'000 $'000 $'000 $'000 Opening balance as at 1 July 2011 Balance carried forward from previous period 1,627 - - 1,040 2,667 Adjustment for changes in accounting policies - - - - - Adjusted opening balance 1,627 - - 1,040 2,667 Comprehensive income Surplus (deficit) for the period (355) - - - (355) Total comprehensive income (355) - - - (355) Transactions with owners Contributions by owners Appropriation (departmental) capital budget - - - 1,035 1,035 Sub-total transactions with owners - - - 1,035 1,035 Estimated closing balance as at 30 June 2012 1,272 - - 2,075 3,347 Prepared on Australian Accounting Standards basis.

Table 3.2.4: Budgeted departmental statement of cash flows (for the period ended 30 June) Estimated Budget Forward Forward Forward actual estimate estimate estimate estimate 2010-11 2011-12 2012-13 2013-14 2014-15 $'000 $'000 $'000 $'000 $'000 OPERATING ACTIVITIES Cash received Goods and services 49 65 65 65 65 Appropriations 34,348 70,873 52,872 47,640 47,255 Net GST received 1,048 1,906 1,035 776 700 Cash from the OPA 2,557 - 882 489 - Total cash received 38,002 72,844 54,854 48,970 48,020 Cash used Employees 25,258 44,514 42,257 39,516 39,338 Suppliers 12,744 23,146 12,597 9,454 8,534 Cash to the OPA - 5,184 - - 148 Total cash used 38,002 72,844 54,854 48,970 48,020 Net cash from (used by) operating activities - - - - - INVESTING ACTIVITIES Cash used Purchase of property, plant and equipment 1,040 1,035 1,243 1,672 1,029 Total cash used 1,040 1,035 1,243 1,672 1,029 Net cash from (used by) investing activities (1,040) (1,035) (1,243) (1,672) (1,029) FINANCING ACTIVITIES Cash received Contributed equity 1,040 1,035 1,243 1,672 1,029 Other 50 - - - - Total cash received 1,090 1,035 1,243 1,672 1,029 Net cash from (used by) financing activities 1,090 1,035 1,243 1,672 1,029 Net increase (decrease) in cash held 50 - - - - Cash and cash equivalents at the beginning of the reporting period - 50 50 50 50 Cash and cash equivalents at the end of the reporting period 50 50 50 50 50 Prepared on Australian Accounting Standards basis.

Table 3.2.5: Departmental Capital Budget Statement Estimated Budget Forw ard Forw ard Forw ard actual estimate estimate estimate estimate 2010-11 2011-12 2012-13 2013-14 2014-15 $'000 $'000 $'000 $'000 $'000 CAPITAL APPROPRIATIONS Capital budget - Bill 1 (DCB) 1,040 1,035 1,243 1,672 1,029 Total capital appropriations 1,040 1,035 1,243 1,672 1,029 Total ne w capital appropriations Represented by: Purchase of non-financial assets 1,040 1,035 1,243 1,672 1,029 Total Ite m s 1,040 1,035 1,243 1,672 1,029 PURCHASE OF NON-FINANCIAL ASSETS Funded by capital appropriation - DCB 1,040 1,035 1,243 1,672 1,029 TOTAL 1,040 1,035 1,243 1,672 1,029 RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE Total purchases 1,040 1,035 1,243 1,672 1,029 Total cash used to acquire assets 1,040 1,035 1,243 1,672 1,029 Prepared on Australian Accounting Standards basis.

Table 3.2.6: Budgeted departmental statement of asset movements (2011-12) Other property, Intangibles Total plant and equipment $'000 $'000 $'000 As at 1 July 2011 Gross book value 129 1,040 1,169 Accumulated depreciation/amortisation and impairment 48 104 152 Opening net book balance 81 936 1,017 CAPITAL ASSET ADDITIONS Estim ated expenditure on new or replace m ent asse ts By purchase - appropriation ordinary annual services - 1,035 1,035 Total additions - 1,035 1,035 Other m ovem ents Depreciation/amortisation expense 43 312 355 As at 30 June 2012 Gross book value 129 2,075 2,204 Accumulated depreciation/amortisation and impairment 91 416 507 Closing ne t book balance 38 1,659 1,697 Prepared on Australian Accounting Standards basis.

Table 3.2.7: Schedule of budgeted income and expenses administered on behalf of Government (for the period ended 30 June) Estimated Budget Forw ard Forw ard Forw ard actual estimate estimate estimate estimate 2010-11 2011-12 2012-13 2013-14 2014-15 $'000 $'000 $'000 $'000 $'000 INCOME ADMINISTERED ON BEHALF OF GOVERNMENT Revenue Taxation revenue Other 1,340 1,840 1,840 1,840 1,840 Total taxation revenue 1,340 1,840 1,840 1,840 1,840 Non-taxation revenue Sale of goods and rendering of services 10,229 14,717 14,717 14,717 14,717 Interest 6,038 6,781 6,015 5,175 4,387 Royalties 667 1,000 1,000 1,000 1,000 Total non-taxation revenue 16,934 22,498 21,732 20,892 20,104 Total revenues adm inistered on behalf of Governm ent 18,274 24,338 23,572 22,732 21,944 Total incom e adm inis tered on behalf of Governm ent 18,274 24,338 23,572 22,732 21,944 EXPENSES ADMINISTERED ON BEHALF OF GOVERNMENT Employee benefits 8,613 11,702 11,960 12,199 12,468 Supplier expenses 80,421 77,581 81,858 77,539 78,107 Grants 2,436,170 1,876,726 2,444,232 2,574,697 2,516,296 Depreciation and amortisation 14,331 21,786 22,106 22,089 22,089 Total expenses adm iniste red on behalf of Governm ent 2,539,535 1,987,795 2,560,156 2,686,524 2,628,960 Prepared on Australian Accounting Standards basis.

Table 3.2.8: Schedule of budgeted assets and liabilities administered on behalf of Government (as at 30 June) Estimated Budget Forw ard Forw ard Forw ard actual estimate estimate estimate estimate 2010-11 2011-12 2012-13 2013-14 2014-15 $'000 $'000 $'000 $'000 $'000 ASSETS ADMINISTERED ON BEHALF OF GOVERNMENT Financial assets Cash and cash equivalents 31 31 31 31 31 Receivables 116,895 110,119 102,556 94,261 85,431 Other 895 895 895 895 895 Total financial assets 117,821 111,045 103,482 95,187 86,357 Non-financial assets Land and buildings 232,935 242,682 253,554 253,551 257,441 Property, plant and equipment 368,396 387,189 397,445 392,633 378,690 Intangibles 2,981 2,928 2,884 2,739 2,634 Hertitage and cultural assets 66,144 65,987 65,830 65,673 65,804 Inventories 1,908 1,908 1,908 1,908 1,908 Total non-financial assets 672,364 700,694 721,621 716,504 706,477 Total assets adm inistered on behalf of Governm ent 790,185 811,739 825,103 811,691 792,834 LIABILITIES ADMINISTERED ON BEHALF OF GOVERNMENT Payables Suppliers 30 30 30 30 30 Total payables 30 30 30 30 30 Provisions Employee provisions 1,906 1,906 1,906 1,906 1,906 Other 2,983 2,983 2,983 2,983 2,983 Total provisions 4,889 4,889 4,889 4,889 4,889 Total liabilities adm inistered on behalf of Governm ent 4,919 4,919 4,919 4,919 4,919 Prepared on Australian Accounting Standards basis.

Table 3.2.9: Schedule of budgeted administered cash flows (for the period ended 30 June) Estimated Budget Forw ard Forw ard Forw ard actual estimate estimate estimate estimate 2010-11 2011-12 2012-13 2013-14 2014-15 $'000 $'000 $'000 $'000 $'000 OPERATING ACTIVITIES Cash received Sales of goods and rendering of services 11,150 16,042 16,042 16,042 16,042 Interest 5,220 6,781 6,015 5,175 4,387 Taxes 1,340 1,840 1,840 1,840 1,840 Net GST received 8,303 5,657 6,042 5,654 5,705 Royalties 667 1,000 1,000 1,000 1,000 Total cash received 26,680 31,320 30,939 29,711 28,974 Cash used Grant payments 2,465,153 1,876,726 2,444,232 2,574,697 2,516,296 Suppliers 111,716 84,563 89,225 84,518 85,137 Employees 8,613 11,702 11,960 12,199 12,468 Total cash used 2,585,482 1,972,991 2,545,417 2,671,414 2,613,901 Net cash from (used by) operating activities (2,558,802) (1,941,671) (2,514,478) (2,641,703) (2,584,927) INVESTING ACTIVITIES Cash received Other 5,653 6,776 7,563 8,295 8,830 Total cash received 5,653 6,776 7,563 8,295 8,830 Cash used Purchase of property, plant and equipment 18,542 50,116 43,033 16,972 12,062 Total cash used 18,542 50,116 43,033 16,972 12,062 Net cash from (used by) investing activities (12,889) (43,340) (35,470) (8,677) (3,232) FINANCING ACTIVITIES Cash received Other 31 - - - - Total cash received 31 - - - - Net cash from (used by) financing activities 31 - - - - Net increase (decrease) in cash held (2,571,660) (1,985,011) (2,549,948) (2,650,380) (2,588,159) Cash and cash equivalents at beginning of reporting period - 31 31 31 31 Cash from OPA for: - Appropriations 2,594,133 2,015,125 2,580,083 2,680,407 2,617,933 - Special Accounts 667 1,000 1,000 1,000 1,000 2,594,800 2,016,156 2,581,114 2,681,438 2,618,964 Cash to OPA for: - Appropriations (22,442) (30,114) (30,135) (30,027) (29,774) - Special Accounts (667) (1,000) (1,000) (1,000) (1,000) (23,109) (31,114) (31,135) (31,027) (30,774) Cash and cash equivalents at end of reporting period 31 31 31 31 31 Prepared on Australian Accounting Standards basis.

Table 3.2.10: Schedule of administered capital budget Estimated Budget Forw ard Forw ard Forw ard actual estimate estimate estimate estimate 2010-11 2011-12 2012-13 2013-14 2014-15 $'000 $'000 $'000 $'000 $'000 CAPITAL APPROPRIATIONS Capital budget - Bill 1 (ACB) 5,062 10,805 8,835 7,872 12,062 Administered assets and liabilities - Bill 2 11,209 33,982 34,198 9,100 - Total capital appropriations 16,271 44,787 43,033 16,972 12,062 Total new capital appropriations Represented by: Purchase of non-financial assets 16,271 44,787 43,033 16,972 12,062 Total Item s 16,271 44,787 43,033 16,972 12,062 PURCHASE OF NON-FINANCIAL ASSETS Funded by capital appropriations 5,880 39,311 34,198 9,100 - Funded by capital appropriation - ACB 5,062 10,805 8,835 7,872 12,062 Funded internally from reserves 7,600 - - - - TOTAL 18,542 50,116 43,033 16,972 12,062 RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE Total purchases 18,542 50,116 43,033 16,972 12,062 Total cas h used to acquire asse ts 18,542 50,116 43,033 16,972 12,062 Prepared on Australian Accounting Standards basis. Note: $5.3 million of capital expenditure funded from Bill 2 Appropriation has been rephased from 2010-11 to 2011-12 for the Christmas Island Housing Project.

Table 3.2.11: Schedule of budgeted asset movements administered on behalf of Government (2011-12) Land Buildings Other Heritage Intangibles Total property, and cultural plant and assets equipment $'000 $'000 $'000 $'000 $'000 $'000 As at 1 July 2011 Gross book value 82,241 156,036 383,380 66,736 3,208 691,601 Accumulated depreciation/ amortisation and impairment - 5,342 14,984 592 227 21,145 Opening net book balance 82,241 150,694 368,396 66,144 2,981 670,456 CAPITAL ASSET ADDITIONS Estimated expenditure on new or replacement assets By purchase - appropriation equity - 13,329 25,982 - - 39,311 By purchase - appropriation ordinary annual services - 1,823 8,323 559 100 10,805 Total additions - 15,152 34,305 559 100 50,116 Other movements Depreciation/amortisation expense - 5,405 15,512 716 153 21,786 As at 30 June 2012 Gross book value 82,241 171,188 417,685 67,295 3,308 741,717 Accumulated depreciation/ amortisation and impairment - 10,747 30,496 1,308 380 42,931 Closing net book balance 82,241 160,441 387,189 65,987 2,928 698,786 Prepared on Australian Accounting Standards basis.

52 National Capital Authority

Agency resources and planned performance

NATIONAL CAPITAL AUTHORITY

Section 1: Agency overview and resources 59 1.1 Strategic direction statement 59 1.2 Agency resource statement 61 1.3 Budget measures 62 Section 2: Outcomes and planned performance 63 2.1 Outcomes and performance information 63 Section 3: Explanatory tables and budgeted financial statements 69 3.1 Explanatory tables 69 3.2 Budgeted financial statements 70

54 NATIONAL CAPITAL AUTHORITY

Section 1: Agency overview and resources

1.1 STRATEGIC DIRECTION STATEMENT

The National Capital Authority (NCA) is established under the Australian Capital Territory (Planning and Land Management) Act 1988 (the PALM Act).

The PALM Act establishes the NCA, prescribes its powers and functions and makes it subject to general ministerial direction. The Minister for Regional Australia, Regional Development and Local Government administers the PALM Act.

The NCA consists of a chairman, a chief executive and three other members. The chief executive is a full-time member, and the other four members serve on a part-time basis. The chief executive manages the affairs of the NCA under the general directions of the NCA and has the responsibility of a chief executive under the FMA Act and head of agency under the Public Service Act 1999. The NCA is a prescribed agency under the FMA Act and is principally funded through departmental and administered appropriations.

Statutory functions of the NCA The NCA manages the continuing interests of the Commonwealth in the National Capital, including the range of functions required to plan, promote, enhance and maintain the national characteristics and qualities of the capital.

The functions of the NCA establish the extent of the Commonwealth’s interest in the National Capital and are set out in section 6 of the PALM Act. They are:

 To prepare and administer a National Capital Plan.  To keep the National Capital Plan under constant review and to propose amendments to it when necessary.  On behalf of the Commonwealth, to commission works to be carried out in designated areas in accordance with the plan where neither a Department of State of the Commonwealth nor any Commonwealth authority has the responsibility to commission those works.  To recommend to the Minister the carrying out of works that it considers desirable to maintain or enhance the character of the National Capital.  To foster an awareness of Canberra as the National Capital.

55 NCA Budget Statements

 With the approval of the Minister, to perform planning services for any person or body, whether within Australia or overseas.  With the Minister’s approval, on behalf of the Commonwealth, to manage national land designated in writing by the Minister as land required for the special purposes of Canberra as the National Capital. These functions provide the framework to secure the planning and development of Canberra as the National Capital; to accommodate the seat of government and associated national and cultural requirements; to provide public places and assets for national purposes and for all Australians to visit and enjoy; to enhance the unique character and symbolic meaning of the capital; and to develop appreciation of Canberra as the National Capital.

During 2011-12, the NCA will work within a business plan focussed on fulfilling its statutory functions. Key priorities include:

 Contributing to a review of planning arrangements in the ACT.  Finalising heritage management plans for Anzac Parade, Changi Chapel, General Bridges Grave and King George V memorial.  Undertaking land and asset management activities to fulfil the requirements of those plans.  Continuing the review of the National Capital Open Space System.  Continuing the review of building heights in the National Capital Plan.  Delivery of capital works in accordance with the NCA business plan.  Continuing the renewal of the National Capital Exhibition.

Dr Allan Hawke is currently preparing advice for the Australian Government on the extent and delivery of Commonwealth functions in the National Capital. A Government decision is expected during 2011-12 and may impact on the priorities of the NCA.

1.2 AGENCY RESOURCE STATEMENT

Table 1.1 shows the total resources from all sources. The table summarises how resources will be applied by outcome and by administered and departmental classification.

Table 1.1: National Capital Authority Resource Statement — Budget Estimates for 2011-12 as at Budget May 2011 Estimate Proposed Total Actual of prior + at Budget = estimate available year amounts appropriation available in 2011-12 2011-12 2011-12 2010-11 $'000 $'000 $'000 $'000 Ordinary annual services 1 Departm ental appropriation Prior year departmental appropriation2 3,074 - 3,074 3,316 Departmental appropriation3 - 14,359 14,359 14,145 s31 relevant agency receipts4 - 2,010 2,010 2,010 Total 3,074 16,369 19,443 19,471 Adm inistered expenses Outcome 15 - 15,186 15,186 13,296 Total - 15,186 15,186 13,296 Total ordinary annual services 3,074 31,555 34,629 32,767 Other services Adm inistered non-operating Administered assets and liabilities 2,370 - 2,370 22,488 Total 2,370 - 2,370 22,488 Total other services 2,370 - 2,370 22,488 Total available annual appropriations 5,444 31,555 36,999 55,255

Total resourcing 5,444 31,555 36,999 55,255 1 Appropriation Bill (No.1) 2011-12. 2 Estimated adjusted balance carried forward from previous year. 3 Includes an amount of $1.0m in 2011-12 for the Departmental Capital Budget (refer to table 3.2.5 for further details). For accounting purposes this amount has been designated as 'contributions by owners'. 4 s31 Relevant Agency receipts — estimate. 5 Includes an amount of $14.2m in 2011-12 for the Administered Capital Budget (refer to table 3.2.10 for further details). For accounting purposes this amount has been designated as 'contributions by owners'. Reader note: All figures are GST exclusive.

1.3 BUDGET MEASURES

Budget measures relating to the NCA are detailed in Budget Paper No. 2 and summarised below.

Table 1.2: National Capital Authority 2011-12 Budget measures Program 2010-11 2011-12 2012-13 2013-14 2014-15 $'000 $'000 $'000 $'000 $'000 Expense measures Efficiency dividend - temporary increase in the rate 1.1 Administered - - - - - Departmental - (68) (137) (174) (211) Total - (68) (137) (174) (211) Total expense measures Administered - - - - - Departmental - (68) (137) (174) (211) Total - (68) (137) (174) (211) Capital measures Efficiency dividend - temporary increase in the rate all Administered - (72) (100) (126) (210) Departmental - (5) (6) (8) (13) Total - (77) (106) (134) (223) Total capital measures Administered - (72) (100) (126) (210) Departmental - (5) (6) (8) (13) Total - (77) (106) (134) (223) Prepared on a Government Finance Statistics (fiscal) basis.

Section 2: Outcomes and planned performance

2.1 OUTCOMES AND PERFORMANCE INFORMATION

Government outcomes are the intended results, impacts or consequences of actions by the Government on the Australian community. Commonwealth programs are the primary vehicle by which government agencies achieve the intended results of their outcome statements. Agencies are required to identify the programs which contribute to Government outcomes over the Budget and forward years.

The NCA’s outcome is described below together with its related programs, specifying the performance indicators and targets used to assess and monitor the performance of the NCA in achieving Government outcomes.

Outcome 1: Manage the strategic planning, promotion and enhancement of Canberra as the National Capital for all Australians through the development and administration of the National Capital Plan, operation of the National Capital Exhibition, delivery of education and awareness programs and works to enhance the character of the National Capital

Outcome 1 Strategy The functions of the NCA establish the extent of the Commonwealth’s interest in the National Capital and are set out in section 6 of the PALM Act. The NCA’s outcome, programs, objectives and deliverables are directly related to these statutory functions.

The NCA’s objectives are to:

 Realise the promise of the city plan and the ideals of the founders.  Foster Canberra as the National Capital.  Develop the special character of the National Capital.

Outcome Expense Statement Table 2.1 provides an overview of the total expenses for Outcome 1, by program.

Table 2.1: Budgeted Expenses for Outcome 1 Outcom e 1: Manage the strategic planning, prom otion and enhancem ent of Canberra as the National Capital for all 2010-11 2011-12 Australians through the deve lopm ent and adm inistration of Estimated Estimated the National Capital Plan, ope ration of the National Capital actual expenses Exhibition, de livery of education and aw areness program s expenses and w ork s to e nhance the character of the National Capital $'000 $'000 Program 1.1: National Capital Functions Departmental expenses Departmental appropriation1 15,217 15,425 Expenses not requiring appropriation in the Budget year2 1,031 1,031 Total for Program 1.1 16,248 16,456 Program 1.2: National Capital Estate Administered expenses Ordinary annual services (Appropriation Bill No. 1) 920 939 Expenses not requiring appropriation in the Budget year2 17,043 17,371 Total for Program 1.2 17,963 18,310 Outcom e 1 Totals by appropriation type Administered Expenses Ordinary annual services (Appropriation Bill No. 1) 920 939 Departmental expenses Departmental appropriation1 15,217 15,425 Expenses not requiring appropriation in the Budget year2 18,074 18,402 Total expenses for Outcom e 1 34,211 34,766 2010-11 2011-12 Average Staffing Level (num ber) 52 52 1 Departmental Appropriation combines ‘Ordinary annual services (Appropriation Bill No. 1)’ and ‘Revenue from independent sources (s31)’. 2 Expenses not requiring appropriation in the Budget year is made up of depreciation expense, amortisation expense, the write-down of assets and audit fees.

Program 1.1: National Capital Functions

Program 1.1 objective The objectives of Program 1.1 are to:  Realise the promise of the city plan and the ideals of the founders.  Foster Canberra as the National Capital.  Develop the special character of the National Capital.

Program 1.1 expenses 2010-11 2011-12 2012-13 2013-14 2014-15 Revised Budget Forw ard Forw ard Forw ard budget year 1 year 2 year 3 $'000 $'000 $'000 $'000 $'000 Annual departmental expenses: 1.1.1 Canberra and the Australian Capital Territory are planned and developed in accordance w ith their national significance 2,149 2,177 2,195 2,213 2,232 1.1.2 Promotion and aw areness of the significance of Canberra as the National Capital 2,148 2,176 2,193 2,212 2,230 1.1.3 Advocacy, enhancement and management of the national capital estate 10,920 11,072 11,175 11,278 11,380 Expenses not requiring appropriation in the Budget year1 1,031 1,031 1,028 1,028 1,028 Total departm ental e xpe nses 16,248 16,456 16,591 16,731 16,870 1 Expenses not requiring appropriation in the Budget year is made up of depreciation expense, amortisation expense and audit fees.

Program 1.1 deliverables In 2011–12 and the forward years, the NCA will:

1.1.1 Ensure that Canberra and the Australian Capital Territory are planned and developed in accordance with their national significance. This will involve assessing and approving applications to undertake works in designated areas, preparing development control plans, urban design guidelines, master plans and draft amendments to the National Capital Plan. 1.1.2 Promote awareness of the significance of Canberra as the National Capital by operating the National Capital Exhibition at Regatta Point and distributing educational materials through the NCA website. 1.1.3 Enhance and manage the national capital estate by recommending and developing works and managing assets (including national land, Lake Burley Griffin, a number of major roads, civil infrastructure, open spaces and heritage listed landscaped areas) that are required for the special purposes of Canberra as the National Capital. 2010-11 2011-12 2012-13 2013-14 2014-15 Revised Budget Forw ard Forw ard Forw ard Deliverables budget year 1 year 2 year 3 1.1.1 Canberra and the Aus tralian Capital Te rritory are planned and develope d in accordance w ith the ir national significance Draft amendments to the National Capital Plan 1 2 2 2 2 Works approvals granted 300 300 300 300 300 Master plans/development control guidelines/urban design guidelines 6 6 6 6 6 1.1.2 Prom otion and aw arene ss of the s ignificance of Canberra as the National Capital Notified events on national land (events organised by external parties) 1,000 1,000 1,000 1,000 1,000 Visitors to the National Capital Exhibition1 160,000 110,000 80,000 200,000 200,000 Visits to online education materials on NCA w ebsite 7,500 3,500 5,000 6,000 7,000 1.1.3 Advocacy, enhancem ent and m anagem ent of the national capital es tate Diplomatic rent review s completed 2 2 1 5 3 Contract management peer review s 5 5 5 5 5 Value of assets under NCA management $760m $759m $751m $743m $739m 1 The delay in the closure of the NCE for renewal works has resulted in an increase in the budgeted visitors for 2010-11. Visitors will reduce in 2011–12 and 2012–13 due to the preparation for and closure of the National Capital Exhibition for renewal works.

Program 1.1 key performance indicators 1.1.1 The national significance of Canberra is reflected in the National Capital Plan. The key performance indicator focuses on ensuring development works are consistent with the National Capital Plan and assessing applications for works approval in an efficient and effective manner. 1.1.2 A key performance indicator measures the increased awareness of the special importance of Canberra as the National Capital as a result of visiting the National Capital Exhibition. 1.1.3 Timely response to maintenance issues is critical to the successful management of assets on national land. The NCA allocates response time targets based on the urgency of the maintenance issue. Meeting these targets is an indicator of appropriately protecting the national capital estate. The key performance indicator measures the percentage of maintenance issues addressed within the target timeframes. 2010-11 2011-12 2012-13 2013-14 2014-15 Key Performance Revised Budget Forw ard Forw ard Forw ard Indicators budget target year 1 year 2 year 3 1.1.1 Percentage of w orks approval applications assessed against the National Capital Plan w ithin 15 w orking days 90% 90% 90% 90% 90% 1.1.2 Percentage of surveyed National Capital Exhibition visitors w ho report an increased aw areness of the special importance of Canberra as the National Capital 90% 90% 90% 90% 90% 1.1.3 Percentage of building and civil infrastructure maintenance issues resolved w ithin required timeframes 90% 90% 90% 90% 90%

Program 1.2: National Capital Estate

Program 1.2 objective The objectives of Program 1.2 are to:  Develop and renew the special character of the national capital estate.  Mitigate Commonwealth risk associated with management of the national capital estate.

Program 1.2 expenses 2010-11 2011-12 2012-13 2013-14 2014-15 Revised Budget Forw ard Forw ard Forw ard budget year 1 year 2 year 3 $'000 $'000 $'000 $'000 $'000 Annual administered expenses: Administered items 920 939 958 980 1,002 Expenses not requiring appropriation in the Budget year 1 17,043 17,371 17,504 17,603 17,723 Total adm inistered expenses 17,963 18,310 18,462 18,583 18,725 1 Expenses not requiring appropriation in the Budget year is made up of depreciation expense and the write-down of assets.

Program 1.2 deliverables In 2011–12 and the forward years, the NCA will:  Obtain and retain appropriate levels of insurance cover for the main risks associated with assets on national land.  Ensure that assets on national land are developed and renewed in accordance with their national significance. 2010-11 2011-12 2012-13 2013-14 2014-15 Revised Budget Forw ard Forw ard Forw ard Deliverables budget year 1 year 2 year 3 Value of development and renew al w orks in the national capital estate $34m $17m $10m $10m $14m

Program 1.2 key performance indicators The key performance indicator for Program 1.2 is minimising impairment of assets on national land by obtaining and retaining appropriate levels of insurance cover. 2010-11 2011-12 2012-13 2013-14 2014-15 Key Performance Revised Budget Forw ard Forw ard Forw ard Indicators budget target year 1 year 2 year 3 Number of impaired assets on national land 0 0 0 0 0

Section 3: Explanatory tables and budgeted financial statements

Section 3 presents explanatory tables and budgeted financial statements which provide a comprehensive snapshot of agency finances for the 2011-12 budget year. It explains how budget plans are incorporated into the financial statements and provides further details of the reconciliation between appropriations and program expenses, movements in administered funds, special accounts and government indigenous expenditure.

3.1 EXPLANATORY TABLES

3.1.1 Movement of administered funds between years The NCA has not moved any administered funds between years.

3.1.2 Special Accounts Special Accounts provide a means to set aside and record amounts used for specified purposes. Special Accounts can be created by a Finance Minister’s Determination under the FMA Act or under separate enabling legislation. Table 3.1.2 shows the expected additions (receipts) and reductions (payments) for each account used by the NCA.

Table 3.1.2: Estimates of Special Account Flows and Balances Opening Closing balance Receipts Payments Adjustments balance 2011-12 2011-12 2011-12 2011-12 2011-12 2010-11 2010-11 2010-11 2010-11 2010-11 Outcome $'000 $'000 $'000 $'000 $'000 Other Trust Moneys - 12 - - - 12 n/a FMA Act s 20 (D) 12 - - - 12 Total Special Accounts 2011-12 Budge t estim ate 12 - - - 12 Total Special Accounts 2010-11 estimated actual 12 - - - 12 (D) = Departmental

3.1.3 Australian Government Indigenous Expenditure The NCA has no Indigenous-specific expenditure.

3.2 BUDGETED FINANCIAL STATEMENTS

3.2.1 Differences in agency resourcing and financial statements The agency resource statement (Table 1.1) provides a consolidated view of all the resources available to the agency in 2011–12. This includes appropriation receivable that is yet to be drawn down to cover payables and provisions on the balance sheet. The income statement (Table 3.2.1) shows only the operating appropriation provided in 2011–12. There is no significant difference between the agency resourcing and financial statements. 3.2.2 Analysis of budgeted financial statements Departmental Budgeted income statement The NCA is budgeting for a break-even operating result, adjusted for depreciation and amortisation expense, in 2011–12 and the forward years. Revenue from government will increase by $0.2 million to $13.4 million in 2011-12 reflecting the impact of indexation. Revenue from other sources principally reflects the recovery of costs for the provision of services and rental income. Budgeted balance sheet The NCA’s net position is budgeted to remain consistent.

Administered Schedule of budgeted income and expenses administered on behalf of Government In 2011-12 the NCA will receive appropriation of:  $14.2 million for activities it administers on behalf of government, representing an increase of 15.1% from 2010–11. This appropriation is directly linked to the administered capital budget and will be used to replace existing administered assets.  $0.9 million for supplier expenses including the insurance premium for risks associated with assets on national land. Revenue from administered activities primarily includes lease revenue on diplomatic land and user fees paid directly to the Official Public Account.

Schedule of budgeted assets and liabilities on behalf of the Government Total administered assets are budgeted to remain consistent in 2011–12 primarily due to the replacement and upgrade to existing assets.

3.2.3 Budgeted financial statements tables Table 3.2.1 Budgeted departmental comprehensive income statement (for the period ended 30 June) Estimated Budget Forw ard Forw ard Forw ard actual estimate estimate estimate estimate 2010-11 2011-12 2012-13 2013-14 2014-15 $'000 $'000 $'000 $'000 $'000 EXPENSES Employee benefits 4,745 4,900 5,055 5,220 5,390 Supplier expenses 10,517 10,570 10,553 10,528 10,497 Depreciation and amortisation 986 986 983 983 983 Total expenses 16,248 16,456 16,591 16,731 16,870 LESS: OWN-SOURCE INCOME Ow n-source re venue Sale of goods and rendering of services 2,058 2,058 2,058 2,058 2,058 Total ow n-source revenue 2,058 2,058 2,058 2,058 2,058 Gains Other 45 45 45 45 45 Total gains 45 45 45 45 45 Total ow n-source incom e 2,103 2,103 2,103 2,103 2,103 Net cost of (contribution by) s ervices 14,145 14,353 14,488 14,628 14,767

Revenue from Government 13,159 13,367 * 13,505 * 13,645 * 13,784 * Surplus (de ficit) (986) (986) (983) (983) (983) Surplus (de ficit) attributable to the Aus tralian Gove rnm e nt (986) (986) (983) (983) (983)

Note: Reconciliation of com prehe nsive incom e attributable to the agency 2010-11 2011-12 2012-13 2013-14 2014-15 $'000 $'000 $'000 $'000 $'000 Operating result attributable to the Australian Governm ent (986) (986) (983) (983) (983) plus non-appropriated expenses depreciation and amortisation expenses 986 986 983 983 983 Total Com prehens ive Incom e (loss ) Attributable to the agency - - - - - Prepared on Australian Accounting Standards basis.

Table 3.2.2: Budgeted departmental balance sheet (as at 30 June) Estimated Budget Forw ard Forw ard Forw ard actual estimate estimate estimate estimate 2010-11 2011-12 2012-13 2013-14 2014-15 $'000 $'000 $'000 $'000 $'000 ASSETS Financial as sets Cash and cash equivalents 423 423 423 423 423 Trade and other receivables 3,332 3,089 2,949 2,894 2,894 Total financial assets 3,755 3,512 3,372 3,317 3,317 Non-financial assets Land and buildings 7,728 7,728 7,728 7,728 7,728 Property, plant and equipment 7,998 8,004 7,636 7,274 7,157 Intangibles 321 321 321 321 321 Hertitage and cultural assets 1,011 1,011 1,011 1,011 1,011 Other 156 148 140 132 132 Total non-financia l assets 17,214 17,212 16,836 16,466 16,349 Total assets 20,969 20,724 20,208 19,783 19,666 LIABILITIES Payables Suppliers 387 387 387 387 387 Other 5,586 5,332 5,181 5,115 5,115 Total paya bles 5,973 5,719 5,568 5,502 5,502 Provisions Employee provisions 1,112 1,112 1,112 1,112 1,112 Other 47 50 53 56 56 Total provisions 1,159 1,162 1,165 1,168 1,168 Total liabilities 7,132 6,881 6,733 6,670 6,670 Net asse ts 13,837 13,843 13,475 13,113 12,996 EQUITY Parent entity interes t Contributed equity 3,586 4,578 5,193 5,814 6,680 Reserves 7,508 7,508 7,508 7,508 7,508 Retained surplus (accumulated deficit)1 2,743 1,757 774 (209) (1,192) Total parent entity interest 13,837 13,843 13,475 13,113 12,996 1 As a result of net cash appropriation arrangements and asset replacements being funded through capital injections, budgeted operating deficits from depreciation and amortisation expenses erode accumulated results. Prepared on Australian Accounting Standards basis.

Table 3.2.3: Budgeted departmental statement of changes in equity — summary of movement (Budget year 2011-12) Retained Asset Other Contributed Total earnings revaluation reserves equity/ equity reserve capital $'000 $'000 $'000 $'000 $'000 Opening balance as at 1 July 2011 Balance carried forw ard from previous period 2,743 7,508 - 3,586 13,837 Adjustment for changes in accounting policies - - - - - Adjusted opening ba lance 2,743 7,508 - 3,586 13,837 Com prehens ive incom e Surplus (deficit) for the period (986) - - - (986) Total comprehensive income (986) - - - (986) Transactions w ith ow ne rs Contributions by owners Appropriation (departmental) capital budget - - - 992 992 Sub-total transactions with owners - - - 992 992 Estim ate d closing balance as at 30 June 2012 1,757 7,508 - 4,578 13,843 Prepared on Australian Accounting Standards basis.

Table 3.2.4: Budgeted departmental statement of cash flows (for the period ended 30 June) Estimated Budget Forw ard Forw ard Forw ard actual estimate estimate estimate estimate 2010-11 2011-12 2012-13 2013-14 2014-15 $'000 $'000 $'000 $'000 $'000 OPERATING ACTIVITIES Cash re ceived Goods and services 2,191 2,191 2,191 2,191 2,243 Appropriations 13,159 13,367 13,505 13,645 13,784 Net GST received 762 766 765 762 756 Cash from the OPA - 31 31 34 - Total cash received 16,112 16,355 16,492 16,632 16,783 Cash use d Employees 4,745 4,900 5,055 5,220 5,390 Suppliers 11,358 11,455 11,437 11,412 11,393 Cash to the OPA 9 - - - - Total cash used 16,112 16,355 16,492 16,632 16,783 Net cash from (used by) operating activities - - - - - INVESTING ACTIVITIES Cash use d Purchase of property, plant and equipment 986 992 615 621 866 Total cash used 986 992 615 621 866 Net cash from (used by) investing activities (986) (992) (615) (621) (866) FINANCING ACTIVITIES Cash re ceived Contributed equity 986 992 615 621 866 Total cash received 986 992 615 621 866 Net cash from (used by) financing activities 986 992 615 621 866 Net increase (decrease ) in cash held - - - - - Cash and cash equivalents at the beginning of the reporting period 423 423 423 423 423 Cash and cash equivalents at the e nd of the reporting period 423 423 423 423 423 Prepared on Australian Accounting Standards basis.

Table 3.2.5: Departmental capital budget statement Estimated Budget Forw ard Forw ard Forw ard actual estimate estimate estimate estimate 2010-11 2011-12 2012-13 2013-14 2014-15 $'000 $'000 $'000 $'000 $'000 CAPITAL APPROPRIATIONS Capital budget - Bill 1 (DCB) 986 992 615 621 866 Total capital appropriations 986 992 615 621 866 Total ne w capital appropriations Represented by: Purchase of non-financial assets 986 992 615 621 866 Total Ite m s 986 992 615 621 866 PURCHASE OF NON-FINANCIAL ASSETS Funded by capital appropriation - DCB 986 992 615 621 866 TOTAL 986 992 615 621 866 RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE Total purchases 986 992 615 621 866 Total cash used to acquire assets 986 992 615 621 866 Prepared on Australian Accounting Standards basis.

Table 3.2.6: Budgeted departmental statement of asset movements (2011-12) Buildings Other property, Heritage Intangibles Total plant and and cultural equipment assets $'000 $'000 $'000 $'000 $'000 As at 1 July 2011 Gross book value 7,926 9,446 1,041 370 18,783 Accumulated depreciation/amortisation and impairment 198 1,448 30 49 1,725 Opening net book balance 7,728 7,998 1,011 321 17,058 CAPITAL ASSET ADDITIONS Estim ated expenditure on new or replacem ent ass ets By purchase - appropriation ordinary annual services 170 756 26 40 992 Total additions 170 756 26 40 992 Other m ovem ents Depreciation/amortisation expense 170 750 26 40 986 As at 30 June 2012 Gross book value 8,096 10,202 1,067 410 19,775 Accumulated depreciation/amortisation and impairment 368 2,198 56 89 2,711 Closing net book balance 7,728 8,004 1,011 321 17,064 Prepared on Australian Accounting Standards basis.

Table 3.2.7: Schedule of budgeted income and expenses administered on behalf of Government (for the period ended 30 June) Estimated Budget Forw ard Forw ard Forw ard actual estimate estimate estimate estimate 2010-11 2011-12 2012-13 2013-14 2014-15 $'000 $'000 $'000 $'000 $'000 INCOME ADMINISTERED ON BEHALF OF GOVERNMENT Revenue Non-taxation revenue Sale of goods and rendering of services 1,350 1,350 1,350 1,350 1,350 Total non-ta xation revenue 1,350 1,350 1,350 1,350 1,350 Total revenues adm iniste red on behalf of Gove rnm ent 1,350 1,350 1,350 1,350 1,350 Total incom e adm inistere d on behalf of Gove rnm ent 1,350 1,350 1,350 1,350 1,350 EXPENSES ADMINISTERED ON BEHALF OF GOVERNMENT Supplier expenses 920 939 958 980 1,002 Depreciation and amortisation 16,043 16,371 16,504 16,603 16,723 Write-dow n and impairment of assets 1,000 1,000 1,000 1,000 1,000 Total expenses adm inis tered on behalf of Gove rnm ent 17,963 18,310 18,462 18,583 18,725 Prepared on Australian Accounting Standards basis.

Table 3.2.8: Schedule of budgeted assets and liabilities administered on behalf of Government (as at 30 June) Estimated Budget Forw ard Forw ard Forw ard actual estimate estimate estimate estimate 2010-11 2011-12 2012-13 2013-14 2014-15 $'000 $'000 $'000 $'000 $'000 ASSETS ADMINISTERED ON BEHALF OF GOVERNMENT Financial assets Cash and cash equivalents 7 7 7 7 7 Receivables 580 580 580 580 580 Total financial assets 587 587 587 587 587 Non-financial assets Land and buildings 369,287 369,287 369,287 369,287 369,287 Property, plant and equipment 338,171 337,417 329,718 322,030 318,045 Hertitage and cultural assets 35,225 35,225 35,225 35,225 35,225 Intangibles 119 119 119 119 119 Total non-financial assets 742,802 742,048 734,349 726,661 722,676 Total assets adm inistered on behalf of Governm ent 743,389 742,635 734,936 727,248 723,263 LIABILITIES ADMINISTERED ON BEHALF OF GOVERNMENT Payables Suppliers 445 445 445 445 445 Other 730 730 730 730 730 Total payables 1,175 1,175 1,175 1,175 1,175 Total liabilities adm inistered on behalf of Governm ent 1,175 1,175 1,175 1,175 1,175 Prepared on Australian Accounting Standards basis.

Table 3.2.9: Schedule of budgeted administered cash flows (for the period ended 30 June) Estimated Budget Forw ard Forw ard Forw ard actual estimate estimate estimate estimate 2010-11 2011-12 2012-13 2013-14 2014-15 $'000 $'000 $'000 $'000 $'000 OPERATING ACTIVITIES Cash received Sales of goods and rendering of services 1,364 1,350 1,350 1,350 1,350 Net GST received 69 85 86 88 90 Total cash received 1,433 1,435 1,436 1,438 1,440 Cash used Suppliers 1,003 1,024 1,044 1,068 1,092 Total cash used 1,003 1,024 1,044 1,068 1,092 Net cash from (used by) operating activities 430 411 392 370 348 INVESTING ACTIVITIES Cash used Purchase of property, plant and equipment 34,458 16,617 9,805 9,915 13,738 Total cash used 34,458 16,617 9,805 9,915 13,738 Net cash from (used by) investing activities (34,458) (16,617) (9,805) (9,915) (13,738) Net increase (decrease) in cash held (34,028) (16,206) (9,413) (9,545) (13,390) Cash and cash equivalents at beginning of reporting period 7 7 7 7 7 Cash from Official Public Account for: - Appropriations 35,378 17,556 10,763 10,895 14,740 35,385 17,563 10,770 10,902 14,747 Cash to Official Public Account for: - Appropriations (1,350) (1,350) (1,350) (1,350) (1,350) (1,350) (1,350) (1,350) (1,350) (1,350) Cash and cash equivalents at end of reporting period 7 7 7 7 7 Prepared on Australian Accounting Standards basis.

Table 3.2.10: Schedule of administered capital budget Estimated Budget Forw ard Forw ard Forw ard actual estimate estimate estimate estimate 2010-11 2011-12 2012-13 2013-14 2014-15 $'000 $'000 $'000 $'000 $'000 CAPITAL APPROPRIATIONS Capital budget - Bill 1 (ACB) 12,376 14,247 9,805 9,915 13,738 Total capital appropriations 12,376 14,247 9,805 9,915 13,738 Total new capital appropriations Represented by: Purchase of non-financial assets 12,376 14,247 9,805 9,915 13,738 Total Item s 12,376 14,247 9,805 9,915 13,738 PURCHASE OF NON-FINANCIAL ASSETS Funded by capital appropriations1 20,118 2,370 - - - Funded by capital appropriation - ACB 12,376 14,247 9,805 9,915 13,738 Funded internally from reserves 1,964 - - - - TOTAL 34,458 16,617 9,805 9,915 13,738 RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE Total purchases 34,458 16,617 9,805 9,915 13,738 Total cas h used to acquire asse ts 34,458 16,617 9,805 9,915 13,738 1 Includes purchases from previous years’ capital appropriations. Prepared on Australian Accounting Standards basis.

Table 3.2.11: Schedule of budgeted asset movements administered on behalf of Government (2011-12) Land Buildings Other Heritage Intangibles Total property, and plant and cultural equipment assets $'000 $'000 $'000 $'000 $'000 $'000 As at 1 July 2011 Gross book value 358,722 10,961 355,653 36,057 119 761,512 Accumulated depreciation/amortisation and impairment - 396 17,482 832 - 18,710 Opening net book balance 358,722 10,565 338,171 35,225 119 742,802 CAPITAL ASSET ADDITIONS Estim ated expenditure on new or replacem ent as sets By purchase - appropriation equity - - 2,370 - - 2,370 By purchase - appropriation ordinary annual services - 362 13,206 679 - 14,247 Total additions - 362 15,576 679 - 16,617 Other m ovem ents Depreciation/amortisation expense - 362 15,330 679 - 16,371 Net w rite-dow n of assets - - 1,000 - - 1,000 As at 30 June 2012 Gross book value 358,722 11,323 370,229 36,736 119 777,129 Accumulated depreciation/amortisation and impairment - 758 32,812 1,511 - 35,081 Closing net book balance 358,722 10,565 337,417 35,225 119 742,048 Prepared on Australian Accounting Standards basis.

77 Glossary

Accumulated The aggregate depreciation recorded for a particular depreciation depreciating asset. Actual available The actual available appropriation indicates the total appropriation appropriations available to the agency for 2010–11 as at the 2011–12 Budget. It includes all appropriations made available to the agency in the year (+/– section 32 transfers, formal reductions, advance to the Finance Minister and movements of funds). It is the same as the comparator figure included in the Appropriation Bills and, as such, provides a comparison with the appropriation proposed for the Budget year. Administered capital Net cash appropriation arrangements involve the budget (ACB) cessation of funding for depreciation, amortisation and makegood expenses. Funding for these expenses has been replaced with a collection development and acquisition budget (CDAB) for designated collection institutions (DCIs), and administered capital budgets (ACBs) for FMA Act agencies. Administered item Appropriation that consists of funding managed on behalf of the Commonwealth. This funding is not at the discretion of the agency and any unspent appropriation is returned to the Consolidated Revenue Fund CRF at the end of the financial year. An administered item is a component of an administered program. It may be a measure but will not constitute a program in its own right. Agency Generic term for Australian Government General Government Sector entities, including those governed by the FMA Act or CAC Act and the High Court of Australia. Appropriation An amount of public money parliament authorises for spending (i.e. funds to be withdrawn from the CRF). Parliament makes laws for appropriating money under the Annual Appropriation Acts and under Special Appropriations, with spending restricted to the purposes specified in the Appropriation Acts.

78 Glossary

Appropriation Acts These appropriation Acts provide for matters that are Nos 1 & 3 considered to be the ordinary annual services of the government. Bills proposing appropriations for ordinary annual services cannot be amended by the Senate under section 53 of the Constitution. Budget Paper 1 (BP1) Budget Strategy and Outlook. Provides information and analysis on whole-of-government expenditure and revenue. Budget Paper 2 (BP2) Budget Measures. Provides a description of each budget measure by portfolio. Budget Paper 3 (BP3) Australia‘s Federal Relations. Provides information and analysis on federal funding provided to the states and territories. Budget Paper 4 (BP4) Agency Resourcing. Details total resourcing available to agencies. Capital expenditure Expenditure by an agency on capital projects; for example, purchasing a building. Consolidated Revenue The principal operating fund from which money is Fund drawn to pay for the activities of the Government. Section 81 of the Australian Constitution provides that all revenue raised or monies received by the Executive Government forms one consolidated revenue fund from which appropriations are made for the purposes of the Australian Government. Departmental capital Net cash appropriation arrangements involve the budget (DCB) cessation of funding for depreciation, amortisation and makegood expenses. Funding for these expenses has been replaced with a collection development and acquisition budget (CDAB) for designated collection institutions (DCIs), and departmental capital budgets (DCBs) for FMA Act agencies. Departmental item Resources (assets, liabilities, revenues and expenses) that agency chief executive officers control directly. This includes outsourced activities funded and controlled by the agency. Examples of departmental items include agency running costs, accrued employee entitlements and net appropriations. A departmental item is a component of a departmental program.

79 Glossary

Depreciation Apportionment of an asset’s capital value as an expense over its estimated useful life to take account of normal usage, obsolescence, or the passage of time. Equity or net assets Residual interest in the assets of an entity after deduction of its liabilities. Entity A department or agency under the Financial Management and Accountability Act 1997 (FMA Act), a company or authority under the Commonwealth Authorities and Companies Act 1997 (CAC Act) or any other Commonwealth statutory authority. Estimated actual Details of the current year‘s estimated final figures as expenses included in the Budget documentation. As the Budget is released in May each year, but the financial year does not close off until 30 June, the current year numbers that are used for comparison with Budget amounts can only be estimates. Expenditure Spending money from the Consolidated Revenue Fund or a notional payment to an FMA agency. Expense Decreases in economic benefits in the form of outflows or depletions of assets or incurrence of liabilities that result in decreases in equity, other than those relating to distributions to equity participants. Expenses not requiring Expenses not involving a cash-flow impact are not appropriation in the included within the calculation of an appropriation. Budget year An example of such an event is goods or services received free of charge that are then expensed; for example, ANAO audit services. The ANAO does not charge for audit services; however, the expense must be recognised. Similarly, bad debts are recognised as an expense but are not recognised for the purpose of calculating appropriation amounts to be sought from parliament. Financial Management and The FMA Act sets out the financial management, Accountability Act 1997 accountability and audit obligations of agencies (FMA Act) (including departments) that are financially part of the Commonwealth (and form part of the General Government Sector).

80 Glossary

Forward estimates period The three years following the budget year. For example if 2010–11 is the Budget year, 2011–12 is forward year 1, 2012–13 is forward year 2 and 2013–14 is forward year 3. This period does not include the current or budget year. Funds Money that has been appropriated but not drawn from the Consolidated Revenue Fund. Income Total value of resources earned or received to cover the production of goods and services. Make good Make good is the cost of dismantling and removing an item and restoring the site on which it is located, the obligation for which an entity incurs either when the item is acquired or as a consequence of having used the item during a particular period for purposes other than to produce inventories during that period. A common example of make good in the public sector is the restoration of office premises at the end of a lease period. Measure A new policy or savings decision of the government with financial impacts on the government’s underlying cash balance, fiscal balance, operating balance, headline cash balance, net debt or net worth. Such proposals are normally made in the context of the annual Budget, and are typically published in Budget Paper No. 2, in the Mid-Year Economic and Fiscal Outlook (MYEFO). Mid-Year Economic and The MYEFO provides an update of the government’s Fiscal Outlook (MYEFO) budget estimates by examining expenses and revenues in the year to date, as well as provisions for new decisions that have been taken since the Budget. The report provides updated information to allow the assessment of the government‘s fiscal performance against the fiscal strategy set out in its current fiscal strategy statement. ‘Movement of funds’ A ‘movement of funds’ process is carried out twice between years each year in relation to unexpensed administered operating appropriations. This involves portfolio ministers submitting requests to the Finance Minister advising of timing changes to funding requirements. If agreed by the Finance Minister, there will be an increase in the amount appropriated in later year(s).

81 Glossary

Net cash framework The net cash framework, implemented from the 2010– 11 Budget, replaces funding for depreciation and amortisation expenses with a departmental capital budget (DCB) and the funding of make-good expenses will cease to be paid in advance. The net cash framework applies to general government sector agencies that receive funding from annual appropriations directly or via a special account, with the exception of CAC Act bodies and the Department of Defence and the Defence Materiel Organisation. Non-operating Sometimes called ‘capital’ costs. Official Public Account The OPA is the Australian Government‘s central bank (OPA) account held within the Reserve Bank of Australia. The OPA reflects the operations of the Consolidated Revenue Fund. Operating Normally related to ongoing, or recurring expenses, such as paying salaries or making program payments. Operating result Equals income less expenses. Outcome An outcome is the intended result, consequence or impact of government actions on the Australian community. Portfolio Budget Budget-related paper detailing budget initiatives and Statements explanations of appropriations specified by outcome and program by each agency within a portfolio. Program Activity that delivers benefits, services or transfer payments to individuals, industry and/or the community as a whole, with the aim of achieving the intended result specified in an outcome statement. Program support The agency running costs allocated to a program. This is funded as part of the agency‘s departmental appropriations.

82 Glossary

Special account Balances existing within the Consolidated Revenue Fund (CRF) that are supported by standing appropriations (Financial Management and Accountability Act 1997, ss. 20 and 21). Special accounts allow money in the CRF to be acknowledged as set-aside (hypothecated) for a particular purpose. Amounts credited to a special account may only be spent for the purposes of the special account. Special accounts can only be established by a written determination of the Finance Minister (s. 20 of the FMA Act) or through an Act of Parliament (referred to in s. 21 of the FMA Act). Special appropriations An amount of money appropriated by a particular (including standing Act of Parliament for a specific purpose and number appropriations) of years. For special appropriations, the authority to withdraw funds from the CRF does not generally cease at the end of the financial year. Standing appropriations are a subcategory consisting of ongoing special appropriations—the amount appropriated will depend on circumstances specified in the legislation.

83 INDEX

A administered capital budget, 53 administered cash flows, 52 administered asset movements administered funds, movements DRARDLG, 54 between years, 39 NCA, 81 administered income and expenses, administered assets and liabilities 50 DRARDLG, 51 agency overview and resources, 15– NCA, 78 22 administered capital budget agency resources statement, 18–19 DRARDLG, 53 analysis of financial statements, 42– NCA, 80 43 administered cash flows Australian Government Indigenous DRARDLG, 52 expenditure, 41 NCA, 79 budget measures, 20–22 administered funds, movements departmental balance sheet, 45 DRARDLG, 39 departmental capital budget administered income and expenses statement, 48 DRARDLG, 50 departmental income statement, 44 NCA, 77 departmental statement of asset agency overview and resources movements, 49 DRARDLG, 15–22 departmental statement of cash NCA, 59–62 flows, 47 agency resource statements departmental statement of changes DRARDLG, 18–19 in equity, 46 NCA, 61 financial statements, 42–54 analysis of financial statements Outcome 1, 23–34 DRARDLG, 42–43 Outcome 2, 35–38 NCA, 70 outcomes and planned performance, Australian Government Indigenous 23–38 expenditure Program 1.1 DRARDLG, 41 Regional Development, 27–31 B Program 1.2 Local Government, 32–34 budget measures Program 2.1 DRARDLG, 20–22 Services of Territories, 37–38 NCA, 62 special accounts, 40 strategic direction of agency, 15–17 D departmental balance sheets Department of Regional Australia, DRARDLG, 45 Regional Development and Local NCA, 72 Government (DRARDLG) departmental capital budget administered asset movements, 54 statements administered assets and liabilities, 51 DRARDLG, 48

84 Index

NCA, 75 departmental income statement, 71 departmental income statements departmental statement of asset DRARDLG, 44 movements, 76 NCA, 71 departmental statement of cash departmental statements of asset flows, 74 movements departmental statement of changes DRARDLG, 49 in equity, 73 NCA, 76 financial statements, 70–81 departmental statements of cash flows Outcome 1, 63–68 DRARDLG, 47 outcomes and planned performance, NCA, 74 63–68 departmental statements of changes in Program 1.1 equity National Capital Functions, 65–67 DRARDLG, 46 Program 1.2 NCA, 73 National Capital Estate, 68 special accounts, 69 F strategic direction of agency, 59–60 financial statements O DRARDLG, 42–54 NCA, 70–81 outcome strategies DRARDLG, 23–25, 35 G NCA, 63 glossary of terms, 83–88 outcomes and planned performance DRARDLG, 23–38 N NCA, 63–68

National Capital Authority P administered asset movements, 81 administered assets and liabilities, 78 portfolio administered capital budget, 80 minister and portfolio administered cash flows, 79 responsibilities, 3–6 administered income and expenses, resources, 8 77 structure and outcomes, 7 agency overview and resources, 59– S 62 agency resource statement, 61 special accounts analysis of financial statements, 70 DRARDLG, 40 budget measures, 62 NCA, 69 departmental balance sheet, 72 strategic direction of agencies departmental capital budget DRARDLG, 15–17 statement, 75 NCA, 59–60