(1)   Was there any appropriation receivable included as an asset in the balance sheet at 30 June 2006.

(2)   Is there an appropriation receivable included as an asset in the estimated balance sheet at 30 June 2007.

(3)   What are the reasons for any movement in the appropriation receivable between 30 June 2006 and 30 June 2007.

(4)   With reference to the estimated actual results and financial position for the 2006-07 financial year, what amounts have been identified, for the 2007-08 financial years and for future years, for funding employee entitlements or asset replacements from the appropriation receivable balance.

(5)   For the 2007-08 financial year and future years, what other items have been identified for funding from the appropriation receivable balance.

(6)   What tests are applied by the Department of Finance and Administration over access to the appropriation receivable.

(1)   The Department reported an appropriation receivable of $119.610m in the Balance Sheet as at 30 June 2006. Portfolio agencies that have an appropriation receivable are provided in the following table:

Agency	Appropriation Receivable $’m
National Blood Authority (Special Account)	7.700
Professional Services Review Scheme	5.045

Portfolio agencies that did not have an appropriation receivable as at 30 June 2006 include:

(2)   The Department’s estimated appropriation receivable in the Balance Sheet as at 30 June 2007 is $122.880m. Portfolio agencies that will report an appropriation receivable balance at 30 June 2007 are provided in the following table:

Agency	Appropriation Receivable Estimate $’m
Australian Radiation Protection and Nuclear Safety Bureau	4.097
Cancer Australia	1.000
National Blood Authority (Special Account)	7.508
National Health and Medical Research Council	21.200
Professional Services Review Scheme	9.538

   Portfolio agencies that do not have an estimated appropriation receivable as at 30 June 2007 include:

   Aged Care Standards and Accreditation Agency Limited

   Australian Institute of Health and Welfare

   Food Standards Australia New Zealand

   General Practice and Training Limited

   Private Health Insurance Administration Council

   Private Health Insurance Ombudsman

(3)   The movement in the departmental appropriation receivable balance between 30 June 2006 and 30 June 2007 can be attributed to the annual operating result, capital expenditure and balance sheet movements specifically annual changes in receivables, creditors and employee entitlements account balances. National Blood Authority There was a nil movement in Appropriations Receivable under an Appropriation Bill. The movement in the Appropriation Receivable Special Account between the 2005-06 balance and the estimated 2006-07 balance was a reduction of cash held in the Official Public Account of $0.192m. The reduction relation to cash drawn down to meet agency expenses during the 2006-07 financial year. National Health and Medical Research Council (NHMRC) The movement relates to the appropriation receivable balance which transferred when NHMRC was established as an entity separate from the Department plus departmental appropriation funds not drawn down in 2006-07. Professional Services Review Scheme The movement in the appropriation receivable balance between 30 June 2006 and 30 June 2007 can be mainly attributed to the operating surpluses accumulated over recent years as a result of delays in the processing of cases involving legal challenges in the Federal Court, and a reduction in requests for review from Medicare Australia. Portfolio agencies for which this question is not applicable: Aged Care Standards and Accreditation Agency Limited Australian Institute of Health and Welfare Cancer Australia Food Standards Australia New Zealand General Practice and Training Limited Private Health Insurance Administration Council Private Health Insurance Ombudsman

(4)   The Department manages its annual operating performance with the aim of balancing the budget or achieving small operating surpluses each financial year. In addition, the Department’s creditors and receivables have historically remained relatively constant whilst employee entitlement provisions have generally increased. As a consequence of these factors the Department’s appropriation receivable balance has gradually increased over time. However, the Department’s accommodation strategy anticipates the refurbishment or relocation to new property leasehold office space over the next five years. The Department will utilise its appropriation receivable balance to fund this capital expenditure. Similarly, the Department also anticipates utilising the appropriation receivable balance to improve the Department’s IT environment. Australian Radiation Protection and Nuclear Safety Bureau (ARPANSA) The agency manages its annual budget with the aim of achieving a balanced budget each financial year. This is not always possible due to external factors impacting on project progress, particularly those associated with international contractual obligations. Delays in the delivery and installation of scientific and IT equipment also affected the year end position. ARPANSA will be implementing a large scale IT update program including a staged desktop refresh and backup facility enhancement. The appropriation receivable balance will be applied to improve the Agency’s ICT infrastructure. Cancer Australia The estimated end of financial year appropriation receivable for the 2006-07 financial year will include accumulated depreciation relating to future asset replacements of $75,940 and provisions for employee entitlements of $137,473. Please note, an estimate of employee entitlements for prior service is not yet available and as a result this balance equates to provisions relating to employee tenure at Cancer Australia only. National Blood Authority For the 2007-08 financial year $1.1m has been identified to fund employee entitlements (2008-09: $1.2m, 2009-10: $1.3m, 2010-11: $1.4m) and $0.8m to fund asset replacements (2008-09: $0.5m, 2009-10: $1.4m, 2010-11: $0.1m). National Health and Medical Research Council $1.8m has been identified to fund asset replacements and an estimate of $2.7m to fund employee entitlements. Professional Services Review Scheme (PSR) PSR is anticipating a significant increase in the number of cases being referred by Medicare Australia which will necessitate additional staffing and other resources. PSR will closely monitor progress to determine if costs can be met from recurrent funding. Asset replacements will include IT equipment of some $500,000 over the next two financial years. Portfolio agencies for which this question is not applicable: Aged Care Standards and Accreditation Agency Limited Australian Institute of Health and Welfare Food Standards Australia New Zealand General Practice and Training Limited Private Health Insurance Administration Council Private Health Insurance Ombudsman

(5)   The Department has identified two major projects that will be funded from the appropriation receivable:

(i)   2009-10 accommodation project - the appropriation receivable will be used to fund fitout costs associated with providing new office accommodation for staff currently located in the ACT; and

(ii)   Program management improvement project - the appropriation receivable will be used to fund the development of a grants management system that will provide a common basis for the management and administration of program funding across the Department. Cancer Australia There are no other items that have been identified for funding via an appropriation receivable balance. National Blood Authority Other items that have been identified for funding from the appropriation receivable balance in 2007-08 include: IT development - Integrated Data Management System $1.5m, other IT development $1.0m, expenses $0.6m and July 2007 States and Territories contributions $0.2m. National Health and Medical Research Council Departmental costs for the Australia Fellowship Scheme will be funded from appropriation receivable balance over the next eight years. Professional Services Review Scheme (PSR) PSR’s need to fund items from the appropriation receivable balance will depend on the quantum of the anticipated increased workload into the out years. Portfolio agencies for which this question is not applicable: Aged Care Standards and Accreditation Agency Limited Australian Institute of Health and Welfare Food Standards Australia New Zealand General Practice and Training Limited Private Health Insurance Administration Council Private Health Insurance Ombudsman

(6)   Minister for Finance and Administration to answer this question.