Department of the Environment

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Publications archive - Budget statements

Disclaimer

Key departmental publications, e.g. annual reports, budget papers and program guidelines are available in our online archive.

Much of the material listed on these archived web pages has been superseded, or served a particular purpose at a particular time. It may contain references to activities or policies that have no current application. Many archived documents may link to web pages that have moved or no longer exist, or may refer to other documents that are no longer available.

Portfolio Budget Statements 2001-2002

Environment and Heritage Portfolio
Budget Initiatives and Explanations of Appropriations 2001-2002
Budget Related Paper No. 1.7

GLOSSARY

Accrual Accounting System of accounting where items are brought to account and included in the financial statements as they are earned or incurred, rather than as they are received or paid.

Accrual Budget A budget developed on an accrual accounting basis. It looks at the full resource implications of financial planning, including the recognition of non-cash items such as accrued staff entitlements and depreciation expense.

Accumulated Depreciation The aggregate depreciation recorded for a particular depreciating asset.

Additional Estimates Where amounts appropriated at budget time are insufficient, additional appropriations are introduced or past appropriations corrected, Parliament may appropriate funds to portfolios through the Additional Estimates Acts (Appropriation Bills 3 and 4). This is the Additional Estimates process.

Additional Estimates Bills or Acts These are Appropriation Bills Nos. 3 and 4, and a separate Bill for the Parliamentary Departments (Appropriations (Parliamentary Departments) Bill No. 2). These Bills are introduced into Parliament after the Budget Bills.

Administered Items Expenses, revenues, assets or liabilities managed by agencies on behalf of the Commonwealth. Agencies do not control administered items. Administered expenses include grants, subsidies and benefits. In many cases, administered expenses fund the delivery of third party outputs.

Appropriation An authorisation by Parliament to spend moneys from the Official Public Account (Consolidated Revenue Fund).

Annual Appropriation Two Appropriation Bills (Appropriation Bills 1 and 2) are introduced into Parliament in May and comprise the Budget. Further Bills are introduced later in the financial year as part of the Additional Estimates budget process (Appropriation Bills 3 and 4).

Assets Future economic benefits controlled by an entity as a result of past transactions or other past events.

Capital expenditure Expenditure by an agency to obtain capital items either directly through capital acquisitions or indirectly through capital projects.

Capital-Use Charge The Capital-Use Charge (CUC) is a dividend requirement levied on Commonwealth General Government Sector agencies and authorities. The CUC payment is based on those agencies' and authorities' Departmental net assets at financial year end. Funding for the CUC is included in agencies and authorities Departmental price of outputs appropriation.

Competitive Tendering The process by which agencies call for tenders to perform a service from internal and external bodies, including the private sector and other departments and agencies, in an open and transparent competitive environment.

Departmental Items Assets, liabilities, revenues and expenses which are controlled by the agency in providing its outputs. Departmental items would generally include computers, plant and equipment assets used by agencies in providing goods and services and most employee expenses, supplier costs and other administrative expenses incurred.

Depreciation That component of an asset's useful life which has expired. Funding equivalent to the annual depreciation of each asset is provided to finance replacement of the fully depreciated asset.

Deprival method (of asset valuation) Values non-financial assets according to the current cost of replacement of an equivalent new asset. That is, non-financial assets are valued at the lowest cost of replacing the gross 'service potential' of those assets.

Effectiveness The extent to which planned outcomes are achieved, via relevant outputs or administered expenses.

Effectiveness Indicators Indicators to assess the degree of success in achieving planned outcomes. They are likely to relate to intermediate outcomes below the planned outcomes specified at Budget level.

Equity or Net Assets The net worth of an agency at a point in time (assets less liabilities).

Evaluation A systematic, objective assessment of the appropriateness, effectiveness or efficiency of an intervention. Depending on the purpose of the evaluation and the stage of development of the relevant business, an evaluation may focus on more than one of these issues.

Executive Agency An Agency established under the Public Service Act 1999. Is a non-statutory body headed by a person appointed by and directly accountable to the Minister responsible for the Agency. The Head of an Executive Agency, under the Agency Minister, is responsible for managing the Agency and is accountable to Government, the Parliament and the public in the same way as the Secretary of a Department or the head of a statutory agency (including preparing an annual report).

Expense Total value of all the resources consumed in producing goods and services.

Forward Estimates The estimated revenues, expenses and associated financial statements for the three outyears past the Budget year.

Liabilities What the agency 'owes' (obligations to make payments or render services as a result of past transactions).

Measure A decision by the Cabinet or the Prime Minister that has been finalised since the 2000-01 Budget and has resulted in a change in expenditure in the years 2001-02 to 2004-05.

Operating Result Equals revenue less expense.

Outcomes Results, impacts or consequences of actions by the Commonwealth on the Australian community. Planned outcomes are the results or impacts that the Government plans to achieve. Actual outcomes are the results or impacts actually achieved.

Output Groups The aggregation of outputs based on homogeneity, type of product or beneficiary target group. Aggregation may be needed for the provision of adequate information for performance monitoring; or based on a materiality test.

Outputs The goods and services produced by agencies on behalf of government for external organisations or individuals to meet planned outcomes. Outputs include goods and services produced for other areas of government external to the agency.

Performance The proficiency of an agency or authority in acquiring resources economically and using those resources efficiently and effectively in achieving planned outcomes.

Performance Measures A more precise measure than indicators. Performance measures relate to outcomes, outputs, third party outputs and administered items. They are used when there is a direct causal link between an intervention and a measurable change in performance.

Price The amount the government or the community pays for the delivery of agreed outputs.

Prescribed Agency An agency prescribed under the Financial Management and Accountability (FMA) Act, 1997. The entity receives its appropriation directly, is financially separate and has direct accountability to the Minister.

Quality Relates to the characteristics by which customers or stakeholders judge an organisation, product or service. Assessment of quality involves use of information gathered from interested parties to identify differences between user's expectations and experiences.

Quantity Size of an output. Count or volume measures. How many or how much.

Revenue Total value of resources earned or received in respect of goods and services provided.

Special Appropriation Moneys appropriated by Parliament in an Act separate to an annual Appropriation Act, where the payment is for a specified amount. Special appropriations are not subject to Parliament's annual budget control, unlike the annual appropriations.

Stakeholders People, organisations or groups with an interest or stake in the line of business.