Document ID: chunk:federal_register_of_legislation:F2022C01123:reg:27:p6
Version: federal_register_of_legislation:F2022C01123
Segment Type: reg
Provision Reference: reg 27 (pt 6/15)
Character Range: 54409–57563

(2) Amounts quarantined by the Department of Finance are administrative in nature and do not result in the loss of control of the appropriation by the entity. Consequently, there is no impact on recognition or disclosure of the appropriation for financial reporting purposes.
  37 Adjustments to appropriations

Guide to this section

The purpose of this section is to set out the different ways a legally appropriated amount to a reporting entity (e.g., through the Appropriation Acts or an Advance to the Finance Minister (AFM)) can be adjusted in the reporting period to result in the total appropriation available to the entity.

The adjustments below must be disclosed in the relevant appropriation disclosure note as well as being correctly accounted for in the primary financial statements.

The following are adjustments to appropriation receivable under the PGPA Act and must not be recognised as appropriation revenue:
       (a) PGPA Act section 74 (receipts of amounts by non-corporate Commonwealth entities);
       (b) PGPA Act section 75 (transfer of functions between non-corporate Commonwealth entities) prior year appropriation only; and
       (c) PGPA Act section 74A (recoverable GST for non‑corporate Commonwealth entities).

  Division 3 -  Departmental appropriations

Guide to this Division

The purpose of this Division is to set out the required recognition and reporting for departmental appropriations.

Departmental appropriations are appropriations that the reporting entity has control over to spend for the ordinary operating costs of the entity and typically include salaries, accruing employee entitlements and operational expenditure such as the purchase of goods and services.

  38 Departmental appropriations
  (1) Reporting entities must recognise all departmental appropriations (including departmental special appropriations) for which they are responsible.
  (2) The earliest point of recognition for accounting purposes is when the entity gains control of the appropriation, which is:
       (a) for loans specified in the Appropriation Acts - when drawn down from the Official Public Account (OPA) for the amount to be received;
       (b) for departmental special appropriations (except for special accounts) - when the obligation for which the special appropriation exists is incurred (up to the amount of the obligation);
       (c) for special accounts – when the entity receives cash from an external partner or transfers amounts from a departmental appropriation (but should not be recognised twice);
       (d) for Advance to the Finance Minister (AFM) or, for Parliamentary Departments, Advance to the responsible Presiding Officer - the commencement date of the determination;
       (e) for departmental supplementation - the date of the approval; and
       (f) for all other departmental appropriations specified in the Appropriation Acts - at the later of:
           (i) the commencement date of the Appropriation Act; and
           (ii) the commencement of the financial period the appropriation relates to (i.e., when the appropriation is effective).
  (3) Departmental appropriations (except