Document ID: chunk:federal_register_of_legislation:F2016L01455:reg:31
Version: federal_register_of_legislation:F2016L01455
Segment Type: reg
Provision Reference: reg 31
Character Range: 20307–22767

31  Distribution of profits
 (1) The profits of the Board for a trading period are worked out according to the following formula:
where:
Expenditure is the expenditure, and provision for expenditure, properly chargeable against revenue.
Revenue is the revenue received or receivable in respect of that trading period.
 (2) The Board must distribute profits and other surplus funds not required for the future maintenance and operation of the Canteen Service:
 (a) at least once in each financial year; and
 (b) in accordance with principles approved by the Minister in writing.
 (3) Before distributing profits and other surplus funds, as required by subsection (2), the Board must ensure that such provision as the Board considers proper is made for:
 (a) the repayment of money borrowed by the Board under section 28; and
 (b) the Board's accrued or contingent liabilities; and
 (c) reserves; and
 (d) amounts required for allocation under subsection 27(2).
 (4) The principles approved by the Minister under paragraph (2)(b) must include the following principles:
 (a) the profits and other surplus funds distributed under subsection (2) are to be:
 (i) distributed to Army or Air Force units or bases; and
 (ii) applied for the provision of amenities, services and facilities at those units and bases for the benefit of members of the Army and the Air Force;
 (b) the amount of the profits distributed to an Army or Air Force unit or base in respect of a trading period is to be related, in the manner specified by the Minister, to the contribution that the trading profits of the canteens at that unit or base made to the total trading profits of the Canteen Service during that period;
 (c) the amount of the surplus funds, other than profits, distributed to an Army or Air Force unit or base in respect of a trading period is to be related, in the manner specified by the Minister, to:
 (i) the contribution that the trading profits of the canteens at that unit or base made to the total trading profits of the Canteen Service during that trading period; or
 (ii) the contribution that the sales of the canteens at that unit or base made to the sales of the Canteen Service during that trading period.
 (5) The Minister may approve principles for the purposes of paragraph (2)(b).
 (6) In this section:
trading period means such period as the Board determines having regard to principles approved by the Minister.

Subdivision B—Reporting requirements