and is required to be settled prior to the May 2012 Budget. The actual amount of appropriation in the forward years will be affected by the resource agreement once finalised and will depend on emerging trends in numbers of personal insolvencies. There are three components to departmental funding: ITSA’s Funding for cost activities based on fees and charges raised; – Variable funding provided by the Government where full cost recovery cannot – be achieved, and the cost of activities are directly linked to changing bankruptcy activity; and Fixed funding provided by the Government to cover overheads and – administration of Proceeds of Crime activities. In prior years, Other Agency Receipts have mainly been received from three sources: reimbursement of funds lent to the Official Trustee, receipts from the sale of bankruptcy data, and proceeds from the sublease of office space to the Department of Infrastructure and Transport in Hobart. Other Agency Receipts do not include fees and charges returned to the Consolidated Revenue Fund. The significant increase in Other Agency Receipts from 2011-12 onwards is a result of the imminent introduction of the PPSR. ITSA will receive fees and charges for registrations, searches and other functions relating to the PPSR. These fees and charges include an allowance for the future replacement of personal property securities assets, as well as an allowance for the repayment of funding provided in the 2010–11 and 2011–12 Budgets to finalise the establishment of the PPSR. That funding was provided on the basis that it will be repaid over the first three years of operation of the PPSR. It is important to note that the estimates in the table above are based on a launch date of October 2011. As the launch has been delayed until early 2012, Other Agency Receipts for 2011-12 are likely to be lower than forecast and the timeframe for repaying the budget for the PPSR will be pushed out. Financial Viability: Actual operating results Actual operating results for the 2008-09 to 2010-11 financial years (based on annual reports) are as follows: Table A13.3: ITSA current operating results Actual (‘000) 08-09 09-10 10-11 Actual Operating Results 52 135 -3,450 The 2008-09 and 2009-10 operating results are not directly comparable with 2010-11. The earlier figures include depreciation funding and expenses. Due to the introduction of Departmental Capital Budgets in 2010-11, the Review has excluded depreciation expenses from the operating result for that year to provide a clearer picture of funding against operating expenses.
and is required to be settled prior to the May 2012 Budget. The actual amount of appropriation in the forward years will be affected by the resource agreement once finalised and will depend on emerging trends in numbers of personal insolvencies. There are three components to ITSA’s departmental funding: Funding for cost activities – based on fees and charges raised; Variable funding – provided by the Government where full cost recovery cannot be achieved, and the cost of activities are directly linked to changing bankruptcy activity; and Fixed funding – provided by the Government to cover overheads and administration of Proceeds of Crime activities. In prior years, Other Agency Receipts have mainly been received from three sources: reimbursement of funds lent to the Official Trustee, receipts from the sale of bankruptcy data, and proceeds from the sublease of office space to the Department of Infrastructure and Transport in Hobart. Other Agency Receipts do not include fees and charges returned to the Consolidated Revenue Fund. The significant increase in Other Agency Receipts from 2011-12 onwards is a result of the imminent introduction of the PPSR. ITSA will receive fees and charges for registrations, searches and other functions relating to the PPSR. These fees and charges include an allowance for the future replacement of personal property securities assets, as well as an allowance for the repayment of funding provided in the 2010–11 and 2011–12 Budgets to finalise the establishment of the PPSR. That funding was provided on the basis that it will be repaid over the first three years of operation of the PPSR. It is important to note that the estimates in the table above are based on a launch date of October 2011. As the launch has been delayed until early 2012, Other Agency Receipts for 2011-12 are likely to be lower than forecast and the timeframe for repaying the budget for the PPSR will be pushed out. Financial Viability: Actual operating results Actual operating results for the 2008-09 to 2010-11 financial years (based on annual reports) are as follows: Table A13.3: ITSA current operating results Actual (‘000) 08-09 09-10 10-11 Actual Operating Results 52 135 -3,450 The 2008-09 and 2009-10 operating results are not directly comparable with 2010-11. The earlier figures include depreciation funding and expenses. Due to the introduction of Departmental Capital Budgets in 2010-11, the Review has excluded depreciation expenses from the operating result for that year to provide a clearer picture of funding against operating expenses.
strategic_review_ag.docx