The Australian Department of Finance manages the Program to ensure ‘Commonwealth List’ the accuracy, materiality and consistency of information disclosed in budget programs, including a central approvals process for modifying the program list. Table 4.1 Comparative MTEF Program Costing Practices: Summary of Responses Australia Austria Canada The Netherlands Does the finance Yes No Yes Not specified ministry issue Programs Policy and Policy on Approvals Process Management, program guidelines? Are Mandatory Resources and they Results Structures (PMRRS) and mandatory? Program Alignment Architecture (PAA) Not mandatory Yes No Yes Yes Is a program defined? Does Guidance for the Budget is organised PMRSS and PAA Accountable Preparation of on basis, Budgeting Reform: the finance ‘chapter’ Portfolio Budget with each chapter Budget is organised ministry issue program Statements (annually) specifying up to 5 on basis, ‘chapter’ specification outcomes with each chapter comprising guidelines? ‘policy’ and ‘non policy’ articles To assess financial To provide Determined by Not specified What is the purpose of impact of proposed support ‘implicit’ ‘purpose’: costing policy for the outcome - cost recovery - Assess the oriented impact - make-or-buy information? reasonableness of assessment process decisions - estimates decisions - Assess consistency - cost-benefit of costs with policy decisions - objectives costing of a new - Assess direct initiative impacts to other (incremental areas of expenditure funding) Does the finance Yes No Yes Not specified Not mandatory but Guide to Costing ministry issue guidelines on costing (2008) Not ‘conventional program must be mandatory template’ used for staffing and TBS Submission costing? Are they (such as Guide mandatory ‘on-costs’ mandatory? pensions and other (for submission of benefits) new spending initiatives) What Differentiated for: Not specified Range of methods Not specified - Departmental Items - Causal methodologies do costing (conventional costing relationships guidelines template [Cost = - Cost pools Quantity x Price] + - Standard costs and cover? wage index) fixed percentages - Administered Items
The Australian Department of Finance manages the ‘Commonwealth Program List’ to ensure the accuracy, materiality and consistency of information disclosed in budget programs, including a central approvals process for modifying the program list. Table 4.1 Comparative MTEF Program Costing Practices: Summary of Responses Australia Austria Canada The Netherlands Does the finance ministry issue program guidelines? Are they mandatory? Yes Programs Policy and Approvals Process Mandatory No Yes Policy on Management, Resources and Results Structures (PMRRS) and Program Alignment Architecture (PAA) Not mandatory Not specified Is a program defined? Does the finance ministry issue program specification guidelines? Yes Guidance for the Preparation of Portfolio Budget Statements (annually) No Budget is organised on ‘chapter’ basis, with each chapter specifying up to 5 outcomes Yes PMRSS and PAA Yes Accountable Budgeting Reform: Budget is organised on ‘chapter’ basis, with each chapter comprising ‘policy’ and ‘non policy’ articles What is the purpose of costing information? To assess financial impact of proposed policy - Assess the reasonableness of estimates - Assess consistency of costs with policy objectives - Assess direct impacts to other areas of expenditure To provide ‘implicit’ support for the outcome oriented impact assessment process Determined by ‘purpose’: - cost recovery - make-or-buy decisions - decisions - cost-benefit decisions - costing of a new initiative (incremental funding) Not specified Does the finance ministry issue guidelines on program costing? Are they mandatory? Yes Not mandatory but ‘conventional costing template’ must be used for staffing and ‘on-costs’ (such as pensions and other benefits) No Yes Guide to Costing (2008) Not mandatory TBS Submission Guide mandatory (for submission of new spending initiatives) Not specified What methodologies do costing guidelines cover? Differentiated for: - Departmental Items (conventional costing template [Cost = Quantity x Price] + wage index) - Administered Items Not specified Range of methods - Causal relationships - Cost pools - Standard costs and fixed percentages Not specified
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