Part 4: Financial statements - Continued
Note 24: Appropriations
Note 24A: Acquittal of authority to draw cash from the Consolidated Revenue Fund (Appropriations) from Acts 1 and 3
Outcome 1 — Enhance the Commonwealth’s capacity to manage its net debt portfolio
FMA = Financial Management and Accountability Act 1997.
Act 1 = Appropriation Act (No.1) 2003-2004.
Act 3 = Appropriation Act (No.3) 2003-2004.
Outcome 1 — Enhance the Commonwealth’s capacity to manage its net debt portfolio
FMA = Financial Management and Accountability Act 1997.
Act 1 = Appropriation Act (No.1) 2002-2003.
Act 3 = Appropriation Act (No.3) 2002-2003.
Note 24B: Acquittal of authority to draw cash from the Consolidated Revenue Fund (Appropriations) from Acts 2 and 4
Outcome 1 — Enhance the Commonwealth’s capacity to manage its net debt portfolio
Act 2 = Appropriation Act (No.2).
Act 4 = Appropriation Act (No.4).
Note 24C: Acquittal of authority to draw cash from the Consolidated Revenue Fund – Special Appropriations (unlimited amount)
- Legal agreements executed between the Commonwealth and swap counterparties
(in the form of 1992 International Swap Dealers Association Master Agreements)
provide that where amounts would be otherwise payable in the same currency
and in respect of the same transaction by each party to the other, each
party’s obligation to make payment shall be automatically satisfied
and discharged and shall be replaced by an obligation upon the party by
whom the larger aggregate amount would have been payable, to pay the other
party the excess of the larger aggregate amount over the smaller aggregate
amount (that is, settlement of each transaction on a net basis).
Forward foreign exchange contracts with the RBA are transacted on the basis that where amounts would be otherwise payable in the same currency and on the same date by each party to the other, each party’s obligation to make payment is automatically satisfied and discharged and replaced by an obligation upon the party by whom the larger aggregate amount would have been payable, to pay the other party the excess of the larger aggregate amount over the smaller aggregate amount (that is, settlement of all transactions on a particular day on a net basis). All amounts in Note 24C are disclosed on an aggregate basis. - Due to uncertainty associated with the proportion of Commonwealth Government securities on issue and financial assets acquired for debt management purposes, the 2003-04 Budget financial statements disclose financial asset activity and debt issuance activity on a net basis.
- With the termination of cross currency swaps during 2003-04 (announced in August 2003) the volume of swap and forward foreign exchange contract activity was significantly higher than estimates made for the 2003-04 Budget.
- Amounts reported for 2003-04 relate to term deposit investments lodged with the Reserve Bank of Australia. The amounts reported for 2002-03 relate to programs for the repurchase of Commonwealth Government securities. Term deposit investments lodged with the Reserve Bank of Australia during 2002-03 are not disclosed (see Note 1.4).
Note 24D: Special accounts (Administered)
Debt Retirement Reserve Trust Account
- Legal Authority — Financial Management and Accountability Act 1997, section 21.
- Purpose — for the payment and receipt of moneys in accordance with the Financial Agreement Act 1994.
Note 25: Reporting of outcomes
Note 25A: Net cost of outcome delivery
Note 25B: Major departmental revenues and expenses by output group
Note 25C: Major classes of administered revenues and expenses by outcome
Note 26: Events occurring after reporting date
There have been no significant events occurring after reporting date that would materially affect these financial statements.
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