CEI 4.4 Cost Recovery

1. Scope of these instructions

These Chief Executive's Instructions (CEI) set out the principles by which the Department of Agriculture, Fisheries and Forestry (the department) will recover the costs of some products and services via charges (fees and taxes).

The Cost Recovery Policy is related to this CEI, both of which are mandatory and must be followed by all officials.

2. Policy principles

The department's cost recovery arrangements will comply with Australian Government policy, including the government's Cost Recovery Guidelines.

All officials engaged in cost recovery will:

• ensure that arrangements have clear legal authority and are supported by a high standard of supporting documentation and financial modelling
• exercise good judgment and adhere to the Cost Recovery Policy
• seek consistency and better practice in applying cost recovery processes and tools across the department
• maintain transparency of arrangements and high levels of communication with stakeholders
• ensure the efficient use of Commonwealth resources.

If proposed new business activities or changes to business activities have implications for cost recovery arrangements,
the business case will disclose this to decision-makers.

Proposals for new or amended charges are to be submitted to the secretary via the Chief Finance Officer (CFO), and the portfolio minister for approval and, when approved, recorded in relevant systems as required for billing and corporate reporting.

Revenue from fees and taxes, including levies, will be treated according to the Australian Accounting Standards and the Finance Minister's Orders for the financial statements.

3. Target audience

This CEI applies to all officials (as defined in the 'Definitions' section) in the department.

4. Departmental instructions

4.1. Responsibilities

Chief Finance Officer

• is responsible for implementing and advancing the department's cost recovery framework and will issue and maintain
  a cost recovery policy.
• will review and provide advice on all proposals for new or amended charges and Cost Recovery Impact Statements before they are submitted to the secretary.

Executive Managers

Executive managers are responsible for cost recovery arrangements in their divisions and will ensure that:

• proposals for new or amended charges and Cost Recovery Impact Statements are prepared in line with the Cost Recovery Policy and are provided to the CFO for review, and the secretary and minister for approval
• cost recovery arrangements are reviewed in accordance with their approved review cycle, ensuring the minister is advised 12 months in advance of any proposed changes to charges
• the performance of cost recovery arrangements is reported to the Executive Management Team under standing processes for divisional performance reporting
• any instances of non-compliance with the Australian Government Cost Recovery Guidelines are reported through the Certificate of Compliance process, and appropriate action is taken to address them
• Cost Recovery Impact Statements, fee and tax schedules are published on the department's website
• public resources are employed efficiently and effectively in delivering services.

Further information on roles and responsibilities can be found in the Cost Recovery Policy.

4.2. Reporting

• Cost Recovery Impact Statements, fee and tax schedules will be published on the department's website.
• Compliance with the guidelines will be reported in the annual Certificate of Compliance.
• All cost recovered revenues will be separately identified in the monthly and annual financial statements and Portfolio Budget Statements.

5. Breaches

Officials are bound by section 13 of the Public Service Act 1999 (section 13 Code of Conduct), section 44 of the
Financial Management and Accountability Act 1997 and Commonwealth Procurement Guidelines to use Commonwealth resources in an efficient, effective and ethical manner. Officials who do not comply with this CEI may be found to be in breach of these requirements and sanctions may apply.

6. References

6.1. Legislation

• Financial Management and Accountability Act 1997
• Financial Management and Accountability Regulations 1997
• Quarantine Act 1908
• AQIS legislation

6.2. Internal guidance/instruction

• Cost Recovery Policy
• Cost Allocation Policy
• Quarantine and export fees and charges

6.3.External guidance/instruction

• Finance Circular 2011/05 – Chief Executive's Instructions
• Australian Government Cost Recovery Guidelines

7. Definitions and acronyms

Change History