Funding
General information
Criteria for access to industry funds
Extract of the National Residue Survey Administration Act 1992
Although the legislation does not require any industries to participate in National Residue Survey (NRS) testing programs, several need to do so in order to meet requirements for market access or export certification, or to satisfy obligations under Australian Standards for domestic markets.
The costs of NRS programs are met by industry levies and the community service obligation appropriation of the government. Also, some industry groups elect to fund NRS directly (under either contract or memorandum of understanding) to undertake random residue monitoring or laboratory performance evaluation and proficiency testing. The Department of Agriculture, Fisheries and Forestry's (DAFF) Levies Revenue Section coordinates the collection of levies across the Department on a fee-for-service basis.
Levy rates are established in consultation with participating industries in accordance with the Australian Government’s Levies Principles and Guidelines: Policy for the Management of New and Amended Levies within Australia. To ensure equity, levies are held in the NRS Special Account and are accounted for on an industry-by-industry basis within industry equalisation accounts (IEAs).
All NRS revenue is held within the NRS Special Account (for further details, see the Financial Statements within the current NRS Annual Report).The NRS Special Account fulfils the purposes of the Financial Management and Accountability Act 1997, and is established under the National Residue Survey Administration Act 1992 Section 6(2) and Subsection 5(3) of the Financial Legislation Amendment Act 1999. Payments from this Special Account may be spent in monitoring and reporting the level of residues and environmental contaminants in applicable products, tracing and determining the sources and causes of these contaminants, and in investigating and preventing such residues and contaminants.
Residue testing projects for applicable products can be implemented only if the relevant body in the industry (as determined by the Minister) agrees to the projects. NRS is accountable to Parliament as well as to participating industries because of the legislative base for its funding and operation.
NRS funds are managed in accordance with the National Residue Survey Administration Act 1992 and the Financial Management and Accountability Act 1997. Each participating industry is consulted annually on the level of IEA it wishes to maintain, with the aim of providing for contingencies while at the same time making the best use of industry funds. Tendering and contractual arrangements for the supply of services, particularly analytical testing, are managed in accordance with Australian Government’s Commonwealth Procurement Guidelines.
Criteria for access to industry funds
Background
Funds collected from industry levies are accounted for in separate IEAs within the NRS Special Account. The basis under which payments can be made from the NRS Special Account is prescribed in the National Residue Survey Administration Act 1992 (the Act).
Access to funds for random, targeted and compliance testing
Under the Act, the basis for access to levy-generated funds for random monitoring programs, targeted testing programs and production system input testing is clearly articulated under Sections 8(1)(a)(i), (ii) and (iii) of the Act - as shown in the extract that follows).
Access to funds for activities related to residue testing
Section 8(1)(a)(iv) of the Act allows for the use of funds for residue-related activities that are not specifically defined, but which also must be agreed to by the relevant peak industry body. The basis for access to levy funds within IEAs is not clearly articulated under this Section.
Criteria for the release of IEA funds within the NRS Special Account
The following set of criteria must be fulfilled when industry representatives apply for the funding of residue-related projects from their IEA under Section 8(1)(a)(iv) of the Act.
- Demonstration of a clear and direct relationship between the activities to be undertaken and residue/contaminant measurement, prevention or management.
- Demonstration of a direct relationship between the intended program and the purpose for which funds were raised (eg. if a levy has been raised for testing meat, then that levy cannot be used to test pelt/skin).
- Demonstration of full support of the proposed activity by levy providers.
- Provision of full accountability for all approved funds. Such accountability entails:
(a) provision, in advance, of a full schedule of intended activities, including costings and timelines against each activity, and
(b) a full acquittal of expenditure for each activity, endorsed by the peak body.
Note: Where an activity is only partially relevant to the purposes outlined under Section 8(1)(a)(iv) of the Act, funding will apply in proportion to the relevance of the activity.
Extract of the National Residue Survey Administration Act 1992
Section 8: Payments out of the National Residue Survey Special Account
(1) Amounts standing to the credit of the IEA may be spent in:
(a) making payments, in accordance with an expenditure program approved by the Minister, for purposes related to:
(i) the monitoring and reporting of the level of contaminants in applicable products; and
(ii) if the relevant body (as determined by the Minister) in the industry concerned agrees to the program extending to expenditure under this subparagraph—the testing, either on a random basis or in specific cases, of applicable products or the environment for the purpose of tracing the sources of contaminants and determining the causes of contamination; and
(iii) if the relevant body (as determined by the Minister) in the industry concerned agrees to the program extending to expenditure under this subparagraph—the testing and reporting of the level of contaminants in applicable products or the environment, and any associated activities, for the purpose of investigating the potential sources, and determining the potential causes, of such contaminants; and
(iv) if the relevant body (as determined by the Minister) in the industry concerned agrees to the program extending to expenditure under this subparagraph—the prevention of contamination in, and the management of risks associated with, contamination of applicable products; and
(b) making payments to the Commonwealth of amounts equal to expenditure incurred by the Commonwealth in relation to:
(i) the collection and recovery of amounts referred to in paragraph 7(a) or (b); or
(ii) the administration of paragraph 7(a) or (b); or
(iii) the carrying out of any activities of kinds referred to in paragraph (a) or any related activities; and
(c) if an amount that was paid into the IEA was given by a person or body to the Commonwealth for a particular purpose but has not been fully spent for that
purpose—repaying the unspent amount to the person or body; and
(d) if an amount that was paid into the Reserve was appropriated by the Parliament for the purposes of the Reserve on condition that the amount be repaid—repaying the amount.
(2) Without limiting the generality of subsection (1), the reference in that subsection to expenditure incurred includes a reference to:
(a) remuneration and allowances paid to staff; and
(b) other expenditure incurred in relation to the provision of staff or the provision of the services of staff; and
(c) expenditure incurred in relation to surveys conducted for the purpose of monitoring the level of contaminants; and
(d) expenditure incurred in relation to the provision of accommodation or administrative support.
For further information contact the NRS Funding Manager.
Phone (02) 6272 5209
Fax: (02) 6272 4023