Recovering Expenses Incurred on Behalf of Third Parties

1.1 Purpose

The purpose of this procedure is to prescribe the formal process for the recoupment of expenses incurred by the Office in the provision of services to third party entities.

1.2 Effective Date

Approved by the Information Commissioner on 24 November 2011.

1.3 References

  • Australian Accounting Standards – AASB Revenue
  • Financial and Performance Management Standard (FPMS) 2009
  • Financial Accountability Handbook

1.4 Application

Section 17 of the FPMS enables the Accountable Officer of a statutory body to fix charges for services provided by the statutory body. Section 17 also requires the Accountable Officer to promptly identify, collect, manage and record information about revenue.

An agreement must exist between the Office and the user about charging for services.

In deciding charges for services the Accountable Officer must have regard to the total cost to the Office of providing the agreed service to the user, however may decide to charge a lesser amount if satisfied that this is appropriate.

User – means a person who uses the goods or services - FPMS s18(5).

Accountable Officer – means the Information Commissioner.

1.5 Charging Framework

Section 17 of the FPMS enables the Accountable Officer of a statutory body to fix charges for services provided by the statutory body. Section 17 also requires the Accountable Officer to promptly identify, collect, manage and record information about revenue.

An agreement must exist between the Office and the user about charging for services.

In deciding charges for services the Accountable Officer must have regard to the total cost to the Office of providing the agreed service to the user, however may decide to charge a lesser amount if satisfied that this is appropriate.

1.6 Identifying Information about Revenue

An agreement must exist between the Office and the user about charging for services. The agreement should include itemised details of specific expenses being recouped.

The Office will issue the user with an invoice (Appendix A (PDF, 23.01 KB)) for the agreed expenses being recouped. Invoice details are to be recorded in the Office’s Invoice Register.

1.7 Collecting Revenue

The Manager, Corporate and Executive Services is responsible for managing invoice issue, liaison and payment follow-up with user, and payment processing.If it is determined that an amount is uncollectable, it should be written off in a timely manner. Write-offs can only be authorised by the Accountable Officer.

1.8 Payment Processing

Recouped expenses must be credited as revenue in the Office’s general ledger account.