Document
Index
Portfolio Budget Statements
Australian Prudential Regulation Authority
|
Document
Index |
|
|
The map on the following page shows the relationship between Government outcomes and the contributing outputs for the Australian Prudential Regulation Authority. Financial detail for Outcome 1 by output appears in Table 2.2 while non-financial information for Outcome 1 appears in Table 2.3.
|
|||||
|
|||||
 |
|||||
|
|||||
|
|||||
|
|||||
 |
|||||
|
|
|
|||
Enhancement of public confidence in Australia's financial institutions through a
framework of prudential regulation which balances financial safety and efficiency,
contestability and competitive neutrality.
Table 2.1 shows the relationship between the programme structure for 1998-99 and the new
outcome structure for the 1999-2000 Budget for Outcome 1.
Table 2.1: Relationship between Programme and Outcome Structure for Outcome 1
| Programme Management Budgeting | Accrual Budgeting |
| Programme 7 -- Australian Prudential Regulation Authority | Outcome 1 To enhance public confidence in Australia's financial institutions through a framework of prudential regulation which balances financial safety, efficiency, competition, contestability and competitive neutrality |
| Sub-programmes No sub-programmes |
Output Groups Output Group 1.1 -- Australian Prudential Regulation Authority |
| Appropriations
for Programme 7 Appropriation Bill 1 Running costs, including Section 31 receipts (677-1) |
Appropriations for Outcome 1 Output Group 1.1
Outcome 1 |
Table 2.2 shows how the 1998-99 appropriation and programming structure relates to
total resourcing for planned Outcome 1.
Table 2.2: Total Resources for Outcome 1
| Estimated Actual | Estimated Actual | Budget |
|
| 1998-99 CASH $'000 |
1998-99 ACCRUAL $'000 |
1999-00 $'000 |
|
| Price of Agency Outputs Output Group 1.1 -- Australian Prudential Regulation Authority |
|||
| Output 1.1.1 -- Policy Development | 3,200 | 3,100 | 3,100 |
| Output 1.1.2 -- Surveillance Programmes | 53,166 | 42,017 | 52,733 |
| Output 1.1.3 -- Financial Advice | 780 | 708 | 705 |
| Appropriation
Structure 1998-99 (a) Program 7 -- Australian Prudential Regulation Authority |
|||
| Subtotal Output Group 1.1 | 57,146 | 45,825 | 56,538 |
| Revenue from Government (Appropriation) for Agency Outputs | 61,583 | 45,425 | 54,120 |
| Revenue from Other Sources | - | 3,163 | 1,008 |
| Total Price of Outputs | 57,146 | 45,825 | 56,538 |
| Total for Outcome 1 | 57,146 | 45,825 | 56,538 |
| 1998-99 | 1999-00 | |
Staff Years (Number) |
378 | 446 |
The outputs of APRA aim to enhance public confidence in Australia's financial
institutions through a framework of prudential regulation which balances financial safety
and efficiency, competition, contestability and competitive neutrality.
The outputs involve formulation and promulgation of prudential policy and practice to be
observed by regulated institutions; effective surveillance and compliance programs and,
where relevant, remediation or enforcement measures, to give effect to the laws
administered by APRA and to standards issued under those laws; and advice to Government on
the development of regulation and legislation affecting regulated institutions and the
financial markets in which they operate.
| Table 2.3: Performance Information 1999-2000 | |
| Performance Information for Agency Outputs | |
| Output Group 1.1 -- Australian Prudential Regulatory Authority | |
| Output 1.1.1 -- Policy Development | Issuance of prudential standards,
guidelines and like instruments which effectively address risk management exposures of
regulated industries; Comprehensive consultation with industry bodies, regulated institutions and professional associations on the development and implementation of prudential policy; Effective communication and cooperation with relevant national and international agencies including participation in the international development and harmonisation of prudential regulation policy and practice; and Promotion of public understanding of the role of APRA and informed debate on issues relating to prudential supervision through the publication of discussion papers, statistics and other relevant information. |
| Output 1.1.2 -- Surveillance Programmes | Prevention of financial loss by
depositors or policy holders resulting from the failure of regulated institutions to
observe laws, regulations or prudential standards administered by APRA; The identification of emerging prudential risks within regulated institutions through programs of inspection and off-site surveillance and the supervision of remedial actions to effectively manage such risks; and The exercise by APRA of formal enforcement powers where necessary to protect the interests of depositor, policy holders, superannuation fund members or the public interest generally (including powers to issue directions, disqualify persons from positions of management or trust, transferring engagements, withdrawing licenses, or initiating prosecutions). |
| Output Group 1.1.3 -- Financial Advice | Regular liaison meetings with the
Department of the Treasury and, as requested, with relevant Ministers and Parliamentary
Committees; Recommendations to Government on prudential regulation policy development involving legislative implementation (including amendments to all Acts of Parliament administered by APRA and regulations thereunder); Timely briefings to Government on major items of policy interest emerging from APRA participation in international forum; and Maintenance of a memorandum of understanding with the Department of the Treasury. |
The results of evaluations will be reported in APRA's Annual Report.
