Section 2: Outcomes and outputs information
Outcomes and output groups
The map below shows the relationship between Government outcomes and the contributing outputs for the Australian Prudential Regulation Authority (APRA). Financial detail for Outcome 1 by output appears in Table 2.1 while non-financial information for Outcome 1 appears in Table 2.2.
Map 2: Outcomes and output groups
Output cost attribution
Outputs are priced by costing the time allocated to work carried out on policy development, surveillance programmes and prudential advice. The costs attributed to outputs are collected in cost pools for direct cost with associated allocated overheads. Support costs are allocated through the apportionment of unallocated time in the same ratio as direct costs.
Changes to outcomes and outputs
There are no proposed changes to the outcome or outputs.
Trends in resourcing across outcome
There is only one outcome. The price of the outcome has risen from $45.4 million in 1998-99 to $68.6 million for 2003-04. Within this period, the outcome has been expanded to include the State based Financial Institutions scheme and to encompass the supervision of new risks in the financial system.
Outcome 1 - Description
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.
Measures affecting Outcome 1
Australian Prudential Regulation Authority - strengthened capabilities in prudential regulation
The Government will provide $21.9 million over four years (with ongoing funding subject to review by October 2006) to enable the Australian Prudential Regulation Authority to employ additional technical experts and attract and retain appropriately skilled front-line supervisory staff to enhance its supervisory and information technology capabilities.
Funding will be fully recovered through levies on the financial sector.
See also the related revenue measure titled Australian Prudential Regulation Authority - strengthened capabilities in prudential regulation in the Treasury portfolio.
Outcome 1 - Resourcing
Table 2.1 shows how the 2003-04 appropriations translate to total resourcing for Outcome 1, including revenues from government (appropriations), revenue from other sources, and the total price of outputs.
Table 2.1: Total resources for Outcome 1
(1) C1 and E1 show the links back to Table 1.1.
Outcome 1 - Contribution of outputs
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 programmes 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.
Performance information for Outcome 1
Table 2.2: Performance information for Outcome 1
Table 2.2: Performance information for Outcome 1 (continued)
Evaluations
Performance will be measured on a quarterly basis through an integrated programme of business planning, measurement and reporting. The business plan is expressed through six key results areas (KRAs), three of which represent the outputs described in Table 2.2 plus three KRAs covering staff, infrastructure and accountability.
Feedback will be sought from key stakeholders on a regular basis on the effectiveness of policy and prudential advice.
The performance of surveillance programmes is evaluated both internally through the measurement processes, by the Quality and Consistency Group and internal audit, and externally through industry consultation on a periodic basis.