Section 4: Purchaser/provider and cost recovery arrangements

Purchaser/provider arrangements

The Australian Prudential Regulation Authority is not party to any cross agency purchaser/provider arrangements.

Cost recovery arrangements

Cost recovery arrangements have been negotiated with the large Authorised Deposit-Taking Institutions for services in relation to the implementation of the New Basel Capital Accord, in accordance with government cost recovery guidelines. While the final amounts have yet to be determined, the budgeted impact of this arrangement in 2004-05 is expected to result in revenue flows of the order of $1.9 million. Cost recovery arrangements are currently being negotiated with the Australian Bureau of Statistics and Reserve Bank of Australia for the provision of certain statistical services provided to them. Recoveries are estimated to be about $0.5 million for these services.

Cost recovery arrangements will be put in place for licensing of superannuation funds commencing in the year ending June 2005.

These costs are reflected in the Statement of Financial Performance (Table 3.1) as part of other revenue from ordinary activities.

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