aust-bird-bat-banding-scheme by lanyuehua

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									Australian Bird and Bat Banding Scheme

 COST RECOVERY IMPACT STATEMENT
    January 2012 – December 2013




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2011 CRIS for the Australian Bird & Bat Banding Scheme




Version Control


 Version    Author                     Date              Comments
                                                         Initial draft for review by Department of
 0.1                                                     Finance and Deregulation (Finance)

                                                         Update following review by Finance
 0.2
                                                         Update following receipt of revised data
 0.3
                                                         Update after 2nd Review by Finance
 0.4
                                                         Certified by Chief Executive Officer of Agency
 0.5
                                                         Agreed by Minister
 1.0




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2011 CRIS for the Australian Bird & Bat Banding Scheme

Table of Contents

1.     OVERVIEW
       1.1      Purpose
       1.2      Background
       1.3      Australian Government Cost Recovery Policy

2.     POLICY REVIEW – Analysis of Activities
       2.1      Policy Authority
       2.2      Legal Requirements for the Imposition of Charges
       2.3      Description of Cost Recovery Activities
       2.4      Users and Stakeholders
       2.5      Conclusion

3.     DESIGN
       3.1      Design of the Cost Recovery Arrangement
       3.1      Basis of Charging – Fee


4.     COST RECOVERY MODEL
       4.1      Cost Recovery Activities
       4.2      Costs Components
       4.3      Changes in Cost Base
       4.4      Volume and Demand Assumptions
       4.5      Summary of Charging Arrangements

5.     PROJECTED EXPENSES AND REVENUE FOR THE CRIS
       5.1      Projected Expenses and Revenue

6.     MONITORING MECHANISMS
       6.1      Monitoring Mechanisms
       6.2      Stakeholder Consultation
       6.3      Periodic Review

7.     CERTIFICATION




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2011 CRIS for the Australian Bird & Bat Banding Scheme

1.     OVERVIEW

1.1    Purpose

This Cost Recovery Impact Statement (CRIS) is prepared following the Department of
Sustainability, Environment, Water, Population and Communities’ (the Department) 5-year
review of cost-recovery arrangements in accordance with the Australian Government’s Cost
Recovery Policy.

The purpose of this CRIS is to demonstrate the Department’s compliance with the Australian
Government’s Cost Recovery Guidelines in relation to the Australian Bird and Bat Banding
Scheme.

1.2    Background

The Australian Bird & Bat Banding Scheme (ABBBS) was established in 1953 by the CSIRO to
collect information and support bona fide research on the movements and life histories of
Australian birds and bats. The responsibility for the program was transferred to the
Commonwealth’s Environment portfolio in 1984. It is one of the longest running continuous
wildlife monitoring programs in Australia. The data held by the ABBBS supports decisions of
National Environmental Significance (NES) under the Environment Protection and Biodiversity
Conservation (EPBC) Act 1999, and is one of the few environmental datasets owned by the
Commonwealth.


1.3    Australian Government Cost Recovery Policy

In December 2002, the Australian Government adopted a formal cost recovery policy to
improve the consistency, transparency and accountability of its cost recovery arrangements
and promote the efficient allocation of resources. The underlying principle of the policy is that
agencies set charges to recover all the costs of a product or service where it is efficient and
effective to do so, where the beneficiaries are a narrow and identifiable group and where
charging is consistent with Australian Government policy objectives. The Cost Recovery Policy
is administered by the Department of Finance and Deregulation and is detailed in the
Australian Government Cost Recovery Guidelines (Cost Recovery Guidelines).

The policy applies to all Financial Management and Accountability Act 1997 (FMA Act) agencies
and to relevant Commonwealth Authorities and Companies Act 1997 (CAC Act) bodies that
have been notified. In line with the policy, individual portfolio ministers are ultimately
responsible for ensuring agencies’ implementation and compliance with the Cost Recovery
Guidelines.

The Australian Government Cost Recovery Guidelines and the accompanying Finance Circular
can be found at:

http://www.finance.gov.au/financial-framework/financial-management-policy-guidance/cost-
recovery.html


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2011 CRIS for the Australian Bird & Bat Banding Scheme




2.     POLICY REVIEW - ANALYSIS OF ACTIVITIES

2.1    Policy Authority

In 2011, the Department refreshed the policy authority for activities within the Australian Bird
and Bat Banding Scheme on a cost recovery basis consistent with the Government’s Cost
Recovery Policy.

2.2    Legal Requirements for the Imposition of Charges

The introduction of ABBBS annual accreditation fees was approved by the Chief Executive
Officer of the Australian Nature Conservation Agency (ANCA) in 1996. The activities of the
ABBBS are now considered to be a function of the Environment portfolio and its
responsibilities for migratory species under the EPBC Act.

It appears that the policy authority to collect fees for the ABBBS may have lapsed with the
transfer of the ANCA to the Federal Environment Department in 1999. The activity is currently
regarded as a discretionary activity under the Commonwealth’s executive powers.

To strengthen the legal authority for this cost recovery arrangement, the Department is
exploring options to develop a legislative basis for this activity, including the possibility of
incorporating this provision within the Environment Protection and Biodiversity Conservation
Act 1999 (the EPBC Act).


2.3    Description of Activities

The Marine Division of the Department manages the ABBBS as part of its responsibilities for
avian migratory species. The program involves the accreditation of members of the public to
conduct banding, as well as the provision of banding equipment to authorized persons, data
management and project coordination functions.

Prior to participating in the program, members of the public who wish to operate as banders
are required to demonstrate appropriate skills and experience to gain accreditation.
Accreditation currently attracts an annual payment of $54.25 (inclusive of GST, or $49.32 ex-
GST) per year. Banding equipment is supplied free of charge as it remains property of the
Commonwealth, and on the expectation that banders will provide information gained from
banding to the Departments database. This information is used for decisions of NES under the
EPBC Act, meeting international treaty reporting requirements, policy development and
wildlife monitoring within Government as well as by researchers and the community.

Table 1:      Summary of Activities
Ref        Activities                                     User/Beneficiary
1.1        Application processing and Renewals            Non-government
2.1        Issuance of Bands                              Government (Commonwealth)
3.1        Services to State and Territory Governments    Government


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2011 CRIS for the Australian Bird & Bat Banding Scheme

2.4    Users and Stakeholders

The main stakeholders are the registered banders in the ABBBS, who receive an individually
identifiable service from the ABBBS in the form of accreditation. The Commonwealth
Government is a stakeholder as the recipient of the research data provided by Authorised
Banders. State and Territory governments are stakeholders, as they will only issue Banding
Licences to individuals who are accredited by the Department.

2.5    Conclusion
This review has identified that activities within the ABBBS are suitable to be cost recovered
and there is appropriate policy authority from Government to cost recover these activities. The
ABBBS activities comply with the Australian Government’s Cost Recovery Guidelines.


3.     DESIGN


3.1    Design of Cost Recovery Arrangement

The Department charges an application fee for the issue or renewal of a ‘Banding Authority’. A
Banding Authority entitles the holder to apply for a license from the State/Territory
governments to band birds. A State/Territory will not issue a license unless the applicant has
first obtained a Banding Authority. The activity represents a joint service to the
States/Territories in the form of pre-licensing approvals and to the Authority holders in the
form of an approval authority, thus negating the need for the States and Territories undertake
the assessment.

The Department’s activities involve determining whether the applicant has appropriate skills
and experience to conduct the activities. The ABBBS operates in close collaboration with the
State and Territory agencies to provide the overall research support service. The services
provided to the States and Territories are not cost recovered. The Department is currently
budget funded for this activity.

The Department is also Budget funded for the cost of bands (approximately $22,000 per
annum) as it maintains ownership of them. Bands are uniquely numbered and are the only
recognized bird and bat band for bona fide wildlife research within Australia.

Table 2:       Activity expenses
Ref        Activity Name                          Activity expense- 2012   Activity expense- 2013
1.1        Application processing and Renewals    $25,500                  $27,270
2.1        Issuance of bands                      $22,000                  $22,000
3.1        Services to State and Territory        $33,500                  $33,730
           Governments

The Commonwealth benefits from the current arrangements through the research data
provided by Authorised Banders (and therefore license holders). This is the main source of



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2011 CRIS for the Australian Bird & Bat Banding Scheme

data for the Australian Bird and Bat Banding Scheme database, with approximately 0.5% of
data being supplied by members of the public (that is, not authorised banders).

Applications of a banding authority average approximately 50 per annum, and a constant pool
of approximately 550 authorised banders exists at any one point in time.

3.2    Basis of Charging – Fee

Fees – A fixed charge has been considered most appropriate given that the accreditation
process is a relatively standard activity for all applicants.

It should be noted that an ‘application fee’ applies to both application for new banding
authorities, as well as applications to renew authorities. The procedures involve the same
steps and processes and are charged at the same rate.



4.     COST RECOVERY MODEL

4.1    Cost Recovery Activities

       Table 3: List of Cost Recovery Activities and associated Charges
Ref   Activity Name       Description                                 Charge Title        Funding Type
1     Processing costs    Expenses associated with the processing     Application Fee     Cost recovery.
      of an application   an application for a new or renewed
      for a new or        banding authority.
      renewed banding
      authority*
2     Issuance of bands   Material costs associated with the bands,   N/A - non cost      Budget funded.
                          approximated at $22,000 per annum           recovery activity
3     Services to         Costs associated with the assessing and     N/A - non cost      Budget funded.
      State/Territory     determining whether the applicant has       recovery activity
      Government on       appropriate skills and experience to
      pre-licensing       conduct the banding activities before an
      activities          authority can be issued


*There is little difference in processes for new applications compared to renewing banders as
far as chargeable costs are concerned. The same charge is applied for both and they should be
considered to be the same process with respect to charges applied. A summary of the costings
for this process is presented at table 2.

Please note the last two activities are not cost recovery activities, and are fully funded by the
Department. The details of costing are also presented here to differentiate the funding sources
from the first activity.




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2011 CRIS for the Australian Bird & Bat Banding Scheme

       Table 4:      Activity Costings

                                            2012      2013
 Ref Activity Name                          $’000     $’000
  1   Processing costs of an application.
      Direct salary costs*                  25.5      27.27
  2   Issuance of bands
      Direct material costs                22           22
      Services to State/Territory government on pre-licensing
  3   activities
      Direct salary costs*                  33.5      33.73

* Based on average hourly rate for APS4 & APS6 at 2010 Enterprise Agreement rates.

4.2    Cost Components

The only cost components that are cost recoverable are the salary components for the officers
performing the task. This figure is presented in tables 2 & 5. Note that database costs, and
supply of bands are considered to be core responsibilities of the Department, so therefore are
not cost recoverable.


4.3    Volume and Demand Assumptions

It is anticipated that there will be, on average, 535 processes per year in 2012 and 2013. The
number of processes per year is based on historical data. The number of new enrolments
generally matches the number of resignations in any given year. There is a constant pool of
approximately 535 banders who either make a new application or are required to apply for
renewal of their banding authority each year. The historical data are provided below in table 3:

       Table 5:           Summary of historical data
                          Year           2008          2009           2010
                        Existing          527           538            534
                        Banders
                      New                  60           45              57
                      enrolments
                      Resignations         49           49              58
                      Total Fee           538           534            533
                      paying
                      banders
                Note: The 2011 data has not been presented in the above table as it is being collated at
                the time of preparation of this CRIS.




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2011 CRIS for the Australian Bird & Bat Banding Scheme

4.4      Summary of Charging Structure

       Table 6:        Cost Recovery Fee
                                                            Total Cost                                         Total Cost
                                                            of Activity   Total volume                         Recovered
                                            Method
                                                             in 2012      of Activity in    Cost Recovery     for Activity
                  Activity Name                of
                                                            and 2013        2012 and           Charge         in 2012 and
                                            Recovery
                                                                              2013                                2013
                                                             ($’000)
                                                                                                                 ($’000)
        1.1        Processing costs of an   Fee for           52.77          1070          $49.32/authority          52.77
                   application.             service                        processes
                                                                                               TOTAL                52.77




5.       PROJECTED EXPESNES AND REVENUE FOR DURATION OF CRIS

5.1      Projected Expenses and Revenue


       Table 7: Projected Expenses and Revenue
                                                                  2012            2013
 Ref   Activity Name                                             $’000            $’000
 1     Processing costs of an application (cost recovery)
       Expenses*                                                  25.5            27.27
       Revenue                                                    25.5            27.27
       Balance +/-                                                  0               0
 2     Issuance of bands (Budget funded)
       Expenses                                                    22              22
       Budget Funding                                              22              22
       Balance +/-                                              0               0
       Services to State/Territory government on pre-licensing activities (Budget
 3     funded)
       Expenses*                                                  33.5            33.73
       Budget Funding                                             33.5            33.73
       Balance +/-                                                  0               0
* Salary expenses include provision for 3% p.a. increase in line with Enterprise Agreement.



6.       ONGOING MONITORING

6.1      Monitoring Mechanisms

The program managers within the Department maintain regular contact with the accredited
persons and potential applicants. This allows for ongoing monitoring of the appropriateness of
the arrangements in place and enables pricing to reflect demand management objectives.



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2011 CRIS for the Australian Bird & Bat Banding Scheme

6.2    Stakeholder Consultation

The Program managers within the Department maintain regular contact with the accredited
persons and potential applicants. This allows for ongoing monitoring of the appropriateness of
the services provided and the fee levels. Feedback from banders has indicated that significant
increases to the cost of banding would not be acceptable to some current participants, and
may interfere with the operation of the program. However, it was noted that with the
introduction of the charge, there was a drop-off of applications from less committed banders.
It is anticipated that the main stakeholders in this program would be consulted prior to any
substantive change to this charge.


6.3    Periodic Review

The ABBBS cost recovery arrangement will be reviewed over the next two years, in line with
amendments to the EPBC Act, in accordance with the Australian Government Cost Recovery
Guidelines. This review will result in implementation of a new CRIS by 1 January 2014.




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2011 CRIS for the Australian Bird & Bat Banding Scheme

7.     CERTIFICATION


I certify that this CRIS complies with the Australian Government Cost Recovery Guidelines.




[Signed 13/1/2012]
Malcolm Thompson
A/g Secretary
Department of Sustainability, Environment, Water, Population and Communities

Date: 13 January 2012




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