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Reorganisation of Appropriations for Policy Advice: Guide for Departments

Annex 3: Letter to the Minister of Finance Seeking Approval for Appropriation Changes

Annex 3 is also available as a word document: rapa-annex3.doc.

The following template should be used by departments for the letter to the Minister of Finance seeking joint Ministers approval for Appropriation Changes. The template covers the creation, change, or disestablishment of: appropriations; output classes within an MCOA; and scope statements. Departments should delete all sections of the letter that are not applicable to them.

[Date]

Hon Bill English
Minister of Finance
Parliament Buildings
WELLINGTON

Dear Minister

Reorganisation of Policy Advice Appropriations

Following the Review of Expenditure on Policy Advice, I am seeking your approval to reorganise the policy related appropriations in Vote [Vote Name]. The reorganisation will standardise the recording of expenditure on policy advice and make it consistent with the common definition of policy advice.

Establishment of new appropriations or output classes

[Use this section if new appropriations or output classes are being established]

The reorganisation requires establishing a new [Departmental Output Expense Appropriation OR Departmental Multi-class Output Appropriation OR output classes within an existing Multi-class Output Appropriation] for policy advice which covers all policy advice outputs as per the common definition of policy advice. The [scope of this appropriation follows OR scopes of the individual output classes within this Multi-class Output Appropriation follow OR scope of the output class] thestandard scope statementfor policy advice.

[add the following sentence if a Multi-class Output Appropriatios is being established]

The output classes have been grouped under the one Departmental MCOA for policy advice because [insert reason].

Changes to scope statements

[Use this section if scope statements are being changed]

The reorganisation requires changing the scope statement of existing [appropriations OR output classes] for policy advice so that the scope of these [appropriations OR output classes] will follow thestandard scope statementfor policy advice.

Disestablishment of existing appropriations or output classes

[Use this section if existing appropriations or output classes are being expired]

The reorganisation requires disestablishing existing [appropriations OR output classes] for policy advice. These [appropriations OR output classes] will be expired after the end of 2011/12.

Summary table

The following table outlines the new appropriation/output class structure resulting from these changes and approximate total cost of each [appropriation AND/OR output class] affected by the change.

New appropriation/output class structure
Name of appropriation or output class New/old? Approximate total cost $m
Policy Advice [Departmental Output Expense Appropriation OR Output class within a Departmental MCOA] new $[x]m
[Name of existing policy advice related appropriation/output class 1] old (to be expired after end of 2011/12) $[x]m
[Name of existing policy advice related appropriation/output class 2] old (to be expired after end of 2011/12) $[x]m

Detailed fiscally neutral adjustments (FNAs) will be sought in [FBU OR MBU] 2012.

Recommendations

I recommend that you:

[Use this section if new appropriations and/or output classes are being established]

1 agree that these [appropriations AND/ OR output classes] in Vote [Vote Name] [“Name 1”, ”Name 2”, ... ] be replaced with effect from 1 July 2012 by the following new appropriations and/or output classes with the following scope statements:

Vote Minister responsible Appropriation type/Output class Appropriation/
Output class title
Scope
[Vote Name] Minister of/for [portfolio] [Departmental Output Expense Appropriation OR MCOA OR output class within MCOA] [Title] This output class is limited to the provision of advice (including second opinion advice and contributions to policy advice led by other agencies) to support decision-making by Ministers on government policy matters relating to [focus1].
[Vote Name] Minister of/for [portfolio] [Departmental Output Expense Appropriation OR MCOA OR output class within MCOA] [Title] This output class is limited to the provision of advice (including second opinion advice and contributions to policy advice led by other agencies) to support decision-making by Ministers on government policy matters relating to [focus2].

OR

[Use this section if an Output Class “Policy Advice” is added to and Existing MCOA]

  1. agree to add a new Output Class “Policy Advice” to the Multi-class Output Expense appropriation “[MCOA Name]” in Vote [Vote Name] in order to give effect to the recommendations of the Review of Expenditure on Policy Advice with the following scope:“This output class is limited to the provision of advice (including second opinion advice and contributions to policy advice led by other agencies) to support decision-making by Ministers on government policy matters.”

OR

[Use this section if a scope statement is being changed]

  1. agree to change the scope statement of the Departmental Output Expense appropriation “Policy Advice” in Vote [Vote Name] in order to give effect to the recommendations of the Review of Expenditure on Policy Advice
  2. agree that the new scope of the Departmental Output Expense appropriation “Policy Advice” be “This appropriation is limited to the provision of advice (including second opinion advice and contributions to policy advice led by other agencies) to support decision-making by Ministers on government policy matters.”

 

Minister of/for [Portfolio] Minister of Finance
Date: Date:

 

 

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