38Departmental appropriations

38 Departmental appropriations

(1) Reporting entities must recognise all departmental appropriations (including departmental special appropriations) for which they are responsible. (2) The earliest point of recognition for accounting purposes is when the entity gains control of the appropriation, which is: (a) for loans specified in the Appropriation Acts ‑ when drawn down from the Official Public Account (OPA) for the amount to be received; (b) for departmental special appropriations (except for special accounts) ‑ when the obligation for which the special appropriation exists is incurred (up to the amount of the obligation); (c) for special accounts – when the entity receives cash from an external partner or transfers amounts from a departmental appropriation (but should not be recognised twice); (d) for Advance to the Finance Minister (AFM) or, for Parliamentary Departments, Advance to the responsible Presiding Officer ‑ the commencement date of the determination; (e) for departmental supplementation ‑ the date of the approval; and (f) for all other departmental appropriations specified in the Appropriation Acts ‑ at the later of: (i) the commencement date of the Appropriation Act; and (ii) the commencement of the financial period the appropriation relates to (i.e., when the appropriation is effective). (3) Departmental appropriations (except for special appropriations) must be recognised at the amounts specified in the Appropriation Acts in the year of appropriation, adjusted, where applicable, for formal additions and reductions. For departmental appropriations: (a) amounts designated as contribution by owners must be recognised as equity; (b) loan appropriations must be recognised as increases in borrowings (they are not revenue); and (c) all other amounts must be recognised as revenue.