Accrual accounting

System of accounting where items are brought to account and included in the financial statements as they are earned or incurred, rather than as they are received or paid.

Accumulated depreciation

The aggregate depreciation recorded for a particular depreciating asset.

Administered items

Expenses, revenues, assets or liabilities managed by agencies on behalf of the Commonwealth. Agencies do not control administered items. Administered expenses include grants, subsidies and benefits. In many cases, administered expenses fund the delivery of third party outputs.

Additional estimates

Where amounts appropriated at Budget time are insufficient, Parliament may appropriate more funds to portfolios through the Additional Estimates Acts.

Appropriation

An authorisation by Parliament to spend moneys from the Consolidated Revenue Fund.

Annual appropriation

Two appropriation Bills are introduced into Parliament in May and comprise the Budget. Further Bills are introduced later in the financial year as part of the additional estimates. Parliamentary departments have their own appropriations.

Capital expenditure

Expenditure by an agency on capital projects, for example purchasing a building.

Departmental items

Assets, liabilities, revenues and expenses which are controlled by the agency in providing its outputs. Departmental items would generally include computers, plant and equipment assets used by agencies in providing goods and services and most employee expenses, supplier costs and other administrative expenses incurred.

Depreciation

An expense recognised systematically for the purpose of allocating the depreciable amount of a depreciable asset over its useful life.

Operating result

Equals revenue less expense.

Outcomes

Outcomes are desired results, impacts or consequences for the Australian community influenced by the actions of the Commonwealth. Actual outcomes are the results or impacts actually achieved.

Output Groups

A logical aggregation of outputs.

Outputs

The goods and services produced by agencies on behalf of government for external organisations or individuals. Outputs also include goods and services for other areas of government external to the agency.

Price

The amount the government or the community pays for the delivery of agreed outputs.

Quality

Relates to the characteristics by which customers or stakeholders judge an organisation, product or service. Assessment of quality involves use of information gathered from interested parties to identify differences between user's expectations and experiences.

Revenue

Total value of resources earned or received to cover the production of goods and services.

Special Appropriations

Moneys appropriated by Parliament in an Act separate to an annual Appropriation Act, where the payment is for a specified amount. Special appropriations are not subject to Parliaments annual budget control, unlike the annual appropriations.