Regulation 10 ConsiderationDate: [Insert Date]

FMA Regulation 10 applies to circumstances where an agency has an insufficient appropriation of money, under the provisions of an existing law, or a Bill that is before the Parliament, to meet the full expenditure that might be payable under the arrangement. This template should be used to consider whether agreement from a Regulation 10 delegate is required for expenditure that might be payable under the arrangement, including contingent liabilities. Due to the low value nature of the procurement, Regulation 10 agreement will generally not be required as sufficient appropriation would exist. / NOTE
You will need to complete this document for low, medium and high risk procurements.
This form does not provide Regulation 10 agreement. If Regulation 10 agreement is required, you will need to follow your agencies relevant internal approval processes.

Description

[Insert Short Description] / Enter a brief descriptionof the procurement.

Recommendation

Regulation 10 — Arrangements beyond available appropriation

I declare that the existing appropriation authority is sufficient to meet expenditure that might be payable under the arrangement. This includes all the costs that the Commonwealth is committing to pay under the arrangement, including the costs of any contingent liabilities.
☐Sufficient uncommitted appropriation exists
The appropriation is sufficient to meet expenditure that might become payable under an arrangement.
☐Appropriate authority is not sufficient
Under Regulation 10A, I declare the contingent liability will not require Regulation 10 agreement given the contingent liability is assessed as remote and not material (the likelihood of the event occurring is less than 5%) and not material (the most probable expenditure would be less than $5 million).
☐Sufficient uncommitted appropriation does not exist
Regulation 10 agreement is required from a delegate and will be sought using the agencies internal approval processes. / Regulation 10 of the FMA Regulation states:
“If:
a person proposes to enter into an arrangement; and
the relevant Agency has an insufficient appropriation of
money, under the provisions of an existing law or a proposed law that is before Parliament, to meet expenditure that might be payable under the arrangement;
the person must not enter into the arrangement unless the
Finance Minister has agreed, in writing, to the expenditure that might become payable under the arrangement.”
Regulation 10A of the FMA Regulation states:
(1) If:
(a) an arrangement consists of, or includes, a contingent liability in relation to an event; and
(b) the person proposing to enter the arrangement is satisfied, after making reasonable inquiries, that:
(i) the likelihood of the event occurring is remote; and
(ii) the most probable expenditure that would need to be made in accordance with the arrangement, if the event occurred, would not be material;
(iii) regulation 10 does not apply to that part of the arrangement.
(2) For subparagraph (1) (b) (i), the likelihood of an event occurring is remote if there is a probability of less than 5% that it will occur.
(3) For subparagraph (1) (b) (ii), expenditure is material if it is at least:
(a) an amount specified by the Finance Minister in a legislative instrument for this paragraph; or
(b) if the Finance Minister has not made a legislative instrument under paragraph (a) that applies to the Agency - $5000000.
Signature / [Insert Signature] / Copies sent to:
[Insert Name and
Title]
Approver / [Insert Name]
Title and Workgroup / [Insert Title] / Title and workgroup
of Approver
Date / [Insert Date]

Next Steps

For medium and high risk procurements, notify successful and unsuccessful tenderers.

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