Management and accountability
Finance
The 2005-06 budget appropriation was $7.593 million. During 2005-06, PSR recorded a considerable underspend in its appropriation allocation. This was due to a change in Medicare Australia's procedures that lead to a dramatic decrease in the number of requests for review being sent to PSR during the last two years. The reduced workflow from Medicare Australia has resulted in a considerable reduction in PSR's workforce over the past two years. Indications from the review of the scheme are that requests to review will increase, resulting in the need to re-engage staff to approximately double the current level.
PSR has not been able to work through a full year expenditure cycle without encountering legal obstacles that block the progress of cases. As a consequence of these court decisions and prudent financial management, PSR has built up considerable unspent appropriation.
Part of the unspent appropriation will be used to implement the findings of the review, and measures to raise the profile of the scheme and enhance doctor education, with the remaining returned to the Department of Finance and Administration.
During 2005-06 PSR developed it own set of Chief Executive Instructions, where it had previously adopted the Department of Health and Ageing's Chief Executive Instructions.
The Australian National Audit Office's report on PSR's 2005-06 financial statements was unqualified and was signed on 20 September 2006 (see Appendix 1).