Management and accountability
Finance
PSR’s 2006–07 Budget appropriation revenue was $7.493 million. During 2006–07, PSR recorded a considerable underspend in its appropriation allocation due, in part, to the flow-on effects of Medicare Australia’s procedures in previous years that had led to a dramatic decrease in the number of requests for review being sent to PSR. Medicare Australia moved quickly to adjust its internal processes to address this issue, with the result that in 2006–07 PSR received 27 requests for review compared to seven in 2005–06. Indications from the Review of the PSR Scheme are that requests to review may increase, which may result in the need to engage additional staff during 2007–08.
Further, PSR has not been able to work through a full year expenditure cycle without encountering legal challenges that delay the progress of cases. These court proceedings have contributed to the build-up of the unspent appropriation.
Part of the unspent appropriation will be used to implement the findings of the Review, devise measures to raise the profile of the Scheme and enhance health practitioner education; any remainder will be returned to the Department of Finance and Administration.
The Australian National Audit Office’s report on PSR’s 2006–07 financial statements was unqualified and was signed on 28 September 2007 (see Appendix 1).