Nigel Scullion (NT, Country Liberal Party, Deputy Leader of the Nationals) Share this | Link to this | Hansard source

asked the Minister representing the Minister for Families, Community Services and Indigenous Affairs and the Minister for Disability Reform, upon notice, on 29 November 2012:

With reference to the grant of $14 million from the Aboriginals Benefit Account that was approved for the Traditional Credit Union (TCU) in June 2011 and the following issues, which are having an impact on the ability of TCU to effectively deliver, compete and expand its financial services into remote Indigenous communities in the Northern Territory:

(1) Why is TCU required to cover upfront costs and then claim reimbursement, rather than being paid on an advance and acquittal basis.

(2) Why is TCU required to use the money of its members for the expansion of services and then claim reimbursement, given that this has not been a requirement of other grant recipients in the Northern Territory, including other large Aboriginal Development Corporations.

(3) Why is the TCU prevented from investing the grant funds, which would allow it to obtain and retain interest monies to assist with meeting the operational costs associated with the expansion of services to remote locations.

Kim Carr (Victoria, Australian Labor Party, Minister for Human Services) Share this | Link to this | Hansard source

The Minister for Families, Community Services and Indigenous Affairs and the Minister for Disability Reform provides the following answer to the honourable senator's question:

(1) The Traditional Credit Union (TCU) is not required to cover up front costs and then claim reimbursement. The funding agreement between the Department of Families, Housing, Community Services and Indigenous Affairs specifies that payments to TCU will be made in accordance with the projected cash flow contained in the approved costed work plan provided to the Department by the TCU.

(2) Refer to the answer at (1) above.

(3) Funds for this project are to be expended over four financial years from 2010-2014 and in accordance with the Financial Management and Accountability Act 1997 and the Australian National Audit Office Implementing Better Practice Grants Administration guide which does not support payment for projects in advance of need.