Presentation on theme: "PBCs charging fees for services:"— Presentation transcript:
1 PBCs charging fees for services: Dr Lisa Strelein, AIATSISNTRB CFO workshop2-3 February 2011
2 Covering costs of RNTBC operations Settlement amounts for running costsCompensation or interest on fundsPeriodic payments under an agreementCosts agreed under negotiation protocolFaHCSIA funding agreementCharging fees for services
3 What is the ‘business’ of an RNTBC? The rule book and the NTADistinguishing ‘commercial’ operationsNon-statutory functions
4 act as agent of the native title holders; co-ordinate and obtain a determination of the native title rights and interests of the native title holders;be a PBC for the purpose of being the subject of a determination under Sections 56 & 57 of the NTA;perform the function of a RNTBC as agent for the native title holders in respect of matters relating to native title pursuant to the NTA and the PBC Regulations;own land and/or hold a leasehold interest in land;advance the welfare and affairs of the [native title group] in any manner consistent with law and consistent with their traditional laws and custom; andin any case, hold money (including money received by way of compensation or other consideration received in relation to the native title rights and interests) on trust and to invest or otherwise apply the money as directed by the native title holders.
5 The proposed PBC Regulations RNTBCs may charge for costs incurred in performing functions under the NTA:Negotiating an agreementNegotiating an ILUACommenting on future actsConsultation on future actsExercising procedural rightsCannot charge native title holders, claimants RNTBCs or NTRBsCannot charge for determination/court proceedings
6 What ‘services’ do RNTBCs provide? Being consulted and consultingConsulting with native title holdersby phone;In person;arranging community meetingsParticipating in meetings requestedNot guaranteed agreement!
7 Providing a professional service Who will use the services?How will the RNTBC meet the needs of their ‘customers’?What is their customer service commitment?What information will they provide?What protocols do they need to put in place?How will people contact them?
8 How will RNTBCs charge? Hourly/daily consultation rate? Phone consultation rate?Processing fee?Meeting attendance?Arranging meetings?Administration charges?
9 Charging fees What are the overheads/indirect costs to recover Office rentComputers, phones etcAdministrative staffBook keeping/ accounting/ audit feesinsuranceStationaryWhat are the direct costs of providing RNTBC services?Phone callsTravelMeeting costsStaff/directors timeProfessional adviceadvertising
10 Advertising a Fee Schedule Hourly Rate $45.00 per hourPhone Hourly Rate $30.00 per hourDaily Facilitation Rate $ per dayCommunity Consultation $ per dayCommunity Catering (variable expense) eg $ per eventLocal Travel $60.00 per dayTravel Allowance (meals and incidental expenses) $ per nightTravel Costs (airfares, ferry, motel expenses) At cost
11 implications Taxation Protocols and terms of trade ABN and GSTPAYGProtocols and terms of tradeAdvertising/informationEstablishment costsInvoicing and receiptingRecord keepingBusiness planning and reporting
12 Subject to reviewPerson charged may request a review by the Registrar of Indigenous CorporationsRegistrar may request, in writing, information about:Function performed/service providedThe amount of the feeHow the amount, including profit, was fixedRegistrar decides if it is a fee that can be charged
13 Cannot amount to a tax: Identifiable service Fee paid by person who received the serviceFee is proportionate to the cost of the serviceMatthews v Chicory Market Board
14 Risk of review Funding may be withheld for extended periods: No interest on money withheld21 days for lodgment28 days for opinions28 days to review request28 days for review of decision28 days for payment= 5 monthsAdvisory opinion available
15 How will stakeholders react? ObjectionGoing around RNTBCs
17 Rule Book (fixed) Strategic Plan (3-5 years) Operation Plan (12 months)ReportingAimsNative title actPBC regulationsWhere are we now?Where do we want to be in 4 years time?How are we going to get thereWhat do we need to do this year to get where we want to be?Identify Tasks to action each strategy:What How Who WhenDevelop a budgetMonthlyQuarterly6 months12 monthsExampleTo hold landTo manage native title rightsTo improve welfare of NTH through traditional law and customTo resolve disputesEstablish an functioning officeEstablish land management programsPromote traditional law and customInvest compensation fundsTraineeship for part time admin officerEstablish written policies for staffing, travel, meetings, etcFunding submission for weed and pest managementDevelop investment and distribution policyAppointed staff memberStaff attended trainingOrganised Mabo day celebrationMembers contributions: 500 hoursAppointed investment consultant
18 Annual business planning cycle evaluationmonitoringreviewimprovement30 Jun1 Jul 2009start business planAnnual Report30 Septreview spending and activity31 Dec31 Marchoperational plan and budgetPlanningMonthly internal reportsSix month report and review