Document 9

From:
Sent:	Thursday, 14 March 2013 2:18 PM
To: Cc:
Subject:	FW: Draft Annual Foreign Exchange Annual Report [SEC=PROTECTED, DLM=Sensitive]
Attachments:	RE: EM 2012/38 - Foreign Exchange Risk Management - Annual Report for 2012-13 [SEC=UNCLASSIFIED]; EM 2012_38 Templates 1.1, 1.2, 2 and 3.xlsx

Hi	,

I’m referring to the email I sent you in December last year in regards to the Forex annual report. Please note that we have entered the amounts in thousands instead of millions.
We received a query from	(Finance – refer below email) to confirm amounts.

Thanks.

From:
Sent: Thursday, 14 March 2013 2:11 PM
To:
Subject: FW: Draft Annual Foreign Exchange Annual Report [SEC=PROTECTED, DLM=Sensitive]

Can you please let	and	know about the error and get them to pass it onto the relevant people in finance? Thanks,

From:
Sent: Thursday, 14 March 2013 2:11 PM
To: Cc:
Subject: RE: Draft Annual Foreign Exchange Annual Report [SEC=PROTECTED, DLM=Sensitive]

It’s probably best that we do both. I will get our AAU to inform the Forex people, it would be good if you could also let them know directly.

Thanks,

From:
Sent: Thursday, 14 March 2013 2:05 PM
To: Cc:
Subject: RE: Draft Annual Foreign Exchange Annual Report [SEC=PROTECTED, DLM=Sensitive]

,

Will you let the Finance FOREX people know directly, or would you like us to pass this correction on to them when we give them broader comments on the FOREX Annual Report?

Thanks,

From:
Sent: Thursday, 14 March 2013 2:04 PM
To: Cc:
Subject: RE: Draft Annual Foreign Exchange Annual Report [SEC=PROTECTED, DLM=Sensitive]

Yes, the decimal was in the wrong spot. These figures were entered in the thousand, instead of the million.

From:
Sent: Thursday, 14 March 2013 2:03 PM
To: Cc:
Subject: RE: Draft Annual Foreign Exchange Annual Report [SEC=PROTECTED, DLM=Sensitive]

Is that consistent across all years? See highlighted text in red.

Actual IMF
related exposures
at   30 June
2012 ($m)	Estimated
IMF related exposures at
30 June 2013 ($m)	Estimated
IMF related exposures at
30 June 2014 ($m)	Estimated
IMF related exposures at
30 June 2015 ($m)	Estimated
IMF related exposures at
30 June 2016 ($m)	
0.973	1.682.000	1.677.000	1.670.000	1.664.000	

From:
Sent: Thursday, 14 March 2013 2:00 PM
To: Cc:
Subject: RE: Draft Annual Foreign Exchange Annual Report [SEC=PROTECTED, DLM=Sensitive]

Hi	,

There is an error. It should be 1.68m, the decimal was incorrectly entered. Let me know if you need me to do anything.

Thanks,

From:
Sent: Thursday, 14 March 2013 1:40 PM
To: Cc:
Subject: RE: Draft Annual Foreign Exchange Annual Report [SEC=PROTECTED, DLM=Sensitive]

Hi	,

As discussed over the phone, I just wanted to check with you to see if the amounts for the IMF charges are corrected as there seems to be a large increase in charges after 30 June 2012. Please see table below.

Table 7: IMF related exposures managed by the Department of the Treasury

	Actual IMF
related exposures
at   30 June
2012 ($m)	Estimated
IMF related exposures at
30 June 2013 ($m)	Estimated
IMF related exposures at
30 June 2014 ($m)	Estimated
IMF related exposures at
30 June 2015 ($m)	Estimated
IMF related exposures at
30 June 2016 ($m)	

IMF Charges	
0.973	
1,682.000	
1,677.000	
1,670.000	
1,664.000	

Regards

From:
Sent: Thursday, 14 March 2013 11:03 AM
To: Cc:
Subject: RE: Draft Annual Foreign Exchange Annual Report [SEC=PROTECTED, DLM=Sensitive]

Hi	,

I spoke to	about this. He said that his area provided the Treasury relevant numbers (e.g. those related the IMF), and that		has signed off on these, and doesn’t need to see the report again.

Thanks,

From:
Sent: Wednesday, 13 March 2013 5:51 PM
To:
Subject: RE: Draft Annual Foreign Exchange Annual Report [SEC=PROTECTED, DLM=Sensitive]

do you know if this has gone to the	area to check the Treasury numbers.

From:
Sent: Tuesday, 12 March 2013 10:55 AM
To: Cc:
Subject: FW: Draft Annual Foreign Exchange Annual Report [SEC=PROTECTED, DLM=Sensitive]

Hi	,

We’ve received the draft 2011‐12 Forex report from finance for comment. If BEAU has any comments could you let me know by midday Friday.

Thanks,

From: FOREX
Sent: Thursday, 7 March 2013 2:43 PM
To:
Subject: Draft Annual Foreign Exchange Annual Report [SEC=PROTECTED, DLM=Sensitive]

PROTECTED, Sensitive

Hello	,

Following on from our meeting held earlier this year, please find attached a draft copy of this year’s annual forex report that has been prepared for the Finance Minister.
As you are aware, under the Australian Government Foreign Exchange Risk Management Guidelines, the Finance
Minister provides a copy of the report to the Prime Minister and Treasurer.

Could you please circulate the draft report to the relevant areas within Treasury who may have an interest.
We would be grateful to receive any comments, including a nil response by cob Friday 15 March 2013. This would
enable us to progress our briefing for our Minister.
In the meantime should you wish to discuss any aspect of the report please let me know. Kind regards,	.

| Policy Officer
Special Appropriations and Banking Policy Section Appropriations and Cash Management Branch Governance & Resource Management Group Department of Finance and Deregulation
T: 02 6215	| E:	@finance.gov.au
A: John Gorton Building, King Edward Terrace, PARKES ACT 2600

The Special Appropriations and Banking Policy Section can assist you with advice on policies related to special appropriations, Special Accounts, banking, retained Agency receipts, repayments and foreign exchange risk management, and on certain related provisions of the FMA Act and the FMA Regulations (namely ss. 8‐11, 20‐22, 28, 30, 31 and rr. 15, 17‐19).

PROTECTED, Sensitive

Finance Australian Business Number (ABN):	61 970 632 495
Finance Web Site:	www.finance.gov.au

IMPORTANT:

This transmission is intended only for the use of the addressee and may contain confidential or legally privileged information. If you are not the intended recipient, you are notified that any use or dissemination of this communication is strictly prohibited.
If you have received this transmission in error, please notify us immediately by telephone on 61-2-6215-2222 and delete all copies of this transmission together with any attachments.
If responding to this email, please send to the appropriate person using the suffix
.gov.au.

Foreign Exchange Exposures - Departmental	Template 1.1

Entity Name:	
	Actual Forex Exposure
at 30 June 2012 in AUD m	Estimated Forex
Exposure at
30 June 2013 in AUD m	Estimated Forex
Exposure at
30 June 2014 in AUD m	Estimated Forex
Exposure at
30 June 2015 in AUD m	Estimated Forex
Exposure at
30 June 2016 in AUD m	
Departmental Receivable						
Departmental Payable						
Total Departmental Exposures	0.000	0.000	0.000	0.000	0.000	
	
Top 5 currencies in which the above Departmental Receivable Exposures are held (balance entered against Other)	
1. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
2. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
3. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
4. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
5. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
6.  Other
Total						

						

	0.000	0.000	0.000	0.000	0.000	
Balance check	0.000	0.000	0.000	0.000	0.000	
	
Top 5 currencies in which the above Departmental Payable Exposures are held (balance entered against Other)	
1. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
2. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
3. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
4. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
5. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
6.  Other
Total						

						

	0.000	0.000	0.000	0.000	0.000	
Balance check	0.000	0.000	0.000	0.000	0.000	

Foreign Exchange Exposures - Administered	Template 1.2

Entity Name: Department of the Treasury	
	Actual Forex Exposure
at 30 June 2012 in AUD m	Estimated Forex
Exposure at
30 June 2013 in AUD m	Estimated Forex
Exposure at
30 June 2014 in AUD m	Estimated Forex
Exposure at
30 June 2015 in AUD m	Estimated Forex
Exposure at
30 June 2016 in AUD m	
Administered Receivable	5,447.368	10,564.052	10,715.167	10,871.951	10,977.831	
Administered Payable	4,689.523	6,430.388	6,484.557	6,539.416	6,548.669	
Total Administered Exposures	10,136.891	16,994.440	17,199.724	17,411.367	17,526.500	
	
Top 5 currencies in which the above Administered Receivable Exposures are held (balance entered against Other)	
1. SDR _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
2. USD_ _ _ _ _ _ _ _ _ _ _ _ _ _ _
3. EUR _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
4. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
5. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
6.  Other
Total						

						
						
	5,447.368	10,564.052	10,715.167	10,871.951	10,977.831	
	5,447.368	10,564.052	10,715.167	10,871.951	10,977.831	
Balance check	0.000	0.000	0.000	0.000	0.000	
	
Top 5 currencies in which the above Administered Payable Exposures are held (balance entered against Other)	
1. SDR _ _ _ _ _ _ _ _ _ _ _ _ _ _
2. USD _ _ _ _ _ _ _ _ _ _ _ _ _ _
3. EUR _ _ _ _ _ _ _ _ _ _ _ _ _ _
4. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
5. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
6.  Other
Total						

						
						
	4,689.523	6,430.388	6,484.557	6,539.416	6,548.669	
	4,689.523	6,430.388	6,484.557	6,539.416	6,548.669	
Balance check	0.000	0.000	0.000	0.000	0.000	

Foreign Exchange Gains and Losses in 2011-12 	Template 2

!Entity Name:

	Resources from
Government* AUD m	Please identify the reason for any significant gains/losses or adjustments.	

Departmental resourcing foreign exchange realised gains and losses in 2011-12	

A	
Identify the totalgain(+) or loss (-) realised from foreign exchange transactions which occurred in the period 1July 2011to 30 June 2012.			

B	

Identify the totaladjustments(+) made to resourcing estimates to reflect the 2011-12 forex loss			

c	

Identify the total reduction request(-) required to resourcing (provided in the 2011-12 annualappropriation Acts) to reflect 2011-12  forex gain.			
Reconciliation of departmental resourcing for foreign exchange transactions in 2011-12	

D	Adjustment required to reconcile entity resourcing with realised loss.

Please do not enter an amount  for this row and let this spreadsheet calculate the amount. If you disagree with the calculated amount, then please enter a comment  and discuss it with your AAU.	

0.000		

Notes:     * means Departmental appropriation for FMA Agencies and Commonwealth payments to CAC bodies. All amounts are in AUD millions.
See the Estimates Memorandum for explanations of gain,loss and exposures and guidance on applying the most recent Budget Exchange Rates (BERs) to calculate exposures.

A	A gain should be entered as a positive figure and a loss as a negative figure.
B	The amount should be entered as a positive figure for an estimates adjustment to provide supplementation,or as a negative figure for a reduction request.

Foreign Exchange Adjustments for 2012-13 and Forward Years 	Template 3

Entity  Name:

	Resources from
Government* AUDm	

Please identify the reason for any significant adjustments.	
Adjustment for Foreign Exchange for 2012-13	

A	Identify the actual forex gain(+) or loss (-) from foreign exchange transactions that occurred between 1July 2012 and the most recent estimates update			

B	
Identify adjustments made to resourcing estimates to reflect the actual forex loss in A above			
c	Identify the amount to be included in an appropriation item reduction request (to be made post 30 June 2013) to reflect the actual forex gain in A above			

D	Identify the overall adjustmentsto reflect updated exposures immediately after the most recent estimates update,to 30 June 2013			

E	Identify the overall adjustments reauired to reflect updated exposures immediately after the
most recent estimates update  to  30 June 2013			

F	
Any adjustment required to reconcile entity resourcing

Do not enter an amount for this row; let it be calculated by spreadsheet. If you disagree  with the calculation, then enter a comment and discuss it with your AAU.	

0.000		

Adjustment for Foreign Exchange for 2013-14	

G	Identify adjustments made to reflect updated exposures for 2013-14			

Adjustment for Foreign Exchange for 2014-15	

H	Identify adjustments made to reflect updated exposures for 2014-15			

Adjustment for Foreign Exchange for 2015-16	
I	Identify adjustments made to reflect updated exposures for 2015-16			

Notes

A

B-1

* means Departmentalappropriation for FMA Agencies and Commonwealth payments to CAC bodies. All amounts are in AUD millions.
See the Estimates Memorandum for explanations of gain, loss and exposures and guidance on applying the most recent Budget Exchange Rates (BERs) to calculate exposures. A gain should be entered as a positive figure and a loss as a negative figure.
The amount  should be entered as a positive figure for an estimates adjustment to provide supplementation,or as a negative figure for a reduction request.

From:
Sent:	Monday, 17 December 2012 9:04 AM
To: Cc:
Subject:	RE: EM 2012/38 - Foreign Exchange Risk Management - Annual Report for 2012-13 [SEC=UNCLASSIFIED]
Attachments:	20121217080047886.pdf.pdf

Hi	,

Please find attached Treasury’s return for the Foreign Exchange Risk Management. If you need further information, please contact me.
Thanks.

From:
Sent: Friday, 7 December 2012 12:24 PM
To:

Cc:
Subject: FW: EM 2012/38 - Foreign Exchange Risk Management - Annual Report for 2012-13 [SEC=UNCLASSIFIED]

UNCLASSIFIED

Dear all

Just a friendly reminder. Please note that your agency needs to provide a return:
1)   Parliamentary Budget Office
2)   Department of the Treasury
3)   Clean Energy Finance Corporation
4)   Australian Competition and Consumer Commission
5)   National Competition Council
6)   Australian Securities and Investments Commission

Greatly appreciate if your team can submit the return (both electronic copy and scanned CFO‐signed copy) by 21
December 2012. Kind Regards

UNCLASSIFIED

From: Budget Advice
Sent: Friday, 7 December 2012 11:26 AM
To:

Subject: EM 2012/38 - Foreign Exchange Risk Management - Annual Report for 2012-13 [SEC=UNCLASSIFIED]

UNCLASSIFIED

Please find attached: EM 2012/38 ‐ Foreign Exchange Risk Management ‐ Annual Report for 2012‐13
This EM will be placed in the Knowledge Management section of the CBMS. EM Coordinator
Budget Policy and Coordination Division
Department of Finance and Deregulation

7 December 2012

UNCLASSIFIED

Finance Australian Business Number (ABN):	61 970 632 495
Finance Web Site:	www.finance.gov.au

IMPORTANT:

This transmission is intended only for the use of the addressee and may contain confidential or legally privileged information. If you are not the intended recipient, you are notified that any use or dissemination of this communication is strictly prohibited.
If you have received this transmission in error, please notify us immediately by telephone on 61-2-6215-2222 and delete all copies of this transmission together with any attachments.
If responding to this email, please send to the appropriate person using the suffix
.gov.au.

EM2012/38 	7 December 2012

ATTACHMENT  A

ENTITY FOREIGN EXCHANGE  REPORT FOR 2012-13

Entity Name: Department of the Treasury

Please complete the following questions by ticking the appropriate boxes·.

1.  Entities that have opted back into the forex reporting process

Such entities should note that consistent with the policy, information provided in the templates should cover new exposures only, which have arisen after opting back in.

2.   Foreign Exchange Exposures

Does the entity have any foreign exchange exposure to report?

Forex exposures are calculated as the Australian dollar amounts that are expected to be paid or received in a foreign currency.  This calculates the entity's  exposure to losses or gains as a result of movements in exchange rates.  Exposures represent expected transactions and therefore, are not realised gains or losses.

[J  If no, go to question 3.
fi'If yes, please complete Templates 1.1 and 1.2- Foreign Exchange Exposures.

3.   Foreign Exchange Gain or Loss for the Previous Year

In 2011-12, did the entity make an overall foreign exchange gain/loss in excess of A$5 million, or 1 per cent of its departmental appropriation for FMA Agencies, or revenue from government for CAC bodies?

ISJ'If no, go to question 4.

[J   lfyes, please complete Template 2-Foreign Exchange Gain or Loss for the
Previous Year.

4.  Foreign Exchange Adjustments

Did the entity make any adjustments to resourcing, for the foreign exchange component of transactions, for 2012-13 and/or the forward years?
ri' If no, go to question 5.

[J  If yes, please complete Template 3 -Foreign Exchange Adjustments.

King Edward Terrace, Parkes, ACT • Telephone 02 6215 2222 • Internet www.fmance.gov.au 	1

EM2012/38 	7 December 2012

5.   Does the entity seek to apply to opt out of future annual foreign exchange reporting requirements?

If no, please sign off.

D   Ifyes

•	please complete Templates 1.1 and 1.2 -Foreign Exchange Exposures,
as this will be used by Finance to assess applications; and

•	please confirm that the entity has advised its Minister of this application to opt out of foreign exchange reporting.

Date Minister was advised: --------

Further background information on opting out of foreign exchange reporting is available in Estimates Memorandum 2006/37.

Sign-off by the CFO
I	Chief Financial  Officer of Department of the Treasury certify that the information provided is complete and accurate and that it, and all
relevant management practices, complies with the Australian Government Foreign
Exchange Risk Management Guidelines.

Signature ofCFO:

--

Date:---I{/(L. /t z     -------

Forward all documentation to your AAU in the Department of Finance and
Deregulation. If you have any queries, please contact your AAU for assistance.

King Edward Terrace, Parkes, ACT • Telephone 02 6215 2222 • Internet www.rmance.gov.au 	2

Foreign Exchange Exposures -Administered	Template 1.2

	
10,977.831		
	
4,689.523	
6,430.388	
6,484.557	
6,539.416	
6,548.669		

xposures	
10,136.891	
16,994.440	
17,199.724	
17,411.367	
17,526.500		

Administered E

"* {

1. Exposures are amounts payable or receivable in a foreign currency, and Australian dollar amounts payable or receivable, which are calculated based on a foreign currency. Notes: 	2. Exposures are always positive.
3. For estimated forex exposures,please use the most recent BERs as provided by your AAU in Finance.
4. All amounts are in AUD millions.

j