A contingent liability is a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Department.
The budgetary provision for this line item of expenditure is costed on an annual basis on a specific methodology that considers historical spending trends, forecasts for the new financial year and any specific information that might influence the methodology applied. Should an adjustment to the budgeted amount be required, that is to increase or decrease the level of funding at a particular point in time in the financial year, a process of reprioritisation will be undertaken and additional funding shifted towards this item, or in certain instances moved from this item to other spending priorities where the level of funding of that item, requires adjustment.