# 8.1.2 Scheme administration component

## What is a participating institutions administration funding component?

The Scheme administration component is the amount equal to the participating institution's share of the administration of the Scheme for a quarter. The Scheme must calculate the participating institution's share using the method prescribed in section 67 of the NRS Rules.

The Scheme administration component is calculated by adding together 2 amounts:

- The first amount is a percentage of 7.5% of the institution's gross liability amount for each redress payment they are liable for during the quarter. If more than 1 redress payment was made during the quarter, work out the percentage for each payment and add them together.
Step Action 1 Complete steps 1 and 2 of the redress payment method to calculate the gross liability amount for the institution for a redress payment. (Amount worked out in step 10 of 4.1.1)

This amount is the gross liability amount for the institution.

2 Multiply the gross liability amount worked out in step 1 by 0.075. (Amount worked out in step 12 of 4.1.1)

This is the percentage of the institution's gross liability amount. If the amount is not a whole number of cents, that percentage is rounded up to the next whole number of cents.

3 Repeat steps 1 and 2 for each redress payment made by the participating institution for the quarter. 4 Add together all amounts from step 3. - The second amount is the institution's share of a $1,000 contribution, as a proportion of their gross liability amount against the total of gross liability amounts of all liable participating institutions for a redress payment. If more than 1 redress payment was made during the quarter, work out the proportion for each payment and add them together.
Step Action 5 Complete steps 1 and 2 of the redress payment method to calculate the gross liability amount for the institution for a redress payment. (Amount worked out in step 10 of 4.1.1)

This amount is the gross liability amount for the institution.

6 Repeat step 5 for each liable participating institutions for the redress payment. Total these amounts together (including the amount from step 5). 7 Divide the amount from step 5 by the amount in step 6. 8 Multiply this amount by $1,000.

This is the institution's share of the $1,000 contribution for the redress payment.

If the amount worked out in step 8 is not a whole number of cents - round up to the next whole number of cents. (Amount worked out in step 13 of 4.1.1)

**Note:**If the institution is the only liable institution for the redress payment, steps 5 and 6 will result in a contribution of $1,000 for the institution. - Finally, the amounts calculated in steps 4 and 8 are added together find the institution's share of the Scheme administrative component for a redress payment.