PORTFOLIO BUDGET STATEMENTS 2014-15
BUDGET RELATED PAPER NO. 1.14
PRIME MINISTER AND CABINET PORTFOLIO
BUDGET INITIATIVES AND EXPLANATIONS OF
APPROPRIATIONS SPECIFIED BY OUTCOMES
AND PROGRAMMES BY AGENCY
© Commonwealth of Australia 2014
Printed Version: ISBN 978-1-922098-53-5
PDF Version: ISBN 978-1-922098-54-2
RTF Version: ISBN 978-1-922098-55-9
This publication is available for your use under a Creative Commons BY Attribution
3.0 Australia licence, with the exception of the Commonwealth Coat of Arms, the
Department of the Prime Minister and Cabinet logo, photographs, images, signatures
and where otherwise stated. The full licence terms are available from
http://creativecommons.org/licenses/by/3.0/au/legalcode.
Use of the Department of the Prime Minister and Cabinet material under a Creative
Commons BY Attribution 3.0 Australia licence requires you to attribute the work (but
not in any way that suggests that the Department of the Prime Minister and Cabinet
endorses you or your use of the work).
The Department of the Prime Minister and Cabinet material used 'as supplied'.
Provided you have not modified or transformed the Department of the Prime Minister
and Cabinet material in any way including, for example, by changing the Department
of the Prime Minister and Cabinet text; calculating percentage changes; graphing or
charting data; or deriving new statistics from published the Department of the Prime
Minister and Cabinet statistics – then the Department of the Prime Minister and
Cabinet prefers the following attribution:
Source: The Australian Government Department of the Prime Minister and Cabinet.
Derivative material
If you have modified or transformed the Department of the Prime Minister and
Cabinet material, or derived new material from those of the Department of the Prime
Minister and Cabinet in any way, then the Department of the Prime Minister and
Cabinet prefers the following attribution:
Based on: The Australian Government Department of the Prime Minister and Cabinet
data.
Use of the Coat of Arms
The terms under which the Coat of Arms can be used are set out on the It’s an Honour
website (see www.itsanhonour.gov.au).
Other Uses
Inquiries regarding this licence and any other use of this document are welcome at:
Department of the Prime Minister and Cabinet
PO Box 6500
Canberra ACT 2600
Tel: (02) 6271 5111
Fax: (02) 6271 5414
www.dpmc.gov.au
PRIME MINISTER
President of the Senate
Australian Senate
Parliament House
CANBERRA ACT 2600
Speaker
House of Representatives
Parliament House
CANBERRA ACT 2600
Dear Mr President
Dear Madam Speaker
I hereby submit Portfolio Budget Statements in support of the 2014-15 Budget for the Prime
Minister and Cabinet portfolio.
These statements have been developed, and are submitted to the Parliament, as a statement on
the outcomes for the portfolio.
I present these statements to provide accountability to the Parliament and, through it, the public.
Yours sincerely
TONY ABBOTT
Parliament House CANBERRA ACT 2600
Telephone (02) 6277 7700
www.pm.gov.au
Abbreviations and conventions
The following notation may be used:
NEC/nec
..
n/a
nfp
$m
$b
not elsewhere classified
nil
not zero, but rounded to zero
not applicable (unless otherwise specified)
not for publication
$ million
$ billion
Figures in tables and in the text may be rounded. Figures in text are generally rounded
to one decimal place, whereas figures in tables are generally rounded to the nearest
thousand. Discrepancies in tables between totals and sums of components are due to
rounding.
Enquiries
Should you have any enquiries regarding this publication please contact the, Chief
Financial Officer, Department of the Prime Minister and Cabinet on (02) 6271 5652.
A copy of this document can be located on the Australian Government Budget website
at: http://www.budget.gov.au.
iv
USER GUIDE
TO THE
PORTFOLIO BUDGET STATEMENTS
User Guide
The purpose of the 2014-15 Portfolio Budget Statements (PB Statements) is to inform
Senators and Members of Parliament of the proposed allocation of resources to
Government outcomes by agencies within the portfolio. Agencies receive resources
from the annual appropriations acts, special appropriations (including standing
appropriations and special accounts), and revenue from other sources.
A key role of the PB Statements is to facilitate the understanding of proposed annual
appropriations in Appropriation Bills No. 1 and No. 2 2014-15 (or Appropriation Bill
[Parliamentary Departments] No. 1 2014-15 for the parliamentary departments). In this
sense the PB Statements are Budget related papers and are declared by the
Appropriation Acts to be ‘relevant documents’ to the interpretation of the Acts
according to Section 15AB of the Acts Interpretation Act 1901.
The PB Statements provide information, explanation and justification to enable
Parliament to understand the purpose of each outcome proposed in the Bills.
As required under Section 12 of the Charter of Budget Honesty Act 1998, non-general
government sector entities are not consolidated into the Commonwealth general
government sector fiscal estimates and accordingly, these entities are not reported in
the PB Statements.
vi
CONTENTS
Portfolio Overview......................................................................................................... 1
Department of the Prime Minister and Cabinet ............................................................... 3
Agency Resources and Planned Performance ........................................................ 13
Department of the Prime Minister and Cabinet ............................................................. 15
Aboriginal Hostels Limited ............................................................................................. 69
Australian National Audit Office .................................................................................... 91
Australian Public Service Commission........................................................................ 119
Indigenous Business Australia .................................................................................... 151
Indigenous Land Corporation ...................................................................................... 179
Office of the Commonwealth Ombudsman ................................................................. 203
Office of the Inspector-General of Intelligence and Security ...................................... 225
Office of National Assessments .................................................................................. 245
Office of the Official Secretary to the Governor-General ............................................ 267
Torres Strait Regional Authority .................................................................................. 293
Glossary ..................................................................................................................... 321
Acronyms ................................................................................................................... 329
vii
PORTFOLIO OVERVIEW
PRIME MINISTER AND CABINET PORTFOLIO OVERVIEW
Ministers and Portfolio Responsibilities
The role of the Prime Minister and Cabinet Portfolio is to provide policy advice and
support to the Prime Minister, the Cabinet, Portfolio Ministers, and Parliamentary
Secretaries on matters that are at the forefront of public and government
administration.
Following the Administrative Arrangements Order (AAO) of 18 September 2013, and
then of 12 December 2013, the principal responsibilities of the Prime Minister and
Cabinet Portfolio comprise:
 advice to the Prime Minister across Government on policy and implementation
 assistance to the Prime Minister in managing the Cabinet programme
 national security policy coordination
 counter terrorism policy coordination
 cyber policy coordination
 intergovernmental relations and communications with State and Territory
Governments
 coordination of government administration
 Australian Government employment workplace relations policy, including equal
employment opportunity and administration of the framework for agreement
making and remuneration and conditions
 Australian honours and symbols policy
 government ceremonial and hospitality
 Commonwealth Aboriginal and Torres Strait Islander policy, programmes and
service delivery
 Indigenous advancement
 reducing the burden of government regulation
 women’s policies and programmes.
The structure and the outcomes of the Portfolio are depicted in diagrammatical form
on pages 8-10.
3
Portfolio Overview
The Portfolio includes the following prescribed agencies under the Financial
Management and Accountability Act 1997 (FMA Act):
 Department of the Prime Minister and Cabinet
 Australian National Audit Office
 Australian Public Service Commission
 Office of National Assessments
 Office of the Commonwealth Ombudsman
 Office of the Inspector-General of Intelligence and Security
 Office of the Official Secretary to the Governor-General.
The Portfolio also includes the following Commonwealth companies and authorities,
under the Commonwealth Authorities and Companies Act 1997 (CAC Act):
 Aboriginal Hostels Limited
 Indigenous Business Australia
 Indigenous Land Corporation
 National Australia Day Council Limited
 Northern Territory Land Councils
o
Anindilyakwa Land Council
o
Central Land Council
o
Northern Land Council
o
Tiwi Land Council
 Outback Stores Pty Ltd
 Torres Strait Regional Authority
 Wreck Bay Aboriginal Community Council.
Following is a brief explanation of the roles of each of PM&C’s entity agencies,
companies and offices.
The Department of the Prime Minister and Cabinet (PM&C) is a Department of State
and is subject to the FMA Act. The principal function of PM&C is to provide support
to the Prime Minister, the Cabinet, Portfolio Ministers, and Parliamentary Secretaries
to achieve a coordinated and innovative approach to the development and
implementation of government policies.
PM&C is also responsible for Whole-of-Government policy and programmes on
Indigenous advancement, deregulation and women’s policy.
4
Portfolio Overview
The Aboriginal Land Commissioner (ALC) is an independent statutory office holder
under the Aboriginal Land Rights (Northern Territory) Act 1976 (ALRA) and is subject to
the FMA Act. The principal function of the Commissioner is to conduct formal
inquiries into applications for claims to traditional Aboriginal land in the Northern
Territory and to provide recommendations to the Minister for Indigenous Affairs for
the grant of land to traditional owners where appropriate.
The Australian National Audit Office (ANAO) is a statutory body established under
the Auditor-General Act 1997 and is subject to the FMA Act. The ANAO assists the
Auditor-General in undertaking the performance of their functions under the Act.
The Australian Public Service Commission (APSC) is a statutory agency with a
number of defined functions under the Public Service Act 1999, is subject to the FMA
Act and has a central leadership role in providing expertise, guidance and
performance monitoring across the Australian Public Service (APS). The APSC has a
key role in improving the alignment and quality of APS human capital planning and
management to support an efficient and effective whole of APS, fostering talent and
leadership, assuring agencies’ organisational capability, embedding APS Values,
supporting high ethical standards and coordinating workplace relations for Australian
Government employment.
The position of Executive Director of Township Leasing (EDTL) is a statutory office
that is subject to the FMA Act and was established under the ALRA to enter into leases
of Aboriginal-held land in the Northern Territory on behalf of the Commonwealth,
and to administer subleases and other rights and interests derived from such leases.
The primary function of the EDTL is to hold leases over townships on Aboriginal land
in the Northern Territory following agreement between the Commonwealth and the
respective Aboriginal Land Council and Land Trust.
The Office of National Assessments (ONA) is a statutory agency operating under the
Office of National Assessments Act 1977 and is subject to the FMA Act. The ONA
provides assessments on international developments, including political, strategic and
economic developments, to the Prime Minister, senior ministers and senior officials.
The ONA is also responsible for coordinating and evaluating Australia’s foreign
intelligence activities.
The Office of the Commonwealth Ombudsman (OCO) is an independent statutory
agency established under the Ombudsman Act 1976 and is subject to the FMA Act. The
Office ensures administrative action by Australian Government agencies is fair and
accountable by handling complaints, conducting investigations, performing audits
and inspections, encouraging good administration, and discharging other specialist
oversight tasks - such as monitoring the operation of the Commonwealth public
interest disclosure scheme and the exercise of coercive immigration powers. The
Commonwealth Ombudsman is also the Defence Force, Immigration, Law
Enforcement, Taxation, Postal Industry, and Overseas Students Ombudsman.
5
Portfolio Overview
The Office of the Inspector-General of Intelligence and Security (OIGIS) is an
independent statutory agency under the Inspector-General of Intelligence and Security Act
1986 and is subject to the FMA Act. The OIGIS works to provide assurance that
Australia’s intelligence agencies act legally and with propriety.
The Office of the Official Secretary to the Governor-General (OOSGG) is a statutory
office that supports the Governor-General to enable them to perform their official
duties and is subject to the FMA Act. The position of the Official Secretary to the
Governor-General (the Official Secretary) has existed since 1901. The OOSGG was
established in December 1984 by amendment to the Governor-General Act 1974.
The Registrar of Indigenous Corporations (RIC) is an independent statutory office
holder who administers the Corporations (Aboriginal and Torres Strait Islander) Act 2006
and is subject to the FMA Act. The Registrar of Indigenous Corporations registers and
regulates Aboriginal and Torres Strait Islander corporations.
Aboriginal Hostels Limited (AHL) is an Australian Government company subject to
the Corporations Act 2001 and the CAC Act. AHL provides temporary accommodation
to Aboriginal and Torres Strait Islander people through a national network. AHL
provides accommodation that supports Aboriginal and Torres Strait Islander people to
access educational, employment-related and health opportunities.
Indigenous Business Australia (IBA) is a statutory authority established under the
Aboriginal and Torres Strait Islander Act 2005 (ATSI Act) and is subject to the CAC Act.
IBA creates opportunities for Aboriginal and Torres Strait Islander people and
communities to build assets and wealth. IBA assists Aboriginal and Torres Strait
Islander people to buy their own home, own their own business and, to invest in
commercial ventures that generate financial returns and can also provide employment,
training and supply chain opportunities.
The Indigenous Land Corporation (ILC) is a statutory authority established under the
ATSI Act and is subject to the CAC Act. The ILC assists Aboriginal and Torres Strait
Islander people to acquire and manage land so as to provide economic, environmental,
social and cultural benefits. The ILC assists in the delivery of sustainable benefits from
land acquisition and by providing land management assistance.
The National Australia Day Council Limited (NADC) is a Commonwealth Company
that is subject to the CAC Act and is responsible for the coordination of Australia Day
celebrations across the nation and for the Australian of the Year Awards.
Anindilyakwa Land Council (ALCNT), Central Land Council (CLC), Northern Land
Council (NLC) and Tiwi Land Council (TLC) are the four Northern Territory Land
Councils established under the ALRA. The Land Councils are subject to the CAC Act.
Each is an independent statutory body established to represent Aboriginal interests in
a range of processes under the ALRA.
6
Portfolio Overview
Outback Stores Pty Ltd (OBS) is an Australian Government-owned company subject
to the Corporations Act 2001 and the CAC Act. OBS promotes the health, employment
and economic development of remote Indigenous communities by managing quality,
sustainable retail stores. OBS contributes to the portfolio’s goals by helping Aboriginal
and Torres Strait Islander people to improve their standard of living and achieve
health goals.
The Torres Strait Regional Authority (TSRA) is a statutory authority established by
the ATSI Act and is subject to the CAC Act. TSRA formulates, implements and
monitors the effectiveness of programmes for Torres Strait Islander and Aboriginal
people living in the Torres Strait and also advises the Minister for Indigenous Affairs
about issues relevant to Torres Strait Islander and Aboriginal people living in the
Torres Strait region. TSRA works to empower Torres Strait Islander and Aboriginal
people living in the Torres Strait to determine their own affairs based on the
ailan kastom (island custom) of the Torres Strait.
The Wreck Bay Aboriginal Community Council (WBACC) is an independent
statutory body established by the Aboriginal Land Grant (Jervis Bay Territory) Act 1986
and is subject to the CAC Act. The council holds title to land and provides service to
the Aboriginal community of Wreck Bay.
More details about each agency’s responsibilities appear in individual agency
statements contained in these Portfolio Budget Statements.
Portfolio Budget Statements are not required for the Aboriginal Land Commissioner,
Anindilyakwa Land Council, Executive Director of Township Leasing, National
Australia Day Council, Northern Land Council, Central Land Council, Outback Stores,
Registrar of Indigenous Corporations, Tiwi Land Council, and Wreck Bay Aboriginal
Community Council, as they are not funded by direct appropriation.
7
Portfolio Overview
Figure 1: Prime Minister and Cabinet Portfolio Structure and Outcomes
Prime Minister — The Hon Tony Abbott MP
Minister for Indigenous Affairs — Senator the Hon Nigel Scullion
Minister Assisting the Prime Minister for the Public Service — Senator the Hon Eric Abetz
Minister Assisting the Prime Minister for Women — Senator the Hon Michaelia Cash
Parliamentary Secretary to the Prime Minister — The Hon Josh Frydenberg MP
Parliamentary Secretary to the Prime Minister — The Hon Alan Tudge MP
Department of the Prime Minister and Cabinet
Secretary: Dr Ian Watt AO
Outcome 1: Prime Minister and Cabinet - Provide high quality policy advice and support to the Prime
Minister, the Cabinet, Portfolio Ministers and Parliamentary Secretaries including through the
coordination of government activities, policy development and programme delivery.
Outcome 2: Indigenous - Improve results for Indigenous Australians including in relation to school
attendance, employment and community safety, through delivering services and programmes, and
through measures that recognise the special place that Indigenous people hold in this Nation.
Aboriginal Hostels Limited
Chief Executive Officer: Ms Joy Savage
Outcome: Improved access to education, employment, health and other services for Aboriginal and
Torres Strait Islander people travelling or relocating through the operation of temporary hostel
accommodation services.
Australian National Audit Office
Auditor-General: Mr Ian McPhee PSM
Outcome: To improve public sector performance and accountability through independent reporting on
Australian Government administration to Parliament, the Executive and the public.
Australian Public Service Commission
Commissioner: Mr Stephen Sedgwick AO
Outcome: Increased awareness and adoption of best practice public administration by the public service
through leadership, promotion, advice and professional development, drawing on research and
evaluation.
Indigenous Business Australia
Chief Executive Officer: Mr Christopher Fry
Outcome: Improved wealth acquisition to support the economic independence of Aboriginal and Torres
Strait Islander peoples through commercial enterprise, asset acquisition, construction and access to
concessional home and business loans.
continued on next page.
8
Portfolio Overview
Indigenous Land Corporation
Chief Executive Officer: Mr Mike Dillon
Outcome: Enhanced socio-economic development, maintenance of cultural identity and protection of the
environment by Indigenous Australians through land acquisition and management.
National Australia Day Council Limited
Chief Executive Officer: Mr Jeremy Lasek
Outcome: A shared celebration of Australia and Australians through promoting the meaning of and
participation in Australia Day and the Australian of the Year Awards.
Northern Territory Land Councils
Anindilyakwa Land Council - Chief Executive Officer: Mr Mark Hewitt
Central Land Council - Director: Mr David Ross
Northern Land Council - Chief Executive Officer: Mr Joe Morrison
Tiwi Land Council - Chief Executive Officer: Mr John S Hicks
Objective: Represent Aboriginal interests in various processes under the Aboriginal Land Rights
(Northern Territory) Act 1976. The Central Land Council and Northern Land Council are Native Title
Representative Bodies under the Native Title Act 1993.
Office of National Assessments
Director General: Mr Richard Maude
Outcome: Advancement of Australia's national interests through increased government awareness of
international developments affecting Australia.
Office of the Commonwealth Ombudsman
Ombudsman: Mr Colin Neave
Outcome: Fair and accountable administrative action by Australian Government agencies by
investigating complaints, reviewing administrative action and inspecting statutory compliance by law
enforcement agencies.
Office of the Inspector-General of Intelligence and Security
Inspector-General: Dr Vivienne Thom
Outcome: Independent assurance for the Prime Minister, Senior Ministers and Parliament as to whether
Australia’s intelligence and security agencies act legally and with propriety by inspecting, inquiring into
and reporting on their activities.
Office of the Official Secretary to the Governor-General
Official Secretary: Mr Stephen Brady
Outcome: The performance of the Governor-General’s role is facilitated through the organisation and
management of official duties, management and maintenance of the official household and property and
administration of the Australian Honours and Awards system.
continued on next page.
9
Portfolio Overview
Outback Stores Pty Ltd
Chief Executive Officer: Mr Steve Moore
Objective: To improve access to affordable, healthy food for Indigenous communities, particularly in
remote areas, through providing food supply and store management and support services.
Torres Strait Regional Authority
Chief Executive Officer: Mr Wayne See Kee
Outcome: Progress towards closing the gap for Torres Strait Islander and Aboriginal people living in the
Torres Strait Region through development planning, coordination, sustainable resource management,
and preservation and promotion of Torres Strait Islander and Aboriginal culture.
Wreck Bay Aboriginal Community Council
Chief Executive Officer: Mr Mal Hansen
Objective: Established by the Aboriginal Land Grant (Jervis Bay Territory) Act 1986 to hold title to land
and provide council services to the Aboriginal Community of Jervis Bay.
10
Portfolio Overview
Portfolio Resources
Table 1 shows the total new resources provided to the portfolio in the 2014-15 Budget
year by agency.
Table 1: Portfolio Resources 2014-15
Bill No. 1
$'000
Appropriation
Bill No. 2
$'000
Special
$'000
Receipts
Total
$'000
$'000
Department of the Prime
Minister and Cabinet
Administered appropriations
Departmental appropriations
Total:
1,167,245
590,106
1,757,351
8,517
5,887
14,404
178,757
178,757
95,122
8,613
103,735
1,449,641
604,606
2,054,247
Aboriginal Hostels Limited
Administered appropriations
Departmental appropriations
Total:
38,058
38,058
1,244
1,244
-
20,192
20,192
59,494
59,494
Indigenous Business Australia
Administered appropriations
Departmental appropriations
Total:
34,328
34,328
36,880
36,880
-
159,044
159,044
230,252
230,252
Indigenous Land Corporation
Administered appropriations
Departmental appropriations
Total:
9,527
9,527
-
-
54,565
54,565
64,092
64,092
-
-
-
12,973
12,973
12,973
12,973
48,159
48,159
-
-
9,885
9,885
58,044
58,044
National Australia Day Council Limited
Administered appropriations
Departmental appropriations
Total:
Torres Strait Regional Authority
Administered appropriations
Departmental appropriations
Total:
continued on next page.
11
Portfolio Overview
Table 1: Portfolio Resources 2014-15 (continued)
Bill No. 1
$'000
Appropriation
Bill No. 2
$'000
Special
$'000
Receipts
Total
$'000
$'000
Australian National Audit Office
Administered appropriations
Departmental appropriations
Total:
73,799
73,799
-
626
626
3,500
3,500
77,925
77,925
Australian Public Service
Commission
Administered appropriations
Departmental appropriations
Total:
22,072
22,072
-
61,963
61,963
21,894
21,894
61,963
43,966
105,929
Office of the Commonwealth
Ombudsman
Administered appropriations
Departmental appropriations
Total:
17,959
17,959
-
-
1,695
1,695
19,654
19,654
Office of the Inspector General
of Intelligence and Security
Administered appropriations
Departmental appropriations
Total:
2,189
2,189
-
-
-
2,189
2,189
Office of National Assessments
Administered appropriations
Departmental appropriations
Total:
32,548
32,548
-
-
-
32,548
32,548
Office of the Official Secretary
to the Governor General
Administered appropriations
Departmental appropriations
Total:
1,574
11,777
13,351
-
425
425
-
1,999
11,777
13,776
Portfolio total
Less amounts transferred
within portfolio1
2,731,123
3,438
-
3,438
Resources available within portfolio:
-
2,727,685
1
-
Amounts transferred within the portfolio include grant payments made to the National Australia Day Council
Limited ($3.4 million) by the Department of Prime Minister and Cabinet.
12
AGENCY RESOURCES AND
PLANNED PERFORMANCE
Department of the Prime Minister and Cabinet ........................................................ 15
Aboriginal Hostels Limited ......................................................................................... 69
Australian National Audit Office ................................................................................ 91
Australian Public Service Commission .................................................................. 119
Indigenous Business Australia ................................................................................ 151
Indigenous Land Corporation .................................................................................. 179
Office of the Commonwealth Ombudsman ............................................................ 203
Office of the Inspector-General of Intelligence and Security ............................... 225
Office of National Assessments .............................................................................. 245
Office of the Official Secretary to the Governor-General ...................................... 267
Torres Strait Regional Authority.............................................................................. 293
13
Department of the Prime
Minister and Cabinet
Agency Resources and Planned
Performance
DEPARTMENT OF THE PRIME MINISTER AND CABINET
Section 1: Agency Overview and Resources ........................................................... 19
1.1 Strategic Direction Statement ................................................................................ 19
1.2 Agency Resource Statement ................................................................................. 20
1.3 Budget Measures .................................................................................................. 23
Section 2: Outcomes and Planned Performance ..................................................... 27
2.1 Outcomes and Performance Information .............................................................. 27
Section 3: Explanatory Tables and Budgeted Financial Statements ..................... 51
3.1 Explanatory Tables ................................................................................................ 51
3.2 Budgeted Financial Statements ............................................................................ 54
17
DEPARTMENT OF THE PRIME MINISTER AND CABINET
Section 1: Agency Overview and Resources
1.1
STRATEGIC DIRECTION STATEMENT
The role of PM&C is to provide policy advice and support to the Prime Minister, the
Cabinet, Portfolio Ministers, and Parliamentary Secretaries on matters that are at the
forefront of public and government administration.
PM&C strives to achieve a coordinated and innovative approach to the development
and implementation of government policies. This requires well considered advice on a
range of issues, drawing together input from across portfolios, to address the long
term challenges and opportunities facing Australia. Priority areas for PM&C include:

supporting the Prime Minister as Head of Government and the Cabinet

providing advice on major domestic, international, and national security policy,
drawing on expertise from across government

monitoring and providing advice on the implementation of key government
initiatives, policies and programmes

leading the APS in collaboration with the APSC

progressing Indigenous advancement and working closely with other Australian
Government Departments to lead efforts to ensure mainstream programmes and
services deliver benefits to Indigenous Australians.
Further details of the objectives and performance evaluation mechanisms attached to
this strategy are detailed in Section 2 of this document.
19
PM&C Budget Statements
1.2
AGENCY RESOURCE STATEMENT
Table 1.1 shows the total resources from all sources. The table summarises how
resources will be applied by outcome and by administered and departmental
classification.
Table 1.1: PM&C Resource Statement — Budget Estimates for 2014-15 as at
Budget May 2014
Estimate
of prior
year amounts
available in
2014-15
$'000
Ordinary annual services1
Departmental appropriation
Prior year departmental appropriation2
Departmental appropriation3
s31 Relevant agency receipts4
Total
Total
estimate
Actual
available
appropriation
2014-15
$'000
2014-15
$'000
2013-14
$'000
22,901
22,901
590,106
8,613
598,719
22,901
590,106
8,613
621,620
13,556
365,921
10,714
390,191
-
14,062
1,153,183
130,367
1,297,612
14,062
1,153,183
130,367
1,297,612
16,143
748,662
764,805
22,901
1,896,331
1,919,232
1,154,996
-
8,517
8,517
8,517
8,517
23,837
23,837
-
5,887
5,887
5,887
5,887
8,528
8,528
-
38,124
38,124
38,124
38,124
-
-
52,528
52,528
32,365
22,901
1,948,859
1,971,760
1,187,361
Administered expenses5
Outcome 1: Prime Minister and Cabinet
Outcome 2: Indigenous
Payments to CAC Act bodies
Total
Total ordinary annual services
A
+
Proposed
at Budget
=
6
Other services
Administered expenses
Specific payments to States,
ACT, NT and local government
Outcome 2
Total
Departmental non-operating
Equity injections
Total
Administered non-operating
Payments to CAC Act bodies non-operating
Total
Total other services
Total available annual
appropriations
B
continued on next page.
20
PM&C Budget Statements
Table 1.1: PM&C Resource Statement — Budget Estimates for 2014-15 as at
Budget May 2014 (continued)
Total
estimate
Actual
available
appropriation
2014-15
$'000
2014-15
$'000
2013-14
$'000
-
122,955
55,802
122,955
55,802
47,282
-
178,757
178,757
38,777
86,059
22,901
2,127,616
2,150,517
1,273,420
940
-
50,807
122,000
51,747
122,000
23,811
-
940
95,122
267,929
95,122
268,869
4,216
28,027
23,841
2,395,545
2,419,386
1,301,447
23,841
290,491
2,105,054
290,491
2,128,895
7,645
1,293,802
Estimate
of prior
year amounts
available in
2014-15
$'000
Special appropriations
Special appropriations limited
by criteria/entitlement
Aboriginal Lands Rights (Northern
Territory) Act 1976
Higher Education Support Act 2003
Indigenous Education (Targeted
Assistance) Act 2000
Total special appropriations
C
Total appropriations excluding
Special Accounts
Special Accounts
Opening balance7
Appropriation receipts8
Non-appropriation receipts to
Special Accounts
Total Special Accounts
D
Total resourcing
A+B+C+D
Less appropriations drawn from
annual or special appropriations above
and credited to special accounts
and/or CAC Act bodies through
annual appropriations
Total net resourcing for PM&C
+
Proposed
at Budget
=
Reader note: All figures are GST exclusive.
1
Appropriation Bill (No.1) 2014-15.
2
Estimated adjusted balance carried forward from previous year.
3
Includes an amount of $13.2 million in 2014-15 for the Departmental Capital Budget (refer to Table 3.2.5 for
further details). For accounting purposes this amount has been designated as 'contributions by owners'.
s31 Relevant Agency receipts – estimate.
4
5
Includes an amount of $0.2 million in 2014-15 for the Administered Capital Budget (refer to Table 3.2.10 for
further details). For accounting purposes this amount has been designated as 'contributions by owners'.
6
Appropriation Bill (No.2) 2014-15.
Estimated opening balance for Special Accounts (less ‘Special Public Money’ held in accounts like Services
for Other Entities and Trust Moneys (SOETM)). For further information on Special Accounts see
Table 3.1.2.
7
8
Appropriation receipts from the Department of Social Services annual and special appropriations for
2013-14 included above.
21
PM&C Budget Statements
Third Party Payments From and on Behalf of Other Agencies
Receipts received from other agencies for the provision of services
(disclosed above within Departmental section 31)
Payments made to CAC Act bodies within the Portfolio1
Aboriginal Hostels Limited
Indigenous Business Australia
Indigenous Land Corporation
Torres Strait Regional Authority
1
2014-15
$'000
8,613
39,400
71,296
9,551
48,244
2013-14
$'000
10,714
-
2013-14 payments to CAC Act bodies within the Portfolio were made prior to the Machinery of Government
changes that were reflected in the AAO of 18 September 2013, and then 12 December 2013. The losing
agencies will be reporting on the 2013-14 figures.
22
PM&C Budget Statements
1.3
BUDGET MEASURES
Budget measures in Part 1 relating to PM&C are detailed in Budget Paper No. 2 and
are summarised below.
Table 1.2: PM&C 2014-15 Budget Measures
Part 1: Measures Announced Since the 2013-14 MYEFO
Programme
Revenue measures
Smaller Government - Council of
Australian Governments Reform Council
— cessation1
Administered revenues
Departmental revenues
Total
Australia hosting the Group of 20
— reduced funding requirement
Administered expenses
Departmental expenses
Total
Smaller Government — Council of
Australian Governments Reform Council
— cessation1
Administered expenses
Departmental expenses
Total
Women's Leadership and Development
Strategy — savings
Administered expenses
Departmental expenses
Total
National Security Legislation Monitor
— cessation2
Administered expenses
Departmental expenses
Total
2014-15
$'000
2015-16
$'000
2016-17
$'000
2017-18
$'000
-
(2,600)
(2,600)
(2,600)
(2,600)
(2,500)
(2,500)
(2,500)
(2,500)
-
(2,600)
(2,600)
(2,600)
(2,600)
(2,500)
(2,500)
(2,500)
(2,500)
-
(868)
(868)
(729)
(729)
(1,092)
(1,092)
(1,102)
(1,102)
-
(7,000)
(7,000)
-
(4,178)
(4,178)
(4,845)
(4,845)
(4,715)
(4,715)
(4,716)
(4,716)
-
(390)
(390)
(395)
(395)
(402)
(402)
(370)
(370)
-
(336)
(336)
(330)
(330)
(329)
(329)
(332)
(332)
1.1
Total revenue measures
Administered
Departmental
Total
Expense measures
Efficiency Dividend — a further temporary
increase of 0.25 per cent
Administered expenses
Departmental expenses
Total
2013-14
$'000
All
1.1
-
-
-
1.1
1.1
1.1
continued on next page.
23
PM&C Budget Statements
Measures Announced Since the 2013-14 MYEFO (continued)
Programme
Indigenous Affairs Programmes
— rationalisation
Administered expenses
Departmental expenses
Total
Stronger participation incentives for job
seekers under 30
Administered expenses
Departmental expenses
Total
Migration Programme — allocation of places
for 2014-15
Administered expenses
Departmental expenses
Total
Remote School Attendance Strategy
— extension3
Administered expenses
Departmental expenses
Total
Clontarf Foundation Academy — expansion
Administered expenses
Departmental expenses
Total
Expanding opportunity — Higher Education
Indexation — revised arrangements
Administered expenses
Departmental expenses
Total
Permanent Police Presence in
Remote Indigenous Communities
Administered expenses
Departmental expenses
Total
Community Engagement Police Officers in
the Northern Territory
Administered expenses
Departmental expenses
Total
Support for the Northern Territory Child
Abuse Taskforce — continuation4
Administered expenses
Departmental expenses
Total
2013-14
$'000
2014-15
$'000
2015-16
$'000
2016-17
$'000
2017-18
$'000
-
(94,485)
(94,485)
(80,775) (87,507) (92,453)
(17,980) (17,980) (17,980)
(98,755) (105,487) (110,433)
-
6,045
6,045
2
2.1
17,225
17,225
19,808
19,808
19,775
19,775
2.1
-
(8)
(8)
(26)
(26)
(49)
(49)
(41)
(41)
-
-
-
-
-
-
1,089
1,089
2,842
2,842
4,701
4,701
4,785
4,785
-
-
-
6,409
482
6,891
13,035
204
13,239
13,283
203
13,486
20,322
202
20,524
-
1,000
1,000
500
500
500
500
500
500
-
-
-
-
-
2.2
2.2
2.2
(189)
(189)
(456)
(456)
(695)
(695)
2.3
2.3
2.3
continued on next page.
24
PM&C Budget Statements
Measures Announced Since the 2013-14 MYEFO (continued)
Programme
National Congress of Australia's First
Peoples — cessation
Administered expenses
Departmental expenses
Total
Outback Power
Administered expenses
Departmental expenses
Total
2013-14
$'000
2014-15
$'000
2015-16
$'000
2016-17
$'000
2017-18
$'000
-
(5,000)
(5,000)
(5,000)
(5,000)
(5,000)
(5,000)
-
2,500
77
2,577
2,545
77
2,622
2,598
77
2,675
2,653
76
2,729
-
(82,840)
(11,823)
(94,663)
(50,238)
(23,603)
(73,841)
(52,524)
(23,836)
(76,360)
(45,524)
(23,852)
(69,376)
2.4
-
2.5
Total expense measures
Administered expenses
Departmental expenses
Total
Prepared on a Government Financial Statistics (fiscal) basis.
1
In order to support the continued reduction in red tape the COAG Reform Council will be abolished. The
Productivity Commission will receive funding for one year to develop transitional reporting arrangements,
with PM&C continuing to monitor State and Territory performance on an ongoing basis.
In line with the Government’s commitment to streamline government processes, and now that all relevant
national security legislation has been reviewed, the Government has decided to abolish the role of the
Independent National Security Legislation Monitor. The Government introduced the Independent National
Security Legislation Repeal Bill 2014 (the Repeal Bill) on 19 March 2014 that abolishes the role of the
Monitor.
2
3
This measure is being funded from within existing resources.
4
Funding for this measure has been provided directly to the Australian Federal Police.
25
PM&C Budget Statements
1.4
TRANSITION TABLES – OUTCOME COMPONENTS
Since the publication of the 2013-14 Portfolio Additional Estimates Statements, PM&C
has changed the structure of ‘Outcome 2: Indigenous’. PM&C has moved from a single
programme structure ‘Programme 2.1: Indigenous’ to a six programme structure, with
five administered programmes and one departmental support programme.
A transition table from the Outcome 2 structure published in the 2013-14 Portfolio
Additional Estimates Statements to the 2014-15 Portfolio Budget Statements is shown
below in Figure 2.
Figure 2: Transition Table
2013-14 Additional Estimates
Outcome 2: Indigenous
2014-15 Budget Year
Outcome 2: Indigenous
Outcome Components:
Outcome Components:
2.1 Indigenous outcomes
2.1 Jobs Land and Economy
2.2 Children and Schooling
2.3 Safety and Wellbeing
2.4 Culture and Capability
2.5 Remote Australia Strategies
2.6 Programme Support
26
PM&C Budget Statements
Section 2: Outcomes and Planned Performance
2.1
OUTCOMES AND PERFORMANCE INFORMATION
Government outcomes are the intended results, impacts or consequences of actions by
the Government on the Australian community. Commonwealth programmes are the
primary vehicle by which Government agencies achieve the intended results of their
outcome statements. Agencies are required to identify the programmes which
contribute to Government outcomes over the Budget and forward years.
PM&C’s outcomes are described below together with their related programmes,
specifying the performance indicators and targets used to assess and monitor the
performance of PM&C in achieving Government outcomes.
OUTCOME 1: PRIME MINISTER AND CABINET
Outcome 1: Provide high quality policy advice and support to the Prime
Minister, the Cabinet, Portfolio Ministers and Parliamentary Secretaries
including through the coordination of government activities, policy
development and programme delivery.
Outcome 1 Strategy
PM&C’s role is to provide policy advice and support to the Prime Minister, the
Cabinet, Portfolio Ministers and Parliamentary Secretaries through a coordinated
approach to the development and implementation of government policies. More
specifically PM&C will:

provide advice on major domestic, international and national security policy,
including all matters considered by the Cabinet

provide support for meetings of the Cabinet, its committees and the Federal
Executive Council and the processes to facilitate the decision-making role of the
Cabinet

monitor the implementation of key government initiatives, policies, programmes
and reform agendas

develop the future leadership capability of the APS through the Secretary's role as
head of the APS and Chair of the Secretaries' Board.
PM&C also provides:

leadership on policy advice for the G20 agenda as well as delivering operational
and security arrangements for the conduct of the meetings
27
PM&C Budget Statements

advice to improve gender equality and support for women’s economic
empowerment and opportunity, safety and leadership

advice to promote better quality regulation in all areas of government to reduce
the costs for businesses, community organisations and individuals of regulation
which is unnecessary or poorly designed or which is administered in an
unnecessarily burdensome way.
28
PM&C Budget Statements
Outcome Expense Statement
Table 2.1 provides an overview of the total expenses for Outcome 1, by programme.
Table 2.1: Budgeted Expenses for Outcome 1
Outcome 1: Provide high quality policy advice and support
to the Prime Minister, the Cabinet, Portfolio Ministers
and Parliamentary Secretaries including through the
coordination of government activities, policy
development and programme delivery.
Programme 1.1: Prime Minister and Cabinet
Administered expenses
Ordinary annual services (Appropriation Bill No. 1)
Departmental expenses
Departmental appropriation1
Special Accounts
Expenses not requiring appropriation in the Budget year2
Total for Programme 1.1
2013-14
Estimated
actual
expenses
2014-15
Estimated
expenses
$'000
$'000
14,259
12,626
200,527
2
13,108
298,524
11,691
227,896
322,841
Outcome 1 Totals by appropriation type
Administered Expenses
Ordinary annual services (Appropriation Bill No. 1)
Departmental expenses
Departmental appropriation1
Special Accounts
Expenses not requiring appropriation in the Budget year2
14,259
12,626
200,527
2
13,108
298,524
11,691
Total expenses for Outcome 1
227,896
322,841
Average Staffing Level (number)
2013-14
8073
2014-15
717
Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of
the Budget year as government priorities change.
Departmental appropriation combines ‘Ordinary annual services (Appropriation Bill No. 1)’ and ‘Revenue
from independent sources (s31)’.
1
2
Expenses not requiring appropriation in the Budget year is made up of depreciation expense, amortisation
expense, makegood expense and the treatment of the provision for former Governors-General entitlements.
3
The increase from the ASL of 788 reported in the 2013-14 PAES document is due to the part year effect of
staff transferred into or out of the Department under the AAO of 18 September 2013, and then
12 December 2013. The Machinery of Government changes disguise an underlying decrease in staff
numbers.
29
PM&C Budget Statements
Contributions to Outcome 1
Programme 1.1: Prime Minister and Cabinet
Programme Objective
The objectives of this programme are to:

provide advice and support to the Prime Minister, the Cabinet, Portfolio
Ministers and Parliamentary Secretaries, and coordination across Government,
on major domestic, international and national security policies

provide support to the Cabinet and its committees, the Federal Executive
Council and COAG to facilitate informed decision making

provide support for the operations of the Prime Minister’s official residences
and to former and designated Governors-General official offices

provide support for major events and meetings and coordinating the logistical
arrangements for the Prime Minister’s overseas visits.
PM&C will also seek to strengthen the global economy and collaboration between
major economies through supporting the chairing of the G20 in 2014.
30
PM&C Budget Statements
Programme 1.1 Expenses
The changes in programme expenses across the forward years are driven by
variations in the aggregated expenditure profile of programmes transferred into the
Department following the 2013 Machinery of Government changes and expenditure
arising from new policy proposals agreed in the 2014-15 Budget.
2013-14
Estimated
actual
$'000
Annual administered expenses:
Compensation and Legal Expenses
National Australia Day Council Limited
National Compact, Philanthropy and
Volunteering
National Counter Terrorism Committee
Secretariat
Office for Women
Parliament House Briefing Room
Prime Minister's Official Residences
State Occasions and Official Visits
Support to the former Governors-General1
Special Account Expenses:
Services for Other Entities and Trust
Moneys
Departmental appropriation2
Expenses not requiring appropriation in
the Budget year3
Total Programme expenses
2014-15
Budget
$'000
2015-16
Forward
estimate
$'000
2016-17
Forward
estimate
$'000
2017-18
Forward
estimate
$'000
115
3,408
117
3,438
120
3,469
121
3,530
123
3,615
2,616
-
-
-
-
111
2,670
424
1,611
3,152
152
111
3,510
431
1,697
3,322
-
112
3,570
447
1,770
3,588
-
113
3,642
454
1,813
3,674
-
114
3,349
464
1,856
3,764
-
2
200,527
298,524
105,639
103,757
104,939
13,108
227,896
11,691
322,841
11,205
129,920
8,961
126,065
8,990
127,214
1
2013-14 expense relates to a one off payment to the designated Governors-General.
Departmental appropriation combines ‘Ordinary annual services (Appropriation Bill No. 1)’ and ‘Revenue
from independent sources (s31)’.
2
3
Expenses not requiring appropriation in the Budget year is made up of depreciation expense,
amortisation expense, makegood expense and the treatment of the provision for former GovernorsGeneral entitlements.
31
PM&C Budget Statements
Programme 1.1 Deliverables


policy advice and support to the Prime Minister, the Cabinet, Portfolio
Ministers and Parliamentary Secretaries in key areas including:
o
domestic policy matters, strategic priorities, and implementation
o
foreign, trade and aid policy, including bilateral relations and engagement
with regional and international partners
o
Defence matters, including Australian Defence Force operations,
international Defence cooperation and engagement, force posture and
structure and Defence reforms
o
national security matters
o
the development of White Papers on Reform of the Federation, and
Agricultural Competitiveness and Northern Australia, as well as support
the Review of the Renewable Energy Target
o
commemorative events, including Anzac Centenary commemorations
o
parliamentary, Machinery of Government and legal policy
o
Australia’s honours system and national symbols.
leadership,
policy
coordination,
monitoring
and
coordinated
Whole-of-Government responses to Government’s decisions, policies and
strategic priorities including:
o
enhanced regional engagement, integrated cyber policy and effective
national security partnerships
o
countering people smuggling and irregular migration issues
o
major national security related crises or emergencies
o
Australia's national security community and national intelligence
community
o
developing COAG’s agenda and support for COAG’s work programme.

provision of secretariat and support services for the Cabinet, its committees
and the Federal Executive Council

provision of services for the Prime Minister, Portfolio Ministers, Parliamentary
Secretaries and their ministerial offices

management of visits by, and hospitality for, guests of the Government and
Heads of State, delivery of support for major events, ceremonies and state
occasions and coordination of logistical arrangements for the Prime Minister’s
overseas visits
32
PM&C Budget Statements

provision of support for the operations of the Prime Minister’s official
residences and related matters and provision of entitlements to former
Governors-General (excluding pension entitlements)

policy development, operational and security arrangements for Australia’s role
in the G20

leadership, policy coordination, and communicating measures and benefits for
women including reducing violence against women, women’s economic
empowerment and opportunity and women’s leadership and status

development of
management.
more
efficient
33
regulation
and
effective
regulatory
PM&C Budget Statements
Programme 1.1 Key Performance Indicators

high quality, relevant and timely advice and support to the Prime Minister,
including to support him in his role as the Chair of the Cabinet and all
committees, Portfolio Ministers and Parliamentary Secretaries based on an
objective and thorough understanding of issues and Whole-of-Government
perspective

regular, timely and collaborative communication and cooperation with other
central agencies, portfolio departments and other key stakeholders

coordination and support for COAG meetings

leadership and coordination of the national security community to promote a
national security system that anticipates threats, responds effectively to crises
and major security events, protects the nation and shapes the world in
Australia’s interest

advancement of the Government’s international priorities that promote
Australia’s security, prosperity, international profile and influence

advice and support for key stakeholders for state occasions, official visits,
operations of the Prime Minister’s official establishments and former
Governors-General that is timely, relevant and of high quality

advance Australia’s interests through the G20

lead the implementation of government deregulation reforms including
delivering on the Government’s $1 billion net portfolio targets for reduction in
the burden of regulation, repeal days and Ministerial Advisory Bodies and a
regulator performance framework

high quality and timely advice to departments and agencies on best practice
regulation making, consistent with the requirements of the Australian
Government Guide to Regulation and the COAG’s Best Practice Regulation
Guide

provide timely advice and funding to external stakeholders that provide
programmes and support to promote women’s economic empowerment and
opportunity, reducing violence against women, and women’s leadership and
status.
34
PM&C Budget Statements
OUTCOME 2: INDIGENOUS
Outcome 2: Improve results for Indigenous Australians including in relation to
school attendance, employment and community safety, through delivering
services and programmes, and through measures that recognise the special
place that Indigenous people hold in this Nation.
Outcome 2 Strategy
PM&C, through Outcome 2, provides advice and support to the Prime Minister, the
Minister for Indigenous Affairs and the Cabinet, and applies the Government’s
policies, programmes and legislation with a view to ensuring the Government’s
priorities in Indigenous affairs are implemented. These priorities are ensuring children
go to school, adults work, Indigenous business is fostered, the ordinary rule of law is
observed in Indigenous communities as in other Australian communities, and
Indigenous culture is supported.
As well as administering Indigenous specific programmes, working closely with other
Australian Government Departments, PM&C leads efforts to ensure that mainstream
programmes and services deliver benefits to Indigenous Australians.
The Government is supported in this by the Prime Minister’s Indigenous Advisory
Council.
A high priority is giving effect to the Government’s commitment for a new
engagement with Indigenous Australians, and achieving results for Indigenous people
in the Government’s priority areas.
In addition, PM&C will work closely with the Attorney-General’s Department (AGD)
to deliver the Government’s commitment to recognise Indigenous Australians in the
Constitution.
From 1 July 2014, all Indigenous programmes transferred to PM&C will be
consolidated under Outcome 2, into the Indigenous Advancement Strategy that has
five streamlined administered programmes which reflect the priorities of the
Government:
1) Jobs, Land and Economy – getting adults into work, fostering Indigenous business
and assisting Indigenous people to generate economic and social benefits from
effective use of their land, particularly in remote areas.
2) Children and Schooling – getting children to school, particularly in remote
Indigenous communities, improving education outcomes and supporting families
to give children a good start in life. This programme includes measures to improve
access to further education.
35
PM&C Budget Statements
3) Safety and Wellbeing – ensuring the ordinary law of the land applies in Indigenous
communities, particularly remote Indigenous communities, and that Indigenous
people enjoy similar levels of physical, emotional and social wellbeing enjoyed by
other Australians.
4) Culture and Capability – supporting Indigenous Australians to maintain their
culture, participate equally in the economic and social life of the nation and that
Indigenous organisations are capable of delivering quality services to their clients,
particularly in remote areas.
5) Remote Australia Strategies – strategic investments in local, flexible solutions based
on community and Government priorities. Support for remote housing strategies
focusses on achieving results in Government priority areas.
These new programmes will reduce programme duplication and fragmentation,
reduce delivery costs and more clearly link activity to outcomes. In turn there is a
reduction in programme funding associated with these efficiencies.
Under this strategy, communities will have the key role in designing and delivering
local solutions to local problems. The simplified approach to funding will dramatically
reduce the red tape burden on communities and providers. There will be a new
Remote Community Advancement Network (RCAN) in PM&C headed by a National
Director.
Priorities for the Department during 2014-15 include improving school attendance and
employment rates and reducing the incidence of crime and violence in remote
Indigenous communities.
In relation to school attendance, the Department will work with State and Territory
governments to close the gap in Indigenous school attendance in five years.
In relation to community safety, priorities include delivering police infrastructure to
support a Permanent Police Presence in some remote Indigenous communities;
continuing to support the Northern Territory Government through a funding
contribution to the Northern Territory Government for Community Engagement
Police Officers; and extending Commonwealth support for the Northern Territory
Child Abuse Taskforce.
Some strategies to address these priorities will also increase economic, employment
and social participation for all Australians living in remote Australia.
36
PM&C Budget Statements
Outcome Expense Statement
Table 2.1 provides an overview of the total expenses for Outcome 2, by programme.
The changes in programme expenses across the forward years are driven by variations
in the aggregated expenditure profile of programmes transferred into PM&C
following the 2013 Machinery of Government changes and expenditure arising from
new policy proposals agreed in the 2014-15 Budget.
Table 2.1: Budgeted Expenses for Outcome 2
Outcome 2: Improve results for Indigenous Australians
including in relation to school attendance, employment
and community safety, through delivering services and
programmes, and through measures that recognise the
special place that Indigenous people hold in this Nation.
Programme 2.1: Indigenous
Administered expenses
Ordinary annual services (Appropriation Bill No. 1)
Other services (Appropriation Bill No. 2)
Special appropriations
Special Accounts
Departmental expenses
Departmental appropriation1
Expenses not requiring appropriation in the Budget year2
Total for Programme 2.1
Programme 2.1: Jobs, Land and Economy
Administered expenses
Ordinary annual services (Appropriation Bill No. 1)3
Special appropriations
Special Accounts
Total for Programme 2.1
Programme 2.2: Children and Schooling
Administered expenses
Ordinary annual services (Appropriation Bill No. 1)
Other services (Appropriation Bill No. 2)
Special appropriations
Special Accounts
Total for Programme 2.2
Programme 2.3: Safety and Wellbeing
Administered expenses
Ordinary annual services (Appropriation Bill No. 1)3
Total for Programme 2.3
Programme 2.4: Culture and Capability
Administered expenses
Ordinary annual services (Appropriation Bill No. 1)
Total for Programme 2.4
2013-14
Estimated
actual
expenses
2014-15
Estimated
expenses
$'000
$'000
748,662
23,837
86,059
27,085
166,214
5
-
1,051,862
-
-
643,884
122,955
193,426
-
960,265
-
218,332
8,517
55,802
5
-
282,656
-
272,772
-
272,772
-
35,381
-
35,381
continued on next page.
37
PM&C Budget Statements
Table 2.1: Budgeted Expenses for Outcome 2 (continued)
Outcome 2: Improve results for Indigenous Australians
including in relation to school attendance, employment
and community safety, through delivering services and
programmes, and through measures that recognise the
special place that Indigenous people hold in this Nation.
Programme 2.5: Remote Australia Strategies
Administered expenses
Ordinary annual services (Appropriation Bill No. 1)3
Total for Programme 2.5
Programme 2.6: Programme Support
Departmental expenses
Departmental appropriation1
Expenses not requiring appropriation in the Budget year2
Total for Programme 2.6
Outcome 2 Totals by appropriation type
Administered expenses
Ordinary annual services (Appropriation Bill No. 1)3
Other services (Appropriation Bill No. 2)
Special appropriations
Special Accounts
Departmental expenses
Departmental appropriation1
Expenses not requiring appropriation in the Budget year2
Total expenses for Outcome 2
Less appropriations drawn from annual or special appropriations
above and credited to special accounts
Total net expenses for Outcome 2
Average Staffing Level (number)
2013-14
Estimated
actual
expenses
2014-15
Estimated
expenses
$'000
$'000
-
113,176
-
113,176
-
286,946
9
-
286,955
748,662
23,837
86,059
27,085
1,283,545
8,517
178,757
193,431
166,214
5
286,946
9
1,051,862
1,951,205
(7,645)
1,044,217
(122,000)
1,829,205
2013-14
913
2014-15
1,5974
Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of
the Budget year as government priorities change.
Departmental appropriation combines ‘Ordinary annual services (Appropriation Bill No. 1)’ and ‘Revenue
from independent sources (s31)’.
1
2
Expenses not requiring appropriation in the Budget year is made up of depreciation expense.
3
Ordinary annual services (Appropriation Bill No. 1) includes payments made to CAC Act bodies.
4
Increase in ASL from 2013-14 to 2014-15 is due to the part year effect of the transfer of the Indigenous
Affairs function from various agencies under the AAO of 18 September 2013, and then 12 December 2013.
38
PM&C Budget Statements
Contributions to Outcome 2
Programme 2.1: Indigenous Advancement – Jobs, Land and Economy
Programme 2.1 Objective
The objectives of this programme are to:

get Indigenous Australians into work

foster Indigenous business

assist Indigenous people to generate economic and social benefits from
effective management of their land.
Linked to: Department of Human Services (DHS) Indigenous Wage Subsidy Card
and Community Development Employment Projects Programme. For more
information please refer to DHS’ 2014-15 PB Statements.
Also linked to: The Native Title Respondent Funding Scheme (Programme 1.3),
administered by the AGD has similar objectives to the AGD’s Native Title Unit and
shares the same legislation (Programme 1.5). The Native Title Unit shares
responsibility for the Native Title Act 1993, with PM&C. An example of a programme
with similar objectives to PM&C is the Native Title Anthropologist Grants
Programme, administered by the AGD. For more information please refer to AGD’s
2014-15 PB Statements.
Also linked to: Department of the Environment’s Programme 1.1 Sustainable
Management of Natural Resources. For more information please refer to
Environment’s 2014-15 PB Statements.
Also linked to: Department of Employment’s Programme 1.1 Employment Services,
Programme 1.2 Indigenous Employment and Programme 1.4 Remote Jobs and
Communities Programme. For more information please refer to Employment’s
2014-15 PB Statements.
39
PM&C Budget Statements
Programme 2.1 Expenses
The changes in programme expenses across the forward years are driven by
variations in the aggregated expenditure profile of programmes transferred into the
Department following the 2013 Machinery of Government changes and expenditure
arising from new policy proposals agreed in the 2014-15 Budget.
2013-14
Estimated
actual
$'000
Annual administered expenses:
Ordinary annual services (Appropriation
Bill No. 1)1
Special Appropriations:
Aboriginal Land Rights (Northern
Territory) Act 1976
Aboriginals Benefit Account
Ranger Agreement
Special Account Expenses:
Aboriginal and Torres Strait Islander Land
Account
Aboriginals Benefit Account
Total Programme expenses
Less appropriations drawn from special
appropriations above and credited to
special accounts
Total net Programme expenses
2014-15
Budget
$'000
2015-16
Forward
estimate
$'000
2016-17
Forward
estimate
$'000
2017-18
Forward
estimate
$'000
-
643,884
698,272
689,084
660,526
-
122,000
955
146,000
979
135,000
1,003
135,000
1,028
-
50,089
143,337
960,265
51,128
137,353
1,033,732
52,445
123,896
1,001,428
53,799
123,896
974,249
-
(122,000)
838,265
(146,000)
887,732
(135,000) (135,000)
866,428
839,249
Ordinary annual services (Appropriation Bill No. 1) includes payments made to CAC Act bodies .
1
40
PM&C Budget Statements
Programme 2.1 Deliverables

increased Indigenous employment, business and economic development.
Programme 2.1 Key Performance Indicators*

increase in the Indigenous employment and participation rates

number of employment places filled with assistance by the Indigenous
Advancement - Jobs, Land and the Economy programme and proportion
retained to 26 weeks

proportion of job seekers in employment, education or training three months
following participating in the Indigenous Advancement – Jobs, Land and the
Economy programme

number of Indigenous ranger jobs contracted

number of Native Title claims finalised**

number of land claims being progressed or finalised under Commonwealth
land rights legislation and number of township leases being negotiated, agreed
or in place.
*Note: Indicators shown are those where data is available. Areas such as social participation, organisational
effectiveness and enhanced environmental outcomes are under consideration. Indicators regarding
employment, education and community safety will be disaggregated by remoteness where data is available.
**Note: Progress of Native Title claims is influenced by the activities of various parties in the Native Title
system, including the Federal Court of Australia and State and Territory governments. Some parts of the
system are funded by the AGD.
41
PM&C Budget Statements
Programme 2.2: Indigenous Advancement – Children and Schooling
Programme 2.2 Objective
The objectives of this programme are to:

get children to school

improve education outcomes

support families to give children a good start in life.
Linked to: Department of Social Services (DSS) Programme 2.1 Families and
Communities. For more information please refer to DSS’ 2014-15 PB Statements.
Also linked to: Department of Human Services (DHS) School Enrolment and
Attendance Measure and School Nutrition Programme. For more information please
refer to DHS’ 2014-15 PB Statements.
Programme 2.2 Expenses
The changes in programme expenses across the forward years are driven by
variations in the aggregated expenditure profile of programmes transferred into the
Department following the 2013 Machinery of Government changes and expenditure
arising from new policy proposals agreed in the 2014-15 Budget.
2013-14
Estimated
actual
$'000
Annual administered expenses:
Ordinary annual services (Appropriation
Bill No. 1)
Other services (Appropriation Bill No. 2)
Special Appropriations:
Higher Education Support Act 2003
Commonwealth Scholarship Programme
Indigenous Support Programme
Special Account Expenses:
Aboriginal Tutorial Assistance
Superannuation Scheme
Total Programme expenses
42
2014-15
Budget
$'000
2015-16
Forward
estimate
$'000
2016-17
Forward
estimate
$'000
2017-18
Forward
estimate
$'000
-
218,332
8,517
217,006
8,647
224,066
7,648
224,857
7,762
-
16,429
39,373
17,065
39,910
17,717
40,871
15,204
41,912
-
5
282,656
5
282,633
5
290,307
5
289,740
PM&C Budget Statements
Programme 2.2 Deliverables

increased Indigenous school attendance and improved educational outcomes.
Programme 2.2 Key Performance Indicators*

Indigenous school attendance rates in remote areas

Year 12 or equivalent attainment – number and proportion of Indigenous
young people (aged 20-24) with year 12 or equivalent Australian Qualifications
Framework (AQF) Certificate II level (or above)

higher education – number and proportion of Indigenous 20-64 year olds with
or working towards post school qualification in AQF Certificate III level or
above

percentage of Indigenous students meeting National Minimum Standards in
National Assessment Programme – Literacy and Numeracy (NAPLAN).
*Note: Indicators shown are those where data is available. Areas such as social participation, organisational
effectiveness and enhanced environmental outcomes are under consideration. Indicators regarding
employment, education and community safety will be disaggregated by remoteness where data is available.
43
PM&C Budget Statements
Programme 2.3: Indigenous Advancement – Safety and Wellbeing
Programme 2.3 Objective
The objectives of this programme are to:

ensure that the ordinary law of the land applies in Indigenous communities

ensure Indigenous people enjoy similar levels of physical, emotional and social
wellbeing enjoyed by other Australians.
Linked to: DSS Programme 2.1 Families and Communities. For more information
please refer to DSS’ 2014-15 PB Statements.
Also linked to: Department of Health’s Programme 5.3 Aboriginal and Torres Strait
Islander Health. For more information please refer to Health’s 2014-15 PB
Statements.
Programme 2.3 Expenses
The changes in programme expenses across the forward years are driven by
variations in the aggregated expenditure profile of programmes transferred into the
Department following the 2013 Machinery of Government changes and expenditure
arising from new policy proposals agreed in the 2014-15 Budget.
2013-14
Estimated
actual
$'000
Annual administered expenses:
Ordinary annual services (Appropriation
Bill No. 1)1
Total Programme expenses
-
1
2014-15
Budget
$'000
272,772
272,772
2015-16
Forward
estimate
$'000
2016-17
Forward
estimate
$'000
2017-18
Forward
estimate
$'000
284,011
284,011
288,571
288,571
300,688
300,688
Ordinary annual services (Appropriation Bill No. 1) includes payments made to CAC Act bodies.
44
PM&C Budget Statements
Programme 2.3 Deliverables

reduced levels of offending, violence and substance abuse.
Programme 2.3 Key Performance Indicators*

number of initiatives implemented in Indigenous communities to reduce
violence

number of organisations providing Indigenous specific alcohol and other drug
treatment services and activities

number of sites providing low aromatic fuel.
*Note: Indicators shown are those where data is available. Areas such as social participation, organisational
effectiveness and enhanced environmental outcomes are under consideration. Indicators regarding
employment, education and community safety will be disaggregated by remoteness where data is available.
45
PM&C Budget Statements
Programme 2.4: Indigenous Advancement – Culture and Capability
Programme 2.4 Objective
The objectives of this programme are to:

support Indigenous Australians to maintain their culture and participate
equally in the economic and social life of the Nation

ensure that Indigenous organisations are capable of delivering quality services
to their clients.
Linked to: The AGD Programme 2.1 Arts and Cultural Development. For more
information please refer to AGD’s 2014-15 PB Statements.
Programme 2.4 Expenses
The changes in programme expenses across the forward years are driven by
variations in the aggregated expenditure profile of programmes transferred into the
Department following the 2013 Machinery of Government changes and expenditure
arising from new policy proposals agreed in the 2014-15 Budget.
2013-14
Estimated
actual
$'000
Annual administered expenses:
Ordinary annual services (Appropriation
Bill No. 1)
Total Programme expenses
-
46
2014-15
Budget
$'000
35,381
35,381
2015-16
Forward
estimate
$'000
2016-17
Forward
estimate
$'000
2017-18
Forward
estimate
$'000
35,726
35,726
36,296
36,296
32,862
32,862
PM&C Budget Statements
Programme 2.4 Deliverables

progress towards a referendum on constitutional recognition

participation in society

organisational capability.
Programme 2.4 Key Performance Indicators*

release of a draft proposal for a constitutional amendment to recognise
Indigenous peoples and completion of a review under the Aboriginal and Torres
Strait Islander Peoples Recognition Act 2013

number of cultural projects and activities supported

increased proportion of Indigenous organisations receiving significant funding
from the Australian Government under this outcome which are registered
under the Corporations (Aboriginal and Torres Strait Islander Act) 2006.
*Note: Indicators shown are those where data is available. Areas such as social participation, organisational
effectiveness and enhanced environmental outcomes are under consideration. Indicators regarding
employment, education and community safety will be disaggregated by remoteness where data is available.
47
PM&C Budget Statements
Programme 2.5: Indigenous Advancement – Remote Australia Strategies
Programme 2.5 Objective
The objectives of this programme are:

strategic investments in local, flexible solutions based on community and
Government priorities

support for remote housing strategies.
Linked to: DSS Programme 2.1 Families and Communities. For more information
please refer to DSS’ 2014-15 PB Statements.
Programme 2.5 Expenses
The changes in programme expenses across the forward years are driven by
variations in the aggregated expenditure profile of programmes transferred into the
Department following the 2013 Machinery of Government changes and expenditure
arising from new policy proposals agreed in the 2014-15 Budget.
2013-14
Estimated
actual
$'000
Annual administered expenses:
Ordinary annual services (Appropriation
Bill No. 1)1
Total Programme expenses
-
1
2014-15
Budget
$'000
113,176
113,176
2015-16
Forward
estimate
$'000
2016-17
Forward
estimate
$'000
2017-18
Forward
estimate
$'000
108,543
108,543
104,041
104,041
102,329
102,329
Ordinary annual services (Appropriation Bill No. 1) includes payments made to CAC Act bodies.
48
PM&C Budget Statements
Programme 2.5 Deliverables

invest in local, flexible solutions based on community priorities

invest in remote housing.
Programme 2.5 Key Performance Indicators*

number of standardised tenancy agreements in place in relation to houses
located on Indigenous land

number of community based Indigenous Advancement Strategies developed

number of new home owners on Indigenous land.
*Note: Indicators shown are those where data is available. Areas such as social participation, organisational
effectiveness and enhanced environmental outcomes are under consideration. Indicators regarding
employment, education and community safety will be disaggregated by remoteness where data is available.
49
PM&C Budget Statements
Programme 2.6: Indigenous Advancement – Programme Support
The creation of a single Indigenous programme in PM&C was intended to be a
temporary arrangement to facilitate the Machinery of Government changes following
the 2013 Federal election. Since PM&C’s Portfolio Additional Estimates was published,
Programme 2.1: Indigenous has been split into five administered programmes and one
departmental support programme to increase transparency and accountability and to
more closely align with the Government’s priorities in Indigenous affairs. The new
arrangements give effect to the Government’s commitment to reduce red-tape and
duplication and ensure resources are invested on the ground where they are most
needed.
Programme 2.6 Expenses
Departmental appropriation
Expenses not requiring appropriation in
the Budget year1
Total Programme expenses
2013-14
Estimated
actual
$'000
-
1
2014-15
Budget
$'000
286,946
2015-16
Forward
estimate
$'000
263,453
2016-17
Forward
estimate
$'000
264,088
2017-18
Forward
estimate
$'000
264,830
9
286,955
13
263,466
16
264,104
20
264,850
Expenses not requiring appropriation in the Budget year is made up of depreciation expense.
50
PM&C Budget Statements
Section 3: Explanatory Tables and Budgeted Financial
Statements
Section 3 presents explanatory tables and budgeted financial statements which
provide a comprehensive snapshot of agency finances for the 2014-15 Budget year. It
explains how budget plans are incorporated into the financial statements and provides
further details of the reconciliation between appropriations and programme expenses,
movements in administered funds, special accounts and Government Indigenous
expenditure.
3.1
EXPLANATORY TABLES
3.1.1 Movement of Administered Funds Between Years
PM&C does not have any reportable movement of funds between years.
51
PM&C Budget Statements
3.1.2 Special Accounts
Special accounts provide a means to set aside and record amounts used for specified
purposes. Special accounts can be created by a Finance Minister’s Determination
under the FMA Act or under separate enabling legislation. Table 3.1.2 shows the
expected additions (receipts) and reductions (payments) for each account used by
PM&C.
Table 3.1.2: Estimates of Special Account Flows and Balances
Outcome
Services for Other Entities and Trust
Moneys Special Account - Department
of the Prime Minister and Cabinet - s20
FMA Act Det 2008/13 (D)
Opening
balance
2014-15
2013-14
$'000
Receipts
2014-15
2013-14
$'000
Payments
2014-15
2013-14
$'000
Adjustments1
2014-15
2013-14
$'000
Closing
balance
2014-15
2013-14
$'000
1
47
47
2
(2)
-
47
47
2
710
-
-
710
710
710
2
-
78,217
-
(50,089)
-
24,428
-
52,556
-
Aboriginals Benefit Account - s21 FMA
Act - Aboriginal Land Rights (Northern
Territory) Act 1976 Det 1976/62 (A)
2
-
138,870
-
(143,337)
-
26,379
-
21,912
-
Aboriginal Tutorial Assistance
Superannuation Special Account s20 FMA Act Det 2003/45 (A)
2
30
-
35
35
(5)
(5)
-
60
30
2
200
-
3,410
(3,410)
200
200
200
2
-
769
(23,670)
22,901
-
Total Special Accounts
2014-15 Budget estimate
987
217,122
(193,431)
50,807
75,485
Total Special Accounts
2013-14 estimated actual
47
4,216
(27,087)
23,811
987
Aboriginal and Torres Strait Islander
Corporations Unclaimed Money
Account - s21 FMA Act - Corporations
(Aboriginal and Torres Strait Islander)
Act 2006 Det 2006/551-20 (A)
Aboriginal and Torres Strait Islander
Land Account - s21 FMA Act - Aboriginal
and Torres Strait Islander Commission
Act 2005 Det 2005/192W (A)
Indigenous Communities Strategic
Investment Programme Special
Account - s20 FMA Act Det 2008/24
(A)
Indigenous Remote Service Delivery
Special Account - s20 FMA Act
Det 2010/06 (A)2
(A) = Administered
(D) = Departmental
1
Includes opening balance adjustments for Special Accounts that were transferred to the Department from
various agencies under the AAO of 18 September 2013, and then 12 December 2013.
2
The Indigenous Remote Service Delivery Special Account terminates on 30 June 2014.
52
PM&C Budget Statements
3.1.3 Australian Government Indigenous Expenditure
The Australian Government Indigenous Expenditure (AGIE) report provides a
breakdown of the estimated Indigenous expenditure administered by each portfolio.
Table 3.1.3 shows the estimated Indigenous expenditure in 2013-14 and 2014-15 by
appropriation and outcome that is administered by PM&C only. The increase in AGIE
expenditure from 2013-14 to 2014-15 reflects the part year effect of the transfer of the
Indigenous functions in 2013-14 due to the Machinery of Government changes.
Indigenous expenditure administered by other portfolios is reported in their
respective PB Statements.
Table 3.1.3: Australian Government Indigenous Expenditure (AGIE)
Bill
No. 1
$'000
Appropriations
Bill
Special
No. 2 approp
$'000
$'000
Total
approp
$'000
Other¹
Total
$'000
$'000
Prime Minister and Cabinet
Outcome 2
Indigenous
Administered 2014-153
Administered 2013-14
Departmental 2014-15
Departmental 2013-14
Total outcome 2014-15
Total outcome 2013-14
1,283,545
8,517 178,757
748,662 23,837 86,059
286,946
166,214
1,570,491
8,517 178,757
914,876 23,837 86,059
1,470,819
858,558
286,946
166,214
1,757,765
1,024,772
71,431
19,440
9
5
71,440
19,445
1,542,250
877,998
286,955
166,219
1,829,205
1,044,217
Total administered 2014-153
Total administered 2013-14
1,283,545
8,517 178,757
748,662 23,837 86,059
1,470,819
858,558
71,431
19,440
1,542,250
877,998
-
286,946
166,214
9
5
286,955
166,219
1,570,491
8,517 178,757
914,876 23,837 86,059
1,757,765
1,024,772
71,440
19,445
1,829,205
1,044,217
Total departmental 2014-15
Total departmental 2013-14
Total AGIE 2014-153
Total AGIE 2013-14
286,946
166,214
-
1
Programme2
Includes Special Account payments less appropriations drawn from annual or special appropriations and
credited to Special Accounts and depreciation expenses.
2
Refer to Programme 2.1 - 2.6 Expenses tables.
3
Appropriation Bill No. 1 includes payments made to CAC Act bodies.
53
PM&C Budget Statements
3.2
BUDGETED FINANCIAL STATEMENTS
3.2.1 Differences in Agency Resourcing and Financial Statements
Departmental
The Agency Resource Statement (Table 1.1) provides a consolidated view of all the
resources available to PM&C in 2014-15. For departmental items this includes equity
injections and appropriation receivable that is yet to be drawn down to cover payables
and provisions on the Balance Sheet. The Comprehensive Income Statement
(Table 3.2.1) shows only the operating appropriation provided each year.
Administered
The 2014-15 administered expense figures in Table 1.1 includes the cash appropriation
for payments for former Governors-General entitlements. A provision for the total
estimated value of these entitlements is recognised in the financial statements at the
time each Governor-General retires. Accordingly, payment of these entitlements
results in a reduction to the provision rather than an operating expense.
The Schedule of Budgeted Income and Expenses Administered on Behalf of
Government (Table 3.2.7) includes non-cash appropriation items including
depreciation and amortisation expense, makegood and the provision for former
Governors-General entitlements.
3.2.2 Analysis of Budgeted Financial Statements
Departmental
Comprehensive Income Statement
Total income in 2014-15 is budgeted at $587.6 million (2013-14: $368.0 million).
Revenue from Government (appropriation funding) is $576.9 million
(2013-14: $356.0 million). The increase reflects the full year effect of the transfer of
Indigenous functions from across the Australian Government to PM&C.
Balance Sheet
The Budgeted Departmental Balance Sheet shows an improvement in the net asset
position of the Department from 2013-14 to 2014-15 as the final transfer of assets and
liabilities from Machinery of Government changes occurs.
54
PM&C Budget Statements
Administered
Schedule of Budgeted Income and Expenses Administered on Behalf of Government
Total expense in 2014-15 is budgeted at $1,555.6 million (2013-14: $896.7 million). The
increase reflects the full year effect of the transfer of the Indigenous Affairs functions
from across the Australian Government to PM&C. Interest revenue relates to special
account receipts for the Aboriginals Benefit Account (ABA) and Aboriginal and Torres
Strait Islander Land Account (ATSILA).
Schedule of Budgeted Assets and Liabilities Administered on Behalf of Government
Net assets administered on behalf of Government has increased $4,152.1 million due to
the consolidation of investment balances held by the Aboriginal Benefits Account
(ABA) and the Aboriginal and Torres Strait Islander Land Account (ATSILA)
($2,397.5 million) and the recognition of ten CAC Act Investment Bodies
($1,755.5 million) transferred with the Indigenous Affairs function.
55
PM&C Budget Statements
3.2.3 Budgeted Financial Statements Tables
Table 3.2.1 Comprehensive Income Statement (Showing Net Cost of Services)
for the period ended 30 June
Estimated
actual
2013-14
$'000
Budget
estimate
2014-15
$'000
Forward
estimate
2015-16
$'000
Forward
estimate
2016-17
$'000
Forward
estimate
2017-18
$'000
224,659
142,747
612
7,380
23
375,421
297,355
290,189
45
8,836
24
596,449
285,606
84,802
9,331
24
379,763
279,156
90,025
7,068
25
376,274
272,706
98,399
7,072
25
378,202
LESS:
OWN-SOURCE INCOME
Own-source revenue
Sale of goods and rendering of services
Total own-source revenue
10,714
10,714
8,613
8,613
3,095
3,095
3,185
3,185
3,185
3,185
Gains
Other
Total gains
Total own-source income
1,300
1,300
12,014
2,143
2,143
10,756
1,340
1,340
4,435
1,361
1,361
4,546
1,361
1,361
4,546
Net cost of (contribution by)
services
363,407
585,693
375,328
371,728
373,656
Revenue from Government
356,027
576,857*
365,997*
364,660*
366,584*
EXPENSES
Employee benefits
Suppliers
Grants
Depreciation and amortisation
Finance costs
Total expenses
Surplus (Deficit) attributable to
the Australian Government
(7,380)
(8,836)
(9,331)
(7,068)
(7,072)
Total comprehensive income (loss)
(7,380)
(8,836)
(9,331)
(7,068)
(7,072)
Total comprehensive income (loss)
attributable to the Australian
Government
(7,380)
(8,836)
(9,331)
(7,068)
(7,072)
Prepared on Australian Accounting Standards basis.
56
PM&C Budget Statements
Table 3.2.1 Comprehensive Income Statement (Showing Net Cost of Services)
for the period ended 30 June (continued)
Note: Impact of Net Cash Appropriation Arrangements
2013-14
2014-15
$'000
$'000
Total Comprehensive Income
(loss) excluding depreciation/amortisation
expenses previously funded through
revenue appropriations
-
2015-16
$'000
2016-17
$'000
2017-18
$'000
-
-
-
less depreciation/amortisation expenses
previously funded through revenue
appropriations1
7,380
8,836
9,331
7,068
7,072
Total Comprehensive Income
(loss) - as per the Statement of
Comprehensive Income
(7,380)
(8,836)
(9,331)
(7,068)
(7,072)
Prepared on Australian Accounting Standards basis.
1
From 2010-11, the Government introduced net cash appropriation arrangements where Bill 1 revenue
appropriations for the depreciation/amortisation expenses of FMA Act agencies were replaced with a
separate capital budget (the Departmental Capital Budget, or DCB) provided through Bill 1 equity
appropriations. For information regarding DCBs, please refer to Table 3.2.5 Departmental Capital Budget
Statement.
57
PM&C Budget Statements
Table 3.2.2: Budgeted Departmental Balance Sheet (as at 30 June)
Estimated
actual
2013-14
$'000
Budget
estimate
2014-15
$'000
Forward
estimate
2015-16
$'000
Forward
estimate
2016-17
$'000
Forward
estimate
2017-18
$'000
ASSETS
Financial assets
Cash and cash equivalents
Trade and other receivables
Total financial assets
854
26,885
27,739
1,038
23,852
24,890
1,125
21,188
22,313
1,315
20,316
21,631
1,542
16,653
18,195
Non-financial assets
Property, plant and equipment
Intangibles
Other non-financial assets
Total non-financial assets
Total assets
40,408
7,128
6,643
54,179
81,918
49,335
8,501
3,479
61,315
86,205
54,051
11,332
3,567
68,950
91,263
68,213
13,825
3,609
85,647
107,278
85,284
15,103
3,609
103,996
122,191
6,828
528
186
7,542
2,671
528
163
3,362
2,221
116
2,337
2,510
107
2,617
2,510
107
2,617
63,363
6,813
70,176
77,718
61,571
6,772
68,343
71,705
58,054
6,554
64,608
66,945
57,692
6,132
63,824
66,441
60,095
6,132
66,227
68,844
4,200
14,500
24,318
40,837
53,347
24,548
8,231
43,684
8,231
60,604
8,231
84,396
8,231
104,186
8,231
(28,579)
4,200
(37,415)
14,500
(44,517)
24,318
(51,790)
40,837
(59,070)
53,347
LIABILITIES
Payables
Suppliers
Grants
Other payables
Total payables
Provisions
Employee provisions
Other provisions
Total provisions
Total liabilities
Net assets
EQUITY*
Parent entity interest
Contributed equity
Reserves
Retained surplus
(accumulated deficit)
Total Equity
Prepared on Australian Accounting Standards basis.
*'Equity' is the residual interest in assets after deduction of liabilities.
58
PM&C Budget Statements
Table 3.2.3: Departmental Statement of Changes in Equity — Summary of
Movement (Budget Year 2014-15)
Retained
earnings
$'000
Opening balance as at 1 July 2014
Balance carried forward from
previous period
Adjusted opening balance
Comprehensive income
Surplus (deficit) for the period
Total comprehensive income
of which:
Attributable to the Australian Government
(28,579)
(28,579)
Asset
Other Contributed
revaluation reserves
equity/
reserve
capital
$'000
$'000
$'000
8,231
8,231
-
24,548
24,548
Total
equity
$'000
4,200
4,200
(8,836)
-
-
-
(8,836)
(8,836)
-
-
-
(8,836)
(8,836)
-
-
-
(8,836)
-
-
5,887
13,249
19,136
Transactions with owners
Contributions by owners
Equity Injection - Appropriation
Departmental Capital Budget (DCBs)
Sub-total transactions with owners
-
5,887
13,249
19,136
Estimated closing balance
as at 30 June 2015
(37,415)
8,231
43,684 14,500
Prepared on Australian Accounting Standards basis.
1
From 2010-11, the Government introduced net cash appropriation arrangements where Bill 1 revenue
appropriations for the depreciation/amortisation expenses of FMA Act agencies were replaced with a
separate capital budget (the Departmental Capital Budget, or DCB) provided through Bill 1 equity
appropriations. For information regarding DCBs, please refer to Table 3.2.5 Departmental Capital Budget
Statement. Where depreciation has resulted in an accumulated loss, this affects the opening equity
balance.
59
PM&C Budget Statements
Table 3.2.4: Budgeted Departmental Statement of Cash Flows
(for the period ended 30 June)
Estimated
actual
2013-14
$'000
OPERATING ACTIVITIES
Cash received
Appropriations
Receipts from Government
Sale of goods and rendering of services
Net GST received
Total cash received
Cash used
Employees
Suppliers
Grants
Other
Total cash used
Net cash from (used by)
operating activities
Budget
estimate
2014-15
$'000
Forward
estimate
2015-16
$'000
Forward
estimate
2016-17
$'000
Forward
estimate
2017-18
$'000
356,027
11,876
2,544
370,447
576,857
10,326
587,183
365,997
3,096
369,093
364,660
3,650
368,310
366,584
3,185
369,769
225,227
144,635
612
46
370,520
297,655
289,235
45
64
586,999
285,549
83,192
265
369,006
277,458
90,231
431
368,120
272,426
97,116
369,542
184
87
190
227
(73)
INVESTING ACTIVITIES
Cash used
Purchase of property, plant
and equipment and intangibles
Total cash used
Net cash from (used by)
investing activities
18,422
18,422
19,136
19,136
16,878
16,878
23,723
23,723
25,421
25,421
(18,422)
(19,136)
(16,878)
(23,723)
(25,421)
FINANCING ACTIVITIES
Cash received
Contributed equity
Total cash received
18,422
18,422
19,136
19,136
16,878
16,878
23,723
23,723
25,421
25,421
18,422
19,136
16,878
23,723
25,421
(73)
184
87
190
227
927
854
1,038
1,125
1,315
854
1,038
1,125
1,315
1,542
Net cash from (used by)
financing activities
Net increase (decrease)
in cash held
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the
end of the reporting period
Prepared on Australian Accounting Standards basis.
60
PM&C Budget Statements
Table 3.2.5: Departmental Capital Budget Statement
Estimated
actual
2013-14
$'000
Budget
estimate
2014-15
$'000
Forward
estimate
2015-16
$'000
Forward
estimate
2016-17
$'000
Forward
estimate
2017-18
$'000
NEW CAPITAL APPROPRIATIONS
Capital budget - Bill 1 (DCB)
Equity injections - Bill 2
Total new capital appropriations
9,894
8,528
18,422
13,249
5,887
19,136
13,782
3,096
16,878
15,112
8,611
23,723
13,727
11,694
25,421
Provided for:
Purchase of non-financial assets
Total Items
18,422
18,422
19,136
19,136
16,878
16,878
23,723
23,723
25,421
25,421
PURCHASE OF NON-FINANCIAL
ASSETS
Funded by capital appropriations1
8,528
5,887
3,096
8,611
11,694
TOTAL
9,894
18,422
13,249
19,136
13,782
16,878
15,112
23,723
13,727
25,421
RECONCILIATION OF CASH
USED TO ACQUIRE ASSETS
TO ASSET MOVEMENT TABLE
Total purchases
18,422
19,136
16,878
23,723
25,421
Total cash used to acquire assets
18,422
Prepared on Australian Accounting Standards basis.
19,136
16,878
23,723
25,421
Funded by capital appropriation - DCB2
1
Includes both current and prior Bill 2/4/6 appropriations and special capital appropriations.
2
Does not include annual finance lease costs. Includes purchase from current and previous years'
Departmental Capital Budgets (DCBs).
61
PM&C Budget Statements
Table 3.2.6: Statement of Asset Movements (2014-15)
Asset Category
Property,
plant and
equipment
$'000
As at 1 July 2014
Gross book value
Accumulated depreciation/amortisation
and impairment
Opening net book balance
Computer
software and
intangibles
$'000
Total
$'000
46,950
15,412
62,362
(6,542)
40,408
(8,284)
7,128
(14,826)
47,536
CAPITAL ASSET ADDITIONS
Estimated expenditure on
new or replacement assets
By purchase - appropriation equity1
By purchase - appropriation ordinary
annual services2
Total additions
2,904
2,983
5,887
13,249
16,153
2,983
13,249
19,136
Other movements
Depreciation/amortisation expense
Total other movements
(7,226)
(7,226)
(1,610)
(1,610)
(8,836)
(8,836)
63,103
18,395
81,498
(13,768)
49,335
(9,894)
8,501
(23,662)
57,836
As at 30 June 2015
Gross book value
Accumulated depreciation/amortisation
and impairment
Closing net book balance
Prepared on Australian Accounting Standards basis.
1
'Appropriation equity' refers to equity injections or administered assets and liabilities appropriations
provided through Appropriation Bill (No. 2) 2014–15, including CDABs.
2
'Appropriation ordinary annual services' refers to funding provided through Appropriation Bill (No. 1)
2014–15 for depreciation / amortisation expenses, DCBs or other operational expenses.
62
PM&C Budget Statements
Table 3.2.7: Schedule of Budgeted Income and Expenses Administered on
Behalf of Government (for the period ended 30 June)
EXPENSES ADMINISTERED ON
BEHALF OF GOVERNMENT
Employee benefits
Suppliers
Subsidies
Grants
Depreciation and amortisation
Finance costs
Payments to CAC Bodies
Other expenses
Total expenses administered
on behalf of Government
LESS:
OWN-SOURCE INCOME
Own-source revenue
Non-taxation revenue
Interest
Other revenue
Total non-taxation revenue
Total own-source revenues
administered on behalf of
Government
Total own-sourced income
administered on behalf of
Government
Estimated
actual
2013-14
$'000
Budget
estimate
2014-15
$'000
Forward
estimate
2015-16
$'000
Forward
estimate
2016-17
$'000
Forward
estimate
2017-18
$'000
866
131,719
21,425
742,174
114
386
8
882
299,830
65,182
941,669
122
467
130,367
117,078
900
365,415
66,226
949,418
124
443
126,085
103,657
918
374,149
67,419
941,161
131
443
121,672
93,645
918
374,271
68,632
920,213
131
443
119,123
94,999
896,692
1,555,597
1,612,268
1,599,538
1,578,730
43
43
95,087
575
95,662
95,681
435
96,116
96,403
435
96,838
97,482
435
97,917
43
95,662
96,116
96,838
97,917
43
95,662
96,116
96,838
97,917
Net Cost of (contribution by)
services
Surplus (Deficit)
896,649
896,649
1,459,935
1,459,935
1,516,152
1,516,152
1,502,700
1,502,700
1,480,813
1,480,813
Total comprehensive income (loss)
896,649
1,459,935
1,516,152
1,502,700
1,480,813
Prepared on Australian Accounting Standards basis.
63
PM&C Budget Statements
Table 3.2.8: Schedule of Budgeted Assets and Liabilities Administered on Behalf
of Government (as at 30 June)
Estimated
actual
2013-14
$'000
Budget
estimate
2014-15
$'000
Forward
estimate
2015-16
$'000
Forward
estimate
2016-17
$'000
Forward
estimate
2017-18
$'000
ASSETS
Financial assets
Cash and cash equivalents
Trade and other receivables
Investments accounted for
using the equity method
Other investments
Total financial assets
5
471
22,900
7,894
35,749
7,898
40,646
7,902
40,646
7,906
1,054
1,530
1,756,528
2,397,538
4,184,860
1,793,078
2,450,579
4,287,304
1,829,628
2,505,641
4,383,817
1,866,178
2,560,174
4,474,904
Non-financial assets
Land and buildings
Property, plant and equipment
Other non-financial assets
Total non-financial assets
1,928
64
1,992
1,957
8,210
10,167
2,087
8,209
10,296
2,209
8,209
10,418
2,334
8,209
10,543
Total assets administered
on behalf of Government
3,522
4,195,027
4,297,600
4,394,235
4,485,447
LIABILITIES
Payables
Suppliers
Grants and subsidies
Other payables
Total payables
7,732
183
105
8,020
39,877
8,264
109
48,250
39,894
8,268
68
48,230
39,894
8,272
68
48,234
39,894
8,276
68
48,238
373
380
388
388
388
114
15,595
16,082
114
14,778
15,272
114
14,045
14,547
114
13,912
14,414
114
13,912
14,414
63,522
4,131,505
62,777
4,234,823
62,648
4,331,587
62,652
4,422,795
Provsions
Employee provisions
Provision for restoration,
decommissioning and makegood
Other provisions
Total provisions
Total liabilities administered
on behalf of Government
Net assets/(liabilities)
24,102
(20,580)
Prepared on Australian Accounting Standards basis.
64
PM&C Budget Statements
Table 3.2.9: Schedule of Budgeted Administered Cash Flows
(for the period ended 30 June)
Estimated
actual
2013-14
$'000
OPERATING ACTIVITIES
Cash received
Net GST received
Other
Total cash received
Cash used
Grant
Subsidies paid
Suppliers
Employees
Payments to CAC Bodies
Other
Total cash used
Net cash from (used by)
operating activities
INVESTING ACTIVITIES
Cash received
Interest*
Investments*
Transfers from other entities*
Total cash received*
Cash used
Purchase of property, plant
and equipment and intangibles
Investments*
Total cash used
Net cash from (used by)
investing activities
Net increase (decrease) in
cash held
Cash and cash equivalents at
beginning of reporting period
Cash from Official Public Account for:
- Appropriations
Cash and cash equivalents at end
of reporting period
Budget
estimate
2014-15
$'000
Forward
estimate
2015-16
$'000
Forward
estimate
2016-17
$'000
Forward
estimate
2017-18
$'000
1,711
113
1,824
575
575
431
431
431
431
431
431
742,565
21,425
111,388
858
876,236
941,665
65,182
300,100
875
130,367
116,261
1,554,450
949,414
66,226
365,398
892
126,085
102,924
1,610,939
941,157
67,419
374,149
918
121,672
93,512
1,598,827
920,209
68,632
374,271
918
119,123
94,999
1,578,152
(874,412)
(1,553,875)
(1,610,508)
(1,598,396)
(1,577,721)
-
95,451
3,505,236
22,895
3,623,582
95,681
3,505,236
3,600,917
96,403
3,505,236
3,601,639
97,482
3,505,236
3,602,718
289
289
151
3,569,273
3,569,424
252
3,548,879
3,549,131
252
3,557,974
3,558,226
259
3,562,275
3,562,534
54,157
51,785
43,412
40,183
(289)
(874,701)
(1,499,718)
(1,558,723)
(1,554,984)
(1,537,538)
5
5
22,900
35,749
40,646
874,701
1,522,613
1,571,571
1,559,881
1,537,538
5
22,900
35,748
40,646
40,646
Prepared on Australian Accounting Standards basis.
*The 2013-14 figures are not for the full year, only from the time the accounts were transferred to PM&C. The
losing agencies will be reporting on the 2013-14 figures.
65
PM&C Budget Statements
Table 3.2.10: Schedule of Administered Capital Budget Statement
Estimated
actual
2013-14
$'000
Budget
estimate
2014-15
$'000
Forward
estimate
2015-16
$'000
Forward
estimate
2016-17
$'000
Forward
estimate
2017-18
$'000
NEW CAPITAL APPROPRIATIONS
Capital budget - Bill 1 (ACB)
Total new capital appropriations
289
289
151
151
252
252
252
252
259
259
Provided for:
Purchase of non-financial assets
Total Items
289
289
151
151
252
252
252
252
259
259
Funded by capital appropriations1
TOTAL AMOUNT SPENT
289
289
151
151
252
252
252
252
259
259
RECONCILIATION OF CASH
USED TO ACQUIRE ASSETS
TO ASSET MOVEMENT TABLE
Total accrual purchases
Total cash used to acquire assets
289
289
151
151
252
252
252
252
259
259
PURCHASE OF NON-FINANCIAL
ASSETS
Prepared on Australian Accounting Standards basis.
1
Includes both current Bill 2 and prior Act 2/4/6 appropriations and special capital appropriations.
66
PM&C Budget Statements
Table 3.2.11: Statement of Administered Asset Movements (2014-15)
Asset Category
Property,
plant and
equipment
$'000
As at 1 July 2014
Gross book value
Accumulated depreciation/amortisation
and impairment
Opening net book balance
$'000
2,142
2,142
(214)
1,928
(214)
1,928
151
151
151
151
(122)
(122)
(122)
(122)
CAPITAL ASSET ADDITIONS
Estimated expenditure on
new or replacement assets
By purchase - appropriation ordinary
annual services1
Total additions
Other movements
Depreciation/amortisation expense
Total other movements
As at 30 June 2015
Gross book value
Accumulated depreciation/amortisation
and impairment
Closing net book balance
Total
2,293
2,293
(336)
1,957
(336)
1,957
Prepared on Australian Accounting Standards basis.
’Appropriation ordinary annual services’ refers to funding provided through Appropriation Bill (No.1) 2014-15
for depreciation / amortisation expenses, ACBs or other operational expenses.
1
67
Aboriginal Hostels Limited
Agency Resources and Planned
Performance
ABORIGINAL HOSTELS LIMITED
Section 1: Agency Overview and Resources ........................................................... 73
1.1 Strategic Direction Statement ................................................................................ 73
1.2 Agency Resource Statement ................................................................................. 74
1.3 Budget Measures .................................................................................................. 75
Section 2: Outcomes and Planned Performance ..................................................... 76
2.1 Outcomes and Performance Information .............................................................. 76
Section 3: Explanatory Tables and Budgeted Financial Statements ..................... 81
3.1 Explanatory Tables ................................................................................................ 81
3.2 Budgeted Financial Statements ............................................................................ 82
71
ABORIGINAL HOSTELS LIMITED
Section 1: Agency Overview and Resources
1.1
STRATEGIC DIRECTION STATEMENT
Aboriginal Hostels Limited (AHL) is an Australian Government company subject to
the Corporations Act 2001. AHL provides temporary accommodation to Aboriginal and
Torres Strait Islander people through a national network of accommodation facilities.
AHL contributes to the portfolio’s goals by providing accommodation that supports
Aboriginal and Torres Strait Islander people to access educational, employmentrelated and health opportunities.
AHL provides safe, comfortable, culturally appropriate and affordable
accommodation for Indigenous Australians who must live away from home to access
services and labour markets.
In 2014-15 AHL will:

be an integral provider of, and an adviser on, accommodation that supports the
Australian Government’s effort to overcome Aboriginal and Torres Strait Islander
disadvantage

operate in locations of greatest need, in priority areas of education, training,
employment and health

increase customer satisfaction and use of facilities

deliver a consistent standard of accommodation services, by service types, across
Australia

sustainably manage and maintain its property portfolio

be agile in responding to challenges, trends and opportunities that support
Government priorities, ongoing business efficiency and operating sustainably

pursue appropriate standards of workplace health and safety.
73
AHL Budget Statements
1.2
AGENCY RESOURCE STATEMENT
Table 1.1 shows the total resources from all sources. The table summarises how
resources are applied by outcome and by administered and departmental
classification.
Table 1.1: AHL Resource Statement — Budget Estimates for 2014-15 as at
Budget May 2014
Estimate
of prior
year amounts
available in
2014–15
$'000
Source
Opening balance/Reserves at bank
+
Proposed
at Budget
2014–15
$'000
=
Total
estimate
Actual
available
appropriation
2014–15
$'000
2013–14
$'000
18,390
-
18,390
13,613
-
38,058
38,058
38,058
38,058
38,374
38,374
-
1,244
1,244
1,244
1,244
4,918
4,918
-
39,302
39,302
43,292
-
2,112
1,695
3,807
18,390
43,109
61,499
59,989
-
440
14,359
22
14,821
440
14,359
22
14,821
438
12,395
217
13,050
18,390
57,930
76,320
73,039
REVENUE FROM GOVERNMENT
Ordinary annual services1
Outcome 1
Total ordinary annual services
Other services2
Non-operating
Total other services
Total annual appropriations
3
Payments from related entities
Amounts from other agencies
Victorian Government
Northern Territory Government
Prime Minister and Cabinet (PM&C)
Total
Total funds from Government
FUNDS FROM OTHER SOURCES
Interest
Sale of goods and services
Other
Total
Total net resourcing for agency
2,112
1,695
3,807–
(40)
1,944
1,180
3,084
All figures are GST exclusive.
Aboriginal Hostels Limited (AHL) is not directly appropriated as it is a CAC Act body.
Appropriations are made to FMA Agency PM&C which are then paid to AHL and are considered
'departmental' for all purposes.
1
Appropriation Bill (No. 1) 2014–15.
2
Appropriation Bill (No. 2) 2014-15.
3
Funding provided by a Government body that is not specified within the annual appropriation bills payment
to the CAC Act body.
74
AHL Budget Statements
1.3
BUDGET MEASURES
Budget measures in Part 1 relating to AHL are detailed in Budget Paper No. 2 and are
summarised below.
Table 1.2: AHL 2014-15 Budget Measures
Part 1: Measures Announced Since the 2013-14 MYEFO
Programme
Expense measures
Efficiency Dividend — a further temporary
increase of 0.25 per cent
Departmental expenses
Total
2013-14
$'000
2014-15
$'000
2015-16
$'000
2016-17
$'000
2017-18
$'000
-
(98)
(98)
(193)
(193)
(289)
(289)
(291)
(291)
-
(98)
(98)
(193)
(193)
(289)
(289)
(291)
(291)
1.1
Total expense measures
Departmental
Total
Prepared on a Government Finance Statistics (fiscal) basis.
75
AHL Budget Statements
Section 2: Outcomes and Planned Performance
2.1
OUTCOMES AND PERFORMANCE INFORMATION
Government outcomes are the intended results, impacts or consequences of actions by
Government on the Australian community. Australian Government programmes are
the primary vehicle by which government agencies achieve the intended results of
their outcome statements. Agencies are required to identify the programmes which
contribute to government outcomes over the Budget and forward years.
Each outcome is described below together with its related programmes, specifying the
performance indicators and targets used to assess and monitor the performance of
Aboriginal Hostels Limited in achieving government outcomes.
Outcome 1: Improved access to education, employment, health and other
services for Aboriginal and Torres Strait Islander people travelling or
relocating through the operation of temporary hostel accommodation
services.
Outcome 1 Strategy
AHL delivers a network of accommodation services across Australia and provides
special purpose, accommodation for Aboriginal and Torres Strait Islander people.
AHL delivers its accommodation to a consistent standard by service type. To maintain
its network, AHL maintains a $100 million property portfolio.
AHL continues to undertake regular reviews of all activities and programmes to
ensure that existing and new services align with its strategic objectives and
Government priorities.
76
AHL Budget Statements
Outcome Expense Statement
Table 2.1 provides an overview of the total expenses for Outcome 1 by programme.
Table 2.1: Budgeted Expenses for Outcome 1
Outcome 1: Improved access to education, employment,
health and other services for Aboriginal and Torres Strait
Islander people travelling or relocating through the
operation of temporary hostel accommodation services.
Programme 1.1: Company Operated Hostels
Revenue from Government
Ordinary annual services (Appropriation Bill No. 1)
Revenues from other independent sources
2013–14
Estimated
actual
expenses
$'000
2014–15
Estimated
expenses
$'000
34,174
16,134
36,216
18,628
50,308
54,844
4,200
1,842
4,200
1,842
Outcome 1 Totals by resource type
Revenue from Government
Ordinary annual services (Appropriation Bill No. 1)
Revenues from other independent sources
38,374
20,272
38,058
18,628
Total expenses for Outcome 1
58,646
56,686
2013–14
406
2014–15
396
Total for Programme 1.1
Programme 1.2: Community Operated Hostels
Revenue from Government
Ordinary annual services (Appropriation Bill No. 1)
Total for Programme 1.2
Average Staffing Level (number)
77
AHL Budget Statements
Contributions to Outcome 1
AHL has two programmes: Programme 1.1 Company Operated Hostels, and
Programme 1.2 Community Operated Hostels which contribute to the delivery of the
company’s single outcome.
Programme 1.1 Company Operated Hostels
Programme 1.1 Objective
To provide temporary accommodation that assists Indigenous Australians who
must live away from home to access services and economic opportunity.
Programme 1.1 Revenue
AHL is budgeting for a decrease in total revenue from government of $0.3 million in
2014-15 which includes the impact of the Government’s 2.5% efficiency dividend.
This programme includes:

an internal allocated increase to Programme 1.1 of $2 million.
This revenue will be supplemented by an estimated $2.5 million increase in revenue
from independent sources.
78
AHL Budget Statements
Programme 1.1 Expenses
AHL is budgeting for an overall net increase of $0.4 million in expenses in
2014-15.
The company will continue to deliver a significant programme of planned
maintenance and capital investment during 2014-15 to deliver greater consistency in
the standard of accommodation across all facilities.
The company will continue to efficiently manage the on-going delivery of quality
services within budget.
2013–14
Estimated
actual
$'000
Annual departmental expenses:
Departmental item
Total programme expenses
54,446
54,446
2014–15
Budget
$'000
54,844
54,844
2015–16
Forward
estimate
$'000
2016–17
Forward
estimate
$'000
2017–18
Forward
estimate
$'000
56,233
56,233
56,253
56,253
56,698
56,698
Programme 1.1 Deliverables

number of resident bed nights available for use per annum.
Number of resident bed nights per annum
2013–14
Estimated
actual
2014–15
Budget
2015–16
Forward
estimate
2016–17
Forward
estimate
2017–18
Forward
estimate
698,701
694,250
696,732
695,748
695,748
The number of beds available for use by prospective AHL residents at any particular
time will be adjusted as required to account for:

rooms closed for planned maintenance

rooms closed for unplanned repairs and maintenance (including repairing
damage from natural disasters, storms, fires, floods and other events)

rooms occupied by ‘in residence’ employees.
Programme 1.1 Key Performance Indicators

Occupancy level as a percentage of resident bed nights available.
Minimum occupancy level targets as a
percentage of bed nights available
2013–14
Estimated
actual
2014–15
Budget
2015–16
Forward
estimate
2016–17
Forward
estimate
2017–18
Forward
estimate
70%
70%
70%
70%
70%
79
AHL Budget Statements
Programme 1.2: Community Operated Hostels
Programme 1.2 Objective
To provide support to Community-operated hostels which provide temporary
accommodation for Indigenous Australians who must live away from home to
access services and economic opportunity.
Programme 1.2 Expenses
The Corporate and Community Partnerships Programme (CCPP) is expected to
reduce as a result of portfolio programme consolidation in 2014-15.
2013–14
Estimated
actual
$'000
Annual departmental expenses:
Departmental item
Total programme expenses
2014–15
Budget
$'000
4,200
4,200
1,842
1,842
2013–14
Estimated
actual
2014–15
Budget
2015–16
Forward
estimate
$'000
-
2016–17
Forward
estimate
$'000
-
2017–18
Forward
estimate
$'000
-
Programme 1.2 Deliverables

number of available beds.
Estimated number of available beds
741
395
2015–16
Forward
estimate
-
2016–17
Forward
estimate
-
2017–18
Forward
estimate
-
Programme 1.2 Key Performance Indicators

Occupancy as a percentage of resident bed nights.
Occupancy as a % of resident bed nights
2013–14
Estimated
actual
2014–15
Budget
70%
70%
80
2015–16
Forward
estimate
-
2016–17
Forward
estimate
-
2017–18
Forward
estimate
-
AHL Budget Statements
Section 3: Explanatory Tables and Budgeted Financial
Statements
Section 3 presents explanatory tables and budgeted financial statements which
provide a comprehensive snapshot of agency finances for the 2014-15 Budget year. It
explains how budget plans are incorporated into the financial statements and provides
further details of the reconciliation between appropriations and programme expenses,
movements in administered funds, special accounts and Government Indigenous
expenditure.
3.1
EXPLANATORY TABLES
3.1.1 Movement of Administered Funds between Years
AHL has no administered funds in 2014-15.
3.1.2 Special Accounts
AHL has no special accounts in 2014-15.
3.1.3 Australian Government Indigenous Expenditure
Table 3.1.3: Australian Government Indigenous Expenditure (AGIE)
Appropriations
Bill
Bill
No. 1
No. 2
$'000
$'000
Aboriginal Hostels Ltd
Outcome 1
Departmental 2014–15
Departmental 2013–14
Departmental 2014–15
Departmental 2013–14
Total outcome 2014–15
Total outcome 2013–14
36,216
34,174
1,842
4,200
38,058
38,374
1,244
4,918
Total departmental 2014–15
Total departmental 2013–14
38,058
38,374
1,244
Total AGIE 2014–15
Total AGIE 2013–14
38,058
38,374
1,244
-
1,244
4,918
4,918
4,918
81
Total
approp
$'000
Other
Total
$'000
$'000
37,460
39,092
1,842
4,200
39,302
43,292
18,628
16,134
18,628
16,134
56,088
55,226
1,842
4,200
57,930
59,426
39,302
43,292
18,628
16,134
57,930
59,426
39,302
43,292
18,628
16,134
57,930
59,426
-
Programme
1.1
1.1
1.2
1.2
AHL Budget Statements
3.2
BUDGETED FINANCIAL STATEMENTS
3.2.1 Differences in Agency Resourcing and Financial Statements
Table 3.2.1 recognises the full year revenue for 2014–15 on the basis of accrual
accounting principles. However the impact of complying with Accounting Standard
1004 Contributions, is that revenue received from other government agencies is to be
recognised in the year when the funding is due and received, which is not necessarily
the year that the funding is to be spent.
There are no significant differences between the resource information presented in the
Budget Papers and Portfolio Budget Statements (PB Statements) as a result of
differences between Australian Accounting Standards (AAS) and Government Finance
Statistics (GFS). Furthermore, there are no differences which arise because of related
entity transactions.
3.2.2 Analysis of Budgeted Financial Statements
An analysis of the primary causes of movements from the financial statements
published in the 2013–14 Portfolio Budget Statements is provided below.
Departmental
Income and expenses
AHL is implementing a new tariff model which more accurately estimates expected
tariff income across AHL’s accommodation network. AHL will continue to maximise
occupancy through targeted marketing and facility refurbishment.
AHL is expecting an increase in depreciation and amortisation expenses in 2014-15 as
facility and IT upgrades are capitalised in 2014-15.
Balance Sheet
The major variation between actual expected results for 2013-14 and the budget for
2014-15 is explained by the divestment of properties and reduction in the CCPP.
Expected budget implications can be seen as movements in reported:

cash and cash equivalents

land, buildings, IT asset values and associated reserves.
82
AHL Budget Statements
3.2.3 Budgeted Financial Statements Tables
Table 3.2.1: Comprehensive Income Statement (Showing Net Cost of Services)
(for the period ended 30 June)
Estimated
actual
2013–14
$'000
Budget
estimate
2014–15
$'000
Forward
estimate
2015–16
$'000
Forward
estimate
2016–17
$'000
Forward
estimate
2017–18
$'000
EXPENSES
Employee benefits
Suppliers
Grants
Depreciation and amortisation
Other expenses
Total expenses
30,218
20,202
4,200
4,043
300
58,963
28,986
21,738
1,842
4,171
308
57,045
29,277
22,468
4,171
317
56,233
29,571
22,184
4,171
327
56,253
29,870
22,320
4,171
337
56,698
LESS:
OWN-SOURCE INCOME
Own-source revenue
Sale of goods and rendering of services
Interest
Other
Total own-source revenue
12,395
438
3,301
16,134
14,359
440
3,829
18,628
14,129
505
3,886
18,520
14,263
505
3,944
18,712
14,398
505
4,004
18,907
Gains
Sale of assets
Total gains
Total own-source income
317
317
16,451
359
359
18,987
18,520
18,712
18,907
Net cost of services
42,512
38,058
37,713
37,541
37,791
Revenue from Government
38,374
38,058*
37,713*
37,541*
37,791*
Surplus (Deficit) attributable to
the Australian Government
(4,138)
-
-
-
-
Total comprehensive income
(4,138)
-
-
-
-
Total comprehensive income
attributable to the Australian
Government
(4,138)
-
-
-
-
Prepared on Australian Accounting Standards basis.
83
AHL Budget Statements
Table 3.2.2: Budgeted Departmental Balance Sheet (as at 30 June)
Estimated
actual
2013–14
$'000
Budget
estimate
2014–15
$'000
Forward
estimate
2015–16
$'000
Forward
estimate
2016–17
$'000
Forward
estimate
2017–18
$'000
18,390
3,168
21,558
20,545
3,168
23,713
22,607
3,168
25,775
25,811
3,168
28,979
28,446
3,168
31,614
Non-financial assets
Land and buildings
Property, plant and equipment
Intangibles
Other non-financial assets
Total non-financial assets
132,374
3,745
142
1,375
137,636
132,629
3,107
86
1,325
137,147
130,423
2,469
86
1,219
134,197
128,222
1,827
86
1,113
131,248
126,416
1,068
86
1,007
128,577
Total assets
ASSETS
Financial assets
Cash and cash equivalents
Trade and other receivables
Total financial assets
159,194
160,860
159,972
160,227
160,191
LIABILITIES
Payables
Suppliers
Other payables
Total payables
3,448
553
4,001
3,448
509
3,957
3,448
466
3,914
3,448
423
3,871
3,258
387
3,645
Provisions
Employee provisions
Total provisions
5,473
5,473
5,939
5,939
5,094
5,094
5,392
5,392
5,582
5,582
Total liabilities
Net assets
9,474
9,896
9,008
9,263
9,227
149,720
150,964
150,964
150,964
150,964
EQUITY*
Parent entity interest
Contributed equity
Reserves
Retained surplus
(accumulated deficit)
Total parent entity interest
92,999
66,689
94,243
64,093
94,243
62,040
94,243
60,090
94,243
60,090
(9,968)
149,720
(7,372)
150,964
(5,319)
150,964
(3,369)
150,964
(3,369)
150,964
Total Equity
149,720
150,964
150,964
150,964
150,964
Prepared on Australian Accounting Standards basis.
*'Equity' is the residual interest in assets after deduction of liabilities.
84
AHL Budget Statements
Table 3.2.3: Departmental Statement of Changes in Equity — Summary of
Movement (Budget Year 2014-15)
Retained
earnings
$'000
Opening balance as at 1 July 2014
Balance carried forward from
previous period
Adjusted opening balance
(9,968)
(9,968)
Asset
revaluation
reserve
$'000
Contributed
equity/
capital
$'000
Total
equity
$'000
66,689
66,689
92,999
92,999
149,720
149,720
Comprehensive income
Surplus (deficit) for the period
-
-
-
-
Total comprehensive income
-
-
-
-
Transactions with owners
Contributions by owners
Equity Injection - Appropriation
Sub-total transactions with owners
-
-
1,244
1,244
1,244
1,244
-
-
Transfers between equity
components
2,596
(2,596)
Estimated closing balance
as at 30 June 2015
(7,372)
64,093
94,243
150,964
Closing balance attributable to the
Australian Government
(7,372)
64,093
94,243
150,964
Prepared on Australian Accounting Standards basis.
85
AHL Budget Statements
Table 3.2.4: Budgeted Departmental Statement of Cash Flows
(for the period ended 30 June)
Estimated
actual
2013–14
$'000
OPERATING ACTIVITIES
Cash received
Appropriations
Sale of goods and rendering of services
Interest
Net GST received
Other
Total cash received
Cash used
Employees
Suppliers
Other
Total cash used
Net cash from (used by)
operating activities
INVESTING ACTIVITIES
Cash received
Proceeds from sales of property,
plant and equipment
Total cash received
Cash used
Purchase of property, plant
and equipment
Total cash used
Net cash from (used by)
investing activities
FINANCING ACTIVITIES
Cash received
Contributed equity
Total cash received
Net cash from (used by)
financing activities
Net increase in cash held
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the
end of the reporting period
Budget
estimate
2014–15
$'000
Forward
estimate
2015–16
$'000
Forward
estimate
2016–17
$'000
Forward
estimate
2017–18
$'000
38,374
12,096
438
3,000
3,301
57,209
38,058
14,051
440
3,000
3,829
59,378
37,713
13,812
505
3,886
55,916
37,541
13,936
505
3,944
55,926
37,791
14,061
505
4,004
56,361
29,843
23,203
4,317
57,363
28,521
24,737
2,075
55,333
30,122
22,468
43
52,633
29,273
22,184
43
51,500
29,680
22,510
36
52,226
4,045
3,283
4,426
4,135
1,705
1,705
3,778
3,778
-
-
-
1,692
1,692
6,912
6,912
1,221
1,221
1,222
1,222
1,500
1,500
(3,134)
(1,221)
(1,222)
(1,500)
(154)
13
4,918
4,918
1,244
1,244
-
-
-
4,918
4,777
1,244
2,155
2,062
3,204
2,635
13,613
18,390
20,545
22,607
25,811
18,390
20,545
22,607
25,811
28,446
Prepared on Australian Accounting Standards basis.
86
AHL Budget Statements
Table 3.2.5: Departmental Capital Budget Statement
Estimated
actual
2013–14
$'000
NEW CAPITAL APPROPRIATIONS
Equity injections - Bill 2
Total new capital appropriations
Provided for:
Purchase of non-financial assets
Total Items
Budget
estimate
2014–15
$'000
Forward
estimate
2015–16
$'000
Forward
estimate
2016–17
$'000
Forward
estimate
2017–18
$'000
4,918
4,918
1,244
1,244
-
-
-
4,918
4,918
1,244
1,244
-
-
-
471
1,244
-
-
-
PURCHASE OF NON-FINANCIAL
ASSETS
Funded by capital appropriations1
Funded internally from
departmental resources2
1,221
5,668
1,221
1,222
1,500
TOTAL
1,692
6,912
1,221
1,222
1,500
RECONCILIATION OF CASH
USED TO ACQUIRE ASSETS
TO ASSET MOVEMENT TABLE
Total purchases
Total cash used to acquire assets
1,692
1,692
6,912
6,912
1,221
1,221
1,222
1,222
1,500
1,500
Prepared on Australian Accounting Standards basis.
1
Includes both current and prior Bill 2/4/6 appropriations and special capital appropriations.
2
Does not include annual finance lease costs. Includes purchase from current and previous years'
Departmental Capital Budgets (DCBs).
87
AHL Budget Statements
Table 3.2.6: Statement of Asset Movements (2014-15)
Asset Category
Land
$'000
As at 1 July 2014
Gross book value
Accumulated depreciation/amortisation
and impairment
Opening net book balance
Buildings Other property,
plant and
equipment
$'000
$'000
Heritage
and cultural
$'000
Computer
software and
intangibles
$'000
Total
$'000
41,730
97,168
7,848
1,403
415
148,564
41,730
(6,524)
90,644
(4,103)
3,745
(28)
1,375
(273)
142
(10,928)
137,636
CAPITAL ASSET ADDITIONS
Estimated expenditure on
new or replacement assets
By purchase – appropriation equity1
-
1,244
-
-
-
1,244
By purchase – appropriation ordinary
annual services2
Total additions
-
5,247
6,491
421
421
-
-
5,668
6,912
-
(3,006)
Other movements
Depreciation/amortisation expense
Disposals3
From disposal of entities or operations
(including restructuring)
Total other movements
As at 30 June 2015
Gross book value
Accumulated depreciation/amortisation
and impairment
Closing net book balance
(1,800)
(1,430)
(1,800)
(4,436)
39,930
39,930
101,949
(9,250)
92,699
(1,059)
(1,059)
(50)
(50)
(56)
(56)
(4,171)
(3,230)
(7,401)
8,269
1,403
415
151,966
(5,162)
3,107
(78)
1,325
(329)
86
(14,819)
137,147
1
'Appropriation equity' refers to equity injections or administered assets and liabilities appropriations
provided through Appropriation Bill (No. 2) 2014–15, including CDABs.
2
'Appropriation ordinary annual services' refers to funding provided through Appropriation Bill (No. 1)
2014–15 for depreciation / amortisation expenses, DCBs or other operational expenses.
3
Net proceeds may be returned to the OPA.
88
AHL Budget Statements
3.2.4 Notes to the Financial Statements
Accounting Policies
The financial statements have been prepared in accordance with Australian Equivalent
of International Financial Reporting Standards (AEIFRS) and other authoritative
pronouncements of the Australian Accounting Standards Board and the Corporations
Act 2001.
The financial statements are prepared on an accrual basis and in accordance with
historical cost convention, with the exception of revenue from contributions received
from other government entities. Under accounting standard AASB 1004 Contributions,
this revenue must be reported in the year it is due and payable, which is not
necessarily in the year the funding will be spent.
The accounting policies adopted that underpin these statements are consistent with
those applied in 2013–14.
Reference should be made to AHL’s Financial Statements in the 2013-14 Annual
Report for detailed disclosure of AHL’s accounting policies.
Asset Valuations
Assets were not independently revalued in 2013-14, the next independent revaluation
of AHL’s Land, Buildings Art and Artefacts is planned to be undertaken as at 30 June
2015.
89
Australian National Audit
Office
Agency Resources and Planned
Performance
AUSTRALIAN NATIONAL AUDIT OFFICE
Section 1: Agency Overview and Resources ........................................................... 95
1.1 Strategic Direction ................................................................................................. 95
1.2 Agency Resource Statement ................................................................................. 96
1.3 Agency Measures Table ........................................................................................ 98
Section 2: Outcomes and Planned Performance ..................................................... 99
2.1 Outcomes and Performance Information .............................................................. 99
Section 3: Explanatory Tables and Budgeted Financial Statements ................... 106
3.1 Explanatory Tables .............................................................................................. 106
3.2 Budgeted Financial Statements .......................................................................... 107
93
AUSTRALIAN NATIONAL AUDIT OFFICE
Section 1: Agency Overview and Resources
1.1
STRATEGIC DIRECTION STATEMENT
The Australian National Audit Office’s (ANAO) vision is to be an international leader
in the provision of independent public sector audit and related services.
The ANAO’s strategic direction is focussed on meeting statutory obligations and
stimulating improvements in public administration.
In 2014-15, the emphasis will be on implementing initiatives to:

ensure our services are high quality and provide insights into better public
administration

drive productivity improvements and support the long term sustainability for our
audit programmes

strengthen our leadership capability and succession planning to support agility in
a complex and dynamic audit environment

strengthen the understanding amongst stakeholders of our role and services.
These initiatives support ANAO values and will be met through the implementation
of the ANAO’s objectives and strategies in four key focus areas:

independent and responsive

value adding services

capability to deliver world class services

confidence in the delivery of our services.
95
ANAO Budget Statements
1.2
AGENCY RESOURCE STATEMENT
Table 1.1 shows the total resources from all sources. The table summarises how
resources will be applied by outcome and by administered and departmental
classification.
The ANAO charges an audit fee for the financial statement audits of Commonwealth
authorities, companies and their subsidiaries subject to the Commonwealth Authorities
and Companies Act 1997. These fees are based on a scale determined by the
Auditor-General under Section 14 of the Auditor-General Act 1997, calculated on the
basis of a cost attribution model. Revenues from these audit fees are paid into the
Official Public Account and are not available to the ANAO. The revenue and receipts
are shown in Table 3.2.7 (Schedule of budgeted income and expenses administered on
behalf of Government) and Table 3.2.9 (Schedule of budgeted administered cash
flows), respectively.
The ANAO is also permitted to charge for ‘audits by arrangement’ under section 20(2)
of the Auditor-General Act 1997. The revenue is shown as sales of goods and rendering
of services in Table 3.2.1 (Comprehensive Income Statement).
96
ANAO Budget Statements
Table 1.1: ANAO Resource Statement — Budget Estimates for 2014-15 as at
Budget May 2014
Estimate
of prior
year amounts
available in
2014-15
$'000
Total
estimate
Actual
available
appropriation
2014-15
$'000
2014-15
$'000
2013-14
$'000
32,942
32,942
73,799
3,500
77,299
32,942
73,799
3,500
110,241
31,577
75,266
3,500
110,343
A
32,942
77,299
110,241
110,343
B
-
-
-
-
32,942
77,299
110,241
110,343
Ordinary annual services1
Departmental appropriation
Prior year departmental appropriation2
Departmental appropriation3
s31 Relevant agency receipts4
Total
Total ordinary annual services
+
Proposed
at Budget
=
Other services
Total other services
Total available annual
appropriations
Special appropriations
Special appropriations limited
by criteria/entitlement
Auditor-General remuneration and
expense - Auditor-General Act 1997
Schedule 1, sections 3 and 7
Total special appropriations
C
-
626
626
626
626
598
598
Total appropriations excluding
Special Accounts
Total Special Account
D
32,942
-
77,925
-
110,867
-
110,941
-
32,942
32,942
77,925
77,925
110,867
110,867
110,941
110,941
Total resourcing
A+B+C+D
Total net resourcing for agency
Note: All figures are GST exclusive.
1
Appropriation Bill (No.1) 2014-15.
2
Estimated adjusted balance carried forward from previous year.
3
Includes an amount of $1.0 million in 2014-15 for the Departmental Capital Budget (refer to table 3.2.5 for
further details). For accounting purposes this amount has been designated as 'contributions by owners'.
s31 relevant agency receipts — estimate.
4
97
ANAO Budget Statements
1.3
AGENCY MEASURES TABLE
Budget measures relating to the ANAO are detailed in Budget Paper No. 2 and are
summarised below.
Table 1.2: ANAO 2014-15 Budget Measures
Part 1: Measures Announced Since the 2013-14 MYEFO
Programme
2013-14
$'000
2014-15
$'000
2015-16
$'000
2016-17
$'000
2017-18
$'000
-
(187)
(187)
(372)
(372)
(553)
(553)
(556)
(556)
-
(187)
(187)
(372)
(372)
(553)
(553)
(556)
(556)
Expense measures
Decrease in estimates (departmental)
Efficiency Dividend — a further temporary
increase of 0.25 per cent
Departmental expenses
Total
All
Total expense measures
Departmental
Total
Prepared on a Government Finance Statistics (fiscal) basis.
98
ANAO Budget Statements
Section 2: Outcomes and Planned Performance
2.1
OUTCOMES AND PERFORMANCE INFORMATION
Government outcomes are the intended results, impacts or consequences of actions by
the Government on the Australian community. Commonwealth programmes are the
primary vehicle by which Government agencies achieve the intended results of their
outcome statements. Agencies are required to identify the programmes which
contribute to Government outcomes over the Budget and forward years.
The ANAO’s outcome is described below together with its related programmes,
specifying the performance indicators and targets used to assess and monitor the
performance of the ANAO in achieving Government outcomes.
The ANAO has management information systems in place to allow it to fully cost all
audit and support activities. All audit-related costs are directly costed to the relevant
audit or related services. All other costs not directly attributable to audits or related
services are allocated having regard to the nature of the expenditure.
Outcome 1: To improve public sector performance and accountability through
independent reporting on Australian Government administration to
Parliament, the Executive and the public.
Outcome 1 Strategy
The key strategy by which the ANAO will seek to achieve this outcome is through its
audit services, which include:

financial statement audits of Australian Government entities

performance audits of Australian Government programmes and entities

The ANAO audits the annual financial statements of Australian Government
entities and the Consolidated Financial Statements of the Australian Government.
The
Consolidated
Financial
Statements
present
the
consolidated
Whole-of-Government financial result inclusive of all Australian Government
controlled entities, including entities outside the general government sector.
These audits are designed to give assurance to stakeholders that an entity’s
financial statements fairly represented its financial operations and financial
position at year end.

the ANAO also undertakes a range of assurance reviews, including an assurance
review of Defence Materiel Organisation major projects
99
ANAO Budget Statements

The ANAO’s performance audit activities involve the audit of all or part of an
entity’s operations to assess its efficiency or administrative effectiveness. The
ANAO identifies areas where improvements can be made to aspects of public
administration, and makes specific recommendations to assist public sector
agencies improve their programme management.

The performance audit activity also extends to conducting performance audits of
Commonwealth partners, which are those bodies (for example: grant recipients or
contractors) that receive money directly or indirectly from the Commonwealth for
a particular purpose. Such audits may be conducted only to the extent that they
assess the operations of the Commonwealth partner in relation to achieving the
Commonwealth purpose. This power also extends to state and territory bodies
that receive money from the Commonwealth if the audit is conducted at the
request of the Joint Committee of Public Accounts and Audit or the responsible
Commonwealth Minister.

The ANAO also contributes to improvements in Commonwealth public
administration by identifying and promoting better practice that assists agencies
to perform at their most efficient level, and adds value to their outputs and
services. Adopting better practices can help transform and improve business
processes and potentially can lead to overall improvements in the administration
of the entity as a whole.
100
ANAO Budget Statements
Outcome Expense Statement
Table 2.1 provides an overview of the total expenses for Outcome 1 by programme.
Table 2.1: Budgeted Expenses for Outcome 1
Outcome 1: To improve public sector performance and
accountability through independent reporting on Australian
Government administration to Parliament, the Executive and the
public.
Programme 1.1: Assurance Audit Services
Departmental expenses
Departmental appropriation1
Special appropriations
2013-14
Estimated
actual
expenses
$'000
46,888
299
Expenses not requiring appropriation in the Budget year2
2014-15
Estimated
expenses
$'000
47,544
313
1,068
1,068
48,255
48,925
29,072
299
839
28,742
313
839
30,210
29,894
Expenses not requiring appropriation in the Budget year2
75,960
598
1,907
76,286
626
1,907
Total expenses for Outcome 1
78,465
78,819
Average Staffing Level (number)
2013-14
349
2014-15
349
Total for Programme 1.1
Programme 1.2: Performance Audit Services
Departmental expenses
Departmental appropriation1
Special appropriations
Expenses not requiring appropriation in the Budget year2
Total for Programme 1.2
Outcome 1 Totals by appropriation type
Departmental expenses
Departmental appropriation1
Special appropriations
Departmental appropriation combines ‘Ordinary annual services (Appropriation Bill No. 1)’ and ‘Revenue
from independent sources (s31)’.
1
2
Expenses not requiring appropriation in the Budget year is made up of depreciation and amortisation
expense.
101
ANAO Budget Statements
Contributions to Outcome 1
Programme 1.1: Assurance Audit Services
Programme Objective
The objectives of this programme are:

to provide assurance on the fair presentation of financial statements of the
Australian Government and its entities by providing independent audit
opinions and related reports for the information of Parliament, the Executive
and the public

to contribute to improvements in the financial administration of Australian
Government entities

to contribute to the auditing profession and public sector developments
nationally and internationally.
Programme Expenses

Expenditure includes Employee Expenses (48%), Supplier Expenses (50%) and
Depreciation and Amortisation Expense (2%).
2013-14
Revised
budget
$'000
Special Appropriations:
Auditor-General remuneration and expenses Auditor-General Act 1997
Annual departmental expenses:
Employee expenses
Supplier expenses
Expenses not requiring appropriation in
the Budget year1
Total programme expenses
2014-15
Budget
$'000
2015-16
Forward
year 1
$'000
2016-17
Forward
year 2
$'000
2017-18
Forward
year 3
$'000
299
313
322
332
342
22,879
24,009
23,066
24,478
23,376
24,325
23,509
24,360
23,536
24,967
1,068
48,255
1,068
48,925
1,068
49,091
1,068
49,269
1,068
49,913
1
Expenses not requiring appropriation in the Budget year is made up of depreciation and amortisation
expense.
102
ANAO Budget Statements
Programme Deliverables
The deliverables for the primary components of this programme are listed below.
2013-14
Revised
budget
2014-15
Budget
2015-16
Forward
year 1
2016-17
Forward
year 2
2017-18
Forward
year 3
Number of financial statement audit
opinions issued
260
260
260
260
260
Number of other assurance reports
produced1
60
60
60
60
60
2
2
2
2
2
20
20
20
20
20
Number of financial statement related
reports produced
Number of engagements that
contribute to public sector auditing and
support developing nations
1
Includes DMO Major Projects report.
Programme Key Performance Indicators
2013-14
Revised
budget
2014-15
Budget
target
2015-16
Forward
year 1
2016-17
Forward
year 2
2017-18
Forward
year 3
Percentage of Parliamentarians
surveyed expressing satisfaction with
assurance provided by ANAO audit
opinions issued in relation to the
financial statements of the Australian
Government and its entities
90%
90%
90%
90%
90%
Percentage of Australian Government
entities that are provided with an audit
opinion for tabling in the Parliament
100%
100%
100%
100%
100%
Percentage of Australian Government
entities that acknowledge the value
added by ANAO services
90%
90%
90%
90%
90%
103
ANAO Budget Statements
Programme 1.2: Performance Audit Services
Programme Objective
The objectives of this programme are:

to report objectively on the performance of Australian Government programmes
and entities, including opportunities for improvement, by undertaking a
programme of independent performance audits and related reports for the
information of Parliament, the Executive and the public

to contribute to improvements in Australian Government administration by
identifying and promoting better practice

to contribute to the auditing profession and public sector developments
nationally and internationally.
Programme Expenses
 Expenditure includes Employee Expenses (71%), Supplier Expenses (26%) and
Depreciation and Amortisation Expense (3%).
2013-14
Revised
budget
$'000
Special Appropriations:
Auditor-General remuneration and expenses Auditor-General Act 1997
2014-15
Budget
$'000
2015-16
Forward
year 1
$'000
2016-17
Forward
year 2
$'000
2017-18
Forward
year 3
$'000
299
313
322
332
342
Annual departmental expenses:
Employee expenses
Supplier expenses
19,982
9,090
21,025
7,717
21,283
6,815
21,413
5,830
21,458
5,641
Expenses not requiring appropriation in
the Budget year1
Total programme expenses
839
30,210
839
29,894
839
29,259
839
28,414
839
28,280
1
Expenses not requiring appropriation in the Budget year is made up of depreciation and amortisation
expense.
104
ANAO Budget Statements
Programme Deliverables
The deliverables for the primary components of this programme are listed below.
Number of performance audit reports
presented1
Number of Better Practice Guides and
other reports produced
Number of appearances and
submissions to Parliamentary
committees
Number of engagements that contribute
to public sector auditing and support
developing nations
2013-14
Revised
budget
2014-15
Budget
2015-16
Forward
year 1
2016-17
Forward
year 2
2017-18
Forward
year 3
50
49
48
47
47
3
3
3
3
3
20
20
20
20
20
20
20
20
20
20
1
These deliverables are dependent on ANAO capacity, and changes to the public sector environment
which influences the scale and scope of performance audits undertaken.
Programme Key Performance Indicators
2013-14
Revised
budget
2014-15
Budget
target
2015-16
Forward
year 1
2016-17
Forward
year 2
2017-18
Forward
year 3
Percentage of Parliamentarians
surveyed expressing satisfaction
with ANAO services directed towards
improving Australian Government
administration
90%
90%
90%
90%
90%
Percentage of recommendations
included in performance audit
reports agreed by audited entities
90%
90%
90%
90%
90%
Percentage of Australian
Government entities that
acknowledge the value added by
ANAO services
90%
90%
90%
90%
90%
105
ANAO Budget Statements
Section 3: Explanatory Tables and Budgeted Financial
Statements
Section 3 presents explanatory tables and budgeted financial statements which
provide a comprehensive snapshot of agency finances for the 2014-15 Budget year. It
explains how budget plans are incorporated into the financial statements and provides
further details of the reconciliation between appropriations and programme expenses,
movements in administered funds, special accounts and Government Indigenous
expenditure.
3.1
EXPLANATORY TABLES
3.1.1 Movement of Administered Funds Between Years
The ANAO does not have any movement of administered funds between years.
3.1.2 Special Accounts
The ANAO does not have any special accounts.
3.1.3 Australian Government Indigenous Expenditure
The ANAO does not administer any Indigenous spending programmes. The ANAO
does undertake financial statement audits of Indigenous entities, and of agencies
administering Indigenous programmes, and also undertakes performance audits of
Indigenous related programmes.
106
ANAO Budget Statements
3.2
BUDGETED FINANCIAL STATEMENTS
3.2.1 Differences in Agency Resourcing and Financial Statements
The Agency Resource Statement (Table 1.1) provides a consolidated view of all the
resources available to an agency in 2014-15. This includes appropriation receivable
that is yet to be drawn down to cover payables and provisions on the Balance Sheet.
The Comprehensive Income Statement (Table 3.2.1) shows the operating appropriation
provided in 2014-15.
3.2.2 Analysis of Budgeted Financial Statements
Departmental
Comprehensive Income Statement
Total income in 2014-15 is budgeted at $76.9 million (2013-14: $78.5 million). Revenue
from Government (appropriation funding) has decreased from $75.0 million to
$73.4 million. This mainly reflects funding reductions arising from efficiency
dividends and other savings measures.
Other revenue is expected to remain steady at $3.5 million. This revenue relates to:

international project funding of $1.8 million to support the Indonesian Board of
Audit and the Papua New Guinea Auditor-General’s Office

own sourced revenue, of $1.7 million, for ‘audits by arrangement’ under section
20(2) of the Auditor-General Act 1997 and building sublease income.
Operating expenses for
(2013-14: $78.5 million).
2014-15
are
estimated
to
total
$78.8
million
Balance Sheet
The Departmental Balance Sheet shows the ANAO’s net asset position remaining
strong and stable.
At this point, no major financial transactions have been planned for 2014-15 and the
total assets and liabilities values are expected to remain stable.
Statement of Cash Flows
The cash flow is consistent with, and representative of, the transactions reported in the
Comprehensive Income Statement, adjusted for non-cash items and anticipated capital
purchases.
The ANAO’s working cash balance is in accordance with the ANAO’s agreement with
the Department of Finance.
107
ANAO Budget Statements
Capital Budget Statement
The Departmental Capital Budget Statement shows the expected capital works
programme for the current and forward years. Total capital expenditure in 2014-15 is
estimated to be $1.0 million. In addition, the ANAO forecasts spending a further
$3.0 million over the forward estimates.
Administered
Schedule of Budgeted Income and Expenses Administered on Behalf of Government
Estimated revenues from the provision of audit services to certain Australian
Government agencies reflect the estimated recovery of audit costs.
Schedule of Budgeted Assets and Liabilities Administered on Behalf of Government
The estimated administered assets and liabilities relate to ongoing audit activity.
No non-financial administered assets are held.
Schedule of Budgeted Administered Cash Flows
Administered monies are transferred to the Official Pubic Account on an ongoing
basis.
108
ANAO Budget Statements
3.2.3 Budgeted Financial Statements Tables
Table 3.2.1 Comprehensive Income Statement (Showing Net Cost of Services)
(for the period ended 30 June)
Estimated
actual
2013-14
$'000
Budget
estimate
2014-15
$'000
Forward
estimate
2015-16
$'000
Forward
estimate
2016-17
$'000
Forward
estimate
2017-18
$'000
43,459
33,099
1,907
78,465
44,717
32,195
1,907
78,819
45,303
31,140
1,907
78,350
45,586
30,190
1,907
77,683
45,678
30,608
1,907
78,193
1,500
200
1,800
3,500
3,500
1,500
200
1,800
3,500
3,500
1,500
200
1,800
3,500
3,500
1,500
200
1,800
3,500
3,500
1,500
200
1,800
3,500
3,500
Net cost of (contribution by)
services
74,965
75,319
74,850
74,183
74,693
Revenue from Government
74,965
73,412*
72,943*
72,276*
72,786*
-
(1,907)
(1,907)
(1,907)
(1,907)
-
(1,907)
(1,907)
(1,907)
(1,907)
2013-14
$'000
2014-15
$'000
2015-16
$'000
2016-17
$'000
EXPENSES
Employee benefits
Suppliers
Depreciation and amortisation
Total expenses
LESS:
OWN-SOURCE INCOME
Own-source revenue
Rendering of services
Rental income
International development funding
Total own-source revenue
Total own-source income
Surplus (Deficit) attributable to
the Australian Government
Total comprehensive income (loss)
attributable to the Australian
Government
Note: Impact of Net Cash Appropriation Arrangements
2012-13
$'000
Total Comprehensive Income
(loss) less depreciation/amortisation
expenses previously funded through
1,907
revenue appropriations
plus depreciation/amortisation expenses
previously funded through revenue
1,907
appropriations1
Total Comprehensive Income
(loss) - as per the Statement of
Comprehensive Income
-
-
-
-
1,907
1,907
1,907
1,907
(1,907)
(1,907)
(1,907)
(1,907)
Prepared on Australian Accounting Standards basis.
1
From 2010-11, the Government introduced net cash appropriation arrangements where Bill 1 revenue
appropriations for the depreciation/amortisation expenses of FMA Act agencies were replaced with a
separate capital budget (the Departmental Capital Budget, or DCB) provided through Bill 1 equity
appropriations. For information regarding DCBs, please refer to Table 3.2.5 Departmental Capital
Budget Statement.
109
ANAO Budget Statements
Table 3.2.2: Budgeted Departmental Balance Sheet (as at 30 June)
Estimated
actual
2013-14
$'000
Budget
estimate
2014-15
$'000
Forward
estimate
2015-16
$'000
Forward
estimate
2016-17
$'000
Forward
estimate
2017-18
$'000
ASSETS
Financial assets
Cash and cash equivalents
Trade and other receivables
Other
Total financial assets
649
34,192
219
35,060
649
33,994
219
34,862
649
33,796
219
34,664
649
33,598
219
34,466
649
33,400
219
34,268
Non-financial assets
Land and buildings
Property, plant and equipment
Intangibles
Other
Total non-financial assets
Total assets
3,681
1,326
1,717
857
7,581
42,641
2,831
1,737
1,262
857
6,687
41,549
1,981
1,497
1,449
857
5,784
40,448
1,131
1,248
1,638
857
4,874
39,340
281
1,546
1,287
857
3,971
38,239
2,952
836
3,788
2,952
638
3,590
2,952
440
3,392
2,952
242
3,194
2,952
44
2,996
14,721
14,721
18,509
14,721
14,721
18,311
14,721
14,721
18,113
14,721
14,721
17,915
14,721
14,721
17,717
24,132
23,238
22,335
21,425
20,522
9,572
626
13,934
24,132
10,585
626
12,027
23,238
11,589
626
10,120
22,335
12,586
626
8,213
21,425
13,590
626
6,306
20,522
LIABILITIES
Payables
Suppliers
Operating lease
Total payables
Provisions
Employee provisions
Total provisions
Total liabilities
Net assets
EQUITY*
Parent entity interest
Contributed equity
Reserves
Retained surplus
Total Equity
Prepared on Australian Accounting Standards basis.
*‘Equity’ is the residual interest in assets after deduction of liabilities.
110
ANAO Budget Statements
Table 3.2.3: Departmental Statement of Changes in Equity — Summary of
Movement (Budget year 2014-15)
Retained
earnings
$'000
Opening balance as at 1 July 2014
Balance carried forward from
previous period
Adjusted opening balance
13,934
13,934
Comprehensive income
Surplus (deficit) for the period
Total comprehensive income
(1,907)
(1,907)
Contributed
equity/
capital
$'000
Total
equity
$'000
626
626
9,572
9,572
-
-
-
-
1,013
1,013
1,013
1,013
12,027
626
10,585
23,238
12,027
626
10,585
23,238
Transactions with owners
Contributions by owners
Departmental Capital Budget (DCBs)
Sub-total transactions with owners
Estimated closing balance
as at 30 June 2015
Closing balance attributable to the
Australian Government
Asset
revaluation
reserve
$'000
Prepared on Australian Accounting Standards basis.
111
24,132
24,132
(1,907)
(1,907)
ANAO Budget Statements
Table 3.2.4: Budgeted Departmental Statement of Cash Flows
(for the period ended 30 June)
Estimated
actual
2013-14
$'000
OPERATING ACTIVITIES
Cash received
Appropriations
Rendering of services
Rent
International development funding
Total cash received
Cash used
Employees
Suppliers
Total cash used
Net cash from (used by)
operating activities
INVESTING ACTIVITIES
Cash used
Purchase of property, plant
and equipment
Purchase of intangibles
Total cash used
Net cash from (used by)
investing activities
FINANCING ACTIVITIES
Cash received
Contributed equity
Total cash received
Net cash from (used by)
financing activities
Net increase (decrease)
in cash held
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the
end of the reporting period
Budget
estimate
2014-15
$'000
Forward
estimate
2015-16
$'000
Forward
estimate
2016-17
$'000
Forward
estimate
2017-18
$'000
73,595
1,500
200
1,800
77,095
73,610
1,500
200
1,800
77,110
73,141
1,500
200
1,800
76,641
72,474
1,500
200
1,800
75,974
72,984
1,500
200
1,800
76,484
43,459
33,356
76,815
44,717
32,393
77,110
45,303
31,338
76,641
45,586
30,388
75,974
45,678
30,806
76,484
280
-
-
-
-
285
894
1,179
651
362
1,013
154
850
1,004
285
712
997
538
466
1,004
(1,179)
(1,013)
(1,004)
(997)
(1,004)
899
899
1,013
1,013
1,004
1,004
997
997
1,004
1,004
899
1,013
1,004
997
1,004
-
-
-
-
-
649
649
649
649
649
649
649
649
649
649
Prepared on Australian Accounting Standards basis.
112
ANAO Budget Statements
Table 3.2.5: Departmental Capital Budget Statement
Estimated
actual
2013-14
$'000
NEW CAPITAL APPROPRIATIONS
Capital budget - Bill 1 (DCB)
Total new capital appropriations
Forward
estimate
2015-16
$'000
Forward
estimate
2016-17
$'000
Forward
estimate
2017-18
$'000
899
899
1,013
1,013
1,004
1,004
997
997
1,004
1,004
899
899
1,013
1,013
1,004
1,004
997
997
1,004
1,004
1,179
1,179
1,013
1,013
1,004
1,004
997
997
1,004
1,004
1,179
1,179
1,013
1,013
1,004
1,004
997
997
1,004
1,004
Provided for:
Purchase of non-financial assets
Total Items
PURCHASE OF NON-FINANCIAL
ASSETS
Funded by capital appropriation - DCB1
TOTAL
Budget
estimate
2014-15
$'000
RECONCILIATION OF CASH
USED TO ACQUIRE ASSETS
TO ASSET MOVEMENT TABLE
Total purchases
Total cash used to acquire assets
Prepared on Australian Accounting Standards basis.
DCB = Departmental Capital Budget.
Includes purchases from current and previous year’s Departmental Capital Budgets.
1
113
ANAO Budget Statements
Table 3.2.6: Statement of Asset Movements (2014-15)
Asset Category
Other property,
plant and
equipment
$'000
$'000
Buildings
As at 1 July 2014
Gross book value
Accumulated depreciation/amortisation
and impairment
Opening net book balance
As at 30 June 2015
Gross book value
Accumulated depreciation/amortisation
and impairment
Closing net book balance
Total
$'000
4,632
1,688
5,618
11,938
(951)
3,681
(362)
1,326
(3,901)
1,717
(5,214)
6,724
CAPITAL ASSET ADDITIONS
Estimated expenditure on
new or replacement assets
By purchase - appropriation ordinary
annual services1
Total additions
Other movements
Depreciation/amortisation expense
Total other movements
Computer
software and
intangibles
$'000
(850)
(850)
651
651
362
362
1,013
1,013
(240)
(240)
(817)
(817)
(1,907)
(1,907)
4,632
2,339
5,980
12,951
101
4,733
122
2,461
3,084
9,064
3,307
16,258
Prepared on Australian Accounting Standards basis.
‘Appropriation ordinary annual services’ refers to funding provided through Appropriation Bill (No.1)
2014-15 for depreciation / amortisation expenses, DCBs or other operational expenses.
1
114
ANAO Budget Statements
Table 3.2.7: Schedule of Budgeted Income and Expenses Administered on
Behalf of Government (for the period ended 30 June)
Estimated
actual
2013-14
$'000
Budget
estimate
2014-15
$'000
Forward
estimate
2015-16
$'000
Forward
estimate
2016-17
$'000
Forward
estimate
2017-18
$'000
12,500
12,500
12,650
12,650
13,000
13,000
13,150
13,150
13,300
13,300
OWN-SOURCE INCOME
Own-source revenue
Non-taxation revenue
Rendering of services
Total non-taxation revenue
Total own-source revenues
administered on behalf of
Government
12,500
12,650
13,000
13,150
13,300
Total own-sourced income
administered on behalf of
Government
12,500
12,650
13,000
13,150
13,300
Net Cost of (contribution by)
services
Surplus (Deficit)
Total comprehensive income (loss)
12,500
12,500
12,500
12,650
12,650
12,650
13,000
13,000
13,000
13,150
13,150
13,150
13,300
13,300
13,300
Prepared on Australian Accounting Standards basis.
115
ANAO Budget Statements
Table 3.2.8: Schedule of Budgeted Assets and Liabilities Administered on Behalf
of Government (as at 30 June)
Estimated
actual
2013-14
$'000
Budget
estimate
2014-15
$'000
Forward
estimate
2015-16
$'000
Forward
estimate
2016-17
$'000
Forward
estimate
2017-18
$'000
ASSETS
Financial assets
Receivables
Other
Total financial assets
4,686
1,445
6,131
4,686
1,445
6,131
4,686
1,445
6,131
4,686
1,445
6,131
4,686
1,445
6,131
Total assets administered
on behalf of Government
6,131
6,131
6,131
6,131
6,131
426
426
426
426
426
426
426
426
426
426
426
5,705
426
5,705
426
5,705
426
5,705
426
5,705
LIABILITIES
Payables
Suppliers
Total payables
Total liabilities administered
on behalf of Government
Net assets/(liabilities)
Prepared on Australian Accounting Standards basis.
116
ANAO Budget Statements
Table 3.2.9: Schedule of Budgeted Administered Cash Flows
(for the period ended 30 June)
Estimated
actual
2013-14
$'000
OPERATING ACTIVITIES
Cash received
Rendering of services
Total cash received
Cash used
Other
Total cash used
Net cash from (used by)
operating activities
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the
end of the reporting period
Budget
estimate
2014-15
$'000
Forward
estimate
2015-16
$'000
Forward
estimate
2016-17
$'000
Forward
estimate
2017-18
$'000
12,500
12,500
12,650
12,650
13,000
13,000
13,150
13,150
13,300
13,300
12,500
12,500
12,650
12,650
13,000
13,000
13,150
13,150
13,300
13,300
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Prepared on Australian Accounting Standards basis.
117
Australian Public Service
Commission
Agency Resources and Planned
Performance
AUSTRALIAN PUBLIC SERVICE COMMISSION
Section 1: Agency Overview and Resources ......................................................... 123
1.1 Strategic Direction Statement .............................................................................. 123
1.2 Agency Resource Statement ............................................................................... 124
1.3 Budget Measures ................................................................................................ 126
Section 2: Outcomes and Planned Performance ................................................... 127
2.1 Outcomes and Performance Information ............................................................ 127
Section 3: Explanatory Tables and Budgeted Financial Statements ................... 138
3.1 Explanatory Tables .............................................................................................. 138
3.2 Budgeted Financial Statements .......................................................................... 139
121
AUSTRALIAN PUBLIC SERVICE COMMISSION
Section 1: Agency Overview and Resources
1.1
STRATEGIC DIRECTION STATEMENT
The planned outcome of the Australian Public Service Commission (APSC) is to
increase awareness and adoption of best practice public administration by the
Australian Public Service (APS) through leadership, promotion, advice and
professional development, drawing on research and evaluation. The APSC takes a
central leadership role in providing expertise, guidance, performance monitoring and
some centralised services to all agencies. The APSC also undertakes statutory
functions under the Public Service Act 1999, including functions to strengthen the
Australian Public Service’s integrity and quality of employment decision-making.
In 2014-15 the APSC will continue to focus on its five strategic priorities. These
priorities reflect our statutory responsibilities, are consistent with the
Whole-of-Government reform and delivery agenda and form the basis for the
programme objectives and outputs detailed in the following sections. Our strategic
objectives are:

to build a unified, citizen-centric APS by leading its organisational and human
capital strategies

to lead APS agencies’ adoption of best human capital practices and assure
agencies’ organisational capability

to develop outstanding leaders and shape a cohesive leadership network

to instil and enliven APS ethics and values to inspire excellence

to invest in and grow the APSC’s capability to deliver its role.
123
APSC Budget Statements
1.2
AGENCY RESOURCE STATEMENT
Table 1.1 shows the total resources from all sources. The table summarises how
resources will be applied by outcome and by administered and departmental
classification.
Table 1.1: APSC Resource Statement — Budget Estimates for 2014-15 as at
Budget May 2014
Estimate
of prior
year amounts
available in
2014-15
$'000
Total
estimate
Actual
available
appropriation
2014-15
$'000
2014-15
$'000
2013-14
$'000
21,957
21,957
22,072
21,894
43,966
21,957
22,072
21,894
65,923
21,899
22,637
25,420
69,956
A
21,957
43,966
65,923
69,956
B
-
-
-
-
21,957
43,966
65,923
69,956
-
61,963
61,963
61,963
61,963
60,806
60,806
21,957
105,929
127,886
130,762
Ordinary annual services1
Departmental appropriation
Prior year departmental appropriation2
Departmental appropriation3
s31 Relevant agency receipts4
Total
Total ordinary annual services
+
Proposed
at Budget
=
Other services5
Total other services
Total available annual
appropriations
Special appropriations
Special appropriations limited
by criteria/entitlement
Remuneration Tribunal Act 1973
Total special appropriations
C
Total appropriations excluding
Special Accounts
Special Accounts
Total Special Account
-
-
-
-
Total resourcing
A+B+C+D
D
21,957
105,929
127,886
130,762
Total net resourcing for Australian
Public Service Commission
21,957
105,929
127,886
130,762
Reader note: All figures are GST exclusive.
1
Appropriation Bill (No.1) 2014-15.
2
Estimated adjusted balance carried forward from previous year.
3
Includes an amount of $0.4 million in 2014-15 for the Departmental Capital Budget (refer to table 3.2.5 for
further details). For accounting purposes this amount has been designated as 'contributions by owners'.
s31 Relevant agency receipts — estimate.
4
5
Appropriation Bill (No.2) 2014-15.
124
APSC Budget Statements
Third Party Payments From and on Behalf of Other Agencies
2014-15
$'000
2013-14
$'000
3,816
3,744
Department of the House of Representatives:
Remuneration Tribunal Act 1973
38,960
38,233
Department of the Senate:
Remuneration Tribunal Act 1973
19,187
18,829
61,963
60,806
Payments made by other agencies on behalf of
Australian Public Service Commission:
Attorney-General's Department:
Remuneration Tribunal Act 1973
Total payments made by other agencies
125
APSC Budget Statements
1.3
BUDGET MEASURES
Budget measures in Part 1 relating to the APSC are detailed in Budget Paper No. 2 and
are summarised below.
Table 1.2: APSC 2014-15 Budget Measures
Part 1: Measures Announced Since the 2013-14 MYEFO
Programme
Expense measures
Efficiency Dividend — a further
temporary increase of 0.25 per cent
Departmental expenses
Total
2013-14
$'000
2015-16
$'000
2016-17
$'000
2017-18
$'000
-
(56)
(56)
(106)
(106)
(159)
(159)
(160)
(160)
-
(56)
(56)
(106)
(106)
(159)
(159)
(160)
(160)
-
(1)
(1)
(2)
(2)
(3)
(3)
(3)
(3)
-
(1)
(1)
(2)
(2)
(3)
(3)
(3)
(3)
1.1
Total expense measures
Departmental expenses
Total
Capital measures
Efficiency Dividend — a further
temporary increase of 0.25 per cent
Departmental capital
Total
2014-15
$'000
1.1
Total capital measures
Departmental capital
Total
Prepared on a Government Finance Statistics (fiscal) basis.
Part 2: MYEFO Measures Not Previously Reported in a Portfolio Statement
Programme
Measures
Reforms to APS management and
efficient procurement of agency
software
Departmental expenses
Total
Efficiency dividend — temporary
increase in the rate
Departmental capital
Departmental expenses
Total
2013-14
$'000
2014-15
$'000
2015-16
$'000
2016-17
$'000
2017-18
$'000
(38)
(38)
(92)
(92)
(174)
(174)
(208)
(208)
(208)
(208)
(4)
(222)
(226)
(10)
(482)
(492)
(15)
(751)
(766)
(15)
(751)
(766)
(318)
(318)
(666)
(666)
(974)
(974)
(974)
(974)
1.1
1.1
-
Total measures
Departmental
Total
(38)
(38)
Prepared on a Government Finance Statistics (fiscal) basis.
126
APSC Budget Statements
Section 2: Outcomes and Planned Performance
2.1
OUTCOMES AND PERFORMANCE INFORMATION
Government outcomes are the intended results, impacts or consequences of actions by
the government on the Australian community. Commonwealth programmes are the
primary vehicle by which Government agencies achieve the intended results of their
outcome statements. Agencies are required to identify the programmes which
contribute to Government outcomes over the Budget and forward years.
The APSC’s outcome is described below together with its related programmes,
specifying the performance indicators and targets used to assess and monitor the
performance of the APSC in achieving Government outcomes.
Outcome 1: Increased awareness and adoption of best practice public
administration by the public service through leadership, promotion, advice
and professional development, drawing on research and evaluation.
Outcome 1 Strategy
The APSC takes a central leadership role in providing expertise, guidance,
performance monitoring and some centralised services to all agencies covering:

improving the alignment and quality of APS human capital planning and
management in order to enhance APS-wide and agency capability through
building a strategic and coordinated approach to the development of APS leaders
and its people

ensuring greater consistency for a united APS, including through promotion of the
APS values and its ethical framework and coordination of workplace relations for
Australian Government employees

fostering capability and stewardship at the APS level and assuring agency
capability and effectiveness, including through processes for improved workforce
planning and agency capability reviews

strengthening the APS’s leadership and management capabilities, and building the
bench strength of its leadership cohorts, through the implementation of a
Whole-of-APS Leadership and Core Skills Strategy.
The APSC also undertakes statutory functions under the Public Service Act 1999,
including functions to strengthen the Australian Public Service’s integrity and
improve the quality of employment decision-making.
127
APSC Budget Statements
The APSC is responsible for Australian Government policies for enterprise bargaining
in Australian Government employment, classification structures, pay and employment
conditions for Australian Government employees, work level standards and
workplace relations advice. These include encouraging agencies to establish
workplace arrangements that support efficient public administration.
The APSC will continue to report publicly on the state of the APS through the 2014-15
State of the Service report which will assess APS workforce trends and capability. One
of the key information sources for the report is a census of all APS employees.
The APSC international programmes will continue to develop public sector capability
and capacity in partnership with developing countries, consistent with the priorities of
the Australian Government’s aid programme.
The APSC will continue to focus on APS people and organisational performance,
investing in APS development and capability and Australian Government
employment workplace relations and to support agencies through:

a Memorandum of Understanding with relevant agencies to deliver leadership
and skills development, talent management services and a Whole-of-Government
approach to the recruitment (and retention) of Indigenous employees

effective communication strategies that minimise the burden on agencies in
adopting new guidelines and frameworks

the provision of advice on agency-specific processes and capability development

the conduct of a programme of capability reviews.
128
APSC Budget Statements
Outcome Expense Statement
Table 2.1 provides an overview of the total expenses for Outcome 1, by programme.
Table 2.1: Budgeted Expenses for Outcome 1
Outcome 1: Increased awareness and adoption of best practice
public administration by the public service through leadership,
promotion, advice and professional development, drawing on
research and evaluation.
Programme 1.1: Australian Public Service Commission
Departmental expenses
Departmental appropriation1
Expenses not requiring appropriation in the Budget year2
2013-14
Estimated
actual
expenses
$'000
2014-15
Estimated
expenses
$'000
47,387
775
43,544
1,163
48,162
44,707
60,806
61,963
60,806
61,963
60,806
61,963
47,387
775
43,544
1,163
Total expenses for Outcome 1
108,968
106,670
Average Staffing Level (number)
2013-14
248
2014-15
226
Total for Programme 1.1
Programme 1.2: Parliamentarians' and Judicial Office Holders'
Remuneration and Entitlements
Administered expenses
Special appropriations
Total for Programme 1.2
Outcome 1 Totals by appropriation type
Administered Expenses
Special appropriations
Departmental expenses
Departmental appropriation1
Expenses not requiring appropriation in the Budget year2
Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of
the Budget year as Government priorities change.
Departmental appropriation combines ‘Ordinary annual services (Appropriation Bill No. 1)’ and ‘Revenue
from independent sources (s31)’.
1
2
Expenses not requiring appropriation in the Budget year is made up of depreciation expense, amortisation
expense and audit fees.
129
APSC Budget Statements
Contributions to Outcome 1
Programme 1.1: Australian Public Service Commission
Programme 1.1 Objectives
APS People and Organisational Performance
 to provide high quality policy advice to the Government, the Minister and the
Australian Public Service Commissioner, and employment services, on matters
covered by the Public Service Act 1999
 to provide an evidence base for the alignment and quality of APS human capital
planning and management to enhance APS-wide and agency capability
 to facilitate the continuous improvement of the approach to APS-wide workforce
planning that supports effective deployment and management of human capital
 to manage and provide quality policy advice on the Australian Public Service
Commissioner’s statutory responsibilities in relation to SES employees, agency
heads and statutory office holders
 to undertake agency capability reviews to assist agencies to improve institutional
capabilities and strengthen accountability of agency performance
 to support the review, inquiry and reporting functions of the Australian Public
Service Commissioner and the Merit Protection Commissioner and contribute to
improving the standards of decision-making and people management practices
across the APS
 to work with agencies to implement the amended Public Service Act 1999 and
embed the revised APS Values, and promote public service ethics and integrity
 to work with agencies to build a high performance culture across the APS
 to ensure that APS agencies have access to leadership strategies to enhance
agency specific capability and leadership development through guidance,
networks and client engagement activities
 to deliver strategies under the Indigenous Employment Strategy to improve the
retention of Indigenous staff in the APS and work with agencies to continue to
focus on the strategies in the APS Indigenous Pathways to Employment
programme
 to contribute to the enhanced diversity of the APS to ensure it reflects and is
responsive to the wider community and work with agencies to implement the
as one – Australian Public Service Disability Employment Strategy aimed at
strengthening the APS as a progressive and sustainable employer of people with
disability.
130
APSC Budget Statements
Investing in APS Development and Capability
 to reinvigorate strategic leadership capability by enhancing the capability of
current and future APS leaders
 to enhance the core skills of the APS workforce
 to improve the efficiency and effectiveness of leadership and core skills
development across the APS
 to enable agencies to enhance their approach to leadership development, talent
management and core skills learning and development
 to contribute to the increased awareness and adoption of best practice public
administration by providing leadership and professional development
programmes
 to assist APS agencies to achieve effective and efficient procurement of capability
development services
 to assist identified International Governments to build public sector capability
and capacity on behalf of the Australian Government.
Australian Government Employment Workplace Relations
 to foster efficient APS workforce relations to ensure employment bargaining
supports affordable and productive workforce arrangements and to provide
advice and support for workplace relations within Australian Government
employment
 to strengthen and streamline the employment bargaining framework
 to enhance and maintain employment frameworks, including classification and
work level standards, to support cost-effective whole-of-APS delivery to
government and stakeholders
 to advise agencies on the impact of Machinery of Government changes on the
terms and conditions of employees
 to assist in the process of modernising the APS Award and several non-APS
awards
 to assist the Remuneration Tribunal and the Defence Force Remuneration
Tribunal meet their respective statutory obligations.
131
APSC Budget Statements
Programme 1.1 Expenses
Expenses are expected to reduce in 2014-15 as agency demand for the APSC’s
services is expected to reduce and planned activities for the agency capability
reviews are near completion.
Expenses are also expected to reduce in 2015-16 due to the termination in 2014-15 of
the Australian Public Service Employment and Capability Strategy for Aboriginal
and/or Torres Strait Islander Employees Budget measure.
Expenses are expected to reduce in 2016-17 as the five year agency funding
agreements for the Strategic Centre for APS Leadership, Learning and Development
expires.
2013-14
Estimated
actual
$'000
Annual departmental expenses:
Departmental appropriation
Expenses not requiring appropriation in
the Budget year1
Total Programme expenses
2014-15
Budget
$'000
2015-16
Forward
estimate
$'000
2016-17
Forward
estimate
$'000
2017-18
Forward
estimate
$'000
47,387
43,544
41,297
36,754
37,066
775
48,162
1,163
44,707
1,164
42,461
1,165
37,919
1,166
38,232
1
Expenses not requiring appropriation in the Budget year is made up of depreciation expense,
amortisation expense and audit fees.
132
APSC Budget Statements
Programme 1.1 Deliverables
The APSC’s key deliverables are:
APS People and Organisational Performance

providing high quality policy advice to the Government, the Minister and the
Australian Public Service Commissioner on matters covered by the Public Service
Act 1999

monitoring and supporting the continuous and sustainable development of
agencies’ workforce planning and capability frameworks and benchmarking
processes

supporting the review, inquiry and reporting functions and contribute to
improving the standards of decision-making and people management practices
across the APS

working with agencies to embed the APS Values that are effective in driving
performance and cultural change, and promote public service ethics and
integrity

providing agency capability reviews, reports and capability improvement plans

embedding an attitudinal and behavioural change to the management of
performance to build a high performance culture across the APS

improving retention, over time, of Indigenous staff through strategies under the
Indigenous Employment Strategy and support the as one – Australian Public Service
Disability Employment Strategy aimed at strengthening the APS as a progressive
and sustainable employer of people with disability

providing the publication of the State of the Service Report and other reports to
assist in advising Government and the APS

delivering the Ethics Advisory Service to assist employees and agencies

meeting performance benchmarks in discharging statutory functions in respect
of SES matters.
Investing in APS Development and Capability

developing and reviewing the APS Leadership and Core Skills Strategy reflecting
the current and emerging business needs of the APS, and drawing on
evidence-based research and best practice

designing, developing and delivering best practice, contemporary leadership
development programmes and interventions

designing, developing and delivering intensive development for high potential
leaders

designing contemporary, best practice learning programmes and interventions
relating to management and core skills
133
APSC Budget Statements

the quality assessing of development providers

centrally procuring programmes where there is a return on investment in terms
of efficiency and/or cultural benefits

improving evaluation of programme outcomes

thought leadership, supporting and advising support agency best practice in the
areas of leadership, learning and development

providing a range of leadership and professional development programmes that
build knowledge and skills to improve capability

establishing and managing panels of high quality suppliers whose services
support APS development and capability

strengthening the capability of partner governments to develop and implement
strategic initiatives that improve their public sector effectiveness, efficiency and
the quality of services to citizens.
Australian Government Employment Workplace Relations

providing high quality advice to agencies and the Minister on workplace
employment arrangements

administering enterprise bargaining arrangements

maintaining and supporting the policy and employment frameworks, including
the APS-wide work level standards and classifications to ensure that these
arrangements support a united APS

providing high-quality advisory and administrative support
Remuneration Tribunal and the Defence Force Remuneration Tribunal.
134
to
the
APSC Budget Statements
Programme 1.1 Key Performance Indicators
 APS has sufficient leadership capability to meet current and future business
requirements - to become more citizen-centric, to be able to solve complex
problems, to operate as one-APS, to anticipate challenges and implement
Government programmes and decisions effectively
 APS agencies have access to high quality, contemporary, strategically aligned
leadership and talent development programmes that build the capability
required in the APS
 the degree to which programmes improve leadership and management
effectiveness
 APS agencies have a range of means for accessing core skills development
programmes
 improved quality and consistency of core skills delivery across the APS through
agency use of quality assured providers and learning designs
 APS agencies have access to thought leadership, support and advice to support
their leadership development and talent management initiatives
 procurement of capability development services maximises the return on the
financial investment made by APS agencies
 APS will support the Australian Government’s aid programme by strengthening
the capability of partner governments to develop and implement strategic
initiatives that improve their public sector effectiveness, efficiency and the
quality of service to citizens.
135
APSC Budget Statements
Programme 1.1 Key Performance Indicators (continued)
2013-14
Revised
budget
2014-15
Budget
target
2015-16
Forward
year 1
2016-17
Forward
year 2
2017-18
Forward
year 3
Very
good or
above
Very
good or
above
Very
good or
above
Very
good or
above
Very
good or
above
195
195
195
195
195
70%
70%
70%
70%
70%
75%
75%
75%
75%
75%
80%
80%
80%
80%
80%
• President of the Defence Force
Remuneration Tribunal with the quality
and timeliness of the services provided
by the Secretariat
Very
good or
above
Very
good or
above
Very
good or
above
Very
good or
above
Very
good or
above
• President of the Remuneration Tribunal
with the quality and timeliness of the
services provided by the Secretariat
Very
good or
above
Very
good or
above
Very
good or
above
Very
good or
above
Very
good or
above
Degree of satisfaction of Minister and
agency heads, as expressed through
feedback about the quality and timeliness
of services and advice provided by the
APSC
Number of reviews, excluding promotion
reviews, finalised on behalf of the Merit
Protection Commissioner
Percentage of reviews conducted on
behalf of the Merit Protection
Commissioner completed within published
timeframes
Percentage of high level use of and
satisfaction with the State of the Service
Report and other research and evaluation
reports by the SES, agencies and other
clients
Percentage of responding surveyed
participants that attended a Commission
programme agreed that the programme
improved their knowledge and skills
Level of satisfaction of the:
136
APSC Budget Statements
Programme 1.2: Parliamentarians’ and Judicial Office Holders Remuneration
and Entitlements.
Programme 1.2 Objective
The objective of this programme is to facilitate the payment of remuneration,
allowances and entitlements to Parliamentarians’ and Judicial Office Holders.
Programme 1.2 Expenses
The Department of the Senate, the Department of the House of Representatives and
the Attorney-General’s Department make all of the payments for this programme.
These payments are funded by special appropriations and expenses move in line
with the level of remuneration, allowances and entitlements for Parliamentarians
and Judicial Office Holders.
2013-14
Estimated
actual
$'000
Special Appropriations:
Remuneration Tribunal Act 1973
Total Programme expenses
2014-15
Budget
$'000
60,806
60,806
61,963
61,963
2015-16
Forward
estimate
$'000
2016-17
Forward
estimate
$'000
2017-18
Forward
estimate
$'000
63,141
63,141
64,404
64,404
65,692
65,692
Programme 1.2 Deliverables
The key deliverable is the payment of remuneration, allowances and entitlements to
Parliamentarians and Judicial Office Holders.
Data is not provided for deliverables because the administered items are paid by the
Department of the Senate, the Department of the House of Representatives and the
Attorney-General’s Department.
Programme 1.2 Key Performance Indicators
Percentage of all variations to
remuneration and entitlements are
processed in a timely manner with
an accuracy of at least 99 per cent
2013-14
Estimated
actual
2014-15
Budget
2015-16
Forward
estimate
2016-17
Forward
estimate
2017-18
Forward
estimate
99%
99%
99%
99%
99%
137
APSC Budget Statements
Section 3: Explanatory Tables and Budgeted Financial
Statements
Section 3 presents explanatory tables and budgeted financial statements which
provide a comprehensive snapshot of agency finances for the 2014-15 Budget year. It
explains how budget plans are incorporated into the financial statements and provides
further details of the reconciliation between appropriations and programme expenses,
movements in administered funds, special accounts and Government Indigenous
expenditure.
3.1
EXPLANATORY TABLES
3.1.1 Movement of Administered Funds Between Years
APSC does not have any movement of administered funds between years.
3.1.2 Special Accounts
APSC does not have any special accounts.
3.1.3 Australian Government Indigenous Expenditure
Table 3.1.3: Australian Government Indigenous Expenditure (AGIE)
Appropriations
Bill
Total
No. 1
approp
$'000
$'000
Other
Total
$'000
$'000
Australian Public Service
Commission
Outcome 1
Departmental 2014-15
Departmental 2013-14
Total outcome 2014-15
Total outcome 2013-14
830
772
830
772
830
772
830
772
1,380
1,360
1,380
1,360
2,210
2,132
2,210
2,132
Total departmental 2014-15
Total departmental 2013-14
830
772
830
772
1,380
1,360
2,210
2,132
Total AGIE 2014-15
Total AGIE 2013-14
830
772
830
772
1,380
1,360
2,210
2,132
138
Programme
1.1
1.1
APSC Budget Statements
3.2
BUDGETED FINANCIAL STATEMENTS
3.2.1 Differences in Agency Resourcing and Financial Statements
The Agency Resource Statement (Table 1.1) provides a consolidated view of all the
resources available to the agency in 2014-15 including both departmental and
administered funding. This includes appropriation that is yet to be drawn down to
cover departmental payables and provisions on the Balance Sheet. The Departmental
Comprehensive Income Statement (Table 3.2.1) shows only the departmental
operating appropriation provided in each year.
3.2.2 Analysis of Budgeted Financial Statements
Departmental
Income Statement
In all Budget years the APSC is budgeting for a break-even operating result, adjusted
for depreciation and amortisation expense.
Appropriation revenue will decrease by $0.3 million from $22.0 million in 2013-14 to
$21.7 million in 2014-15 due to an increase in efficiency dividend and saving measures.
Appropriations will reduce in 2015-16 as funding terminates for the Australian Public
Service Employment and Capability Strategy for Aboriginal and/or Torres Strait
Islander Employees Budget measure.
Goods and services income will reduce in 2014-15 as there is expected to be reduced
demand for the APSC’s services and planned activities for the agency capability
reviews are near completion.
Income is projected to reduce in 2016-17 as a result of the expiration of the five year
agency funding agreements for the Strategic Centre for APS Leadership, Learning and
Development.
Balance Sheet
Cash balances are maintained at a working capital level of $0.5 million. Cash holdings
above this level are transferred as a receivable held in the Official Public Account.
Receivables vary in line with the APSC’s capital investment cycle for FMA s31 funded
fee for service activities. Receivables will remain constant in 2014-15 and decrease in
future years to enable future asset reinvestment.
139
APSC Budget Statements
The main payables and provisions of the APSC are expected to remain at around
current levels. The operating lease incentive liability will reduce over the Budget year
and forward years as the upfront incentives received from lessors for office leases are
allocated as rebates to lease expense over the term of those leases.
Net equity will reduce over the Budget and forward years as the level of departmental
capital budget funding is lower than the loss incurred due to net cash appropriation
arrangements.
Administered
The administered transactions are for payments of Parliamentarians’ and Judicial
Office Holders’ remuneration and entitlements. These payments are funded by special
appropriations and are disclosed in the administered schedule of income and expenses
and schedule of cash flows. There are no administered liabilities or assets as all
remuneration and entitlements are paid in the month in which they are incurred.
Expenses are expected to increase each year as the Remuneration Tribunal is required
by its legislation to review remuneration for Parliamentarians’ and Judicial Office
Holders’ annually. In the past this review has generally led to increases in
remuneration.
140
APSC Budget Statements
3.2.3 Budgeted Financial Statements Tables
Table 3.2.1: Comprehensive Income Statement (Showing Net Cost of Services)
for the period ended 30 June
Estimated
actual
2013-14
$'000
Budget
estimate
2014-15
$'000
Forward
estimate
2015-16
$'000
Forward
estimate
2016-17
$'000
Forward
estimate
2017-18
$'000
EXPENSES
Employee benefits
Suppliers
Depreciation and amortisation
Finance costs
Total expenses
29,333
17,642
1,168
19
48,162
27,519
15,772
1,396
20
44,707
26,416
14,631
1,396
18
42,461
23,205
13,307
1,396
11
37,919
23,389
13,446
1,396
1
38,232
LESS:
OWN-SOURCE INCOME
Own-source revenue
Sale of goods and rendering of services
Other
Total own-source revenue
25,419
41
25,460
21,894
41
21,935
20,564
42
20,606
16,180
43
16,223
16,297
44
16,341
Total own-source income
25,460
21,935
20,606
16,223
16,341
Net cost of (contribution by)
services
22,702
22,772
21,855
21,696
21,891
Revenue from Government
21,968
21,650
20,733
20,574
20,769
Surplus (Deficit)
(734)
(1,122)
(1,122)
(1,122)
(1,122)
Total comprehensive income (loss)
(734)
(1,122)
(1,122)
(1,122)
(1,122)
2014-15
$'000
2015-16
$'000
2016-17
$'000
2017-18
$'000
Note: Impact of Net Cash Appropriation Arrangements
2013-14
$'000
Total Comprehensive Income
(loss) excluding depreciation/amortisation
expenses Currently funded through
revenue appropriations
less depreciation/amortisation expenses
Currently funded through revenue
appropriations1
Total Comprehensive Income
(loss) - as per the Statement of
Comprehensive Income
-
-
-
-
734
1,122
1,122
1,122
1,122
(734)
(1,122)
(1,122)
(1,122)
(1,122)
Prepared on Australian Accounting Standards basis.
1
From 2010-11, the government introduced net cash appropriation arrangements where Bill 1 revenue
appropriations for the depreciation/amortisation expenses of FMA Act agencies were replaced with a
separate capital budget (the Departmental Capital Budget, or DCB) provided through Bill 1 equity
appropriations. For information regarding DCBs, please refer to Table 3.2.5 Departmental Capital Budget
Statement.
141
APSC Budget Statements
Table 3.2.2: Budgeted Departmental Balance Sheet (as at 30 June)
Estimated
actual
2013-14
$'000
Budget
estimate
2014-15
$'000
Forward
estimate
2015-16
$'000
Forward
estimate
2016-17
$'000
Forward
estimate
2017-18
$'000
450
27,368
27,818
450
26,802
27,252
450
26,114
26,564
450
25,558
26,008
450
24,827
25,277
2,253
1,252
1,162
55
992
5,714
1,924
993
1,418
55
992
5,382
1,598
860
1,379
55
992
4,884
1,372
679
1,285
55
992
4,383
1,140
493
1,207
55
992
3,887
Total assets
33,532
32,634
31,448
30,391
29,164
LIABILITIES
Payables
Suppliers
Operating lease incentives
Unearned income
Total payables
7,499
934
7,436
15,869
7,447
768
7,436
15,651
7,314
602
7,436
15,352
7,114
436
7,436
14,986
6,921
338
7,436
14,695
7,131
391
7,522
7,131
411
7,542
7,131
228
7,359
7,131
239
7,370
7,131
7,131
Total liabilities
23,391
23,193
22,711
22,356
21,826
Net assets
10,141
9,441
8,737
8,035
7,338
369
1,323
791
1,323
1,209
1,323
1,629
1,323
2,054
1,323
8,449
7,327
6,205
5,083
3,961
10,141
9,441
8,737
8,035
7,338
ASSETS
Financial assets
Cash and cash equivalents
Trade and other receivables
Total financial assets
Non-financial assets
Land and buildings
Property, plant and equipment
Intangibles
Inventories
Prepayments
Total non-financial assets
Provisions
Employee provisions
Provision for restoration obligations
Total provisions
EQUITY
Contributed equity
Reserves
Retained surplus
(accumulated deficit)
Total Equity
Prepared on Australian Accounting Standards basis.
*'Equity' is the residual interest in assets after deduction of liabilities.
142
APSC Budget Statements
Table 3.2.3: Departmental Statement of Changes in Equity — Summary
of Movement (Budget year 2014-15)
Retained
earnings
$'000
Opening balance as at 1 July 2014
Balance carried forward from
previous period
Adjusted opening balance
8,449
8,449
Comprehensive income
Surplus (deficit) for the period
Total comprehensive income
Asset Contributed
revaluation
equity/
reserve
capital
$'000
$'000
Total
equity
$'000
1,323
1,323
369
369
(1,122)
-
-
(1,122)
(1,122)
-
-
(1,122)
-
-
422
422
422
422
7,327
1,323
791
9,441
Transactions with owners
Contributions by owners
Departmental Capital Budget (DCBs)
Sub-total transactions with owners
Estimated closing balance
as at 30 June 2015
Prepared on Australian Accounting Standards basis.
143
10,141
10,141
APSC Budget Statements
Table 3.2.4: Budgeted Departmental Statement of Cash Flows
(for the period ended 30 June)
Estimated
actual
2013-14
$'000
OPERATING ACTIVITIES
Cash received
Appropriations
Sale of goods and rendering of services
Other
Total cash received
Cash used
Employees
Suppliers
Other
Total cash used
Net cash from (used by)
operating activities
Budget
estimate
2014-15
$'000
Forward
estimate
2015-16
$'000
Forward
estimate
2016-17
$'000
Forward
estimate
2017-18
$'000
21,968
25,419
1,859
49,246
21,650
21,894
2,252
45,796
20,733
20,564
2,263
43,560
20,574
16,180
1,977
38,731
20,769
16,297
2,190
39,256
29,333
19,594
183
49,110
27,519
17,635
45,154
26,416
16,463
42,879
23,205
15,051
38,256
23,389
15,152
38,541
136
642
681
475
715
1
1
-
-
-
-
931
931
1,064
1,064
898
201
1,099
895
895
900
240
1,140
(930)
(1,064)
(1,099)
(895)
(1,140)
INVESTING ACTIVITIES
Cash received
Proceeds from sales of property,
plant and equipment
Total cash received
Cash used
Purchase of property, plant
and equipment
Payment of restoration obligations
Total cash used
Net cash from (used by)
investing activities
FINANCING ACTIVITIES
Cash received
Contributed equity
Total cash received
Net cash from (used by)
financing activities
Net increase (decrease)
in cash held
Cash and cash equivalents at the
beginning of the reporting period
669
669
422
422
418
418
420
420
425
425
669
422
418
420
425
-
-
-
-
575
450
450
450
450
450
450
450
450
450
(125)
Cash and cash equivalents at the
end of the reporting period
Prepared on Australian Accounting Standards basis.
144
APSC Budget Statements
Table 3.2.5: Departmental Capital Budget Statement
Estimated
actual
2013-14
$'000
NEW CAPITAL APPROPRIATIONS
Capital budget - Bill 1 (DCB)
Total new capital appropriations
Budget
estimate
2014-15
$'000
Forward
estimate
2015-16
$'000
Forward
estimate
2016-17
$'000
Forward
estimate
2017-18
$'000
669
669
422
422
418
418
420
420
425
425
669
669
422
422
418
418
420
420
425
425
669
422
418
420
425
TOTAL
262
931
642
1,064
681
1,099
475
895
715
1,140
RECONCILIATION OF CASH
USED TO ACQUIRE ASSETS
TO ASSET MOVEMENT TABLE
Total purchases
Total cash used to acquire assets
931
931
1,064
1,064
1,099
1,099
895
895
1,140
1,140
Provided for:
Purchase of non-financial assets
Total Items
PURCHASE OF NON-FINANCIAL
ASSETS
Funded by capital appropriation - DCB1
Funded internally from
departmental resources2
Prepared on Australian Accounting Standards basis.
DCB = Departmental Capital Budget.
1
Does not include annual finance lease costs. Includes purchase from current and previous years
Departmental Capital Budgets (DCBs).
2
Includes current and prior year Bill 1/3/5 appropriations (excluding amounts from the DCB) and s31 relevant
agency receipts.
145
APSC Budget Statements
Table 3.2.6: Statement of Asset Movements (2014-15)
Asset Category
Buildings
$'000
As at 1 July 2014
Gross book value
Accumulated depreciation/amortisation
and impairment
Opening net book balance
As at 30 June 2015
Gross book value
Accumulated depreciation/amortisation
and impairment
Closing net book balance
Computer
software and
intangibles
$'000
Total
$'000
3,404
3,264
3,689
10,357
(1,151)
2,253
(2,012)
1,252
(2,527)
1,162
(5,690)
4,667
CAPITAL ASSET ADDITIONS
Estimated expenditure on
new or replacement assets
By purchase - appropriation ordinary
annual services 1
Total additions
Other movements
Depreciation/amortisation expense
Disposals 2
Total other movements
Other property,
plant and
equipment
$'000
77
77
165
165
822
822
1,064
1,064
(406)
(406)
(424)
(424)
(566)
(566)
(1,396)
(1,396)
3,481
3,429
4,511
11,421
(1,557)
1,924
(2,436)
993
(3,093)
1,418
(7,086)
4,335
Prepared on Australian Accounting Standards basis.
‘Appropriation ordinary annual services’ refers to funding provided through Appropriation Bill (No.1) 2014-15
for depreciation / amortisation expenses, DCBs or other operational expenses.
1
2
Net proceeds may be returned to the OPA.
146
APSC Budget Statements
Table 3.2.7: Schedule of Budgeted Income and Expenses Administered on
Behalf of Government (for the period ended 30 June)
Estimated
actual
2013-14
$'000
EXPENSES ADMINISTERED ON
BEHALF OF GOVERNMENT
Employee benefits
Total expenses administered
on behalf of Government
Budget
estimate
2014-15
$'000
Forward
estimate
2015-16
$'000
Forward
estimate
2016-17
$'000
Forward
estimate
2017-18
$'000
60,806
61,963
63,141
64,404
65,692
60,806
61,963
63,141
64,404
65,692
Net Cost of (contribution by)
services
Surplus (Deficit)
60,806
(60,806)
61,963
(61,963)
63,141
(63,141)
64,404
(64,404)
65,692
(65,692)
Total comprehensive income (loss)
(60,806)
(61,963)
(63,141)
(64,404)
(65,692)
Prepared on Australian Accounting Standards basis.
147
APSC Budget Statements
Table 3.2.8: Schedule of Budgeted Assets and Liabilities Administered on Behalf
of Government (as at 30 June)
The APSC has no assets or liabilities administered on behalf of government.
148
APSC Budget Statements
Table 3.2.9: Schedule of Budgeted Administered Cash Flows
(for the period ended 30 June)
OPERATING ACTIVITIES
Cash used
Employees
Total cash used
Net cash from (used by)
operating activities
Net increase (decrease) in
cash held
Cash and cash equivalents at
beginning of reporting period
Cash from Official Public Account for:
- Appropriations
Cash and cash equivalents at end
of reporting period
Estimated
actual
2013-14
$'000
Budget
estimate
2014-15
$'000
Forward
estimate
2015-16
$'000
Forward
estimate
2016-17
$'000
Forward
estimate
2017-18
$'000
60,806
60,806
61,963
61,963
63,141
63,141
64,404
64,404
65,692
65,692
(60,806)
(61,963)
(63,141)
(64,404)
(65,692)
(60,806)
(61,963)
(63,141)
(64,404)
(65,692)
-
-
-
-
-
60,806
60,806
61,963
61,963
63,141
63,141
64,404
64,404
65,692
65,692
-
-
-
-
-
149
Indigenous Business Australia
Agency Resources and Planned
Performance
INDIGENOUS BUSINESS AUSTRALIA
Section 1: Agency Overview and Resources ......................................................... 155
1.1 Strategic Direction ............................................................................................... 155
1.2 Agency Resource Statement ............................................................................... 156
1.3 Budget Measures ................................................................................................ 157
Section 2: Outcomes and Planned Performance ................................................... 158
2.1 Outcomes and Performance Information ............................................................ 158
Section 3: Explanatory Tables and Budgeted Financial Statements................... 167
3.1 Explanatory Tables .............................................................................................. 167
3.2 Budgeted Financial Statements .......................................................................... 168
153
INDIGENOUS BUSINESS AUSTRALIA
Section 1: Agency Overview and Resources
The planned outcome of Indigenous Business Australia (IBA) is stimulating the
economic advancement of Aboriginal and Torres Strait Islander peoples.
1.1
STRATEGIC DIRECTION STATEMENT
IBA's vision is for a nation in which the First Australians are economically
independent and an integral part of the economy. Under its legislation, the
Aboriginal and Torres Strait Islander Act 2005, IBA's purpose is to:

assist and enhance Aboriginal and Torres Strait Islander self-management and
economic self-sufficiency

advance the commercial and economic interest of Aboriginal and Torres Strait
Islanders by accumulating and using a substantial capital base for the benefit of
the Aboriginal and Torres Strait Islander peoples.
To achieve its purpose, IBA has established three key strategic objectives, under which
its specific strategies and performance indicators are grouped:

assist Indigenous Australians to achieve economic independence through direct
investment and participation in commercial and joint venture business
enterprises that will produce increased financial returns and employment,
training and supply chain opportunities

assist eligible Aboriginal and Torres Strait Islander peoples to start up, acquire,
grow or exit a successful business

facilitate Indigenous Australians into home ownership by providing affordable
housing loans to Indigenous Australians who would generally not qualify for
housing finance elsewhere. This includes addressing barriers such as lower
incomes and savings, credit impairment and limited experience with loan
repayments.
155
IBA Budget Statements
1.2
AGENCY RESOURCE STATEMENT
Table 1.1 shows the total resources from all sources. The table summarises how
resources will be applied by outcome and by administered and departmental
classification.
Table 1.1: IBA Resource Statement – Budget Estimates for 2014–15 as at Budget
May 2014
Estimate
of prior
year amounts
available in
2014-15
$'000
+
Total
estimate
Actual
available
appropriation
2014-15
$'000
2014-15
$'000
2013-14
$'000
Proposed
at Budget
=
REVENUE FROM GOVERNMENT
Ordinary Annual Services¹
Outcome 1
-
34,328
34,328
34,012
Total ordinary annual services
-
34,328
34,328
34,012
Other services²
Non-Operating
-
36,880
36,880
37,210
Total other services
-
36,880
36,880
37,210
Total Annual Appropriations
-
71,208
71,208
71,222
Total Funds from Government
-
71,208
71,208
71,222
55,231
23
87,233
16,074
1,052
1,245
55,231
23
87,233
16,074
1,052
1,245
53,616
25
81,277
13,276
1,824
2,673
Total
-
160,858
160,858
152,691
Total net resourcing for IBA
-
232,066
232,066
223,913
FUNDS FROM OTHER SOURCES
Interest
Dividends
Sale of goods and services
Rents
Net gain on sale of assets
Other
All figures are GST exclusive.
Note: IBA is not directly appropriated as it is a CAC Act body. Appropriations are made to FMA agency
PM&C, which are then paid to IBA and are considered 'departmental' for all purposes.
1
Appropriation Bill (No.1) 2014-15.
2
Appropriation Bill (No.2) 2014-15.
156
IBA Budget Statements
1.3
BUDGET MEASURES
Budget measures relating to IBA are detailed in Budget Paper No. 2 and are
summarised below.
Table 1.2 IBA 2014–15 Budget Measures
Measures Announced Since the 2013-14 MYEFO
Programme
Measures (if applicable)
Efficiency Dividend — a further
temporary increase of 0.25 per cent
Departmental expenses
Total
2013-14
$'000
2014-15
$'000
2015-16
$'000
2016-17
$'000
2017-18
$'000
-
(88)
(88)
(176)
(176)
(262)
(262)
(263)
(263)
-
(88)
(88)
(176)
(176)
(262)
(262)
(263)
(263)
1.2, 1.3
Total measures
Departmental expenses
Total
Prepared on a Government Finance Statistics (fiscal) basis.
157
IBA Budget Statements
Section 2: Outcomes and Planned Performance
2.1
OUTCOMES AND PERFORMANCE INFORMATION
Government outcomes are the intended results, impacts or consequences of actions by
the Government on the Australian community. Commonwealth programmes are the
primary vehicle by which government agencies achieve the intended results of their
outcome statements. Agencies are required to identify the programmes that contribute
to Government outcomes over the Budget and forward years.
IBA’s outcome is described below together with its related programmes, specifying the
performance indicators and targets used to assess and monitor the performance of
Indigenous Business Australia in achieving Government outcomes.
Outcome 1: Improved wealth acquisition to support the economic
independence of Aboriginal and Torres Strait Islander peoples through
commercial enterprise, asset acquisition, construction and access to
concessional home and business loans.
Outcome 1 Strategy
IBA utilises a holistic suite of commercially focused Indigenous economic
development programmes to enhance Indigenous economic self-sufficiency, working
closely with individuals, communities, the private sector and government. IBA
delivers flexible and concessional interest rate loan products and aftercare support to
improve Indigenous home ownership across Australia, including in discrete remote
Indigenous communities. IBA also provides concessional interest rate business loans
and business support to increase Indigenous ownership of small to medium sized
enterprises, and their sustainability and growth. For larger investment projects, IBA
brings together private sector partners with Indigenous individuals and groups, coinvesting in joint venture projects that provide both commercial and broader economic
and social returns and a direct transfer of business skills and acumen to Indigenous
partners.
158
IBA Budget Statements
Outcome Expense Statement
Table 2.1 provides an overview of the total expenses for Outcome 1, by programme.
Table 2.1: Budgeted Expenses for Outcome 1
Outcome 1: Improved wealth acquisition to support the
economic independence of Aboriginal and Torres Strait
Islander peoples through commercial enterprise, asset
acquisition, construction and access to concessional home
and business loans.
Programme 1.1: Equities and Investments
Revenue from Government
Ordinary annual services (Appropriation Bill No. 1)
Revenues from other independent sources
Total for programme 1.1
Programme 1.2: Indigenous Home Ownership
Revenue from Government
Ordinary annual services (Appropriation Bill No. 1)
Revenues from other independent sources
Expenses not requiring Appropriation in the Budget year
Total for programme 1.2
Programme 1.3: Business Development and Assistance
Revenue from Government
Ordinary annual services (Appropriation Bill No. 1)
Revenues from other independent sources
Expenses not requiring Appropriation in the Budget year
Total for programme 1.3
Outcome 1 totals by resource type:
Revenue from Government
Ordinary annual services (Appropriation Bill No. 1)
Revenues from other independent sources
Expenses not requiring Appropriation in the Budget year
Total expenses for Outcome 1
Average Staffing Level (number)
159
2013-14
Estimated
actual
expenses
$'000
2014-15
Estimated
expenses
100,645
111,676
100,645
111,676
$'000
10,790
44,196
(3,939)
10,890
45,184
(6,880)
51,047
49,194
23,222
3,633
5,509
23,438
3,907
5,055
32,364
32,400
34,012
34,328
148,474
1,571
160,767
(1,825)
184,057
193,270
2013-14
232
2014-15
236
IBA Budget Statements
Contributions to Outcome 1
Programme 1.1: Equity and Investments
Programme 1.1 Objective
IBA Investments’ objective is to assist and develop Indigenous Australians to
achieve economic independence through direct investment and participation in
commercial enterprises.
Programme 1.1 Expenses
Programme 1.1 will not receive Government funding, but will cover its operating
expenses through prudent management of the investment portfolio.
2013-14
2014-15
2015-16
2016-17
Estimated
Budget
Forward
Forward
Forward
estimate
estimate
estimate
actual
$'000
$'000
$'000
$'000
2017-18
$'000
Total departmental expenses
100,645
111,676
112,827
112,431
112,100
Total programme expenses
100,645
111,676
112,827
112,431
112,100
Programme 1.1 Deliverables
A substantial portfolio of sustainable investments, diversified by industry and
geography, which collectively provide Aboriginal and Torres Strait Islander peoples
with meaningful opportunities for:

asset ownership

wealth accumulation

stable and enduring income streams

capacity development

employment and training

supply chain opportunities.
160
IBA Budget Statements
Programme 1.1 Key Performance Indicators

Portfolio Return to IBA: annual and rolling 5 years

number of Indigenous investors supported during the Budget year

Portfolio Return to Indigenous co-investors: annual return

proportion of Indigenous jobs supported by the investment portfolio.
2013-14
Estimated
actual
2014-15
2015-16
Budget
Forward
2016-17
Forward
2017-18
Forward
estimate
estimate
estimate
Portfolio Return to IBA (budget year)1
Cash
+3%2
Cash
+3%
Cash
+3%
Cash
+3%
Cash
+3%
Portfolio Return to IBA (rolling 5 years)3
Cash
+3%
Cash
+3%
Cash
+3%
Cash
+3%
Cash
+3%
20
25
30
30
35
Portfolio Return to Indigenous co-investors 5
Cash
+3%2
Cash
+3%
Cash
+3%
Cash
+3%
Cash
+3%
Proportion of Indigenous jobs supported by
investment portfolio6
20%
20%
22.5%
25%
27.5%
Number of Indigenous co-investors
supported4
1
This measure indicates Portfolio Return to IBA during the year. It is calculated as the after-tax return
generated by IBA’s share of the investment portfolio in the Budget year, expressed as a percentage of
the average value of IBA’s share of the investment portfolio during the Budget year (“Portfolio Value”).
It excludes IBA’s financial investments and the interest earned thereon.
2
Benchmark return represents the cash rate plus a margin of 3 per cent. Cash rate is calculated using
average BBSW over the measurement period.
3
This measure indicates Portfolio Return to IBA over a rolling 5 year period (inclusive of the designated
year). It is calculated as the average of the after-tax returns generated by the investment portfolio
(expressed as a percentage of Portfolio Value) in each of the past 5 Budget years. It excludes IBA’s
financial investments and the interest earned thereon.
4
Number of Indigenous investors supported includes current Indigenous co-investors, Indigenous
co-investors to whom investments were sold during the Budget year and Indigenous investors supported
through advisory services via IBA’s Acquisitions Unit or Traditional Owner & Native Title Unit.
This measure indicates Portfolio Return to IBA’s Indigenous co-investors during the year. It is calculated
as Indigenous co-investors share of the after-tax return generated by the investment portfolio in the
Budget year, expressed as a percentage of the average value of Indigenous co-investors share of the
investment portfolio during the Budget year.
5
6
Total number of Indigenous people employed by employing investment portfolio entities, expressed as a
percentage of total workforce, measured quarterly and averaged across those quarters to account for
fluctuations in staffing levels intra-year.
161
IBA Budget Statements
Programme 1.2: Indigenous Home Ownership
Programme 1.2 Objective
Programme 1.2 aims to facilitate Indigenous Australians into home ownership by
addressing barriers such as lower incomes and savings, credit impairment and
limited experience with loan repayments. The Programme is focused on first home
buyers who have difficulty obtaining home loan finance from other financial
institutions. The programme also helps Indigenous people in remote Indigenous
communities overcome additional barriers where there is appropriate tenure for
home ownership, such as a lack of access to financial institutions and services,
higher construction costs, the absence of established residential property markets
and newly created land tenure arrangements. The programme’s success is assessed
in terms of increasing the percentage of Indigenous Australians who are home
owners.
Programme 1.2 Expenses
Budgeted departmental expenses include the administrative costs for delivering the
programme, including activities involved in facilitated home ownership
opportunities in remote Indigenous communities, as well as legal, administrative
and operating costs associated with undertaking lending and managing IBA’s loan
portfolios.
2013-14
2014-15
2015-16
2016-17
Estimated
Budget
Forward
Forward
Forward
estimate
estimate
estimate
actual
$'000
$'000
$'000
$'000
2017-18
$'000
Total departmental expenses
51,047
49,194
51,070
50,134
52,257
Total programme expenses
51,047
49,194
51,070
50,134
52,257
162
IBA Budget Statements
Programme 1.2 Deliverables
The key programme deliverable is the provision of home loans and related
assistance to Indigenous people and the effective management of the loan portfolio.
2013-14
Estimated
actual
2014-15
2015-16
Budget
Forward
2016-17
Forward
2017-18
Forward
estimate
estimate
estimate
560
4,325
560
4505
550
4,675
550
4,825
550
4,975
Number of new home loans
Aggregate loans in the portfolio
Programme 1.2 Key Performance Indicators
The key performance indicators measure the success of the programme in targeting
lending and assistance to customers as appropriate to their circumstances and need
and the facilitation of home ownership in remote Indigenous communities.
2013-14
Estimated
actual
2014-15
2015-16
Budget
Forward
2016-17
Forward
2017-18
Forward
estimate
estimate
estimate
Number of loans to applicants who have
an adjusted combined gross annual
income of not more than 125% of IBA's
income amount1
80% of
loans
80% of
loans
80% of
loans
80% of
loans
80% of
loans
Number of loans to applicants who are first
home buyers
90% of
loans
90% of
loans
90% of
loans
90% of
loans
90% of
loans
Number of remote Indigenous communities
in which IBA is actively facilitating home
ownership opportunities
10
12
12
12
12
1
The IBA Income Amount is equivalent to the National Average Weekly Male Earnings (NAWME) statistic
published by the ABS. The IBA Income amount is adjusted each July after reference to the most recently
published NAWME figure.
163
IBA Budget Statements
Programme 1.3: Business Development and Assistance
Programme 1.3 Objective
The Business Development and Assistance Programme objective is to assist eligible
Aboriginal and Torres Strait Islander peoples to start up, acquire, grow or exit a
successful business.
This objective is achieved primarily through the provision of concessional business
loans and support services. IBA also supports economic and business development
initiatives that seek to promote business ownership or development opportunities.
Programme 1.3 Expenses
Programme expenses are expected to remain relatively constant for the foreseeable
future.
2013-14
2014-15
2015-16
2016-17
Estimated
Budget
Forward
Forward
Forward
estimate
estimate
estimate
actual
$'000
$'000
$'000
$'000
2017-18
$'000
Total departmental expenses
32,365
32,400
32,146
34,265
34,638
Total programme expenses
32,365
32,400
32,146
34,265
34,638
164
IBA Budget Statements
Programme 1.3 Deliverables
The success of this outcome is indicated through the deliverables below.
IBA works closely with business owners to transition into the broader economy and
financial sector. The net impact of this strategy will see the number of loans in the
portfolio remain stable in future years.
Number of new IBA loans approved
Number of new loans facilitated with other
lenders in the broader economy including
split loans
Number of businesses or prospective
businesses provided with business advice
or support
Number of participants that attended Into
BusinessTM workshops1
Number of businesses or prospective
businesses that participated in an Into
2013-14
Estimated
actual
2014-15
Budget
2015-16
Forward
estimate
2016-17
Forward
estimate
2017-18
Forward
estimate
75
80
85
90
90
-
10
15
20
25
485
490
495
500
500
750
750
-
-
-
-
0
600
650
700
-
0
200
220
240
-
0
50
60
70
Number of Strategic Economic
Development Initiatives
15
15
15
15
15
Number of Business Development
Initiatives
25
30
30
35
35
Number of jobs created/supported by IBA
business loan clients
-
500
500
500
500
Number of Indigenous people in jobs
created/supported by IBA business loan
clients
-
300
325
335
350
300
300
300
300
BusinessTM workshop2
Number of businesses or prospective
businesses that completed the Into
BusinessTM Workshop Series3
Number of businesses or prospective
businesses that participated in Into
BusinessTM workshops through external
partnerships4
Number of active loans in the portfolio
300
1
Deliverable changing in 2013–14 as a more effective measure has been identified.
2
A new measure commencing in 2014–15 which provides a more accurate measure of business
participation in Into BusinessTM Workshops.
3
A new measure commencing in 2014–15 which provides an accurate measure of Into BusinessTM
Workshop completions.
4
A new measure commencing in 2014–15. Includes Into BusinessTM workshops delivered by IBA through
partnerships with other Australian Government, State Government and non-government organisations.
165
IBA Budget Statements
Programme 1.3 Key Performance Indicators
IBA has an integrated suite of products including: Into Business™ workshops,
business loans, business support, business development initiatives and strategic
economic development initiatives. Business loans provide clients with affordable
capital. Business support assists clients to assess the viability of their proposed
business, to plan and market for a successful business venture, to access business
management training and mentoring, and to eventually exit from the business. Our
development initiatives support projects that overcome barriers to Indigenous
people owning and operating successful businesses; facilitate the development of
business-related skills, knowledge, information and assistance; and research
economic opportunities.
2013-14
Estimated
actual
2014-15
2015-16
Budget
Forward
2016-17
Forward
2017-18
Forward
estimate
estimate
estimate
70%
75%
70%
70%
70%
Percentage of Loan Customers still in
business 1 year after commencing
business
85%
85%
85%
85%
85%
Percentage of Loan Customers still in
business 2 years after commencing
business
75%
75%
75%
75%
75%
Percentage of Loan Customers still in
business 3 years after commencing
business
65%
65%
65%
65%
65%
Percentage of Loan Accounts that were
successfully finalised through loan
repayment1
1
Calculated from the number of loan payouts made by clients during the year divided by all loan closures
(including payouts, write offs, and debts waived).
166
IBA Budget Statements
Section 3: Explanatory Tables and Budgeted Financial
Statements
Section 3 presents explanatory tables and budgeted financial statements that provide
a comprehensive snapshot of agency finances for the 2013–14 Budget year. It explains
how budget plans are incorporated into the financial statements and provides further
details of the reconciliation between appropriations and programme expenses,
movements in administered funds, special accounts and Government Indigenous
expenditure.
3.1
EXPLANATORY TABLES
3.1.1 Movement of Administered Funds Between Years
Indigenous Business Australia has no administered funds.
3.1.2 Special Accounts
Indigenous Business Australia has no special accounts.
3.1.3 Australian Government Indigenous Expenditure
Table 3.1.3: Australian Government Indigenous Expenditure (AGIE)
Appropriations
Bill
Bill
Total
No. 1
No. 2
approp
$'000
$'000
$'000
Other
Total Programme
$'000
$'000
Indigenous Business Australia
Outcome 1
Departmental 2014-15
Departmental 2013-14
Total Outcome 2014-15
Total Outcome 2013-14
34,328
34,012
34,328
34,012
36,880
37,210
36,880
37,210
71,208
71,222
71,208
71,222
160,858
152,691
160,858
152,691
232,066
223,913
232,066
223,913
Total AGIE 2014-15
Total AGIE 2013-14
34,328
34,012
36,880
37,210
71,208
71,222
160,858
152,691
232,066
223,913
167
All
All
IBA Budget Statements
3.2
Budgeted Financial Statements
3.2.1 Differences in Agency Resourcing and Financial Statements
There are no differences between IBA’s Agency Resourcing and Financial Statements.
3.2.2 Analysis of Budgeted Financial Statements
An analysis of the primary causes of movements in the budgeted financial statements
is provided below. The 2013–14 estimated actual results are used as the comparative
year in the analysis.
IBA budgets are prepared on a consolidated basis for the agency and its 42
subsidiaries. On consolidation, assets, liabilities, income and expenditure of all
subsidiaries flow through to individual line items in the consolidated budget.
Budgeted Agency Income Statement
IBA is budgeting for an operating surplus of $4.0 million in 2013–14 and an estimated
surplus of $4.5 million in 2014–15.
Budgeted Agency Balance Sheet
Budgeted net assets as at 30 June 2015 of $1,167 million represents an increase of
$41 million over the net assets of $1,126 million as at 30 June 2014. The main drivers of
the increase ($41 million) are:

continuing capital injections from the Government of $36.9 million

the estimated operating surplus of $4.5 million.
Statement of Cash Flows
Net lending activity is expected to increase from $74.1 million in 2013–14 to
$83.8 million in 2014–15. Net lending is the access of new loan disbursements over
loan repayments and discharges.
Statement of Changes in Equity
Total equity is expected to increase by $41 million to $1,167 million as at 30 June 2015,
with the additional equity injection of $36.9 million from the Commonwealth and the
Budget year surplus of $4.5 million.
168
IBA Budget Statements
3.2.3 Budgeted Financial Statements Tables
Table 3.2.1: Comprehensive Income Statement (Showing Net Cost of Services)
(for the period ended 30 June)
Estimated
actual
2013-14
$'000
Budget
estimate
2014-15
$'000
Forward
estimate
2015-16
$'000
Forward
estimate
2016-17
$'000
Forward
estimate
2017-18
$'000
EXPENSES
Employee benefits
Supplier expenses
Grants
Depreciation and amortisation
Finance costs
Write-down and impairment of assets
Concessional Loan Discount
Losses from asset sales
Other expenses
Total expenses
52,033
75,524
12,269
6,046
652
4,200
31,789
13
1,236
183,762
52,893
84,279
12,000
7,964
437
3,533
30,532
11
1,105
192,754
53,365
85,279
12,000
7,546
437
2,860
32,475
74
1,200
195,236
53,963
84,947
12,000
7,353
437
3,910
32,363
75
975
196,023
55,143
84,816
12,000
7,173
437
3,960
33,613
71
975
198,188
LESS:
OWN-SOURCE INCOME
Own-source revenue
Sale of goods and rendering of services
Interest
Dividends
Rental income
Other
Total own-source revenue
81,277
53,616
25
13,276
2,154
150,348
87,233
55,231
23
16,074
755
159,316
87,874
56,835
37
16,352
745
161,843
87,883
57,860
37
16,385
745
162,910
87,883
61,335
37
16,419
745
166,419
Gains
Sale of assets
Other
Total gains
Total own-source income
1,824
519
2,343
152,691
1,052
490
1,542
160,858
1,020
490
1,510
163,353
1,020
490
1,510
164,420
20
490
510
166,929
31,071
34,012
31,896
34,328
31,883
34,332
31,603
33,978
31,259
34,144
1,321
2,584
2,224
2,224
2,224
4,262
5,016
4,673
4,599
5,109
Net cost of services
Revenue from Government
Share of operating surplus of
associates using the equity method
Surplus (Deficit) before income tax
on continuing operations
Income tax expense
Surplus (Deficit) after income tax
on continuing operations
295
516
807
807
807
3,967
4,500
3,866
3,792
4,302
Surplus attributable to the
non-controlling interests
2,500
2,500
2,500
2,500
2,500
Surplus (Deficit) attributable to the
Australian Government
1,467
2,000
1,366
1,292
1,802
Prepared on Australian Accounting Standards basis.
169
IBA Budget Statements
Table 3.2.2: Budgeted Departmental Balance Sheet (as at 30 June)
Estimated
actual
2013-14
$'000
Budget
estimate
2014-15
$'000
Forward
estimate
2015-16
$'000
Forward
estimate
2016-17
$'000
Forward
estimate
2017-18
$'000
110,169
638,449
109,032
680,263
107,704
720,263
107,890
760,263
108,742
800,263
41,774
138,817
929,209
42,774
127,510
959,579
44,774
113,500
986,241
44,788
108,500
1,021,441
44,788
103,500
1,057,293
53,496
33,156
138,730
7,427
299
2,097
1,881
237,086
1,166,295
52,856
30,411
153,050
7,557
299
2,097
1,898
248,168
1,207,747
52,871
30,422
168,052
7,283
299
2,097
1,898
262,922
1,249,163
52,886
30,434
173,052
7,398
299
2,097
1,898
268,064
1,289,505
52,886
30,434
178,052
7,398
299
2,097
1,898
273,064
1,330,357
LIABILITIES
Payables
Suppliers
Other payables
Total payables
10,390
6,599
16,989
10,219
6,840
17,059
10,419
6,840
17,259
10,419
6,840
17,259
10,419
6,840
17,259
Interest bearing liabilities
Loans
Total interest bearing liabilities
11,328
11,328
11,328
11,328
11,328
11,328
11,328
11,328
11,328
11,328
Provisions
Employee provisions
Other provisions
Total provisions
Total liabilities
6,743
5,267
12,010
40,327
6,931
5,268
12,199
40,586
7,731
5,268
12,999
41,586
7,731
5,268
12,999
41,586
7,731
5,268
12,999
41,586
1,125,968
1,167,161
1,207,577
1,247,919
1,288,771
ASSETS
Financial assets
Cash and cash equivalents
Trade and other receivables
Investments accounted for under
the equity method
Other investments
Total financial assets
Non-financial assets
Land and buildings
Property, plant and equipment
Investment property
Intangibles
Tax assets
Inventories
Other non financial assets
Total non-financial assets
Total assets
Net assets
continued on next page.
170
IBA Budget Statements
Table 3.2.2: Budgeted Departmental Balance Sheet (as at 30 June) (continued)
Estimated
actual
2013-14
$'000
Budget
estimate
2014-15
$'000
Forward
estimate
2015-16
$'000
Forward
estimate
2016-17
$'000
Forward
estimate
2017-18
$'000
EQUITY*
Parent entity interest
Contributed equity
Reserves
Retained surplus (accumulated deficit)
Total parent entity interest
872,383
9,966
206,708
1,089,057
909,263
9,779
208,708
1,127,750
945,813
9,779
210,074
1,165,666
982,363
9,779
211,366
1,203,508
1,018,913
9,779
213,168
1,241,860
Attributed to Non-Controlling Interest
Contributed equity
Reserves
Retained surplus (accumulated deficit)
Total non-controlling interest
Total Equity
18,080
8,489
10,342
36,911
1,125,968
18,080
8,489
12,842
39,411
1,167,161
18,080
8,489
15,342
41,911
1,207,577
18,080
8,489
17,842
44,411
1,247,919
18,080
8,489
20,342
46,911
1,288,771
Prepared on Australian Accounting Standards basis.
*'Equity' is the residual interest in assets after deduction of liabilities.
171
IBA Budget Statements
Table 3.2.3: Departmental Statement of Changes in Equity – Summary of
Movement (Budget Year 2014–15)
Retained
earnings
Opening balance as at 1 July 2014
Balance carried forward from previous period
Adjusted opening balance
Comprehensive income
Gain/loss on revaluation of property
Sub-total income and expense
Contributed
equity/
capital
$'000
Total
equity
$'000
Asset
revaluation
reserve
$'000
217,050
217,050
18,455
18,455
890,463
890,463
1,125,968
1,125,968
-
Surplus (deficit) for the period
4,500
Total comprehensive income recognised directly
in equity
of which:
Attributable to the Australian Government
Attributable to non-controlling interest
4,500
2,000
2,500
Transactions with owners
Contributions by owners
Equity injection - Appropriation
Sub-total transactions with owners
-
Estimated closing balance as at 30 June 2015
Less: non-controlling interests
Closing balance attributable to the
Australian Government
Prepared on Australian Accounting Standards basis.
172
(187)
(187)
(187)
-
-
$'000
-
(187)
(187)
-
4,500
-
4,313
-
2,000
2,500
36,880
36,880
36,880
36,880
221,550
12,842
18,268
8,489
927,343
18,080
1,167,161
39,411
208,708
9,779
909,263
1,127,750
IBA Budget Statements
Table 3.2.4: Budgeted Departmental Statement of Cash Flows (for the period
ended 30 June)
Estimated
actual
2013-14
$'000
Budget Forward
estimate estimate
2014-15 2015-16
$'000
$'000
Forward
estimate
2016-17
$'000
Forward
estimate
2017-18
$'000
OPERATING ACTIVITIES
Cash received
Appropriations
Sale of goods and rendering of services
Interest
Dividends
Net GST received
Other
Total cash received
34,012
79,554
53,615
25
17,773
184,979
34,328
85,419
55,231
23
18,371
193,372
34,332
87,873
56,835
37
18,607
197,684
33,978
87,883
57,860
37
18,640
198,398
34,144
87,883
61,335
37
17,674
201,073
Cash used
Employees
Suppliers
Grants
Taxes paid
Other
Total cash used
Net cash from (used by) operating activities
52,033
71,898
12,269
295
1,902
138,397
46,582
52,893
84,022
12,000
516
1,552
150,983
42,389
53,364
84,279
12,000
807
1,711
152,161
45,523
53,963
84,947
12,000
807
1,487
153,204
45,194
55,143
84,816
12,000
807
1,483
154,249
46,824
INVESTING ACTIVITIES
Cash received
Proceeds from sales of property,
plant and equipment
Investments
Other- repayment of loans
Total cash received
4,174
24,000
85,122
113,296
13,000
90,055
103,055
15,000
90,977
105,977
7,500
93,884
101,384
7,500
94,753
102,253
12,495
290
170,157
182,942
(81,558)
12,173
276
172,326
184,775
(82,522)
Cash used
Purchase of property, plant
and equipment
Purchase of non-financial assets
Investments
Other - loans / advances
Total cash used
Net cash from (used by) investing activities
25,305
23,621
168,891
217,817
(104,521)
19,029
22,300
17
296
766
164,119 166,312
183,461 189,378
(80,406) (83,401)
continued on next page.
173
IBA Budget Statements
Table 3.2.4: Budgeted Departmental Statement of Cash Flows (for the period
ended 30 June) (continued)
Budget
estimate
2014-15
$'000
Forward
estimate
2015-16
$'000
Forward
estimate
2016-17
$'000
Forward
estimate
2017-18
$'000
37,210
3,565
40,775
36,880
36,880
36,550
36,550
36,550
36,550
36,550
36,550
188
188
-
-
-
-
40,587
36,880
36,550
36,550
36,550
(17,352)
(1,137)
(1,328)
186
852
Estimated
actual
2013-14
$'000
FINANCING ACTIVITIES
Cash received
Contributed equity
Other
Total cash received
Cash used
Repayments of borrowings
Total cash used
Net cash from (used by)
financing activities
Net increase (decrease)
in cash held
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the
end of the reporting period
127,521
110,169
109,032
107,704
107,890
110,169
109,032
107,704
107,890
108,742
Prepared on Australian Accounting Standards basis.
174
IBA Budget Statements
Table 3.2.5: Departmental Capital Budget Statement
Estimated
actual
2013-14
$'000
Budget
estimate
2014-15
$'000
Forward
estimate
2015-16
$'000
Forward
estimate
2016-17
$'000
Forward
estimate
2017-18
$'000
NEW CAPITAL APPROPRIATIONS
Equity injections - Bill 2
Total new capital appropriations
37,210
37,210
36,880
36,880
36,550
36,550
36,550
36,550
36,550
36,550
Provided for:
Loan expenditure
Total Items
37,210
37,210
36,880
36,880
36,550
36,550
36,550
36,550
36,550
36,550
PURCHASE OF NON-FINANCIAL
ASSETS
Funded internally from
Departmental resources
Total
25,305
25,305
19,029
19,029
22,300
22,300
12,495
12,495
12,173
12,173
RECONCILIATION OF CASH
USED TO ACQUIRE ASSETS
TO ASSET MOVEMENT TABLE
Total purchases
Total cash used to acquire assets
25,305
25,305
19,029
19,029
22,300
22,300
12,495
12,495
12,173
12,173
Prepared on Australian Accounting Standards basis.
175
IBA Budget Statements
Table 3.2.6: Statement of Asset Movements (2014–15)
Asset Category
Buildings
Other property, Investment
plant and
property
equipment
$'000
$'000
$'000
As at 1 July 2014
Gross book value
Accumulated depreciation/amortisation
and impairment
Opening net book balance
CAPITAL ASSET ADDITIONS
Estimated expenditure on
new or replacement assets
By purchase - other
Total additions
Other movements
Assets held for sale or in a disposal
group held for sale
Depreciation/amortisation expense
As at 30 June 2015
Gross book value
Accumulated depreciation/amortisation
and impairment
Closing net book balance
Computer
software and
intangibles
$'000
Total
$'000
9,247
268,873
67,134
53,762
138,730
(13,638)
53,496
(20,606)
33,156
138,730
(1,820)
7,427
(36,064)
232,809
1,798
1,798
2,251
2,251
14,320
14,320
660
660
19,029
19,029
(2,438)
(4,996)
(530)
(7,964)
68,932
56,013
153,050
9,907
287,902
(16,076)
52,856
(25,602)
30,411
153,050
(2,350)
7,557
(44,028)
243,874
Prepared on Australian Accounting Standards basis.
176
-
-
-
IBA Budget Statements
3.2.3 Notes to the Financial Statements
The budgeted financial statements have been prepared in accordance with the
requirements of the Finance Minister’s Orders issued by the Minister for Finance.
The statements have been prepared:

on an accrual accounting basis

in compliance with Australian Accounting Standards and Australian Equivalents
to International Financial Reporting Standards (AEIFRS) and other authoritative
pronouncements of the Australian Accounting Standards Boards and the
Consensus Views of the Urgent Issues Group.
Revenue from Government
Represents appropriation from Government to Indigenous Business Australia for the
delivery of IBA‘s three programmes in pursuit of its single outcome. Increases in the
ordinary annual appropriations are a result of new measures and variations explained
in Section 2.
Expenses – Depreciation and Amortisation
Property, plant and equipment assets are written-off to their estimated residual values
over their estimated useful lives using, in all cases, the straight-line method of
depreciation.
Depreciation/amortisation rates (useful lives) and methods are reviewed at each
balance date and necessary adjustments are recognised in the current, or current and
future reporting periods, as appropriate.
Concessional Loan Discount
IBA continues to designate its loan portfolio at fair value through profit and loss per
paragraph 11A of AASB 139 which provides for contracts with embedded derivatives,
such as prepayment options, to be designated at fair value through profit and loss.
The variation in the loan portfolio under fair value basis is written directly to the
Income Statement.
177
IBA Budget Statements
Financial Assets – Receivables
This includes loans and advances made by IBA to clients in the delivery of its outputs,
in addition to amounts owing to IBA for delivery of goods and services, and
dividends owed to IBA from subsidiaries, associates and investments. Loans
receivable are carried at fair value under AASB 139.
Assets – Non-Financial
Except for any revalued assets, reported value of plant and equipment represents the
purchase price paid less depreciation incurred.
Land and building held for investment are carried at fair value.
178
INDIGENOUS LAND CORPORATION
Agency Resources and Planned
Performance
INDIGENOUS LAND CORPORATION
Section 1: Agency Overview and Resources ......................................................... 183
1.1 Strategic Direction Statement .............................................................................. 183
1.2 Agency Resource Statement ............................................................................... 184
1.3 Budget Measures ................................................................................................ 185
Section 2: Outcomes and Planned Performance ................................................... 186
2.1 Outcomes and Performance Information ............................................................ 186
Section 3: Explanatory Tables and Budgeted Financial Statements................... 192
3.1 Explanatory Tables .............................................................................................. 192
3.2 Budgeted Financial Statements .......................................................................... 193
181
INDIGENOUS LAND CORPORATION
Section 1: Agency Overview and Resources
1.1
STRATEGIC DIRECTION STATEMENT
The Indigenous Land Corporation (ILC) is an independent Australian Government
statutory authority established to provide economic, environmental, social and
cultural benefits for Aboriginal people and Torres Strait Islanders by assisting with
acquisition and management of land. The ILC was established on 1 June 1995, and is
governed by the Aboriginal and Torres Strait Islander Act 2005 (ATSI Act).
The ATSI Act defines that the ILC has two functions: land acquisition and land
management. The ILC’s functions are to be exercised ‘in addition to’, not ‘instead of’
the functions conferred on other agencies (Section 191F(3)).
The ILC has two priorities for the achievement of Indigenous benefits through
acquiring and managing land:

access to and protection of cultural and environmental values

socio-economic development.
The ILC’s primary source of income is an annual minimum payment of $45 million
indexed from the Aboriginal and Torres Strait Islander Land Account (ATSILA)
pursuant to Section 193(2) of the ATSI Act. The ATSILA is administered by the
Department of the Prime Minister and Cabinet (PM&C).
The Board is the ILC’s primary decision-making body and sets out the ILC’s strategic
direction, policies and strategies in the National Indigenous Land Strategy 2013–2017.
The Board oversees governance of the ILC’s administration, considers land acquisition
and land management proposals, and monitors performance.
The ILC provides assistance with land acquisition and land management in
collaboration with Indigenous organisations and landholders, and initiating projects to
respond to opportunities to deliver significant Indigenous benefits. Key strategic
priorities for the ILC will continue to support cultural, social and environmental
outcomes as well as the achievement of training and employment outcomes and
collaboration with other government agencies, industry, peak Indigenous
organisations and the non-government sector. These collaborations bring additional
expertise, funding and resources to achieve a more significant impact.
The ILC is committed to monitoring and evaluating its Land Acquisition and Land
Management Programme to ensure benefits are being achieved and progress is made
towards achieving its outcome. The ILC has evaluation and benefits frameworks that
guide it in monitoring its performance and informing its strategic planning.
183
ILC Budget Statements
1.2
AGENCY RESOURCE STATEMENT
Table 1.1 shows the total resources from all sources. The table summarises how
resources will be applied by outcome and by administered and departmental
classification.
Table 1.1: ILC Resource Statement – Budget Estimates for 2014–15 as at Budget
May 2014
Estimate
of prior
year amounts
available in
2014-15
$'000
Opening balance/Reserves at bank
+
Proposed
at Budget
2014-15
$'000
26,100
-
REVENUE FROM GOVERNMENT
Ordinary annual services1
Outcome 1
-
Total ordinary annual services
26,100
Special Accounts (Prime Minister and Cabinet)
Aboriginal and Torres Strait Islander
Land Account2
Total Special Account
=
Total
estimate
Actual
available
appropriation
2014-15
$'000
2013-14
$'000
26,100
-
9,527
9,527
9,664
9,527
35,627
9,664
-
49,865
49,865-
52,463
Total funds from Government
-
49,865
49,865
52,463
FUNDS FROM OTHER SOURCES
Interest
Other
Total
-
18,500
4,700
23,200
18,500
4,700
23,200
18,133
12,090
30,223
26,100
82,592
108,692
92,350
Total net resourcing for agency
All figures are GST exclusive.
CRF - Consolidated Revenue Fund.
ILC is not directly appropriated as it is a CAC Act body. Appropriations are made to PM&C which are then
paid to ILC and are considered 'departmental' for all purposes.
1
Appropriation Bill (No.1) 2014-15.
2
A CAC Act body may receive payment from a special account held by an FMA Act agency. The CAC Act
body does not hold the special account itself and therefore does not have a balance carried forward from
earlier years.
Third Party Payments From and on Behalf of Other Agencies
Receipts received from other agencies for the provision of services
All figures are GST exclusive.
184
2014-15
$'000
2013-14
$'000
9,527
9,664
9,527
9,664
ILC Budget Statements
1.3
BUDGET MEASURES
ILC has no budget measures in the 2014–15 Budget.
185
ILC Budget Statements
Section 2: Outcomes and Planned Performance
2.1
OUTCOMES AND PERFORMANCE INFORMATION
Government outcomes are the intended results, impacts or consequences of actions by
government on the Australian community. Commonwealth programmes are the
primary vehicle by which government agencies achieve the intended results of their
outcome statements. Agencies are required to identify the programmes which
contribute to government outcomes over the budget and forward years.
ILC’s outcome is described below together with its related programmes, specifying the
performance indicators and targets used to assess and monitor the performance of the
ILC in achieving government outcomes.
Outcome 1: Enhanced socio-economic development, maintenance of cultural
identity and protection of the environment by Indigenous Australians through
land acquisition and management.
Outcome 1 Strategy
The statutory purpose of the ILC is to assist Indigenous people to acquire and manage
land to achieve economic, environmental, social and cultural benefits.
The National Indigenous Land Strategy 2013–2017 describes that the ILC will assist
with the acquisition and management of land-based projects that achieve the
following priorities.
Provide Access to and Protection and Maintenance of Land with Cultural and
Environmental Values
The ILC recognises the importance of land to Indigenous peoples’ cultural identity.
The ILC collaborates with Indigenous proponents and other partners to acquire and
manage land with cultural and environmental significance, and to protect and
maintain the cultural and environmental values of land.
Deliver Socio-Economic Outcomes for Indigenous People
The ILC assists projects that deliver social and economic outcomes for Indigenous
Australians. Priority is given to projects that provide sustainable employment and
training that leads to employment. The ILC believes that sustainable employment
creates benefits for Indigenous people, including increased standards of living, income
and improved health and wellbeing.
186
ILC Budget Statements
In 2014–15, the ILC will collaborate with Indigenous proponents and other partners to
achieve these outcomes, including assisting Indigenous landholders to develop viable
businesses and sustainably manage their land. In addition, the ILC will continue to
operate employment and training projects on agricultural and tourism businesses to
host Indigenous trainees and transition them to employment.
Aligning with Government Priorities
In pursuing achievements against these priorities, the ILC seeks to build a secure and
sustainable land base now and for future generations. The Indigenous estate
comprises more than 20% of Australia’s land mass and the ILC plays a critical role in
assisting its management to achieve social, cultural, environmental and economic
benefits. The ILC acknowledges that Indigenous economic development is a key
policy priority for the Australian Government and for Aboriginal and Torres Strait
Islander peoples and will contribute to working collectively to achieve a greater
impact.
The ILC will continue to make important contributions to Indigenous economic
development through creation of Indigenous enterprises and the implementation of its
training-to-employment model in its agricultural and tourism businesses.
187
ILC Budget Statements
Outcome Expense Statement
Table 2.1 provides an overview of the total expenses for Outcome 1, by programme.
Table 2.1: Budgeted Expenses for Outcome 1
Outcome 1: Enhanced socio-economic development,
maintenance of cultural identity and protection of the
environment by Indigenous Australians through land
acquisition and management.
Programme 1.1: Assistance in the acquisition and
management of an Indigenous land base
Revenue from Government
Ordinary annual services (Appropriation Bill No. 1)
Payment from related entities
Special Accounts
Revenues from other independent sources
Total for Programme 1.1
Outcome 1 Totals by resource type
Revenue from Government
Ordinary annual services (Appropriation Bill No. 1)
Payment from related entities
Special Accounts
Revenues from other independent sources
2013-14
Estimated
actual
expenses
$'000
2014-15
Estimated
expenses
$'000
9,664
18,133
52,463
12,090
9,527
18,500
49,865
4,700
92,350
82,592
9,664
18,133
52,463
12,090
9,527
18,500
49,865
4,700
Total expenses for Outcome 1
92,350
82,592
Average Staffing Level (number)
2013-14
265
2014-15
265
188
ILC Budget Statements
Contributions to Outcome 1
Programme 1.1: Acquisition and Management of an Indigenous Land Base
Programme 1.1 Objective
To assist Indigenous people to acquire and manage land to achieve economic,
environmental, social and cultural benefits.
Programme Component Objectives
Cultural and Environmental Heritage Protection
 to provide land management assistance to Indigenous landholders to support
them in protecting and maintaining cultural and environmental heritage
 to acquire and grant land to Indigenous organisations for the purposes of
environmental heritage protection and maintenance of culture.
Socio-Economic Development
 to work with Indigenous land holders and other project partners to maximise the
productivity of existing Indigenous held land
 to invest with Indigenous organisations and other project partners in the
acquisition and grant of land to Indigenous organisations to achieve training,
employment and social outcomes
 to work with Indigenous land holders and other project partners to develop land
based enterprises that provide training and create employment, including in
agricultural and tourism industries, ecosystem and heritage management
 to operate agricultural and tourism businesses that train Indigenous people and
assist them to transition to secure jobs
 to collaborate with other agencies and industry partners to implement regional
projects that provide mentoring, support and advice to assist Indigenous
landholders to sustainably manage land
 to develop projects in collaboration with other organisations to assist Indigenous
landholders engage with emerging enterprise opportunities in offsetting
greenhouse gas emissions, developing biodiversity offsets and delivery of
environmental services.
189
ILC Budget Statements
Programme 1.1 Expenses
The ILC’s primary source of income is an annual payment of $45 million indexed
from the ATSILA pursuant to Section 193(2) of the ATSI Act.
2013-14
Estimated
actual
$'000
Special Account Expenses:
Aboriginal and Torres Strait Islander Land
Account
Annual departmental expenses:
Departmental item CDEP Job Packages
Departmental item Other
Total Programme expenses
2014-15
Budget
$'000
2015-16
Forward
estimate
$'000
2016-17
Forward
estimate
$'000
2017-18
Forward
estimate
$'000
52,463
49,865
51,011
52,338
53,646
9,664
28,455
90,582
9,527
16,900
76,292
9,389
3,300
63,700
9,156
3,800
65,294
9,065
3,300
66,011
Programme 1.1 Deliverables
The ILC assists Indigenous corporations to acquire land, and Indigenous
landholders to manage and use their land, to achieve benefits for Indigenous people.
The ILC seeks to achieve the following deliverables.
2013-14
Estimated
actual
2014-15
Budget
2015-16
Forward
estimate
2016-17
Forward
estimate
2017-18
Forward
estimate
6
31
3
3
3
Properties granted
10
10
10
82
6
Employment and training projects
implemented on ILC agricultural and
tourism businesses
11
11
11
11
11
Regional land management projects
implemented
15
15
15
15
15
Property-based, property planning land
management projects assisted
30
603
60
60
60
Properties acquired for socio-economic
development and cultural and
environmental heritage protection
Given more than 20% of Australia’s land mass is Indigenous held, there will be an increased strategic
focus on managing and developing the existing Indigenous estate.
1
2
The forecast is commensurate with the increase in focus on managing and developing existing held land.
3
The achieved and forecast targets are commensurate with the increase in focus on managing and
developing existing held land.
190
ILC Budget Statements
Programme 1.1 Key Performance Indicators
Participation in training and employment are the key indicators used for measuring
progress in achieving socio-economic development. To recognise its relative
contribution to the benefits delivered, the ILC counts those people it directly employs
and hosts on its businesses separately from those jobs it has enabled in collaboration
with Indigenous organisations and other project partners, through acquisition of land
or provision of land management assistance.
The ILC works with Indigenous organisations to assist in the protection of the
cultural and environmental values of land. This is measured through the proportion
of ILC’s total projects, rather than a target number of properties.
2013-14
Estimated
actual
2014-15
Budget
2015-16
Forward
estimate
2016-17
Forward
estimate
2017-18
Forward
estimate
Total number of Indigenous staff employed
directly through ILC agricultural and
tourism businesses
3801
400
450
450
450
Total number of Indigenous trainees
hosted through ILC agriculture and tourism
businesses
250
260
1402
155
155
Total number of Indigenous employment
outcomes enabled through ILC land
acquisition and land management projects
500
500
500
500
500
Total number of Indigenous training
outcomes enabled through ILC land
acquisition and land management projects
800
10003
1000
1000
1000
Total number of Indigenous-held
properties with improved land
management
100
100
1304
130
130
Proportion of ILC-assisted projects that
protect cultural and environmental heritage
values or maintained culture
25%
50%5
50%
50%
50%
Proportion of projects that were
collaborative with and leveraged funding
from other agencies
66%
66%
66%
66%
66%
1
Target raised in line with current performance and ability to achieve beyond the previous target.
2
Forecast numbers are decreased as matching Commonwealth funding has not been secured on an
ongoing basis.
3
The increase in achieved and forecast targets reflects the number of collaborative land management
projects that have a focus on training to employment.
4
The forecast is commensurate with the increase in focus on managing and developing existing held land.
5
The proportion has increased with improved reporting and the implementation of the ILC Environment and
Heritage Strategy.
191
ILC Budget Statements
Section 3: Explanatory Tables and Budgeted Financial
Statements
Section 3 presents explanatory tables and budgeted financial statements that provide a
comprehensive snapshot of agency finances for the 2014–15 Budget year. It explains
how budget plans are incorporated into the financial statements and provides further
details of the reconciliation between appropriations and programme expenses,
movements in administered funds, special accounts and Government Indigenous
expenditure.
3.1
EXPLANATORY TABLES
3.1.1 Movement of Administered Funds Between Years
ILC has no administered funds in the 2014–15 Budget.
3.1.2 Special Accounts
ILC has no special accounts in the 2014–15 Budget.
3.1.3 Australian Government Indigenous Expenditure
Table 3.1.3: Australian Government Indigenous Expenditure (AGIE)
Appropriations
Bill
Total
No. 1
approp
$'000
$'000
Other
Total
$'000
$'000
Indigenous Land Corporation
Outcome 1
Departmental 2014-15
Departmental 2013-14
Total outcome 2014-15
Total outcome 2013-14
9,527
9,664
9,527
9,664
9,527
9,664
9,527
9,664
73,065
82,686
73,065
82,686
82,592
92,350
82,592
92,350
Total departmental 2014-15
Total departmental 2013-14
9,527
9,664
9,527
9,664
73,065
82,686
82,592
92,350
Total AGIE 2014-15
Total AGIE 2013-14
9,527
9,664
9,527
9,664
73,065
82,686
82,592
92,350
192
Programme
1.1
1.1
ILC Budget Statements
3.2
BUDGETED FINANCIAL STATEMENTS
3.2.1 Differences in Agency Resourcing and Financial Statements
ILC has no differences in agency resourcing and financial statements.
3.2.2 Analysis of Budgeted Financial Statements
Departmental
The ILC’s primary source of income is an annual minimum payment of $45 million
indexed from the ATSILA pursuant to Section 193(2) of the ATSI Act.
Estimated payments from the ATSILA from 2013–14 onwards have been provided by
PM&C, which is responsible for the administration of the ATSILA.
The total resources for the ILC’s outcome include the income from the ATSILA, and
represent the funds available to ILC to carry out its legislated functions.
Under its legislation, ILC has the flexibility to invest funds and to roll over funds not
expended in previous years.
Under Section 191H of the ATSI Act, ILC has the specific power to invest moneys of
ILC. In addition, Section 193K of the ATSI Act specifically exempts ILC from
Section 18(3) of the Commonwealth Authorities and Companies Act 1997 (CAC Act). This
section of the CAC Act deals with allowable investments. Earnings on these
investments are represented in the Budgeted Departmental Comprehensive Income
Statement.
Under its legislation, ILC acquires land for the specific purpose of granting an interest
in that land to an Aboriginal or Torres Strait Islander corporation. ILC capitalises the
land on purchase and makes an immediate provision for the grant equivalent to the
purchase price. In the Budgeted Departmental Comprehensive Income Statement, the
expenses associated with the purchase and grant of the land are recognised in the
period in which the land is purchased. Expenses associated with land management
projects are recognised in the period in which the expenditure is incurred.
ILC also holds properties for granting that have significant livestock on them. In
accordance with Australian Accounting Standards, ILC values the livestock on a
market-to-market basis. Accordingly, the change in market value in any given period
is recognised in the Budgeted Departmental Comprehensive Income Statement.
193
ILC Budget Statements
3.2.3 Budgeted Financial Statements Tables
Table 3.2.1: Comprehensive Income Statement (Showing Net Cost of Services)
(for the period ended 30 June)
Estimated
actual
2013-14
$'000
Budget
estimate
2014-15
$'000
Forward
estimate
2015-16
$'000
Forward
estimate
2016-17
$'000
Forward
estimate
2017-18
$'000
EXPENSES
Employee benefits
Suppliers
Depreciation and amortisation
Finance costs
Total expenses
13,341
66,771
1,500
8,970
90,582
14,424
51,368
1,500
9,000
76,292
14,696
38,504
1,500
9,000
63,700
15,036
37,433
1,500
11,325
65,294
15,308
38,528
1,500
10,675
66,011
LESS:
OWN-SOURCE INCOME
Own-source revenue
Interest
Other
Total own-source revenue
19,440
63,246
82,686
18,500
54,565
73,065
18,500
55,711
74,211
18,500
57,038
75,538
18,500
58,346
76,846
Total own-source income
82,686
73,065
74,211
75,538
76,846
Net cost of (contribution by)
services
7,896
3,227
(10,511)
(10,244)
(10,835)
Revenue from Government
9,664
9,527*
9,389*
9,156*
9,065*
Surplus (Deficit) attributable to
the Australian Government
1,768
6,300
19,900
19,400
19,900
Total comprehensive income (loss)
1,768
6,300
19,900
19,400
19,900
Total comprehensive income (loss)
attributable to the Australian
Government
1,768
6,300
19,900
19,400
19,900
Prepared on Australian Accounting Standards basis.
194
ILC Budget Statements
Table 3.2.2: Budgeted Departmental Balance Sheet (as at 30 June)
Estimated
actual
2013-14
$'000
Budget
estimate
2014-15
$'000
Forward
estimate
2015-16
$'000
Forward
estimate
2016-17
$'000
Forward
estimate
2017-18
$'000
ASSETS
Financial assets
Cash and cash equivalents
Trade and other receivables
Other financial assets
Total financial assets
26,100
325,188
358
351,646
16,900
341,188
358
358,446
13,100
228,388
358
241,846
10,500
251,888
358
262,746
11,300
272,488
358
284,146
Non-financial assets
Land and buildings
Property, plant and equipment
Intangibles
Biological Assets
Assets held for sale
Inventories
Other non-financial assets
Total non-financial assets
Total assets
208
100,170
318
35,047
495
158,222
32,393
326,853
678,499
208
99,670
318
35,047
495
162,122
32,393
330,253
688,699
208
98,170
318
35,047
495
152,122
32,393
318,753
560,599
208
96,670
318
35,047
495
142,122
32,393
307,253
569,999
208
95,170
318
35,047
495
132,122
32,393
295,753
579,899
2,828
18,910
21,738
2,828
18,910
21,738
2,828
18,910
21,738
2,828
18,910
21,738
2,828
18,910
21,738
Interest bearing liabilities
Loans
Total interest bearing liabilities
138,000
138,000
138,000
138,000
-
-
-
Provisions
Employee provisions
Other provisions
Total provisions
3,096
184,370
187,466
3,096
188,270
191,366
3,096
178,270
181,366
3,096
168,270
171,366
3,096
158,270
161,366
Total liabilities
347,204
351,104
203,104
193,104
183,104
Net assets
331,295
337,595
357,495
376,895
396,795
6,949
6,949
6,949
6,949
6,949
324,346
331,295
330,646
337,595
350,546
357,495
369,946
376,895
389,846
396,795
LIABILITIES
Payables
Suppliers
Other payables
Total payables
EQUITY*
Parent entity interest
Reserves
Retained surplus
(accumulated deficit)
Total parent entity interest
Prepared on Australian Accounting Standards basis.
*‘Equity’ is the residual interest in assets after deduction of liabilities.
195
ILC Budget Statements
Table 3.2.3: Departmental Statement of Changes in Equity — Summary of
Movement (Budget Year 2014-15)
Retained
earnings
$'000
Opening balance as at 1 July 2014
Balance carried forward from
previous period
Adjusted opening balance
324,346
324,346
Comprehensive income
Surplus (deficit) for the period
Total comprehensive income
of which:
Attributable to the Australian Government
Estimated closing balance
as at 30 June 2015
Closing balance attributable to the
Australian Government
Prepared on Australian Accounting Standards basis.
196
Asset
revaluation
reserve
$'000
6,949
6,949
Total
equity
$'000
331,295
331,295
6,300
-
6,300
6,300
-
6,300
6,300
-
6,300
330,646
6,949
337,595
330,646
6,949
337,595
ILC Budget Statements
Table 3.2.4: Budgeted Departmental Statement of Cash Flows
(for the period ended 30 June)
Estimated
actual
2013-14
$'000
OPERATING ACTIVITIES
Cash received
Receipts from Government
Sale of Goods and Services
Interest
Other
Total cash received
Budget
estimate
2014-15
$'000
Forward
estimate
2015-16
$'000
Forward
estimate
2016-17
$'000
Forward
estimate
2017-18
$'000
9,664
1,521
1,307
62,425
74,917
9,527
54,565
64,092
9,389
137,999
55,711
203,099
9,156
57,038
66,194
9,065
58,346
67,411
Cash used
Employees
Suppliers
Borrowing costs
Total cash used
Net cash from (used by)
operating activities
13,155
69,417
8,970
91,542
14,424
51,368
9,000
74,792
14,696
58,503
9,000
82,199
15,036
57,433
11,325
83,794
15,308
58,528
10,675
84,511
(16,625)
(10,700)
120,900
(17,600)
(17,100)
INVESTING ACTIVITIES
Cash received
Loans and advances
Investments
Total cash received
9,975
9,975
3,000
3,000
4,800
4,800
6,500
6,500
9,400
9,400
1,500
1,500
1,500
1,500
1,500
1,500
1,500
1,500
1,500
1,500
8,475
1,500
3,300
5,000
7,900
-
-
128,000
128,000
(10,000)
(10,000)
(10,000)
(10,000)
-
-
(128,000)
10,000
10,000
Cash used
Purchase of property, plant
and equipment
Total cash used
Net cash from (used by)
investing activities
FINANCING ACTIVITIES
Cash used
Repayments of borrowings
Total cash used
Net cash from (used by)
financing activities
Net increase (decrease)
in cash held
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the
end of the reporting period
(8,150)
(9,200)
(3,800)
(2,600)
34,250
26,100
16,900
13,100
10,500
26,100
16,900
13,100
10,500
11,300
Prepared on Australian Accounting Standards basis.
197
800
ILC Budget Statements
Table 3.2.5: Departmental Capital Budget Statement
Estimated
actual
2013-14
$'000
Budget
estimate
2014-15
$'000
Forward
estimate
2015-16
$'000
Forward
estimate
2016-17
$'000
Forward
estimate
2017-18
$'000
PURCHASE OF NON-FINANCIAL
ASSETS
Funded internally from
departmental resources1
TOTAL
1,500
1,500
1,500
1,500
1,500
1,500
1,500
1,500
1,500
1,500
RECONCILIATION OF CASH
USED TO ACQUIRE ASSETS
TO ASSET MOVEMENT TABLE
Total purchases
1,500
1,500
1,500
1,500
1,500
Total cash used to acquire assets
1,500
1,500
1,500
1,500
1,500
Prepared on Australian Accounting Standards basis.
1
Includes the following sources of funding:
- current and prior year Bill 1/3/5 appropriations (excluding amounts from the DCB)
- donations and contributions
- gifts
- internally developed assets
- s31 relevant agency receipts
- proceeds from the sale of assets.
198
ILC Budget Statements
Table 3.2.6: Statement of Asset Movements (2014–15)
Asset Category
Land
$'000
As at 1 July 2014
Gross book value
Accumulated depreciation/amortisation
and impairment
Opening net book balance
Other property,
plant and
equipment
$'000
Computer
software and
intangibles
$'000
Total
$'000
208
119,402
672
120,282
208
(19,732)
99,670
(354)
318
(20,086)
100,196
CAPITAL ASSET ADDITIONS
Estimated expenditure on
new or replacement assets
By purchase - other
Total additions
-
(1,500)
(1,500)
-
(1,500)
(1,500)
Other movements
Depreciation/amortisation expense
Total other movements
-
1,500
1,500
-
1,500
1,500
208
117,902
672
118,782
208
(18,232)
99,670
(354)
318
(18,586)
100,196
As at 30 June 2015
Gross book value
Accumulated depreciation/amortisation
and impairment
Closing net book balance
Prepared on Australian Accounting Standards basis.
199
ILC Budget Statements
3.2.4 Notes to the Financial Statements
Accounting Policies
Basis of Accounting
The budgeted financial statements are a special purpose financial report.
Rounding
The budgeted financial statements have been rounded to the nearest thousand dollars.
Investments
Investments are recorded at their current cash-based valuation as at reporting date.
Section 193K of the ATSI Act states that the investment restrictions in Section 18(3) of
the CAC Act do not apply to ILC.
Inventory Held for Distribution
Inventory held for distribution represents properties purchased for the purpose of
transfer to appropriate organisations in line with the objectives of ILC and properties
transferred to ILC as a result of the Aboriginal and Torres Strait Islander Commission
Amendment Act 2004. Land purchases (including the related plant, equipment and
livestock, acquisition and holding costs) are capitalised on purchase and classified as
inventory. A provision is raised in the Budgeted Departmental Comprehensive
Income Statement for the full cost of land purchases (excluding livestock) representing
the sacrifice of future benefits embodied in the assets.
Biological Assets
Livestock held for trading purposes is classified as biological assets. Livestock is
valued at market value as at reporting date.
Recognition of Income
Receipts from the Land Account are recognised at the time ILC becomes entitled to
receive the revenue and have been classified for the purpose of this report as Revenues
from Land Account.
Economic Dependency
ILC is dependent on an annual payment from the ATSILA in accordance with
Section 193(2) of the ATSI Act.
Reporting Entities
The consolidated budgeted financial statements are those of the economic entity,
comprising ILC (the parent entity) and its wholly owned subsidiaries other than
Voyages Indigenous Tourism Australia Pty Ltd that has been classified as a Public
Non-Financial Corporation and is not a General Government Sector body.
200
ILC Budget Statements
Departmental and Administered Items
ILC has no administered items.
Asset Valuation
From 1 July 2005, in accordance with Australian Equivalents of International Financial
Reporting Standards, government agencies and authorities are required to use fair
value basis to measure property, plant and equipment.
All assets are initially recorded at cost. Property, plant and equipment and other
infrastructure assets are periodically revalued at their fair value.
201
Office of the Commonwealth
Ombudsman
Agency Resources and Planned
Performance
OFFICE OF THE COMMONWEALTH OMBUDSMAN
Section 1: Agency Overview and Resources ......................................................... 207
1.1 Strategic Direction Statement .............................................................................. 207
1.2 Agency Resource Statement ............................................................................... 208
1.3 Budget Measures ................................................................................................ 209
Section 2: Outcomes and Planned Performance ................................................... 210
2.1 Outcomes and Performance Information ............................................................ 210
Section 3: Explanatory Tables and Budgeted Financial Statements................... 217
3.1 Explanatory Tables .............................................................................................. 217
3.2 Budgeted Financial Statements .......................................................................... 218
205
OCO Budget Statements
OFFICE OF THE COMMONWEALTH OMBUDSMAN
Section 1: Agency Overview and Resources
1.1
STRATEGIC DIRECTION STATEMENT
The planned outcome of the Office of the Commonwealth Ombudsman (OCO) is fair
and accountable administration by Australian Government agencies by investigating
complaints, reviewing administrative action and statutory compliance by law
enforcement agencies.
The OCO ensures administrative action by Australian Government agencies is fair and
accountable by:

handling complaints

conducting investigations

performing audits and inspections

encouraging good administration

discharging other specialist oversight tasks (such as monitoring the operation of
the Commonwealth public interest disclosure scheme and the exercise of coercive
immigration powers).
In 2014–15, the OCO will continue its focus on significant and systemic issues arising
from complaints, inspections, monitoring and feedback from the community. We will
continue our endeavours in improving our policies, procedures and practices to
deliver efficient, practical, high quality and more consistent approaches to complaints.
The strategic priorities of the OCO are to:

foster good public administration that is fair, lawful, accountable and responsive

encourage agency integrity and compliance with legislation in the use of intrusive
and coercive powers

improve accountability and integrity in the Commonwealth public sector by
supporting agencies to address suspected wrongdoing

improve Australian public administration through collaboration with agencies

conduct our business efficiently and effectively.
207
OCO Budget Statements
1.2 AGENCY RESOURCE STATEMENT
Table 1.1 shows the total resources from all sources. The table summarises how
resources will be applied by outcome and by administered and departmental
classification.
Table 1.1: OCO Resource Statement — Budget Estimates for 2014-15 as at
Budget May 2014
Estimate
of prior
year amounts
available in
2014-15
$'000
Total
estimate
Actual
available
appropriation
2014-15
$'000
2014-15
$'000
2013-14
$'000
8,818
8,818
17,959
1,695
19,654
8,818
17,959
1,695
28,472
8,792
18,630
1,903
29,325
A
8,818
19,654
28,472
29,325
B
-
-
-
-
8,818
19,654
28,472
29,325
-
-
-
-
Ordinary annual services1
Departmental appropriation
Prior year departmental appropriation2
Departmental appropriation3
s31 Relevant agency receipts4
Total
Total ordinary annual services
+
Proposed
at Budget
=
Other services
Total other services
Total available annual
appropriations
Special appropriations
Total special appropriations
C
Total appropriations excluding
Special Accounts
Special Accounts
Total Special Account
Total resourcing
A+B+C+D
Total net resourcing for agency
8,818
D
19,654
28,472
29,325
-
-
-
-
8,818
8,818
19,654
19,654
28,472
28,472
29,325
29,325
1
Appropriation Bill (No.1) 2014-15.
2
Estimated adjusted balance carried forward from previous year.
3
Includes an amount of $0.8m in 2014-15 for the Departmental Capital Budget (refer to table 3.2.5 for further
details). For accounting purposes this amount has been designated as 'contributions by owners'.
s31 Relevant Agency receipts – estimate.
4
208
OCO Budget Statements
1.3 BUDGET MEASURES
Budget measures relating to the OCO are detailed in Budget Paper No. 2 and are
summarised below.
Table 1.2: OCO 2014-15 Budget Measures
Programme
Expense measures
Targeted savings — public service efficiencies
Departmental expenses
Total
Efficiency dividend — a further temporary
increase of 0.25 per cent
Departmental expenses
Total
Inspector-General of Taxation — transfer of
tax complaints handling1
Departmental expenses
Total
2014-15
$'000
2015-16
$'000
2016-17
$'000
2017-18
$'000
(25)
(25)
(52)
(52)
(94)
(94)
(105)
(105)
-
(46)
(46)
(90)
(90)
(135)
(135)
(136)
(136)
-
(649)
(649)
(645)
(645)
(642)
(642)
(647)
(647)
(25)
(747)
(829)
(882)
(783)
(25)
(747)
(829)
(882)
(783)
-
(2)
(2)
(4)
(4)
(6)
(6)
(6)
(6)
-
(2)
(2)
(4)
(4)
(6)
(6)
(6)
(6)
1.1
-
1.1
1.1
Total expense measures
Departmental
Total
Capital measures
Efficiency dividend — a further temporary
increase of 0.25 per cent
Departmental capital
Total
2013-14
$'000
1.1
Total capital measures
Departmental
Total
Prepared on a Government Finance Statistics (fiscal) basis.
1
The function of the Commonwealth Ombudsman in respect of taxation complaint case handling will transfer
to the Inspector-General of Taxation (IGoT).
209
OCO Budget Statements
Section 2: Outcomes and Planned Performance
2.1
OUTCOMES AND PERFORMANCE INFORMATION
Government outcomes are the intended results, impacts or consequences of actions by
the government on the Australian community. Commonwealth programmes are the
primary vehicle by which government agencies achieve the intended results of their
outcome statements. Agencies are required to identify the programmes which
contribute to government outcomes over the Budget and forward years.
The OCO’s outcome is described below together with its related programmes,
specifying the performance indicators and targets used to assess and monitor the
performance of the OCO in achieving government outcomes.
Outcome 1: Fair and accountable administrative action by Australian
Government agencies by investigating complaints, reviewing administrative
action and inspecting statutory compliance by law enforcement agencies.
Outcome 1 Strategy
The key strategies by which the OCO will seek to achieve its outcome are to:



build our capacity as a trusted advisor on good public administration by:
o
engaging with agencies to influence administrative improvements and
promote good administrative practices
o
identifying those within agencies who can bring about and influence change
o
monitoring the implementation of our recommendations to agencies
o
providing authoritative advice on agency complaint handling and good
public administration.
enhance our complaints handling by:
o
focusing our investigations on our strategic priority areas
o
examining and refining our complaints handling processes as necessary.
exercising efficient and effective oversight of selected intrusive and coercive
actions of agencies by:
o
completing inspections, audits and reports in accordance with legislative and
policy requirements.
210
OCO Budget Statements

monitor and promote the administration of the public interest disclosure scheme
for the Commonwealth public sector by:
o

reporting on the operation of the Commonwealth public interest disclosure
scheme in accordance with legislative requirements.
strengthening our Office’s accountability through:
o
improved performance reporting, evaluation, audit and governance.
211
OCO Budget Statements
Outcome Expense Statement
Table 2.1 provides an overview of the total expenses for Outcome 1 by programme.
Table 2.1: Budgeted Expenses for Outcome 1
Outcome 1: Fair and accountable administrative action by
Australian Government agencies by investigating complaints,
reviewing administrative action and inspecting statutory
compliance by law enforcement agencies.
Programme 1.1: Office of the Commonwealth Ombudsman
Departmental expenses
Departmental appropriation1
Expenses not requiring appropriation in the Budget year2
Total for Programme 1.1
Outcome 1 Totals by appropriation type
Departmental expenses
Departmental appropriation1
Expenses not requiring appropriation in the Budget year2
2013-14
Estimated
actual
expenses
$'000
2014-15
Estimated
expenses
$'000
19,900
18,894
767
723
20,667
19,617
19,900
767
18,894
723
Total expenses for Outcome 1
20,667
19,617
Average Staffing Level (number)
2013-14
136
2014-15
129
Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of
the Budget year as government priorities change.
1’
Departmental appropriation’ combines ‘Ordinary annual services (Appropriation Bill No. 1)’ and ‘Revenue
from independent sources (s31)’.
2’
Expenses not requiring appropriation in the Budget year’ is made up of depreciation expense, amortisation
expense and audit fees.
212
OCO Budget Statements
Contributions to Outcome 1
Programme 1.1: Office of the Commonwealth Ombudsman
Programme 1.1 Objectives
The objectives of this programme are to:

contribute to the fair treatment of people by the agencies we oversight,
including encouraging agencies to improve their internal complaints handling
systems

provide an accessible, effective and targeted complaints-handling service

effective oversight of agency compliance with legislation in the use of selected
intrusive or coercive powers

monitor and promote the administration of the public interest disclosure scheme
for the Commonwealth public sector

conduct our business efficiently and effectively.
Programme 1.1 Expenses
There are no significant changes in the level of activity or funding required for this
programme in 2014-15 or the forward years.
2013-14
Revised
budget
$'000
2014-15
Budget
2015-16
Forward
year 1
$'000
2016-17
Forward
year 2
$'000
2017-18
Forward
year 3
$'000
Annual departmental expenses:
Departmental appropriation1
Expenses not requiring appropriation in
19,900
18,894
18,588
18,412
19,164
the Budget year2
Total programme expenses
767
20,667
723
19,617
699
19,287
733
19,145
794
19,958
$'000
‘Departmental appropriation’ combines ‘Ordinary annual services (Appropriation Bill No. 1)’ and
‘Revenue from independent sources (s31)’.
1
‘Expenses not requiring appropriation in the Budget year’ is made up of depreciation expense,
amortisation expense and audit fees.
2
213
OCO Budget Statements
Programme 1.1 Deliverables
The programme deliverables include:

identify and report on systemic issues in public administration, including
making recommendations and reporting on their implementation

encourage agencies to improve internal complaints handling systems and
ensure they are accessible

oversight of selected intrusive or coercive powers used by relevant agencies

contribute to public administration through presentations, speeches, reports,
submissions and information guidance including best practice guides

contribute to the effective oversight of the Commonwealth public interest
disclosure scheme

targeted stakeholder engagement through the provision of information and
education regarding the role of the Office

implement improvements to our business operations.
214
OCO Budget Statements
Programme 1.1 Key Performance Indicators
Quantitative

percentage or number of complaints handled or resolved within internal
service standards

percentage or number of remedial investigation recommendations made,
accepted and implemented

number of discretionary decisions to not, or to cease to, investigate

percentage or number of inspections, audits and review conducted and
reported in accordance with legislative or policy requirements

percentage or number of remedial inspection recommendations made,
accepted and implemented

number of speeches, presentations, reports and submissions made to
parliamentary, ministerial, departmental or external stakeholders

percentage or number of remedial recommendations made, accepted and
implemented

the Ombudsman’s Annual Report on the operation of the Public Interest
Disclosure Act 2013 is completed on time and in accordance with legislative
requirements

number of stakeholder engagement activities completed

percentage or number of engagement activities that target priority stakeholders

number of Learning and Development courses offered and number of staff
attendances per year

percentage or number of internal policies, practices and processes updated and
refined

number of reportable financial breaches.
Qualitative

the Ombudsman is satisfied that complaint investigations appropriately
identify and report on systemic issues in public administration, and make
salient, practical and useful recommendations

external stakeholders are satisfied with the quality, timeliness and utility of our
investigations and reporting

the Ombudsman is satisfied that inspections, audits and reviews appropriately
identify and report on systemic issues in public administration, and make
salient, practical and useful recommendations

external stakeholders are satisfied with the quality, timeliness and utility of our
inspections and reporting
215
OCO Budget Statements

the Ombudsman is satisfied that our speeches, presentations, reports and
submissions appropriately identify and report on systemic issues in public
administration, and make salient, practical and useful recommendations

external stakeholders are satisfied with the quality, timeliness and utility of our
speeches, reports and submissions

the Ombudsman is satisfied that our oversight of the Commonwealth public
interest disclosure scheme is appropriate and effective

external stakeholders are satisfied with the OCO’s engagement activities

staff are satisfied with operational practices.
216
OCO Budget Statements
Section 3: Explanatory Tables and Budgeted Financial
Statements
Section 3 presents explanatory tables and budgeted financial statements which
provide a comprehensive snapshot of agency finances for the 2014-15 Budget year. It
explains how budget plans are incorporated into the financial statements and provides
further details of the reconciliation between appropriations and programme expenses,
movements in administered funds, special accounts and Government Indigenous
expenditure.
3.1
EXPLANATORY TABLES
3.1.1
Movement of Administered Funds Between Years
The OCO has no movement of administered funds between years.
3.1.2
Special Accounts
The OCO does not have any special accounts.
3.1.3
Australian Government Indigenous Expenditure
The OCO does not have any Indigenous specific expenditure.
217
OCO Budget Statements
3.2 Budgeted Financial Statements
The agency resource statement (Table 1.1) provides a consolidated view of the
resources available to the office in 2014-15. This includes equity injections (provided as
Departmental Capital Budget) and appropriations receivable. The Comprehensive
Income Statement (Table 3.2.1) shows only the operating appropriation provided in
2013-14.
3.2.2 Analysis of Budgeted Financial Statements
Departmental
Income Statement
The OCO is budgeting for a break-even operating result after adjustments for
unfunded depreciation and amortisation expense in 2014-15 and the forward years.
Revenue from government (appropriation funding) has decreased from $18.0 million
in 2013-14 to $17.2 million in 2014-15. This reduction is the combined effect of targeted
savings and changes in price and wage indices and the impact of the increased
efficiency dividend.
Supplier and employee expenses will reduce in line with the reduced appropriation
consistent with government policy to reduce spending on items such as travel,
advertising and printing and the implementation of more efficient management
structures.
Balance Sheet
The OCO’s budgeted net asset position at 30 June 2015 will be $4.8 million
(2013–14: $4.7 million).
The main payables and provisions are expected to remain at around the current levels
with the primary liability continuing to be accrued employee entitlements.
Statement of Changes in Equity
The statement of changes in equity shows the expected movements in equity over the
2014–15 year. The retained earnings portion of equity will reduce as a result of the net
cash appropriations not providing revenue to fund the depreciation expense. This is
offset by an increase in contributed equity where the funding for the OCO’s
departmental capital budget is recorded.
218
OCO Budget Statements
3.2.3 Budgeted Financial Statements Tables
Table 3.2.1 Comprehensive Income Statement (Showing Net Cost of Services)
(for the period ended 30 June)
Estimated
actual
2013-14
$'000
Budget
estimate
2014-15
$'000
Forward
estimate
2015-16
$'000
Forward
estimate
2016-17
$'000
Forward
estimate
2017-18
$'000
15,500
4,443
724
20,667
14,736
4,201
680
19,617
14,550
4,081
656
19,287
14,285
4,170
690
19,145
14,468
4,739
751
19,958
LESS:
OWN-SOURCE INCOME
Own-source revenue
Sale of goods and rendering of services
Total own-source revenue
1,903
1,903
1,695
1,695
1,615
1,615
1,574
1,574
2,195
2,195
Gains
Other
Total gains
Total own-source income
43
43
1,946
43
43
1,738
43
43
1,658
43
43
1,617
43
43
2,238
Net cost of (contribution by) services
18,721
17,879
17,629
17,528
17,720
Revenue from Government
17,997
17,199
16,973
16,838
16,969
EXPENSES
Employee benefits
Suppliers
Depreciation and amortisation
Total expenses
Surplus (Deficit) attributable to
the Australian Government
(724)
(680)
(656)
(690)
(751)
Total comprehensive income (loss)
attributable to the Australian
Government
(724)
(680)
(656)
(690)
(751)
2013-14
$'000
2014-15
$'000
2015-16
$'000
2016-17
$'000
-
-
-
Note: Impact of Net Cash Appropriation Arrangements
2012-13
$'000
Total Comprehensive Income
(loss) less depreciation/amortisation
expenses previously funded through
revenue appropriations.
plus depreciation/amortisation expenses
previously funded through revenue
appropriations1
Total Comprehensive Income
(loss) - as per the Statement of
Comprehensive Income
-
724
680
656
690
751
(724)
(680)
(656)
(690)
(751)
Prepared on Australian Accounting Standards basis.
1
From 2010-11, the Government introduced net cash appropriation arrangements where Bill 1 revenue
appropriations for the depreciation/amortisation expenses of FMA Act agencies were replaced with a
separate capital budget (the Departmental Capital Budget, or DCB) provided through Bill 1 equity
appropriations. For information regarding DCBs, please refer to Table 3.2.5 Departmental Capital Budget
Statement.
219
OCO Budget Statements
Table 3.2.2: Budgeted Departmental Balance Sheet (as at 30 June)
Estimated
actual
2013-14
$'000
ASSETS
Financial assets
Cash and cash equivalents
Trade and other receivables
Other financial assets
Total financial assets
Budget
estimate
2014-15
$'000
Forward
estimate
2015-16
$'000
Forward
estimate
2016-17
$'000
Forward
estimate
2017-18
$'000
114
8,841
73
9,028
114
8,797
45
8,956
114
8,229
17
8,360
114
8,060
1
8,175
114
7,975
1
8,090
2,328
340
235
2,903
11,931
2,297
451
261
3,009
11,965
2,319
526
261
3,106
11,466
2,307
601
261
3,169
11,344
2,401
517
261
3,179
11,269
LIABILITIES
Payables
Suppliers
Lease incentives
Fixed lease increase
Total payables
498
1,465
1,103
3,066
490
1,274
1,205
2,969
476
1,103
1,256
2,835
486
942
1,275
2,703
483
803
1,255
2,541
Provisions
Employee provisions
Other provisions
Total provisions
4,042
124
4,166
4,106
111
4,217
3,644
111
3,755
3,651
51
3,702
3,728
51
3,779
Total liabilities
7,232
7,186
6,590
6,405
6,320
Net assets
EQUITY*
Parent entity interest
Contributed equity
Reserves
Retained surplus
(accumulated deficit)
Total parent entity interest
4,699
4,779
4,876
4,939
4,949
4,956
1,033
5,716
1,033
6,469
1,033
7,222
1,033
7,983
1,033
(1,290)
4,699
(1,970)
4,779
(2,626)
4,876
(3,316)
4,939
(4,067)
4,949
4,699
4,779
4,876
4,939
4,949
Non-financial assets
Property, plant and equipment
Intangibles
Other non-financial assets
Total non-financial assets
Total assets
Total Equity
Prepared on Australian Accounting Standards basis.
*'Equity' is the residual interest in assets after deduction of liabilities.
220
OCO Budget Statements
Table 3.2.3: Departmental Statement of Changes in Equity — Summary of
Movement (Budget Year 2014-15)
Retained
earnings
$'000
Opening balance as at 1 July 2014
Balance carried forward from
previous period
Adjusted opening balance
Asset
Other Contributed
revaluation reserves
equity/
reserve
capital
$'000
$'000
$'000
Total
equity
$'000
(1,290)
(1,290)
1,033
1,033
-
4,956
4,956
4,699
4,699
(680)
-
-
-
(680)
(680)
-
-
-
(680)
(680)
-
-
-
(680)
-
-
760
760
760
760
(1,970)
1,033
-
5,716
4,779
(1,970)
1,033
-
5,716
4,779
Comprehensive income
Surplus (deficit) for the period
Total comprehensive income
of which:
Attributable to the Australian Government
Transactions with owners
Contributions by owners
Departmental Capital Budget (DCBs)
Sub-total transactions with owners
Estimated closing balance
as at 30 June 2015
Closing balance attributable to the
Australian Government
-
Prepared on Australian Accounting Standards basis.
221
OCO Budget Statements
Table 3.2.4: Budgeted Departmental Statement of Cash Flows
(for the period ended 30 June)
Estimated
actual
2013-14
$'000
OPERATING ACTIVITIES
Cash received
Appropriations
Sale of goods and rendering of services
Total cash received
Cash used
Employees
Suppliers
Total cash used
Net cash from (used by)
operating activities
Budget
estimate
2014-15
$'000
Forward
estimate
2015-16
$'000
Forward
estimate
2016-17
$'000
Forward
estimate
2017-18
$'000
17,424
2,329
19,753
17,841
1,733
19,574
18,067
1,646
19,713
17,588
1,591
19,179
17,619
1,677
19,296
15,434
4,291
19,725
15,172
4,402
19,574
15,510
4,203
19,713
14,779
4,400
19,179
14,890
4,406
19,296
28
-
-
-
-
453
155
608
496
264
760
500
253
753
497
256
753
647
114
761
(608)
(760)
(753)
(753)
(761)
608
608
760
760
753
753
753
753
761
761
608
760
753
753
761
28
-
-
-
-
86
114
114
114
114
114
114
114
114
114
INVESTING ACTIVITIES
Cash used
Purchase of property, plant
and equipment
Computer software and intangibles
Total cash used
Net cash from (used by)
investing activities
FINANCING ACTIVITIES
Cash received
Contributed equity
Total cash received
Net cash from (used by)
financing activities
Net increase (decrease)
in cash held
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the
end of the reporting period
Prepared on Australian Accounting Standards basis.
222
OCO Budget Statements
Table 3.2.5: Departmental Capital Budget Statement
Estimated
actual
2013-14
$'000
NEW CAPITAL APPROPRIATIONS
Capital budget - Bill 1 (DCB)
Total new capital appropriations
Budget
estimate
2014-15
$'000
Forward
estimate
2015-16
$'000
Forward
estimate
2016-17
$'000
Forward
estimate
2017-18
$'000
608
608
760
760
753
753
753
753
761
761
608
608
760
760
753
753
753
753
761
761
PURCHASE OF NON-FINANCIAL
ASSETS
Funded by capital appropriation - DCB1
TOTAL
608
608
760
760
753
753
753
753
761
761
RECONCILIATION OF CASH
USED TO ACQUIRE ASSETS
TO ASSET MOVEMENT TABLE
Total purchases
Total cash used to acquire assets
608
608
760
760
753
753
753
753
761
761
Provided for:
Purchase of non-financial assets
Total Items
Prepared on Australian Accounting Standards basis.
DCB = Departmental Capital Budget
1
Includes purchases from current and previous year's department capital budgets.
223
OCO Budget Statements
Table 3.2.6: Statement of Asset Movements (2014-15)
Asset Category
Other property,
plant and
equipment
$'000
As at 1 July 2014
Gross book value
Accumulated depreciation/amortisation
and impairment
Opening net book balance
CAPITAL ASSET ADDITIONS
Estimated expenditure on
new or replacement assets
By purchase - appropriation ordinary
annual services1
Total additions
Other movements
Depreciation/amortisation expense
Other
Total other movements
As at 30 June 2015
Gross book value
Accumulated depreciation/amortisation
and impairment
Closing net book balance
Computer
software and
intangibles
$'000
Total
$'000
4,183
1,683
5,866
(1,855)
2,328
(1,343)
340
(3,198)
2,668
496
496
264
264
760
760
(527)
(527)
(153)
(153)
(680)
(680)
4,679
1,947
6,626
(2,382)
2,297
(1,496)
451
(3,878)
2,748
Prepared on Australian Accounting Standards basis.
‘Appropriation ordinary annual services’ refers to funding provided through Appropriation Bill (No.1) 2014-15
for depreciation / amortisation expenses, DCBs / ACBs or other operational expenses.
1
224
Office of the Inspector-General
of Intelligence and Security
Agency Resources and Planned
Performance
OFFICE OF THE INSPECTOR-GENERAL OF
INTELLIGENCE AND SECURITY
Section 1: Agency Overview and Resources ......................................................... 229
1.1 Strategic Direction Statement .............................................................................. 229
1.2 Agency Resource Statement ............................................................................... 230
1.3 Budget Measures ................................................................................................ 231
Section 2: Outcomes and Planned Performance ................................................... 232
2.1 Outcomes and Performance Information ............................................................ 232
Section 3: Explanatory Tables and Budgeted Financial Statements ................... 236
3.1 Explanatory Tables .............................................................................................. 236
3.2 Budgeted Financial Statements .......................................................................... 237
227
OFFICE OF THE INSPECTOR-GENERAL OF
INTELLIGENCE AND SECURITY
Section 1: Agency Overview and Resources
1.1
STRATEGIC DIRECTION STATEMENT
The planned outcome for the Office of the Inspector-General of Intelligence and
Security (OIGIS) is the provision of independent assurance for the Prime Minister,
senior ministers and Parliament as to whether Australia’s intelligence and security
agencies act legally and with propriety by inspecting, inquiring into and reporting on
their activities.
OIGIS provides a specialised review mechanism for the six agencies that comprise the
Australian Intelligence Community:

Australian Security Intelligence Organisation (ASIO)

Australian Secret Intelligence Service (ASIS)

Defence Imagery and Geospatial Organisation (DIGO)

Defence Intelligence Organisation (DIO)

Australian Signals Directorate (ASD)

Office of National Assessments (ONA).
A proactive inspection programme is undertaken by OIGIS each year into the activities
of each Australian Intelligence Community agency. Formal inquiries may also be
conducted at the Inspector-General’s own motion, as a result of complaints received, or
by request from relevant ministers. The Prime Minister can request the
Inspector-General to inquire into an intelligence or security matter relating to an
Australian Government agency outside of the Australian Intelligence Community.
During formal inquiries, the Inspector-General of Intelligence and Security Act 1986
provides for the use of strong coercive powers, immunities and protections.
In conducting its inquiries and inspections, OIGIS focuses on compliance by the
Australian Intelligence Community agencies with Australian law and ministerial
directions, the propriety of their activities, and respect for human rights.
229
OIGIS Budget Statements
1.2
AGENCY RESOURCE STATEMENT
Table 1.1 shows the total resources from all sources. The table summarises how
resources will be applied by outcome and by administered and departmental
classification.
Table 1.1: OIGIS Resource Statement — Budget Estimates for 2014-15 as at
Budget May 2014
Estimate
of prior +
year amounts
available in
2014-15
$'000
Ordinary annual services1
Departmental appropriation
Prior year departmental appropriation2
Departmental appropriation3
s31 Relevant agency receipts4
Total
Proposed
at Budget
Total
estimate
Actual
available
appropriation
2014-15
$'000
2014-15
$'000
2013-14
$'000
2,124
395
2,519
2,189
2,189
2,124
2,189
395
4,708
1,845
2,178
4,023
=
Total ordinary annual services
A
2,519
2,189
4,708
4,023
Total other services
B
-
-
-
-
2,519
2,189
4,708
4,023
C
-
-
-
-
D
2,519
-
2,189
-
4,708
-
4,023
-
2,519
2,519
2,189
2,189
4,708
4,708
4,023
4,023
Total available annual
appropriations
Special appropriations
Total special appropriations
Total appropriations excluding
Special Accounts
Special Accounts
Total Special Account
Total resourcing
A+B+C+D
Total net resourcing for agency
Reader note: All figures are GST exclusive.
1
Appropriation Bill (No.1) 2014-15.
2
Estimated adjusted balance carried forward from previous year.
3
Includes an amount of $0.026m in 2014-15 for the Departmental Capital Budget (refer to table 3.2.5 for
further details). For accounting purposes this amount has been designated as 'contributions by owners'.
s31 Relevant Agency receipts — estimate.
4
230
OIGIS Budget Statements
1.3
BUDGET MEASURES
Budget measures in Part 1 relating to OIGIS are detailed in Budget Paper No. 2 and are
summarised below.
Table 1.2: OIGIS 2014-15 Budget Measures
Part 1: Measures Announced Since the 2013-14 MYEFO
Programme
Expense measures
Efficiency Dividend — a further temporary
increase of 0.25 per cent
Departmental expenses
Total
2013-14
$'000
2014-15
$'000
2015-16
$'000
2016-17
$'000
2017-18
$'000
-
(6)
(6)
(11)
(11)
(16)
(16)
(17)
(17)
-
(6)
(6)
(11)
(11)
(16)
(16)
(17)
(17)
1.1
Total expense measures
Departmental
Total
Prepared on a Government Finance Statistics (fiscal) basis.
Part 2: MYEFO Measures Not Previously Reported in a Portfolio Statement
Programme
Measures
Targeted savings — public service
efficiencies
Departmental expenses
Total
2013-14
$'000
2014-15
$'000
2015-16
$'000
2016-17
$'000
2017-18
$'000
(1)
(1)
(4)
(4)
(9)
(9)
(13)
(13)
-
(1)
(1)
(4)
(4)
(9)
(9)
(13)
(13)
-
1.1
Total measures
Departmental
Total
Prepared on a Government Finance Statistics (fiscal) basis.
231
OIGIS Budget Statements
Section 2: Outcomes and Planned Performance
2.1
OUTCOMES AND PERFORMANCE INFORMATION
Government outcomes are the intended results, impacts or consequences of actions by
the Government on the Australian community. Commonwealth programmes are the
primary vehicle by which Government agencies achieve the intended results of their
outcome statements. Agencies are required to identify the programmes which
contribute to Government outcomes over the Budget and forward years.
Each outcome is described below together with its related programmes, specifying the
performance indicators and targets used to assess and monitor the performance of
OIGIS in achieving Government outcomes.
Outcome 1: Independent assurance for the Prime Minister, senior ministers
and Parliament as to whether Australia’s intelligence and security agencies
act legally and with propriety by inspecting, inquiring into and reporting on
their activities.
Outcome 1 Strategy
The key strategies by which OIGIS will seek to achieve its outcome are:
 to continue and expand the agency’s inspection activities, which involve
proactively monitoring and reviewing the activities of the Australian Intelligence
Community agencies
 where appropriate, to initiate ‘own motion’ inquiries and investigate complaints or
referrals about the activities of the Australian Intelligence Community agencies
 at the request of the Prime Minster, to inquire into an intelligence and security
matter of a non-Australian Intelligence Community agency.
232
OIGIS Budget Statements
Outcome Expense Statement
Table 2.1 provides an overview of the total expenses for Outcome 1 by programme.
Table 2.1: Budgeted Expenses for Outcome 1
Outcome 1: Independent assurance for the Prime Minister,
senior ministers and Parliament as to whether Australia's
intelligence and security agencies act legally and with
propriety by inspecting, inquiring into and reporting on
their activities.
2013-14
Estimated
actual
expenses
$'000
2014-15
Estimated
expenses
$'000
Programme 1.1: Office of the Inspector General of Intelligence
and Security
Departmental expenses
Departmental appropriation1
2,178
2,163
131
131
2,309
2,294
Outcome 1 Totals by appropriation type
Departmental expenses
Departmental appropriation1
Expenses not requiring appropriation in the Budget year2
2,178
131
2,163
131
Total expenses for Outcome 1
2,309
2,294
2013-14
12
2014-15
11
Expenses not requiring appropriation in the Budget year2
Total for Programme 1.1
Average Staffing Level (number)
Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of
the Budget year as government priorities change.
Departmental Appropriation combines ‘Ordinary annual services (Appropriation Bill No. 1)’ and ‘Revenue
from independent sources (s31)’.
1
2
Expenses not requiring appropriation in the Budget year is made up of depreciation expense, amortisation
expense, makegood expense, audit fees, IT and other services provided free of charge.
233
OIGIS Budget Statements
Contributions to Outcome 1
Programme 1: Office of the Inspector-General of Intelligence and Security
Programme Objective
The objectives of this programme are:

to fulfil the responsibilities and functions outlined in the Inspector-General of
Intelligence and Security Act 1986

to provide independent assurance for the Prime Minister, senior ministers and
Parliament as to whether Australia’s intelligence and security agencies are
acting legally and with propriety.
Programme Expenses
The most significant programme expenses are employee-related expenses. OIGIS
also receives significant assistance free of charge from the Department of the Prime
Minister and Cabinet.
Factors that may have future resourcing implications include:

changes in Australian Intelligence Community activities

changes in the jurisdiction or role of OIGIS

changes in complaint or inquiry numbers.
2013-14
Estimated
actual
$'000
Annual departmental expenses:
Departmental appropriation
Expenses not requiring appropriation in
the Budget year1
Total Programme expenses
2014-15
Budget
$'000
2015-16
Forward
estimate
$'000
2016-17
Forward
estimate
$'000
2017-18
Forward
estimate
$'000
2,178
2,163
2,142
2,139
2,154
131
2,309
131
2,294
131
2,273
140
2,279
166
2,320
1
Expenses not requiring appropriation in the Budget year is made up of Depreciation Expense,
Amortisation Expense, Makegood Expense, Audit Fees, IT and Other Services Provided Free of Charge.
234
OIGIS Budget Statements
Programme Deliverables
The programme deliverables include:

conducting own motion inquiries as appropriate

undertaking a comprehensive inspection and visits programme to monitor and
review casework

providing effective and timely responses to complaints or referrals received
from members of the public, ministers or members of parliament

undertaking presentations to new and existing members of the Australian
Intelligence Community agencies to ensure an awareness and understanding of
their responsibilities and accountability

liaising with other accountability or integrity agencies in Australia and overseas.
Programme Key Performance Indicators

the breadth and depth of inspection work undertaken

the timeliness of completion of inquiries or complaint resolution

the level of acceptance by agencies, complainants and ministers of findings and
recommendations of inquiries conducted

the extent to which there has been change within the agencies as a result of
activities of OIGIS.
235
OIGIS Budget Statements
Section 3: Explanatory Tables and Budgeted Financial
Statements
Section 3 presents explanatory tables and budgeted financial statements which provide
a comprehensive snapshot of agency finances for the 2014-15 Budget year. It explains
how budget plans are incorporated into the financial statements and provides further
details of the reconciliation between appropriations and programme expenses,
movements in administered funds, special accounts and Government Indigenous
expenditure.
3.1
EXPLANATORY TABLES
3.1.1 Movement of Administered Funds Between Years
OIGIS does not have any movements of administered funds between years.
3.1.2 Special Accounts
OIGIS does not have any special accounts.
3.1.3 Australian Government Indigenous Expenditure
OIGIS does not have any Indigenous specific expenses.
236
OIGIS Budget Statements
3.2
BUDGETED FINANCIAL STATEMENTS
3.2.1 Differences in Agency Resourcing and Financial Statements
The agency resource statement (Table 1.1) provides a consolidated view of all the
resources available to the agency in 2014-15. This includes equity injections and
appropriations receivable that is yet to be drawn down to cover payables and
provisions in the Balance Sheet. The Comprehensive Income Statement (Table 3.2.1)
shows only the operating appropriations provided in 2014-15.
3.2.2 Analysis of Budgeted Financial Statements
Income Statement
OIGIS is budgeting for a break-even operating result, adjusted for depreciation and
amortisation expense, in 2014-15 and the forward years.
In line with the net cash appropriation arrangements effective from 2010-11, revenue
from government has been reduced by an amount equal to depreciation and
amortisation expense. Future asset replacements are funded through the departmental
capital budget detailed in Table 3.2.5.
As in previous years, the most significant component of the standard operating
expenditure will be salary related, which reflects the nature of the agency’s activities
and functions.
The resources received free of charge include the office space occupied in the
Department of the Prime Minister and Cabinet building (estimated value: $0.1 million
per year), the financial audit services provided by the Australian National Audit Office
(estimated value $0.014 million per year) and maintenance of the internal secure
communications network provided by the Defence Signals Directorate (estimated
value: $0.02 million per year).
Balance Sheet
In 2014-15 it is anticipated that the secure IT network, which represents the most
significant component of OIGIS’s assets, will be upgraded. OIGIS also holds office
equipment and furniture, the majority of which are owned by the Department of the
Prime Minister and Cabinet and provided free of charge.
OIGIS’s significant liabilities include accrued leave liabilities.
Statement of Cash Flows
The cash holdings remain relatively constant over the years due to the cash level
agreement between OIGIS and the Department of Finance.
237
OIGIS Budget Statements
Capital Budget Statement
The Capital Budget for 2014-15 is $0.026 million.
Statement of Changes in Equity
Following the government’s net cash arrangements, whereby depreciation expenses
are no longer funded, it is expected that the equity position will continue to decrease
across the forward years by the amount of the budgeted depreciation expense for the
year. This decline is offset by capital budget appropriations.
238
OIGIS Budget Statements
3.2.3 Budgeted Financial Statements Tables
Table 3.2.1 Comprehensive Income Statement (Showing Net Cost of Services) for
the period ended 30 June
Estimated
actual
2013-14
$'000
EXPENSES
Employee benefits
Suppliers
Depreciation and amortisation
Total expenses
Budget
estimate
2014-15
$'000
Forward
estimate
2015-16
$'000
Forward
estimate
2016-17
$'000
Forward
estimate
2017-18
$'000
1,953
343
13
2,309
1,905
376
13
2,294
1,938
322
13
2,273
1,941
325
13
2,279
1,997
284
39
2,320
-
-
-
-
-
118
118
118
118
118
118
118
118
118
127
127
127
127
127
127
Net cost of (contribution by)
services
2,191
2,176
2,155
2,152
2,193
Revenue from Government
2,178
2,163*
2,142*
2,139*
2,154*
LESS:
OWN-SOURCE INCOME
Own-source revenue
Total own-source revenue
Gains
Other
Total gains
Total own-source income
Surplus (Deficit) attributable to
the Australian Government
(13)
(13)
(13)
(13)
(39)
Total comprehensive income (loss)
attributable to the Australian
Government
(13)
(13)
(13)
(13)
(39)
2014-15
$'000
2015-16
$'000
2016-17
$'000
2017-18
$'000
Note: Impact of Net Cash Appropriation Arrangements
2013-14
$'000
Total Comprehensive Income
(loss) excluding depreciation/amortisation
expenses previously funded through
revenue appropriations.
less depreciation/amortisation expenses
previously funded through revenue
13
appropriations1
Total Comprehensive Income
(loss) - as per the Statement of
Comprehensive Income
(13)
-
-
-
-
13
13
13
39
(13)
(13)
(13)
(39)
Prepared on Australian Accounting Standards basis.
1
From 2010-11, the Government introduced net cash appropriation arrangements where Bill 1 revenue
appropriations for the depreciation/amortisation expenses of FMA Act agencies were replaced with a
separate capital budget (the Departmental Capital Budget, or DCB) provided through Bill 1 equity
appropriations. For information regarding DCBs, please refer to Table 3.2.5 Departmental Capital Budget
Statement.
239
OIGIS Budget Statements
Table 3.2.2: Budgeted Departmental Balance Sheet (as at 30 June)
Estimated
actual
2013-14
$'000
ASSETS
Financial assets
Cash and cash equivalents
Trade and other receivables
Appropriations Receivable
Other financial assets
Total financial assets
Non-financial assets
Property, plant and equipment
Total non-financial assets
Assets held for sale
Total assets
LIABILITIES
Payables
Suppliers
Total payables
Provisions
Employee provisions
Total provisions
Total liabilities
Net assets
EQUITY*
Parent entity interest
Contributed equity
Reserves
Retained surplus
(accumulated deficit)
Total Equity
Budget
estimate
2014-15
$'000
Forward
estimate
2015-16
$'000
Forward
estimate
2016-17
$'000
Forward
estimate
2017-18
$'000
202
6
1,897
3
2,108
202
7
1,830
3
2,042
202
7
1,830
3
2,042
202
7
1,856
3
2,068
202
7
1,856
3
2,068
78
78
157
157
169
169
181
181
167
167
2,186
2,199
2,211
2,249
2,235
5
5
5
5
5
5
5
5
5
5
774
774
774
774
774
774
800
800
800
800
779
779
779
805
805
1,407
1,420
1,432
1,444
1,430
463
7
489
7
514
7
539
7
564
7
937
1,407
924
1,420
911
1,432
898
1,444
859
1,430
Prepared on Australian Accounting Standards basis.
*'Equity' is the residual interest in assets after deduction of liabilities.
240
OIGIS Budget Statements
Table 3.2.3: Departmental Statement of Changes in Equity — Summary of
Movement (Budget Year 2014-15)
Retained
earnings
$'000
Opening balance as at 1 July 2014
Balance carried forward from
previous period
Adjusted opening balance
937
937
Asset Contributed
revaluation
equity/
reserve
capital
$'000
$'000
7
7
463
463
Total
equity
$'000
1,407
1,407
Comprehensive income
Surplus (deficit) for the period
(13)
-
-
(13)
Total comprehensive income
(13)
-
-
(13)
-
-
26
26
26
26
924
7
489
1,420
924
7
489
1,420
Transactions with owners
Contributions by owners
Departmental Capital Budget (DCBs)
Sub-total transactions with owners
Estimated closing balance
as at 30 June 2015
Closing balance attributable to the
Australian Government
Prepared on Australian Accounting Standards basis.
241
OIGIS Budget Statements
Table 3.2.4: Budgeted Departmental Statement of Cash Flows
(for the period ended 30 June)
Estimated
actual
2013-14
$'000
OPERATING ACTIVITIES
Cash received
Appropriations
Other
Total cash received
Cash used
Employees
Suppliers
Section 31 receipts transferred to OPA
Total cash used
Net cash from (used by)
operating activities
Budget
estimate
2014-15
$'000
Forward
estimate
2015-16
$'000
Forward
estimate
2016-17
$'000
Forward
estimate
2017-18
$'000
2,338
395
2,733
2,339
2,339
2,262
2,262
2,242
2,242
2,154
2,154
2,009
330
395
2,734
1,932
407
2,339
1,938
324
2,262
1,941
301
2,242
2,084
70
2,154
-
-
-
-
3
3
92
92
25
25
25
25
25
25
(3)
(92)
(25)
(25)
(25)
3
3
92
92
25
25
25
25
25
25
3
92
25
25
25
-
-
-
-
203
202
202
202
202
202
202
202
202
202
(1)
INVESTING ACTIVITIES
Cash used
Purchase of property, plant
and equipment
Total cash used
Net cash from (used by)
investing activities
FINANCING ACTIVITIES
Cash received
Contributed equity
Total cash received
Net cash from (used by)
financing activities
Net increase (decrease)
in cash held
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the
end of the reporting period
(1)
Prepared on Australian Accounting Standards basis.
242
OIGIS Budget Statements
Table 3.2.5: Departmental Capital Budget Statement
Estimated
actual
2013-14
$'000
NEW CAPITAL APPROPRIATIONS
Capital budget - Bill 1 (DCB)
Total new capital appropriations
Budget
estimate
2014-15
$'000
Forward
estimate
2015-16
$'000
Forward
estimate
2016-17
$'000
Forward
estimate
2017-18
$'000
69
69
26
26
25
25
25
25
25
25
69
69
26
26
25
25
25
25
25
25
PURCHASE OF NON-FINANCIAL
ASSETS
Funded by capital appropriation - DCB1
TOTAL
3
3
92
92
25
25
25
25
25
25
RECONCILIATION OF CASH
USED TO ACQUIRE ASSETS
TO ASSET MOVEMENT TABLE
Total purchases
Total cash used to acquire assets
3
3
92
92
25
25
25
25
25
25
Provided for:
Purchase of non-financial assets
Total Items
Prepared on Australian Accounting Standards basis.
DCB = Departmental Capital Budget.
1
Includes purchases from current and previous years' DCB.
243
OIGIS Budget Statements
Table 3.2.6: Statement of Asset Movements (2014-15)
Asset Category
Other property,
plant and
equipment
$'000
As at 1 July 2014
Gross book value
Accumulated depreciation/amortisation
and impairment
Opening net book balance
CAPITAL ASSET ADDITIONS
Estimated expenditure on
new or replacement assets
By purchase - appropriation ordinary
annual services1
Total additions
Other movements
Depreciation/amortisation expense
Total other movements
As at 30 June 2015
Gross book value
Accumulated depreciation/amortisation
and impairment
Closing net book balance
Total
$'000
175
175
(97)
78
(97)
78
92
92
92
92
(13)
(13)
(13)
(13)
267
267
(110)
157
(110)
157
Prepared on Australian Accounting Standards basis.
1
'Appropriation ordinary annual services' refers to funding provided through Appropriation Bill (No.1) 2014-15
for depreciation / amortisation expenses, DCBs or other operational expenses.
244
Office of National
Assessments
Agency Resources and Planned
Performance
OFFICE OF NATIONAL ASSESSMENTS
Section 1: Agency Overview and Resources ......................................................... 249
1.1 Strategic Direction Statement .............................................................................. 249
1.2 Agency Resource Statement ............................................................................... 250
1.3 Budget Measures ................................................................................................ 251
Section 2: Outcomes and Planned Performance ................................................... 252
2.1 Outcomes and Performance Information ............................................................ 252
Section 3: Explanatory Tables and Budgeted Financial Statements................... 258
3.1 Explanatory Tables .............................................................................................. 258
3.2 Budgeted Financial Statements .......................................................................... 259
247
ONA Budget Statements
OFFICE OF NATIONAL ASSESSMENTS
Section 1: Agency Overview and Resources
1.1
STRATEGIC DIRECTION STATEMENT
The planned outcome of the Office of National Assessments (ONA) is the
advancement of Australia’s national interests through increased government
awareness of international developments affecting Australia.
ONA is an all-source assessment agency that reports directly to the Prime Minister.
ONA provides assessments on international developments, including political,
strategic and economic developments, to the Prime Minister, senior ministers and
senior officials. ONA is also responsible for advancement of Australia’s national
interest through the effective coordination and evaluation of Australia’s foreign
intelligence activities.
249
ONA Budget Statements
1.2
AGENCY RESOURCE STATEMENT
Table 1.1 shows the total resources from all sources. The table summarises how
resources will be applied by outcome and by administered and departmental
classification.
Table 1.1: ONA Resource Statement — Budget Estimates for 2014-15 as at
Budget May 2014
Estimate
of prior
year amounts
available in
2014-15
$'000
Total
estimate
Actual
available
appropriation
2014-15
$'000
2014-15
$'000
2013-14
$'000
15,771
15,771
32,548
32,548
15,771
32,548
48,319
15,252
33,040
48,292
A
15,771
32,548
48,319
48,292
B
-
-
-
-
15,771
32,548
48,319
48,292
Ordinary annual services1
Departmental appropriation
Prior year departmental appropriation2
Departmental appropriation3
Total
Total ordinary annual services
Other services
Total other services
Total available annual
appropriations
+
Proposed
at Budget
=
Special appropriations
Total special appropriations
C
-
-
-
-
Total appropriations excluding
Special Accounts
Total Special Account
D
15,771
-
32,548
-
48,319
-
48,292
-
15,771
15,771
32,548
32,548
48,319
48,319
48,292
48,292
Total resourcing
A+B+C+D
Total net resourcing for agency
1
Appropriation Bill (No.1) 2014-15.
2
Estimated adjusted balance carried forward from previous year.
3
Includes an amount of $3.739m in 2014-15 for the Departmental Capital Budget (refer to table 3.2.5 for
further details). For accounting purposes this amount has been designated as 'contributions by owners'.
250
ONA Budget Statements
1.3
BUDGET MEASURES
Budget measures in Part 1 relating to ONA are detailed in Budget Paper No. 2 and are
summarised below.
Table 1.2: ONA 2014-15 Budget Measures
Part 1: Measures Announced Since the 2014-15 MYEFO
Programme
Expense measures
Efficiency Dividend — a further temporary
increase of 0.25 per cent
Departmental expenses
Total
2013-14
$'000
2015-16
$'000
2016-17
$'000
2017-18
$'000
-
(74)
(74)
(143)
(143)
(222)
(222)
(224)
(224)
-
(74)
(74)
(143)
(143)
(222)
(222)
(224)
(224)
-
(10)
(10)
(19)
(19)
(29)
(29)
(29)
(29)
-
(10)
(10)
(19)
(19)
(29)
(29)
(29)
(29)
All
Total expense measures
Departmental
Total
Capital measures
Efficiency Dividend — a further temporary
increase of 0.25 per cent
Departmental capital
Total
2014-15
$'000
All
Total capital measures
Departmental
Total
Prepared on a Government Finance Statistics (fiscal) basis.
251
ONA Budget Statements
Section 2: Outcomes and Planned Performance
2.1
OUTCOMES AND PERFORMANCE INFORMATION
Government outcomes are the intended results, impacts or consequences of actions by
the Government on the Australian community. Commonwealth programmes are the
primary vehicle by which Government agencies achieve the intended results of their
outcome statements. Agencies are required to identify the programmes which
contribute to Government outcomes over the Budget and forward years.
ONA's outcome is described below together with its related programmes, specifying
the performance indicators and targets used to assess and monitor the performance of
ONA in achieving Government outcomes.
Outcome 1: Advancement of Australia's national interests through increased
government awareness of international developments affecting Australia.
Outcome 1 Strategy
The key strategies by which ONA will seek to achieve its outcome are:


to maintain a strong customer focus by:
o
staying in close contact with its customers, ensuring that ONA and the
intelligence collection agencies are aware of the international issues of
concern to them
o
providing quality and timely coverage of subjects of political, strategic and
economic significance to Australia
o
seeking and using customer feedback to assess the effectiveness of its work
and improve the service that ONA provides.
to encourage the highest standards of intelligence analysis and assessment by:
o
employing the best staff available, and assisting them to fulfil their
potential through on-the-job training, travel and participation in staff
development schemes
o
promoting objectivity, creativity and analytical rigour
o
facilitating access by staff to the broadest possible range of information and
ideas through provision of highly capable information retrieval and storage
systems.
252
ONA Budget Statements


to keep Australia’s international intelligence activities under continuous review
by:
o
leading and supporting processes and committees to coordinate the foreign
and broader national security intelligence activities of Australian
intelligence agencies
o
monitoring their performance
government’s priorities
o
where appropriate, recommending measures to improve the effectiveness
of Australia’s foreign intelligence effort.
and
resourcing in relation to the
to provide a supportive and stimulating work environment, ONA will:
o
cultivate and recognise excellence in analytical and support areas by all
means, including the use of the government’s workplace reforms
o
encourage teamwork and close communication between management and
staff at all levels
o
ensure prudent but imaginative use of its financial resources
o
promote the application of equal employment opportunity, industrial
democracy, access and equity, and work health and safety principles.
ONA depends on regular feedback about its work programme from stakeholders (the
Prime Minister, Ministers and departments) and has developed a variety of
mechanisms that help evaluate its effectiveness in achieving planned outcomes and the
quality of its outputs. These are:

close liaison with the Prime Minister’s office and with other Ministers and their
departments

annual review of ONA’s performance by the Department of the Prime Minister
and Cabinet

regular internal review of ONA’s analytical and resource management objectives
and performance

evaluation of ONA’s statutory independence by the Inspector-General of
Intelligence and Security.
253
ONA Budget Statements
Outcome Expense Statement
Table 2.1 provides an overview of the total expenses for Outcome 1, by programme.
Table 2.1: Budgeted Expenses for Outcome 1
Outcome 1: Advancement of Australia's national interests
through increased government awareness of international
developments affecting Australia.
Program 1.1: Assessment and reports
Departmental expenses
Departmental appropriation1
Expenses not requiring appropriation in the Budget year2
Total for Program 1.1
Program 1.2: Coordination and evaluation
Departmental expenses
Departmental appropriation1
Expenses not requiring appropriation in the Budget year
2
Total for Program 1.2
Outcome 1 Totals by appropriation type
Departmental expenses
Departmental appropriation1
Expenses not requiring appropriation in the Budget year
2
2013-14
Estimated
actual
expenses
$'000
2014-15
Estimated
expenses
$'000
20,665
20,166
2,866
2,906
23,531
23,072
8,856
8,643
1,228
1,246
10,084
9,889
29,521
28,809
4,094
4,152
Total expenses for Outcome 1
33,615
32,961
Average Staffing Level (number)
2013-14
135
2014-15
130
Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of
the Budget year as government priorities change.
Departmental appropriation combines ‘Ordinary annual services (Appropriation Bill No. 1)’ and ‘Revenue
from independent sources (s31)’.
1
2
Expenses not requiring appropriation in the Budget year is made up of depreciation expense, amortisation
expense, audit fees and other gains.
254
ONA Budget Statements
Contributions to Outcome 1
Program 1.1: Assessments and Reports
Programme Objective
Provide accurate and timely assessments and reports to the Prime Minister, senior
ministers and officials.
Programme Expenses
The expenses for Programme 1.1 are listed in the following table.
2013-14
Revised
budget
$'000
2014-15
Budget
20,665
2,866
23,531
Annual departmental expenses:
Assessment and reports
Expenses not requiring appropriation in
the Budget year1
Total departmental expenses
2015-16
Forward
year 1
$'000
2016-17
Forward
year 2
$'000
2017-18
Forward
year 3
$'000
20,166
19,557
20,111
20,371
2,906
23,072
3,133
22,690
3,511
23,622
3,836
24,207
$'000
1
Expenses not requiring appropriation in the Budget year is made up of depreciation expense,
amortisation expense, audit fees and other gains.
Programme Deliverables
The programme deliverable includes accurate and timely assessments and reports
to the Prime Minister, senior ministers and officials that:

warn of threats and adverse developments and opportunities affecting
Australia’s national interests

inform government policy making.
255
ONA Budget Statements
Programme Key Performance Indicators

satisfaction of the Prime Minister and other key ministers as to the level of
analysis and assessment provided to Government

ONA depends on regular feedback on its work programme from clients (the
Prime Minister, ministers and departments) and has developed a variety of
mechanisms that help evaluate its effectiveness in achieving planned
outcomes and the quality of its outputs. These are:
o
close liaison with the Prime Minister’s office and with other ministers
and their departments
o
annual review of ONA’s performance by the Department of the Prime
Minister and Cabinet
o
regular internal review of ONA’s analytical and resource management
objectives and performance
o
evaluation of ONA’s statutory independence by the Inspector-General
of Intelligence and Security.
The measureable targets are:

satisfaction of the Prime Minister with the timeliness, accuracy and content of
reports

positive judgement of the ONA product as judged by clients in terms of
uniqueness, timeliness and responsiveness, relevance and accuracy.
256
ONA Budget Statements
Programme 1.2: Coordination and Evaluation
Programme Objective
The objective of this programme is to:

advance Australia’s national interest through the effective coordination and
evaluation of Australia’s foreign intelligence activities.
Programme Expenses
The expenses for Programme 1.2 are listed in the following table.
Annual departmental expenses:
Coordination and evaluation
Expenses not requiring appropriation in
the Budget year1
Total departmental expenses
2013-14
Revised
budget
$'000
2014-15
Budget
2015-16
Forward
year 1
$'000
2016-17
Forward
year 2
$'000
2017-18
Forward
year 3
$'000
8,856
8,643
8,382
8,619
8,730
1,228
10,084
1,246
9,889
1,343
9,725
1,505
10,124
1,644
10,374
$'000
1
Expenses not requiring appropriation in the Budget year is made up of depreciation expense,
amortisation expense, audit fees and other gains.
Programme Deliverables
The programme deliverables include:

improved intelligence capability and performance through the effective
coordination and evaluation of Australia’s foreign intelligence activities

provide advice on the adequacy of resources for foreign intelligence activities

effective intelligence relationships with close allies and partners.
Programme Key Performance Indicators

ONA’s intelligence coordination mechanisms are credible and effective and
deliver well-coordinated foreign intelligence support to Government

ONA’s evaluation processes are complete and credible and inform Government.
257
ONA Budget Statements
Section 3: Explanatory Tables and Budgeted Financial
Statements
Section 3 presents explanatory tables and budgeted financial statements which provide
a comprehensive snapshot of agency finances for the 2014-15 Budget year. It explains
how budget plans are incorporated into the financial statements and provides further
details of the reconciliation between appropriations and programme expenses,
movements in administered funds, special accounts and Government Indigenous
expenditure.
3.1
EXPLANATORY TABLES
3.1.1 Movement of Administered Funds Between Years
ONA does not have any movement of administered funds between years.
3.1.2 Special Accounts
ONA does not have any special accounts.
3.1.3 Australian Government Indigenous Expenditure
ONA does not have any Indigenous specific expenses.
258
ONA Budget Statements
3.2
BUDGETED FINANCIAL STATEMENTS
3.2.1 Differences in Agency Resourcing and Financial Statements
The agency resource statement (Table 1.1) provides a consolidated view of all the
resources available to the agency in 2014-15. This includes equity injections and
appropriation receivable that is yet to be drawn down to cover payables and
provisions on the Balance Sheet. The Comprehensive Income Statement (Table 3.2.1)
shows only the operating appropriation provided in 2014-15.
3.2.2 Analysis of Budgeted Financial Statements
Income Statement
ONA is budgeting for a break-even operating result, adjusted for depreciation and
amortisation expense, in 2014-15 and the forward years.
Considerable efforts have been made to reduce supplier costs across the Budget and
forward years. However, a balanced budget can only be achieved through further
reductions in operating and employee related costs over the Budget and forward
years.
The retained and committed surpluses from previous years will be used to continue
the implementation of business critical measures.
Balance Sheet
Cash balances are maintained within a working capital limit of $0.7m as agreed with
the Department of Finance.
Appropriation balances carried forward are to cover employee provisions.
Development and major upgrades of ONA internally developed software will take
place over the Budget and forward years.
The increase in supplier payables reflects the rent payable liability increasing over the
Budget and forward years due to the requirement for lease payments under an
operating lease to be recognised as an expense on a straight-line basis over the lease
term.
The employee provisions balance is expected to reduce due the reduction of staff
numbers.
259
ONA Budget Statements
Statement of Cash Flows
The cash flow is consistent with, and representative of, the transactions reported in the
income statement, adjusted for non-cash items and anticipated capital purchases.
ONA's working cash balance is $0.7m in accordance with ONA's agreement with the
Department of Finance.
Capital Budget Statement
The departmental capital budget statement shows the expected capital works
programme for the current and forward years, including the purchase of new assets as
well as replacement of exiting assets.
260
ONA Budget Statements
3.2.3 Budgeted Financial Statements Tables
Table 3.2.1 Comprehensive Income Statement (Showing Net Cost of Services)
(for the period ended 30 June)
Estimated
actual
2013-14
$'000
Budget
estimate
2014-15
$'000
Forward
estimate
2015-16
$'000
Forward
estimate
2016-17
$'000
Forward
estimate
2017-18
$'000
19,486
10,155
3,974
33,615
19,949
8,890
4,122
32,961
19,149
8,820
4,446
32,415
19,178
9,582
4,985
33,745
19,137
9,994
5,450
34,581
120
120
120
30
30
30
30
30
30
30
30
30
30
30
30
Net cost of (contribution by)
services
33,495
32,931
32,385
33,715
34,551
Revenue from Government
29,521
28,809*
27,939*
28,730*
29,101*
Surplus (Deficit) attributable to
the Australian Government
(3,974)
(4,122)
(4,446)
(4,985)
(5,450)
Total comprehensive income (loss)
attributable to the Australian
Government
(3,974)
(4,122)
(4,446)
(4,985)
(5,450)
2013-14
$'000
2014-15
$'000
2015-16
$'000
2016-17
$'000
EXPENSES
Employee benefits
Supplier expenses
Depreciation and amortisation
Total expenses
LESS:
OWN-SOURCE INCOME
Gains
Other
Total gains
Total own-source income
Note: Impact of Net Cash Appropriation Arrangements
2012-13
$'000
Total Comprehensive Income
(loss) excluding depreciation/amortisation
expenses previously funded through
revenue approprations
less depreciation/amortisation expenses
previously funded through revenue
appropriations1
Total Comprehensive Income
(loss) - as per the Statement of
Comprehensive Income
-
-
-
-
3,974
4,122
4,446
4,985
5,450
(3,974)
(4,122)
(4,446)
(4,985)
(5,450)
Prepared on Australian Accounting Standards basis.
1
From 2010-11, the Government introduced net cash appropriation arrangements where Bill 1 revenue
appropriations for the depreciation/amortisation expense of FMA Act agencies were replaced with a
separate capital budget (the Department Capital Budget, or DCB) provided through Bill 1 equity
appropriations. For information regarding DCBs, please refer to Table 3.2.5 Departmental Capital Budget
Statement.
261
ONA Budget Statements
Table 3.2.2: Budgeted Departmental Balance Sheet (as at 30 June)
Estimated
actual
2013-14
$'000
Budget
estimate
2014-15
$'000
Forward
estimate
2015-16
$'000
Forward
estimate
2016-17
$'000
Forward
estimate
2017-18
$'000
ASSETS
Financial assets
Cash and cash equivalents
Trade and other receivables
Total financial assets
658
15,906
16,564
658
16,192
16,850
658
13,594
14,252
658
9,227
9,885
658
4,024
4,682
Non-financial assets
Land and buildings
Property, plant and equipment
Intangibles
Other
Total non-financial assets
Total assets
19,638
3,160
2,435
670
25,903
42,467
18,659
3,117
2,878
670
25,324
42,174
17,626
3,824
5,151
670
27,271
41,523
16,534
5,031
8,144
670
30,379
40,264
15,377
6,738
11,069
670
33,854
38,536
LIABILITIES
Payables
Suppliers
Other
Total payables
1,300
554
1,854
1,847
554
2,401
2,294
553
2,847
2,639
553
3,192
2,877
553
3,430
Provisions
Employee provisions
Total provisions
5,285
5,285
4,828
4,828
4,480
4,480
4,163
4,163
3,890
3,890
7,139
7,229
7,327
7,355
7,320
Net assets
EQUITY*
Parent entity interest
Contributed equity
Reserves
Retained surplus
(accumulated deficit)
Total parent entity interest
35,328
34,945
34,196
32,909
31,216
35,128
617
38,867
617
42,564
617
46,262
617
50,019
617
(417)
35,328
(4,539)
34,945
(8,985)
34,196
(13,970)
32,909
(19,420)
31,216
Total Equity
35,328
34,945
34,196
32,909
31,216
Total liabilities
Prepared on Australian Accounting Standards basis.
*'Equity' is the residual interest in assets after deduction of liabilities.
262
ONA Budget Statements
Table 3.2.3: Departmental Statement of Changes in Equity — Summary of
Movement (Budget year 2014-15)
Retained
earnings
$'000
Opening balance as at 1 July 2014
Balance carried forward from
previous period
Adjusted opening balance
Comprehensive income
Surplus (deficit) for the period
Total comprehensive income
of which:
Attributable to the Australian Government
Total
equity
$'000
(417)
(417)
617
617
35,128
35,128
(4,122)
-
-
(4,122)
(4,122)
-
-
(4,122)
(4,122)
-
-
(4,122)
-
3,739
3,739
3,739
3,739
(4,539)
617
38,867
34,945
(4,539)
617
38,867
34,945
Transactions with owners
Contributions by owners
Departmental Capital Budget (DCBs)
Sub-total transactions with owners
-
Estimated closing balance
as at 30 June 2015
Closing balance attributable to the
Australian Government
Asset Contributed
revaluation
equity/
reserve
capital
$'000
$'000
Prepared on Australian Accounting Standards basis.
263
35,328
35,328
ONA Budget Statements
Table 3.2.4: Budgeted Departmental Statement of Cash Flows
(for the period ended 30 June)
Estimated
actual
2013-14
$'000
OPERATING ACTIVITIES
Cash received
Appropriations
Net GST received
Total cash received
Cash used
Employees
Suppliers
Total cash used
Net cash from (used by)
operating activities
INVESTING ACTIVITIES
Cash used
Buildings
Purchase of property, plant
and equipment
Intangibles
Total cash used
Net cash from (used by)
investing activities
FINANCING ACTIVITIES
Cash received
Contributed equity
Total cash received
Net cash from (used by)
financing activities
Net increase (decrease)
in cash held
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the
end of the reporting period
Budget
estimate
2014-15
$'000
Forward
estimate
2015-16
$'000
Forward
estimate
2016-17
$'000
Forward
estimate
2017-18
$'000
29,429
1,287
30,716
28,719
1,445
30,164
27,939
1,608
29,547
33,097
1,768
34,865
34,304
916
35,220
19,191
11,525
30,716
19,746
10,418
30,164
18,938
10,511
29,449
19,037
11,433
30,470
19,059
10,993
30,052
-
-
98
4,395
5,168
100
650
650
650
650
1,250
1,742
3,092
1,500
1,393
3,543
2,250
3,493
6,393
2,750
4,693
8,093
3,250
5,025
8,925
(3,092)
(3,543)
(6,393)
(8,093)
(8,925)
3,092
3,092
3,543
3,543
6,295
6,295
3,698
3,698
3,757
3,757
3,092
3,543
6,295
3,698
3,757
-
-
-
-
-
658
658
658
658
658
658
658
658
658
658
Prepared on Australian Accounting Standards basis.
264
ONA Budget Statements
Table 3.2.5: Departmental Capital Budget Statement
Estimated
actual
2013-14
$'000
Budget
estimate
2014-15
$'000
Forward
estimate
2015-16
$'000
Forward
estimate
2016-17
$'000
Forward
estimate
2017-18
$'000
CAPITAL APPROPRIATIONS
Capital budget - Bill 1 (DCB)
Total capital appropriations
3,519
3,519
3,739
3,739
3,697
3,697
3,698
3,698
3,757
3,757
Total new capital appropriations
Represented by:
Purchase of non-financial assets
Total Items
3,519
3,519
3,739
3,739
3,697
3,697
3,698
3,698
3,757
3,757
PURCHASE OF NON-FINANCIAL
ASSETS
Funded by capital appropriation - DCB1
3,092
3,543
6,295
3,698
3,757
3,092
3,543
98
6,393
4,395
8,093
5,168
8,925
3,092
3,543
6,393
8,093
8,925
3,092
3,543
6,393
8,093
8,925
Funded internally from
departmental resources2
TOTAL
RECONCILIATION OF CASH
USED TO ACQUIRE ASSETS
TO ASSET MOVEMENT TABLE
Total purchases
Total cash used to
acquire assets
Prepared on Australian Accounting Standards basis.
DCB = Departmental Capital Budget.
Does not include annual finance lease costs. Includes purchase from current and previous year’s
Departmental Capital Budgets.
1
2
Includes the following sources of funding:
- current Bill and prior year Act 1/3/5 appropriations (excluding amounts from the DCB).
265
ONA Budget Statements
Table 3.2.6: Statement of Asset Movements (2014-15)
Asset Category
Buildings
$'000
As at 1 July 2014
Gross book value
Accumulated depreciation/amortisation
and impairment
Opening net book balance
CAPITAL ASSET ADDITIONS
Estimated expenditure on
new or replacement assets
By purchase - appropriation ordinary
annual services1
Total additions
Other movements
Depreciation/amortisation expense
As at 30 June 2015
Gross book value
Accumulated depreciation/amortisation
and impairment
Closing net book balance
Other property,
plant and
equipment
$'000
Intangibles
Total
$'000
$'000
23,905
10,299
7,961
42,165
(4,267)
(7,139)
(5,526)
(16,932)
19,638
3,160
2,435
25,233
650
650
1,500
1,500
1,393
1,393
3,543
3,543
(1,629)
(1,543)
(950)
(4,122)
24,555
11,799
9,354
45,708
(5,896)
18,659
(8,682)
3,117
(6,476)
2,878
(21,054)
24,654
Prepared on Australian Accounting Standards basis.
‘Appropriation ordinary annual services’ refers to funding provided through Appropriation Bill (No.1)
2014-15 for the DCB.
1
266
Office of the Official Secretary
to the Governor-General
Agency Resources and Planned
Performance
OFFICE OF THE OFFICIAL SECRETARY TO THE
GOVERNOR-GENERAL
Section 1: Agency Overview and Resources ......................................................... 271
1.1 Strategic Direction Statement .............................................................................. 271
1.2 Agency Resource Statement ............................................................................... 272
1.3 Budget Measures ................................................................................................ 273
Section 2: Outcomes and Planned Performance ................................................... 274
2.1 Outcomes and Performance Information ............................................................ 274
Section 3: Explanatory Tables and Budgeted Financial Statements................... 280
3.1 Explanatory Tables .............................................................................................. 280
3.2 Budgeted Financial Statements .......................................................................... 281
269
OOSGG Budget Statements
OFFICE OF THE OFFICIAL SECRETARY TO THE
GOVERNOR-GENERAL
Section 1: Agency Overview and Resources
1.1
STRATEGIC DIRECTION STATEMENT
The planned outcome for the Office of the Official Secretary to the Governor-General
(OOSGG) is the facilitation of the performance of the Governor-General’s role through
the organisation and management of official duties, management and maintenance of
the official household and property, and administration of the Australian Honours and
Awards system.
The OOSGG delivers its planned outcome through one programme, being ‘Support for
the Governor-General and Official Functions’.
The OOSGG’s role is to support the Governor-General to enable him to perform
official duties, including support in connection with official functions, the
management and maintenance of Government House in Canberra and Admiralty
House in Sydney, and the effective administration of the Australian Honours and
Awards system.
271
OOSGG Budget Statements
1.2
AGENCY RESOURCE STATEMENT
Table 1.1 shows the total resources from all sources. The table summarises how
resources will be applied by outcome and by administered and departmental
classification.
Table 1.1: OOSGG Agency Resource Statement — Budget Estimates for 2014-15
as at Budget May 2014
Estimate
of prior
year amounts
available in
2014-15
$'000
Ordinary annual services1
Departmental appropriation
Prior year departmental appropriation2
Departmental appropriation3
s31 Relevant agency receipts4
Total
Total
estimate
Actual
available
appropriation
2014-15
$'000
2014-15
$'000
2013-14
$'000
1,986
1,986
11,777
11,777
1,986
11,777
13,763
3,895
11,545
14
15,454
-
1,574
1,574
1,574
1,574
2,071
2,071
1,986
13,351
15,337
17,525
1,739
1,739
-
1,739
1,739
4,307
4,307
1,739
-
1,739
4,307
3,725
13,351
17,076
21,832
-
425
425
425
425
425
425
Administered expenses
Outcome 1
Total
Total ordinary annual services
A
Other services6
Departmental non-operating
Equity injections
Total
Total other services
B
Total available annual appropriations
Special appropriations
Special appropriations limited
by amount
Governor-General Act 1974
Total special appropriations
C
Total appropriations excluding
Special Accounts
Total Special Account
D
Total resourcing
A+B+C+D
Total net resourcing for agency
+
3,725
3,725
3,725
Proposed
at Budget
13,776
13,776
13,776
=
17,501
17,501
17,501
22,257
22,257
22,257
Reader note: All figures are GST exclusive.
1
Appropriation Bill (No.1) 2014-15.
2
Estimated adjusted balance carried forward from previous year.
3
Includes an amount of $0.4 million in 2014-15 for the Departmental Capital Budget (refer to table 3.2.5 for
further details). For accounting purposes this amount has been designated as 'contributions by owners'.
4
s31 Relevant Agency receipts - estimate.
272
OOSGG Budget Statements
1.3
BUDGET MEASURES
Budget measures in Part 1 relating to OOSGG are detailed in Budget Paper No. 2 and
are summarised below.
Table 1.2: OOSGG 2014-15 Budget Measures
Part 1: Measures Announced Since the 2013-14 MYEFO
Programme
Measures
Efficency Dividend — a further temporary
increase of 0.25 per cent
Departmental expenses
Total
2013-14
$'000
2014-15
$'000
2015-16
$'000
2016-17
$'000
2017-18
$'000
-
(142)
(142)
(313)
(313)
(486)
(486)
(86)
(86)
-
(142)
(142)
(313)
(313)
(486)
(486)
(86)
(86)
1.1
Total measures
Departmental
Total
Prepared on a Government Financial Statistics (fiscal) basis.
273
OOSGG Budget Statements
Section 2: Outcomes and Planned Performance
2.1
OUTCOMES AND PERFORMANCE INFORMATION
Government outcomes are the intended results, impacts or consequences of actions by
the Government on the Australian community. Commonwealth programmes are the
primary vehicle by which government agencies achieve the intended results of their
outcome statements. Agencies are required to identify the programmes which
contribute to Government outcomes over the Budget and forward years.
Each outcome is described below together with its related programmes, specifying the
performance indicators and targets used to assess and monitor the performance of the
OOSGG in achieving Government outcomes.
Outcome 1: The performance of the Governor-General’s role is facilitated
through the organisation and management of official duties, management and
maintenance of the official household and property and administration of the
Australian Honours and Awards system.
Outcome 1 Strategy
The OOSGG will seek to achieve its outcome by:
 providing a high standard of advice and service delivery to the Governor-General
and stakeholders
 delivering effective governance and management arrangements in support of the
official duties of the Governor-General
 ensuring efficient and effective stewardship of the properties in accordance with
heritage requirements and approved capital works and maintenance programmes
 educating and informing Australians about the role of the Governor-General
 delivering efficient and effective administration of the Australian Honours and
Awards system.
274
OOSGG Budget Statements
Outcome Expense Statement
Table 2.1 provides an overview of the total expenses for Outcome 1, by its programme.
Table 2.1: Budgeted Expenses for Outcome 1
Outcome 1: The performance of the Governor-General’s role is
facilitated through the organisation and management of official
duties, management and maintenance of the official household
and property and administration of the Australian Honours and
Awards system.
Programme 1.1: Support the Governor-General
Administered expenses
Ordinary annual services (Appropriation Bill No. 1)
Special appropriations
Departmental expenses
Departmental appropriation1
Expenses not requiring appropriation in the Budget year2
Total for Programme 1.1
2013-14
Estimated
actual
expenses
$'000
2014-15
Estimated
expenses
$'000
1,491
425
1,574
425
11,178
444
11,377
417
13,538
13,793
Outcome 1 Totals by appropriation type
Administered Expenses
Ordinary annual services (Appropriation Bill No. 1)
Special appropriations
Departmental expenses
Departmental appropriation1
Expenses not requiring appropriation in the Budget year2
1,491
425
1,574
425
11,178
444
11,377
417
Total expenses for Outcome 1
13,538
13,793
Average Staffing Level (number)
2013-14
82
2014-15
80
Departmental Appropriation combines ‘Ordinary annual services (Appropriation Bill No. 1)’ and ‘Revenue
from independent sources (s31)’.
1
2
Expenses not requiring appropriation in the Budget year is made up of depreciation expense, amortisation
expense, makegood expense & audit fees.
275
OOSGG Budget Statements
Contributions to Outcome 1
Programme 1.1: Support for the Governor-General and Official Functions
Programme 1.1 Objectives
The programme comprises two components:
 support of the Governor-General
 administration of the Australian Honours and Awards system.
The objectives of this programme are:
 to provide a high level of advice and administrative support to the GovernorGeneral in support of official duties
 to effectively and efficiently manage and maintain the Governor-General’s
official residences in Canberra and Sydney, including capital improvements,
building and grounds maintenance, and caretaker responsibilities
 to administer, on behalf of the Governor-General, the Australian Honours and
Awards system, including all civilian honours, and awards for members of the
Australian Defence Force
 to undertake research and prepare nominations for consideration by the Council
for the Order of Australia, the Australian Bravery Decorations Council and the
National Emergency Medal Committee
 to provide efficient and effective secretariat support to the Australian honours
advisory bodies
 to undertake the efficient procurement of Australian honours medals/insignia,
warrants and investiture items.
276
OOSGG Budget Statements
Programme Expenses
2013-14
Estimated
actual
$'000
Annual administered expenses:
Administered item
Special Appropriations:
Governor-General Act 1974
Annual departmental expenses:
Programme support
Programme support
Expenses not requiring appropriation in
the Budget year1
Total Programme expenses
2014-15
Budget
$'000
2015-16
Forward
estimate
$'000
2016-17
Forward
estimate
$'000
2017-18
Forward
estimate
$'000
1,491
1,574
1,686
1,640
1,632
425
425
425
425
425
11,178
11,377
11,277
11,263
11,384
444
13,538
417
13,793
420
13,808
414
13,742
445
13,886
1
Expenses not requiring appropriation in the Budget year is made up of depreciation expense,
amortisation expense, makegood expense and audit fees.
Programme Components
2013-14
Estimated
actual
$'000
1.1.1 - Component 1: Support of the
Governor-General
Annual administered expenses:
Depreciation & Amortisation
Special appropriations:
Governor-General Act 1974
Annual departmental expenses:
Programme support
Total component expenses
1.1.2 - Component 2: Administration of
the Australian Honours and Awards
system
Annual administered expenses:
Supplier Expenses
Annual departmental expenses:
Programme support
Total component expenses
Expenses not requiring Appropriation in
the Budget year
Total Programme expenses
2014-15
Budget
$'000
2015-16
Forward
estimate
$'000
2016-17
Forward
estimate
$'000
2017-18
Forward
estimate
$'000
644
710
796
747
728
425
425
425
425
425
6,148
7,217
6,377
7,512
6,321
7,542
6,312
7,484
6,380
7,533
847
864
890
893
904
5,030
5,877
5,000
5,864
4,956
5,846
4,951
5,844
5,004
5,908
444
13,538
417
13,793
420
13,808
414
13,742
445
13,886
1
Expenses not requiring appropriation in the Budget year is made up of depreciation expense,
amortisation expense, makegood expense and audit fees.
277
OOSGG Budget Statements
Programme 1 Deliverables
The deliverables for the primary components of this programme are listed below.
Component 1: Support of the Governor-General
 executive support—includes providing advice to the Governor-General,
planning, implementing and managing Their Excellencies’ forward programme
of engagements, and liaising with representatives of governments, related
authorities, and community groups
 personal support—includes providing support for Their Excellencies and
hospitality services for official functions
 administrative services—includes providing governance advice and
administrative services to OOSGG and managing the Governor-General’s official
residences, including maintenance of property, equipment and grounds.
Component 2: Administration of the Australian Honours and Awards System
 management of the honours and awards system
 providing secretariat support for the Council for the Order of Australia, the
Australian Bravery Decorations Council and the National Emergency Medal
Committee
 undertaking research and preparation of nominations for consideration by the
Australian honours advisory bodies
 contributing to the Australian Government’s promotional activities to increase
awareness of the Australian honours system.
278
OOSGG Budget Statements
Programme 1.1 Key Performance Indicators
Component 1: Support of the Governor-General
 the Governor-General is satisfied with the level of advice and administrative
support provided that enables him to successfully perform official duties
 the Governor-General is satisfied with the management of the households
 the properties are managed in accordance with the requirements of the
Environment Protection and Biodiversity Conservation Act 1999 and government
policies relating to heritage properties, and with due consideration of advice
provided by the National Capital Authority and other relevant authorities.
Component 2: Administration of the Australian Honours and Awards System
 the Order of Australia, the Australian Bravery Decorations and the National
Emergency Medal advisory bodies are satisfied with the quality of research and
administrative support provided
 the Order of Australia, the Australian Bravery Decorations and the National
Emergency Medal advisory bodies are satisfied with processing times for
nominations presented by the Australian Honours and Awards Secretariat
 the Governor-General and other key stakeholders are satisfied with the
timeliness of processing, gazettal and issue of awards by the Australian Honours
and Awards Secretariat
 annual statistics are published on the number of nominations/applications
received and timeliness of submissions to relevant advisory bodies
 activities comply with the regulations for honours and awards, including the
Constitution for the Order of Australia
 medals and insignia meet design specifications.
279
OOSGG Budget Statements
Section 3: Explanatory Tables and Budgeted Financial
Statements
Section 3 presents explanatory tables and budgeted financial statements which provide
a comprehensive snapshot of agency finances for the 2014-15 Budget year. It explains
how budget plans are incorporated into the financial statements and provides further
details of the reconciliation between appropriations and programme expenses,
movements in administered funds, special accounts and Government Indigenous
expenditure.
3.1
EXPLANATORY TABLES
3.1.1 Movement of Administered Funds Between Years
The OOSGG does not have any movement of administered funds between years.
3.1.2 Special Accounts
The OOSGG does not have any special accounts.
3.1.3 Australian Government Indigenous Expenditure
The OOSGG does not have any Indigenous-specific expenses.
280
OOSGG Budget Statements
3.2
BUDGETED FINANCIAL STATEMENTS
3.2.1 Differences in Agency Resourcing and Financial Statements
The agency resourcing statement (Table 1.1) provides a consolidated view of all the
resources available to the agency in 2014-15. This includes equity injections and
appropriations receivable that are yet to be drawn down to cover payables and
provisions on the Balance Sheet. The Income Statement (Table 3.1.1) shows only the
operating appropriation provided in 2014-15.
3.2.2 Analysis of Budgeted Financial Statements
Departmental
Income Statement
The OOSGG is budgeting for a break-even operating result, adjusted for depreciation
and amortisation expense, in 2014-15 and the forward years.
In line with net cash appropriation arrangements that became effective from 2010-11,
revenue from government has been reduced by an amount equal to depreciation and
amortisation expense. Future asset replacements are funded through the departmental
capital budget detailed in Table 3.2.5.
The Comprehensive Income Statement sets out the expected operating results for the
ordinary annual services provided by the OOSGG, which are funded by departmental
appropriations and other revenue.
Balance Sheet
The movement in the OOSGG’s net asset position is principally as a result of the
procurement of replacement infrastructure, plant and equipment assets owned by the
OOSGG. The value of buildings in the balance sheet represents the value of work in
progress of assets being developed under the Vice-Regal Heritage Property Master
Plan.
The OOSGG’s primary liability is accrued employee entitlements.
Administered
Income and expenses administered on behalf of government
The OOSGG will receive administered appropriations of $2.0 million in 2014-15 for the
Governor-General’s salary, for support of the Australian Honours and Awards system
and for administered depreciation.
Assets and liabilities administered on behalf of the government
The value of land and buildings are expected to increase in 2014-15 and the forward
years due to the completion of projects developed under the Vice-Regal Heritage
Property Master Plan.
281
OOSGG Budget Statements
3.2.3 Budgeted Financial Statements Tables
Table 3.2.1 Comprehensive Income Statement (Showing Net Cost of Services) for
the period ended 30 June
Estimated
actual
2013-14
$'000
Budget
estimate
2014-15
$'000
Forward
estimate
2015-16
$'000
Forward
estimate
2016-17
$'000
Forward
estimate
2017-18
$'000
8,299
2,966
385
11,650
8,489
2,949
356
11,794
8,485
2,853
359
11,697
8,485
2,839
353
11,677
8,505
2,940
384
11,829
LESS:
OWN-SOURCE INCOME
Own-source revenue
Rental income
Total own-source revenue
14
14
-
-
-
-
Gains
Sale of assets
Other
Total gains
Total own-source income
12
61
73
87
61
61
61
61
61
61
61
61
61
61
61
61
Net cost of (contribution by)
services
11,563
11,733
11,636
11,616
11,768
Revenue from Government
11,178
11,377*
11,277*
11,263*
11,384*
EXPENSES
Employee benefits
Suppliers
Depreciation and amortisation
Total expenses
Surplus (Deficit) attributable to
the Australian Government
(385)
(356)
(359)
(353)
(384)
Total comprehensive income (loss)
(385)
(356)
(359)
(353)
(384)
Total comprehensive income (loss)
attributable to the Australian
Government
(385)
(356)
(359)
(353)
(384)
2014-15
$'000
2015-16
$'000
2016-17
$'000
2017-18
$'000
Note: Impact of Net Cash Apppropriation Arrangements
2013-14
$'000
Total Comprehensive Income
(loss) less depreciation/amortisation
expenses previously funded through
revenue appropriations.
plus depreciation/amortisation expenses
previously funded through revenue
appropriations1
Total Comprehensive Income
(loss) - as per the Statement of
Comprehensive Income
-
-
-
-
385
356
359
353
384
(385)
(356)
(359)
(353)
(384)
Prepared on Australian Accounting Standards basis.
1
From 2010-11, the Government introduced net cash appropriation arrangements where Bill 1 revenue
appropriations for the depreciation/amortisation expenses of FMA Act agencies were replaced with a
separate capital budget (the Departmental Capital Budget, or DCB) provided through Bill 1 equity
appropriations. For information regarding DCBs, please refer to Table 3.2.5 Departmental Capital Budget
Statement.
282
OOSGG Budget Statements
Table 3.2.2: Budgeted Departmental Balance Sheet (as at 30 June)
Estimated
actual
2013-14
$'000
Budget
estimate
2014-15
$'000
Forward
estimate
2015-16
$'000
Forward
estimate
2016-17
$'000
Forward
estimate
2017-18
$'000
ASSETS
Financial assets
Cash and cash equivalents
Trade and other receivables
Total financial assets
146
4,377
4,523
146
2,247
2,393
146
1,997
2,143
146
2,036
2,182
146
2,065
2,211
Non-financial assets
Land and buildings
Property, plant and equipment
Intangibles
Other non-financial assets
Total non-financial assets
Total assets
1,670
1,145
334
24
3,173
7,696
1,181
343
14
1,538
3,931
1,206
359
34
1,599
3,742
1,242
369
24
1,635
3,817
1,253
378
24
1,655
3,866
438
438
445
445
445
445
445
445
445
445
Provisions
Employee provisions
Total provisions
2,239
2,239
2,331
2,331
2,101
2,101
2,130
2,130
2,159
2,159
Total liabilities
2,677
2,776
2,546
2,575
2,604
Net assets
EQUITY*
Contributed equity
Reserves
Retained surplus (accumulated deficit)
Total Equity
5,019
1,155
1,196
1,242
1,262
3,945
239
835
5,019
437
239
479
1,155
837
239
120
1,196
1,236
239
(233)
1,242
1,640
239
(617)
1,262
LIABILITIES
Payables
Suppliers
Total payables
Prepared on Australian Accounting Standards basis.
*'Equity' is the residual interest in assets after deduction of liabilities.
283
OOSGG Budget Statements
Table 3.2.3: Departmental Statement of Changes in Equity — Summary of
Movement (Budget Year 2014-15)
Retained
earnings
$'000
Opening balance as at 1 July 2014
Balance carried forward from previous period
Adjusted opening balance
835
835
Comprehensive income
Surplus (deficit) for the period
Total comprehensive income
of which:
Attributable to the Australian Government
Transactions with owners
Distributions to owners
Restructuring
Contributions by owners
Departmental Capital Budget (DCBs)
Sub-total transactions with owners
Estimated closing balance
as at 30 June 2015
Closing balance attributable to the
Australian Government
Prepared on Australian Accounting Standards basis.
284
Asset Contributed
revaluation
equity/
reserve
capital
$'000
$'000
Total
equity
$'000
239
239
3,945
3,945
5,019
5,019
(356)
-
-
(356)
(356)
-
-
(356)
(356)
-
-
(356)
-
-
(3,908)
(3,908)
-
-
400
(3,508)
400
(3,508)
479
239
437
1,155
479
239
437
1,155
OOSGG Budget Statements
Table 3.2.4: Budgeted Departmental Statement of Cash Flows
(for the period ended 30 June)
OPERATING ACTIVITIES
Cash received
Appropriations
Sale of goods and rendering of services
Net GST received
Total cash received
Cash used
Employees
Suppliers
Net GST paid
Total cash used
Net cash from (used by)
operating activities
Estimated
actual
2013-14
$'000
Budget
estimate
2014-15
$'000
Forward
estimate
2015-16
$'000
Forward
estimate
2016-17
$'000
Forward
estimate
2017-18
$'000
12,442
14
306
12,762
11,768
263
12,031
11,532
314
11,846
11,220
329
11,549
11,355
375
11,730
8,321
2,885
306
11,512
8,397
2,881
253
11,531
8,715
2,792
339
11,846
8,456
2,778
315
11,549
8,476
2,879
375
11,730
1,250
500
-
-
-
89
89
-
-
-
-
4,252
126
4,378
2,584
55
2,639
341
56
397
344
55
399
294
110
404
(4,289)
(2,639)
(397)
(399)
(404)
3,039
3,039
2,139
2,139
397
397
399
399
404
404
3,039
2,139
397
399
404
-
-
-
-
-
146
146
146
146
146
146
146
146
146
146
INVESTING ACTIVITIES
Cash received
Proceeds from sales of property,
plant and equipment
Total cash received
Cash used
Purchase of property, plant
and equipment
Other
Total cash used
Net cash from (used by)
investing activities
FINANCING ACTIVITIES
Cash received
Contributed equity
Total cash received
Net cash from (used by)
financing activities
Net increase (decrease)
in cash held
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the
end of the reporting period
Prepared on Australian Accounting Standards basis.
285
OOSGG Budget Statements
Table 3.2.5: Departmental Capital Budget Statement
Estimated
actual
2013-14
$'000
NEW CAPITAL APPROPRIATIONS
Capital budget - Bill 1 (DCB)
Total new capital appropriations
Provided for:
Purchase of non-financial assets
Total Items
PURCHASE OF NON-FINANCIAL
ASSETS
Funded by capital appropriations1
Funded by capital appropriation - DCB2
Budget
estimate
2014-15
$'000
Forward
estimate
2015-16
$'000
Forward
estimate
2016-17
$'000
Forward
estimate
2017-18
$'000
367
367
400
400
397
397
399
399
404
404
367
367
400
400
397
397
399
399
404
404
2,568
1,739
-
-
-
471
400
397
399
404
Funded internally from
departmental resources3
TOTAL
1,339
4,378
500
2,639
397
399
404
RECONCILIATION OF CASH
USED TO ACQUIRE ASSETS
TO ASSET MOVEMENT TABLE
Total purchases
Total cash used to acquire assets
4,378
4,378
2,639
2,639
397
397
399
399
404
404
Prepared on Australian Accounting Standards basis.
1
Includes both current and prior Bill 2/4/6 appropriations and special capital appropriations.
2
Does not include annual finance lease costs. Include purchase from current and previous years'
Departmental Capital Budgets (DCBs).
3
Includes the following sources of funding:
- current and prior year Bill 1/3/5 appropriations (excluding amounts from the DCB)
- donations and contributions
- gifts
- internally developed assets
- s31 relevant agency receipts
- proceeds from the sale of assets.
286
OOSGG Budget Statements
Table 3.2.6: Statement of Asset Movements (2014-15)
Asset Category
Buildings
$'000
As at 1 July 2014
Gross book value
Accumulated depreciation/amortisation
and impairment
Opening net book balance
CAPITAL ASSET ADDITIONS
Estimated expenditure on
new or replacement assets
By purchase - appropriation equity1
By purchase - appropriation ordinary
annual services2
Total additions
Other movements
Depreciation/amortisation expense
Disposals3
From disposal of entities or operations
(including restructuring)
Total other movements
Other property,
plant and
equipment
$'000
Computer
software and
intangibles
$'000
Total
$'000
1,670
2,043
926
4,639
1,670
(898)
1,145
(592)
334
(1,490)
3,149
2,239
-
-
2,239
2,239
345
345
55
55
400
2,639
(310)
(46)
(356)
(310)
(46)
(3,909)
(4,265)
-
(3,909)
(3,909)
As at 30 June 2015
Gross book value
Accumulated depreciation/amortisation
and impairment
Closing net book balance
-
2,388
981
3,369
-
(1,208)
1,180
(638)
343
(1,846)
1,523
Prepared on Australian Accounting Standards basis.
1
'Appropriation equity' refers to equity injections or Administered Assets and Liabilities appropriations
provided through Appropriation Bill (No.2) 2014-15, including CDABs.
2
'Appropriation ordinary annual services' refers to funding provided through Appropriation Bill (No.1) 2014-15
for depreciation / amortisation expenses, DCBs or other operational expenses.
3
Net proceeds may be returned to the OPA.
287
OOSGG Budget Statements
Table 3.2.7: Schedule of Budgeted Income and Expenses Administered on
Behalf of Government (for the period ended 30 June)
Estimated
actual
2013-14
$'000
EXPENSES ADMINISTERED ON
BEHALF OF GOVERNMENT
Suppliers
Personal benefits
Depreciation and amortisation
Total expenses administered
on behalf of Government
LESS:
OWN-SOURCE INCOME
Own-source revenue
Non-taxation revenue
Sale of goods and rendering
of services
Total non-taxation revenue
Total own-source revenues
administered on behalf of
Government
Net Cost of (contribution by)
services
Surplus (Deficit)
Total comprehensive income (loss)
Budget
estimate
2014-15
$'000
Forward
estimate
2015-16
$'000
Forward
estimate
2016-17
$'000
Forward
estimate
2017-18
$'000
847
425
644
864
425
710
890
425
796
893
425
747
904
425
728
1,916
1,999
2,111
2,065
2,057
27
27
27
27
27
27
27
27
27
27
27
27
27
27
27
(1,889)
(1,889)
(1,889)
Prepared on Australian Accounting Standards basis.
288
(1,972)
(1,972)
(1,972)
(2,084)
(2,084)
(2,084)
(2,038)
(2,038)
(2,038)
(2,030)
(2,030)
(2,030)
OOSGG Budget Statements
Table 3.2.8: Schedule of Budgeted Assets and Liabilities Administered on Behalf
of Government (as at 30 June)
Estimated
actual
2013-14
$'000
ASSETS
Financial assets
Cash and cash equivalents
Trade and other receivables
Total financial assets
Non-financial assets
Land and buildings
Property, plant and equipment
Inventories
Total non-financial assets
Total assets administered
on behalf of Government
LIABILITIES
Payables
Suppliers
Total payables
Total liabilities administered
on behalf of Government
Net assets/(liabilities)
Budget
estimate
2014-15
$'000
Forward
estimate
2015-16
$'000
Forward
estimate
2016-17
$'000
Forward
estimate
2017-18
$'000
1
8
9
1
8
9
1
8
9
1
8
9
1
8
9
86,969
1,821
1,260
90,050
90,231
1,757
909
92,897
89,497
1,615
586
91,698
88,809
1,556
469
90,834
88,138
1,499
376
90,013
90,059
92,906
91,707
90,843
90,022
2
2
2
2
2
2
2
2
2
2
2
90,057
2
92,904
2
91,705
2
90,841
2
90,020
Prepared on Australian Accounting Standards basis.
289
OOSGG Budget Statements
Table 3.2.9: Schedule of Budgeted Administered Cash Flows
(for the period ended 30 June)
Estimated
actual
2013-14
$'000
OPERATING ACTIVITIES
Cash received
Sales of goods and rendering
of services
Total cash received
Cash used
Personal benefits
Suppliers
Total cash used
Net cash from (used by)
operating activities
Net increase (decrease) in
cash held
Cash and cash equivalents at
beginning of reporting period
Cash from Official Public Account for:
- Appropriations
Total cash from OPA
Cash to Official Public Account for:
- Appropriations
Total cash to OPA
Cash and cash equivalents at end
of reporting period
Budget
estimate
2014-15
$'000
Forward
estimate
2015-16
$'000
Forward
estimate
2016-17
$'000
Forward
estimate
2017-18
$'000
27
27
27
27
27
27
27
27
27
27
425
931
1,356
425
950
1,375
425
980
1,405
425
986
1,411
425
1,004
1,429
(1,329)
(1,348)
(1,378)
(1,384)
(1,402)
(1,329)
(1,348)
(1,378)
(1,384)
(1,402)
1
1
1
1
1
1,356
1,356
1,375
1,375
1,405
1,405
1,411
1,411
1,429
1,429
(27)
(27)
(27)
(27)
(27)
(27)
(27)
(27)
(27)
(27)
1
1
1
1
1
Prepared on Australian Accounting Standards basis.
290
OOSGG Budget Statements
Table 3.2.10: Schedule of Administered Capital Budget Statement
Estimated
actual
2013-14
$'000
Budget
estimate
2014-15
$'000
Forward
estimate
2015-16
$'000
Forward
estimate
2016-17
$'000
Forward
estimate
2017-18
$'000
PURCHASE OF NON-FINANCIAL
ASSETS
Funded internally from
departmental resources1
TOTAL AMOUNT SPENT
2,578
2,578
3,908
3,908
-
-
-
RECONCILIATION OF CASH
USED TO ACQUIRE ASSETS
TO ASSET MOVEMENT TABLE
Total accrual purchases
less s32 / restructuring
Total cash used to acquire assets
2,578
2,578
-
3,908
3,908
-
-
-
-
Prepared on Australian Accounting Standards basis.
1
Includes the following sources of funding:
- current and prior year Bill 1/3/5 appropriations (excluding amounts from the ACB)
- donations and contributions
- gifts
- internally developed assets
- proceeds from the sale of assets.
291
OOSGG Budget Statements
Table 3.2.11: Statement of Administered Asset Movements (2014-15)
Asset Category
As at 1 July 2014
Gross book value
Accumulated depreciation/amortisation
and impairment
Opening net book balance
Land
Buildings
$'000
$'000
Total
$'000
63,000
27,112
2,135
92,247
63,000
(3,143)
23,969
(314)
1,821
(3,457)
88,790
CAPITAL ASSET ADDITIONS
Estimated expenditure on
new or replacement assets
From operations (including restructuring)
Total additions
-
Other movements
Depreciation/amortisation expense
Total other movements
-
As at 30 June 2015
Gross book value
Accumulated depreciation/amortisation
and impairment
Closing net book balance
Other property,
plant and
equipment
$'000
3,908
3,908
(646)
(646)
(64)
(64)
3,908
3,908
(710)
(710)
63,000
31,020
2,135
96,155
63,000
(3,789)
27,231
(378)
1,757
(4,167)
91,988
Prepared on Australian Accounting Standards basis.
292
TORRES STRAIT
REGIONAL AUTHORITY
Agency Resources and Planned
Performance
TORRES STRAIT REGIONAL AUTHORITY
Section 1: Agency Overview and Resources ......................................................... 297
1.1 Strategic Direction ............................................................................................... 297
1.2 Agency Resource Statement ............................................................................... 299
1.3 Budget Measures ................................................................................................ 300
Section 2: Outcomes and Planned Performance ................................................... 301
2.1 Outcomes and Performance Information ............................................................ 301
Section 3: Explanatory Tables and Budgeted Financial Statements................... 311
3.1 Explanatory Tables .............................................................................................. 311
3.2 Budgeted Financial Statements .......................................................................... 312
295
TORRES STRAIT REGIONAL AUTHORITY
Section 1: Agency Overview and Resources
1.1
STRATEGIC DIRECTION STATEMENT
The planned outcome of the Torres Strait Regional Authority (TSRA) is:
 Progress towards closing the gap for Torres Strait Islander and Aboriginal people
living in the Torres Strait Region through development planning, coordination,
sustainable resource management, and preservation and promotion of Indigenous
culture.
The TSRA is a Commonwealth statutory authority which was established in 1994
under the Aboriginal and Torres Strait Islander Commission Act 1989, now known as the
Aboriginal and Torres Strait Islander Act 2005 (ATSI Act). It is the peak Commonwealth
representative body for Torres Strait Islander and Aboriginal people living in the
Torres Strait.
The TSRA also performs separate functions under the Native Title Act 1993 as the
Native Title Representative Body for the Torres Strait Region.
The TSRA is required under s 142D of the ATSI Act to formulate and implement a plan
to guide the progress of the Torres Strait region. This plan, known as the Torres Strait
Development Plan, is updated every four years to be consistent with the term of the
TSRA Board.
In 2013–14 the TSRA finalised the Torres Strait Development Plan 2014–18, the fifth
development plan since the establishment of the TSRA. The plan outlines eight new or
revised TSRA programme components (Economic Development; Fisheries; Culture,
Art and Heritage; Native Title; Environmental Management; Governance and
Leadership; Healthy Communities and Safe Communities) each of which has a
number of desired outcomes and associated benefits. Programme efficiencies are being
derived from the funding allocation.
The Development Plan and its programme components have been informed and
driven by the Torres Strait and Northern Peninsula Area Regional Plan 2009–29 and
the goals and aspirations of the residents of the Torres Strait. The new TSRA vision,
which is shared by both the Regional Plan and the Development Plan, is:
 ‘Empowering our people, in our decision, in our culture, for our future’
 ‘Ngalpun yangu kaaba woeydhay, a ngalpun muruygaw danalagan mabaygal kunakan
palayk, bathayngaka’ (KALA LAGAU YA)
297
TSRA Budget Statements
 ‘Buaigiz kelar obaiswerare, merbi mir apuge mena obakedi, muige merbi areribi tonarge, ko
merbi keub kerkerem’ (MERIAM MIR)
 ‘Ngalpan moebaygal thoepoeriwoeyamoeyn, ngalpan ya kuduthoeraynu,
igililmaypa, sepa setha wara goeygil sey boey wagel’ (KALA KAWAU YA).
ngalpan
The Development Plan has also been designed to align with the COAG Building
Blocks and to contribute to the Indigenous-specific outcomes of the national
partnership agreements as outlined in the National Indigenous Reform Agreement.
A key area of externally focused activity for the TSRA in 2014–15 will be continuing to
drive the regional planning processes, including improving the integration of service
delivery between governments at all levels working in the region. The TSRA will also
dedicate considerable time to engaging with local stakeholders, informing them of the
new Development Plan and associated changes, and supporting their adaptation to the
new environment.
The Torres Strait Ranger Project will continue over the coming year. This dedicated
ranger project will play a central role in the TSRA’s Environmental Management
Programme component, as it will be used to deliver a variety of land and sea
management activities identified in the Land and Sea Management Strategy, the
Regional Investment Strategy for the Torres Strait, and the Marine Turtle and Dugong
Management Plan for each of the participating communities.
The TSRA will continue improve the region’s ability to adapt to climate change,
particularly sea level rise. Implementation of the Torres Strait Climate Change Strategy
will identify and implement appropriate adaptation strategies and actions that will
help to reduce climate change risks and build regional and community resilience. In
parallel we will monitor the changes around us and continue to build our
understanding to inform a flexible and adaptive approach to responding to future
uncertainties.
The TSRA will work closely with primary health care stakeholders to enhance the
efficacy and effectiveness of National Health Reforms in 2014–15. Through its Healthy
Communities Programme, the TSRA will also monitor and provide strategic policy
advice regarding health service delivery in the region and administer grant funding to
regional projects that address social determinants that positively impact on health
outcomes.
The Major Infrastructure Programme (MIP), begun in 1998 as a bilateral commitment
with the Queensland Government to deliver essential and sustainable environmental
health infrastructure in the Torres Strait region, has also been extended into MIP Stage
5. Key deliverables include water supply and reticulation; sanitation and wastewater;
community roads and drainage; serviced housing lots; and asset sustainability. In
2014-15, and in addition to MIP Stage 5, the Australian Government and Queensland
Government have committed to deliver coastal management infrastructure to protect
existing community infrastructure from rising seawater.
298
TSRA Budget Statements
1.2
AGENCY RESOURCE STATEMENT
Table 1.1 shows the total resources from all sources. The table summarises how
resources will be applied by outcome and by administered and departmental
classification.
Table 1.1: TSRA Resource Statement – Budget Estimates for 2014–15 as at
Budget May 2014
Source
Opening balance/Reserves at bank
Estimate
of prior
year amounts
available in
2014-15
$'000
+
Proposed
at Budget
2014-15
$'000
=
Total
estimate
Actual
available
appropriation
2014-15
$'000
2013-14
$'000
6,711
-
6,711
-
REVENUE FROM GOVERNMENT
Ordinary annual services1
Outcome 1
Total ordinary annual services
Total funds from Government
FUNDS FROM OTHER SOURCES
Interest
Sale of goods and services
Other
Total
Total net resourcing for agency
-
48,159
48,159
49,645
6,711
48,159
54,870
49,645
6,711
48,159
54,870
49,645
6,711
1,462
240
13,247
14,949
63,108
1,462
240
13,247
14,949
69,819
1,312
240
12,411
13,963
63,608
All figures are GST exclusive.
TSRA is not directly appropriated as it is a CAC Act Body. Appropriations are made to FMA Agency PM&C
which are then paid to TSRA and are considered ‘departmental’ for all purposes.
1
Appropriation Bill (No.1) 2014-15.
299
TSRA Budget Statements
1.3
BUDGET MEASURES
Budget measures relating to TSRA are detailed in MYEFO and are summarised below.
Table 1.2: TSRA 2014–15 Budget Measures
MYEFO Measures Not Previously Reported in a Portfolio Statement
Programme
Expense measures
Efficiency Dividend — a further temporary
increase of 0.25 per cent
Departmental expenses
Total
2013-14
$'000
2014-15
$'000
2015-16
$'000
2016-17
$'000
2017-18
$'000
-
(95)
(95)
(189)
(189)
(284)
(284)
-
(1,177)
(1,177)
(904)
(904)
(802)
(802)
(613)
(613)
-
(1,272)
(1,272)
(1,093)
(1,093)
(1,086)
(1,086)
(613)
(613)
1.1
-
Indigenous Affairs Programmes —
rationalisation1
Departmental expenses
Total
1.1
Total expense measures
Departmental
Total
Prepared on a Government Finance Statistics (fiscal) basis.
Funding for the TSRA’s Grants Programme will reduce by 4.5 per cent from 2014-15. This reduction is
broadly in line with the savings to be achieved as part of the Indigenous Programme Consolidation. The
TSRA measure would save $1.2 million in 2014-15, reducing over the forward estimates in line with
budgeted grant expenditure. Total savings over the four years from 1 July 2014 is $3.5 million.
1
300
TSRA Budget Statements
Section 2: Outcomes and Planned Performance
2.1
OUTCOMES AND PERFORMANCE INFORMATION
Government outcomes are the intended results, impacts or consequences of actions by
Government on the Australian community. Commonwealth programmes are the
primary vehicle by which government agencies achieve the intended results of their
outcome statements. Agencies are required to identify the programmes which
contribute to government outcomes over the Budget and forward years.
Each outcome is described below together with its related programmes, specifying the
performance indicators and targets used to assess and monitor the performance of the
Torres Strait Regional Authority in achieving government outcomes.
Outcome 1: Progress towards Closing the Gap for Torres Strait Islander and
Aboriginal people living in the Torres Strait Region through development
planning, coordination, sustainable resource management, and preservation
and promotion of Indigenous culture.
Outcome 1 Strategy
The TSRA is focused on the delivery of outcomes and realisation of measurable
benefits. The programme components contribute to the achievement of the goals of the
Torres Strait and Northern Peninsula Area Regional Plan 2009–2029 and to closing the
gap in Indigenous disadvantage.
The TSRA has completed a new Development Plan 2014-18. The new Development
Plan will be effective 1 July 2014.
The Development Plan is an action plan with a focus on delivering outcomes and
benefits for Torres Strait Islander and Aboriginal people of the Torres Strait region.
This and subsequent development plans will contribute to achieving the outcome
statement for the TSRA.
The Development Plan contains both short and long-term objectives, some of which
will not be achieved fully within the four-year life of the Plan. The phasing of
objectives reflects the Australian Government’s long-term goals of generational change
and impact.
301
TSRA Budget Statements
The Programme 1 objective is currently delivered through eight component
programmes, which are derived from the Torres Strait Development Plan 2014–2018.
These are:

Economic Development

Fisheries

Culture, Art and Heritage

Native Title

Environmental Management

Governance and Leadership

Healthy Communities

Safe Communities.
Outcome Expense Statement
Table 2.1 provides an overview of the total expenses for Outcome 1, by programme.
Table 2.1: Budgeted Expenses for Outcome 1
Outcome 1: Progress towards Closing the Gap for Torres
Strait Islander and Aboriginal people living in the Torres
Strait Region through development planning,
coordination, sustainable resource management, and
preservation and promotion of Indigenous culture.
Programme 1.1: Torres Strait Regional Development
Revenue from Government
Ordinary annual services (Appropriation Bill No. 1)
Revenues from other independent sources
Total for Programme 1.1
Outcome 1 Totals by resource type
Revenue from Government
Ordinary annual services (Appropriation Bill No. 1)
Revenues from other independent sources
2013-14
Estimated
actual
expenses
$'000
2014-15
Estimated
expenses
$'000
49,645
13,963
48,159
14,949
63,608
63,108
49,645
13,963
48,159
14,949
Total expenses for Outcome 1
63,608
63,108
Average Staffing Level (number)
2013-14
137
2014-15
146
302
TSRA Budget Statements
Contributions to Outcome 1
Programme 1.1: Torres Strait Regional Development
Programme 1.1 Objective
In November 2008, the Torres Strait Regional Authority Board endorsed the
following Outcome statement: ‘Progress towards closing the gap for Torres Strait
Islander and Aboriginal people living in the Torres Strait Region through
development planning, coordination, sustainable resource management, and
preservation and promotion of Indigenous culture’.
Programme Component Objectives
Economic Development
The TSRA’s Economic Development Programme will contribute to regional,
community and individual economic improvement by taking the lead as whole of
region economic development solution broker.
The programme aims are to:
 stimulate economic development across the region
 advance business skills and align training initiatives with regional employment
opportunities
 advance Torres Strait Islander and Aboriginal ownership and management of
businesses in the region.
Fisheries
The aim of the Fisheries Programme is to increase wealth in the region through
commercially viable businesses and employment in the fishing industry, while
ensuring the ecologically sustainable management of fishery resources.
The programme aims are to:
 provide greater access for Torres Strait Islander and Aboriginal people to the
region’s commercial fisheries towards attaining a 100% share
 increase commercially viable businesses in the fishing industry that are Torres
Strait Islander and Aboriginal owned and/or operated
 deliver initiatives to increase capability and capacity of Torres Strait Islander and
Aboriginal people to utilise the region’s commercial fisheries resources
 ensure that the region’s fisheries resources are sustainably managed
 ensure that Torres Strait Islander and Aboriginal people are engaged in the
management of the region’s fisheries resources.
303
TSRA Budget Statements
Programme Component Objectives (continued)
Culture, Art and Heritage
The TSRA recognises that Culture, Art and Heritage are central pillars of regional
development, and will protect, promote, revitalise and maintain Torres Strait
Islander and Aboriginal traditions and cultural heritage.
The programme aims are to:
 protect culturally significant sites and artefacts to ensure longevity
 revitalise and maintain traditional cultural practices (art, dance, language,
storytelling and songs) among communities
 ensure the protection of traditional knowledge, intellectual property and
copyright
 underpin services and management practices with cultural values and protocols.
Native Title Programme
To provide high-quality and culturally appropriate professional services to Native
Title Holders and claimants through consultation with and effectively representing
Traditional Owners in the Torres Strait region in the performance of our functions
under the Native Title Act 1993(Cth).
The Native Title programme will continue to facilitate the securing of legal
recognition of Native Title to land and waters in the Torres Strait, and the proper
regard for Native Title rights in relation to all projects affecting Torres Strait land
and waters.
The programme aims are to:
 assist Traditional Owners obtain legal recognition of Native Title over land and
sea in the Torres Strait region
 manage and legally protect Native Title rights
 build the capacity of Native Title Prescribed Bodies Corporate (PBC’s).
Environmental Management
The TSRA recognises that it has a vital role to play, through its Land and Sea
Management unit, to help address and manage the many environmental issues,
challenges and opportunities facing the region and individual communities.
The programme aims are to:
 contribute to supporting the regional goal to protect and preserve the region’s
natural and cultural environmental assets through sustainable management
practices.
304
TSRA Budget Statements
Programme Component Objectives (continued)
Governance and Leadership
The Governance and Leadership Programme will support positive and meaningful
outcomes for people in leadership, communication and governance. The programme
will work towards achieving equality in leadership, as appropriate to Ailan Kastom,
by delivering targeted activities for woman and youth.
The programme aims are to:
 involve Torres Strait Islander and Aboriginal leaders in legislative processes,
policies and priorities
 undertake capacity building for current and future leaders across the region
 support effective regional communication
 coordinate the integration of the delivery of government services to the region
 develop the capacity of PBC’s in the region
 improve the governance and leadership capacity of the Torres Strait Regional
Authority.
Healthy Communities
The TSRA’s Healthy Communities Programme will monitor and provide strategic
policy advice to the Torres Strait Health Partnership and Integrated Service delivery
partners to ensure that advances are being made in primary and preventative health
care. The TSRA will play a more direct role through the provision of funding and
support to preventative health initiatives that will improve a healthy lifestyle and
will link with the Environmental Management Programme to support local fresh
food production. Additionally, the TSRA will be directly involved in making
housing more affordable for Indigenous people in the region.
The programme aims are to:
 seek to influence policy for all health programmes across all tiers of government
 monitor health services and health initiatives across the Torres Strait and
Northern Peninsular and provide strategic policy advice (via Integrated Service
Delivery arrangements)
 direct support targeting healthy lifestyles, including improving availability of
fresh produce and healthy food options and encouraging people to undertake
healthy activities
 provide some direct support for home ownership and other specific housing
initiatives when linked to economic development, including small enterprise and
trade skills development and or environmental management in terms of water
management and renewable energies
 engage with Traditional Owners regarding negotiations for land release for
housing development, where appropriate.
305
TSRA Budget Statements
Programme Component Objectives (continued)
Safe Communities
The Safe Communities Programme recognises that if people are not safe in their
homes and communities it is difficult to implement economic development, healthy
lifestyles, environmental management and other initiatives. The Safe Communities
Programme will influence policy and monitor service delivery by other agencies.
The TSRA will undertake a leading and supporting role through Integrated Service
Delivery forums, contributing to the development and monitoring of standards for
the provision of social services in the region. The programme will also contribute
directly to some public and community safety and community accessibility
outcomes through funding and support for targeted initiatives.
The programme aims to:
 contribute to the development of standards for the provision of all mainstream
social services and facilities, including emergency response services, through
engagement with responsible agencies
 undertaking a policy advocacy, monitoring and supporting role with respect to
mainstream services, advocating and acting as a solution broker on behalf of
communities and the region, using Integrated Service Delivery forums
 provide direct funding and resource support for some social support services,
infrastructure, facilities and equipment that contribute to improved safety and
accessibility for communities and families (the TSRA will not provide
mainstream social or community services).
Programme 1.1 Expenses
The budgeted expenditure set out in the tables of this report includes all the costs
associated with the programme deliverables listed in this report.
Programme support
Total programme expenses
2013-14
Revised
budget
$'000
63,608
63,608
306
2014-15
Budget
$'000
63,108
63,108
2015-16
Forward
year 1
$'000
55,584
55,584
2016-17
Forward
year 2
$'000
51,823
51,823
2017-18
Forward
year 3
$'000
48,406
48,406
TSRA Budget Statements
Programme 1.1 Deliverables
The TSRA’s Development Plan 2014-2018 focuses on service delivery to the Torres
Strait Islands and the Northern Peninsular Area. The outcomes, benefits and targets
in the Development Plan are delivered through the TSRA’s annual Corporate Plans,
and achievements reported in the TSRA’s annual reports to parliament.
The TSRA’s Development Plan 2014-2018 is also aligned with the Torres Strait
Northern Peninsula Area Regional Plan 2009-2029 (Regional Plan).
The TSRA will deliver eight programmes that contribute to the regional goals
expressed in the Torres Strait and Northern Peninsula Area Regional Plan to achieve
the targets for which the TSRA has a regional policy or service delivery role,
outlined in the National Indigenous Reform Agenda.
The programme outcomes are all congruent with TSRA’s outcome statement.
Performance indicators have been identified to show whether progress is being
made in achieving outcomes and benefits. The benefits are measurable and
meaningful improvements that result from outcomes. Deliverables for each
programme component as at the publication date of these Portfolio Budget
Statements are:
Economic Development
 increased capability of Torres Strait Islander and Aboriginal People in the region
to manage commercially viable businesses
 improved access to capital and other opportunities to finance commercially
viable businesses
 increased number of commercially viable businesses owned and or operated by
Torres Strait and Aboriginal People in the region
 improved wealth of Torres Strait Islander and Aboriginal People in the region.
Fisheries
 a commercially viable fishing industry which is 100 per cent owned by Torres
Strait Islander and Aboriginal people
 improved wealth of Torres Strait Islander and Aboriginal people of the region
 sustainable management of fisheries resources.
307
TSRA Budget Statements
Culture, Art and Heritage
 an active and sustainable arts and craft industry in the region
 cultural values and protocols are integrated into service planning and
management practice
 the unique cultural heritage and histories of the region are preserved, maintained
and promoted
 strong, supported and respected Ailan Kastom
 the copyright, intellectual property and traditional knowledge of Torres Strait
Islander and Aboriginal people in the region are protected.
Native Title
 successfully negotiated Future Acts and Indigenous Land Use Agreements
 Native Title Claims are successfully determined
 PBC’s understand and meet their responsibilities under the Native Title Act
 changes to the Native Title and Fisheries legislation which recognise the
commercial rights as part of Native Title rights of Traditional Owners under the
Torres Strait Sea Claim Part A determination.
Environmental Management
 strengthened sustainable use, protection and management of natural and cultural
resources
 improved community adaptation to climate change impacts, including sea level
rise
 increased uptake of renewable energy for the Torres Strait
 support community sustainable horticulture.
Governance and Leadership
 implementation of the National Indigenous Reform Agreement service delivery
principles
 appropriate Torres Strait Islander and Aboriginal participation in decisionmaking
 improved communication, cultural competence and service delivery within a
community development framework across governments
 strong Torres Strait Islander and Aboriginal organisational leadership and
governance
 strong PBC leadership and governance.
308
TSRA Budget Statements
Healthy Communities
 secure Whole-of-Government investment for infrastructure to support healthy
homes and healthy living environments
 policies support community managed delivery of primary and public health care
services and are based on regional needs and priorities
 improved access to affordable fresh and healthy foods
 more active and healthy communities
 affordable home ownership available across the region.
Safe Communities
 effective community and social services support
 families and individuals are safe in home and community
 public areas are safe and accessible for community members
 communities have access to appropriate transport infrastructure.
309
TSRA Budget Statements
Programme 1.1 Key Performance Indicators
The Development Plan articulates all the TSRA’s performance measures; the
purpose of this table is to list only key performance indicators:
 increase in the number of Torres Strait Islander and Aboriginal owned
commercially viable businesses
 increased availability of approved business training
 increases in catches by Torres Strait and Aboriginal fishes relative to total
allowable catch, strengthening claims for increased ownership
 increase in the number of emerging and professionally active artists and cultural
practitioners that have access to information and support to ensure copyright
and intellectual property rights
 number of Native Title determinations claims successfully determined
 number of Indigenous Land Use Agreements (ILUA) that have compensation or
other benefits as part of ILUA terms
 number of endorsed community based management plans for the natural and
cultural resources of the region being actively implemented
 increase the level of engagement of elected Torres Strait Islander and Aboriginal
leaders in policy development and decision-making
 number of PBCs that achieve Office of the Registrar of Indigenous Corporations
(ORIC) compliance as at 31 December each year
 increased investment into new and existing regional environmental health
infrastructure.
310
TSRA Budget Statements
Section 3: Explanatory Tables and Budgeted Financial
Statements
Section 3 presents explanatory tables and budgeted financial statements that provide a
comprehensive snapshot of agency finances for the 2014–15 Budget year. It explains
how budget plans are incorporated into the financial statements and provides further
details of the reconciliation between appropriations and programme expenses,
movements in administered funds, special accounts and Government Indigenous
expenditure.
3.1
EXPLANATORY TABLES
3.1.1 Movement of Administered Funds Between Years
TSRA does not have any administered funds.
3.1.2 Special Accounts
The TSRA does not have any special accounts.
3.1.3 Australian Government Indigenous Expenditure
Table 3.1.3: Australian Government Indigenous Expenditure (AGIE)
Appropriations
Bill
Total
No. 1
approp
$'000
$'000
Other
Total
$'000
$'000
Torres Strait Regional Authority
Outcome 1
Departmental 2014-15
Departmental 2013-14
Total outcome 2014-15
Total outcome 2013-14
49,336
49,645
49,336
49,645
49,336
49,645
49,336
49,645
14,949
13,963
14,949
13,963
64,285
63,608
64,285
63,608
Total departmental 2014-15
Total departmental 2013-14
49,336
49,645
49,336
49,645
14,949
13,963
64,285
63,608
Total AGIE 2014-15
Total AGIE 2013-14
49,336
49,645
49,336
49,645
14,949
13,963
64,285
63,608
311
Programme
1.1
1.1
TSRA Budget Statements
3.2
BUDGETED FINANCIAL STATEMENTS
3.2.1 Differences in Agency Resourcing and Financial Statements
There are no differences between TSRA’s Portfolio Budget Statements and the
Commonwealth’s Budget Management System.
3.2.2 Analysis of Budgeted Financial Statements
Departmental
Budgeted Comprehensive Income Statement
This statement provides a picture of the expected financial results for the TSRA by
identifying full accrual expenses and revenues, which highlights whether the TSRA is
operating at a sustainable level. TSRA is forecasting income of $63.1 million and
expenditure of $63.1 million resulting in a breakeven result for the 2014–15 fiscal year.
Budgeted Departmental Balance Sheet
This statement shows the financial position of the TSRA. It helps decision-makers to
track the management of assets, liabilities and equity. TSRA’s forecast Balance Sheet
for the fiscal year ending June 2015 shows TSRA with total assets of $80.1 million and
liabilities of $10.6 million, resulting in a net asset position of $69.6 million.
Budgeted Departmental Statement of Cash Flows
The budgeted cash flows, as reflected in the statement of cash flows, provide
important information on the extent and nature of cash flows by categorising them into
expected cash flows from operating activities, investing activities and financing
activities.
Predicted departmental cash flows have been adjusted to reflect the anticipated impact
on cash after taking into account the forecast movements in the Balance Sheet and
Comprehensive Income Statement. The agency is forecasting a favourable cash
position of $4.6 million for the fiscal year ending June 2015. The favourable cash
position is due to the timing across fiscal years between receipt of income and
programme expenditure commitments.
312
TSRA Budget Statements
3.2.3 Budgeted Financial Statements Tables
Table 3.2.1: Comprehensive Income Statement (Showing Net Cost of Services)
(for the period ended 30 June)
Estimated
actual
2013-14
$'000
Budget
estimate
2014-15
$'000
Forward
estimate
2015-16
$'000
Forward
estimate
2016-17
$'000
Forward
estimate
2017-18
$'000
EXPENSES
Employee benefits
Suppliers
Grants
Depreciation and amortisation
Finance costs
Total expenses
15,095
21,247
26,366
900
63,608
15,545
21,524
24,989
900
150
63,108
16,008
19,360
19,175
891
150
55,584
16,486
17,299
17,013
875
150
51,823
16,978
17,404
12,999
875
150
48,406
LESS:
OWN-SOURCE INCOME
Own-source revenue
Sale of goods and rendering of services
Interest
Other
Total own-source revenue
Total own-source income
240
1,312
12,411
13,963
13,963
240
1,462
13,247
14,949
14,949
240
1,462
9,730
11,432
11,432
240
1,462
9,889
11,591
11,591
240
1,462
10,052
11,754
11,754
Net cost of services
49,645
48,159
44,152
40,232
36,652
Revenue from Government
49,645
48,159
44,152
40,232
36,652
Surplus attributable to
the Australian Government
-
-
-
-
-
Total comprehensive income
attributable to the Australian
Government
-
-
-
-
-
Prepared on Australian Accounting Standards basis.
313
TSRA Budget Statements
Table 3.2.2: Budgeted Departmental Balance Sheet (as at 30 June)
Estimated
actual
2013-14
$'000
Budget
estimate
2014-15
$'000
Forward
estimate
2015-16
$'000
Forward
estimate
2016-17
$'000
Forward
estimate
2017-18
$'000
ASSETS
Financial assets
Cash and cash equivalents
Trade and other receivables
Other investments
Total financial assets
6,711
8,055
29,800
44,566
4,611
8,055
22,200
34,866
152
8,055
18,200
26,407
277
8,055
17,200
25,532
302
8,055
16,200
24,557
Non-financial assets
Land and buildings
Property, plant and equipment
Heritage and Cultural
Total non-financial assets
Total assets
33,776
1,745
60
35,581
80,147
43,326
1,895
60
45,281
80,147
51,783
1,897
60
53,740
80,147
52,652
1,903
60
54,615
80,147
53,621
1,909
60
55,590
80,147
LIABILITIES
Payables
Suppliers
Grants
Other payables
Total payables
1,314
1,828
4,177
7,319
1,314
1,828
4,177
7,319
1,314
1,828
4,177
7,319
1,314
1,828
4,177
7,319
1,314
1,828
4,177
7,319
Provisions
Employee provisions
Total provisions
3,253
3,253
3,253
3,253
3,253
3,253
3,253
3,253
3,253
3,253
Total liabilities
10,572
10,572
10,572
10,572
10,572
Net assets
EQUITY*
Parent entity interest
Contributed equity
Reserves
Retained surplus
Total parent entity interest
69,575
69,575
69,575
69,575
69,575
32
13,678
55,865
69,575
32
13,678
55,865
69,575
32
13,678
55,865
69,575
32
13,678
55,865
69,575
32
13,678
55,865
69,575
Total Equity
69,575
69,575
69,575
69,575
69,575
Prepared on Australian Accounting Standards basis.
*’Equity’ is the residual interest in assets after deduction of liabilities.
314
TSRA Budget Statements
Table 3.2.3: Departmental Statement of Changes in Equity – Summary of
Movement (Budget Year 2014–15)
Retained
earnings
$'000
Opening balance as at 1 July 2014
Balance carried forward from
previous period
Adjusted opening balance
Asset Contributed
revaluation
equity/
reserve
capital
$'000
$'000
Total
equity
$'000
55,865
55,865
13,678
13,678
32
32
69,575
69,575
Comprehensive income
Surplus (deficit) for the period
-
-
-
-
Total comprehensive income
-
-
-
-
55,865
13,678
32
69,575
55,865
13,678
32
69,575
Estimated closing balance
as at 30 June 2015
Closing balance attributable to the
Australian Government
Prepared on Australian Accounting Standards basis.
315
TSRA Budget Statements
Table 3.2.4: Budgeted Departmental Statement of Cash Flows
(for the period ended 30 June)
Estimated
actual
2013-14
$'000
OPERATING ACTIVITIES
Cash received
Appropriations
Sale of goods and rendering of services
Interest
Other
Total cash received
Cash used
Employees
Suppliers
Other
Total cash used
Net cash from
operating activities
INVESTING ACTIVITIES
Cash received
Investments
Other
Total cash received
Cash used
Purchase of property, plant
and equipment
Other - Loans
Total cash used
Net cash from (used by)
investing activities
Net increase (decrease)
in cash held
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the
end of the reporting period
Budget
estimate
2014-15
$'000
Forward
estimate
2015-16
$'000
Forward
estimate
2016-17
$'000
Forward
estimate
2017-18
$'000
49,645
240
1,312
12,411
63,608
48,159
240
1,312
13,247
62,958
44,152
240
1,312
9,730
55,434
40,232
240
1,312
9,889
51,673
36,652
240
1,312
10,052
48,256
15,095
21,247
26,366
62,708
15,545
21,524
25,139
62,208
16,008
19,360
19,325
54,693
16,486
17,299
17,163
50,948
16,978
17,404
13,149
47,531
900
750
741
725
725
7,000
7,000
7,600
600
8,200
4,000
600
4,600
1,000
600
1,600
1,000
600
1,600
2,665
2,665
10,600
450
11,050
9,350
450
9,800
1,750
450
2,200
1,850
450
2,300
4,335
(2,850)
(5,200)
(600)
(700)
5,235
(2,100)
(4,459)
125
25
1,476
6,711
4,611
152
277
6,711
4,611
152
277
302
Prepared on Australian Accounting Standards basis.
316
TSRA Budget Statements
Table 3.2.5: Departmental Capital Budget Statement
Estimated
actual
2013-14
$'000
PURCHASE OF NON-FINANCIAL
ASSETS
Funded internally from
departmental resources1
Budget
estimate
2014-15
$'000
Forward
estimate
2015-16
$'000
Forward
estimate
2016-17
$'000
Forward
estimate
2017-18
$'000
TOTAL
2,665
2,665
10,600
10,600
9,350
9,350
1,750
1,750
1,850
1,850
RECONCILIATION OF CASH
USED TO ACQUIRE ASSETS
TO ASSET MOVEMENT TABLE
Total purchases
Total cash used to acquire assets
2,665
2,665
10,600
10,600
9,350
9,350
1,750
1,750
1,850
1,850
Prepared on Australian Accounting Standards basis.
1
Includes the following sources of funding:
- current and prior year Bill 1/3/5 appropriations (excluding amounts from the DCB).
317
TSRA Budget Statements
Table 3.2.6: Statement of Asset Movements (2014–15)
Asset Category
As at 1 July 2014
Gross book value
Accumulated depreciation/amortisation
and impairment
Opening net book balance
Land
Buildings
$'000
$'000
Heritage
and cultural
Total
$'000
$'000
9,360
28,362
4,116
60
41,898
9,360
(3,946)
24,416
(2,371)
1,745
60
(6,317)
35,581
CAPITAL ASSET ADDITIONS
Estimated expenditure on
new or replacement assets
By purchase - internally funded
Total additions
-
Other movements
Depreciation/amortisation expense
Total other movements
-
As at 30 June 2015
Gross book value
Accumulated depreciation/amortisation
and impairment
Closing net book balance
Other property,
plant and
equipment
$'000
10,200
10,200
(650)
(650)
400
400
-
(250)
(250)
-
10,600
10,600
(900)
(900)
9,360
38,562
4,516
60
52,498
9,360
(4,596)
33,966
(2,621)
1,895
60
(7,217)
45,281
Prepared on Australian Accounting Standards basis.
318
TSRA Budget Statements
3.2.4 Notes to the Financial Statements
Basis of Accounting
The budgeted financial statements have been prepared in accordance with the
requirements of the Finance Minister’s Orders issued by the Minister for Finance.
Amounts in these statements are rounded to the nearest thousand dollars.
Departmental Financial Statements and Schedule to Administered Activity
Under the Australian Government’s financial budget and reporting framework,
transactions that agencies control (departmental transactions) are separately budgeted
for and reported on from transactions agencies do not have control over (administered
transactions). This ensures that agencies are only held fully accountable for the
transactions over which they have control.
Departmental items are those assets, liabilities, revenues and expenses in relation to an
agency or authority that are controlled by the agency. Departmental expenses include
employee and supplier expenses and other administrative costs, which are incurred by
the agency in providing its goods and services.
TSRA has no administered items.
Revenue from Government – Ordinary Annual Appropriations
Revenue from government represents amounts appropriated to fund the TSRA’s eight
programme components, actioned in order to deliver the agency’s stated outcome.
Expenses – Depreciation
Property, plant and equipment assets are written-off to their estimated residual values
over their estimated useful lives, using in all cases the straight-line method of
depreciation.
Asset Valuation
All assets are initially recorded at cost. Property, plant and equipment and other
infrastructure assets are periodically revalued at their fair value.
Financial Assets – Cash
This includes notes and coins held and deposits at call.
Financial Assets – Receivables
This includes loans and advances made by the TSRA to clients in the delivery of its
programmes, in addition to amounts owing to the TSRA for delivery of goods and
services. Loans receivable are measured at amortised cost using the effective interest
method less impairment.
319
Glossary
PORTFOLIO GLOSSARY
Term
Meaning
Accumulated
depreciation
The aggregate depreciation recorded for a particular
depreciating asset.
Actual available
appropriation
The actual available appropriation indicates the total
appropriations available to the agency for 2013-14 as at the
2014-15 Budget. It includes all appropriations made
available to the agency in the year (+/- Section 32 transfers,
formal reductions, advance to the Finance Minister and
movements of funds). It is the same as the comparator
figure included in the Appropriation Bills and, as such,
provides a comparison with the appropriation proposed for
the Budget year.
Administered item
Appropriation that consists of funding managed on behalf
of the Commonwealth. This funding is not at the discretion
of the agency and any unspent appropriation is returned to
the Consolidated Revenue Fund (CRF) at the end of the
financial year. An administered item is a component of an
administered programme. It may be a measure but will not
constitute a programme in its own right.
Agency
Generic term for Australian Government General
Government Sector entities, including those governed by
the FMA Act or CAC Act and the High Court of Australia.
Appropriation
An amount of public money parliament authorises for
spending (i.e. funds to be withdrawn from the CRF).
Parliament makes laws for appropriating money under the
Annual Appropriation Acts and under Special
Appropriations, with spending restricted to the purposes in
the Appropriation Acts.
Appropriation Bill
(No. 1)
This Bill proposes spending from the CRF for the ordinary
annual services of government. Bills proposing
appropriations for ordinary annual services cannot be
amended by the Senate under Section 53 of the Australian
Constitution. Once the Bill is passed by Parliament and
given Royal Assent, it becomes Appropriation Act (No. 1).
321
Glossary
Term
Meaning
Appropriation Bill
(No. 2)
This Bill proposes spending from the CRF for purposes
other than the ordinary annual services of government.
Under existing arrangements between the two Houses of
Parliament, this Bill includes appropriation funding of
administered expenses for new outcomes, for payments to
the states and territories, and for departmental or
administered capital. Funding for extensions to existing
programmes can be included in Appropriation Bill (No. 1).
Once the Bill is passed by Parliament and given Royal
Assent, it becomes Appropriation Act (No. 2).
Appropriation Bills
(Nos. 3 and 4)
If an amount provided in Appropriation Acts (Nos. 1 or 2)
is not enough to meet approved expenditure in a financial
year, supplementary appropriation may be sought in
Appropriation Bills (Nos. 3 or 4). Once these Bills are
passed by Parliament and given royal assent, they become
the Appropriation Acts (Nos. 3 and 4). They are also
commonly referred to as the Additional Estimates Bills.
Assets
Future economic benefits controlled by an entity as a result
of past transactions or other past events.
Average staffing level
The average number of employees receiving salary/wages
(or compensation in lieu of salary/wages) over a financial
year, with adjustments for casual and part-time employees
to show the full-time equivalent.
Budget Paper 1 (BP1)
Budget Strategy and Outlook. Provides information and
analysis on Whole-of-Government expenditure and
revenue.
Budget Paper 2 (BP2)
Budget Measures. Provides a description of each budget
measure by portfolio.
Budget Paper 3 (BP3)
Australia’s Federal Relations. Provides information and
analysis on federal funding provided to the states and
territories.
Budget Paper 4 (BP4)
Agency Resourcing. Details total resourcing available to
agencies.
Capital Expenditure
Expenditure by an agency on capital projects; for example,
purchasing a building.
322
Glossary
Term
Meaning
Consolidated Revenue
Fund (CRF)
The principal operating fund from which money is drawn
to pay for the activities of the Government. Section 81 of the
Australian Constitution provides that all revenue raised or
monies received by the Executive Government forms one
consolidated revenue fund from which appropriations are
made for the purposes of the Australian Government.
Departmental Capital
Budget (DCB)
Net cash appropriation arrangements involve the cessation
of funding for depreciation, amortisation and make good
expenses. Funding for these expenses has been replaced
with a collection development and acquisition budget
(CDAB) for designated collection institutions (DCIs), and
departmental capital budgets (DCBs) for FMA agencies.
Departmental item
Resources (assets, liabilities, revenues and expenses) that
agency chief executive officers control directly. This
includes outsourced activities funded and controlled by the
agency. Examples of departmental items include agency
running costs, accrued employee entitlements and net
appropriations. A departmental item is a component of a
departmental programme.
Depreciation
Apportionment of an asset’s capital value as an expense
over its estimated useful life to take account of normal
usage, obsolescence, or the passage of time.
Equity or net assets
Residual interest in the assets of an entity after deduction of
its liabilities.
Equity
A department or agency under the Financial Management
and Accountability Act 1997 (FMA Act), a company or
authority under the Commonwealth Authorities and
Companies Act 1997 (CAC Act) or any other Commonwealth
statutory authority.
Estimated actual
expenses
Details of the current year’s estimated final figures as
included in the Budget documentation. As the Budget is
released in May each year, but the financial year does not
close off until 30 June, the current year numbers that are
used for comparison with Budget amounts can only be
estimates.
323
Glossary
Term
Meaning
Expenditure
Spending money from the Consolidated Revenue Fund or a
notional payment to an FMA agency.
Expense
Decreases in economic benefits in the form of outflows or
depletions of assets or incurrence of liabilities that result in
decreases in equity, other than those relating to
distributions to equity participants.
Expenses not
requiring
appropriation in the
Budget year
Expenses not involving a cash flow impact are not included
within the calculation of an appropriation. An example of
such an event is goods or services received free of charge
that are then expensed; for example, ANAO audit services.
The ANAO does not charge for audit services; however, the
expense must be recognised. Similarly, bad debts are
recognised as an expense but are not recognised for the
purpose of calculating appropriation amounts to be sought
from Parliament.
Financial Management
and Accountability Act
1997 (FMA Act)
The FMA Act sets out the financial management,
accountability and audit obligations of agencies (including
departments) that are financially part of the
Commonwealth (and form part of the General Government
Sector).
Forward estimates
period
The three years following the Budget year. For example if
2014-15 is the Budget year, 2015-16 is forward year 1,
2016-17 is forward year 2 and 2017-18 is forward year 3.
This period does not include the current or Budget year.
Funds
Money that has been appropriated but not drawn from the
Consolidated Revenue Fund.
Income
Total value of resources earned or received to cover the
production of goods and services.
324
Glossary
Term
Meaning
Make good
Make good is the cost of dismantling and removing an item
and restoring the site on which it is located, the obligation
for which an entity incurs either when the item is acquired
or as a consequence of having used the item during a
particular period for purposes other than to produce
inventories during that period. A common example of
make good in the public sector is the restoration of office
premises at the end of a lease period.
Measure
A new policy or savings decision of the government with
financial impacts on the government’s underlying cash
balance, fiscal balance, operating balance, headline cash
balance, net debt or net worth. Such proposals are normally
made in the context of the annual Budget, and are typically
published in Budget Paper No. 2, in the Mid-Year Economic
and Fiscal Outlook (MYEFO).
Mid-Year Economic
and Fiscal Outlook
(MYEFO)
The MYEFO provides an update of the government’s
budget estimates by examining expenses and revenues in
the year to date, as well as provisions for new decisions that
have been taken since the Budget. The report provides
updated information to allow the assessment of the
government’s fiscal performance against the fiscal strategy
set out in its current fiscal strategy statement.
‘Movement of Funds’
between years
A ‘movement of funds’ process is carried out twice each
year in relation to un-expensed administered operating
appropriations. This involves portfolio ministers submitting
requests to the Finance Minister advising of timing changes
to funding requirements. If agreed by the Finance Minister,
there will be an increase in the amount appropriated in
later year(s).
Net cash framework
The net cash framework, implemented from the 2010-11
Budget, replaces funding for depreciation and amortisation
expenses with a departmental capital budget (DCB) and the
funding of make good expenses will cease to be paid in
advance.
325
Glossary
Term
Meaning
The net cash framework applies to general government
sector agencies that receive funding from annual
appropriations directly or via a special account, with the
exception of CAC Act bodies and the Department of
Defence and the Defence Materiel Organisation.
Non-operating
Sometimes called ‘capital’ costs.
Official Public
Account (OPA)
The OPA is the Australian Government’s central bank
account held within the Reserve Bank of Australia. The
OPA reflects the operations of the Consolidated Revenue
Fund.
Operating
Normally related to ongoing, or recurring expenses, such as
paying salaries or making programme payments.
Operating result
Equals income less expenses.
Outcome
An outcome is the intended result, consequence or impact
of government actions on the Australian community.
Portfolio Budget
Statements
Budget related paper detailing budget initiatives and
explanations of appropriations specified by outcome and
programme by each agency within a portfolio.
Programme
Activity that delivers benefits, services or transfer payments
to individuals, industry and/or the community as a whole,
with the aim of achieving the intended result specified in an
outcome statement.
Programme support
The agency running costs allocated to a programme. This is
funded as part of the agency’s departmental
appropriations.
Special account
Balances existing within the CRF that are supported by
standing appropriations (Financial Management and
Accountability Act 1997, s.20 and 21). Special accounts allow
money in the CRF to be acknowledged as set-aside
(hypothecated) for a particular purpose. Amounts credited
to a special account can only be spent for the purposes of
the special account. Special accounts can only be
established by a written determination of the Finance
Minister (s. 20 of the FMA Act) or through an Act of
Parliament (referred to in s. 21 of the FMA Act).
326
Glossary
Term
Meaning
Special appropriations
(including standing
appropriations)
An amount of money appropriated by a particular Act of
Parliament for a specific purpose and number of years. For
special appropriations, the authority to withdraw funds
from the CRF does not generally cease at the end of the
financial year.
Standing appropriations are a subcategory consisting of
ongoing special appropriations – the amount appropriated
will depend on circumstances specified in the legislation.
327
Acronyms
FREQUENTLY USED ACRONYMS
ABA
Aboriginals Benefit Account
AAO
Administrative Arrangements Order
AAS
Australian Accounting Standards
ACB
Administered Capital Budget
AEIFRS
Australian Equivalent to International Financial Reporting Standards
AGD
Attorney General’s Department
AGE
Australian Government Employee
ANAO
Australian National Audit Office
AGIE
Australian Government Indigenous Expenditure
AHL
Aboriginal Hostels Limited
ALCNT
Anindilyakwa Land Council
ALRA
Aboriginal Land Rights (Northern Territory) Act 1976
ATSI Act
Aboriginal and Torres Strait Islander Act 2005
APS
Australian Public Service
APSC
Australian Public Service Commission
CAC Act
Commonwealth Authorities and Companies Act 1997
CDAB
Collection Development and Acquisition Budget
CDB
Collection Development Budget
CDEP
Community Development Employment Projects
CEO
Chief Executive Officer
CLC
Central Land Council
329
Acronyms
COAG
Council of Australian Governments
CRF
Consolidated Revenue Fund
DCB
Departmental Capital Budget
DHS
Department of Human Services
DSS
Department of Social Services
FMA Act
Financial Management and Accountability Act 1997
FOI
Freedom of Information
G20
Group of 20 Meeting
GFS
Government Finance Statistics
IBA
Indigenous Business Australia
ILC
Indigenous Land Corporation
KPI
Key Performance Indicator
MOU
Memorandum of Understanding
MYEFO
Mid-Year Economic and Fiscal Outlook
NADC
National Australia Day Council
NLC
Northern Land Council
OBS
Outback Stores Pty Ltd
OCO
Office of the Commonwealth Ombudsman
OIGIS
Office of the Inspector-General of Intelligence and Security
ONA
Office of National Assessments
OOSGG
Office of the Official Secretary to the Governor-General
OPA
Official Public Account
330
Acronyms
OTM
Other Trust Monies
PM&C
Department of Prime Minister and Cabinet
RJCP
Remote Jobs and Communities Programme
S31
Section 31 Retained Agency Receipts Revenue (FMA Act)
SOETM
Services for Other Entities and Trust Monies special accounts
SOG
Services for Other Government and non-agency bodies accounts
TLC
Tiwi Land Council
TSRA
Torres Strait Regional Authority
WBACC
Wreck Bay Aboriginal Community Council
331