Print this pagePM&C received an unqualified audit report on the 2008–09 financial statements from the Australian National Audit Office.
The Department operated within available resources in 2008–09 and ended the year with a modest surplus of $0.7 million. Whilst the bottom line was adversely impacted by a revaluation adjustment to the employee long service leave liability (based upon the long term bond rate at 30 June), this was offset by reduced expenses associated with the preparation for hosting the Pacific Island Forum in August 2009. The Pacific Island Forum was funded on a no-win / no-loss basis and any unspent funds will be returned to the Budget.
Appropriation funding decreased to $102.6 million in 2008–09 from $149.1 million in 2007– 08. The higher funding base in 2007–08 was principally due to the appropriation received for the APEC Taskforce.
Net equity remained reasonably constant with a small increase to $41.0 million at 30 June 2009 from $39.2 million at 30 June 2008 reflecting additional funding provided for secure infrastructure.
| Actual Available Appropriation 2008-09 $'000 |
Payments Made 2008-09 $'000 |
Balance Remaining |
|
|---|---|---|---|
| Ordinary Annual Services1 Departmental |
|||
| Prior year departmental appropriation | 25,104 | 23,010 | 2,094 |
| Departmental appropriation | 99,200 | 77,572 | 21,628 |
| Receipts from independent sources3 | 10,795 | 10,795 | - |
| Total | 135,099 | 111,377 | 23,722 |
| Administered expenses | |||
| Outcome 1 | 10,917 | 9,872 | 1,045 |
| Total | 10,917 | 9,872 | 1,045 |
| Total ordinary annual services | 146,016 | 121,249 | 24,767 |
| Departmental non-operating | |||
| Equity injections | 6,564 | 1,119 | 5,445 |
| Previous years’ outputs | 51 | - | 51 |
| Total | 6,615 | 1,119 | 5,496 |
| Administered non-operating | |||
| Administered assets and liabilities | 294 | 165 | 129 |
| Total | 294 | 165 | 129 |
| Total other services 2 | 6,909 | 1,284 | 5,625 |
| Total available annual appropriations | 152,925 | 122,533 | 30,392 |
| Special appropriations limited by criteria/entitlement | |||
| Allowance to former Governors-General – s. 5, GG Act (A) | 1,361 | 1,361 | - |
| Total special appropriations | 1,361 | 1,361 | - |
| Total appropriations excluding special accounts | 154,286 | 123,894 | 30,392 |
1 Appropriation Bill (No.1) 2008–09
2 Appropriation Bill (No.2) 2008–09
3 Own source Income
| 2008-09 Budget (a) $m |
2008-09 Actual $m |
Variance | |
|---|---|---|---|
| OUTPUT GROUP 1 | |||
| Output Group 1: Economic and Industry | 17.9 | 22.1 | 23% |
| OUTPUT GROUP 2 | |||
| Output Group 2: Social Policy | 19.9 | 23.4 | 18% |
| OUTPUT GROUP 3 | |||
| Output Group 3: International and National Security Policy | 22.7 | 28.0 | 23% |
| Administered Item – National counter-terrorism committee | 0.1 | 0.1 | - |
| OUTPUT GROUP 4 | |||
| Output Group 4: Strategic Policy | 9.3 | 7.9 | –15% |
| OUTPUT GROUP 5 | |||
| Output Group 5: Support Services for Government Operations | 37.1 | 36.1 | –3% |
| Administered item – National Australia Day Council | 3.3 | 3.3 | - |
| Administered item – Compensation and legal expenses | 0.4 | - | –100% |
| Administered item – Prime Minister’s official residences | 1.8 | 1.6 | –11% |
| Administered item – Allowances and support to former Governors-General | 1.6 | 1.5 | –6% |
| Administered item – State occasions and official visits | 3.1 | 3.5 | 13% |
| Total departmental expenses | 107.0 | 117.5 | 10% |
| Less resources available to be used | 4.4 | 15.6 | 255% |
| Plus operating surplus | - | 0.7 | - |
| Net cost to government (appropriation) | 102.6 | 102.6 | - |
| Total annual administered appropriation | 10.3 | 10.0 | –3% |
| Plus other expense | 0.8 | 3.7 | 361% |
| Total administered operating expense | 11.1 | 13.7 | 23% |
| AVERAGE STAFFING LEVELS | 530.0 | 534.2 | 1% |
a) Full year budget, including additional estimates.
b) Budget excludes non-cash items, i.e. interest on the Governors-General pension scheme.
Note: Figures in the table are rounded. Discrepancies between totals and sums of components
are due to rounding.
Departmental Finances
PM&C budgeted to receive and spend $103.6 million of revenue in 2008–09. The total 2008–09 income of $118.2 million is $14.6 million higher than expected. The increase is due to an additional $3.4 million of appropriation funding provided to strengthen capacity within the Department, additional cost recovery for IT services provided to other government agencies and co-funding contributions for research support for counter‑terrorism.
Despite only a small movement in net equity, financial assets and liabilities both decreased considerably in 2008–09. Unused no-win / no-loss funding of $23.3 million from the APEC Taskforce and $0.2 million from the Australia 2020 Summit was returned to the Budget reducing both receivables and provisions.
Our departmental financial assets at 30 June 2009 of $38.1 million are adequate to cover our liabilities of $29.7 million.
| 2008-09 $m |
2007-08 $m |
Change from last year | ||
|---|---|---|---|---|
| Revenue from government | 102.6 | 149.1 | –31% | |
| Other income | 15.6 | 13.8 | +13% | |
| TOTAL INCOME | 118.2 | 162.9 | –27% | |
| Employee expenses | 63.2 | 58.5 | +8% | |
| Supplier expenses | 42.5 | 78.6 | –46% | |
| Other expenses | 11.8 | 14.9 | –21% | |
| TOTAL EXPENSES | 117.5 | 152.0 | –23% | |
| OPERATING RESULT | 0.7 | 10.9 | –100% | |
| Financial assets | A | 38.1 | 54.6 | –30% |
| Non-financial assets | B | 32.6 | 33.0 | –1% |
| Liabilities | C | 29.7 | 48.4 | –39% |
| NET ASSETS = A + B – C | 41.0 | 39.2 | 5% |
Administered Finances
PM&C budgeted for administered expense of $11.1 million in 2008–09, including grants, suppliers and other expenses administered on behalf of the Australian Government. Actual expense for the year was $13.7 million which included personal benefits expense flowing from the recognition of pension benefits for the new Governor-General who commenced office in September 2008.
Non-financial assets have remained constant across years and include the Lodge and Kirribilli House. The former Governors-General pension scheme makes up 96 per cent of the administered liability balance. The provision for the former Governors-General pensions transferred to the Department of Finance and Deregulation on 1 July 2009.
| 2008-09 $m |
2007-08 $m |
Change from last year | |
|---|---|---|---|
| Commission | - | 8.5 | –100% |
| Other income | 0.4 | - | - |
| TOTAL INCOME | 0.4 | 8.5 | –100% |
| Grant expenses | 3.3 | 2.4 | +38% |
| Supplier expenses | 5.3 | 4.9 | +8% |
| Other expenses | 5.1 | 1.9 | +168% |
| TOTAL EXPENSES | 13.7 | 9.2 | +49% |
| Financial assets | 0.7 | 0.7 | - |
| Non-financial assets | 42.2 | 42.0 | - |
| Liabilities | 16.7 | 12.9 | +29% |
Understanding our Financial Statements
The content and format of our financial statements is prescribed by the Minister for Finance and Deregulation under the Financial Management and Accountability Act 1997.
Our departmental statements include:
- An income statement: This shows our income and expenses on an accrual basis.
- A balance sheet: This details our assets and liabilities, as well as the amount of the Australian Government’s equity at year-end.
- A statement of cash flows: This shows where the cash we used during the year came from, and how we used it.
- A statement of changes in equity: This shows how the Australian Government equity we hold has changed due to changes in asset valuations, accumulated surpluses and capital transactions.
Administered items are detailed in the accompanying schedules and further information is provided in the explanatory notes. Information on related topics is available elsewhere in this report as follows:
- Executive remuneration policies (chapter 7),
- Procurement policies and practices (chapter 7),
- Consultancies (chapter 7), and
- Payments for market research and advertising (chapter 6).