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Financial performance

This section provides a summary of the Commission's financial performance during 2015–16. Further information is available in Part 4, which includes the independent auditor's report and the Commission's audited financial statements for the year ended 30 June 2016.

Departmental activities

The Commission's departmental activities involve the use of assets, liabilities, income and expenses controlled or incurred by the Commission in its own right.

2015–16 income

The Commission's total income for 2015–16 was $42.5 million. Government appropriation accounted for 48.5%, and sales of goods and services accounted for 51.5%. Table 3 shows the Commission's income since 2013–14. Table 4 details the Commission's income sources by percentage since 2013–14.

Table 3: Income, 2013–14 to 2015–16
Source 2013–14
($ million)
2014–15
($ million)
2015–16
($ million)
Appropriation 22.0 21.6 20.6
Non-appropriation 26.0 22.8 21.9
Total 48.0 44.4 42.5
Table 4: Percentage of income by source, 2013–14 to 2015–16
Source 2013–14 (%) 2014–15 (%) 2015–16 (%)
Appropriation 45.8 48.7 48.5
Non-appropriation 54.2 51.3 51.5

Appropriation funding

Appropriation funding decreased from $21.6 million in 2014–15 to $20.6 million in 2015–16, mainly due to the lapsing of the APS Indigenous Employment Strategy budget measure and the impact of ongoing efficiency dividends.

Non-appropriation income

Table 5 shows the non-appropriation income, by source, that the Commission received from sales of goods and rendering of services in 2014–15 and 2015–16. Table 6 explains the percentage of non-appropriation income, by source, that the Commission received from sales of goods and services in 2014–15 and 2015–16.

Table 5: Non-appropriation income received, by source, 2014–15 and 2015–16
Source 2014–15 actual
($ million)
2015–16 estimate
($ million)
2015–16 actual
($ million)
Learning and development 14.1 13.0 14.0
Employment services 2.0 1.8 1.8
International assistance 2.8 2.9 3.3
Workplace relations 1.3 1.3 1.4
Capability reviews 1.2 0.3 0.3
Better practice and evaluation 1.0 0.9 0.9
Other 0.4 0.1 0.2
Total 22.8 20.3 21.9
Table 6: Percentage of non-appropriation income received, by source, 2014–15 and 2015–16
Source 2014–15 (%) 2015–16 (%)
Learning and development 62 64
Employment services 9 8
International assistance 12 15
Workplace relations 6 7
Capability reviews 5 1
Better practice and evaluation 4 4
Other 2 1

Income from learning and development programs amounted to $14.0 million in 2015–16 and made up 33% of the Commission's total income from all sources. This compares to $14.1 million in 2014–15.

The majority of income is earned in a competitive market, where entities can choose service providers and determine the level of service required. As demand may fluctuate, the Commission has management strategies in place to ensure resources devoted to this area are in line with the revenue earned.

In 2015–16, the final year of the five-year funding agreements, the Commission received payments from 50 government entities to support the APS reform activities it was conducting. This compared to 52 government entities making payments in 2014–15. The funding totalled $4.3 million, or 20% of development program income, compared to $4.6 million, or 33% of development program income, in 2014–15.

Operating result

The Commission recorded an operating deficit of $0.9 million in 2015–16 (2014–15: surplus of $0.05 million). Excluding the impact of unfunded depreciation and amortisation expenses, the Commission's underlying operating surplus was $0.2 million.

The Commission incurred restructuring costs of $1.0 million in 2015–16 (2014–15: $0.1 million). These costs were incurred as part of the Commission's long-term financial strategy to accommodate tightening budgetary requirements in future years.

Administered activities

The Commission's administered program facilitates the payment of parliamentarians' and judicial office holders' remuneration, allowances and entitlements.

The Commission receives special appropriations for the program, and the Department of the Senate, the Department of the House of Representatives and the Attorney-General's Department make all payments.

Payments for the year amounted to $60.2 million (2014–15: $61.3 million). The reduction in payments was due to the impact of the 2016 federal election.

Payments made are reported in note 4.1c of the Commission's financial statements.