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Financial performance

This section provides a summary of the Commission’s financial performance during 2012–13. 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 2013.

Departmental activities

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

2012–13 income

The Commission’s total income for 2012–13 was $52.24 million. Appropriation from government accounted for 44%, and sales of goods and services for 56%. Table 17 details the Commission’s income since 2010–11.

Table 17: Income, 2010–11 to 2012–13
Source 2010–11

($ million)
2011–12

($ million)
2012–13

($ million)
Appropriation 30.096 25.830 23.201
Non-appropriation 22.460 30.108 29.042
Total 52.556 55.938 52.243

Table 18 details the Commission’s income sources by percentage since 2010–11.

Table 18: Percentage of income by source, 2010–11 to 2012–13
Income source 2010–11

(%)
2011–12

(%)
2012–13

(%)
Appropriation from government 57.3 46.2 44.4
Sales of goods and services 42.6 53.7 55.5
Other income (gains from sale of assets and resources received free of charge) 0.1 0.1 0.1

Appropriation funding

Appropriation funding decreased from $25.83 million in 2011–12 to $23.20 million in 2012–13.This is a decrease of $2.63 million, reflecting the reduction in funding for the Indigenous employment strategy ($1.40 million), the APS reform budget measure ($0.60 million) and the additional efficiency dividend and targeted savings ($0.70 million).

Non-appropriation income

Table 19 shows the non-appropriation income, by source, that the Commission received from the sale of goods and rendering of services in 2011–12 and 2012–13.

Table 19: Non-appropriation income received, by source, 2011–12 and 2012–13
Source 2011–12 Actual

($ million)
2012–13 Estimate

($ million)
2012–13 Actual

($ million)
Development programs 18.2 15.1 17.2
Employment services 3.2 3.0 2.6
International assistance 3.2 2.4 2.7
Workplace relations 1.9 1.7 2.2
Capability reviews 2.1 3.4 3.0
Better practice and evaluation 0.9 1.2 1.2
Other services 0.6 0.2 0.1
Total 30.1 27.0 29.0

Table 20 details the percentage of non-appropriation income, by source, that the Commission received from sales of goods and services in 2011–12 and 2012–13.

Table 20: Percentage of non-appropriation income received, by source, 2011–12 and 2012–13
Source 2011–12 (%) 2012–13 (%)
Development programs 60 59
Employment services 11 9
International assistance 11 9
Workplace relations 6 8
Capability reviews 7 10
Better practice and evaluation 3 4
Other services 2 1

Income from development programs amounted to $17.20 million in 2012–13 ($18.16 million in 2011–12) and made up 33% (32% in 2011–12) of the Commission’s total income from all sources. Income from this source decreased due to a reduction in customer demand for training and development activities. The relative share of total income remained constant as appropriation funding from government also reduced.

The majority of this income is earned in an open market, where agencies have a choice about where they source their services and the level of services required. As demand can be unpredictable, the Commission devotes considerable effort to estimating income and expenditure and to monitoring our financial performance during the year.

In 2012–13, the second year of the five-year funding agreements, the Commission received payments from 55 (57 in 2011–12) Financial Management and Accountability Act 1997 agencies and Commonwealth Authorities and Companies Act 1997 bodies to support the APS reform activities conducted by the Commission. In 2012–13, the funding totalled $4.75 million

(2011–12, $4.49 million) or 27% (25% in 2011–12) of development program income.

Operating result

The Commission’s operating result for 2012–13 was a surplus of $0.43 million (deficit of $0.73 million in 2011–12). This result is mainly due to the close management of the Commission’s budget, while positioning to meet tighter budgetary requirements of government in the future. The Commission absorbed some modest restructuring expenses, primarily through a small number of voluntary redundancies. This surplus also absorbs the impact of net cash funding for departmental capital budgets, where depreciation and amortisation expenses are no longer funded by a revenue appropriation. This amounted to $0.74 million ($0.78 million in 2011–12).

Administered activities

The Commission’s administered activities involve the management or oversight by the Commission, on behalf of the government, of items controlled or incurred by the government.

The Commission’s only administered program is facilitating 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 $59.32 million ($49.60 million in 2011–12). Payments made are reported in Table C of note 18 of the Commission’s financial statements in Part 4.