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Note 18: Budgetary reports and explanations of major variances

The following tables provide a comparison of the original budget as presented in the 2014-15 Portfolio
Budget Statements (PBS) to the 2014-15 final outcome as presented in accordance with Australian Accounting Standards for the APSC. The Budget is not audited.

Note 18a: Departmental Budgetary Reports

Statement of Comprehensive Income *for the period ended 30 June 2015*
	Actual 2015 $'000	Budget Estimate
	Actual 2015 $'000	Original¹ 2015 $'000	Variance² 2015 $'000
1. The original budgeted financial statement that was first presented to parliament in respect of the reporting period (i.e. from the 2014-15 PBS). 2. Between the actual and original budgeted amounts for 2015. Explanations of major variances are provided further below.
NET COST OF SERVICES
Expenses
Employee benefits	26,270	27,519	(1,249)
Suppliers	16,978	15,772	1,206
Depreciation and amortisation	1,088	1,396	(308)
Finance costs	11	20	(9)
Write-down and impairment of assets	5	-	5
Losses from asset sales	17	-	17
Total expenses	44,369	44,707	(338)
Own-Source Income
Own-source revenue
Sale of goods and rendering of services	22,740	21,894	846
Resources received free of charge	42	41	1
Total own-source revenue	22,782	21,935	847
Total own-source income	22,782	21,935	847
Net cost of services	(21,587)	(22,772)	1,185
Revenue from Government	21,637	21,650	(13)
Surplus/(Deficit)	50	(1,122)	1,172
Total comprehensive income/(loss)	50	(1,122)	1,172

Statement of Financial Position *as at 30 June 2015*
	Actual 2015 $'000	Budget Estimate
	Actual 2015 $'000	Original¹ 2015 $'000	Variance² 2015 $'000
1. The original budgeted financial statement that was first presented to parliament in respect of the reporting period (i.e. from the 2014-15 PBS). 2. Between the actual and original budgeted amounts for 2015. Explanations of major variances are provided further below.
ASSETS
Financial assets
Cash and cash equivalents	1,382	450	932
Trade and other receivables	27,409	26,802	607
Total financial assets	28,791	27,252	1,539
Non-financial assets
Land and buildings	1,764	1,924	(160)
Property, plant and equipment	1,039	993	46
Intangibles	976	1,418	(442)
Inventories	39	55	(16)
Prepayments paid	463	992	(529)
Total non-financial assets	4,281	5,382	(1,101)
Total assets	33,072	32,634	438
LIABILITIES
Payables
Suppliers	5,947	7,447	(1,500)
Prepayments received	7,377	7,436	(59)
Lease incentives	763	768	(5)
Other payables	926	-	926
Total payables	15,013	15,651	(638)
Provisions
Employee provisions	6,876	7,131	(255)
Provision for restoration obligations	401	411	(10)
Total provisions	7,277	7,542	(265)
Total liabilities	22,290	23,193	(903)
Net assets	10,782	9,441	1,341
EQUITY
Contributed equity	791	791	-
Asset revaluation surplus	1,204	1,323	(119)
Retained surplus	8,787	7,327	1,460
Total equity	10,782	9,441	1,341

Statement of Changes in Equity *for the period ended 30 June 2015*
	Retained earnings			Asset revaluation surplus			Contributed equity/capital			Total equity
	Actual 2015 $'000	Budget Estimate		Actual 2015 $'000	Budget Estimate		Actual 2015 $'000	Budget Estimate		Actual 2015 $'000	Budget Estimate
	Actual 2015 $'000	Original¹ 2015 $'000	Variance²2015 $'000	Actual 2015 $'000	Original¹ 2015 $'000	Variance² 2015 $'000	Actual 2015 $'000	Original¹ 2015 $'000	Variance²2015 $'000	Actual 2015 $'000	Original¹ 2015 $'000	Variance² 2015 $'000
1. The original budgeted financial statement that was first presented to parliament in respect of the reporting period (i.e. from the 2014-15 PBS). 2. Between the actual and original budgeted amounts for 2015. Explanations of major variances are provided further below.
Opening balance	8,737	8,449	288	1,204	1,323	(119)	369	369	-	10,310	10,141	169
Comprehensive income
Surplus/(Deficit) for the period	50	(1,122)	1,172	-	-	-	-	-	-	50	(1,122)	1,172
Total comprehensive income	50	(1,122)	1,172	-	-	-	-	-	-	50	(1,122)	1,172
Transactions with owners
Contributions by owners
Departmental capital budget	-	-	-	-	-	-	422	422	-	422	422	-
Total transactions with owners	-	-	-	-	-	-	422	422	-	422	422	-
Closing balance as at 30 June	8,787	7,327	1,460	1,204	1,323	(119)	791	791	-	10,782	9,441	1,341

Cash Flow Statement *for the period ended 30 June 2015*
	Actual 2015 $'000	Budget Estimate
	Actual 2015 $'000	Original¹2015 $'000	Variance² 2015 $'000
1. The original budgeted financial statement that was first presented to parliament in respect of the reporting period (i.e. from the 2014-15 PBS). 2. Between the actual and original budgeted amounts for 2015. Explanations of major variances are provided further below.
Operating Activities
Cash received
Appropriations	21,324	21,650	(326)
Sale of goods and rendering of services	25,378	21,894	3,484
Net GST received	1,297	2,252	(955)
Other cash received	512	-	512
Total cash received	48,511	45,796	2,715
Cash used
Employees	27,327	27,519	(192)
Suppliers	16,290	17,635	(1,345)
Section 74 receipts transferred to OPA	3,350	-	3,350
Other cash used	650	-	650
Total cash used	47,617	45,154	2,463
Net cash from operating activities	894	642	252
Investing Activities
Cash used
Purchase of property, plant and equipment	187	242	(55)
Purchase of intangibles	237	822	(585)
Total cash used	424	1,064	(640)
Net cash used by investing activities	(424)	(1,064)	640
Financing Activities
Cash received
Contributed equity	422	422	-
Total cash received	422	422	-
Net cash from financing activities	422	422	-
Net decrease in cash held	892	-	892
Cash and cash equivalents at the beginning of the reporting period	490	450	40
Cash and cash equivalents at the end of the reporting period	1,382	450	932

Note 18b: Departmental Major Budget Variances for 2015
Explanations of major variances	Affected line items (and statement)
Employee expenses are lower than budget due to lower staffing levels throughout the year, primarily as a result of the government interim recruitment arrangements. Supplier expenses are higher than budget, which is in line with the higher own-source income, where additional resources are required to deliver higher than expected levels of services in a number of business areas, including development and training, panel services and international assistance. The total expenses is on budget. The operating surplus variance is mainly due to lower than budget staffing expenses. This variance is within 3% of the total expenses budget.	Statement of Comprehensive Income: - Employee benefits$1,249,000 lower than budget - Suppliers$1,206,000 higher than budget - Surplus/(Deficit)$1,172,000higher than budget
The balances for both 'Cash' and 'Other payables' are higher than budget due to the first fortnightly pay day for 2015-16 occurring on 1 July. Nine days of payroll is reported as 'Other payables'($867,000), and the equivalent fund was drawn down in advance to the payroll bank account. 'Prepayments paid' is lower than budget as the timing of the Comcare premium payment (about $400,000) has now been changed from June to July. The 'Supplier payables' balance is lower than budget as the accrual for nine days of payroll ($867,000) is reported separately as 'Other payables', but was originally budgeted under 'Supplier payables'.	Statement of Financial Position: - Cash $932,000 higher than budget - Other payables$926,000 higher than budget - Prepayments paid$529,000 lower than budget - Suppliers (payables) $1,500,000 lower than budget
Receipts from customers are higher than budget due to higher levels of 'Sale of goods and rendering of services' revenue ($846,000), combined with a decrease in 'Trade and other receivables' ($2,848,000). Payments to suppliers are lower than budget due to an increase in 'Suppliers payables' ($1,500,000) and lower than planned payments of GST. The level of section 74 receipts transferred to the OPA varies according to the cash levels at the time of receipt. The purchase of intangibles is lower than budget due to a lower level of capital investment, partially as a result of the transition to the Shared Service Centre where there is less requirement to invest in systems.	Cash Flow Statement: - Sale of goods and rendering of services$3,484,000 higher than budget - Suppliers$1,345,000 lower than budget - Section 74 receipts transferred to OPA$3,350,000 higher than budget - Purchase of intangibles$585,000 lower than budget

Note 18c: Administered Budgetary Reports
Administered Schedule of Comprehensive Income *for the period ended 30 June 2015*
	Actual 2015 $'000	Budget Estimate
	Actual 2015 $'000	Original¹ 2015 $'000	Variance² 2015 $'000
1. The original budgeted financial statement that was first presented to parliament in respect of the reporting period (i.e. from the 2014-15 PBS). 2. Between the actual and original budgeted amounts for 2015. Explanations of major variances are provided further below.
NET COST OF SERVICES
Expenses
Employee benefits	61,338	61,963	(625)
Total expenses	61,338	61,963	(625)
Income
Gains
Other gains	2	-	2
Total gains	2	-	2
Total income	2	-	2
Net cost of services	(61,336)	(61,963)	627
Total comprehensive loss	(61,336)	(61,963)	627

Administered Cash Flow Statement *for the period ended 30 June 2015*
	Actual 2015 $'000	Budget Estimate
	Actual 2015 $'000	Original¹ 2015 $'000	Variance² 2015 $'000
1. The original budgeted financial statement that was first presented to parliament in respect of the reporting period (i.e. from the 2014-15 PBS). 2. Between the actual and original budgeted amounts for 2015. Explanations of major variances are provided further below.
Operating Activities
Cash received
Other	2	-	2
Total cash received	2	-	2
Cash used
Employees	61,338	61,963	(625)
Total cash used	61,338	61,963	(625)
Net cash used by operating activities	(61,336)	(61,963)	627
Net decrease in cash held	(61,336)	(61,963)	627
Cash and cash equivalents at the beginning of the reporting period	-	-	-
Cash from Official Public Account Appropriations	61,338	61,963	(625)
Total cash from official public account	61,338	61,963	(625)
Cash to Official Public Account Appropriations	2	-	2
Total cash to official public account	(2)	-	(2)
Cash and cash equivalents at the end of the reporting period	-	-	-

Note 18d: Administered Major Budget Variances for 2015
Explanations of major variances	Affected line items (and statement)
Employee expenses were within 1% of the original budget.	Statement of Comprehensive Income: - Employee benefits $625,000 lower than budget
Payments to employees were within 1% of the original budget.	Cash Flow Statement: - Employees $625,000 lower than budget

Last reviewed:

29 March 2018