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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
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
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
Original1

2015 $'000
Variance22015 $'000 Original1

2015 $'000
Variance2

2015 $'000
Original1

2015 $'000
Variance22015 $'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
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
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
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