Annual Report
2012–13

Key results in 2012–13

PM&C received an unqualified audit report on the 2012–13 financial statements from the Australian National Audit Office.

Departmental finances

Income decreased from $207.9 million in 2011–12 to $148.0 million in 2012–13. This decrease in funding mainly reflects the effect in the prior year of the successful delivery of the Commonwealth Heads of Government Meeting (CHOGM) 2011, the part year impact of hosting the arts and sports function, partially off-set by the increase in activity from the G20 Taskforce.

The Department finished the 2012–13 financial year with a $7.6 million deficit. After removing the $7.9 million impact of non-appropriated depreciation and amortisation expense, the Department ended the year with a $0.3 million surplus.

2012–13 2011–12 Change
$’m $’m $’m
TRENDS IN DEPARTMENTAL FINANCES
Revenue from Government 121.0 171.4 (50.4)
Other revenue 27.0 36.5 (9.5)
Total income 148.0 207.9 (59.9)
Employee expenses 88.3 109.6 (21.3)
Supplier expenses 58.0 98.1 (40.1)
Other expenses 9.3 10.7 (1.4)
Total expenses 155.6 218.4 (62.8)
Deficit attributed to the Australian Government (7.6) (10.5) 2.9
Plus non-appropriated depreciation and amortisation expense 7.9 8.2 (0.3)
Surplus (deficit) attributable to the Department 0.3 (2.3) 2.6
Financial assets A 19.3 24.9 (5.6)
Non-financial assets B 40.5 41.6 (1.1)
Liabilities C 39.7 39.2 0.5
Net assets (A+B-C) 20.1 27.3 (7.2)

Administered finances

The Department administers expenses on behalf of the Government related to: state occasions and official visits; the operational support of the Prime Minister’s official residences; secretariat support for the National Counter-Terrorism Committee; administration of a grant for the National Australia Day Council; support to former Governors-General; management of the national compact with not-for-profit organisations, philanthropy and volunteering program; management of the Parliament House Briefing Room and compensation and legal expenses.

Expenses administered on behalf of the Government decreased from $616.5 million in 2011–12 to $15.9 million in 2012–13 primarily reflecting the transfer of the arts and sport functions to Department of Regional Australia, Local Government, Arts and Sports (DRALGAS) during 2011–12.

2012–13 2011–12 Change
$’m $’m $’m
TRENDS IN ADMINISTERED FINANCES
Other revenue 0.1 2.7 (2.6)
Total income 0.1 2.7 (2.6)
Supplier expenses 5.4 9.6 (4.2)
Grant expenses 8.9 152.1 (143.2)
Other expenses 1.7 2.8 (1.2)
CAC Act body payments - 451.9 (451.9)
Total expenses 15.9 616.5 (600.6)
Financial assets 1.2 1.0 0.2
Non-financial assets 1.8 1.9 (0.1)
Liabilities 13.9 14.9 (1.0)

Figure 4.1 PM&C resource statement

Actual available appropriation for 2012–13 Payments made 2012–13 Remaining balance 2012–13
$’000 $’000 $’000
(a) (b) (a)-(b)
Ordinary annual services1
Departmental appropriation2 159,794 157,117 2,677
Total 159,794 157,117 2,677
Administered Expenses3
Outcome 1: Coordination of government activities; policy development; advice and program delivery to support and inform the Prime Minister, the Cabinet and the Cabinet Secretary. 16,502 15,917
Total 16,502 15,917
Total ordinary annual services A 176,296 173,034
Other services
Administered expenses
Specific payments to States, ACT, NT and Local government - -
Total - -
Departmental non-operating4
Equity injections 9,600 - 9,600
Total 9,600 - 9,600
Administered non-operating
Administered assets and liabilities - 129
Total - 129
Total other services B 9,600 129
Special appropriations - -
Total special appropriations C - -
Total appropriation excluding special accounts 185,896 173,163
Special accounts5 - - -
Total special accounts D - - -
Total resourcing A+B+C+D 185,896 173,162
Less appropriations drawn from annual or special appropriations above and credited to special accounts and/or CAC Act bodies through annual appropriations - -
Total net resourcing for PM&C 185,896 173,162

1Appropriation Act (no.1) 2012–13. This includes prior year appropriations and s31 relevant agency receipts. Further details refer to Note 29 to the financial statements.

2 Includes an amount of $2.867m in 2012–13 for the Departmental Capital Budget. For accounting purposes this amount has been designated as ‘contributions by owners’.

3 Includes an amount of $0.243m in 2012–13 for the Administered Capital Budget. For accounting purposes this amount has been designated as ‘contributions by owners’.

4Appropriation Act (No.2) 2012–13.

5 Does not include ‘Special Public Money’ held in accounts like Other Trust Monies accounts (OTM). Services for other Government and Non-agency Bodies accounts (SOG), or Services for Other Entities and Trust Moneys special accounts (SOETM).

Figure 4.2 Expenses by outcome and program

Outcome 1: Coordination of government activities; policy development; advice and program delivery to support and inform the Prime Minister, the Cabinet and the Cabinet Secretary.

Budget* 2012–13 Actual expenses 2012–13 Variation 2012–13
$’000 $’000 $’000
(a) (b) (a) - (b)
Program 1.1: Prime Minister and Cabinet
Administered expenses
Ordinary annual services (Appropriation Bill No. 1) 14,940 15,917 (977)
Departmental expenses
Departmental appropriation1 147,937 145,385 2,552
Expenses not requiring appropriation in the Budget year2 10,782 10,167 615
Total for Program 1.1 173,659 171,469 2,190
Outcome 1 Totals by appropriation type
Administered expenses
Ordinary annual services (Appropriation Bill No. 1) 14,940 15,917 (977)
Departmental expenses
Departmental appropriation1 147,937 145,385 2,552
Expenses not requiring appropriation in the Budget year2 10,782 10,167 615
Total expenses for Outcome 1 173,659 171,469 2,190
Average staffing level (number) 698 689 9

* Full year budget, including any subsequent adjustment made to the 2012–13 Budget.

1 Departmental appropriation combines ‘Ordinary annual services (Appropriation Bill No. 1)’ and ‘Revenue from independent sources (s31)’.

2 Expenses not requiring appropriation in the Budget year is made up of depreciation expense, amortisation expense, make good expense, audit fees and secondees.

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 (FMA Act). Our statements include:

  • A statement of comprehensive income: 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 equity at year-end.
  • A statement of change in equity: This shows how the equity we hold changed due to changes in asset valuations, accumulated surplus and capital transactions.
  • A cashflow statement: This shows where the cash we used during the year came from, and how we used it.
  • A schedule of commitments: This shows the Department’s intention to create liabilities or assets, as evidenced by undertakings or agreements to make/obtain future payments to/from other entities.
  • A schedule of contingencies: This details assets and liabilities that have not been recognised in the financial statements because they are contingent on a certain event occurring before they meet the recognition criteria.