Annual Report
2013–14

Financial performance

This section highlights the Department’s financial performance during 2013–14 for both departmental and administered activities.

Following the changes to the Administrative Arrangement Order (AAO) on 18 September 2013, 3 October 2013 and 12 December 2013, the Department assumed responsibility for most Indigenous policy and programme functions, Deregulation and Women’s policy function. The Department also relinquished responsibility for National Compact, Philanthrophy and Volunteering.

As a result, the departmental operating result includes approximately six months of revenue and expenses for the transferred functions. The administered operating result includes approximately eight months of revenues and expenses. The Statement of Financial Position and Administered Schedule of Assets and Liabilities include the transfer of assets and liabilities as part of the assumed functions.

Appropriations were amended under section 32 of the Financial Management and Accountability Act 1997.

The Department’s financial statements are presented from page 95 of this report. The Australian National Audit Office issued an unmodified audit opinion of these statements on 23 September 2014.

Financial performance of departmental activities

Operating result

The Department of the Prime Minister and Cabinet recorded an operating surplus of $12.3 million on its core operations1. Whilst the Department’s bottom line in the Statement of Comprehensive Income discloses a technical operating deficit of $6.6 million this includes:

  • G20 operating surplus of $3.3 million
  • unfunded depreciation and amortisation expense and asset write downs totalling $19.7 million2
  • a revaluation of employee liabilities of $2.5 million due to changes in the long term bond rate and on-costs.

Statement of Financial Position

As at 30 June 2014, the Department reported net equity of $128.2 million: $280.6 million of assets, less $152.3 million of liabilities. Financial assets were $127.7 million primarily represented by cash and appropriation receivable. Non-financial assets were $152.8 million primarily representing staff accommodation and offices in remote areas. Liabilities were predominantly $76.1 million employee provisions and $35.5 million supplier payables.

The Government contributed $121.6 million of equity to the Department during 2013–14. This included the Departmental Capital Budget2 and the transfer of net assets relating to the assumed functions of Indigenous policy and programmes, Deregulation and Women’s policy as a result of the AAO.

Financial performance of administered activities

Income

Administered revenue received of $102.9 million predominantly relates to interest in investments by the Aboriginal Benefits Account and the Torres Strait Islander Land Account of $73.8 million, and a return of grant funding of $29.0 million.

The revaluation of portfolio entities’ land, buildings, property, plant and equipment resulted in a $40.4 million downwards adjustment to the net book value of administered investments. These adjustments were taken to the Asset Revaluation Reserve and reflected in Other Comprehensive Income.

Expenses

The Department administers programmes on behalf of government including:

  • $754.5 million in relation to Indigenous Affairs programmes
  • $78.4 million in relation to the Aboriginal Benefits Account special account
  • $52.6 million for the Aboriginal and Torres Strait Islander Land Account special account
  • $90.1 million in payments to portfolio Commonwealth Authorities and Companies Act 1997 bodies
  • $18.3 million for other programmes including Official and Ceremonial Support and Women’s policies.

Assets

As at 30 June 2014 administered assets totalled $4,207.5 million reflecting the increase in investments managed of $2,420.2 million. Other significant assets include:

  • $1,678.0 million net book value of the portfolio’s related entities
  • $80.4 million in trade other receivables
  • $17.7 million of cash at bank.

Liabilities

As at 30 June 2014 the Department had administered liabilities of $47.9 million. Major items include:

  • End of year supplier, subsidy and grant payables totalling $30.7 million
  • Non-cash benefits provision relating to former Governors-General benefits, $16.6 million.

Resourcing statement

Actual Available Appropriation
for 2013–14
$’000
(a)
Payments
Made
2013–14
$’000
(b)
Remaining
balance
2013–14
$’000
(a)-(b)
Ordinary annual services1
Departmental appropriation2401,746 318,048 83,697
Total 401,746 318,048 83,697
Administered Expenses3
Outcome 1:
Prime Minister and Cabinet 16,143 14,247
Outcome 2: Indigenous 748,662 620,539
Payments to CAC Act bodies 90,076 90,076
Total 854,881 724,862
Total ordinary annual services A 1,256,627 1,042,910
Other services4
Administered expenses
  Specific payments to States, Act, NT   and local Government
Outcome 1: Prime Minister and Cabinet - -
Outcome 2: Indigenous 27,044 3,207
Total 27,044 3,207
Departmental non-operating
Equity injections 8,528 3,171 5,357
Total 8,528 3,171 5,357
Administered non-operating
Administered assets and liabilities 67 67
Payments to CAC Act bodies - non-operating 21,065 21,065
Total 21,132 21,132
Total other servicesB 56,704 27,510
Total Available Annual Appropriations and payments 1,313,331 1,070,420
Special appropriations Special appropriations limited by criteria/entitlement
Aboriginal Land Rights (Northern Territory) Act 1976 92,766
Higher Education Support Act 2003 26,628
Special appropriations limited by amount
Indigenous Education (Targeted Assistance) Act 2000 91,912
Total special appropriationsC 211,306
Special accounts
Opening balance 32,175
Appropriation receipts 91,983
Non-appropriation receipts to Special Accounts 2,662,930
Payments made 2,756,014
Total special accountsD 2,787,088 2,756,014 31,074
Total Resourcing A+B+C+D 4,100,419 4,037,740
Less appropriations drawn from annual or special appropriations above and credited to special accounts and/or CAC act bodies through annual appropriations (91,983) (91,983)
Total net resourcing for PM&C 4,008,436 3,945,757

1 Appropriation Act (No.1) 2013–14. 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 $9.894m in 2013–14 for the Departmental Capital Budget. For accounting purposes this amount has been designated as ‘contributions by owners’.

3 Includes an amount of $0.289m in 2013–14 for the Administered Capital Budget. For accounting purposes this amount has been designated as ‘contributions by owners’.

4 Appropriation Act (No.2) 2013–14, Appropriation Act (No.4) 2013–14 and Appropriation Act (No.6) 2013–14.

Expenses by outcomes

Outcome 1: Provide high quality policy advice and support to the Prime Minister, the Cabinet, Portfolio Ministers and Parliamentary Secretaries including through the coordination of government activities, policy development and programme delivery.

Budget*
2013–14
$’000
(a)
Actual
expenses
2013–14
$’000
(b)
Variation
2013–14
$’000
(a) - (b)
Program 1.1: Prime Minister and Cabinet
Administered expenses
  Ordinary annual services (Appropriation Bill No. 1, 3 and 5)16,143 14,247 1,896
Departmental expenses
Departmental appropriation 1200,527 217,827 (17,300)
Expenses not requiring appropriation in the Budget year 213,108 12,825 283
Total for Program 1.1229,778 244,899 (15,121)
Outcome 1 Totals by appropriation type
Administered expenses    
  Ordinary annual services (Appropriation Bill No. 1, 3 and 5) 16,143 14,247 1,896
Departmental expenses
Departmental appropriation 1200,527 217,827 (17,300)
Expenses not requiring appropriation in the Budget year 213,108 12,825 283
Total expenses for Outcome 1 229,778 244,899 (15,121)
Average staffing level (number) 807 737 70

Outcome 2: Improve results for Indigenous Australians including in relation to school attendance, employment and community saftey, through delivering services and programmes, and through measures that recognise the special place that Indigenous people hold in this Nation.

Budget*
2013–14
$’000
(a)
Actual
expenses
2013–14
$’000
(b)
Variation
2013–14
$’000
(a) - (b)
Program 2.1: Indigenous outcomes
Administered expenses
  Ordinary annual services (Appropriation Bill No. 1, 3 and 5)748,662 620,539 128,123
Departmental expenses
Departmental appropriation 1166,214 141,581 24,633
Expenses not requiring appropriation in the Budget year 25 13,989 (13,984)
Total for Program 2.1914,881 776,109 138,772
Outcome 2 Totals by appropriation type
Administered expenses
 Ordinary annual services (Appropriation Bill No. 1, 3 and 5)748,662 620,539 128,123
Departmental expenses
Departmental appropriation 1166,214 141,581 24,633
Expenses not requiring appropriation in the Budget year 25 13,989 (13,984)
Total expenses for Outcome 2 914,881 776,109 138,772
Average staffing level (number) 913 896 17

* Full year budget, including any subsequent adjustment made to the 2013–14 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.

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Department of the Prime Minister and Cabinet Financial Statements (2.6 MB PDF)

1 Core ordinary Departmental operations exclude G20, unfunded depreciation and amortisation expense, assets received free of charge and revaluations of assets and employee liabilities.

2 From 2010–11, the Government introduced net cash appropriation arrangements where revenue appropriations for depreciation and amortisation expenses ceased. Entities now receive a separate capital budget provided through equity appropriations.