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Note 8.4A: Departmental budgetary reports – explanations of major variances

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8.4A: Departmental budgetary reports - explanations of major variances

The following tables provide a comparison of the revised budget as presented in the 2015–16 Portfolio Additional Estimates Statements to the 2015–16 final outcome as presented in accordance with the Australian Accounting Standards for the Department. The budget is not audited. Explanations of major variances are provided below.

Under the Administrative Arrangements Order of 21 September 2015, responsibilities for Classification, Copyright and Arts and Cultural Development programs and functions transferred from the Department to the Department of Communications and the Arts with effect from 1 November 2015. The transfer of these responsibilities resulted in a material change to the Department’s original budget. Accordingly, the amounts shown under the heading of variance and the associated variance commentary are in respect of the revised budget, which appears in the Department’s 2015–16 Portfolio Additional Estimates Statements.

Attorney-General's Department statement of comprehensive income
for the period ended 30 June 2016

  Original budget1 Actual Budget estimate
      Revised   Variance2
  2016 2016 2016 2016
  $'000 $'000 $'000 $'000
NET COST OF SERVICES        
EXPENSES        
Employee benefits 266,637 243,289 245,144 (1,855)
Suppliers 107,692 102,318 108,572 (6,254)
Grants - 1,359 - 1,359
Depreciation and amortisation 27,305 27,248 30,122 (2,874)
Write-down and impairment of assets and other expenses - 369 - 369
 Total expenses 401,634 374,583 383,838 (9,255)
OWN-SOURCE INCOME        
Own-source revenue        
Sale of goods and rendering of services 167,062 166,291 166,545 (254)
Interest 100 189 100 89
Other revenue 1,913 829 1,717 (888)
Total own-source revenue 169,075 167,309 168,362 (1,053)
         
Gains        
Other gains 470 639 470 169
Total gains 470 639 470 169
Total own-source income 169,545 167,948 168,832 (884)
         
Net cost of services 232,089 206,635 215,006 (8,371)
Revenue from Government 214,269 194,013 193,888 125
Deficit attributable to the Australian Government (17,820) (12,622) (21,118) 8,496
         
OTHER COMPREHENSIVE INCOME        
Items not subject to subsequent reclassification to ‘net cost of services’        
Changes in asset revaluation reserves - (1,653) - (1,653)
Total other comprehensive income - (1,653) - (1,653)
Total comprehensive income/(loss) attributable to the Australian Government (17,820) (14,275) (21,118) 6,843

Notes

1 The Department’s original budgeted financial statements that were first presented to Parliament in respect of the reporting period (i.e. from the Department’s 2015–16 Portfolio Budget Statements).

2 Between the actual and revised budgeted amounts for 2016. Explanations of major variances are provided further below.

Attorney-General's Department statement of financial position
for the period ended 30 June 2016

  Original budget1 Actual Budget estimate
      Revised  Variance2
  2016 2016 2016 2016
  $'000 $'000 $'000 $'000
ASSETS        
Financial assets        
Cash and cash equivalents 24,394 33,153 32,558 595
Trade and other receivables 102,422 89,022 107,431 (18,409)
Total financial assets 126,816 122,175 139,989 (17,814)
         
Non-financial assets        
Land and buildings 53,462 64,613 52,658 11,955
Property, plant and equipment 79,599 22,321 39,231 (16,910)
Intangibles 27,687 19,332 26,713 (7,381)
Other non-financial assets 4,830 6,907 2,114 4,793
Total non-financial assets 165,578 113,173 120,716 (7,543)
Total assets 292,394 235,348 260,705 (25,357)
         
LIABILITIES        
Payables        
Suppliers 38,819 33,537 30,930 2,607
Grants - 266 - 266
Other payables 21,687 31,481 26,271 5,210
Total payables 60,506 65,284 57,201 8,083
         
Provisions        
Employee provisions 81,752 60,343 69,916 (9,573)
Make-good provisions - 41 - 41
Other provisions 989 3,614 896 2,718
Total provisions 82,741 63,998 70,812 (6,814)
Total liabilities 143,247 129,282 128,013 1,269
Net assets 149,147 106,066 132,692 (26,626)

Notes

1 The Department’s original budgeted financial statements that were first presented to Parliament in respect of the reporting period (i.e. from the Department’s 2015–16 Portfolio Budget Statements).

2 Between the actual and revised budgeted amounts for 2016. Explanations of major variances are provided further below.

Attorney-General's Department statement of changes in equity
for the period ended 30 June 2016

  Original budget1 Actual Budget estimate
      Revised  Variance2
  2016 2016 2016 2016
  $'000 $'000 $'000 $'000
CONTRIBUTED EQUITY        
Opening balance        
Balance carried forward from previous period 246,379 245,328 245,328 -
Adjusted opening balance 246,379 245,328 245,328 -
         
Transactions with owners        
Distrubutions to owners        
Distribution of equity 4,215 (44,698) 4,215 (48,913)
Restructuring 1,415 (17,108) (29,047) 11,939
Contributions by owners        
Departmental capital budget 15,275 16,533 16,533 -
Equity injection – appropriations 20,000 29,786 29,786 -
Total transactions with owners 40,905 (15,487) 21,487 (36,974)
Closing balance as at 30 June 287,284 229,841 266,815 (36,974)
         
RETAINED EARNINGS        
Opening balance        
Balance carried forward from previous period (141,229) (131,982) (131,982) -
Adjustment for prior period - 118 - 118
Adjusted opening balance (141,229) (131,864) (131,982) 118
         
Comprehensive Income        
Surplus/(deficit) for the period (17,820) (12,622) (21,118) 8,496
Total comprehensive income (17,820) (12,622) (21,118) 8,496
Transactions with owners        
Distributions to owners        
Dividends (1,546) - - -
Closing balance as at 30 June (160,595) (144,486) (153,100) 8,614
         
ASSET REVALUATION RESERVE        
Opening balance        
Balance carried forward from previous period 22,458 22,364 22,364 -
Adjusted opening balance 22,458 22,364 22,364 -
         
Comprehensive income        
Other comprehensive income - (1,653) (3,387) 1,734
Total comprehensive income - (1,653) (3,387) 1,734
Closing balance as at 30 June 22,458 20,711 18,977 1,734
         
TOTAL EQUITY        
Opening balance        
Balance carried forward from previous period 127,608 135,710 135,710 -
Adjustment for prior period - 118 - 118
Adjusted opening balance 127,608 135,828 135,710 118
         
Comprehensive Income        
Surplus/(deficit) for the period (17,820) (12,622) (21,118) 8,496
Other comprehensive income - (1,653) (3,387) 1,734
Total comprehensive income (17,820) (14,275) (24,505) 10,230
Transactions with owners        
Distributions to owners        
Dividends (1,546) - - -
Distribution of equity 4,215 (44,698) 4,215 (48,913)
Restructuring 1,415 (17,108) (29,047) 11,939
Contributions by owners        
Departmental capital budget 15,275 16,533 16,533 -
Equity injection – appropriations 20,000 29,786 29,786 -
Total transactions with owners 39,359 (15,487) 21,487 (36,974)
Closing balance as at 30 June 149,147 106,066 132,692 (26,626)

Notes

1 The Department’s original budgeted financial statements that were first presented to Parliament in respect of the reporting period (i.e. from the Department’s 2015–16 Portfolio Budget Statements).

2 Between the actual and revised budgeted amounts for 2016. Explanations of major variances are provided further below.

Attorney-General's Department cash flow statement
for the period ended 30 June 2016

  Original budget1 Actual Budget estimate
      Revised  Variance2
  2016 2016 2016 2016
  $'000 $'000 $'000 $'000
OPERATING ACTIVITIES        
Cash received        
Sale of goods and rendering of services 146,140 164,750 132,466 32,284
Appropriations 214,937 262,674 207,589 55,085
Net goods and services tax received - 9,045 - 9,045
Interest 100 189 100 89
Other - 829 - 829
Total cash received 360,637 437,487 340,155 97,332
         
Cash used        
Employees 241,786 255,762 229,427 26,335
Suppliers 112,359 122,095 100,382 21,713
Grants - 1,118 - 1,118
Section 74 receipts transferred to Official Public Account - 49,189 - 49,819
Total cash used 354,145 428,794 329,809 98,985
Net cash from/(used by) operating activities 6,492 8,693 10,346 (1,653)
         
INVESTING ACTIVITIES        
Cash used        
Purchase of land and buildings 1,441 1,826 - 1,826
Purchase of property, plant and equipment 9,533 4,947 27,809 (22,862)
Purchase of intangibles and internally developed intangibles 13,462 7,318 - 7,318
Total cash used 24,436 14,091 27,809 (13,718)
Net cash (used by) investing activities (24,436) (14,091) (27,809) 13,718
         
FINANCING ACTIVITIES        
Cash received        
Contributed equity 39,490 33,196 47,937 (14,741)
Total cash received 39,490 33,196 47,937 (14,741)
         
Cash used        
Dividends paid 1,546 - 1,546 (1,546)
Total cash used 1,546 - 1,546 (1,546)
Net cash from/(used by) financing activities 37,944 33,196 46,391 (13,195)
         
Net increase/(decrease) in cash held 20,000 27,798 28,928 (1,130)
Cash and cash equivalents at the beginning of the reporting period 4,394 6,306 3,630 2,676
Cash transferred as part of the transfer of functions to the Department of Communications and the Arts - (951) - (951)
Cash and cash equivalents at the end of the reporting period 24,394 33,153 32,558 595

Notes

1 The Department’s original budgeted financial statements that were first presented to Parliament in respect of the reporting period (i.e. from the Department’s 2015–16 Portfolio Budget Statements).

2 Between the actual and revised budgeted amounts for 2016. Explanations of major variances are provided further below.

Explanation of major variance Variance amount
$'000
Affected line items
(and statement)
Income    
Other gains
The movement is due to the Department receiving additional
resources free of charge (refer Note 1.2D).
169 Other gains (statement of comprehensive income)
Assets    
Trade and other receivables
The variance is due to actual drawdowns of appropriations greater than the revised budget estimate.
(18,409) Trade and other receivables
(statement of financial position)
Land and buildings
The variance is due to classification differences in the revised
budget estimates.
11,955 Land and buildings; and property, plant and equipment (statement of financial position)
Property, plant and equipment
See above.
(16,910) Land and buildings; and property, plant and equipment (statement of financial position)
Liabilities    
Employee provisions
The variance is due to the voluntary redundancy round in 2015–16 and the impact of bond rate changes and actuarial assessment on leave provisions.
(9,573) Employee benefits (statement of comprehensive income)
Employee provisions (statement of financial position)

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