portfolio budget statements 2014-15 · web viewportfolio budget statements are not required for the...

PORTFOLIO BUDGET STATEMENTS 2014-15

BUDGET RELATED PAPER NO. 1.14

PRIME MINISTER AND CABINET PORTFOLIO

BUDGET INITIATIVES AND EXPLANATIONS OFAPPROPRIATIONS SPECIFIED BY OUTCOMESAND PROGRAMMES BY AGENCY

© Commonwealth of Australia 2014

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PRIME MINISTER

President of the SenateAustralian SenateParliament HouseCANBERRA ACT 2600

SpeakerHouse of RepresentativesParliament HouseCANBERRA ACT 2600

Dear Mr PresidentDear Madam Speaker

I hereby submit Portfolio Budget Statements in support of the 2014-15 Budget for the Prime Minister and Cabinet portfolio.

These statements have been developed, and are submitted to the Parliament, as a statement on the outcomes for the portfolio.

I present these statements to provide accountability to the Parliament and, through it, the public.

Yours sincerely

TONY ABBOTT

Parliament House CANBERRA ACT 2600Telephone (02) 6277 7700

www.pm.gov.au

Abbreviations and conventions

The following notation may be used:

NEC/nec not elsewhere classified- nil.. not zero, but rounded to zeron/a not applicable (unless otherwise specified)nfp not for publication$m $ million$b $ billion

Figures in tables and in the text may be rounded. Figures in text are generally rounded to one decimal place, whereas figures in tables are generally rounded to the nearest thousand. Discrepancies in tables between totals and sums of components are due to rounding.

Enquiries

Should you have any enquiries regarding this publication please contact the, Chief Financial Officer, Department of the Prime Minister and Cabinet on (02) 6271 5652.

A copy of this document can be located on the Australian Government Budget website at: http://www.budget.gov.au.

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http://www.budget.gov.au/

USER GUIDETO THE

PORTFOLIO BUDGET STATEMENTS

User Guide

The purpose of the 2014-15 Portfolio Budget Statements (PB Statements) is to inform Senators and Members of Parliament of the proposed allocation of resources to Government outcomes by agencies within the portfolio. Agencies receive resources from the annual appropriations acts, special appropriations (including standing appropriations and special accounts), and revenue from other sources.

A key role of the PB Statements is to facilitate the understanding of proposed annual appropriations in Appropriation Bills No. 1 and No. 2 2014-15 (or Appropriation Bill [Parliamentary Departments] No. 1 2014-15 for the parliamentary departments). In this sense the PB Statements are Budget related papers and are declared by the Appropriation Acts to be ‘relevant documents’ to the interpretation of the Acts according to Section 15AB of the Acts Interpretation Act 1901.

The PB Statements provide information, explanation and justification to enable Parliament to understand the purpose of each outcome proposed in the Bills.

As required under Section 12 of the Charter of Budget Honesty Act 1998, non-general government sector entities are not consolidated into the Commonwealth general government sector fiscal estimates and accordingly, these entities are not reported in the PB Statements.

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CONTENTS

Portfolio Overview.......................................................................................................1Department of the Prime Minister and Cabinet..............................................................3

Agency Resources and Planned Performance........................................................13Department of the Prime Minister and Cabinet............................................................15Aboriginal Hostels Limited............................................................................................69Australian National Audit Office....................................................................................91Australian Public Service Commission.......................................................................119Indigenous Business Australia...................................................................................151Indigenous Land Corporation.....................................................................................179Office of the Commonwealth Ombudsman.................................................................203Office of the Inspector-General of Intelligence and Security......................................225Office of National Assessments.................................................................................245Office of the Official Secretary to the Governor-General............................................267Torres Strait Regional Authority.................................................................................293

Glossary.................................................................................................................... 321

Acronyms.................................................................................................................. 329

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PORTFOLIO OVERVIEW

PRIME MINISTER AND CABINET PORTFOLIO OVERVIEW

Ministers and Portfolio Responsibilities

The role of the Prime Minister and Cabinet Portfolio is to provide policy advice and support to the Prime Minister, the Cabinet, Portfolio Ministers, and Parliamentary Secretaries on matters that are at the forefront of public and government administration.

Following the Administrative Arrangements Order (AAO) of 18 September 2013, and then of 12 December 2013, the principal responsibilities of the Prime Minister and Cabinet Portfolio comprise:

advice to the Prime Minister across Government on policy and implementation

assistance to the Prime Minister in managing the Cabinet programme

national security policy coordination

counter terrorism policy coordination

cyber policy coordination

intergovernmental relations and communications with State and Territory Governments

coordination of government administration

Australian Government employment workplace relations policy, including equal employment opportunity and administration of the framework for agreement making and remuneration and conditions

Australian honours and symbols policy

government ceremonial and hospitality

Commonwealth Aboriginal and Torres Strait Islander policy, programmes and service delivery

Indigenous advancement

reducing the burden of government regulation

women’s policies and programmes.

The structure and the outcomes of the Portfolio are depicted in diagrammatical form on pages 8-10.

3

The Portfolio includes the following prescribed agencies under the Financial Management and Accountability Act 1997 (FMA Act):

Department of the Prime Minister and Cabinet

Australian National Audit Office

Australian Public Service Commission

Office of National Assessments

Office of the Commonwealth Ombudsman

Office of the Inspector-General of Intelligence and Security

Office of the Official Secretary to the Governor-General.

The Portfolio also includes the following Commonwealth companies and authorities, under the Commonwealth Authorities and Companies Act 1997 (CAC Act):

Aboriginal Hostels Limited

Indigenous Business Australia

Indigenous Land Corporation

National Australia Day Council Limited

Northern Territory Land Councils

o Anindilyakwa Land Council

o Central Land Council

o Northern Land Council

o Tiwi Land Council

Outback Stores Pty Ltd

Torres Strait Regional Authority

Wreck Bay Aboriginal Community Council.

Following is a brief explanation of the roles of each of PM&C’s entity agencies, companies and offices.

The Department of the Prime Minister and Cabinet (PM&C) is a Department of State and is subject to the FMA Act. The principal function of PM&C is to provide support to the Prime Minister, the Cabinet, Portfolio Ministers, and Parliamentary Secretaries to achieve a coordinated and innovative approach to the development and implementation of government policies.

PM&C is also responsible for Whole-of-Government policy and programmes on Indigenous advancement, deregulation and women’s policy.

4

Portfolio Overview

The Aboriginal Land Commissioner (ALC) is an independent statutory office holder under the Aboriginal Land Rights (Northern Territory) Act 1976 (ALRA) and is subject to the FMA Act. The principal function of the Commissioner is to conduct formal inquiries into applications for claims to traditional Aboriginal land in the Northern Territory and to provide recommendations to the Minister for Indigenous Affairs for the grant of land to traditional owners where appropriate.

The Australian National Audit Office (ANAO) is a statutory body established under the Auditor-General Act 1997 and is subject to the FMA Act. The ANAO assists the Auditor-General in undertaking the performance of their functions under the Act.

The Australian Public Service Commission (APSC) is a statutory agency with a number of defined functions under the Public Service Act 1999, is subject to the FMA Act and has a central leadership role in providing expertise, guidance and performance monitoring across the Australian Public Service (APS). The APSC has a key role in improving the alignment and quality of APS human capital planning and management to support an efficient and effective whole of APS, fostering talent and leadership, assuring agencies’ organisational capability, embedding APS Values, supporting high ethical standards and coordinating workplace relations for Australian Government employment.

The position of Executive Director of Township Leasing (EDTL) is a statutory office that is subject to the FMA Act and was established under the ALRA to enter into leases of Aboriginal-held land in the Northern Territory on behalf of the Commonwealth, and to administer subleases and other rights and interests derived from such leases. The primary function of the EDTL is to hold leases over townships on Aboriginal land in the Northern Territory following agreement between the Commonwealth and the respective Aboriginal Land Council and Land Trust.

The Office of National Assessments (ONA) is a statutory agency operating under the Office of National Assessments Act 1977 and is subject to the FMA Act. The ONA provides assessments on international developments, including political, strategic and economic developments, to the Prime Minister, senior ministers and senior officials. The ONA is also responsible for coordinating and evaluating Australia’s foreign intelligence activities.

The Office of the Commonwealth Ombudsman (OCO) is an independent statutory agency established under the Ombudsman Act 1976 and is subject to the FMA Act. The Office ensures administrative action by Australian Government agencies is fair and accountable by handling complaints, conducting investigations, performing audits and inspections, encouraging good administration, and discharging other specialist oversight tasks - such as monitoring the operation of the Commonwealth public interest disclosure scheme and the exercise of coercive immigration powers. The Commonwealth Ombudsman is also the Defence Force, Immigration, Law Enforcement, Taxation, Postal Industry, and Overseas Students Ombudsman.

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Portfolio Overview

The Office of the Inspector-General of Intelligence and Security (OIGIS) is an independent statutory agency under the Inspector-General of Intelligence and Security Act 1986 and is subject to the FMA Act. The OIGIS works to provide assurance that Australia’s intelligence agencies act legally and with propriety.

The Office of the Official Secretary to the Governor-General (OOSGG) is a statutory office that supports the Governor-General to enable them to perform their official duties and is subject to the FMA Act. The position of the Official Secretary to the Governor-General (the Official Secretary) has existed since 1901. The OOSGG was established in December 1984 by amendment to the Governor-General Act 1974.

The Registrar of Indigenous Corporations (RIC) is an independent statutory office holder who administers the Corporations (Aboriginal and Torres Strait Islander) Act 2006 and is subject to the FMA Act. The Registrar of Indigenous Corporations registers and regulates Aboriginal and Torres Strait Islander corporations.

Aboriginal Hostels Limited (AHL) is an Australian Government company subject to the Corporations Act 2001 and the CAC Act. AHL provides temporary accommodation to Aboriginal and Torres Strait Islander people through a national network. AHL provides accommodation that supports Aboriginal and Torres Strait Islander people to access educational, employment-related and health opportunities.

Indigenous Business Australia (IBA) is a statutory authority established under the Aboriginal and Torres Strait Islander Act 2005 (ATSI Act) and is subject to the CAC Act. IBA creates opportunities for Aboriginal and Torres Strait Islander people and communities to build assets and wealth. IBA assists Aboriginal and Torres Strait Islander people to buy their own home, own their own business and, to invest in commercial ventures that generate financial returns and can also provide employment, training and supply chain opportunities.

The Indigenous Land Corporation (ILC) is a statutory authority established under the ATSI Act and is subject to the CAC Act. The ILC assists Aboriginal and Torres Strait Islander people to acquire and manage land so as to provide economic, environmental, social and cultural benefits. The ILC assists in the delivery of sustainable benefits from land acquisition and by providing land management assistance.

The National Australia Day Council Limited (NADC) is a Commonwealth Company that is subject to the CAC Act and is responsible for the coordination of Australia Day celebrations across the nation and for the Australian of the Year Awards.

Anindilyakwa Land Council (ALCNT), Central Land Council (CLC), Northern Land Council (NLC) and Tiwi Land Council (TLC) are the four Northern Territory Land Councils established under the ALRA. The Land Councils are subject to the CAC Act. Each is an independent statutory body established to represent Aboriginal interests in a range of processes under the ALRA.

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Portfolio Overview

Outback Stores Pty Ltd (OBS) is an Australian Government-owned company subject to the Corporations Act 2001 and the CAC Act. OBS promotes the health, employment and economic development of remote Indigenous communities by managing quality, sustainable retail stores. OBS contributes to the portfolio’s goals by helping Aboriginal and Torres Strait Islander people to improve their standard of living and achieve health goals.

The Torres Strait Regional Authority (TSRA) is a statutory authority established by the ATSI Act and is subject to the CAC Act. TSRA formulates, implements and monitors the effectiveness of programmes for Torres Strait Islander and Aboriginal people living in the Torres Strait and also advises the Minister for Indigenous Affairs about issues relevant to Torres Strait Islander and Aboriginal people living in the Torres Strait region. TSRA works to empower Torres Strait Islander and Aboriginal people living in the Torres Strait to determine their own affairs based on the ailan kastom (island custom) of the Torres Strait.

The Wreck Bay Aboriginal Community Council (WBACC) is an independent statutory body established by the Aboriginal Land Grant (Jervis Bay Territory) Act 1986 and is subject to the CAC Act. The council holds title to land and provides service to the Aboriginal community of Wreck Bay.

More details about each agency’s responsibilities appear in individual agency statements contained in these Portfolio Budget Statements.

Portfolio Budget Statements are not required for the Aboriginal Land Commissioner, Anindilyakwa Land Council, Executive Director of Township Leasing, National Australia Day Council, Northern Land Council, Central Land Council, Outback Stores, Registrar of Indigenous Corporations, Tiwi Land Council, and Wreck Bay Aboriginal Community Council, as they are not funded by direct appropriation.

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Portfolio Overview

Figure 1: Prime Minister and Cabinet Portfolio Structure and Outcomes

Prime Minister — The Hon Tony Abbott MP

Minister for Indigenous Affairs — Senator the Hon Nigel ScullionMinister Assisting the Prime Minister for the Public Service — Senator the Hon Eric Abetz

Minister Assisting the Prime Minister for Women — Senator the Hon Michaelia Cash

Parliamentary Secretary to the Prime Minister — The Hon Josh Frydenberg MPParliamentary Secretary to the Prime Minister — The Hon Alan Tudge MP

Department of the Prime Minister and Cabinet Secretary: Dr Ian Watt AO

Outcome 1: Prime Minister and Cabinet - 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.Outcome 2: Indigenous - Improve results for Indigenous Australians including in relation to school attendance, employment and community safety, through delivering services and programmes, and through measures that recognise the special place that Indigenous people hold in this Nation.

Aboriginal Hostels Limited Chief Executive Officer: Ms Joy SavageOutcome: Improved access to education, employment, health and other services for Aboriginal and Torres Strait Islander people travelling or relocating through the operation of temporary hostel accommodation services.

Australian National Audit Office Auditor-General: Mr Ian McPhee PSMOutcome: To improve public sector performance and accountability through independent reporting on Australian Government administration to Parliament, the Executive and the public.

Australian Public Service Commission Commissioner: Mr Stephen Sedgwick AOOutcome: Increased awareness and adoption of best practice public administration by the public service through leadership, promotion, advice and professional development, drawing on research and evaluation.

Indigenous Business Australia Chief Executive Officer: Mr Christopher FryOutcome: Improved wealth acquisition to support the economic independence of Aboriginal and Torres Strait Islander peoples through commercial enterprise, asset acquisition, construction and access to concessional home and business loans.

continued on next page.

Indigenous Land Corporation Chief Executive Officer: Mr Mike DillonOutcome: Enhanced socio-economic development, maintenance of cultural identity and protection of the environment by Indigenous Australians through land acquisition and management.

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Portfolio Overview

National Australia Day Council Limited Chief Executive Officer: Mr Jeremy LasekOutcome: A shared celebration of Australia and Australians through promoting the meaning of and participation in Australia Day and the Australian of the Year Awards.

Northern Territory Land CouncilsAnindilyakwa Land Council - Chief Executive Officer: Mr Mark HewittCentral Land Council - Director: Mr David RossNorthern Land Council - Chief Executive Officer: Mr Joe MorrisonTiwi Land Council - Chief Executive Officer: Mr John S HicksObjective: Represent Aboriginal interests in various processes under the Aboriginal Land Rights (Northern Territory) Act 1976. The Central Land Council and Northern Land Council are Native Title Representative Bodies under the Native Title Act 1993.

Office of National Assessments Director General: Mr Richard MaudeOutcome: Advancement of Australia's national interests through increased government awareness of international developments affecting Australia.

Office of the Commonwealth Ombudsman Ombudsman: Mr Colin NeaveOutcome: Fair and accountable administrative action by Australian Government agencies by investigating complaints, reviewing administrative action and inspecting statutory compliance by law enforcement agencies.

Office of the Inspector-General of Intelligence and Security Inspector-General: Dr Vivienne ThomOutcome: Independent assurance for the Prime Minister, Senior Ministers and Parliament as to whether Australia’s intelligence and security agencies act legally and with propriety by inspecting, inquiring into and reporting on their activities.

Office of the Official Secretary to the Governor-General Official Secretary: Mr Stephen BradyOutcome: The performance of the Governor-General’s role is facilitated through the organisation and management of official duties, management and maintenance of the official household and property and administration of the Australian Honours and Awards system.


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Portfolio Overview

Outback Stores Pty Ltd Chief Executive Officer: Mr Steve MooreObjective: To improve access to affordable, healthy food for Indigenous communities, particularly in remote areas, through providing food supply and store management and support services.

Torres Strait Regional Authority Chief Executive Officer: Mr Wayne See KeeOutcome: Progress towards closing the gap for Torres Strait Islander and Aboriginal people living in the Torres Strait Region through development planning, coordination, sustainable resource management, and preservation and promotion of Torres Strait Islander and Aboriginal culture.

Wreck Bay Aboriginal Community Council Chief Executive Officer: Mr Mal HansenObjective: Established by the Aboriginal Land Grant (Jervis Bay Territory) Act 1986 to hold title to land and provide council services to the Aboriginal Community of Jervis Bay.

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Portfolio Overview

Portfolio ResourcesTable 1 shows the total new resources provided to the portfolio in the 2014-15 Budget year by agency.

Table 1: Portfolio Resources 2014-15Receipts Total

Bill No. 1 Bill No. 2 Special$'000 $'000 $'000 $'000 $'000

Department of the Prime Minister and CabinetAdministered appropriations 1,167,245 8,517 178,757 95,122 1,449,641Departmental appropriations 590,106 5,887 - 8,613 604,606Total: 1,757,351 14,404 178,757 103,735 2,054,247

Aboriginal Hostels LimitedAdministered appropriations - - - - -Departmental appropriations 38,058 1,244 - 20,192 59,494Total: 38,058 1,244 - 20,192 59,494

Indigenous Business AustraliaAdministered appropriations - - - - -Departmental appropriations 34,328 36,880 - 159,044 230,252Total: 34,328 36,880 - 159,044 230,252

Indigenous Land CorporationAdministered appropriations - - - - -Departmental appropriations 9,527 - - 54,565 64,092Total: 9,527 - - 54,565 64,092

National Australia Day Council Limited Administered appropriations - - - - -Departmental appropriations - - - 12,973 12,973Total: - - - 12,973 12,973

Torres Strait Regional AuthorityAdministered appropriations - - - - -Departmental appropriations 48,159 - - 9,885 58,044Total: 48,159 - - 9,885 58,044

Appropriation


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Portfolio Overview

Table 1: Portfolio Resources 2014-15 (continued)Receipts Total

Bill No. 1 Bill No. 2 Special$'000 $'000 $'000 $'000 $'000

Australian National Audit OfficeAdministered appropriations - - - - -Departmental appropriations 73,799 - 626 3,500 77,925Total: 73,799 - 626 3,500 77,925

Australian Public ServiceCommissionAdministered appropriations - - 61,963 - 61,963Departmental appropriations 22,072 - - 21,894 43,966Total: 22,072 - 61,963 21,894 105,929

Office of the CommonwealthOmbudsmanAdministered appropriations - - - - -Departmental appropriations 17,959 - - 1,695 19,654Total: 17,959 - - 1,695 19,654

Office of the Inspector Generalof Intelligence and SecurityAdministered appropriations - - - - -Departmental appropriations 2,189 - - - 2,189Total: 2,189 - - - 2,189

Office of National AssessmentsAdministered appropriations - - - - -Departmental appropriations 32,548 - - - 32,548Total: 32,548 - - - 32,548

Office of the Official Secretaryto the Governor GeneralAdministered appropriations 1,574 - 425 - 1,999Departmental appropriations 11,777 - - - 11,777Total: 13,351 - 425 - 13,776Portfolio total 2,731,123Less amounts transferred

within portfolio1 3,438 - - - 3,438

Resources available within portfolio: 2,727,685

Appropriation

1Amounts transferred within the portfolio include grant payments made to the National Australia Day Council Limited ($3.4 million) by the Department of Prime Minister and Cabinet.

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AGENCY RESOURCES ANDPLANNED PERFORMANCE

Department of the Prime Minister and Cabinet.......................................................15

Aboriginal Hostels Limited........................................................................................69

Australian National Audit Office...............................................................................91

Australian Public Service Commission..................................................................119

Indigenous Business Australia...............................................................................151

Indigenous Land Corporation.................................................................................179

Office of the Commonwealth Ombudsman............................................................203

Office of the Inspector-General of Intelligence and Security...............................225

Office of National Assessments.............................................................................245

Office of the Official Secretary to the Governor-General......................................267

Torres Strait Regional Authority.............................................................................293

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Department of the Prime Minister and Cabinet

Agency Resources and Planned Performance

DEPARTMENT OF THE PRIME MINISTER AND CABINET

Section 1: Agency Overview and Resources...........................................................191.1 Strategic Direction Statement...............................................................................191.2 Agency Resource Statement................................................................................201.3 Budget Measures.................................................................................................23

Section 2: Outcomes and Planned Performance....................................................272.1 Outcomes and Performance Information..............................................................27

Section 3: Explanatory Tables and Budgeted Financial Statements.....................513.1 Explanatory Tables...............................................................................................513.2 Budgeted Financial Statements............................................................................54

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DEPARTMENT OF THE PRIME MINISTER AND CABINET

Section 1: Agency Overview and Resources

1.1 STRATEGIC DIRECTION STATEMENT

The role of PM&C is to provide policy advice and support to the Prime Minister, the Cabinet, Portfolio Ministers, and Parliamentary Secretaries on matters that are at the forefront of public and government administration.

PM&C strives to achieve a coordinated and innovative approach to the development and implementation of government policies. This requires well considered advice on a range of issues, drawing together input from across portfolios, to address the long term challenges and opportunities facing Australia. Priority areas for PM&C include:

supporting the Prime Minister as Head of Government and the Cabinet

providing advice on major domestic, international, and national security policy, drawing on expertise from across government

monitoring and providing advice on the implementation of key government initiatives, policies and programmes

leading the APS in collaboration with the APSC

progressing Indigenous advancement and working closely with other Australian Government Departments to lead efforts to ensure mainstream programmes and services deliver benefits to Indigenous Australians.

Further details of the objectives and performance evaluation mechanisms attached to this strategy are detailed in Section 2 of this document.

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1.2 AGENCY RESOURCE STATEMENT

Table 1.1 shows the total resources from all sources. The table summarises how resources will be applied by outcome and by administered and departmental classification.

Table 1.1: PM&C Resource Statement — Budget Estimates for 2014-15 as at Budget May 2014

Estimate Proposed Total Actualof prior + at Budget = estimate available

year amounts appropriation available in

2014-15 2014-15 2014-15 2013-14$'000 $'000 $'000 $'000

Ordinary annual services1

Departmental appropriationPrior year departmental appropriation2 22,901 - 22,901 13,556Departmental appropriation3 - 590,106 590,106 365,921s31 Relevant agency receipts4 - 8,613 8,613 10,714Total 22,901 598,719 621,620 390,191

Administered expenses5

Outcome 1: Prime Minister and Cabinet - 14,062 14,062 16,143Outcome 2: Indigenous - 1,153,183 1,153,183 748,662Payments to CAC Act bodies - 130,367 130,367 -Total - 1,297,612 1,297,612 764,805

Total ordinary annual services A 22,901 1,896,331 1,919,232 1,154,996

Other services6

Administered expensesSpecific payments to States,

ACT, NT and local governmentOutcome 2 - 8,517 8,517 23,837Total - 8,517 8,517 23,837

Departmental non-operatingEquity injections - 5,887 5,887 8,528Total - 5,887 5,887 8,528

Administered non-operatingPayments to CAC Act bodies -

non-operating - 38,124 38,124 -Total - 38,124 38,124 -

Total other services B - 52,528 52,528 32,365

Total available annual appropriations 22,901 1,948,859 1,971,760 1,187,361


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PM&C Budget Statements

Table 1.1: PM&C Resource Statement — Budget Estimates for 2014-15 as at Budget May 2014 (continued)



2014-15 2014-15 2014-15 2013-14$'000 $'000 $'000 $'000

Special appropriationsSpecial appropriations limited

by criteria/entitlementAboriginal Lands Rights (Northern

Territory) Act 1976 - 122,955 122,955 -Higher Education Support Act 2003 - 55,802 55,802 47,282Indigenous Education (Targeted

Assistance) Act 2000 - - - 38,777 Total special appropriations C - 178,757 178,757 86,059

Total appropriations excluding Special Accounts 22,901 2,127,616 2,150,517 1,273,420

Special AccountsOpening balance7 940 50,807 51,747 23,811Appropriation receipts8 - 122,000 122,000 -Non-appropriation receipts to Special Accounts - 95,122 95,122 4,216

Total Special Accounts D 940 267,929 268,869 28,027

Total resourcingA+B+C+D 23,841 2,395,545 2,419,386 1,301,447Less appropriations drawn from

annual or special appropriations aboveand credited to special accountsand/or CAC Act bodies through annual appropriations - 290,491 290,491 7,645

Total net resourcing for PM&C 23,841 2,105,054 2,128,895 1,293,802Reader note: All figures are GST exclusive.

1Appropriation Bill (No.1) 2014-15.

2Estimated adjusted balance carried forward from previous year.

3Includes an amount of $13.2 million in 2014-15 for the Departmental Capital Budget (refer to Table 3.2.5 for further details). For accounting purposes this amount has been designated as 'contributions by owners'.

4s31 Relevant Agency receipts – estimate.5Includes an amount of $0.2 million in 2014-15 for the Administered Capital Budget (refer to Table 3.2.10 for further details). For accounting purposes this amount has been designated as 'contributions by owners'.6Appropriation Bill (No.2) 2014-15.7Estimated opening balance for Special Accounts (less ‘Special Public Money’ held in accounts like Services for Other Entities and Trust Moneys (SOETM)). For further information on Special Accounts see Table 3.1.2.8Appropriation receipts from the Department of Social Services annual and special appropriations for 2013-14 included above.

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Third Party Payments From and on Behalf of Other Agencies2014-15 2013-14

$'000 $'000Receipts received from other agencies for the provision of services 8,613 10,714

(disclosed above within Departmental section 31)

Payments made to CAC Act bodies within the Portfolio1

Aboriginal Hostels Limited 39,400 -Indigenous Business Australia 71,296 -Indigenous Land Corporation 9,551 -Torres Strait Regional Authority 48,244 -

12013-14 payments to CAC Act bodies within the Portfolio were made prior to the Machinery of Government changes that were reflected in the AAO of 18 September 2013, and then 12 December 2013. The losing agencies will be reporting on the 2013-14 figures.

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1.3 BUDGET MEASURES

Budget measures in Part 1 relating to PM&C are detailed in Budget Paper No. 2 and are summarised below.

Table 1.2: PM&C 2014-15 Budget MeasuresPart 1: Measures Announced Since the 2013-14 MYEFO

Programme 2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000

Revenue measuresSmaller Government - Council of Australian Governments Reform Council 1.1— cessation1

Administered revenues - - - - -Departmental revenues - (2,600) (2,600) (2,500) (2,500)

Total - (2,600) (2,600) (2,500) (2,500)Total revenue measures

Administered - - - - -Departmental - (2,600) (2,600) (2,500) (2,500)

Total - (2,600) (2,600) (2,500) (2,500)

Expense measures Efficiency Dividend — a further temporary increase of 0.25 per cent AllAdministered expenses - - - - -Departmental expenses - (868) (729) (1,092) (1,102)Total - (868) (729) (1,092) (1,102)

Australia hosting the Group of 20 — reduced funding requirement 1.1Administered expenses - - - - -Departmental expenses - (7,000) - - -Total - (7,000) - - -

Smaller Government — Council of Australian Governments Reform Council 1.1 — cessation1

Administered expenses - - - - -Departmental expenses - (4,178) (4,845) (4,715) (4,716)Total - (4,178) (4,845) (4,715) (4,716)

Women's Leadership and Development Strategy — savings 1.1Administered expenses - (390) (395) (402) (370)Departmental expenses - - - - -Total - (390) (395) (402) (370)

National Security Legislation Monitor— cessation2 1.1Administered expenses - - - - -Departmental expenses - (336) (330) (329) (332)Total - (336) (330) (329) (332)


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Measures Announced Since the 2013-14 MYEFO (continued)Programme 2013-14 2014-15 2015-16 2016-17 2017-18

$'000 $'000 $'000 $'000 $'000Indigenous Affairs Programmes — rationalisation 2Administered expenses - (94,485) (80,775) (87,507) (92,453)Departmental expenses - - (17,980) (17,980) (17,980)Total - (94,485) (98,755) (105,487) (110,433)

Stronger participation incentives for job seekers under 30 2.1Administered expenses - 6,045 17,225 19,808 19,775Departmental expenses - - - - -Total - 6,045 17,225 19,808 19,775

Migration Programme — allocation of places for 2014-15 2.1Administered expenses - (8) (26) (49) (41)Departmental expenses - - - - -Total - (8) (26) (49) (41)

Remote School Attendance Strategy — extension3 2.2Administered expenses - - - - -Departmental expenses - - - - -Total - - - - -

Clontarf Foundation Academy — expansion 2.2Administered expenses - 1,089 2,842 4,701 4,785Departmental expenses - - - - -Total - 1,089 2,842 4,701 4,785

Expanding opportunity — Higher EducationIndexation — revised arrangements 2.2Administered expenses - - (189) (456) (695)Departmental expenses - - - - -Total - - (189) (456) (695)

Permanent Police Presence in Remote Indigenous Communities 2.3Administered expenses - 6,409 13,035 13,283 20,322Departmental expenses - 482 204 203 202Total - 6,891 13,239 13,486 20,524

Community Engagement Police Officers in the Northern Territory 2.3Administered expenses - 1,000 500 500 500Departmental expenses - - - - -Total - 1,000 500 500 500

Support for the Northern Territory Child Abuse Taskforce — continuation4 2.3Administered expenses - - - - -Departmental expenses - - - - -Total - - - - -


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Measures Announced Since the 2013-14 MYEFO (continued)Programme 2013-14 2014-15 2015-16 2016-17 2017-18

$'000 $'000 $'000 $'000 $'000National Congress of Australia's First Peoples — cessation 2.4Administered expenses - (5,000) (5,000) (5,000) -Departmental expenses - - - - -Total - (5,000) (5,000) (5,000) -

Outback Power 2.5Administered expenses - 2,500 2,545 2,598 2,653Departmental expenses - 77 77 77 76Total - 2,577 2,622 2,675 2,729

Total expense measuresAdministered expenses - (82,840) (50,238) (52,524) (45,524)Departmental expenses - (11,823) (23,603) (23,836) (23,852)Total - (94,663) (73,841) (76,360) (69,376)

Prepared on a Government Financial Statistics (fiscal) basis.

1In order to support the continued reduction in red tape the COAG Reform Council will be abolished. The Productivity Commission will receive funding for one year to develop transitional reporting arrangements, with PM&C continuing to monitor State and Territory performance on an ongoing basis.

2In line with the Government’s commitment to streamline government processes, and now that all relevant national security legislation has been reviewed, the Government has decided to abolish the role of the Independent National Security Legislation Monitor. The Government introduced the Independent National Security Legislation Repeal Bill 2014 (the Repeal Bill) on 19 March 2014 that abolishes the role of the Monitor.

3This measure is being funded from within existing resources.

4Funding for this measure has been provided directly to the Australian Federal Police.

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1.4 TRANSITION TABLES – OUTCOME COMPONENTS

Since the publication of the 2013-14 Portfolio Additional Estimates Statements, PM&C has changed the structure of ‘Outcome 2: Indigenous’. PM&C has moved from a single programme structure ‘Programme 2.1: Indigenous’ to a six programme structure, with five administered programmes and one departmental support programme.

A transition table from the Outcome 2 structure published in the 2013-14 Portfolio Additional Estimates Statements to the 2014-15 Portfolio Budget Statements is shown below in Figure 2.

Figure 2: Transition Table2013-14 Additional Estimates 2014-15 Budget Year

Outcome 2: Indigenous Outcome 2: Indigenous

Outcome Components: Outcome Components:

2.1 Indigenous outcomes 2.1 Jobs Land and Economy

2.2 Children and Schooling

2.3 Safety and Wellbeing

2.4 Culture and Capability

2.5 Remote Australia Strategies

2.6 Programme Support

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Section 2: Outcomes and Planned Performance

2.1 OUTCOMES AND PERFORMANCE INFORMATION

Government outcomes are the intended results, impacts or consequences of actions by the Government on the Australian community. Commonwealth programmes are the primary vehicle by which Government agencies achieve the intended results of their outcome statements. Agencies are required to identify the programmes which contribute to Government outcomes over the Budget and forward years.

PM&C’s outcomes are described below together with their related programmes, specifying the performance indicators and targets used to assess and monitor the performance of PM&C in achieving Government outcomes.

OUTCOME 1: PRIME MINISTER AND CABINET

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.

Outcome 1 StrategyPM&C’s role is to provide policy advice and support to the Prime Minister, the Cabinet, Portfolio Ministers and Parliamentary Secretaries through a coordinated approach to the development and implementation of government policies. More specifically PM&C will:

provide advice on major domestic, international and national security policy, including all matters considered by the Cabinet

provide support for meetings of the Cabinet, its committees and the Federal Executive Council and the processes to facilitate the decision-making role of the Cabinet

monitor the implementation of key government initiatives, policies, programmes and reform agendas

develop the future leadership capability of the APS through the Secretary's role as head of the APS and Chair of the Secretaries' Board.

PM&C also provides:

leadership on policy advice for the G20 agenda as well as delivering operational and security arrangements for the conduct of the meetings

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advice to improve gender equality and support for women’s economic empowerment and opportunity, safety and leadership

advice to promote better quality regulation in all areas of government to reduce the costs for businesses, community organisations and individuals of regulation which is unnecessary or poorly designed or which is administered in an unnecessarily burdensome way.

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Outcome Expense Statement

Table 2.1 provides an overview of the total expenses for Outcome 1, by programme.

Table 2.1: Budgeted Expenses for Outcome 1Outcome 1: Provide high quality policy advice and support 2013-14 2014-15to the Prime Minister, the Cabinet, Portfolio Ministers Estimated Estimatedand Parliamentary Secretaries including through the actual expensescoordination of government activities, policy expensesdevelopment and programme delivery.

$'000 $'000Programme 1.1: Prime Minister and CabinetAdministered expenses

Ordinary annual services (Appropriation Bill No. 1) 14,259 12,626Departmental expenses

Departmental appropriation1 200,527 298,524Special Accounts 2 -

Expenses not requiring appropriation in the Budget year2 13,108 11,691

Total for Programme 1.1 227,896 322,841Outcome 1 Totals by appropriation typeAdministered Expenses

Ordinary annual services (Appropriation Bill No. 1) 14,259 12,626Departmental expenses

Departmental appropriation1 200,527 298,524Special Accounts 2 -


Total expenses for Outcome 1 227,896 322,8412013-14 2014-15

Average Staffing Level (number) 8073 717Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of the Budget year as government priorities change.1Departmental appropriation combines ‘Ordinary annual services (Appropriation Bill No. 1)’ and ‘Revenue from independent sources (s31)’.

2Expenses not requiring appropriation in the Budget year is made up of depreciation expense, amortisation expense, makegood expense and the treatment of the provision for former Governors-General entitlements.

3The increase from the ASL of 788 reported in the 2013-14 PAES document is due to the part year effect of staff transferred into or out of the Department under the AAO of 18 September 2013, and then 12 December 2013. The Machinery of Government changes disguise an underlying decrease in staff numbers.

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Contributions to Outcome 1

Programme 1.1: Prime Minister and Cabinet

Programme Objective

The objectives of this programme are to:

provide advice and support to the Prime Minister, the Cabinet, Portfolio Ministers and Parliamentary Secretaries, and coordination across Government, on major domestic, international and national security policies

provide support to the Cabinet and its committees, the Federal Executive Council and COAG to facilitate informed decision making

provide support for the operations of the Prime Minister’s official residences and to former and designated Governors-General official offices

provide support for major events and meetings and coordinating the logistical arrangements for the Prime Minister’s overseas visits.

PM&C will also seek to strengthen the global economy and collaboration between major economies through supporting the chairing of the G20 in 2014.

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Programme 1.1 ExpensesThe changes in programme expenses across the forward years are driven by variations in the aggregated expenditure profile of programmes transferred into the Department following the 2013 Machinery of Government changes and expenditure arising from new policy proposals agreed in the 2014-15 Budget.

2013-14 2014-15 2015-16 2016-17 2017-18Estimated Budget Forward Forward Forward

actual estimate estimate estimate$'000 $'000 $'000 $'000 $'000

Annual administered expenses:Compensation and Legal Expenses 115 117 120 121 123National Australia Day Council Limited 3,408 3,438 3,469 3,530 3,615National Compact, Philanthropy and

Volunteering 2,616 - - - -National Counter Terrorism Committee

Secretariat 111 111 112 113 114Office for Women 2,670 3,510 3,570 3,642 3,349Parliament House Briefing Room 424 431 447 454 464Prime Minister's Official Residences 1,611 1,697 1,770 1,813 1,856State Occasions and Official Visits 3,152 3,322 3,588 3,674 3,764Support to the former Governors-General1 152 - - - -

Special Account Expenses:Services for Other Entities and Trust

Moneys 2 - - - -Departmental appropriation2 200,527 298,524 105,639 103,757 104,939Expenses not requiring appropriation in

the Budget year3 13,108 11,691 11,205 8,961 8,990Total Programme expenses 227,896 322,841 129,920 126,065 127,214

12013-14 expense relates to a one off payment to the designated Governors-General.

2Departmental appropriation combines ‘Ordinary annual services (Appropriation Bill No. 1)’ and ‘Revenue from independent sources (s31)’.

3Expenses not requiring appropriation in the Budget year is made up of depreciation expense, amortisation expense, makegood expense and the treatment of the provision for former Governors-General entitlements.

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Programme 1.1 Deliverables

policy advice and support to the Prime Minister, the Cabinet, Portfolio Ministers and Parliamentary Secretaries in key areas including:

o domestic policy matters, strategic priorities, and implementation

o foreign, trade and aid policy, including bilateral relations and engagement with regional and international partners

o Defence matters, including Australian Defence Force operations, international Defence cooperation and engagement, force posture and structure and Defence reforms

o national security matters

o the development of White Papers on Reform of the Federation, and Agricultural Competitiveness and Northern Australia, as well as support the Review of the Renewable Energy Target

o commemorative events, including Anzac Centenary commemorations

o parliamentary, Machinery of Government and legal policy

o Australia’s honours system and national symbols.

leadership, policy coordination, monitoring and coordinated Whole-of-Government responses to Government’s decisions, policies and strategic priorities including:

o enhanced regional engagement, integrated cyber policy and effective national security partnerships

o countering people smuggling and irregular migration issues

o major national security related crises or emergencies

o Australia's national security community and national intelligence community

o developing COAG’s agenda and support for COAG’s work programme.

provision of secretariat and support services for the Cabinet, its committees and the Federal Executive Council

provision of services for the Prime Minister, Portfolio Ministers, Parliamentary Secretaries and their ministerial offices

management of visits by, and hospitality for, guests of the Government and Heads of State, delivery of support for major events, ceremonies and state occasions and coordination of logistical arrangements for the Prime Minister’s overseas visits

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provision of support for the operations of the Prime Minister’s official residences and related matters and provision of entitlements to former Governors-General (excluding pension entitlements)

policy development, operational and security arrangements for Australia’s role in the G20

leadership, policy coordination, and communicating measures and benefits for women including reducing violence against women, women’s economic empowerment and opportunity and women’s leadership and status

development of more efficient regulation and effective regulatory management.

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Programme 1.1 Key Performance Indicators

high quality, relevant and timely advice and support to the Prime Minister, including to support him in his role as the Chair of the Cabinet and all committees, Portfolio Ministers and Parliamentary Secretaries based on an objective and thorough understanding of issues and Whole-of-Government perspective

regular, timely and collaborative communication and cooperation with other central agencies, portfolio departments and other key stakeholders

coordination and support for COAG meetings

leadership and coordination of the national security community to promote a national security system that anticipates threats, responds effectively to crises and major security events, protects the nation and shapes the world in Australia’s interest

advancement of the Government’s international priorities that promote Australia’s security, prosperity, international profile and influence

advice and support for key stakeholders for state occasions, official visits, operations of the Prime Minister’s official establishments and former Governors-General that is timely, relevant and of high quality

advance Australia’s interests through the G20

lead the implementation of government deregulation reforms including delivering on the Government’s $1 billion net portfolio targets for reduction in the burden of regulation, repeal days and Ministerial Advisory Bodies and a regulator performance framework

high quality and timely advice to departments and agencies on best practice regulation making, consistent with the requirements of the Australian Government Guide to Regulation and the COAG’s Best Practice Regulation Guide

provide timely advice and funding to external stakeholders that provide programmes and support to promote women’s economic empowerment and opportunity, reducing violence against women, and women’s leadership and status.

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OUTCOME 2: INDIGENOUS

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

Outcome 2 StrategyPM&C, through Outcome 2, provides advice and support to the Prime Minister, the Minister for Indigenous Affairs and the Cabinet, and applies the Government’s policies, programmes and legislation with a view to ensuring the Government’s priorities in Indigenous affairs are implemented. These priorities are ensuring children go to school, adults work, Indigenous business is fostered, the ordinary rule of law is observed in Indigenous communities as in other Australian communities, and Indigenous culture is supported.

As well as administering Indigenous specific programmes, working closely with other Australian Government Departments, PM&C leads efforts to ensure that mainstream programmes and services deliver benefits to Indigenous Australians.

The Government is supported in this by the Prime Minister’s Indigenous Advisory Council.

A high priority is giving effect to the Government’s commitment for a new engagement with Indigenous Australians, and achieving results for Indigenous people in the Government’s priority areas.

In addition, PM&C will work closely with the Attorney-General’s Department (AGD) to deliver the Government’s commitment to recognise Indigenous Australians in the Constitution.

From 1 July 2014, all Indigenous programmes transferred to PM&C will be consolidated under Outcome 2, into the Indigenous Advancement Strategy that has five streamlined administered programmes which reflect the priorities of the Government:

1) Jobs, Land and Economy – getting adults into work, fostering Indigenous business and assisting Indigenous people to generate economic and social benefits from effective use of their land, particularly in remote areas.

2) Children and Schooling – getting children to school, particularly in remote Indigenous communities, improving education outcomes and supporting families to give children a good start in life. This programme includes measures to improve access to further education.

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3) Safety and Wellbeing – ensuring the ordinary law of the land applies in Indigenous communities, particularly remote Indigenous communities, and that Indigenous people enjoy similar levels of physical, emotional and social wellbeing enjoyed by other Australians.

4) Culture and Capability – supporting Indigenous Australians to maintain their culture, participate equally in the economic and social life of the nation and that Indigenous organisations are capable of delivering quality services to their clients, particularly in remote areas.

5) Remote Australia Strategies – strategic investments in local, flexible solutions based on community and Government priorities. Support for remote housing strategies focusses on achieving results in Government priority areas.

These new programmes will reduce programme duplication and fragmentation, reduce delivery costs and more clearly link activity to outcomes. In turn there is a reduction in programme funding associated with these efficiencies.

Under this strategy, communities will have the key role in designing and delivering local solutions to local problems. The simplified approach to funding will dramatically reduce the red tape burden on communities and providers. There will be a new Remote Community Advancement Network (RCAN) in PM&C headed by a National Director.

Priorities for the Department during 2014-15 include improving school attendance and employment rates and reducing the incidence of crime and violence in remote Indigenous communities.

In relation to school attendance, the Department will work with State and Territory governments to close the gap in Indigenous school attendance in five years.

In relation to community safety, priorities include delivering police infrastructure to support a Permanent Police Presence in some remote Indigenous communities; continuing to support the Northern Territory Government through a funding contribution to the Northern Territory Government for Community Engagement Police Officers; and extending Commonwealth support for the Northern Territory Child Abuse Taskforce.

Some strategies to address these priorities will also increase economic, employment and social participation for all Australians living in remote Australia.

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The changes in programme expenses across the forward years are driven by variations in the aggregated expenditure profile of programmes transferred into PM&C following the 2013 Machinery of Government changes and expenditure arising from new policy proposals agreed in the 2014-15 Budget.

Table 2.1: Budgeted Expenses for Outcome 2Outcome 2: Improve results for Indigenous Australians 2013-14 2014-15including in relation to school attendance, employment Estimated Estimatedand community safety, through delivering services and actual expensesprogrammes, and through measures that recognise the expensesspecial place that Indigenous people hold in this Nation.

$'000 $'000Programme 2.1: IndigenousAdministered expenses

Ordinary annual services (Appropriation Bill No. 1) 748,662 -Other services (Appropriation Bill No. 2) 23,837 -Special appropriations 86,059 -Special Accounts 27,085 -

Departmental expenses -Departmental appropriation1 166,214 -

Expenses not requiring appropriation in the Budget year2 5 -

Total for Programme 2.1 1,051,862 -Programme 2.1: Jobs, Land and EconomyAdministered expenses

Ordinary annual services (Appropriation Bill No. 1)3 - 643,884Special appropriations - 122,955Special Accounts - 193,426

Total for Programme 2.1 - 960,265Programme 2.2: Children and SchoolingAdministered expenses

Ordinary annual services (Appropriation Bill No. 1) - 218,332Other services (Appropriation Bill No. 2) - 8,517Special appropriations - 55,802Special Accounts - 5

Total for Programme 2.2 - 282,656Programme 2.3: Safety and WellbeingAdministered expenses

Ordinary annual services (Appropriation Bill No. 1)3 - 272,772

Total for Programme 2.3 - 272,772Programme 2.4: Culture and CapabilityAdministered expenses

Ordinary annual services (Appropriation Bill No. 1) - 35,381

Total for Programme 2.4 - 35,381


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Table 2.1: Budgeted Expenses for Outcome 2 (continued)Outcome 2: Improve results for Indigenous Australians 2013-14 2014-15including in relation to school attendance, employment Estimated Estimatedand community safety, through delivering services and actual expensesprogrammes, and through measures that recognise the expensesspecial place that Indigenous people hold in this Nation.

$'000 $'000Programme 2.5: Remote Australia StrategiesAdministered expenses

Ordinary annual services (Appropriation Bill No. 1)3 - 113,176

Total for Programme 2.5 - 113,176Programme 2.6: Programme SupportDepartmental expenses

Departmental appropriation1 - 286,946Expenses not requiring appropriation in the Budget year2 9

Total for Programme 2.6 - 286,955Outcome 2 Totals by appropriation typeAdministered expenses

Ordinary annual services (Appropriation Bill No. 1)3 748,662 1,283,545Other services (Appropriation Bill No. 2) 23,837 8,517Special appropriations 86,059 178,757Special Accounts 27,085 193,431

Departmental expensesDepartmental appropriation1 166,214 286,946

Expenses not requiring appropriation in the Budget year2 5 9

Total expenses for Outcome 2 1,051,862 1,951,205Less appropriations drawn from annual or special appropriations

above and credited to special accounts (7,645) (122,000)Total net expenses for Outcome 2 1,044,217 1,829,205

2013-14 2014-15Average Staffing Level (number) 913 1,5974

Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of the Budget year as government priorities change.1Departmental appropriation combines ‘Ordinary annual services (Appropriation Bill No. 1)’ and ‘Revenue from independent sources (s31)’.

2Expenses not requiring appropriation in the Budget year is made up of depreciation expense.

3Ordinary annual services (Appropriation Bill No. 1) includes payments made to CAC Act bodies.4Increase in ASL from 2013-14 to 2014-15 is due to the part year effect of the transfer of the Indigenous Affairs function from various agencies under the AAO of 18 September 2013, and then 12 December 2013.

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Programme 2.1: Indigenous Advancement – Jobs, Land and Economy

Programme 2.1 Objective


get Indigenous Australians into work

foster Indigenous business

assist Indigenous people to generate economic and social benefits from effective management of their land.

Linked to: Department of Human Services (DHS) Indigenous Wage Subsidy Card and Community Development Employment Projects Programme. For more information please refer to DHS’ 2014-15 PB Statements.

Also linked to: The Native Title Respondent Funding Scheme (Programme 1.3), administered by the AGD has similar objectives to the AGD’s Native Title Unit and shares the same legislation (Programme 1.5). The Native Title Unit shares responsibility for the Native Title Act 1993, with PM&C. An example of a programme with similar objectives to PM&C is the Native Title Anthropologist Grants Programme, administered by the AGD. For more information please refer to AGD’s 2014-15 PB Statements.

Also linked to: Department of the Environment’s Programme 1.1 Sustainable Management of Natural Resources. For more information please refer to Environment’s 2014-15 PB Statements.

Also linked to: Department of Employment’s Programme 1.1 Employment Services, Programme 1.2 Indigenous Employment and Programme 1.4 Remote Jobs and Communities Programme. For more information please refer to Employment’s 2014-15 PB Statements.

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Programme 2.1 Expenses

The changes in programme expenses across the forward years are driven by variations in the aggregated expenditure profile of programmes transferred into the Department following the 2013 Machinery of Government changes and expenditure arising from new policy proposals agreed in the 2014-15 Budget.



Annual administered expenses:Ordinary annual services (Appropriation

Bill No. 1)1 - 643,884 698,272 689,084 660,526Special Appropriations:

Aboriginal Land Rights (Northern Territory) Act 1976

Aboriginals Benefit Account - 122,000 146,000 135,000 135,000Ranger Agreement - 955 979 1,003 1,028

Special Account Expenses: Aboriginal and Torres Strait Islander Land

Account - 50,089 51,128 52,445 53,799Aboriginals Benefit Account - 143,337 137,353 123,896 123,896

Total Programme expenses - 960,265 1,033,732 1,001,428 974,249Less appropriations drawn from special

appropriations above and credited to special accounts - (122,000) (146,000) (135,000) (135,000)

Total net Programme expenses - 838,265 887,732 866,428 839,2491Ordinary annual services (Appropriation Bill No. 1) includes payments made to CAC Act bodies.

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increased Indigenous employment, business and economic development.

Programme 2.1 Key Performance Indicators*

increase in the Indigenous employment and participation rates

number of employment places filled with assistance by the Indigenous Advancement - Jobs, Land and the Economy programme and proportion retained to 26 weeks

proportion of job seekers in employment, education or training three months following participating in the Indigenous Advancement – Jobs, Land and the Economy programme

number of Indigenous ranger jobs contracted

number of Native Title claims finalised**

number of land claims being progressed or finalised under Commonwealth land rights legislation and number of township leases being negotiated, agreed or in place.

*Note: Indicators shown are those where data is available. Areas such as social participation, organisational effectiveness and enhanced environmental outcomes are under consideration. Indicators regarding employment, education and community safety will be disaggregated by remoteness where data is available.

**Note: Progress of Native Title claims is influenced by the activities of various parties in the Native Title system, including the Federal Court of Australia and State and Territory governments. Some parts of the system are funded by the AGD.

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Programme 2.2: Indigenous Advancement – Children and Schooling



get children to school

improve education outcomes

support families to give children a good start in life.

Linked to: Department of Social Services (DSS) Programme 2.1 Families and Communities. For more information please refer to DSS’ 2014-15 PB Statements.

Also linked to: Department of Human Services (DHS) School Enrolment and Attendance Measure and School Nutrition Programme. For more information please refer to DHS’ 2014-15 PB Statements.

Programme 2.2 ExpensesThe changes in programme expenses across the forward years are driven by variations in the aggregated expenditure profile of programmes transferred into the Department following the 2013 Machinery of Government changes and expenditure arising from new policy proposals agreed in the 2014-15 Budget.




Bill No. 1) - 218,332 217,006 224,066 224,857Other services (Appropriation Bill No. 2) - 8,517 8,647 7,648 7,762

Special Appropriations:Higher Education Support Act 2003

Commonwealth Scholarship Programme - 16,429 17,065 17,717 15,204Indigenous Support Programme - 39,373 39,910 40,871 41,912

Special Account Expenses: Aboriginal Tutorial Assistance

Superannuation Scheme - 5 5 5 5Total Programme expenses - 282,656 282,633 290,307 289,740

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increased Indigenous school attendance and improved educational outcomes.


Indigenous school attendance rates in remote areas

Year 12 or equivalent attainment – number and proportion of Indigenous young people (aged 20-24) with year 12 or equivalent Australian Qualifications Framework (AQF) Certificate II level (or above)

higher education – number and proportion of Indigenous 20-64 year olds with or working towards post school qualification in AQF Certificate III level or above

percentage of Indigenous students meeting National Minimum Standards in National Assessment Programme – Literacy and Numeracy (NAPLAN).


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Programme 2.3: Indigenous Advancement – Safety and Wellbeing



ensure that the ordinary law of the land applies in Indigenous communities

ensure Indigenous people enjoy similar levels of physical, emotional and social wellbeing enjoyed by other Australians.

Linked to: DSS Programme 2.1 Families and Communities. For more information please refer to DSS’ 2014-15 PB Statements.

Also linked to: Department of Health’s Programme 5.3 Aboriginal and Torres Strait Islander Health. For more information please refer to Health’s 2014-15 PB Statements.






Bill No. 1)1 - 272,772 284,011 288,571 300,688Total Programme expenses - 272,772 284,011 288,571 300,688

1Ordinary annual services (Appropriation Bill No. 1) includes payments made to CAC Act bodies.

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reduced levels of offending, violence and substance abuse.


number of initiatives implemented in Indigenous communities to reduce violence

number of organisations providing Indigenous specific alcohol and other drug treatment services and activities

number of sites providing low aromatic fuel.


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Programme 2.4: Indigenous Advancement – Culture and Capability



support Indigenous Australians to maintain their culture and participate equally in the economic and social life of the Nation

ensure that Indigenous organisations are capable of delivering quality services to their clients.

Linked to: The AGD Programme 2.1 Arts and Cultural Development. For more information please refer to AGD’s 2014-15 PB Statements.






Bill No. 1) - 35,381 35,726 36,296 32,862Total Programme expenses - 35,381 35,726 36,296 32,862

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progress towards a referendum on constitutional recognition

participation in society

organisational capability.


release of a draft proposal for a constitutional amendment to recognise Indigenous peoples and completion of a review under the Aboriginal and Torres Strait Islander Peoples Recognition Act 2013

number of cultural projects and activities supported

increased proportion of Indigenous organisations receiving significant funding from the Australian Government under this outcome which are registered under the Corporations (Aboriginal and Torres Strait Islander Act) 2006.


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Programme 2.5: Indigenous Advancement – Remote Australia Strategies


The objectives of this programme are:

strategic investments in local, flexible solutions based on community and Government priorities

support for remote housing strategies.

Linked to: DSS Programme 2.1 Families and Communities. For more information please refer to DSS’ 2014-15 PB Statements.






Bill No. 1)1 - 113,176 108,543 104,041 102,329Total Programme expenses - 113,176 108,543 104,041 102,329

1Ordinary annual services (Appropriation Bill No. 1) includes payments made to CAC Act bodies.

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invest in local, flexible solutions based on community priorities

invest in remote housing.


number of standardised tenancy agreements in place in relation to houses located on Indigenous land

number of community based Indigenous Advancement Strategies developed

number of new home owners on Indigenous land.


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Programme 2.6: Indigenous Advancement – Programme Support

The creation of a single Indigenous programme in PM&C was intended to be a temporary arrangement to facilitate the Machinery of Government changes following the 2013 Federal election. Since PM&C’s Portfolio Additional Estimates was published, Programme 2.1: Indigenous has been split into five administered programmes and one departmental support programme to increase transparency and accountability and to more closely align with the Government’s priorities in Indigenous affairs. The new arrangements give effect to the Government’s commitment to reduce red-tape and duplication and ensure resources are invested on the ground where they are most needed.

Programme 2.6 Expenses2013-14 2014-15 2015-16 2016-17 2017-18

Estimated Budget Forward Forward Forwardactual estimate estimate estimate$'000 $'000 $'000 $'000 $'000

Departmental appropriation - 286,946 263,453 264,088 264,830Expenses not requiring appropriation in

the Budget year1 - 9 13 16 20Total Programme expenses - 286,955 263,466 264,104 264,850

1Expenses not requiring appropriation in the Budget year is made up of depreciation expense.

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Section 3: Explanatory Tables and Budgeted Financial Statements

Section 3 presents explanatory tables and budgeted financial statements which provide a comprehensive snapshot of agency finances for the 2014-15 Budget year. It explains how budget plans are incorporated into the financial statements and provides further details of the reconciliation between appropriations and programme expenses, movements in administered funds, special accounts and Government Indigenous expenditure.

3.1 EXPLANATORY TABLES

3.1.1 Movement of Administered Funds Between YearsPM&C does not have any reportable movement of funds between years.

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3.1.2 Special AccountsSpecial accounts provide a means to set aside and record amounts used for specified purposes. Special accounts can be created by a Finance Minister’s Determination under the FMA Act or under separate enabling legislation. Table 3.1.2 shows the expected additions (receipts) and reductions (payments) for each account used by PM&C.

Table 3.1.2: Estimates of Special Account Flows and BalancesOpening Closingbalance Receipts Payments Adjustments1 balance2014-15 2014-15 2014-15 2014-15 2014-152013-14 2013-14 2013-14 2013-14 2013-14

Outcome $'000 $'000 $'000 $'000 $'000

Services for Other Entities and TrustMoneys Special Account - Departmentof the Prime Minister and Cabinet - s20 1 47 - - - 47FMA Act Det 2008/13 (D) 47 2 (2) - 47

Aboriginal and Torres Strait Islander Corporations Unclaimed Money Account - s21 FMA Act - Corporations (Aboriginal and Torres Strait Islander) 2 710 - - - 710Act 2006 Det 2006/551-20 (A) - - 710 710

Aboriginal and Torres Strait IslanderLand Account - s21 FMA Act - Aboriginaland Torres Strait Islander Commission 2 - 78,217 (50,089) 24,428 52,556Act 2005 Det 2005/192W (A) - - - - -

Aboriginals Benefit Account - s21 FMAAct - Aboriginal Land Rights (Northern 2 - 138,870 (143,337) 26,379 21,912Territory) Act 1976 Det 1976/62 (A) - - - - -

Aboriginal Tutorial AssistanceSuperannuation Special Account - 2 30 35 (5) - 60s20 FMA Act Det 2003/45 (A) - 35 (5) - 30

Indigenous Communities StrategicInvestment Programme SpecialAccount - s20 FMA Act Det 2008/24 2 200 - - - 200(A) - 3,410 (3,410) 200 200

Indigenous Remote Service DeliverySpecial Account - s20 FMA Act 2 - - - - -Det 2010/06 (A)2 - 769 (23,670) 22,901 -

Total Special Accounts 2014-15 Budget estimate 987 217,122 (193,431) 50,807 75,485

Total Special Accounts2013-14 estimated actual 47 4,216 (27,087) 23,811 987

(A) = Administered

(D) = Departmental1Includes opening balance adjustments for Special Accounts that were transferred to the Department from various agencies under the AAO of 18 September 2013, and then 12 December 2013.2The Indigenous Remote Service Delivery Special Account terminates on 30 June 2014.

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3.1.3 Australian Government Indigenous ExpenditureThe Australian Government Indigenous Expenditure (AGIE) report provides a breakdown of the estimated Indigenous expenditure administered by each portfolio.

Table 3.1.3 shows the estimated Indigenous expenditure in 2013-14 and 2014-15 by appropriation and outcome that is administered by PM&C only. The increase in AGIE expenditure from 2013-14 to 2014-15 reflects the part year effect of the transfer of the Indigenous functions in 2013-14 due to the Machinery of Government changes.

Indigenous expenditure administered by other portfolios is reported in their respective PB Statements.

Table 3.1.3: Australian Government Indigenous Expenditure (AGIE)Other¹ Total Programme2

Bill Bill Special TotalNo. 1 No. 2 approp approp$'000 $'000 $'000 $'000 $'000 $'000

Prime Minister and CabinetOutcome 2IndigenousAdministered 2014-153 1,283,545 8,517 178,757 1,470,819 71,431 1,542,250Administered 2013-14 748,662 23,837 86,059 858,558 19,440 877,998Departmental 2014-15 286,946 - - 286,946 9 286,955Departmental 2013-14 166,214 - - 166,214 5 166,219Total outcome 2014-15 1,570,491 8,517 178,757 1,757,765 71,440 1,829,205Total outcome 2013-14 914,876 23,837 86,059 1,024,772 19,445 1,044,217

Total administered 2014-153 1,283,545 8,517 178,757 1,470,819 71,431 1,542,250Total administered 2013-14 748,662 23,837 86,059 858,558 19,440 877,998

Total departmental 2014-15 286,946 - - 286,946 9 286,955Total departmental 2013-14 166,214 - - 166,214 5 166,219

Total AGIE 2014-153 1,570,491 8,517 178,757 1,757,765 71,440 1,829,205Total AGIE 2013-14 914,876 23,837 86,059 1,024,772 19,445 1,044,217

Appropriations

1Includes Special Account payments less appropriations drawn from annual or special appropriations and credited to Special Accounts and depreciation expenses.2Refer to Programme 2.1 - 2.6 Expenses tables.3Appropriation Bill No. 1 includes payments made to CAC Act bodies.

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3.2 BUDGETED FINANCIAL STATEMENTS

3.2.1 Differences in Agency Resourcing and Financial StatementsDepartmentalThe Agency Resource Statement (Table 1.1) provides a consolidated view of all the resources available to PM&C in 2014-15. For departmental items this includes equity injections and appropriation receivable that is yet to be drawn down to cover payables and provisions on the Balance Sheet. The Comprehensive Income Statement (Table 3.2.1) shows only the operating appropriation provided each year.

Administered

The 2014-15 administered expense figures in Table 1.1 includes the cash appropriation for payments for former Governors-General entitlements. A provision for the total estimated value of these entitlements is recognised in the financial statements at the time each Governor-General retires. Accordingly, payment of these entitlements results in a reduction to the provision rather than an operating expense.

The Schedule of Budgeted Income and Expenses Administered on Behalf of Government (Table 3.2.7) includes non-cash appropriation items including depreciation and amortisation expense, makegood and the provision for former Governors-General entitlements.

3.2.2 Analysis of Budgeted Financial StatementsDepartmental

Comprehensive Income Statement

Total income in 2014-15 is budgeted at $587.6 million (2013-14: $368.0 million). Revenue from Government (appropriation funding) is $576.9 million (2013-14: $356.0 million). The increase reflects the full year effect of the transfer of Indigenous functions from across the Australian Government to PM&C.

Balance Sheet

The Budgeted Departmental Balance Sheet shows an improvement in the net asset position of the Department from 2013-14 to 2014-15 as the final transfer of assets and liabilities from Machinery of Government changes occurs.

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Administered

Schedule of Budgeted Income and Expenses Administered on Behalf of Government

Total expense in 2014-15 is budgeted at $1,555.6 million (2013-14: $896.7 million). The increase reflects the full year effect of the transfer of the Indigenous Affairs functions from across the Australian Government to PM&C. Interest revenue relates to special account receipts for the Aboriginals Benefit Account (ABA) and Aboriginal and Torres Strait Islander Land Account (ATSILA).

Schedule of Budgeted Assets and Liabilities Administered on Behalf of Government

Net assets administered on behalf of Government has increased $4,152.1 million due to the consolidation of investment balances held by the Aboriginal Benefits Account (ABA) and the Aboriginal and Torres Strait Islander Land Account (ATSILA) ($2,397.5 million) and the recognition of ten CAC Act Investment Bodies ($1,755.5 million) transferred with the Indigenous Affairs function.

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3.2.3 Budgeted Financial Statements TablesTable 3.2.1 Comprehensive Income Statement (Showing Net Cost of Services) for the period ended 30 June

Estimated Budget Forward Forward Forwardactual estimate estimate estimate estimate

2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000

EXPENSESEmployee benefits 224,659 297,355 285,606 279,156 272,706Suppliers 142,747 290,189 84,802 90,025 98,399Grants 612 45 - - -Depreciation and amortisation 7,380 8,836 9,331 7,068 7,072Finance costs 23 24 24 25 25Total expenses 375,421 596,449 379,763 376,274 378,202LESS: OWN-SOURCE INCOMEOwn-source revenueSale of goods and rendering of services 10,714 8,613 3,095 3,185 3,185Total own-source revenue 10,714 8,613 3,095 3,185 3,185GainsOther 1,300 2,143 1,340 1,361 1,361Total gains 1,300 2,143 1,340 1,361 1,361Total own-source income 12,014 10,756 4,435 4,546 4,546Net cost of (contribution by)

services 363,407 585,693 375,328 371,728 373,656Revenue from Government 356,027 576,857 365,997 364,660 366,584* * * *Surplus (Deficit) attributable to

the Australian Government (7,380) (8,836) (9,331) (7,068) (7,072)Total comprehensive income (loss) (7,380) (8,836) (9,331) (7,068) (7,072)Total comprehensive income (loss)

attributable to the Australian Government (7,380) (8,836) (9,331) (7,068) (7,072)

Prepared on Australian Accounting Standards basis.

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Table 3.2.1 Comprehensive Income Statement (Showing Net Cost of Services) for the period ended 30 June (continued)Note: Impact of Net Cash Appropriation Arrangements

2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000

Total Comprehensive Income (loss) excluding depreciation/amortisationexpenses previously funded throughrevenue appropriations - - - - -

less depreciation/amortisation expensespreviously funded through revenueappropriations1 7,380 8,836 9,331 7,068 7,072

Total Comprehensive Income (loss) - as per the Statement ofComprehensive Income (7,380) (8,836) (9,331) (7,068) (7,072)

Prepared on Australian Accounting Standards basis.1From 2010-11, the Government introduced net cash appropriation arrangements where Bill 1 revenue appropriations for the depreciation/amortisation expenses of FMA Act agencies were replaced with a separate capital budget (the Departmental Capital Budget, or DCB) provided through Bill 1 equity appropriations. For information regarding DCBs, please refer to Table 3.2.5 Departmental Capital Budget Statement.

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Table 3.2.2: Budgeted Departmental Balance Sheet (as at 30 June)Estimated Budget Forward Forward Forward

actual estimate estimate estimate estimate2013-14 2014-15 2015-16 2016-17 2017-18

$'000 $'000 $'000 $'000 $'000ASSETSFinancial assets

Cash and cash equivalents 854 1,038 1,125 1,315 1,542Trade and other receivables 26,885 23,852 21,188 20,316 16,653

Total financial assets 27,739 24,890 22,313 21,631 18,195 Non-financial assets

Property, plant and equipment 40,408 49,335 54,051 68,213 85,284Intangibles 7,128 8,501 11,332 13,825 15,103Other non-financial assets 6,643 3,479 3,567 3,609 3,609

Total non-financial assets 54,179 61,315 68,950 85,647 103,996 Total assets 81,918 86,205 91,263 107,278 122,191 LIABILITIESPayables

Suppliers 6,828 2,671 2,221 2,510 2,510Grants 528 528 - - -Other payables 186 163 116 107 107

Total payables 7,542 3,362 2,337 2,617 2,617

ProvisionsEmployee provisions 63,363 61,571 58,054 57,692 60,095Other provisions 6,813 6,772 6,554 6,132 6,132

Total provisions 70,176 68,343 64,608 63,824 66,227 Total liabilities 77,718 71,705 66,945 66,441 68,844 Net assets 4,200 14,500 24,318 40,837 53,347 EQUITY*Parent entity interest

Contributed equity 24,548 43,684 60,604 84,396 104,186Reserves 8,231 8,231 8,231 8,231 8,231Retained surplus

(accumulated deficit) (28,579) (37,415) (44,517) (51,790) (59,070)Total Equity 4,200 14,500 24,318 40,837 53,347

Prepared on Australian Accounting Standards basis.*'Equity' is the residual interest in assets after deduction of liabilities.

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Table 3.2.3: Departmental Statement of Changes in Equity — Summary of Movement (Budget Year 2014-15)

Retained Asset Other Contributed Totalearnings revaluation reserves equity/ equity

reserve capital$'000 $'000 $'000 $'000 $'000

Opening balance as at 1 July 2014Balance carried forward from

previous period (28,579) 8,231 - 24,548 4,200Adjusted opening balance (28,579) 8,231 - 24,548 4,200Comprehensive income

Surplus (deficit) for the period (8,836) - - - (8,836)

Total comprehensive income (8,836) - - - (8,836)of which:

Attributable to the Australian Government (8,836) - - - (8,836)Transactions with owners

Contributions by ownersEquity Injection - Appropriation - - - 5,887 5,887Departmental Capital Budget (DCBs) - - - 13,249 13,249

Sub-total transactions with owners - - - 19,136 19,136Estimated closing balance

as at 30 June 2015 (37,415) 8,231 - 43,684 14,500 Prepared on Australian Accounting Standards basis.1From 2010-11, the Government introduced net cash appropriation arrangements where Bill 1 revenue appropriations for the depreciation/amortisation expenses of FMA Act agencies were replaced with a separate capital budget (the Departmental Capital Budget, or DCB) provided through Bill 1 equity appropriations. For information regarding DCBs, please refer to Table 3.2.5 Departmental Capital Budget Statement. Where depreciation has resulted in an accumulated loss, this affects the opening equity balance.

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Table 3.2.4: Budgeted Departmental Statement of Cash Flows (for the period ended 30 June)


2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000

OPERATING ACTIVITIESCash received

AppropriationsReceipts from Government 356,027 576,857 365,997 364,660 366,584Sale of goods and rendering of services 11,876 10,326 3,096 3,650 3,185Net GST received 2,544 - - - -

Total cash received 370,447 587,183 369,093 368,310 369,769Cash used

Employees 225,227 297,655 285,549 277,458 272,426Suppliers 144,635 289,235 83,192 90,231 97,116Grants 612 45 - - -Other 46 64 265 431 -

Total cash used 370,520 586,999 369,006 368,120 369,542Net cash from (used by)

operating activities (73) 184 87 190 227INVESTING ACTIVITIESCash used

Purchase of property, plant and equipment and intangibles 18,422 19,136 16,878 23,723 25,421


investing activities (18,422) (19,136) (16,878) (23,723) (25,421)FINANCING ACTIVITIESCash received

Contributed equity 18,422 19,136 16,878 23,723 25,421Total cash received 18,422 19,136 16,878 23,723 25,421Net cash from (used by)

financing activities 18,422 19,136 16,878 23,723 25,421Net increase (decrease)

in cash held (73) 184 87 190 227Cash and cash equivalents at the

beginning of the reporting period 927 854 1,038 1,125 1,315Cash and cash equivalents at the

end of the reporting period 854 1,038 1,125 1,315 1,542Prepared on Australian Accounting Standards basis.

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Table 3.2.5: Departmental Capital Budget StatementEstimated Budget Forward Forward Forward


$'000 $'000 $'000 $'000 $'000NEW CAPITAL APPROPRIATIONS

Capital budget - Bill 1 (DCB) 9,894 13,249 13,782 15,112 13,727Equity injections - Bill 2 8,528 5,887 3,096 8,611 11,694

Total new capital appropriations 18,422 19,136 16,878 23,723 25,421Provided for:

Purchase of non-financial assets 18,422 19,136 16,878 23,723 25,421Total Items 18,422 19,136 16,878 23,723 25,421PURCHASE OF NON-FINANCIAL

ASSETSFunded by capital appropriations1 8,528 5,887 3,096 8,611 11,694Funded by capital appropriation - DCB2 9,894 13,249 13,782 15,112 13,727

TOTAL 18,422 19,136 16,878 23,723 25,421RECONCILIATION OF CASH

USED TO ACQUIRE ASSETSTO ASSET MOVEMENT TABLE

Total purchases 18,422 19,136 16,878 23,723 25,421Total cash used to acquire assets 18,422 19,136 16,878 23,723 25,421Prepared on Australian Accounting Standards basis.1Includes both current and prior Bill 2/4/6 appropriations and special capital appropriations.2Does not include annual finance lease costs. Includes purchase from current and previous years' Departmental Capital Budgets (DCBs).

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Table 3.2.6: Statement of Asset Movements (2014-15)

Property, Computer Totalplant and software and

equipment intangibles$'000 $'000 $'000

As at 1 July 2014Gross book value 46,950 15,412 62,362Accumulated depreciation/amortisation

and impairment (6,542) (8,284) (14,826)Opening net book balance 40,408 7,128 47,536CAPITAL ASSET ADDITIONSEstimated expenditure on

new or replacement assetsBy purchase - appropriation equity1 2,904 2,983 5,887By purchase - appropriation ordinary

annual services2 13,249 - 13,249Total additions 16,153 2,983 19,136

Other movementsDepreciation/amortisation expense (7,226) (1,610) (8,836)Total other movements (7,226) (1,610) (8,836)As at 30 June 2015Gross book value 63,103 18,395 81,498Accumulated depreciation/amortisation

and impairment (13,768) (9,894) (23,662)Closing net book balance 49,335 8,501 57,836

Asset Category

Prepared on Australian Accounting Standards basis.1'Appropriation equity' refers to equity injections or administered assets and liabilities appropriations provided through Appropriation Bill (No. 2) 2014–15, including CDABs.

2'Appropriation ordinary annual services' refers to funding provided through Appropriation Bill (No. 1) 2014–15 for depreciation / amortisation expenses, DCBs or other operational expenses.

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Table 3.2.7: Schedule of Budgeted Income and Expenses Administered on Behalf of Government (for the period ended 30 June)


2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000

EXPENSES ADMINISTERED ONBEHALF OF GOVERNMENTEmployee benefits 866 882 900 918 918Suppliers 131,719 299,830 365,415 374,149 374,271Subsidies 21,425 65,182 66,226 67,419 68,632Grants 742,174 941,669 949,418 941,161 920,213Depreciation and amortisation 114 122 124 131 131Finance costs 386 467 443 443 443Payments to CAC Bodies - 130,367 126,085 121,672 119,123Other expenses 8 117,078 103,657 93,645 94,999

Total expenses administeredon behalf of Government 896,692 1,555,597 1,612,268 1,599,538 1,578,730

LESS:OWN-SOURCE INCOMEOwn-source revenueNon-taxation revenue

Interest - 95,087 95,681 96,403 97,482Other revenue 43 575 435 435 435

Total non-taxation revenue 43 95,662 96,116 96,838 97,917Total own-source revenues

administered on behalf of Government 43 95,662 96,116 96,838 97,917

Total own-sourced incomeadministered on behalf ofGovernment 43 95,662 96,116 96,838 97,917

Net Cost of (contribution by)services 896,649 1,459,935 1,516,152 1,502,700 1,480,813

Surplus (Deficit) 896,649 1,459,935 1,516,152 1,502,700 1,480,813

Total comprehensive income (loss) 896,649 1,459,935 1,516,152 1,502,700 1,480,813


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Table 3.2.8: Schedule of Budgeted Assets and Liabilities Administered on Behalf of Government (as at 30 June)


2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000

ASSETSFinancial assets

Cash and cash equivalents 5 22,900 35,749 40,646 40,646Trade and other receivables 471 7,894 7,898 7,902 7,906Investments accounted for

using the equity method 1,054 1,756,528 1,793,078 1,829,628 1,866,178Other investments - 2,397,538 2,450,579 2,505,641 2,560,174

Total financial assets 1,530 4,184,860 4,287,304 4,383,817 4,474,904Non-financial assets

Land and buildingsProperty, plant and equipment 1,928 1,957 2,087 2,209 2,334Other non-financial assets 64 8,210 8,209 8,209 8,209

Total non-financial assets 1,992 10,167 10,296 10,418 10,543Total assets administered

on behalf of Government 3,522 4,195,027 4,297,600 4,394,235 4,485,447LIABILITIESPayables

Suppliers 7,732 39,877 39,894 39,894 39,894Grants and subsidies 183 8,264 8,268 8,272 8,276Other payables 105 109 68 68 68

Total payables 8,020 48,250 48,230 48,234 48,238Provsions

Employee provisions 373 380 388 388 388Provision for restoration, decommissioning and makegood 114 114 114 114 114Other provisions 15,595 14,778 14,045 13,912 13,912

Total provisions 16,082 15,272 14,547 14,414 14,414

Total liabilities administered on behalf of Government 24,102 63,522 62,777 62,648 62,652

Net assets/(liabilities) (20,580) 4,131,505 4,234,823 4,331,587 4,422,795


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Table 3.2.9: Schedule of Budgeted Administered Cash Flows(for the period ended 30 June)


2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000


Net GST received 1,711 - - - -Other 113 575 431 431 431

Total cash received 1,824 575 431 431 431Cash used

Grant 742,565 941,665 949,414 941,157 920,209Subsidies paid 21,425 65,182 66,226 67,419 68,632Suppliers 111,388 300,100 365,398 374,149 374,271Employees 858 875 892 918 918Payments to CAC Bodies - 130,367 126,085 121,672 119,123Other - 116,261 102,924 93,512 94,999

Total cash used 876,236 1,554,450 1,610,939 1,598,827 1,578,152Net cash from (used by)

operating activities (874,412) (1,553,875) (1,610,508) (1,598,396) (1,577,721)INVESTING ACTIVITIESCash received

Interest* - 95,451 95,681 96,403 97,482Investments* - 3,505,236 3,505,236 3,505,236 3,505,236Transfers from other entities* - 22,895 - - -

Total cash received* - 3,623,582 3,600,917 3,601,639 3,602,718Cash used

Purchase of property, plantand equipment and intangibles 289 151 252 252 259

Investments* - 3,569,273 3,548,879 3,557,974 3,562,275Total cash used 289 3,569,424 3,549,131 3,558,226 3,562,534Net cash from (used by)

investing activities (289) 54,157 51,785 43,412 40,183Net increase (decrease) in

cash held (874,701) (1,499,718) (1,558,723) (1,554,984) (1,537,538)Cash and cash equivalents at

beginning of reporting period 5 5 22,900 35,749 40,646Cash from Official Public Account for:

- Appropriations 874,701 1,522,613 1,571,571 1,559,881 1,537,538Cash and cash equivalents at endof reporting period 5 22,900 35,748 40,646 40,646

Prepared on Australian Accounting Standards basis.*The 2013-14 figures are not for the full year, only from the time the accounts were transferred to PM&C. The losing agencies will be reporting on the 2013-14 figures.

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Table 3.2.10: Schedule of Administered Capital Budget StatementEstimated Budget Forward Forward Forward



Capital budget - Bill 1 (ACB) 289 151 252 252 259Total new capital appropriations 289 151 252 252 259

Provided for:Purchase of non-financial assets 289 151 252 252 259

Total Items 289 151 252 252 259PURCHASE OF NON-FINANCIAL

ASSETSFunded by capital appropriations1 289 151 252 252 259

TOTAL AMOUNT SPENT 289 151 252 252 259RECONCILIATION OF CASH


Total accrual purchases 289 151 252 252 259Total cash used to acquire assets 289 151 252 252 259Prepared on Australian Accounting Standards basis.1Includes both current Bill 2 and prior Act 2/4/6 appropriations and special capital appropriations.

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Table 3.2.11: Statement of Administered Asset Movements (2014-15)Asset Category

Property, Totalplant and

equipment$'000 $'000

As at 1 July 2014Gross book value 2,142 2,142Accumulated depreciation/amortisation

and impairment (214) (214)Opening net book balance 1,928 1,928

CAPITAL ASSET ADDITIONSEstimated expenditure on

new or replacement assetsBy purchase - appropriation ordinary 151 151

annual services1

Total additions 151 151

Other movementsDepreciation/amortisation expense (122) (122)

Total other movements (122) (122)As at 30 June 2015Gross book value 2,293 2,293Accumulated depreciation/amortisation

and impairment (336) (336)Closing net book balance 1,957 1,957Prepared on Australian Accounting Standards basis.1’Appropriation ordinary annual services’ refers to funding provided through Appropriation Bill (No.1) 2014-15 for depreciation / amortisation expenses, ACBs or other operational expenses.

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Aboriginal Hostels Limited


ABORIGINAL HOSTELS LIMITED

Section 1: Agency Overview and Resources...........................................................731.1 Strategic Direction Statement...............................................................................731.2 Agency Resource Statement................................................................................741.3 Budget Measures.................................................................................................75


Section 3: Explanatory Tables and Budgeted Financial Statements.....................813.1 Explanatory Tables...............................................................................................813.2 Budgeted Financial Statements............................................................................82

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ABORIGINAL HOSTELS LIMITED



Aboriginal Hostels Limited (AHL) is an Australian Government company subject to the Corporations Act 2001. AHL provides temporary accommodation to Aboriginal and Torres Strait Islander people through a national network of accommodation facilities. AHL contributes to the portfolio’s goals by providing accommodation that supports Aboriginal and Torres Strait Islander people to access educational, employment-related and health opportunities.

AHL provides safe, comfortable, culturally appropriate and affordable accommodation for Indigenous Australians who must live away from home to access services and labour markets.

In 2014-15 AHL will:

be an integral provider of, and an adviser on, accommodation that supports the Australian Government’s effort to overcome Aboriginal and Torres Strait Islander disadvantage

operate in locations of greatest need, in priority areas of education, training, employment and health

increase customer satisfaction and use of facilities

deliver a consistent standard of accommodation services, by service types, across Australia

sustainably manage and maintain its property portfolio

be agile in responding to challenges, trends and opportunities that support Government priorities, ongoing business efficiency and operating sustainably

pursue appropriate standards of workplace health and safety.

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Table 1.1 shows the total resources from all sources. The table summarises how resources are applied by outcome and by administered and departmental classification.

Table 1.1: AHL Resource Statement — Budget Estimates for 2014-15 as at Budget May 2014



2014–15 2014–15 2014–15 2013–14Source $'000 $'000 $'000 $'000

Opening balance/Reserves at bank 18,390 - 18,390 13,613

REVENUE FROM GOVERNMENTOrdinary annual services1

Outcome 1 - 38,058 38,058 38,374Total ordinary annual services - 38,058 38,058 38,374

Other services2

Non-operating - 1,244 1,244 4,918Total other services - 1,244 1,244 4,918Total annual appropriations - 39,302 39,302 43,292

Payments from related entities3

Amounts from other agenciesVictorian Government - - - (40)Northern Territory Government - 2,112 2,112 1,944Prime Minister and Cabinet (PM&C) - 1,695 1,695 1,180

Total - 3,807 3,807 3,084– Total funds from Government 18,390 43,109 61,499 59,989

FUNDS FROM OTHER SOURCESInterest - 440 440 438Sale of goods and services - 14,359 14,359 12,395Other - 22 22 217Total - 14,821 14,821 13,050

Total net resourcing for agency 18,390 57,930 76,320 73,039All figures are GST exclusive.Aboriginal Hostels Limited (AHL) is not directly appropriated as it is a CAC Act body.Appropriations are made to FMA Agency PM&C which are then paid to AHL and are considered 'departmental' for all purposes.1Appropriation Bill (No. 1) 2014–15.2Appropriation Bill (No. 2) 2014-15.3Funding provided by a Government body that is not specified within the annual appropriation bills payment to the CAC Act body.

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AHL Budget Statements

1.3 BUDGET MEASURES

Budget measures in Part 1 relating to AHL are detailed in Budget Paper No. 2 and are summarised below.

Table 1.2: AHL 2014-15 Budget MeasuresPart 1: Measures Announced Since the 2013-14 MYEFO

Programme 2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000

Expense measures Efficiency Dividend — a further temporaryincrease of 0.25 per cent 1.1

Departmental expenses - (98) (193) (289) (291)Total - (98) (193) (289) (291)

Total expense measuresDepartmental - (98) (193) (289) (291)

Total - (98) (193) (289) (291)

Prepared on a Government Finance Statistics (fiscal) basis.

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Government outcomes are the intended results, impacts or consequences of actions by Government on the Australian community. Australian Government programmes are the primary vehicle by which government agencies achieve the intended results of their outcome statements. Agencies are required to identify the programmes which contribute to government outcomes over the Budget and forward years.

Each outcome is described below together with its related programmes, specifying the performance indicators and targets used to assess and monitor the performance of Aboriginal Hostels Limited in achieving government outcomes.

Outcome 1: Improved access to education, employment, health and other services for Aboriginal and Torres Strait Islander people travelling or relocating through the operation of temporary hostel accommodation services.

Outcome 1 StrategyAHL delivers a network of accommodation services across Australia and provides special purpose, accommodation for Aboriginal and Torres Strait Islander people.

AHL delivers its accommodation to a consistent standard by service type. To maintain its network, AHL maintains a $100 million property portfolio.

AHL continues to undertake regular reviews of all activities and programmes to ensure that existing and new services align with its strategic objectives and Government priorities.

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Table 2.1 provides an overview of the total expenses for Outcome 1 by programme.

Table 2.1: Budgeted Expenses for Outcome 1Outcome 1: Improved access to education, employment, 2013–14 2014–15health and other services for Aboriginal and Torres Strait Estimated EstimatedIslander people travelling or relocating through the actual expensesoperation of temporary hostel accommodation services. expenses

$'000 $'000Programme 1.1: Company Operated HostelsRevenue from Government

Ordinary annual services (Appropriation Bill No. 1) 34,174 36,216Revenues from other independent sources 16,134 18,628

Total for Programme 1.1 50,308 54,844Programme 1.2: Community Operated HostelsRevenue from Government

Ordinary annual services (Appropriation Bill No. 1) 4,200 1,842

Total for Programme 1.2 4,200 1,842Outcome 1 Totals by resource typeRevenue from Government

Ordinary annual services (Appropriation Bill No. 1) 38,374 38,058Revenues from other independent sources 20,272 18,628

Total expenses for Outcome 1 58,646 56,6862013–14 2014–15

Average Staffing Level (number) 406 396

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Contributions to Outcome 1 AHL has two programmes: Programme 1.1 Company Operated Hostels, and Programme 1.2 Community Operated Hostels which contribute to the delivery of the company’s single outcome.

Programme 1.1 Company Operated Hostels


To provide temporary accommodation that assists Indigenous Australians who must live away from home to access services and economic opportunity.

Programme 1.1 Revenue

AHL is budgeting for a decrease in total revenue from government of $0.3 million in

2014-15 which includes the impact of the Government’s 2.5% efficiency dividend.

This programme includes:

an internal allocated increase to Programme 1.1 of $2 million.

This revenue will be supplemented by an estimated $2.5 million increase in revenue from independent sources.

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AHL is budgeting for an overall net increase of $0.4 million in expenses in 2014-15.

The company will continue to deliver a significant programme of planned maintenance and capital investment during 2014-15 to deliver greater consistency in the standard of accommodation across all facilities.

The company will continue to efficiently manage the on-going delivery of quality services within budget.

2013–14 2014–15 2015–16 2016–17 2017–18Estimated Budget Forward Forward Forward


Annual departmental expenses:Departmental item 54,446 54,844 56,233 56,253 56,698

Total programme expenses 54,446 54,844 56,233 56,253 56,698


number of resident bed nights available for use per annum.


actual estimate estimate estimateNumber of resident bed nights per annum 698,701 694,250 696,732 695,748 695,748

The number of beds available for use by prospective AHL residents at any particular time will be adjusted as required to account for:

rooms closed for planned maintenance

rooms closed for unplanned repairs and maintenance (including repairing damage from natural disasters, storms, fires, floods and other events)

rooms occupied by ‘in residence’ employees.

Programme 1.1 Key Performance Indicators Occupancy level as a percentage of resident bed nights available.


actual estimate estimate estimateMinimum occupancy level targets as apercentage of bed nights available 70% 70% 70% 70% 70%

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Programme 1.2: Community Operated Hostels


To provide support to Community-operated hostels which provide temporary accommodation for Indigenous Australians who must live away from home to access services and economic opportunity.


The Corporate and Community Partnerships Programme (CCPP) is expected to reduce as a result of portfolio programme consolidation in 2014-15.



Annual departmental expenses:Departmental item 4,200 1,842 - - -

Total programme expenses 4,200 1,842 - - -


number of available beds.


actual estimate estimate estimateEstimated number of available beds 741 395 - - -

Programme 1.2 Key Performance Indicators Occupancy as a percentage of resident bed nights.


actual estimate estimate estimateOccupancy as a % of resident bed nights 70% 70% - - -

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3.1.1 Movement of Administered Funds between YearsAHL has no administered funds in 2014-15.

3.1.2 Special AccountsAHL has no special accounts in 2014-15.

3.1.3 Australian Government Indigenous Expenditure

Table 3.1.3: Australian Government Indigenous Expenditure (AGIE)Other Total Programme

Bill Bill TotalNo. 1 No. 2 approp$'000 $'000 $'000 $'000 $'000

Aboriginal Hostels LtdOutcome 1Departmental 2014–15 36,216 1,244 37,460 18,628 56,088 1.1Departmental 2013–14 34,174 4,918 39,092 16,134 55,226 1.1Departmental 2014–15 1,842 - 1,842 - 1,842 1.2Departmental 2013–14 4,200 - 4,200 - 4,200 1.2Total outcome 2014–15 38,058 1,244 39,302 18,628 57,930Total outcome 2013–14 38,374 4,918 43,292 16,134 59,426

Total departmental 2014–15 38,058 1,244 39,302 18,628 57,930Total departmental 2013–14 38,374 4,918 43,292 16,134 59,426

Total AGIE 2014–15 38,058 1,244 39,302 18,628 57,930Total AGIE 2013–14 38,374 4,918 43,292 16,134 59,426

Appropriations

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3.2.1 Differences in Agency Resourcing and Financial StatementsTable 3.2.1 recognises the full year revenue for 2014–15 on the basis of accrual accounting principles. However the impact of complying with Accounting Standard 1004 Contributions, is that revenue received from other government agencies is to be recognised in the year when the funding is due and received, which is not necessarily the year that the funding is to be spent.

There are no significant differences between the resource information presented in the Budget Papers and Portfolio Budget Statements (PB Statements) as a result of differences between Australian Accounting Standards (AAS) and Government Finance Statistics (GFS). Furthermore, there are no differences which arise because of related entity transactions.

3.2.2 Analysis of Budgeted Financial StatementsAn analysis of the primary causes of movements from the financial statements published in the 2013–14 Portfolio Budget Statements is provided below.

Departmental

Income and expenses

AHL is implementing a new tariff model which more accurately estimates expected tariff income across AHL’s accommodation network. AHL will continue to maximise occupancy through targeted marketing and facility refurbishment.

AHL is expecting an increase in depreciation and amortisation expenses in 2014-15 as facility and IT upgrades are capitalised in 2014-15.

Balance Sheet

The major variation between actual expected results for 2013-14 and the budget for 2014-15 is explained by the divestment of properties and reduction in the CCPP. Expected budget implications can be seen as movements in reported:

cash and cash equivalents

land, buildings, IT asset values and associated reserves.

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3.2.3 Budgeted Financial Statements TablesTable 3.2.1: Comprehensive Income Statement (Showing Net Cost of Services)(for the period ended 30 June)


2013–14 2014–15 2015–16 2016–17 2017–18$'000 $'000 $'000 $'000 $'000

EXPENSESEmployee benefits 30,218 28,986 29,277 29,571 29,870Suppliers 20,202 21,738 22,468 22,184 22,320Grants 4,200 1,842 - - -Depreciation and amortisation 4,043 4,171 4,171 4,171 4,171Other expenses 300 308 317 327 337Total expenses 58,963 57,045 56,233 56,253 56,698LESS: OWN-SOURCE INCOMEOwn-source revenueSale of goods and rendering of services 12,395 14,359 14,129 14,263 14,398Interest 438 440 505 505 505Other 3,301 3,829 3,886 3,944 4,004Total own-source revenue 16,134 18,628 18,520 18,712 18,907GainsSale of assets 317 359 - - -Total gains 317 359 - - -Total own-source income 16,451 18,987 18,520 18,712 18,907Net cost of services 42,512 38,058 37,713 37,541 37,791Revenue from Government 38,374 38,058 37,713 37,541 37,791* * * *Surplus (Deficit) attributable to

the Australian Government (4,138) - - - -Total comprehensive income (4,138) - - - -Total comprehensive income

attributable to the Australian Government (4,138) - - - -


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actual estimate estimate estimate estimate2013–14 2014–15 2015–16 2016–17 2017–18


Cash and cash equivalents 18,390 20,545 22,607 25,811 28,446 Trade and other receivables 3,168 3,168 3,168 3,168 3,168


Land and buildings 132,374 132,629 130,423 128,222 126,416 Property, plant and equipment 3,745 3,107 2,469 1,827 1,068 Intangibles 142 86 86 86 86 Other non-financial assets 1,375 1,325 1,219 1,113 1,007


Suppliers 3,448 3,448 3,448 3,448 3,258 Other payables 553 509 466 423 387

Total payables 4,001 3,957 3,914 3,871 3,645 Provisions

Employee provisions 5,473 5,939 5,094 5,392 5,582 Total provisions 5,473 5,939 5,094 5,392 5,582 Total liabilities 9,474 9,896 9,008 9,263 9,227 Net assets 149,720 150,964 150,964 150,964 150,964 EQUITY*Parent entity interest

Contributed equity 92,999 94,243 94,243 94,243 94,243Reserves 66,689 64,093 62,040 60,090 60,090Retained surplus

(accumulated deficit) (9,968) (7,372) (5,319) (3,369) (3,369) Total parent entity interest 149,720 150,964 150,964 150,964 150,964Total Equity 149,720 150,964 150,964 150,964 150,964Prepared on Australian Accounting Standards basis.*'Equity' is the residual interest in assets after deduction of liabilities.

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Retained Asset Contributed Totalearnings revaluation equity/ equity

reserve capital$'000 $'000 $'000 $'000


previous period (9,968) 66,689 92,999 149,720Adjusted opening balance (9,968) 66,689 92,999 149,720Comprehensive income

Surplus (deficit) for the period - - - -

Total comprehensive income - - - -

Transactions with ownersContributions by owners

Equity Injection - Appropriation - - 1,244 1,244Sub-total transactions with owners - - 1,244 1,244

Transfers between equitycomponents 2,596 (2,596) - -

Estimated closing balanceas at 30 June 2015 (7,372) 64,093 94,243 150,964

Closing balance attributable to the Australian Government (7,372) 64,093 94,243 150,964


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Table 3.2.4: Budgeted Departmental Statement of Cash Flows(for the period ended 30 June)


2013–14 2014–15 2015–16 2016–17 2017–18$'000 $'000 $'000 $'000 $'000


Appropriations 38,374 38,058 37,713 37,541 37,791Sale of goods and rendering of services 12,096 14,051 13,812 13,936 14,061Interest 438 440 505 505 505Net GST received 3,000 3,000 - - -Other 3,301 3,829 3,886 3,944 4,004


Employees 29,843 28,521 30,122 29,273 29,680Suppliers 23,203 24,737 22,468 22,184 22,510Other 4,317 2,075 43 43 36


operating activities (154) 4,045 3,283 4,426 4,135INVESTING ACTIVITIESCash received

Proceeds from sales of property,plant and equipment 1,705 3,778 - - -

Total cash received 1,705 3,778 - - -Cash used

Purchase of property, plant and equipment 1,692 6,912 1,221 1,222 1,500


investing activities 13 (3,134) (1,221) (1,222) (1,500)FINANCING ACTIVITIESCash received

Contributed equity 4,918 1,244 - - -Total cash received 4,918 1,244 - - -Net cash from (used by)

financing activities 4,918 1,244 - - -Net increase in cash held 4,777 2,155 2,062 3,204 2,635

Cash and cash equivalents at thebeginning of the reporting period 13,613 18,390 20,545 22,607 25,811

Cash and cash equivalents at the end of the reporting period 18,390 20,545 22,607 25,811 28,446


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actual estimate estimate estimate estimate2013–14 2014–15 2015–16 2016–17 2017–18


Equity injections - Bill 2 4,918 1,244 - - -Total new capital appropriations 4,918 1,244 - - -

Provided for:Purchase of non-financial assets 4,918 1,244 - - -

Total Items 4,918 1,244 - - -PURCHASE OF NON-FINANCIAL

ASSETSFunded by capital appropriations1 471 1,244 - - -Funded internally from

departmental resources2 1,221 5,668 1,221 1,222 1,500

TOTAL 1,692 6,912 1,221 1,222 1,500

RECONCILIATION OF CASHUSED TO ACQUIRE ASSETSTO ASSET MOVEMENT TABLE

Total purchases 1,692 6,912 1,221 1,222 1,500Total cash used to acquire assets 1,692 6,912 1,221 1,222 1,500

Prepared on Australian Accounting Standards basis.1Includes both current and prior Bill 2/4/6 appropriations and special capital appropriations.2Does not include annual finance lease costs. Includes purchase from current and previous years' Departmental Capital Budgets (DCBs).

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Table 3.2.6: Statement of Asset Movements (2014-15)Asset Category

Land Buildings Other property, Heritage Computer Totalplant and and cultural software and

equipment intangibles$'000 $'000 $'000 $'000 $'000 $'000

As at 1 July 2014Gross book value 41,730 97,168 7,848 1,403 415 148,564Accumulated depreciation/amortisation

and impairment - (6,524) (4,103) (28) (273) (10,928)Opening net book balance 41,730 90,644 3,745 1,375 142 137,636CAPITAL ASSET ADDITIONSEstimated expenditure on

new or replacement assetsBy purchase – appropriation equity1 - 1,244 - - - 1,244By purchase – appropriation ordinary

annual services2 - 5,247 421 - - 5,668Total additions - 6,491 421 - - 6,912Other movementsDepreciation/amortisation expense - (3,006) (1,059) (50) (56) (4,171)Disposals3

From disposal of entities or operations(including restructuring) (1,800) (1,430) - - - (3,230)

Total other movements (1,800) (4,436) (1,059) (50) (56) (7,401)As at 30 June 2015Gross book value 39,930 101,949 8,269 1,403 415 151,966Accumulated depreciation/amortisation

and impairment - (9,250) (5,162) (78) (329) (14,819)Closing net book balance 39,930 92,699 3,107 1,325 86 137,147

1'Appropriation equity' refers to equity injections or administered assets and liabilities appropriations provided through Appropriation Bill (No. 2) 2014–15, including CDABs.

2'Appropriation ordinary annual services' refers to funding provided through Appropriation Bill (No. 1) 2014–15 for depreciation / amortisation expenses, DCBs or other operational expenses.

3Net proceeds may be returned to the OPA.

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3.2.4 Notes to the Financial StatementsAccounting PoliciesThe financial statements have been prepared in accordance with Australian Equivalent of International Financial Reporting Standards (AEIFRS) and other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001.

The financial statements are prepared on an accrual basis and in accordance with historical cost convention, with the exception of revenue from contributions received from other government entities. Under accounting standard AASB 1004 Contributions, this revenue must be reported in the year it is due and payable, which is not necessarily in the year the funding will be spent.

The accounting policies adopted that underpin these statements are consistent with those applied in 2013–14.

Reference should be made to AHL’s Financial Statements in the 2013-14 Annual Report for detailed disclosure of AHL’s accounting policies.

Asset ValuationsAssets were not independently revalued in 2013-14, the next independent revaluation of AHL’s Land, Buildings Art and Artefacts is planned to be undertaken as at 30 June 2015.

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Australian National Audit Office


AUSTRALIAN NATIONAL AUDIT OFFICE

Section 1: Agency Overview and Resources...........................................................951.1 Strategic Direction................................................................................................951.2 Agency Resource Statement................................................................................961.3 Agency Measures Table.......................................................................................98


Section 3: Explanatory Tables and Budgeted Financial Statements...................1063.1 Explanatory Tables.............................................................................................1063.2 Budgeted Financial Statements..........................................................................107

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AUSTRALIAN NATIONAL AUDIT OFFICE



The Australian National Audit Office’s (ANAO) vision is to be an international leader in the provision of independent public sector audit and related services.

The ANAO’s strategic direction is focussed on meeting statutory obligations and stimulating improvements in public administration.

In 2014-15, the emphasis will be on implementing initiatives to:

ensure our services are high quality and provide insights into better public administration

drive productivity improvements and support the long term sustainability for our audit programmes

strengthen our leadership capability and succession planning to support agility in a complex and dynamic audit environment

strengthen the understanding amongst stakeholders of our role and services.

These initiatives support ANAO values and will be met through the implementation of the ANAO’s objectives and strategies in four key focus areas:

independent and responsive

value adding services

capability to deliver world class services

confidence in the delivery of our services.

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The ANAO charges an audit fee for the financial statement audits of Commonwealth authorities, companies and their subsidiaries subject to the Commonwealth Authorities and Companies Act 1997. These fees are based on a scale determined by the Auditor-General under Section 14 of the Auditor-General Act 1997, calculated on the basis of a cost attribution model. Revenues from these audit fees are paid into the Official Public Account and are not available to the ANAO. The revenue and receipts are shown in Table 3.2.7 (Schedule of budgeted income and expenses administered on behalf of Government) and Table 3.2.9 (Schedule of budgeted administered cash flows), respectively.

The ANAO is also permitted to charge for ‘audits by arrangement’ under section 20(2) of the Auditor-General Act 1997. The revenue is shown as sales of goods and rendering of services in Table 3.2.1 (Comprehensive Income Statement).

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ANAO Budget Statements

Table 1.1: ANAO Resource Statement — Budget Estimates for 2014-15 as at Budget May 2014



2014-15 2014-15 2014-15 2013-14$'000 $'000 $'000 $'000


Departmental appropriationPrior year departmental appropriation2 32,942 - 32,942 31,577 Departmental appropriation3 - 73,799 73,799 75,266 s31 Relevant agency receipts4 - 3,500 3,500 3,500 Total 32,942 77,299 110,241 110,343

Total ordinary annual services A 32,942 77,299 110,241 110,343

Other services

Total other services B - - - -

Total available annual appropriations 32,942 77,299 110,241 110,343


by criteria/entitlementAuditor-General remuneration and

expense - Auditor-General Act 1997 Schedule 1, sections 3 and 7 - 626 626 598

Total special appropriations C - 626 626 598

Total appropriations excluding Special Accounts 32,942 77,925 110,867 110,941

Total Special Account D - - - -

Total resourcingA+B+C+D 32,942 77,925 110,867 110,941 Total net resourcing for agency 32,942 77,925 110,867 110,941

Note: All figures are GST exclusive.1Appropriation Bill (No.1) 2014-15.2Estimated adjusted balance carried forward from previous year.3Includes an amount of $1.0 million in 2014-15 for the Departmental Capital Budget (refer to table 3.2.5 for further details). For accounting purposes this amount has been designated as 'contributions by owners'.4s31 relevant agency receipts — estimate.

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1.3 AGENCY MEASURES TABLE

Budget measures relating to the ANAO are detailed in Budget Paper No. 2 and are summarised below.

Table 1.2: ANAO 2014-15 Budget MeasuresPart 1: Measures Announced Since the 2013-14 MYEFO

Programme 2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000

Expense measuresDecrease in estimates (departmental)

Efficiency Dividend — a further temporary increase of 0.25 per cent All

Departmental expenses - (187) (372) (553) (556) Total - (187) (372) (553) (556)

Total expense measuresDepartmental - (187) (372) (553) (556)

Total - (187) (372) (553) (556)


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The ANAO’s outcome is described below together with its related programmes, specifying the performance indicators and targets used to assess and monitor the performance of the ANAO in achieving Government outcomes.

The ANAO has management information systems in place to allow it to fully cost all audit and support activities. All audit-related costs are directly costed to the relevant audit or related services. All other costs not directly attributable to audits or related services are allocated having regard to the nature of the expenditure.

Outcome 1: To improve public sector performance and accountability through independent reporting on Australian Government administration to Parliament, the Executive and the public.

Outcome 1 StrategyThe key strategy by which the ANAO will seek to achieve this outcome is through its audit services, which include:

financial statement audits of Australian Government entities

performance audits of Australian Government programmes and entities

The ANAO audits the annual financial statements of Australian Government entities and the Consolidated Financial Statements of the Australian Government. The Consolidated Financial Statements present the consolidated Whole-of-Government financial result inclusive of all Australian Government controlled entities, including entities outside the general government sector. These audits are designed to give assurance to stakeholders that an entity’s financial statements fairly represented its financial operations and financial position at year end.

the ANAO also undertakes a range of assurance reviews, including an assurance review of Defence Materiel Organisation major projects

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The ANAO’s performance audit activities involve the audit of all or part of an entity’s operations to assess its efficiency or administrative effectiveness. The ANAO identifies areas where improvements can be made to aspects of public administration, and makes specific recommendations to assist public sector agencies improve their programme management.

The performance audit activity also extends to conducting performance audits of Commonwealth partners, which are those bodies (for example: grant recipients or contractors) that receive money directly or indirectly from the Commonwealth for a particular purpose. Such audits may be conducted only to the extent that they assess the operations of the Commonwealth partner in relation to achieving the Commonwealth purpose. This power also extends to state and territory bodies that receive money from the Commonwealth if the audit is conducted at the request of the Joint Committee of Public Accounts and Audit or the responsible Commonwealth Minister.

The ANAO also contributes to improvements in Commonwealth public administration by identifying and promoting better practice that assists agencies to perform at their most efficient level, and adds value to their outputs and services. Adopting better practices can help transform and improve business processes and potentially can lead to overall improvements in the administration of the entity as a whole.

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Table 2.1: Budgeted Expenses for Outcome 12013-14 2014-15

Estimated Estimatedactual expenses

expenses$'000 $'000

Programme 1.1: Assurance Audit ServicesDepartmental expenses

Departmental appropriation1 46,888 47,544 Special appropriations 299 313


Total for Programme 1.1 48,255 48,925

Programme 1.2: Performance Audit ServicesDepartmental expenses



Total for Programme 1.2 30,210 29,894 Outcome 1 Totals by appropriation typeDepartmental expenses



Total expenses for Outcome 1 78,465 78,819 2013-14 2014-15


Outcome 1: To improve public sector performance and accountability through independent reporting on Australian Government administration to Parliament, the Executive and the public.

1Departmental appropriation combines ‘Ordinary annual services (Appropriation Bill No. 1)’ and ‘Revenue from independent sources (s31)’.2Expenses not requiring appropriation in the Budget year is made up of depreciation and amortisation expense.

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Programme 1.1: Assurance Audit Services

Programme Objective


to provide assurance on the fair presentation of financial statements of the Australian Government and its entities by providing independent audit opinions and related reports for the information of Parliament, the Executive and the public

to contribute to improvements in the financial administration of Australian Government entities

to contribute to the auditing profession and public sector developments nationally and internationally.

Programme Expenses

Expenditure includes Employee Expenses (48%), Supplier Expenses (50%) and Depreciation and Amortisation Expense (2%).

2013-14 2014-15 2015-16 2016-17 2017-18Revised Budget Forward Forward Forwardbudget year 1 year 2 year 3

$'000 $'000 $'000 $'000 $'000Special Appropriations:

Auditor-General remuneration and expenses - Auditor-General Act 1997 299 313 322 332 342

Annual departmental expenses:Employee expenses 22,879 23,066 23,376 23,509 23,536 Supplier expenses 24,009 24,478 24,325 24,360 24,967

Expenses not requiring appropriation inthe Budget year1 1,068 1,068 1,068 1,068 1,068

Total programme expenses 48,255 48,925 49,091 49,269 49,913 1Expenses not requiring appropriation in the Budget year is made up of depreciation and amortisation expense.

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Programme Deliverables

The deliverables for the primary components of this programme are listed below.


Number of financial statement audit opinions issued 260 260 260 260 260

Number of other assurance reports produced1 60 60 60 60 60

Number of financial statement related reports produced 2 2 2 2 2

Number of engagements that contribute to public sector auditing and support developing nations

20 20 20 20 20

1Includes DMO Major Projects report.

Programme Key Performance Indicators2013-14 2014-15 2015-16 2016-17 2017-18Revised Budget Forward Forward Forwardbudget target year 1 year 2 year 3

Percentage of Parliamentarians surveyed expressing satisfaction with assurance provided by ANAO audit opinions issued in relation to the financial statements of the Australian Government and its entities

90% 90% 90% 90% 90%

Percentage of Australian Government entities that are provided with an audit opinion for tabling in the Parliament

100% 100% 100% 100% 100%

Percentage of Australian Government entities that acknowledge the value added by ANAO services

90% 90% 90% 90% 90%

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Programme 1.2: Performance Audit Services

Programme Objective


to report objectively on the performance of Australian Government programmes and entities, including opportunities for improvement, by undertaking a programme of independent performance audits and related reports for the information of Parliament, the Executive and the public

to contribute to improvements in Australian Government administration by identifying and promoting better practice

to contribute to the auditing profession and public sector developments nationally and internationally.

Programme Expenses

Expenditure includes Employee Expenses (71%), Supplier Expenses (26%) and Depreciation and Amortisation Expense (3%).


$'000 $'000 $'000 $'000 $'000Special Appropriations:

Auditor-General remuneration and expenses - Auditor-General Act 1997 299 313 322 332 342

Annual departmental expenses:Employee expenses 19,982 21,025 21,283 21,413 21,458 Supplier expenses 9,090 7,717 6,815 5,830 5,641

Expenses not requiring appropriation inthe Budget year1 839 839 839 839 839

Total programme expenses 30,210 29,894 29,259 28,414 28,280 1Expenses not requiring appropriation in the Budget year is made up of depreciation and amortisation expense.

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Programme Deliverables

The deliverables for the primary components of this programme are listed below.

2013-14 2014-15 2015-16 2016-17 2017-18Revised Budget Forward Forward Forward

budget year 1 year 2 year 3Number of performance audit reports presented1 50 49 48 47 47

Number of Better Practice Guides and other reports produced 3 3 3 3 3

Number of appearances and submissions to Parliamentary committees

20 20 20 20 20

Number of engagements that contribute to public sector auditing and support developing nations

20 20 20 20 20

1These deliverables are dependent on ANAO capacity, and changes to the public sector environment which influences the scale and scope of performance audits undertaken.

Programme Key Performance Indicators2013-14 2014-15 2015-16 2016-17 2017-18Revised Budget Forward Forward Forwardbudget target year 1 year 2 year 3

Percentage of Parliamentarians surveyed expressing satisfaction with ANAO services directed towards improving Australian Government administration

90% 90% 90% 90% 90%

Percentage of recommendations included in performance audit reports agreed by audited entities

90% 90% 90% 90% 90%

Percentage of Australian Government entities that acknowledge the value added by ANAO services

90% 90% 90% 90% 90%

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3.1.1 Movement of Administered Funds Between YearsThe ANAO does not have any movement of administered funds between years.

3.1.2 Special AccountsThe ANAO does not have any special accounts.

3.1.3 Australian Government Indigenous ExpenditureThe ANAO does not administer any Indigenous spending programmes. The ANAO does undertake financial statement audits of Indigenous entities, and of agencies administering Indigenous programmes, and also undertakes performance audits of Indigenous related programmes.

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3.2.1 Differences in Agency Resourcing and Financial StatementsThe Agency Resource Statement (Table 1.1) provides a consolidated view of all the resources available to an agency in 2014-15. This includes appropriation receivable that is yet to be drawn down to cover payables and provisions on the Balance Sheet. The Comprehensive Income Statement (Table 3.2.1) shows the operating appropriation provided in 2014-15.


Comprehensive Income Statement

Total income in 2014-15 is budgeted at $76.9 million (2013-14: $78.5 million). Revenue from Government (appropriation funding) has decreased from $75.0 million to $73.4 million. This mainly reflects funding reductions arising from efficiency dividends and other savings measures.

Other revenue is expected to remain steady at $3.5 million. This revenue relates to:

international project funding of $1.8 million to support the Indonesian Board of Audit and the Papua New Guinea Auditor-General’s Office

own sourced revenue, of $1.7 million, for ‘audits by arrangement’ under section 20(2) of the Auditor-General Act 1997 and building sublease income.

Operating expenses for 2014-15 are estimated to total $78.8 million (2013-14: $78.5 million).

Balance Sheet

The Departmental Balance Sheet shows the ANAO’s net asset position remaining strong and stable.

At this point, no major financial transactions have been planned for 2014-15 and the total assets and liabilities values are expected to remain stable.

Statement of Cash Flows

The cash flow is consistent with, and representative of, the transactions reported in the Comprehensive Income Statement, adjusted for non-cash items and anticipated capital purchases.

The ANAO’s working cash balance is in accordance with the ANAO’s agreement with the Department of Finance.

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Capital Budget Statement

The Departmental Capital Budget Statement shows the expected capital works programme for the current and forward years. Total capital expenditure in 2014-15 is estimated to be $1.0 million. In addition, the ANAO forecasts spending a further $3.0 million over the forward estimates.

Administered

Schedule of Budgeted Income and Expenses Administered on Behalf of Government

Estimated revenues from the provision of audit services to certain Australian Government agencies reflect the estimated recovery of audit costs.

Schedule of Budgeted Assets and Liabilities Administered on Behalf of Government

The estimated administered assets and liabilities relate to ongoing audit activity. No non-financial administered assets are held.

Schedule of Budgeted Administered Cash Flows

Administered monies are transferred to the Official Pubic Account on an ongoing basis.

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3.2.3 Budgeted Financial Statements TablesTable 3.2.1 Comprehensive Income Statement (Showing Net Cost of Services)(for the period ended 30 June)


2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000

EXPENSESEmployee benefits 43,459 44,717 45,303 45,586 45,678 Suppliers 33,099 32,195 31,140 30,190 30,608 Depreciation and amortisation 1,907 1,907 1,907 1,907 1,907 Total expenses 78,465 78,819 78,350 77,683 78,193 LESS: OWN-SOURCE INCOMEOwn-source revenueRendering of services 1,500 1,500 1,500 1,500 1,500 Rental income 200 200 200 200 200 International development funding 1,800 1,800 1,800 1,800 1,800 Total own-source revenue 3,500 3,500 3,500 3,500 3,500 Total own-source income 3,500 3,500 3,500 3,500 3,500 Net cost of (contribution by)

services 74,965 75,319 74,850 74,183 74,693 Revenue from Government 74,965 73,412 72,943 72,276 72,786 * * * *Surplus (Deficit) attributable to

the Australian Government - (1,907) (1,907) (1,907) (1,907) Total comprehensive income (loss)

attributable to the Australian Government - (1,907) (1,907) (1,907) (1,907)

Note: Impact of Net Cash Appropriation Arrangements2012-13 2013-14 2014-15 2015-16 2016-17

$'000 $'000 $'000 $'000 $'000Total Comprehensive Income

(loss) less depreciation/amortisationexpenses previously funded throughrevenue appropriations 1,907 - - - -

plus depreciation/amortisation expensespreviously funded through revenueappropriations1 1,907 1,907 1,907 1,907 1,907

Total Comprehensive Income (loss) - as per the Statement ofComprehensive Income - (1,907) (1,907) (1,907) (1,907)


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Cash and cash equivalents 649 649 649 649 649 Trade and other receivables 34,192 33,994 33,796 33,598 33,400 Other 219 219 219 219 219

Total financial assets 35,060 34,862 34,664 34,466 34,268

Non-financial assetsLand and buildings 3,681 2,831 1,981 1,131 281 Property, plant and equipment 1,326 1,737 1,497 1,248 1,546 Intangibles 1,717 1,262 1,449 1,638 1,287 Other 857 857 857 857 857

Total non-financial assets 7,581 6,687 5,784 4,874 3,971 Total assets 42,641 41,549 40,448 39,340 38,239

LIABILITIESPayables

Suppliers 2,952 2,952 2,952 2,952 2,952 Operating lease 836 638 440 242 44

Total payables 3,788 3,590 3,392 3,194 2,996

ProvisionsEmployee provisions 14,721 14,721 14,721 14,721 14,721

Total provisions 14,721 14,721 14,721 14,721 14,721 Total liabilities 18,509 18,311 18,113 17,915 17,717

Net assets 24,132 23,238 22,335 21,425 20,522 EQUITY*Parent entity interest

Contributed equity 9,572 10,585 11,589 12,586 13,590 Reserves 626 626 626 626 626 Retained surplus 13,934 12,027 10,120 8,213 6,306

Total Equity 24,132 23,238 22,335 21,425 20,522 Prepared on Australian Accounting Standards basis.*‘Equity’ is the residual interest in assets after deduction of liabilities.

110


Table 3.2.3: Departmental Statement of Changes in Equity — Summary of Movement (Budget year 2014-15)


reserve capital$'000 $'000 $'000 $'000


previous period 13,934 626 9,572 24,132 Adjusted opening balance 13,934 626 9,572 24,132

Comprehensive incomeSurplus (deficit) for the period (1,907) - - (1,907)

Total comprehensive income (1,907) - - (1,907)

Transactions with ownersContributions by owners

Departmental Capital Budget (DCBs) - - 1,013 1,013 Sub-total transactions with owners - - 1,013 1,013

Estimated closing balanceas at 30 June 2015 12,027 626 10,585 23,238

Closing balance attributable to the Australian Government 12,027 626 10,585 23,238


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2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000


Appropriations 73,595 73,610 73,141 72,474 72,984 Rendering of services 1,500 1,500 1,500 1,500 1,500 Rent 200 200 200 200 200 International development funding 1,800 1,800 1,800 1,800 1,800

Total cash received 77,095 77,110 76,641 75,974 76,484

Cash usedEmployees 43,459 44,717 45,303 45,586 45,678 Suppliers 33,356 32,393 31,338 30,388 30,806

Total cash used 76,815 77,110 76,641 75,974 76,484 Net cash from (used by)

operating activities 280 - - - -

INVESTING ACTIVITIESCash used

Purchase of property, plant and equipment 285 651 154 285 538 Purchase of intangibles 894 362 850 712 466

Total cash used 1,179 1,013 1,004 997 1,004 Net cash from (used by)

investing activities (1,179) (1,013) (1,004) (997) (1,004) FINANCING ACTIVITIESCash received

Contributed equity 899 1,013 1,004 997 1,004 Total cash received 899 1,013 1,004 997 1,004 Net cash from (used by)

financing activities 899 1,013 1,004 997 1,004 Net increase (decrease)

in cash held - - - - - Cash and cash equivalents at the

beginning of the reporting period 649 649 649 649 649 Cash and cash equivalents at the

end of the reporting period 649 649 649 649 649


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Capital budget - Bill 1 (DCB) 899 1,013 1,004 997 1,004 Total new capital appropriations 899 1,013 1,004 997 1,004

Provided for:Purchase of non-financial assets 899 1,013 1,004 997 1,004

Total Items 899 1,013 1,004 997 1,004 PURCHASE OF NON-FINANCIAL

ASSETSFunded by capital appropriation - DCB1 1,179 1,013 1,004 997 1,004

TOTAL 1,179 1,013 1,004 997 1,004 RECONCILIATION OF CASH


Total purchases 1,179 1,013 1,004 997 1,004 Total cash used to acquire assets 1,179 1,013 1,004 997 1,004 Prepared on Australian Accounting Standards basis.DCB = Departmental Capital Budget.1Includes purchases from current and previous year’s Departmental Capital Budgets.

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Buildings Other property, Computer Totalplant and software and

equipment intangibles$'000 $'000 $'000 $'000

As at 1 July 2014Gross book value 4,632 1,688 5,618 11,938Accumulated depreciation/amortisation

and impairment (951) (362) (3,901) (5,214)Opening net book balance 3,681 1,326 1,717 6,724CAPITAL ASSET ADDITIONSEstimated expenditure on

new or replacement assetsBy purchase - appropriation ordinary

annual services1 - 651 362 1,013Total additions - 651 362 1,013Other movementsDepreciation/amortisation expense (850) (240) (817) (1,907)Total other movements (850) (240) (817) (1,907)As at 30 June 2015Gross book value 4,632 2,339 5,980 12,951Accumulated depreciation/amortisation

and impairment 101 122 3,084 3,307Closing net book balance 4,733 2,461 9,064 16,258Prepared on Australian Accounting Standards basis.1‘Appropriation ordinary annual services’ refers to funding provided through Appropriation Bill (No.1) 2014-15 for depreciation / amortisation expenses, DCBs or other operational expenses.

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2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000

OWN-SOURCE INCOMEOwn-source revenueNon-taxation revenue

Rendering of services 12,500 12,650 13,000 13,150 13,300 Total non-taxation revenue 12,500 12,650 13,000 13,150 13,300 Total own-source revenues

administered on behalf of Government 12,500 12,650 13,000 13,150 13,300

Total own-sourced incomeadministered on behalf ofGovernment 12,500 12,650 13,000 13,150 13,300

Net Cost of (contribution by)services 12,500 12,650 13,000 13,150 13,300

Surplus (Deficit) 12,500 12,650 13,000 13,150 13,300 Total comprehensive income (loss) 12,500 12,650 13,000 13,150 13,300


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2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000


Receivables 4,686 4,686 4,686 4,686 4,686 Other 1,445 1,445 1,445 1,445 1,445

Total financial assets 6,131 6,131 6,131 6,131 6,131 Total assets administered

on behalf of Government 6,131 6,131 6,131 6,131 6,131 LIABILITIESPayables

Suppliers 426 426 426 426 426 Total payables 426 426 426 426 426 Total liabilities administered

on behalf of Government 426 426 426 426 426Net assets/(liabilities) 5,705 5,705 5,705 5,705 5,705Prepared on Australian Accounting Standards basis.

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2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000


Rendering of services 12,500 12,650 13,000 13,150 13,300 Total cash received 12,500 12,650 13,000 13,150 13,300

Cash usedOther 12,500 12,650 13,000 13,150 13,300


operating activities - - - - - Cash and cash equivalents at the

beginning of the reporting period - - - - - Cash and cash equivalents at the

end of the reporting period - - - - -


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Australian Public Service Commission


AUSTRALIAN PUBLIC SERVICE COMMISSION

Section 1: Agency Overview and Resources.........................................................1231.1 Strategic Direction Statement.............................................................................1231.2 Agency Resource Statement..............................................................................1241.3 Budget Measures...............................................................................................126

Section 2: Outcomes and Planned Performance..................................................1272.1 Outcomes and Performance Information............................................................127


121

AUSTRALIAN PUBLIC SERVICE COMMISSION



The planned outcome of the Australian Public Service Commission (APSC) is to increase awareness and adoption of best practice public administration by the Australian Public Service (APS) through leadership, promotion, advice and professional development, drawing on research and evaluation. The APSC takes a central leadership role in providing expertise, guidance, performance monitoring and some centralised services to all agencies. The APSC also undertakes statutory functions under the Public Service Act 1999, including functions to strengthen the Australian Public Service’s integrity and quality of employment decision-making.

In 2014-15 the APSC will continue to focus on its five strategic priorities. These priorities reflect our statutory responsibilities, are consistent with the Whole-of-Government reform and delivery agenda and form the basis for the programme objectives and outputs detailed in the following sections. Our strategic objectives are:

to build a unified, citizen-centric APS by leading its organisational and human capital strategies

to lead APS agencies’ adoption of best human capital practices and assure agencies’ organisational capability

to develop outstanding leaders and shape a cohesive leadership network

to instil and enliven APS ethics and values to inspire excellence

to invest in and grow the APSC’s capability to deliver its role.

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Table 1.1: APSC Resource Statement — Budget Estimates for 2014-15 as at Budget May 2014



2014-15 2014-15 2014-15 2013-14$'000 $'000 $'000 $'000


Departmental appropriationPrior year departmental appropriation2 21,957 - 21,957 21,899Departmental appropriation3 - 22,072 22,072 22,637s31 Relevant agency receipts4 - 21,894 21,894 25,420Total 21,957 43,966 65,923 69,956


Other services5




by criteria/entitlementRemuneration Tribunal Act 1973 - 61,963 61,963 60,806

Total special appropriations C - 61,963 61,963 60,806


Special Accounts


Total resourcingA+B+C+D 21,957 105,929 127,886 130,762Total net resourcing for Australian Public Service Commission 21,957 105,929 127,886 130,762

124

APSC Budget Statements

Reader note: All figures are GST exclusive.



3Includes an amount of $0.4 million in 2014-15 for the Departmental Capital Budget (refer to table 3.2.5 for further details). For accounting purposes this amount has been designated as 'contributions by owners'.

4s31 Relevant agency receipts — estimate.


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$'000 $'000

Payments made by other agencies on behalf of Australian Public Service Commission:

Attorney-General's Department:Remuneration Tribunal Act 1973 3,816 3,744

Department of the House of Representatives:Remuneration Tribunal Act 1973 38,960 38,233

Department of the Senate:Remuneration Tribunal Act 1973 19,187 18,829

Total payments made by other agencies 61,963 60,806

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1.3 BUDGET MEASURES

Budget measures in Part 1 relating to the APSC are detailed in Budget Paper No. 2 and are summarised below.

Table 1.2: APSC 2014-15 Budget MeasuresPart 1: Measures Announced Since the 2013-14 MYEFO

Programme 2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000

Expense measuresEfficiency Dividend — a further temporary increase of 0.25 per cent 1.1

Departmental expenses - (56) (106) (159) (160) Total - (56) (106) (159) (160) Total expense measures

Departmental expenses - (56) (106) (159) (160) Total - (56) (106) (159) (160) Capital measuresEfficiency Dividend — a further temporary increase of 0.25 per cent 1.1

Departmental capital - (1) (2) (3) (3) Total - (1) (2) (3) (3) Total capital measures

Departmental capital - (1) (2) (3) (3) Total - (1) (2) (3) (3)


Part 2: MYEFO Measures Not Previously Reported in a Portfolio StatementProgramme 2013-14 2014-15 2015-16 2016-17 2017-18

$'000 $'000 $'000 $'000 $'000MeasuresReforms to APS management and efficient procurement of agency software 1.1

Departmental expenses (38) (92) (174) (208) (208) Total (38) (92) (174) (208) (208) Efficiency dividend — temporary increase in the rate 1.1

Departmental capital - (4) (10) (15) (15) Departmental expenses - (222) (482) (751) (751)

Total - (226) (492) (766) (766) Total measures

Departmental (38) (318) (666) (974) (974) Total (38) (318) (666) (974) (974) Prepared on a Government Finance Statistics (fiscal) basis.

127




Government outcomes are the intended results, impacts or consequences of actions by the government on the Australian community. Commonwealth programmes are the primary vehicle by which Government agencies achieve the intended results of their outcome statements. Agencies are required to identify the programmes which contribute to Government outcomes over the Budget and forward years.

The APSC’s outcome is described below together with its related programmes, specifying the performance indicators and targets used to assess and monitor the performance of the APSC in achieving Government outcomes.

Outcome 1: Increased awareness and adoption of best practice public administration by the public service through leadership, promotion, advice and professional development, drawing on research and evaluation.

Outcome 1 StrategyThe APSC takes a central leadership role in providing expertise, guidance, performance monitoring and some centralised services to all agencies covering:

improving the alignment and quality of APS human capital planning and management in order to enhance APS-wide and agency capability through building a strategic and coordinated approach to the development of APS leaders and its people

ensuring greater consistency for a united APS, including through promotion of the APS values and its ethical framework and coordination of workplace relations for Australian Government employees

fostering capability and stewardship at the APS level and assuring agency capability and effectiveness, including through processes for improved workforce planning and agency capability reviews

strengthening the APS’s leadership and management capabilities, and building the bench strength of its leadership cohorts, through the implementation of a Whole-of-APS Leadership and Core Skills Strategy.

The APSC also undertakes statutory functions under the Public Service Act 1999, including functions to strengthen the Australian Public Service’s integrity and improve the quality of employment decision-making.

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The APSC is responsible for Australian Government policies for enterprise bargaining in Australian Government employment, classification structures, pay and employment conditions for Australian Government employees, work level standards and workplace relations advice. These include encouraging agencies to establish workplace arrangements that support efficient public administration.

The APSC will continue to report publicly on the state of the APS through the 2014-15 State of the Service report which will assess APS workforce trends and capability. One of the key information sources for the report is a census of all APS employees.

The APSC international programmes will continue to develop public sector capability and capacity in partnership with developing countries, consistent with the priorities of the Australian Government’s aid programme.

The APSC will continue to focus on APS people and organisational performance, investing in APS development and capability and Australian Government employment workplace relations and to support agencies through:

a Memorandum of Understanding with relevant agencies to deliver leadership and skills development, talent management services and a Whole-of-Government approach to the recruitment (and retention) of Indigenous employees

effective communication strategies that minimise the burden on agencies in adopting new guidelines and frameworks

the provision of advice on agency-specific processes and capability development

the conduct of a programme of capability reviews.

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Table 2.1: Budgeted Expenses for Outcome 12013-14 2014-15

Estimated Estimatedactual expenses

expenses$'000 $'000

Programme 1.1: Australian Public Service CommissionDepartmental expenses

Departmental appropriation1 47,387 43,544Expenses not requiring appropriation in the Budget year2 775 1,163

Total for Programme 1.1 48,162 44,707Programme 1.2: Parliamentarians' and Judicial Office Holders' Remuneration and EntitlementsAdministered expenses

Special appropriations 60,806 61,963

Total for Programme 1.2 60,806 61,963Outcome 1 Totals by appropriation typeAdministered Expenses

Special appropriations 60,806 61,963Departmental expenses

Departmental appropriation1 47,387 43,544Expenses not requiring appropriation in the Budget year2 775 1,163



Outcome 1: Increased awareness and adoption of best practice public administration by the public service through leadership, promotion, advice and professional development, drawing on research and evaluation.

Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of the Budget year as Government priorities change.1Departmental appropriation combines ‘Ordinary annual services (Appropriation Bill No. 1)’ and ‘Revenue from independent sources (s31)’.

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

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Programme 1.1: Australian Public Service Commission

Programme 1.1 Objectives

APS People and Organisational Performance to provide high quality policy advice to the Government, the Minister and the

Australian Public Service Commissioner, and employment services, on matters covered by the Public Service Act 1999

to provide an evidence base for the alignment and quality of APS human capital planning and management to enhance APS-wide and agency capability

to facilitate the continuous improvement of the approach to APS-wide workforce planning that supports effective deployment and management of human capital

to manage and provide quality policy advice on the Australian Public Service Commissioner’s statutory responsibilities in relation to SES employees, agency heads and statutory office holders

to undertake agency capability reviews to assist agencies to improve institutional capabilities and strengthen accountability of agency performance

to support the review, inquiry and reporting functions of the Australian Public Service Commissioner and the Merit Protection Commissioner and contribute to improving the standards of decision-making and people management practices across the APS

to work with agencies to implement the amended Public Service Act 1999 and embed the revised APS Values, and promote public service ethics and integrity

to work with agencies to build a high performance culture across the APS

to ensure that APS agencies have access to leadership strategies to enhance agency specific capability and leadership development through guidance, networks and client engagement activities

to deliver strategies under the Indigenous Employment Strategy to improve the retention of Indigenous staff in the APS and work with agencies to continue to focus on the strategies in the APS Indigenous Pathways to Employment programme

to contribute to the enhanced diversity of the APS to ensure it reflects and is responsive to the wider community and work with agencies to implement the as one – Australian Public Service Disability Employment Strategy aimed at strengthening the APS as a progressive and sustainable employer of people with disability.

131


Investing in APS Development and Capability to reinvigorate strategic leadership capability by enhancing the capability of

current and future APS leaders

to enhance the core skills of the APS workforce

to improve the efficiency and effectiveness of leadership and core skills development across the APS

to enable agencies to enhance their approach to leadership development, talent management and core skills learning and development

to contribute to the increased awareness and adoption of best practice public administration by providing leadership and professional development programmes

to assist APS agencies to achieve effective and efficient procurement of capability development services

to assist identified International Governments to build public sector capability and capacity on behalf of the Australian Government.

Australian Government Employment Workplace Relations to foster efficient APS workforce relations to ensure employment bargaining

supports affordable and productive workforce arrangements and to provide advice and support for workplace relations within Australian Government employment

to strengthen and streamline the employment bargaining framework

to enhance and maintain employment frameworks, including classification and work level standards, to support cost-effective whole-of-APS delivery to government and stakeholders

to advise agencies on the impact of Machinery of Government changes on the terms and conditions of employees

to assist in the process of modernising the APS Award and several non-APS awards

to assist the Remuneration Tribunal and the Defence Force Remuneration Tribunal meet their respective statutory obligations.

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Expenses are expected to reduce in 2014-15 as agency demand for the APSC’s services is expected to reduce and planned activities for the agency capability reviews are near completion.

Expenses are also expected to reduce in 2015-16 due to the termination in 2014-15 of the Australian Public Service Employment and Capability Strategy for Aboriginal and/or Torres Strait Islander Employees Budget measure.

Expenses are expected to reduce in 2016-17 as the five year agency funding agreements for the Strategic Centre for APS Leadership, Learning and Development expires.



Annual departmental expenses:Departmental appropriation 47,387 43,544 41,297 36,754 37,066

Expenses not requiring appropriation inthe Budget year1 775 1,163 1,164 1,165 1,166

Total Programme expenses 48,162 44,707 42,461 37,919 38,2321Expenses not requiring appropriation in the Budget year is made up of depreciation expense, amortisation expense and audit fees.

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The APSC’s key deliverables are:

APS People and Organisational Performance providing high quality policy advice to the Government, the Minister and the

Australian Public Service Commissioner on matters covered by the Public Service Act 1999

monitoring and supporting the continuous and sustainable development of agencies’ workforce planning and capability frameworks and benchmarking processes

supporting the review, inquiry and reporting functions and contribute to improving the standards of decision-making and people management practices across the APS

working with agencies to embed the APS Values that are effective in driving performance and cultural change, and promote public service ethics and integrity

providing agency capability reviews, reports and capability improvement plans

embedding an attitudinal and behavioural change to the management of performance to build a high performance culture across the APS

improving retention, over time, of Indigenous staff through strategies under the Indigenous Employment Strategy and support the as one – Australian Public Service Disability Employment Strategy aimed at strengthening the APS as a progressive and sustainable employer of people with disability

providing the publication of the State of the Service Report and other reports to assist in advising Government and the APS

delivering the Ethics Advisory Service to assist employees and agencies

meeting performance benchmarks in discharging statutory functions in respect of SES matters.

Investing in APS Development and Capability developing and reviewing the APS Leadership and Core Skills Strategy reflecting

the current and emerging business needs of the APS, and drawing on evidence-based research and best practice

designing, developing and delivering best practice, contemporary leadership development programmes and interventions

designing, developing and delivering intensive development for high potential leaders

designing contemporary, best practice learning programmes and interventions relating to management and core skills

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the quality assessing of development providers

centrally procuring programmes where there is a return on investment in terms of efficiency and/or cultural benefits

improving evaluation of programme outcomes

thought leadership, supporting and advising support agency best practice in the areas of leadership, learning and development

providing a range of leadership and professional development programmes that build knowledge and skills to improve capability

establishing and managing panels of high quality suppliers whose services support APS development and capability

strengthening the capability of partner governments to develop and implement strategic initiatives that improve their public sector effectiveness, efficiency and the quality of services to citizens.

Australian Government Employment Workplace Relations providing high quality advice to agencies and the Minister on workplace

employment arrangements

administering enterprise bargaining arrangements

maintaining and supporting the policy and employment frameworks, including the APS-wide work level standards and classifications to ensure that these arrangements support a united APS

providing high-quality advisory and administrative support to the Remuneration Tribunal and the Defence Force Remuneration Tribunal.

135



APS has sufficient leadership capability to meet current and future business requirements - to become more citizen-centric, to be able to solve complex problems, to operate as one-APS, to anticipate challenges and implement Government programmes and decisions effectively

APS agencies have access to high quality, contemporary, strategically aligned leadership and talent development programmes that build the capability required in the APS

the degree to which programmes improve leadership and management effectiveness

APS agencies have a range of means for accessing core skills development programmes

improved quality and consistency of core skills delivery across the APS through agency use of quality assured providers and learning designs

APS agencies have access to thought leadership, support and advice to support their leadership development and talent management initiatives

procurement of capability development services maximises the return on the financial investment made by APS agencies

APS will support the Australian Government’s aid programme by strengthening the capability of partner governments to develop and implement strategic initiatives that improve their public sector effectiveness, efficiency and the quality of service to citizens.

136


Programme 1.1 Key Performance Indicators (continued)2013-14 2014-15 2015-16 2016-17 2017-18Revised Budget Forward Forward Forwardbudget target year 1 year 2 year 3

Degree of satisfaction of Minister andagency heads, as expressed throughfeedback about the quality and timelinessof services and advice provided by the APSC

Number of reviews, excluding promotion reviews, finalised on behalf of the Merit Protection Commissioner

Percentage of reviews conducted on behalf of the Merit Protection Commissioner completed within publishedtimeframes

Percentage of high level use of and satisfaction with the State of the Service Report and other research and evaluation reports by the SES, agencies and other clients

Percentage of responding surveyed participants that attended a Commission programme agreed that the programme improved their knowledge and skills

Level of satisfaction of the:• President of the Defence Force Remuneration Tribunal with the quality and timeliness of the services provided by the Secretariat• President of the Remuneration Tribunal with the quality and timeliness of the services provided by the Secretariat

Very good or

above

Very good or

above

Very good or

above

Very good or

above

Very good or

above

Very good or

above

Very good or

above

Very good or

above

Very good or

above

Very good or

above

80% 80% 80% 80% 80%

70%

Very good or

above

Very good or

above

Very good or

above

Very good or

above

Very good or

above

70% 70% 70% 70%

75% 75% 75% 75% 75%

195 195 195 195 195

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Programme 1.2: Parliamentarians’ and Judicial Office Holders Remuneration and Entitlements.


The objective of this programme is to facilitate the payment of remuneration, allowances and entitlements to Parliamentarians’ and Judicial Office Holders.


The Department of the Senate, the Department of the House of Representatives and the Attorney-General’s Department make all of the payments for this programme.

These payments are funded by special appropriations and expenses move in line with the level of remuneration, allowances and entitlements for Parliamentarians and Judicial Office Holders.



Special Appropriations:Remuneration Tribunal Act 1973 60,806 61,963 63,141 64,404 65,692

Total Programme expenses 60,806 61,963 63,141 64,404 65,692


The key deliverable is the payment of remuneration, allowances and entitlements to Parliamentarians and Judicial Office Holders.

Data is not provided for deliverables because the administered items are paid by the Department of the Senate, the Department of the House of Representatives and the Attorney-General’s Department.

Programme 1.2 Key Performance Indicators2013-14 2014-15 2015-16 2016-17 2017-18

Estimated Budget Forward Forward Forwardactual estimate estimate estimate

Percentage of all variations to remuneration and entitlements areprocessed in a timely manner withan accuracy of at least 99 per cent

99% 99% 99% 99% 99%

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3.1.1 Movement of Administered Funds Between YearsAPSC does not have any movement of administered funds between years.

3.1.2 Special AccountsAPSC does not have any special accounts.

3.1.3 Australian Government Indigenous ExpenditureTable 3.1.3: Australian Government Indigenous Expenditure (AGIE)

Other Total ProgrammeBill Total

No. 1 approp$'000 $'000 $'000 $'000

Australian Public Service CommissionOutcome 1Departmental 2014-15 830 830 1,380 2,210 1.1Departmental 2013-14 772 772 1,360 2,132 1.1Total outcome 2014-15 830 830 1,380 2,210Total outcome 2013-14 772 772 1,360 2,132

Total departmental 2014-15 830 830 1,380 2,210Total departmental 2013-14 772 772 1,360 2,132

Total AGIE 2014-15 830 830 1,380 2,210Total AGIE 2013-14 772 772 1,360 2,132

Appropriations

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3.2.1 Differences in Agency Resourcing and Financial StatementsThe Agency Resource Statement (Table 1.1) provides a consolidated view of all the resources available to the agency in 2014-15 including both departmental and administered funding. This includes appropriation that is yet to be drawn down to cover departmental payables and provisions on the Balance Sheet. The Departmental Comprehensive Income Statement (Table 3.2.1) shows only the departmental operating appropriation provided in each year.

3.2.2 Analysis of Budgeted Financial Statements

Departmental

Income Statement

In all Budget years the APSC is budgeting for a break-even operating result, adjusted for depreciation and amortisation expense.

Appropriation revenue will decrease by $0.3 million from $22.0 million in 2013-14 to $21.7 million in 2014-15 due to an increase in efficiency dividend and saving measures.

Appropriations will reduce in 2015-16 as funding terminates for the Australian Public Service Employment and Capability Strategy for Aboriginal and/or Torres Strait Islander Employees Budget measure.

Goods and services income will reduce in 2014-15 as there is expected to be reduced demand for the APSC’s services and planned activities for the agency capability reviews are near completion.

Income is projected to reduce in 2016-17 as a result of the expiration of the five year agency funding agreements for the Strategic Centre for APS Leadership, Learning and Development.

Balance Sheet

Cash balances are maintained at a working capital level of $0.5 million. Cash holdings above this level are transferred as a receivable held in the Official Public Account.

Receivables vary in line with the APSC’s capital investment cycle for FMA s31 funded fee for service activities. Receivables will remain constant in 2014-15 and decrease in future years to enable future asset reinvestment.

140


The main payables and provisions of the APSC are expected to remain at around current levels. The operating lease incentive liability will reduce over the Budget year and forward years as the upfront incentives received from lessors for office leases are allocated as rebates to lease expense over the term of those leases.

Net equity will reduce over the Budget and forward years as the level of departmental capital budget funding is lower than the loss incurred due to net cash appropriation arrangements.

Administered

The administered transactions are for payments of Parliamentarians’ and Judicial Office Holders’ remuneration and entitlements. These payments are funded by special appropriations and are disclosed in the administered schedule of income and expenses and schedule of cash flows. There are no administered liabilities or assets as all remuneration and entitlements are paid in the month in which they are incurred.

Expenses are expected to increase each year as the Remuneration Tribunal is required by its legislation to review remuneration for Parliamentarians’ and Judicial Office Holders’ annually. In the past this review has generally led to increases in remuneration.

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3.2.3 Budgeted Financial Statements TablesTable 3.2.1: Comprehensive Income Statement (Showing Net Cost of Services) for the period ended 30 June


2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000

EXPENSESEmployee benefits 29,333 27,519 26,416 23,205 23,389Suppliers 17,642 15,772 14,631 13,307 13,446Depreciation and amortisation 1,168 1,396 1,396 1,396 1,396Finance costs 19 20 18 11 1Total expenses 48,162 44,707 42,461 37,919 38,232LESS: OWN-SOURCE INCOMEOwn-source revenueSale of goods and rendering of services 25,419 21,894 20,564 16,180 16,297Other 41 41 42 43 44Total own-source revenue 25,460 21,935 20,606 16,223 16,341Total own-source income 25,460 21,935 20,606 16,223 16,341Net cost of (contribution by)

services 22,702 22,772 21,855 21,696 21,891Revenue from Government 21,968 21,650 20,733 20,574 20,769

Surplus (Deficit) (734) (1,122) (1,122) (1,122) (1,122)Total comprehensive income (loss) (734) (1,122) (1,122) (1,122) (1,122)



(loss) excluding depreciation/amortisationexpenses Currently funded throughrevenue appropriations - - - - -

less depreciation/amortisation expensesCurrently funded through revenueappropriations1 734 1,122 1,122 1,122 1,122

Total Comprehensive Income (loss) - as per the Statement ofComprehensive Income (734) (1,122) (1,122) (1,122) (1,122)

Prepared on Australian Accounting Standards basis.1From 2010-11, the government introduced net cash appropriation arrangements where Bill 1 revenue appropriations for the depreciation/amortisation expenses of FMA Act agencies were replaced with a separate capital budget (the Departmental Capital Budget, or DCB) provided through Bill 1 equity appropriations. For information regarding DCBs, please refer to Table 3.2.5 Departmental Capital Budget Statement.

142





Cash and cash equivalents 450 450 450 450 450Trade and other receivables 27,368 26,802 26,114 25,558 24,827


Land and buildings 2,253 1,924 1,598 1,372 1,140Property, plant and equipment 1,252 993 860 679 493Intangibles 1,162 1,418 1,379 1,285 1,207Inventories 55 55 55 55 55Prepayments 992 992 992 992 992


Suppliers 7,499 7,447 7,314 7,114 6,921Operating lease incentives 934 768 602 436 338Unearned income 7,436 7,436 7,436 7,436 7,436

Total payables 15,869 15,651 15,352 14,986 14,695 Provisions

Employee provisions 7,131 7,131 7,131 7,131 7,131Provision for restoration obligations 391 411 228 239 -

Total provisions 7,522 7,542 7,359 7,370 7,131 Total liabilities 23,391 23,193 22,711 22,356 21,826 Net assets 10,141 9,441 8,737 8,035 7,338 EQUITY

Contributed equity 369 791 1,209 1,629 2,054Reserves 1,323 1,323 1,323 1,323 1,323Retained surplus

(accumulated deficit) 8,449 7,327 6,205 5,083 3,961

Total Equity 10,141 9,441 8,737 8,035 7,338Prepared on Australian Accounting Standards basis.*'Equity' is the residual interest in assets after deduction of liabilities.

143




reserve capital$'000 $'000 $'000 $'000


previous period 8,449 1,323 369 10,141Adjusted opening balance 8,449 1,323 369 10,141Comprehensive income

Surplus (deficit) for the period (1,122) - - (1,122)

Total comprehensive income (1,122) - - (1,122)Transactions with owners

Contributions by ownersDepartmental Capital Budget (DCBs) - - 422 422

Sub-total transactions with owners - - 422 422Estimated closing balance

as at 30 June 2015 7,327 1,323 791 9,441Prepared on Australian Accounting Standards basis.

144




2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000


Appropriations 21,968 21,650 20,733 20,574 20,769Sale of goods and rendering of services 25,419 21,894 20,564 16,180 16,297Other 1,859 2,252 2,263 1,977 2,190


Employees 29,333 27,519 26,416 23,205 23,389Suppliers 19,594 17,635 16,463 15,051 15,152Other 183 - - - -


operating activities 136 642 681 475 715

INVESTING ACTIVITIESCash received

Proceeds from sales of property,plant and equipment 1 - - - -

Total cash received 1 - - - -Cash used

Purchase of property, plant and equipment 931 1,064 898 895 900

Payment of restoration obligations - - 201 - 240Total cash used 931 1,064 1,099 895 1,140Net cash from (used by)

investing activities (930) (1,064) (1,099) (895) (1,140)

FINANCING ACTIVITIESCash received

Contributed equity 669 422 418 420 425Total cash received 669 422 418 420 425Net cash from (used by)

financing activities 669 422 418 420 425Net increase (decrease)

in cash held (125) - - - -Cash and cash equivalents at the

beginning of the reporting period 575 450 450 450 450

Cash and cash equivalents at the end of the reporting period 450 450 450 450 450


145





Capital budget - Bill 1 (DCB) 669 422 418 420 425Total new capital appropriations 669 422 418 420 425



ASSETSFunded by capital appropriation - DCB1 669 422 418 420 425Funded internally from

departmental resources2 262 642 681 475 715TOTAL 931 1,064 1,099 895 1,140RECONCILIATION OF CASH


Total purchases 931 1,064 1,099 895 1,140Total cash used to acquire assets 931 1,064 1,099 895 1,140

Prepared on Australian Accounting Standards basis.DCB = Departmental Capital Budget.1Does not include annual finance lease costs. Includes purchase from current and previous years Departmental Capital Budgets (DCBs).2Includes current and prior year Bill 1/3/5 appropriations (excluding amounts from the DCB) and s31 relevant agency receipts.

146






and impairment (1,151) (2,012) (2,527) (5,690)Opening net book balance 2,253 1,252 1,162 4,667CAPITAL ASSET ADDITIONSEstimated expenditure on


annual services 1 77 165 822 1,064Total additions 77 165 822 1,064Other movementsDepreciation/amortisation expense (406) (424) (566) (1,396)Disposals 2 - - - -Total other movements (406) (424) (566) (1,396)As at 30 June 2015Gross book value 3,481 3,429 4,511 11,421Accumulated depreciation/amortisation

and impairment (1,557) (2,436) (3,093) (7,086)Closing net book balance 1,924 993 1,418 4,335Prepared on Australian Accounting Standards basis.1‘Appropriation ordinary annual services’ refers to funding provided through Appropriation Bill (No.1) 2014-15 for depreciation / amortisation expenses, DCBs or other operational expenses.2Net proceeds may be returned to the OPA.

147




2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000

EXPENSES ADMINISTERED ONBEHALF OF GOVERNMENTEmployee benefits 60,806 61,963 63,141 64,404 65,692

Total expenses administeredon behalf of Government 60,806 61,963 63,141 64,404 65,692

Net Cost of (contribution by)services 60,806 61,963 63,141 64,404 65,692

Surplus (Deficit) (60,806) (61,963) (63,141) (64,404) (65,692)

Total comprehensive income (loss) (60,806) (61,963) (63,141) (64,404) (65,692)Prepared on Australian Accounting Standards basis.

148



The APSC has no assets or liabilities administered on behalf of government.

149




2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000

OPERATING ACTIVITIESCash used

Employees 60,806 61,963 63,141 64,404 65,692Total cash used 60,806 61,963 63,141 64,404 65,692Net cash from (used by)

operating activities (60,806) (61,963) (63,141) (64,404) (65,692)Net increase (decrease) in

cash held (60,806) (61,963) (63,141) (64,404) (65,692)Cash and cash equivalents at

beginning of reporting period - - - - -Cash from Official Public Account for:

- Appropriations 60,806 61,963 63,141 64,404 65,69260,806 61,963 63,141 64,404 65,692

Cash and cash equivalents at endof reporting period - - - - -

150

Indigenous Business Australia


INDIGENOUS BUSINESS AUSTRALIA

Section 1: Agency Overview and Resources.........................................................1551.1 Strategic Direction..............................................................................................1551.2 Agency Resource Statement..............................................................................1561.3 Budget Measures...............................................................................................157



153

INDIGENOUS BUSINESS AUSTRALIA


The planned outcome of Indigenous Business Australia (IBA) is stimulating the economic advancement of Aboriginal and Torres Strait Islander peoples.


IBA's vision is for a nation in which the First Australians are economically independent and an integral part of the economy. Under its legislation, the Aboriginal and Torres Strait Islander Act 2005, IBA's purpose is to:

assist and enhance Aboriginal and Torres Strait Islander self-management and economic self-sufficiency

advance the commercial and economic interest of Aboriginal and Torres Strait Islanders by accumulating and using a substantial capital base for the benefit of the Aboriginal and Torres Strait Islander peoples.

To achieve its purpose, IBA has established three key strategic objectives, under which its specific strategies and performance indicators are grouped:

assist Indigenous Australians to achieve economic independence through direct investment and participation in commercial and joint venture business enterprises that will produce increased financial returns and employment, training and supply chain opportunities

assist eligible Aboriginal and Torres Strait Islander peoples to start up, acquire, grow or exit a successful business

facilitate Indigenous Australians into home ownership by providing affordable housing loans to Indigenous Australians who would generally not qualify for housing finance elsewhere. This includes addressing barriers such as lower incomes and savings, credit impairment and limited experience with loan repayments.

155



Table 1.1: IBA Resource Statement – Budget Estimates for 2014–15 as at Budget May 2014



2014-15 2014-15 2014-15 2013-14$'000 $'000 $'000 $'000

REVENUE FROM GOVERNMENTOrdinary Annual Services¹Outcome 1 - 34,328 34,328 34,012

Total ordinary annual services - 34,328 34,328 34,012 Other services²Non-Operating - 36,880 36,880 37,210

Total other services - 36,880 36,880 37,210

Total Annual Appropriations - 71,208 71,208 71,222 Total Funds from Government - 71,208 71,208 71,222 FUNDS FROM OTHER SOURCESInterest - 55,231 55,231 53,616 Dividends - 23 23 25 Sale of goods and services - 87,233 87,233 81,277 Rents - 16,074 16,074 13,276 Net gain on sale of assets - 1,052 1,052 1,824 Other - 1,245 1,245 2,673 Total - 160,858 160,858 152,691

Total net resourcing for IBA - 232,066 232,066 223,913All figures are GST exclusive.Note: IBA is not directly appropriated as it is a CAC Act body. Appropriations are made to FMA agency PM&C, which are then paid to IBA and are considered 'departmental' for all purposes.1Appropriation Bill (No.1) 2014-15.2Appropriation Bill (No.2) 2014-15.

156

IBA Budget Statements

1.3 BUDGET MEASURES

Budget measures relating to IBA are detailed in Budget Paper No. 2 and are summarised below.

Table 1.2 IBA 2014–15 Budget MeasuresMeasures Announced Since the 2013-14 MYEFO

Programme 2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000

Measures (if applicable)Efficiency Dividend — a further 1.2, 1.3

temporary increase of 0.25 per centDepartmental expenses - (88) (176) (262) (263)

Total - (88) (176) (262) (263) Total measures



157




Government outcomes are the intended results, impacts or consequences of actions by the Government on the Australian community. Commonwealth programmes are the primary vehicle by which government agencies achieve the intended results of their outcome statements. Agencies are required to identify the programmes that contribute to Government outcomes over the Budget and forward years.

IBA’s outcome is described below together with its related programmes, specifying the performance indicators and targets used to assess and monitor the performance of Indigenous Business Australia in achieving Government outcomes.

Outcome 1: Improved wealth acquisition to support the economic independence of Aboriginal and Torres Strait Islander peoples through commercial enterprise, asset acquisition, construction and access to concessional home and business loans.

Outcome 1 Strategy

IBA utilises a holistic suite of commercially focused Indigenous economic development programmes to enhance Indigenous economic self-sufficiency, working closely with individuals, communities, the private sector and government. IBA delivers flexible and concessional interest rate loan products and aftercare support to improve Indigenous home ownership across Australia, including in discrete remote Indigenous communities. IBA also provides concessional interest rate business loans and business support to increase Indigenous ownership of small to medium sized enterprises, and their sustainability and growth. For larger investment projects, IBA brings together private sector partners with Indigenous individuals and groups, co-investing in joint venture projects that provide both commercial and broader economic and social returns and a direct transfer of business skills and acumen to Indigenous partners.

158




Table 2.1: Budgeted Expenses for Outcome 1Outcome 1: Improved wealth acquisition to support the 2013-14 2014-15economic independence of Aboriginal and Torres Strait Estimated EstimatedIslander peoples through commercial enterprise, asset actual expensesacquisition, construction and access to concessional home expensesand business loans. $'000 $'000

Programme 1.1: Equities and InvestmentsRevenue from Government

Ordinary annual services (Appropriation Bill No. 1) - - Revenues from other independent sources 100,645 111,676

Total for programme 1.1 100,645 111,676

Programme 1.2: Indigenous Home OwnershipRevenue from Government

Ordinary annual services (Appropriation Bill No. 1) 10,790 10,890 Revenues from other independent sources 44,196 45,184 Expenses not requiring Appropriation in the Budget year (3,939) (6,880)


Programme 1.3: Business Development and AssistanceRevenue from Government

Ordinary annual services (Appropriation Bill No. 1) 23,222 23,438 Revenues from other independent sources 3,633 3,907 Expenses not requiring Appropriation in the Budget year 5,509 5,055


Outcome 1 totals by resource type:Revenue from Government

Ordinary annual services (Appropriation Bill No. 1) 34,012 34,328 Revenues from other independent sources 148,474 160,767 Expenses not requiring Appropriation in the Budget year 1,571 (1,825) Total expenses for Outcome 1 184,057 193,270

2013-14 2014-15Average Staffing Level (number) 232 236

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Programme 1.1: Equity and Investments

Programme 1.1 ObjectiveIBA Investments’ objective is to assist and develop Indigenous Australians to achieve economic independence through direct investment and participation in commercial enterprises.

Programme 1.1 ExpensesProgramme 1.1 will not receive Government funding, but will cover its operating expenses through prudent management of the investment portfolio.



Total departmental expenses 100,645 111,676 112,827 112,431 112,100 Total programme expenses 100,645 111,676 112,827 112,431 112,100


A substantial portfolio of sustainable investments, diversified by industry and geography, which collectively provide Aboriginal and Torres Strait Islander peoples with meaningful opportunities for:

asset ownership

wealth accumulation

stable and enduring income streams

capacity development

employment and training

supply chain opportunities.

160



Portfolio Return to IBA: annual and rolling 5 years

number of Indigenous investors supported during the Budget year

Portfolio Return to Indigenous co-investors: annual return

proportion of Indigenous jobs supported by the investment portfolio.


actual estimate estimate estimate

Number of Indigenous co-investorssupported4

Proportion of Indigenous jobs supported byinvestment portfolio6

Cash +3%

Cash +3%

Cash +3%

Cash +3%

Cash +3%

Cash +3%

Cash +3%

Cash +3%

Cash +3%

Cash +3%

Cash +3%

20 25 30 30 35

Portfolio Return to IBA (rolling 5 years)3

Portfolio Return to Indigenous co-investors5

Portfolio Return to IBA (budget year)1

20% 20%

Cash +3%2

Cash +3%

Cash +3%2

Cash +3%

25% 27.5%22.5%

1This measure indicates Portfolio Return to IBA during the year. It is calculated as the after-tax return generated by IBA’s share of the investment portfolio in the Budget year, expressed as a percentage of the average value of IBA’s share of the investment portfolio during the Budget year (“Portfolio Value”). It excludes IBA’s financial investments and the interest earned thereon.

2Benchmark return represents the cash rate plus a margin of 3 per cent. Cash rate is calculated using average BBSW over the measurement period.

3This measure indicates Portfolio Return to IBA over a rolling 5 year period (inclusive of the designated year). It is calculated as the average of the after-tax returns generated by the investment portfolio (expressed as a percentage of Portfolio Value) in each of the past 5 Budget years. It excludes IBA’s financial investments and the interest earned thereon.

4Number of Indigenous investors supported includes current Indigenous co-investors, Indigenous co-investors to whom investments were sold during the Budget year and Indigenous investors supported through advisory services via IBA’s Acquisitions Unit or Traditional Owner & Native Title Unit.

5This measure indicates Portfolio Return to IBA’s Indigenous co-investors during the year. It is calculated as Indigenous co-investors share of the after-tax return generated by the investment portfolio in the Budget year, expressed as a percentage of the average value of Indigenous co-investors share of the investment portfolio during the Budget year.

6Total number of Indigenous people employed by employing investment portfolio entities, expressed as a percentage of total workforce, measured quarterly and averaged across those quarters to account for fluctuations in staffing levels intra-year.

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Programme 1.2: Indigenous Home Ownership

Programme 1.2 ObjectiveProgramme 1.2 aims to facilitate Indigenous Australians into home ownership by addressing barriers such as lower incomes and savings, credit impairment and limited experience with loan repayments. The Programme is focused on first home buyers who have difficulty obtaining home loan finance from other financial institutions. The programme also helps Indigenous people in remote Indigenous communities overcome additional barriers where there is appropriate tenure for home ownership, such as a lack of access to financial institutions and services, higher construction costs, the absence of established residential property markets and newly created land tenure arrangements. The programme’s success is assessed in terms of increasing the percentage of Indigenous Australians who are home owners.

Programme 1.2 ExpensesBudgeted departmental expenses include the administrative costs for delivering the programme, including activities involved in facilitated home ownership opportunities in remote Indigenous communities, as well as legal, administrative and operating costs associated with undertaking lending and managing IBA’s loan portfolios.




162


Programme 1.2 DeliverablesThe key programme deliverable is the provision of home loans and related assistance to Indigenous people and the effective management of the loan portfolio.


actual estimate estimate estimateNumber of new home loans 560 560 550 550 550Aggregate loans in the portfolio 4,325 4505 4,675 4,825 4,975

Programme 1.2 Key Performance IndicatorsThe key performance indicators measure the success of the programme in targeting lending and assistance to customers as appropriate to their circumstances and need and the facilitation of home ownership in remote Indigenous communities.



Number of loans to applicants who havean adjusted combined gross annualincome of not more than 125% of IBA'sincome amount1

Number of loans to applicants who are firsthome buyers

Number of remote Indigenous communitiesin which IBA is actively facilitating homeownership opportunities

80% of loans

80% of loans

80% of loans

80% of loans

80% of loans

10 12 12 12 12

90% of loans

90% of loans

90% of loans

90% of loans

90% of loans

1The IBA Income Amount is equivalent to the National Average Weekly Male Earnings (NAWME) statistic published by the ABS. The IBA Income amount is adjusted each July after reference to the most recently published NAWME figure.

163


Programme 1.3: Business Development and Assistance

Programme 1.3 ObjectiveThe Business Development and Assistance Programme objective is to assist eligible Aboriginal and Torres Strait Islander peoples to start up, acquire, grow or exit a successful business.

This objective is achieved primarily through the provision of concessional business loans and support services. IBA also supports economic and business development initiatives that seek to promote business ownership or development opportunities.

Programme 1.3 ExpensesProgramme expenses are expected to remain relatively constant for the foreseeable future.




164


Programme 1.3 DeliverablesThe success of this outcome is indicated through the deliverables below.

IBA works closely with business owners to transition into the broader economy and financial sector. The net impact of this strategy will see the number of loans in the portfolio remain stable in future years.



Number of new IBA loans approved 75 80 85 90 90

Number of new loans facilitated with otherlenders in the broader economy includingsplit loans

Number of businesses or prospectivebusinesses provided with business adviceor support

Number of participants that attended IntoBusinessTM workshops1

Number of businesses or prospectivebusinesses that participated in an IntoBusinessTM workshop2

Number of businesses or prospectivebusinesses that completed the IntoBusinessTM Workshop Series3

Number of businesses or prospectivebusinesses that participated in IntoBusinessTM workshops through externalpartnerships4

Number of Strategic EconomicDevelopment Initiatives

Number of Business DevelopmentInitiatives

Number of jobs created/supported by IBAbusiness loan clients

Number of Indigenous people in jobscreated/supported by IBA business loanclients

Number of active loans in the portfolio 300 300 300 300 300

485 490 495 500 500

- 10 15 20 25

- 0 600 650 700

750 750 - - -

- 0 200 220 240

70

15 15 15 15 15

- 0 50 60

- 500 500 500 500

25 30 30 35 35

- 300 325 335 350

1Deliverable changing in 2013–14 as a more effective measure has been identified.2A new measure commencing in 2014–15 which provides a more accurate measure of business participation in Into BusinessTM Workshops.3A new measure commencing in 2014–15 which provides an accurate measure of Into BusinessTM

Workshop completions.4A new measure commencing in 2014–15. Includes Into BusinessTM workshops delivered by IBA through partnerships with other Australian Government, State Government and non-government organisations.

165


Programme 1.3 Key Performance IndicatorsIBA has an integrated suite of products including: Into Business™ workshops, business loans, business support, business development initiatives and strategic economic development initiatives. Business loans provide clients with affordable capital. Business support assists clients to assess the viability of their proposed business, to plan and market for a successful business venture, to access business management training and mentoring, and to eventually exit from the business. Our development initiatives support projects that overcome barriers to Indigenous people owning and operating successful businesses; facilitate the development of business-related skills, knowledge, information and assistance; and research economic opportunities.



Percentage of Loan Accounts that weresuccessfully finalised through loanrepayment1

Percentage of Loan Customers still inbusiness 1 year after commencingbusiness

Percentage of Loan Customers still inbusiness 2 years after commencingbusiness

Percentage of Loan Customers still inbusiness 3 years after commencingbusiness

70%

85%

75%

65%

75%

85%

75%

65%

70%

85%

75%

65%

70%

85%

75%

65%

70%

85%

75%

65%

1Calculated from the number of loan payouts made by clients during the year divided by all loan closures (including payouts, write offs, and debts waived).

166



Section 3 presents explanatory tables and budgeted financial statements that provide a comprehensive snapshot of agency finances for the 2013–14 Budget year. It explains how budget plans are incorporated into the financial statements and provides further details of the reconciliation between appropriations and programme expenses, movements in administered funds, special accounts and Government Indigenous expenditure.


3.1.1 Movement of Administered Funds Between YearsIndigenous Business Australia has no administered funds.

3.1.2 Special AccountsIndigenous Business Australia has no special accounts.


Other Total ProgrammeBill Bill Total

No. 1 No. 2 approp$'000 $'000 $'000 $'000 $'000

Indigenous Business AustraliaOutcome 1Departmental 2014-15 34,328 36,880 71,208 160,858 232,066 AllDepartmental 2013-14 34,012 37,210 71,222 152,691 223,913 AllTotal Outcome 2014-15 34,328 36,880 71,208 160,858 232,066Total Outcome 2013-14 34,012 37,210 71,222 152,691 223,913

Total AGIE 2014-15 34,328 36,880 71,208 160,858 232,066Total AGIE 2013-14 34,012 37,210 71,222 152,691 223,913

Appropriations

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3.2 Budgeted Financial Statements

3.2.1 Differences in Agency Resourcing and Financial Statements

There are no differences between IBA’s Agency Resourcing and Financial Statements.


An analysis of the primary causes of movements in the budgeted financial statements is provided below. The 2013–14 estimated actual results are used as the comparative year in the analysis.

IBA budgets are prepared on a consolidated basis for the agency and its 42 subsidiaries. On consolidation, assets, liabilities, income and expenditure of all subsidiaries flow through to individual line items in the consolidated budget.

Budgeted Agency Income Statement

IBA is budgeting for an operating surplus of $4.0 million in 2013–14 and an estimated surplus of $4.5 million in 2014–15.

Budgeted Agency Balance Sheet

Budgeted net assets as at 30 June 2015 of $1,167 million represents an increase of $41 million over the net assets of $1,126 million as at 30 June 2014. The main drivers of the increase ($41 million) are:

continuing capital injections from the Government of $36.9 million

the estimated operating surplus of $4.5 million.


Net lending activity is expected to increase from $74.1 million in 2013–14 to $83.8 million in 2014–15. Net lending is the access of new loan disbursements over loan repayments and discharges.

Statement of Changes in Equity

Total equity is expected to increase by $41 million to $1,167 million as at 30 June 2015, with the additional equity injection of $36.9 million from the Commonwealth and the Budget year surplus of $4.5 million.

168


3.2.3 Budgeted Financial Statements TablesTable 3.2.1: Comprehensive Income Statement (Showing Net Cost of Services)(for the period ended 30 June)


2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000

EXPENSESEmployee benefits 52,033 52,893 53,365 53,963 55,143 Supplier expenses 75,524 84,279 85,279 84,947 84,816 Grants 12,269 12,000 12,000 12,000 12,000 Depreciation and amortisation 6,046 7,964 7,546 7,353 7,173 Finance costs 652 437 437 437 437 Write-down and impairment of assets 4,200 3,533 2,860 3,910 3,960 Concessional Loan Discount 31,789 30,532 32,475 32,363 33,613 Losses from asset sales 13 11 74 75 71 Other expenses 1,236 1,105 1,200 975 975 Total expenses 183,762 192,754 195,236 196,023 198,188 LESS: OWN-SOURCE INCOMEOwn-source revenueSale of goods and rendering of services 81,277 87,233 87,874 87,883 87,883 Interest 53,616 55,231 56,835 57,860 61,335 Dividends 25 23 37 37 37 Rental income 13,276 16,074 16,352 16,385 16,419 Other 2,154 755 745 745 745 Total own-source revenue 150,348 159,316 161,843 162,910 166,419 GainsSale of assets 1,824 1,052 1,020 1,020 20 Other 519 490 490 490 490 Total gains 2,343 1,542 1,510 1,510 510 Total own-source income 152,691 160,858 163,353 164,420 166,929 Net cost of services 31,071 31,896 31,883 31,603 31,259 Revenue from Government 34,012 34,328 34,332 33,978 34,144 Share of operating surplus of

associates using the equity method 1,321 2,584 2,224 2,224 2,224

Surplus (Deficit) before income taxon continuing operations 4,262 5,016 4,673 4,599 5,109

Income tax expense 295 516 807 807 807 Surplus (Deficit) after income tax

on continuing operations 3,967 4,500 3,866 3,792 4,302

Surplus attributable to the non-controlling interests 2,500 2,500 2,500 2,500 2,500

Surplus (Deficit) attributable to the Australian Government 1,467 2,000 1,366 1,292 1,802


169




$'000 $'000 $'000 $'000 $'000ASSETSFinancial assetsCash and cash equivalents 110,169 109,032 107,704 107,890 108,742 Trade and other receivables 638,449 680,263 720,263 760,263 800,263 Investments accounted for under the equity method 41,774 42,774 44,774 44,788 44,788 Other investments 138,817 127,510 113,500 108,500 103,500 Total financial assets 929,209 959,579 986,241 1,021,441 1,057,293 Non-financial assetsLand and buildings 53,496 52,856 52,871 52,886 52,886 Property, plant and equipment 33,156 30,411 30,422 30,434 30,434 Investment property 138,730 153,050 168,052 173,052 178,052 Intangibles 7,427 7,557 7,283 7,398 7,398 Tax assets 299 299 299 299 299 Inventories 2,097 2,097 2,097 2,097 2,097 Other non financial assets 1,881 1,898 1,898 1,898 1,898 Total non-financial assets 237,086 248,168 262,922 268,064 273,064 Total assets 1,166,295 1,207,747 1,249,163 1,289,505 1,330,357 LIABILITIESPayablesSuppliers 10,390 10,219 10,419 10,419 10,419 Other payables 6,599 6,840 6,840 6,840 6,840 Total payables 16,989 17,059 17,259 17,259 17,259 Interest bearing liabilitiesLoans 11,328 11,328 11,328 11,328 11,328 Total interest bearing liabilities 11,328 11,328 11,328 11,328 11,328

ProvisionsEmployee provisions 6,743 6,931 7,731 7,731 7,731 Other provisions 5,267 5,268 5,268 5,268 5,268 Total provisions 12,010 12,199 12,999 12,999 12,999 Total liabilities 40,327 40,586 41,586 41,586 41,586 Net assets 1,125,968 1,167,161 1,207,577 1,247,919 1,288,771


170


Table 3.2.2: Budgeted Departmental Balance Sheet (as at 30 June) (continued)Estimated Budget Forward Forward Forward


$'000 $'000 $'000 $'000 $'000EQUITY*Parent entity interestContributed equity 872,383 909,263 945,813 982,363 1,018,913 Reserves 9,966 9,779 9,779 9,779 9,779 Retained surplus (accumulated deficit) 206,708 208,708 210,074 211,366 213,168 Total parent entity interest 1,089,057 1,127,750 1,165,666 1,203,508 1,241,860

Attributed to Non-Controlling InterestContributed equity 18,080 18,080 18,080 18,080 18,080 Reserves 8,489 8,489 8,489 8,489 8,489 Retained surplus (accumulated deficit) 10,342 12,842 15,342 17,842 20,342 Total non-controlling interest 36,911 39,411 41,911 44,411 46,911 Total Equity 1,125,968 1,167,161 1,207,577 1,247,919 1,288,771


171


Table 3.2.3: Departmental Statement of Changes in Equity – Summary of Movement (Budget Year 2014–15)


reserve capital$'000 $'000 $'000 $'000

Opening balance as at 1 July 2014Balance carried forward from previous period 217,050 18,455 890,463 1,125,968Adjusted opening balance 217,050 18,455 890,463 1,125,968

Comprehensive incomeGain/loss on revaluation of property - (187) - (187)Sub-total income and expense - (187) - (187)

Surplus (deficit) for the period 4,500 - - 4,500

Total comprehensive income recognised directly in equity 4,500 (187) - 4,313of which:Attributable to the Australian Government 2,000 - - 2,000Attributable to non-controlling interest 2,500 - - 2,500

Transactions with ownersContributions by ownersEquity injection - Appropriation - - 36,880 36,880Sub-total transactions with owners - - 36,880 36,880

Estimated closing balance as at 30 June 2015 221,550 18,268 927,343 1,167,161Less: non-controlling interests 12,842 8,489 18,080 39,411

Closing balance attributable to the Australian Government 208,708 9,779 909,263 1,127,750


172




2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000

OPERATING ACTIVITIESCash receivedAppropriations 34,012 34,328 34,332 33,978 34,144 Sale of goods and rendering of services 79,554 85,419 87,873 87,883 87,883 Interest 53,615 55,231 56,835 57,860 61,335 Dividends 25 23 37 37 37 Net GST received - - - - - Other 17,773 18,371 18,607 18,640 17,674 Total cash received 184,979 193,372 197,684 198,398 201,073

Cash usedEmployees 52,033 52,893 53,364 53,963 55,143 Suppliers 71,898 84,022 84,279 84,947 84,816 Grants 12,269 12,000 12,000 12,000 12,000 Taxes paid 295 516 807 807 807 Other 1,902 1,552 1,711 1,487 1,483 Total cash used 138,397 150,983 152,161 153,204 154,249 Net cash from (used by) operating activities 46,582 42,389 45,523 45,194 46,824

INVESTING ACTIVITIESCash receivedProceeds from sales of property,

plant and equipment 4,174 - - - - Investments 24,000 13,000 15,000 7,500 7,500 Other- repayment of loans 85,122 90,055 90,977 93,884 94,753 Total cash received 113,296 103,055 105,977 101,384 102,253

Cash usedPurchase of property, plant

and equipment 25,305 19,029 22,300 12,495 12,173 Purchase of non-financial assets - 17 - - - Investments 23,621 296 766 290 276 Other - loans / advances 168,891 164,119 166,312 170,157 172,326 Total cash used 217,817 183,461 189,378 182,942 184,775 Net cash from (used by) investing activities (104,521) (80,406) (83,401) (81,558) (82,522)


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Table 3.2.4: Budgeted Departmental Statement of Cash Flows (for the period ended 30 June) (continued)


2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000

FINANCING ACTIVITIESCash receivedContributed equity 37,210 36,880 36,550 36,550 36,550 Other 3,565 - - - - Total cash received 40,775 36,880 36,550 36,550 36,550

Cash usedRepayments of borrowings 188 - - - - Total cash used 188 - - - - Net cash from (used by)

financing activities 40,587 36,880 36,550 36,550 36,550 Net increase (decrease)

in cash held (17,352) (1,137) (1,328) 186 852 Cash and cash equivalents at the

beginning of the reporting period 127,521 110,169 109,032 107,704 107,890 Cash and cash equivalents at the

end of the reporting period 110,169 109,032 107,704 107,890 108,742


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$'000 $'000 $'000 $'000 $'000

NEW CAPITAL APPROPRIATIONSEquity injections - Bill 2 37,210 36,880 36,550 36,550 36,550 Total new capital appropriations 37,210 36,880 36,550 36,550 36,550

Provided for:Loan expenditure 37,210 36,880 36,550 36,550 36,550 Total Items 37,210 36,880 36,550 36,550 36,550 PURCHASE OF NON-FINANCIAL ASSETSFunded internally fromDepartmental resources 25,305 19,029 22,300 12,495 12,173 Total 25,305 19,029 22,300 12,495 12,173

RECONCILIATION OF CASHUSED TO ACQUIRE ASSETSTO ASSET MOVEMENT TABLETotal purchases 25,305 19,029 22,300 12,495 12,173 Total cash used to acquire assets 25,305 19,029 22,300 12,495 12,173


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Table 3.2.6: Statement of Asset Movements (2014–15)Asset Category

Buildings Other property, Investment Computer Totalplant and property software and

equipment intangibles$'000 $'000 $'000 $'000 $'000

As at 1 July 2014Gross book value 67,134 53,762 138,730 9,247 268,873Accumulated depreciation/amortisation

and impairment (13,638) (20,606) - (1,820) (36,064)Opening net book balance 53,496 33,156 138,730 7,427 232,809CAPITAL ASSET ADDITIONSEstimated expenditure onnew or replacement assetsBy purchase - other 1,798 2,251 14,320 660 19,029Total additions 1,798 2,251 14,320 660 19,029

Other movementsAssets held for sale or in a disposal group held for saleDepreciation/amortisation expense (2,438) (4,996) - (530) (7,964)

As at 30 June 2015Gross book value 68,932 56,013 153,050 9,907 287,902Accumulated depreciation/amortisationand impairment (16,076) (25,602) - (2,350) (44,028)Closing net book balance 52,856 30,411 153,050 7,557 243,874


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3.2.3 Notes to the Financial Statements

The budgeted financial statements have been prepared in accordance with the requirements of the Finance Minister’s Orders issued by the Minister for Finance.

The statements have been prepared:

on an accrual accounting basis

in compliance with Australian Accounting Standards and Australian Equivalents to International Financial Reporting Standards (AEIFRS) and other authoritative pronouncements of the Australian Accounting Standards Boards and the Consensus Views of the Urgent Issues Group.

Revenue from Government

Represents appropriation from Government to Indigenous Business Australia for the delivery of IBA‘s three programmes in pursuit of its single outcome. Increases in the ordinary annual appropriations are a result of new measures and variations explained in Section 2.

Expenses – Depreciation and Amortisation

Property, plant and equipment assets are written-off to their estimated residual values over their estimated useful lives using, in all cases, the straight-line method of depreciation.

Depreciation/amortisation rates (useful lives) and methods are reviewed at each balance date and necessary adjustments are recognised in the current, or current and future reporting periods, as appropriate.

Concessional Loan Discount

IBA continues to designate its loan portfolio at fair value through profit and loss per paragraph 11A of AASB 139 which provides for contracts with embedded derivatives, such as prepayment options, to be designated at fair value through profit and loss. The variation in the loan portfolio under fair value basis is written directly to the Income Statement.

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Financial Assets – Receivables

This includes loans and advances made by IBA to clients in the delivery of its outputs, in addition to amounts owing to IBA for delivery of goods and services, and dividends owed to IBA from subsidiaries, associates and investments. Loans receivable are carried at fair value under AASB 139.

Assets – Non-Financial

Except for any revalued assets, reported value of plant and equipment represents the purchase price paid less depreciation incurred.

Land and building held for investment are carried at fair value.

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INDIGENOUS LAND CORPORATION






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The Indigenous Land Corporation (ILC) is an independent Australian Government statutory authority established to provide economic, environmental, social and cultural benefits for Aboriginal people and Torres Strait Islanders by assisting with acquisition and management of land. The ILC was established on 1 June 1995, and is governed by the Aboriginal and Torres Strait Islander Act 2005 (ATSI Act).

The ATSI Act defines that the ILC has two functions: land acquisition and land management. The ILC’s functions are to be exercised ‘in addition to’, not ‘instead of’ the functions conferred on other agencies (Section 191F(3)).

The ILC has two priorities for the achievement of Indigenous benefits through acquiring and managing land:

access to and protection of cultural and environmental values

socio-economic development.

The ILC’s primary source of income is an annual minimum payment of $45 million indexed from the Aboriginal and Torres Strait Islander Land Account (ATSILA) pursuant to Section 193(2) of the ATSI Act. The ATSILA is administered by the Department of the Prime Minister and Cabinet (PM&C).

The Board is the ILC’s primary decision-making body and sets out the ILC’s strategic direction, policies and strategies in the National Indigenous Land Strategy 2013–2017. The Board oversees governance of the ILC’s administration, considers land acquisition and land management proposals, and monitors performance.

The ILC provides assistance with land acquisition and land management in collaboration with Indigenous organisations and landholders, and initiating projects to respond to opportunities to deliver significant Indigenous benefits. Key strategic priorities for the ILC will continue to support cultural, social and environmental outcomes as well as the achievement of training and employment outcomes and collaboration with other government agencies, industry, peak Indigenous organisations and the non-government sector. These collaborations bring additional expertise, funding and resources to achieve a more significant impact.

The ILC is committed to monitoring and evaluating its Land Acquisition and Land Management Programme to ensure benefits are being achieved and progress is made towards achieving its outcome. The ILC has evaluation and benefits frameworks that guide it in monitoring its performance and informing its strategic planning.

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Table 1.1: ILC Resource Statement – Budget Estimates for 2014–15 as at Budget May 2014



2014-15 2014-15 2014-15 2013-14$'000 $'000 $'000 $'000

Opening balance/Reserves at bank 26,100 - 26,100 -


Outcome 1 - 9,527 9,527 9,664

Total ordinary annual services 26,100 9,527 35,627 9,664Special Accounts (Prime Minister and Cabinet)Aboriginal and Torres Strait Islander

Land Account2 - - - -Total Special Account - 49,865 49,865 52,463-

Total funds from Government - 49,865 49,865 52,463FUNDS FROM OTHER SOURCES

Interest - 18,500 18,500 18,133Other - 4,700 4,700 12,090Total - 23,200 23,200 30,223

Total net resourcing for agency 26,100 82,592 108,692 92,350All figures are GST exclusive.CRF - Consolidated Revenue Fund.ILC is not directly appropriated as it is a CAC Act body. Appropriations are made to PM&C which are then paid to ILC and are considered 'departmental' for all purposes.1Appropriation Bill (No.1) 2014-15.2A CAC Act body may receive payment from a special account held by an FMA Act agency. The CAC Act body does not hold the special account itself and therefore does not have a balance carried forward from earlier years.


$'000 $'000

Receipts received from other agencies for the provision of services 9,527 9,664

9,527 9,664All figures are GST exclusive.

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ILC Budget Statements

1.3 BUDGET MEASURES

ILC has no budget measures in the 2014–15 Budget.

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Government outcomes are the intended results, impacts or consequences of actions by government on the Australian community. Commonwealth programmes are the primary vehicle by which government agencies achieve the intended results of their outcome statements. Agencies are required to identify the programmes which contribute to government outcomes over the budget and forward years.

ILC’s outcome is described below together with its related programmes, specifying the performance indicators and targets used to assess and monitor the performance of the ILC in achieving government outcomes.

Outcome 1: Enhanced socio-economic development, maintenance of cultural identity and protection of the environment by Indigenous Australians through land acquisition and management.

Outcome 1 StrategyThe statutory purpose of the ILC is to assist Indigenous people to acquire and manage land to achieve economic, environmental, social and cultural benefits.

The National Indigenous Land Strategy 2013–2017 describes that the ILC will assist with the acquisition and management of land-based projects that achieve the following priorities.

Provide Access to and Protection and Maintenance of Land with Cultural and Environmental Values

The ILC recognises the importance of land to Indigenous peoples’ cultural identity. The ILC collaborates with Indigenous proponents and other partners to acquire and manage land with cultural and environmental significance, and to protect and maintain the cultural and environmental values of land.

Deliver Socio-Economic Outcomes for Indigenous People

The ILC assists projects that deliver social and economic outcomes for Indigenous Australians. Priority is given to projects that provide sustainable employment and training that leads to employment. The ILC believes that sustainable employment creates benefits for Indigenous people, including increased standards of living, income and improved health and wellbeing.

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In 2014–15, the ILC will collaborate with Indigenous proponents and other partners to achieve these outcomes, including assisting Indigenous landholders to develop viable businesses and sustainably manage their land. In addition, the ILC will continue to operate employment and training projects on agricultural and tourism businesses to host Indigenous trainees and transition them to employment.

Aligning with Government Priorities

In pursuing achievements against these priorities, the ILC seeks to build a secure and sustainable land base now and for future generations. The Indigenous estate comprises more than 20% of Australia’s land mass and the ILC plays a critical role in assisting its management to achieve social, cultural, environmental and economic benefits. The ILC acknowledges that Indigenous economic development is a key policy priority for the Australian Government and for Aboriginal and Torres Strait Islander peoples and will contribute to working collectively to achieve a greater impact.

The ILC will continue to make important contributions to Indigenous economic development through creation of Indigenous enterprises and the implementation of its training-to-employment model in its agricultural and tourism businesses.

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Outcome Expense StatementTable 2.1 provides an overview of the total expenses for Outcome 1, by programme.

Table 2.1: Budgeted Expenses for Outcome 1Outcome 1: Enhanced socio-economic development, 2013-14 2014-15maintenance of cultural identity and protection of the Estimated Estimatedenvironment by Indigenous Australians through land actual expensesacquisition and management. expenses

$'000 $'000Programme 1.1: Assistance in the acquisition and management of an Indigenous land baseRevenue from Government

Ordinary annual services (Appropriation Bill No. 1) 9,664 9,527Payment from related entities 18,133 18,500Special Accounts 52,463 49,865

Revenues from other independent sources 12,090 4,700


Outcome 1 Totals by resource typeRevenue from Government

Ordinary annual services (Appropriation Bill No. 1) 9,664 9,527Payment from related entities 18,133 18,500Special Accounts 52,463 49,865

Revenues from other independent sources 12,090 4,700



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Programme 1.1: Acquisition and Management of an Indigenous Land Base


To assist Indigenous people to acquire and manage land to achieve economic, environmental, social and cultural benefits.

Programme Component Objectives

Cultural and Environmental Heritage Protection to provide land management assistance to Indigenous landholders to support

them in protecting and maintaining cultural and environmental heritage

to acquire and grant land to Indigenous organisations for the purposes of environmental heritage protection and maintenance of culture.

Socio-Economic Development to work with Indigenous land holders and other project partners to maximise the

productivity of existing Indigenous held land

to invest with Indigenous organisations and other project partners in the acquisition and grant of land to Indigenous organisations to achieve training, employment and social outcomes

to work with Indigenous land holders and other project partners to develop land based enterprises that provide training and create employment, including in agricultural and tourism industries, ecosystem and heritage management

to operate agricultural and tourism businesses that train Indigenous people and assist them to transition to secure jobs

to collaborate with other agencies and industry partners to implement regional projects that provide mentoring, support and advice to assist Indigenous landholders to sustainably manage land

to develop projects in collaboration with other organisations to assist Indigenous landholders engage with emerging enterprise opportunities in offsetting greenhouse gas emissions, developing biodiversity offsets and delivery of environmental services.

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Programme 1.1 ExpensesThe ILC’s primary source of income is an annual payment of $45 million indexed from the ATSILA pursuant to Section 193(2) of the ATSI Act.



Special Account Expenses: Aboriginal and Torres Strait Islander Land 52,463 49,865 51,011 52,338 53,646

AccountAnnual departmental expenses:

Departmental item CDEP Job Packages 9,664 9,527 9,389 9,156 9,065Departmental item Other 28,455 16,900 3,300 3,800 3,300

Total Programme expenses 90,582 76,292 63,700 65,294 66,011

Programme 1.1 DeliverablesThe ILC assists Indigenous corporations to acquire land, and Indigenous landholders to manage and use their land, to achieve benefits for Indigenous people. The ILC seeks to achieve the following deliverables.



Properties acquired for socio-economic development and cultural and environmental heritage protection

Properties granted 10 10 10 82 6

Employment and training projects implemented on ILC agricultural and tourism businesses

Regional land management projects implemented

Property-based, property planning land management projects assisted

30 603 60 60 60

15 15 15 15 15

6 31 3 3 3

11 11 11 11 11

1Given more than 20% of Australia’s land mass is Indigenous held, there will be an increased strategic focus on managing and developing the existing Indigenous estate.2The forecast is commensurate with the increase in focus on managing and developing existing held land.3The achieved and forecast targets are commensurate with the increase in focus on managing and developing existing held land.

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Programme 1.1 Key Performance IndicatorsParticipation in training and employment are the key indicators used for measuring progress in achieving socio-economic development. To recognise its relative contribution to the benefits delivered, the ILC counts those people it directly employs and hosts on its businesses separately from those jobs it has enabled in collaboration with Indigenous organisations and other project partners, through acquisition of land or provision of land management assistance.

The ILC works with Indigenous organisations to assist in the protection of the cultural and environmental values of land. This is measured through the proportion of ILC’s total projects, rather than a target number of properties.



Total number of Indigenous staff employed directly through ILC agricultural and tourism businesses

Total number of Indigenous trainees hosted through ILC agriculture and tourism businesses

Total number of Indigenous employment outcomes enabled through ILC land acquisition and land management projects

Total number of Indigenous training outcomes enabled through ILC land acquisition and land management projects

Total number of Indigenous-held properties with improved land management

Proportion of ILC-assisted projects that protect cultural and environmental heritage values or maintained culture

Proportion of projects that were collaborative with and leveraged funding from other agencies

66% 66% 66% 66% 66%

100 100 1304 130 130

25% 50%5 50% 50% 50%

250 260 1402 155 155

800 10003 1000 1000 1000

3801 400 450 450 450

500 500 500 500 500

1Target raised in line with current performance and ability to achieve beyond the previous target.2Forecast numbers are decreased as matching Commonwealth funding has not been secured on an ongoing basis.3The increase in achieved and forecast targets reflects the number of collaborative land management projects that have a focus on training to employment.4The forecast is commensurate with the increase in focus on managing and developing existing held land.5The proportion has increased with improved reporting and the implementation of the ILC Environment and Heritage Strategy.

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3.1.1 Movement of Administered Funds Between YearsILC has no administered funds in the 2014–15 Budget.

3.1.2 Special AccountsILC has no special accounts in the 2014–15 Budget.



No. 1 approp$'000 $'000 $'000 $'000

Indigenous Land Corporation

Departmental 2014-15 9,527 9,527 73,065 82,592 1.1Departmental 2013-14 9,664 9,664 82,686 92,350 1.1Total outcome 2014-15 9,527 9,527 73,065 82,592Total outcome 2013-14 9,664 9,664 82,686 92,350

Total departmental 2014-15 9,527 9,527 73,065 82,592Total departmental 2013-14 9,664 9,664 82,686 92,350

Total AGIE 2014-15 9,527 9,527 73,065 82,592Total AGIE 2013-14 9,664 9,664 82,686 92,350

Appropriations

Outcome 1

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3.2.1 Differences in Agency Resourcing and Financial StatementsILC has no differences in agency resourcing and financial statements.


The ILC’s primary source of income is an annual minimum payment of $45 million indexed from the ATSILA pursuant to Section 193(2) of the ATSI Act. Estimated payments from the ATSILA from 2013–14 onwards have been provided by PM&C, which is responsible for the administration of the ATSILA.

The total resources for the ILC’s outcome include the income from the ATSILA, and represent the funds available to ILC to carry out its legislated functions.

Under its legislation, ILC has the flexibility to invest funds and to roll over funds not expended in previous years.

Under Section 191H of the ATSI Act, ILC has the specific power to invest moneys of ILC. In addition, Section 193K of the ATSI Act specifically exempts ILC from Section 18(3) of the Commonwealth Authorities and Companies Act 1997 (CAC Act). This section of the CAC Act deals with allowable investments. Earnings on these investments are represented in the Budgeted Departmental Comprehensive Income Statement.

Under its legislation, ILC acquires land for the specific purpose of granting an interest in that land to an Aboriginal or Torres Strait Islander corporation. ILC capitalises the land on purchase and makes an immediate provision for the grant equivalent to the purchase price. In the Budgeted Departmental Comprehensive Income Statement, the expenses associated with the purchase and grant of the land are recognised in the period in which the land is purchased. Expenses associated with land management projects are recognised in the period in which the expenditure is incurred.

ILC also holds properties for granting that have significant livestock on them. In accordance with Australian Accounting Standards, ILC values the livestock on a market-to-market basis. Accordingly, the change in market value in any given period is recognised in the Budgeted Departmental Comprehensive Income Statement.

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3.2.3 Budgeted Financial Statements TablesTable 3.2.1: Comprehensive Income Statement (Showing Net Cost of Services) (for the period ended 30 June)


2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000

EXPENSESEmployee benefits 13,341 14,424 14,696 15,036 15,308Suppliers 66,771 51,368 38,504 37,433 38,528Depreciation and amortisation 1,500 1,500 1,500 1,500 1,500Finance costs 8,970 9,000 9,000 11,325 10,675Total expenses 90,582 76,292 63,700 65,294 66,011LESS: OWN-SOURCE INCOMEOwn-source revenueInterest 19,440 18,500 18,500 18,500 18,500Other 63,246 54,565 55,711 57,038 58,346Total own-source revenue 82,686 73,065 74,211 75,538 76,846Total own-source income 82,686 73,065 74,211 75,538 76,846Net cost of (contribution by)

services 7,896 3,227 (10,511) (10,244) (10,835)Revenue from Government 9,664 9,527 9,389 9,156 9,065* * * *Surplus (Deficit) attributable to

the Australian Government 1,768 6,300 19,900 19,400 19,900Total comprehensive income (loss) 1,768 6,300 19,900 19,400 19,900Total comprehensive income (loss)

attributable to the Australian Government 1,768 6,300 19,900 19,400 19,900


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Cash and cash equivalents 26,100 16,900 13,100 10,500 11,300Trade and other receivables 325,188 341,188 228,388 251,888 272,488Other financial assets 358 358 358 358 358


Land and buildings 208 208 208 208 208Property, plant and equipment 100,170 99,670 98,170 96,670 95,170Intangibles 318 318 318 318 318Biological Assets 35,047 35,047 35,047 35,047 35,047Assets held for sale 495 495 495 495 495Inventories 158,222 162,122 152,122 142,122 132,122Other non-financial assets 32,393 32,393 32,393 32,393 32,393


Suppliers 2,828 2,828 2,828 2,828 2,828Other payables 18,910 18,910 18,910 18,910 18,910

Total payables 21,738 21,738 21,738 21,738 21,738 Interest bearing liabilities

Loans 138,000 138,000 - - -Total interest bearing liabilities 138,000 138,000 - - - Provisions

Employee provisions 3,096 3,096 3,096 3,096 3,096Other provisions 184,370 188,270 178,270 168,270 158,270


Reserves 6,949 6,949 6,949 6,949 6,949Retained surplus

(accumulated deficit) 324,346 330,646 350,546 369,946 389,846Total parent entity interest 331,295 337,595 357,495 376,895 396,795Prepared on Australian Accounting Standards basis.*‘Equity’ is the residual interest in assets after deduction of liabilities.

195



Retained Asset Totalearnings revaluation equity

reserve$'000 $'000 $'000


previous period 324,346 6,949 331,295Adjusted opening balance 324,346 6,949 331,295Comprehensive income

Surplus (deficit) for the period 6,300 - 6,300

Total comprehensive income 6,300 - 6,300of which:

Attributable to the Australian Government 6,300 - 6,300Estimated closing balance

as at 30 June 2015 330,646 6,949 337,595Closing balance attributable to the

Australian Government 330,646 6,949 337,595Prepared on Australian Accounting Standards basis.

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2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000


Receipts from Government 9,664 9,527 9,389 9,156 9,065Sale of Goods and Services 1,521 - - - -Interest 1,307 - 137,999 - -Other 62,425 54,565 55,711 57,038 58,346


Employees 13,155 14,424 14,696 15,036 15,308Suppliers 69,417 51,368 58,503 57,433 58,528Borrowing costs 8,970 9,000 9,000 11,325 10,675


operating activities (16,625) (10,700) 120,900 (17,600) (17,100)INVESTING ACTIVITIESCash received

Loans and advances - 3,000 4,800 6,500 9,400Investments 9,975 - - - -


Purchase of property, plant 1,500 1,500 1,500 1,500 1,500and equipment


investing activities 8,475 1,500 3,300 5,000 7,900FINANCING ACTIVITIESCash used

Repayments of borrowings - - 128,000 (10,000) (10,000)Total cash used - - 128,000 (10,000) (10,000)Net cash from (used by)

financing activities - - (128,000) 10,000 10,000Net increase (decrease)

in cash held (8,150) (9,200) (3,800) (2,600) 800Cash and cash equivalents at the

beginning of the reporting period 34,250 26,100 16,900 13,100 10,500Cash and cash equivalents at the

end of the reporting period 26,100 16,900 13,100 10,500 11,300Prepared on Australian Accounting Standards basis.

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$'000 $'000 $'000 $'000 $'000PURCHASE OF NON-FINANCIAL

ASSETSFunded internally from

departmental resources1 1,500 1,500 1,500 1,500 1,500TOTAL 1,500 1,500 1,500 1,500 1,500


Total purchases 1,500 1,500 1,500 1,500 1,500Total cash used to acquire assets 1,500 1,500 1,500 1,500 1,500

Prepared on Australian Accounting Standards basis.1Includes the following sources of funding:

- current and prior year Bill 1/3/5 appropriations (excluding amounts from the DCB)- donations and contributions- gifts- internally developed assets- s31 relevant agency receipts- proceeds from the sale of assets.

198



Land Other property, Computer Totalplant and software and


As at 1 July 2014Gross book value 208 119,402 672 120,282Accumulated depreciation/amortisation

and impairment - (19,732) (354) (20,086)Opening net book balance 208 99,670 318 100,196CAPITAL ASSET ADDITIONSEstimated expenditure on

new or replacement assetsBy purchase - other - (1,500) - (1,500)Total additions - (1,500) - (1,500)

Other movementsDepreciation/amortisation expense - 1,500 - 1,500Total other movements - 1,500 - 1,500As at 30 June 2015Gross book value 208 117,902 672 118,782Accumulated depreciation/amortisation

and impairment - (18,232) (354) (18,586)Closing net book balance 208 99,670 318 100,196Prepared on Australian Accounting Standards basis.

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Accounting Policies

Basis of Accounting

The budgeted financial statements are a special purpose financial report.

Rounding

The budgeted financial statements have been rounded to the nearest thousand dollars.

Investments

Investments are recorded at their current cash-based valuation as at reporting date. Section 193K of the ATSI Act states that the investment restrictions in Section 18(3) of the CAC Act do not apply to ILC.

Inventory Held for Distribution

Inventory held for distribution represents properties purchased for the purpose of transfer to appropriate organisations in line with the objectives of ILC and properties transferred to ILC as a result of the Aboriginal and Torres Strait Islander Commission Amendment Act 2004. Land purchases (including the related plant, equipment and livestock, acquisition and holding costs) are capitalised on purchase and classified as inventory. A provision is raised in the Budgeted Departmental Comprehensive Income Statement for the full cost of land purchases (excluding livestock) representing the sacrifice of future benefits embodied in the assets.

Biological Assets

Livestock held for trading purposes is classified as biological assets. Livestock is valued at market value as at reporting date.

Recognition of Income

Receipts from the Land Account are recognised at the time ILC becomes entitled to receive the revenue and have been classified for the purpose of this report as Revenues from Land Account.

Economic Dependency

ILC is dependent on an annual payment from the ATSILA in accordance with Section 193(2) of the ATSI Act.

Reporting Entities

The consolidated budgeted financial statements are those of the economic entity, comprising ILC (the parent entity) and its wholly owned subsidiaries other than Voyages Indigenous Tourism Australia Pty Ltd that has been classified as a Public Non-Financial Corporation and is not a General Government Sector body.

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Departmental and Administered Items

ILC has no administered items.

Asset Valuation

From 1 July 2005, in accordance with Australian Equivalents of International Financial Reporting Standards, government agencies and authorities are required to use fair value basis to measure property, plant and equipment.

All assets are initially recorded at cost. Property, plant and equipment and other infrastructure assets are periodically revalued at their fair value.

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Office of the Commonwealth Ombudsman


OFFICE OF THE COMMONWEALTH OMBUDSMAN




205

OCO Budget Statements

OFFICE OF THE COMMONWEALTH OMBUDSMAN



The planned outcome of the Office of the Commonwealth Ombudsman (OCO) is fair and accountable administration by Australian Government agencies by investigating complaints, reviewing administrative action and statutory compliance by law enforcement agencies.

The OCO ensures administrative action by Australian Government agencies is fair and accountable by: handling complaints

conducting investigations

performing audits and inspections

encouraging good administration

discharging other specialist oversight tasks (such as monitoring the operation of the Commonwealth public interest disclosure scheme and the exercise of coercive immigration powers).

In 2014–15, the OCO will continue its focus on significant and systemic issues arising from complaints, inspections, monitoring and feedback from the community. We will continue our endeavours in improving our policies, procedures and practices to deliver efficient, practical, high quality and more consistent approaches to complaints.

The strategic priorities of the OCO are to:

foster good public administration that is fair, lawful, accountable and responsive

encourage agency integrity and compliance with legislation in the use of intrusive and coercive powers

improve accountability and integrity in the Commonwealth public sector by supporting agencies to address suspected wrongdoing

improve Australian public administration through collaboration with agencies

conduct our business efficiently and effectively.

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Table 1.1: OCO Resource Statement — Budget Estimates for 2014-15 as at Budget May 2014



2014-15 2014-15 2014-15 2013-14$'000 $'000 $'000 $'000


Departmental appropriationPrior year departmental appropriation2 8,818 - 8,818 8,792 Departmental appropriation3 - 17,959 17,959 18,630 s31 Relevant agency receipts4 - 1,695 1,695 1,903 Total 8,818 19,654 28,472 29,325


Other services



Special appropriationsTotal special appropriations C - - - -


Special AccountsTotal Special Account D - - - -


1Appropriation Bill (No.1) 2014-15.2Estimated adjusted balance carried forward from previous year.3Includes an amount of $0.8m in 2014-15 for the Departmental Capital Budget (refer to table 3.2.5 for further details). For accounting purposes this amount has been designated as 'contributions by owners'.4s31 Relevant Agency receipts – estimate.

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1.3 BUDGET MEASURES

Budget measures relating to the OCO are detailed in Budget Paper No. 2 and are summarised below.

Table 1.2: OCO 2014-15 Budget MeasuresProgramme 2013-14 2014-15 2015-16 2016-17 2017-18

$'000 $'000 $'000 $'000 $'000Expense measuresTargeted savings — public service efficiencies 1.1

Departmental expenses (25) (52) (94) (105) - Total (25) (52) (94) (105) -

Efficiency dividend — a further temporaryincrease of 0.25 per cent 1.1Departmental expenses - (46) (90) (135) (136)

Total - (46) (90) (135) (136)

Inspector-General of Taxation — transfer oftax complaints handling1 1.1Departmental expenses - (649) (645) (642) (647)

Total - (649) (645) (642) (647)

Total expense measuresDepartmental (25) (747) (829) (882) (783)

Total (25) (747) (829) (882) (783)

Capital measuresEfficiency dividend — a further temporary

increase of 0.25 per cent 1.1Departmental capital - (2) (4) (6) (6)

Total - (2) (4) (6) (6)

Total capital measuresDepartmental - (2) (4) (6) (6)

Total - (2) (4) (6) (6)

Prepared on a Government Finance Statistics (fiscal) basis.1The function of the Commonwealth Ombudsman in respect of taxation complaint case handling will transfer to the Inspector-General of Taxation (IGoT).

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Government outcomes are the intended results, impacts or consequences of actions by the government on the Australian community. Commonwealth programmes are the primary vehicle by which government agencies achieve the intended results of their outcome statements. Agencies are required to identify the programmes which contribute to government outcomes over the Budget and forward years.

The OCO’s outcome is described below together with its related programmes, specifying the performance indicators and targets used to assess and monitor the performance of the OCO in achieving government outcomes.

Outcome 1: Fair and accountable administrative action by Australian Government agencies by investigating complaints, reviewing administrative action and inspecting statutory compliance by law enforcement agencies.

Outcome 1 StrategyThe key strategies by which the OCO will seek to achieve its outcome are to:

build our capacity as a trusted advisor on good public administration by:

o engaging with agencies to influence administrative improvements and promote good administrative practices

o identifying those within agencies who can bring about and influence change

o monitoring the implementation of our recommendations to agencies

o providing authoritative advice on agency complaint handling and good public administration.

enhance our complaints handling by:

o focusing our investigations on our strategic priority areas

o examining and refining our complaints handling processes as necessary.

exercising efficient and effective oversight of selected intrusive and coercive actions of agencies by:

o completing inspections, audits and reports in accordance with legislative and policy requirements.

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monitor and promote the administration of the public interest disclosure scheme for the Commonwealth public sector by:

o reporting on the operation of the Commonwealth public interest disclosure scheme in accordance with legislative requirements.

strengthening our Office’s accountability through:

o improved performance reporting, evaluation, audit and governance.

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Table 2.1: Budgeted Expenses for Outcome 1Outcome 1: Fair and accountable administrative action by 2013-14 2014-15Australian Government agencies by investigating complaints, Estimated Estimatedreviewing administrative action and inspecting statutory actual expensescompliance by law enforcement agencies. expenses

$'000 $'000Programme 1.1: Office of the Commonwealth OmbudsmanDepartmental expenses

Departmental appropriation1 19,900 18,894 Expenses not requiring appropriation in the Budget year2 767 723


Outcome 1 Totals by appropriation typeDepartmental expenses

Departmental appropriation1 19,900 18,894 Expenses not requiring appropriation in the Budget year2 767 723



Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of the Budget year as government priorities change.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 and audit fees.

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Programme 1.1: Office of the Commonwealth Ombudsman

Programme 1.1 ObjectivesThe objectives of this programme are to:

contribute to the fair treatment of people by the agencies we oversight, including encouraging agencies to improve their internal complaints handling systems

provide an accessible, effective and targeted complaints-handling service

effective oversight of agency compliance with legislation in the use of selected intrusive or coercive powers

monitor and promote the administration of the public interest disclosure scheme for the Commonwealth public sector

conduct our business efficiently and effectively.

Programme 1.1 ExpensesThere are no significant changes in the level of activity or funding required for this programme in 2014-15 or the forward years.


budget year 1 year 2 year 3$'000 $'000 $'000 $'000 $'000

Annual departmental expenses:Departmental appropriation1 19,900 18,894 18,588 18,412 19,164


Total programme expenses 20,667 19,617 19,287 19,145 19,958 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 and audit fees.

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Programme 1.1 DeliverablesThe programme deliverables include:

identify and report on systemic issues in public administration, including making recommendations and reporting on their implementation

encourage agencies to improve internal complaints handling systems and ensure they are accessible

oversight of selected intrusive or coercive powers used by relevant agencies

contribute to public administration through presentations, speeches, reports, submissions and information guidance including best practice guides

contribute to the effective oversight of the Commonwealth public interest disclosure scheme

targeted stakeholder engagement through the provision of information and education regarding the role of the Office

implement improvements to our business operations.

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Programme 1.1 Key Performance IndicatorsQuantitative

percentage or number of complaints handled or resolved within internal service standards

percentage or number of remedial investigation recommendations made, accepted and implemented

number of discretionary decisions to not, or to cease to, investigate

percentage or number of inspections, audits and review conducted and reported in accordance with legislative or policy requirements

percentage or number of remedial inspection recommendations made, accepted and implemented

number of speeches, presentations, reports and submissions made to parliamentary, ministerial, departmental or external stakeholders

percentage or number of remedial recommendations made, accepted and implemented

the Ombudsman’s Annual Report on the operation of the Public Interest Disclosure Act 2013 is completed on time and in accordance with legislative requirements

number of stakeholder engagement activities completed

percentage or number of engagement activities that target priority stakeholders

number of Learning and Development courses offered and number of staff attendances per year

percentage or number of internal policies, practices and processes updated and refined

number of reportable financial breaches.

Qualitative

the Ombudsman is satisfied that complaint investigations appropriately identify and report on systemic issues in public administration, and make salient, practical and useful recommendations

external stakeholders are satisfied with the quality, timeliness and utility of our investigations and reporting

the Ombudsman is satisfied that inspections, audits and reviews appropriately identify and report on systemic issues in public administration, and make salient, practical and useful recommendations

external stakeholders are satisfied with the quality, timeliness and utility of our inspections and reporting

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the Ombudsman is satisfied that our speeches, presentations, reports and submissions appropriately identify and report on systemic issues in public administration, and make salient, practical and useful recommendations

external stakeholders are satisfied with the quality, timeliness and utility of our speeches, reports and submissions

the Ombudsman is satisfied that our oversight of the Commonwealth public interest disclosure scheme is appropriate and effective

external stakeholders are satisfied with the OCO’s engagement activities

staff are satisfied with operational practices.

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3.1.1 Movement of Administered Funds Between Years

The OCO has no movement of administered funds between years.

3.1.2 Special Accounts

The OCO does not have any special accounts.

3.1.3 Australian Government Indigenous Expenditure

The OCO does not have any Indigenous specific expenditure.

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3.2 Budgeted Financial Statements

The agency resource statement (Table 1.1) provides a consolidated view of the resources available to the office in 2014-15. This includes equity injections (provided as Departmental Capital Budget) and appropriations receivable. The Comprehensive Income Statement (Table 3.2.1) shows only the operating appropriation provided in 2013-14.


Income Statement

The OCO is budgeting for a break-even operating result after adjustments for unfunded depreciation and amortisation expense in 2014-15 and the forward years.

Revenue from government (appropriation funding) has decreased from $18.0 million in 2013-14 to $17.2 million in 2014-15. This reduction is the combined effect of targeted savings and changes in price and wage indices and the impact of the increased efficiency dividend.

Supplier and employee expenses will reduce in line with the reduced appropriation consistent with government policy to reduce spending on items such as travel, advertising and printing and the implementation of more efficient management structures.

Balance Sheet

The OCO’s budgeted net asset position at 30 June 2015 will be $4.8 million(2013–14: $4.7 million).

The main payables and provisions are expected to remain at around the current levels with the primary liability continuing to be accrued employee entitlements.


The statement of changes in equity shows the expected movements in equity over the 2014–15 year. The retained earnings portion of equity will reduce as a result of the net cash appropriations not providing revenue to fund the depreciation expense. This is offset by an increase in contributed equity where the funding for the OCO’s departmental capital budget is recorded.

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3.2.3 Budgeted Financial Statements TablesTable 3.2.1 Comprehensive Income Statement (Showing Net Cost of Services)(for the period ended 30 June)


2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000

EXPENSESEmployee benefits 15,500 14,736 14,550 14,285 14,468 Suppliers 4,443 4,201 4,081 4,170 4,739 Depreciation and amortisation 724 680 656 690 751 Total expenses 20,667 19,617 19,287 19,145 19,958 LESS: OWN-SOURCE INCOMEOwn-source revenueSale of goods and rendering of services 1,903 1,695 1,615 1,574 2,195 Total own-source revenue 1,903 1,695 1,615 1,574 2,195 GainsOther 43 43 43 43 43 Total gains 43 43 43 43 43 Total own-source income 1,946 1,738 1,658 1,617 2,238

Net cost of (contribution by) services 18,721 17,879 17,629 17,528 17,720 Revenue from Government 17,997 17,199 16,973 16,838 16,969

Surplus (Deficit) attributable to the Australian Government (724) (680) (656) (690) (751)

Total comprehensive income (loss) attributable to the Australian Government (724) (680) (656) (690) (751)



(loss) less depreciation/amortisationexpenses previously funded throughrevenue appropriations. - - - - -

plus depreciation/amortisation expensespreviously funded through revenueappropriations1 724 680 656 690 751

Total Comprehensive Income (loss) - as per the Statement ofComprehensive Income (724) (680) (656) (690) (751)


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Cash and cash equivalents 114 114 114 114 114 Trade and other receivables 8,841 8,797 8,229 8,060 7,975 Other financial assets 73 45 17 1 1


Property, plant and equipment 2,328 2,297 2,319 2,307 2,401 Intangibles 340 451 526 601 517 Other non-financial assets 235 261 261 261 261


Suppliers 498 490 476 486 483 Lease incentives 1,465 1,274 1,103 942 803 Fixed lease increase 1,103 1,205 1,256 1,275 1,255

Total payables 3,066 2,969 2,835 2,703 2,541

ProvisionsEmployee provisions 4,042 4,106 3,644 3,651 3,728 Other provisions 124 111 111 51 51


Contributed equity 4,956 5,716 6,469 7,222 7,983 Reserves 1,033 1,033 1,033 1,033 1,033 Retained surplus

(accumulated deficit) (1,290) (1,970) (2,626) (3,316) (4,067) Total parent entity interest 4,699 4,779 4,876 4,939 4,949 Total Equity 4,699 4,779 4,876 4,939 4,949 Prepared on Australian Accounting Standards basis.*'Equity' is the residual interest in assets after deduction of liabilities.

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Retained Asset Other Contributed Totalearnings revaluation reserves equity/ equity

reserve capital$'000 $'000 $'000 $'000 $'000


previous period (1,290) 1,033 - 4,956 4,699 Adjusted opening balance (1,290) 1,033 - 4,956 4,699 Comprehensive income

Surplus (deficit) for the period (680) - - - (680)

Total comprehensive income (680) - - - (680) of which:

Attributable to the Australian Government (680) - - - (680) Transactions with owners

Contributions by ownersDepartmental Capital Budget (DCBs) - - - 760 760

Sub-total transactions with owners - - - 760 760 Estimated closing balance

as at 30 June 2015 (1,970) 1,033 - 5,716 4,779 Closing balance attributable to the

Australian Government (1,970) 1,033 - 5,716 4,779


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2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000


Appropriations 17,424 17,841 18,067 17,588 17,619 Sale of goods and rendering of services 2,329 1,733 1,646 1,591 1,677

Total cash received 19,753 19,574 19,713 19,179 19,296

Cash usedEmployees 15,434 15,172 15,510 14,779 14,890 Suppliers 4,291 4,402 4,203 4,400 4,406


operating activities 28 - - - - INVESTING ACTIVITIESCash used

Purchase of property, plant and equipment 453 496 500 497 647

Computer software and intangibles 155 264 253 256 114 Total cash used 608 760 753 753 761 Net cash from (used by)

investing activities (608) (760) (753) (753) (761) FINANCING ACTIVITIESCash received

Contributed equity 608 760 753 753 761 Total cash received 608 760 753 753 761 Net cash from (used by)

financing activities 608 760 753 753 761 Net increase (decrease)

in cash held 28 - - - - Cash and cash equivalents at the




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Capital budget - Bill 1 (DCB) 608 760 753 753 761 Total new capital appropriations 608 760 753 753 761


Total Items 608 760 753 753 761 PURCHASE OF NON-FINANCIAL

ASSETSFunded by capital appropriation - DCB1 608 760 753 753 761

TOTAL 608 760 753 753 761


Total purchases 608 760 753 753 761 Total cash used to acquire assets 608 760 753 753 761

Prepared on Australian Accounting Standards basis.DCB = Departmental Capital Budget1Includes purchases from current and previous year's department capital budgets.

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Other property, Computer Totalplant and software and

equipment intangibles$'000 $'000 $'000

As at 1 July 2014Gross book value 4,183 1,683 5,866Accumulated depreciation/amortisation

and impairment (1,855) (1,343) (3,198)Opening net book balance 2,328 340 2,668CAPITAL ASSET ADDITIONSEstimated expenditure on


annual services1 496 264 760Total additions 496 264 760

Other movementsDepreciation/amortisation expense (527) (153) (680)Other - - -Total other movements (527) (153) (680)As at 30 June 2015Gross book value 4,679 1,947 6,626Accumulated depreciation/amortisation

and impairment (2,382) (1,496) (3,878)Closing net book balance 2,297 451 2,748Prepared on Australian Accounting Standards basis.1‘Appropriation ordinary annual services’ refers to funding provided through Appropriation Bill (No.1) 2014-15 for depreciation / amortisation expenses, DCBs / ACBs or other operational expenses.

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Office of the Inspector-General of Intelligence and Security


OFFICE OF THE INSPECTOR-GENERAL OF INTELLIGENCE AND SECURITY




227

OFFICE OF THE INSPECTOR-GENERAL OF INTELLIGENCE AND SECURITY



The planned outcome for the Office of the Inspector-General of Intelligence and Security (OIGIS) is the provision of independent assurance for the Prime Minister, senior ministers and Parliament as to whether Australia’s intelligence and security agencies act legally and with propriety by inspecting, inquiring into and reporting on their activities.

OIGIS provides a specialised review mechanism for the six agencies that comprise the Australian Intelligence Community:

Australian Security Intelligence Organisation (ASIO)

Australian Secret Intelligence Service (ASIS)

Defence Imagery and Geospatial Organisation (DIGO)

Defence Intelligence Organisation (DIO)

Australian Signals Directorate (ASD)

Office of National Assessments (ONA).

A proactive inspection programme is undertaken by OIGIS each year into the activities of each Australian Intelligence Community agency. Formal inquiries may also be conducted at the Inspector-General’s own motion, as a result of complaints received, or by request from relevant ministers. The Prime Minister can request the Inspector-General to inquire into an intelligence or security matter relating to an Australian Government agency outside of the Australian Intelligence Community. During formal inquiries, the Inspector-General of Intelligence and Security Act 1986 provides for the use of strong coercive powers, immunities and protections.

In conducting its inquiries and inspections, OIGIS focuses on compliance by the Australian Intelligence Community agencies with Australian law and ministerial directions, the propriety of their activities, and respect for human rights.

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Table 1.1: OIGIS Resource Statement — Budget Estimates for 2014-15 as at Budget May 2014



2014-15 2014-15 2014-15 2013-14$'000 $'000 $'000 $'000


Departmental appropriationPrior year departmental appropriation2 2,124 - 2,124 1,845Departmental appropriation3 - 2,189 2,189 2,178s31 Relevant agency receipts4 395 - 395 -Total 2,519 2,189 4,708 4,023






Special Accounts - - - -Total Special Account D - - - -

Total resourcingA+B+C+D 2,519 2,189 4,708 4,023Total net resourcing for agency 2,519 2,189 4,708 4,023




3Includes an amount of $0.026m in 2014-15 for the Departmental Capital Budget (refer to table 3.2.5 for further details). For accounting purposes this amount has been designated as 'contributions by owners'.

4s31 Relevant Agency receipts — estimate.

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OIGIS Budget Statements

1.3 BUDGET MEASURES

Budget measures in Part 1 relating to OIGIS are detailed in Budget Paper No. 2 and are summarised below.

Table 1.2: OIGIS 2014-15 Budget MeasuresPart 1: Measures Announced Since the 2013-14 MYEFO

Programme 2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000

Expense measures Efficiency Dividend — a further temporaryincrease of 0.25 per cent 1.1

Departmental expenses - (6) (11) (16) (17)Total - (6) (11) (16) (17)Total expense measures

Departmental - (6) (11) (16) (17)Total - (6) (11) (16) (17)Prepared on a Government Finance Statistics (fiscal) basis.

Part 2: MYEFO Measures Not Previously Reported in a Portfolio Statement

Programme 2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000

MeasuresTargeted savings — public serviceefficiencies 1.1

Departmental expenses (1) (4) (9) (13) -Total (1) (4) (9) (13) -Total measures

Departmental (1) (4) (9) (13) -Total (1) (4) (9) (13) -


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Each outcome is described below together with its related programmes, specifying the performance indicators and targets used to assess and monitor the performance of OIGIS in achieving Government outcomes.

Outcome 1: Independent assurance for the Prime Minister, senior ministers and Parliament as to whether Australia’s intelligence and security agencies act legally and with propriety by inspecting, inquiring into and reporting on their activities.

Outcome 1 StrategyThe key strategies by which OIGIS will seek to achieve its outcome are:

to continue and expand the agency’s inspection activities, which involve proactively monitoring and reviewing the activities of the Australian Intelligence Community agencies

where appropriate, to initiate ‘own motion’ inquiries and investigate complaints or referrals about the activities of the Australian Intelligence Community agencies

at the request of the Prime Minster, to inquire into an intelligence and security matter of a non-Australian Intelligence Community agency.

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Table 2.1: Budgeted Expenses for Outcome 1Outcome 1: Independent assurance for the Prime Minister, 2013-14 2014-15senior ministers and Parliament as to whether Australia's Estimated Estimatedintelligence and security agencies act legally and with actual expensespropriety by inspecting, inquiring into and reporting on expensestheir activities. $'000 $'000

Programme 1.1: Office of the Inspector General of Intelligence and SecurityDepartmental expenses

Departmental appropriation1 2,178 2,163Expenses not requiring appropriation in the Budget year2 131 131


Outcome 1 Totals by appropriation typeDepartmental expenses

Departmental appropriation1 2,178 2,163Expenses not requiring appropriation in the Budget year2 131 131


Average Staffing Level (number) 12 11Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of the Budget year as government priorities change.1Departmental Appropriation combines ‘Ordinary annual services (Appropriation Bill No. 1)’ and ‘Revenue from independent sources (s31)’.

2Expenses not requiring appropriation in the Budget year is made up of depreciation expense, amortisation expense, makegood expense, audit fees, IT and other services provided free of charge.

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Programme 1: Office of the Inspector-General of Intelligence and Security

Programme ObjectiveThe objectives of this programme are:

to fulfil the responsibilities and functions outlined in the Inspector-General of Intelligence and Security Act 1986

to provide independent assurance for the Prime Minister, senior ministers and Parliament as to whether Australia’s intelligence and security agencies are acting legally and with propriety.

Programme ExpensesThe most significant programme expenses are employee-related expenses. OIGIS also receives significant assistance free of charge from the Department of the Prime Minister and Cabinet.

Factors that may have future resourcing implications include:

changes in Australian Intelligence Community activities

changes in the jurisdiction or role of OIGIS

changes in complaint or inquiry numbers.



Annual departmental expenses:Departmental appropriation 2,178 2,163 2,142 2,139 2,154


Total Programme expenses 2,309 2,294 2,273 2,279 2,3201Expenses not requiring appropriation in the Budget year is made up of Depreciation Expense, Amortisation Expense, Makegood Expense, Audit Fees, IT and Other Services Provided Free of Charge.

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Programme DeliverablesThe programme deliverables include:

conducting own motion inquiries as appropriate

undertaking a comprehensive inspection and visits programme to monitor and review casework

providing effective and timely responses to complaints or referrals received from members of the public, ministers or members of parliament

undertaking presentations to new and existing members of the Australian Intelligence Community agencies to ensure an awareness and understanding of their responsibilities and accountability

liaising with other accountability or integrity agencies in Australia and overseas.

Programme Key Performance Indicators

the breadth and depth of inspection work undertaken

the timeliness of completion of inquiries or complaint resolution

the level of acceptance by agencies, complainants and ministers of findings and recommendations of inquiries conducted

the extent to which there has been change within the agencies as a result of activities of OIGIS.

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3.1.1 Movement of Administered Funds Between YearsOIGIS does not have any movements of administered funds between years.

3.1.2 Special AccountsOIGIS does not have any special accounts.

3.1.3 Australian Government Indigenous ExpenditureOIGIS does not have any Indigenous specific expenses.

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3.2.1 Differences in Agency Resourcing and Financial StatementsThe agency resource statement (Table 1.1) provides a consolidated view of all the resources available to the agency in 2014-15. This includes equity injections and appropriations receivable that is yet to be drawn down to cover payables and provisions in the Balance Sheet. The Comprehensive Income Statement (Table 3.2.1) shows only the operating appropriations provided in 2014-15.

3.2.2 Analysis of Budgeted Financial StatementsIncome Statement

OIGIS is budgeting for a break-even operating result, adjusted for depreciation and amortisation expense, in 2014-15 and the forward years.

In line with the net cash appropriation arrangements effective from 2010-11, revenue from government has been reduced by an amount equal to depreciation and amortisation expense. Future asset replacements are funded through the departmental capital budget detailed in Table 3.2.5.

As in previous years, the most significant component of the standard operating expenditure will be salary related, which reflects the nature of the agency’s activities and functions.

The resources received free of charge include the office space occupied in the Department of the Prime Minister and Cabinet building (estimated value: $0.1 million per year), the financial audit services provided by the Australian National Audit Office (estimated value $0.014 million per year) and maintenance of the internal secure communications network provided by the Defence Signals Directorate (estimated value: $0.02 million per year).

Balance Sheet

In 2014-15 it is anticipated that the secure IT network, which represents the most significant component of OIGIS’s assets, will be upgraded. OIGIS also holds office equipment and furniture, the majority of which are owned by the Department of the Prime Minister and Cabinet and provided free of charge.

OIGIS’s significant liabilities include accrued leave liabilities.


The cash holdings remain relatively constant over the years due to the cash level agreement between OIGIS and the Department of Finance.

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The Capital Budget for 2014-15 is $0.026 million.


Following the government’s net cash arrangements, whereby depreciation expenses are no longer funded, it is expected that the equity position will continue to decrease across the forward years by the amount of the budgeted depreciation expense for the year. This decline is offset by capital budget appropriations.

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2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000

EXPENSESEmployee benefits 1,953 1,905 1,938 1,941 1,997Suppliers 343 376 322 325 284Depreciation and amortisation 13 13 13 13 39Total expenses 2,309 2,294 2,273 2,279 2,320LESS: OWN-SOURCE INCOMEOwn-source revenueTotal own-source revenue - - - - -GainsOther 118 118 118 127 127Total gains 118 118 118 127 127Total own-source income 118 118 118 127 127Net cost of (contribution by)

services 2,191 2,176 2,155 2,152 2,193Revenue from Government 2,178 2,163 2,142 2,139 2,154* * * *Surplus (Deficit) attributable to

the Australian Government (13) (13) (13) (13) (39)Total comprehensive income (loss)

attributable to the Australian Government (13) (13) (13) (13) (39)



(loss) excluding depreciation/amortisationexpenses previously funded throughrevenue appropriations. - - - - -

less depreciation/amortisation expensespreviously funded through revenueappropriations1 13 13 13 13 39



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Cash and cash equivalents 202 202 202 202 202 Trade and other receivables 6 7 7 7 7 Appropriations Receivable 1,897 1,830 1,830 1,856 1,856 Other financial assets 3 3 3 3 3


Property, plant and equipment 78 157 169 181 167 Total non-financial assets 78 157 169 181 167

Assets held for saleTotal assets 2,186 2,199 2,211 2,249 2,235 LIABILITIESPayables

Suppliers 5 5 5 5 5 Total payables 5 5 5 5 5

ProvisionsEmployee provisions 774 774 774 800 800

Total provisions 774 774 774 800 800 Total liabilities 779 779 779 805 805 Net assets 1,407 1,420 1,432 1,444 1,430 EQUITY*Parent entity interest

Contributed equity 463 489 514 539 564 Reserves 7 7 7 7 7 Retained surplus

(accumulated deficit) 937 924 911 898 859 Total Equity 1,407 1,420 1,432 1,444 1,430 Prepared on Australian Accounting Standards basis.*'Equity' is the residual interest in assets after deduction of liabilities.

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reserve capital$'000 $'000 $'000 $'000


previous period 937 7 463 1,407Adjusted opening balance 937 7 463 1,407Comprehensive income

Surplus (deficit) for the period (13) - - (13)

Total comprehensive income (13) - - (13)Transactions with owners

Contributions by ownersDepartmental Capital Budget (DCBs) - - 26 26

Sub-total transactions with owners - - 26 26

Estimated closing balanceas at 30 June 2015 924 7 489 1,420

Closing balance attributable to the Australian Government 924 7 489 1,420


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2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000


Appropriations 2,338 2,339 2,262 2,242 2,154Other 395 - - - -


Employees 2,009 1,932 1,938 1,941 2,084Suppliers 330 407 324 301 70Section 31 receipts transferred to OPA 395 - - - -


operating activities (1) - - - -INVESTING ACTIVITIESCash used

Purchase of property, plant and equipment 3 92 25 25 25

Total cash used 3 92 25 25 25Net cash from (used by)

investing activities (3) (92) (25) (25) (25)FINANCING ACTIVITIESCash received

Contributed equity 3 92 25 25 25Total cash received 3 92 25 25 25Net cash from (used by)

financing activities 3 92 25 25 25Net increase (decrease)

in cash held (1) - - - -Cash and cash equivalents at the

beginning of the reporting period 203 202 202 202 202Cash and cash equivalents at the



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Capital budget - Bill 1 (DCB) 69 26 25 25 25Total new capital appropriations 69 26 25 25 25



ASSETSFunded by capital appropriation - DCB1 3 92 25 25 25

TOTAL 3 92 25 25 25


Total purchases 3 92 25 25 25Total cash used to acquire assets 3 92 25 25 25

Prepared on Australian Accounting Standards basis.DCB = Departmental Capital Budget.1Includes purchases from current and previous years' DCB.

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Other property, Totalplant and

equipment$'000 $'000

As at 1 July 2014Gross book value 175 175Accumulated depreciation/amortisation

and impairment (97) (97)Opening net book balance 78 78CAPITAL ASSET ADDITIONSEstimated expenditure on


annual services1 92 92Total additions 92 92

Other movementsDepreciation/amortisation expense (13) (13)Total other movements (13) (13)As at 30 June 2015Gross book value 267 267Accumulated depreciation/amortisation

and impairment (110) (110)Closing net book balance 157 157Prepared on Australian Accounting Standards basis.1'Appropriation ordinary annual services' refers to funding provided through Appropriation Bill (No.1) 2014-15 for depreciation / amortisation expenses, DCBs or other operational expenses.

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Office of National Assessments


OFFICE OF NATIONAL ASSESSMENTS




247

ONA Budget Statements

OFFICE OF NATIONAL ASSESSMENTS



The planned outcome of the Office of National Assessments (ONA) is the advancement of Australia’s national interests through increased government awareness of international developments affecting Australia.

ONA is an all-source assessment agency that reports directly to the Prime Minister. ONA provides assessments on international developments, including political, strategic and economic developments, to the Prime Minister, senior ministers and senior officials. ONA is also responsible for advancement of Australia’s national interest through the effective coordination and evaluation of Australia’s foreign intelligence activities.

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Table 1.1: ONA Resource Statement — Budget Estimates for 2014-15 as at Budget May 2014



2014-15 2014-15 2014-15 2013-14$'000 $'000 $'000 $'000


Departmental appropriationPrior year departmental appropriation2 15,771 - 15,771 15,252 Departmental appropriation3 - 32,548 32,548 33,040 Total 15,771 32,548 48,319 48,292

Total ordinary annual services A 15,771 32,548 48,319 48,292 Other servicesTotal other services B - - - -








3Includes an amount of $3.739m in 2014-15 for the Departmental Capital Budget (refer to table 3.2.5 for further details). For accounting purposes this amount has been designated as 'contributions by owners'.

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1.3 BUDGET MEASURES

Budget measures in Part 1 relating to ONA are detailed in Budget Paper No. 2 and are summarised below.

Table 1.2: ONA 2014-15 Budget MeasuresPart 1: Measures Announced Since the 2014-15 MYEFO

Programme 2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000

Expense measuresEfficiency Dividend — a further temporaryincrease of 0.25 per cent All

Departmental expenses - (74) (143) (222) (224) Total - (74) (143) (222) (224) Total expense measures

Departmental - (74) (143) (222) (224) Total - (74) (143) (222) (224) Capital measuresEfficiency Dividend — a further temporaryincrease of 0.25 per cent All

Departmental capital - (10) (19) (29) (29) Total - (10) (19) (29) (29) Total capital measures

Departmental - (10) (19) (29) (29) Total - (10) (19) (29) (29)


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ONA's outcome is described below together with its related programmes, specifying the performance indicators and targets used to assess and monitor the performance of ONA in achieving Government outcomes.

Outcome 1: Advancement of Australia's national interests through increased government awareness of international developments affecting Australia.

Outcome 1 StrategyThe key strategies by which ONA will seek to achieve its outcome are:

to maintain a strong customer focus by:

o staying in close contact with its customers, ensuring that ONA and the intelligence collection agencies are aware of the international issues of concern to them

o providing quality and timely coverage of subjects of political, strategic and economic significance to Australia

o seeking and using customer feedback to assess the effectiveness of its work and improve the service that ONA provides.

to encourage the highest standards of intelligence analysis and assessment by:

o employing the best staff available, and assisting them to fulfil their potential through on-the-job training, travel and participation in staff development schemes

o promoting objectivity, creativity and analytical rigour

o facilitating access by staff to the broadest possible range of information and ideas through provision of highly capable information retrieval and storage systems.

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to keep Australia’s international intelligence activities under continuous review by:

o leading and supporting processes and committees to coordinate the foreign and broader national security intelligence activities of Australian intelligence agencies

o monitoring their performance and resourcing in relation to the government’s priorities

o where appropriate, recommending measures to improve the effectiveness of Australia’s foreign intelligence effort.

to provide a supportive and stimulating work environment, ONA will:

o cultivate and recognise excellence in analytical and support areas by all means, including the use of the government’s workplace reforms

o encourage teamwork and close communication between management and staff at all levels

o ensure prudent but imaginative use of its financial resources

o promote the application of equal employment opportunity, industrial democracy, access and equity, and work health and safety principles.

ONA depends on regular feedback about its work programme from stakeholders (the Prime Minister, Ministers and departments) and has developed a variety of mechanisms that help evaluate its effectiveness in achieving planned outcomes and the quality of its outputs. These are:

close liaison with the Prime Minister’s office and with other Ministers and their departments

annual review of ONA’s performance by the Department of the Prime Minister and Cabinet

regular internal review of ONA’s analytical and resource management objectives and performance

evaluation of ONA’s statutory independence by the Inspector-General of Intelligence and Security.

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Table 2.1: Budgeted Expenses for Outcome 1Outcome 1: Advancement of Australia's national interests 2013-14 2014-15through increased government awareness of international Estimated Estimateddevelopments affecting Australia. actual expenses

expenses$'000 $'000

Program 1.1: Assessment and reportsDepartmental expenses

Departmental appropriation1 20,665 20,166 Expenses not requiring appropriation in the Budget year2 2,866 2,906

Total for Program 1.1 23,531 23,072 Program 1.2: Coordination and evaluationDepartmental expenses

Departmental appropriation1 8,856 8,643


Total for Program 1.2 10,084 9,889 Outcome 1 Totals by appropriation typeDepartmental expenses

Departmental appropriation1 29,521 28,809


Total expenses for Outcome 1 33,615 32,961

2013-14 2014-15Average Staffing Level (number) 135 130 Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of the Budget year as government priorities change.1Departmental appropriation combines ‘Ordinary annual services (Appropriation Bill No. 1)’ and ‘Revenue from independent sources (s31)’.

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

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Program 1.1: Assessments and Reports

Programme ObjectiveProvide accurate and timely assessments and reports to the Prime Minister, senior ministers and officials.

Programme ExpensesThe expenses for Programme 1.1 are listed in the following table.



Annual departmental expenses:Assessment and reports 20,665 20,166 19,557 20,111 20,371


Total departmental expenses 23,531 23,072 22,690 23,622 24,207 1Expenses not requiring appropriation in the Budget year is made up of depreciation expense, amortisation expense, audit fees and other gains.

Programme DeliverablesThe programme deliverable includes accurate and timely assessments and reports to the Prime Minister, senior ministers and officials that:

warn of threats and adverse developments and opportunities affecting Australia’s national interests

inform government policy making.

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Programme Key Performance Indicators

satisfaction of the Prime Minister and other key ministers as to the level of analysis and assessment provided to Government

ONA depends on regular feedback on its work programme from clients (the Prime Minister, ministers and departments) and has developed a variety of mechanisms that help evaluate its effectiveness in achieving planned outcomes and the quality of its outputs. These are:

o close liaison with the Prime Minister’s office and with other ministers and their departments

o annual review of ONA’s performance by the Department of the Prime Minister and Cabinet

o regular internal review of ONA’s analytical and resource management objectives and performance

o evaluation of ONA’s statutory independence by the Inspector-General of Intelligence and Security.

The measureable targets are:

satisfaction of the Prime Minister with the timeliness, accuracy and content of reports

positive judgement of the ONA product as judged by clients in terms of uniqueness, timeliness and responsiveness, relevance and accuracy.

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Programme 1.2: Coordination and Evaluation

Programme ObjectiveThe objective of this programme is to:

advance Australia’s national interest through the effective coordination and evaluation of Australia’s foreign intelligence activities.

Programme ExpensesThe expenses for Programme 1.2 are listed in the following table.



Annual departmental expenses:Coordination and evaluation 8,856 8,643 8,382 8,619 8,730


Total departmental expenses 10,084 9,889 9,725 10,124 10,374 1Expenses not requiring appropriation in the Budget year is made up of depreciation expense, amortisation expense, audit fees and other gains.

Programme DeliverablesThe programme deliverables include:

improved intelligence capability and performance through the effectivecoordination and evaluation of Australia’s foreign intelligence activities

provide advice on the adequacy of resources for foreign intelligence activities

effective intelligence relationships with close allies and partners.

Programme Key Performance Indicators ONA’s intelligence coordination mechanisms are credible and effective and

deliver well-coordinated foreign intelligence support to Government

ONA’s evaluation processes are complete and credible and inform Government.

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3.1.1 Movement of Administered Funds Between YearsONA does not have any movement of administered funds between years.

3.1.2 Special AccountsONA does not have any special accounts.

3.1.3 Australian Government Indigenous ExpenditureONA does not have any Indigenous specific expenses.

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3.2.1 Differences in Agency Resourcing and Financial StatementsThe agency resource statement (Table 1.1) provides a consolidated view of all the resources available to the agency in 2014-15. This includes equity injections and appropriation receivable that is yet to be drawn down to cover payables and provisions on the Balance Sheet. The Comprehensive Income Statement (Table 3.2.1) shows only the operating appropriation provided in 2014-15.

3.2.2 Analysis of Budgeted Financial StatementsIncome Statement

ONA is budgeting for a break-even operating result, adjusted for depreciation and amortisation expense, in 2014-15 and the forward years.

Considerable efforts have been made to reduce supplier costs across the Budget and forward years. However, a balanced budget can only be achieved through further reductions in operating and employee related costs over the Budget and forward years.

The retained and committed surpluses from previous years will be used to continue the implementation of business critical measures.

Balance Sheet

Cash balances are maintained within a working capital limit of $0.7m as agreed with the Department of Finance.

Appropriation balances carried forward are to cover employee provisions. Development and major upgrades of ONA internally developed software will take place over the Budget and forward years.

The increase in supplier payables reflects the rent payable liability increasing over the Budget and forward years due to the requirement for lease payments under an operating lease to be recognised as an expense on a straight-line basis over the lease term.

The employee provisions balance is expected to reduce due the reduction of staff numbers.

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The cash flow is consistent with, and representative of, the transactions reported in the income statement, adjusted for non-cash items and anticipated capital purchases.

ONA's working cash balance is $0.7m in accordance with ONA's agreement with the Department of Finance.


The departmental capital budget statement shows the expected capital works programme for the current and forward years, including the purchase of new assets as well as replacement of exiting assets.

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3.2.3 Budgeted Financial Statements TablesTable 3.2.1 Comprehensive Income Statement (Showing Net Cost of Services) (for the period ended 30 June)


2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000

EXPENSESEmployee benefits 19,486 19,949 19,149 19,178 19,137 Supplier expenses 10,155 8,890 8,820 9,582 9,994 Depreciation and amortisation 3,974 4,122 4,446 4,985 5,450 Total expenses 33,615 32,961 32,415 33,745 34,581 LESS: OWN-SOURCE INCOMEGainsOther 120 30 30 30 30 Total gains 120 30 30 30 30 Total own-source income 120 30 30 30 30 Net cost of (contribution by)

services 33,495 32,931 32,385 33,715 34,551 Revenue from Government 29,521 28,809 27,939 28,730 29,101 * * * *Surplus (Deficit) attributable to

the Australian Government (3,974) (4,122) (4,446) (4,985) (5,450) Total comprehensive income (loss)

attributable to the Australian Government (3,974) (4,122) (4,446) (4,985) (5,450)



(loss) excluding depreciation/amortisationexpenses previously funded throughrevenue approprations - - - - -

less depreciation/amortisation expensespreviously funded through revenueappropriations1 3,974 4,122 4,446 4,985 5,450

Total Comprehensive Income (loss) - as per the Statement ofComprehensive Income (3,974) (4,122) (4,446) (4,985) (5,450)


1From 2010-11, the Government introduced net cash appropriation arrangements where Bill 1 revenue appropriations for the depreciation/amortisation expense of FMA Act agencies were replaced with a separate capital budget (the Department Capital Budget, or DCB) provided through Bill 1 equity appropriations. For information regarding DCBs, please refer to Table 3.2.5 Departmental Capital Budget Statement.

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Cash and cash equivalents 658 658 658 658 658 Trade and other receivables 15,906 16,192 13,594 9,227 4,024


Non-financial assetsLand and buildings 19,638 18,659 17,626 16,534 15,377 Property, plant and equipment 3,160 3,117 3,824 5,031 6,738 Intangibles 2,435 2,878 5,151 8,144 11,069 Other 670 670 670 670 670


LIABILITIESPayables

Suppliers 1,300 1,847 2,294 2,639 2,877 Other 554 554 553 553 553

Total payables 1,854 2,401 2,847 3,192 3,430


Total provisions 5,285 4,828 4,480 4,163 3,890

Total liabilities 7,139 7,229 7,327 7,355 7,320


Contributed equity 35,128 38,867 42,564 46,262 50,019 Reserves 617 617 617 617 617 Retained surplus

(accumulated deficit) (417) (4,539) (8,985) (13,970) (19,420) Total parent entity interest 35,328 34,945 34,196 32,909 31,216

Total Equity 35,328 34,945 34,196 32,909 31,216 Prepared on Australian Accounting Standards basis.*'Equity' is the residual interest in assets after deduction of liabilities.

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reserve capital$'000 $'000 $'000 $'000


previous period (417) 617 35,128 35,328 Adjusted opening balance (417) 617 35,128 35,328 Comprehensive income

Surplus (deficit) for the period (4,122) - - (4,122)

Total comprehensive income (4,122) - - (4,122) of which:

Attributable to the Australian Government (4,122) - - (4,122) Transactions with owners

Contributions by ownersDepartmental Capital Budget (DCBs) - - 3,739 3,739

Sub-total transactions with owners - - 3,739 3,739 Estimated closing balance

as at 30 June 2015 (4,539) 617 38,867 34,945 Closing balance attributable to the

Australian Government (4,539) 617 38,867 34,945 Prepared on Australian Accounting Standards basis.

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2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000


Appropriations 29,429 28,719 27,939 33,097 34,304 Net GST received 1,287 1,445 1,608 1,768 916

Total cash received 30,716 30,164 29,547 34,865 35,220 Cash used

Employees 19,191 19,746 18,938 19,037 19,059 Suppliers 11,525 10,418 10,511 11,433 10,993


operating activities - - 98 4,395 5,168 INVESTING ACTIVITIESCash used

Buildings 100 650 650 650 650 Purchase of property, plant

and equipment 1,250 1,500 2,250 2,750 3,250 Intangibles 1,742 1,393 3,493 4,693 5,025


investing activities (3,092) (3,543) (6,393) (8,093) (8,925) FINANCING ACTIVITIESCash received

Contributed equity 3,092 3,543 6,295 3,698 3,757 Total cash received 3,092 3,543 6,295 3,698 3,757 Net cash from (used by)

financing activities 3,092 3,543 6,295 3,698 3,757 Net increase (decrease)

in cash held - - - - - Cash and cash equivalents at the


end of the reporting period 658 658 658 658 658 Prepared on Australian Accounting Standards basis.

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$'000 $'000 $'000 $'000 $'000CAPITAL APPROPRIATIONS

Capital budget - Bill 1 (DCB) 3,519 3,739 3,697 3,698 3,757 Total capital appropriations 3,519 3,739 3,697 3,698 3,757 Total new capital appropriationsRepresented by:

Purchase of non-financial assets 3,519 3,739 3,697 3,698 3,757 Total Items 3,519 3,739 3,697 3,698 3,757 PURCHASE OF NON-FINANCIAL

ASSETSFunded by capital appropriation - DCB1 3,092 3,543 6,295 3,698 3,757 Funded internally from

departmental resources2 - - 98 4,395 5,168 TOTAL 3,092 3,543 6,393 8,093 8,925


Total purchases 3,092 3,543 6,393 8,093 8,925 Total cash used to

acquire assets 3,092 3,543 6,393 8,093 8,925

Prepared on Australian Accounting Standards basis.DCB = Departmental Capital Budget.1Does not include annual finance lease costs. Includes purchase from current and previous year’s Departmental Capital Budgets.2Includes the following sources of funding:

- current Bill and prior year Act 1/3/5 appropriations (excluding amounts from the DCB).

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Buildings Other property, Intangibles Totalplant and

equipment$'000 $'000 $'000 $'000

As at 1 July 2014Gross book value 23,905 10,299 7,961 42,165 Accumulated depreciation/amortisation

and impairment (4,267) (7,139) (5,526) (16,932)

Opening net book balance 19,638 3,160 2,435 25,233 CAPITAL ASSET ADDITIONSEstimated expenditure on


annual services1 650 1,500 1,393 3,543 Total additions 650 1,500 1,393 3,543

Other movementsDepreciation/amortisation expense (1,629) (1,543) (950) (4,122) As at 30 June 2015Gross book value 24,555 11,799 9,354 45,708 Accumulated depreciation/amortisation

and impairment (5,896) (8,682) (6,476) (21,054) Closing net book balance 18,659 3,117 2,878 24,654 Prepared on Australian Accounting Standards basis.1‘Appropriation ordinary annual services’ refers to funding provided through Appropriation Bill (No.1) 2014-15 for the DCB.

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Office of the Official Secretary to the Governor-General


OFFICE OF THE OFFICIAL SECRETARY TO THE GOVERNOR-GENERAL




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OOSGG Budget Statements

OFFICE OF THE OFFICIAL SECRETARY TO THE GOVERNOR-GENERAL



The planned outcome for the Office of the Official Secretary to the Governor-General (OOSGG) is the facilitation of the performance of the Governor-General’s role through the organisation and management of official duties, management and maintenance of the official household and property, and administration of the Australian Honours and Awards system.

The OOSGG delivers its planned outcome through one programme, being ‘Support for the Governor-General and Official Functions’.

The OOSGG’s role is to support the Governor-General to enable him to perform official duties, including support in connection with official functions, the management and maintenance of Government House in Canberra and Admiralty House in Sydney, and the effective administration of the Australian Honours and Awards system.

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Table 1.1: OOSGG Agency Resource Statement — Budget Estimates for 2014-15 as at Budget May 2014



2014-15 2014-15 2014-15 2013-14$'000 $'000 $'000 $'000


Departmental appropriationPrior year departmental appropriation2 1,986 - 1,986 3,895 Departmental appropriation3 - 11,777 11,777 11,545 s31 Relevant agency receipts4 - - - 14 Total 1,986 11,777 13,763 15,454

Administered expensesOutcome 1 - 1,574 1,574 2,071 Total - 1,574 1,574 2,071


Other services6

Departmental non-operatingEquity injections 1,739 - 1,739 4,307 Total 1,739 - 1,739 4,307

Total other services B 1,739 - 1,739 4,307



by amountGovernor-General Act 1974 - 425 425 425

Total special appropriations C - 425 425 425





1Appropriation Bill (No.1) 2014-15.2Estimated adjusted balance carried forward from previous year.

3Includes an amount of $0.4 million in 2014-15 for the Departmental Capital Budget (refer to table 3.2.5 for further details). For accounting purposes this amount has been designated as 'contributions by owners'.

4s31 Relevant Agency receipts - estimate.

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1.3 BUDGET MEASURES

Budget measures in Part 1 relating to OOSGG are detailed in Budget Paper No. 2 and are summarised below.

Table 1.2: OOSGG 2014-15 Budget MeasuresPart 1: Measures Announced Since the 2013-14 MYEFO

Programme 2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000

Measures Efficency Dividend — a further temporary increase of 0.25 per cent 1.1


Total measuresDepartmental - (142) (313) (486) (86)

Total - (142) (313) (486) (86)

Prepared on a Government Financial Statistics (fiscal) basis.

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Government outcomes are the intended results, impacts or consequences of actions by the Government on the Australian community. Commonwealth programmes are the primary vehicle by which government agencies achieve the intended results of their outcome statements. Agencies are required to identify the programmes which contribute to Government outcomes over the Budget and forward years.

Each outcome is described below together with its related programmes, specifying the performance indicators and targets used to assess and monitor the performance of the OOSGG in achieving Government outcomes.

Outcome 1: The performance of the Governor-General’s role is facilitated through the organisation and management of official duties, management and maintenance of the official household and property and administration of the Australian Honours and Awards system.

Outcome 1 StrategyThe OOSGG will seek to achieve its outcome by:

providing a high standard of advice and service delivery to the Governor-General and stakeholders

delivering effective governance and management arrangements in support of the official duties of the Governor-General

ensuring efficient and effective stewardship of the properties in accordance with heritage requirements and approved capital works and maintenance programmes

educating and informing Australians about the role of the Governor-General

delivering efficient and effective administration of the Australian Honours and Awards system.

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Table 2.1 provides an overview of the total expenses for Outcome 1, by its programme.

Table 2.1: Budgeted Expenses for Outcome 1Outcome 1: The performance of the Governor-General’s role is 2013-14 2014-15facilitated through the organisation and management of official Estimated Estimatedduties, management and maintenance of the official household actual expensesand property and administration of the Australian Honours and expensesAwards system. $'000 $'000

Programme 1.1: Support the Governor-GeneralAdministered expenses

Ordinary annual services (Appropriation Bill No. 1) 1,491 1,574 Special appropriations 425 425




Outcome 1 Totals by appropriation typeAdministered Expenses

Ordinary annual services (Appropriation Bill No. 1) 1,491 1,574 Special appropriations 425 425




Average Staffing Level (number) 82 80 1Departmental Appropriation combines ‘Ordinary annual services (Appropriation Bill No. 1)’ and ‘Revenue from independent sources (s31)’.2Expenses not requiring appropriation in the Budget year is made up of depreciation expense, amortisation expense, makegood expense & audit fees.

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Programme 1.1: Support for the Governor-General and Official Functions

Programme 1.1 ObjectivesThe programme comprises two components:

support of the Governor-General

administration of the Australian Honours and Awards system.


to provide a high level of advice and administrative support to the Governor-General in support of official duties

to effectively and efficiently manage and maintain the Governor-General’s official residences in Canberra and Sydney, including capital improvements, building and grounds maintenance, and caretaker responsibilities

to administer, on behalf of the Governor-General, the Australian Honours and Awards system, including all civilian honours, and awards for members of the Australian Defence Force

to undertake research and prepare nominations for consideration by the Council for the Order of Australia, the Australian Bravery Decorations Council and the National Emergency Medal Committee

to provide efficient and effective secretariat support to the Australian honours advisory bodies

to undertake the efficient procurement of Australian honours medals/insignia, warrants and investiture items.

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Programme Expenses2013-14 2014-15 2015-16 2016-17 2017-18


Annual administered expenses:Administered item 1,491 1,574 1,686 1,640 1,632

Special Appropriations:Governor-General Act 1974 425 425 425 425 425

Annual departmental expenses:Programme support 11,178 11,377 11,277 11,263 11,384

Programme supportExpenses not requiring appropriation in

the Budget year1 444 417 420 414 445Total Programme expenses 13,538 13,793 13,808 13,742 13,886

1Expenses not requiring appropriation in the Budget year is made up of depreciation expense, amortisation expense, makegood expense and audit fees.

Programme Components2013-14 2014-15 2015-16 2016-17 2017-18


1.1.1 - Component 1: Support of the Governor-General

Annual administered expenses:Depreciation & Amortisation 644 710 796 747 728

Special appropriations:Governor-General Act 1974 425 425 425 425 425


Total component expenses 7,217 7,512 7,542 7,484 7,5331.1.2 - Component 2: Administration of the Australian Honours and Awards system

Annual administered expenses:Supplier Expenses 847 864 890 893 904


Total component expenses 5,877 5,864 5,846 5,844 5,908Expenses not requiring Appropriation inthe Budget year 444 417 420 414 445Total Programme expenses 13,538 13,793 13,808 13,742 13,886

1Expenses not requiring appropriation in the Budget year is made up of depreciation expense, amortisation expense, makegood expense and audit fees.

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Programme 1 DeliverablesThe deliverables for the primary components of this programme are listed below.

Component 1: Support of the Governor-General executive support—includes providing advice to the Governor-General,

planning, implementing and managing Their Excellencies’ forward programme of engagements, and liaising with representatives of governments, related authorities, and community groups

personal support—includes providing support for Their Excellencies and hospitality services for official functions

administrative services—includes providing governance advice and administrative services to OOSGG and managing the Governor-General’s official residences, including maintenance of property, equipment and grounds.

Component 2: Administration of the Australian Honours and Awards System management of the honours and awards system

providing secretariat support for the Council for the Order of Australia, the Australian Bravery Decorations Council and the National Emergency Medal Committee

undertaking research and preparation of nominations for consideration by the Australian honours advisory bodies

contributing to the Australian Government’s promotional activities to increase awareness of the Australian honours system.

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Programme 1.1 Key Performance IndicatorsComponent 1: Support of the Governor-General the Governor-General is satisfied with the level of advice and administrative

support provided that enables him to successfully perform official duties

the Governor-General is satisfied with the management of the households

the properties are managed in accordance with the requirements of the Environment Protection and Biodiversity Conservation Act 1999 and government policies relating to heritage properties, and with due consideration of advice provided by the National Capital Authority and other relevant authorities.

Component 2: Administration of the Australian Honours and Awards System the Order of Australia, the Australian Bravery Decorations and the National

Emergency Medal advisory bodies are satisfied with the quality of research and administrative support provided

the Order of Australia, the Australian Bravery Decorations and the National Emergency Medal advisory bodies are satisfied with processing times for nominations presented by the Australian Honours and Awards Secretariat

the Governor-General and other key stakeholders are satisfied with the timeliness of processing, gazettal and issue of awards by the Australian Honours and Awards Secretariat

annual statistics are published on the number of nominations/applications received and timeliness of submissions to relevant advisory bodies

activities comply with the regulations for honours and awards, including the Constitution for the Order of Australia

medals and insignia meet design specifications.

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3.1.1 Movement of Administered Funds Between YearsThe OOSGG does not have any movement of administered funds between years.

3.1.2 Special AccountsThe OOSGG does not have any special accounts.

3.1.3 Australian Government Indigenous ExpenditureThe OOSGG does not have any Indigenous-specific expenses.

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3.2.1 Differences in Agency Resourcing and Financial StatementsThe agency resourcing statement (Table 1.1) provides a consolidated view of all the resources available to the agency in 2014-15. This includes equity injections and appropriations receivable that are yet to be drawn down to cover payables and provisions on the Balance Sheet. The Income Statement (Table 3.1.1) shows only the operating appropriation provided in 2014-15.


Departmental

Income Statement

The OOSGG is budgeting for a break-even operating result, adjusted for depreciation and amortisation expense, in 2014-15 and the forward years.

In line with net cash appropriation arrangements that became effective from 2010-11, revenue from government has been reduced by an amount equal to depreciation and amortisation expense. Future asset replacements are funded through the departmental capital budget detailed in Table 3.2.5.

The Comprehensive Income Statement sets out the expected operating results for the ordinary annual services provided by the OOSGG, which are funded by departmental appropriations and other revenue.

Balance Sheet

The movement in the OOSGG’s net asset position is principally as a result of the procurement of replacement infrastructure, plant and equipment assets owned by the OOSGG. The value of buildings in the balance sheet represents the value of work in progress of assets being developed under the Vice-Regal Heritage Property Master Plan.

The OOSGG’s primary liability is accrued employee entitlements.

Administered

Income and expenses administered on behalf of government

The OOSGG will receive administered appropriations of $2.0 million in 2014-15 for the Governor-General’s salary, for support of the Australian Honours and Awards system and for administered depreciation.

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Assets and liabilities administered on behalf of the government

The value of land and buildings are expected to increase in 2014-15 and the forward years due to the completion of projects developed under the Vice-Regal Heritage Property Master Plan.

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2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000

EXPENSESEmployee benefits 8,299 8,489 8,485 8,485 8,505 Suppliers 2,966 2,949 2,853 2,839 2,940 Depreciation and amortisation 385 356 359 353 384 Total expenses 11,650 11,794 11,697 11,677 11,829 LESS: OWN-SOURCE INCOMEOwn-source revenueRental income 14 - - - - Total own-source revenue 14 - - - - GainsSale of assets 12 - - - - Other 61 61 61 61 61 Total gains 73 61 61 61 61 Total own-source income 87 61 61 61 61 Net cost of (contribution by)

services 11,563 11,733 11,636 11,616 11,768

Revenue from Government 11,178 11,377 11,277 11,263 11,384 * * * *Surplus (Deficit) attributable to

the Australian Government (385) (356) (359) (353) (384)

Total comprehensive income (loss) (385) (356) (359) (353) (384)

Total comprehensive income (loss) attributable to the Australian Government (385) (356) (359) (353) (384)

Note: Impact of Net Cash Apppropriation Arrangements2013-14 2014-15 2015-16 2016-17 2017-18


(loss) less depreciation/amortisationexpenses previously funded throughrevenue appropriations. - - - - -

plus depreciation/amortisation expensespreviously funded through revenueappropriations1 385 356 359 353 384



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Cash and cash equivalents 146 146 146 146 146 Trade and other receivables 4,377 2,247 1,997 2,036 2,065


Land and buildings 1,670 - - - - Property, plant and equipment 1,145 1,181 1,206 1,242 1,253 Intangibles 334 343 359 369 378 Other non-financial assets 24 14 34 24 24


LIABILITIESPayables



Total provisions 2,239 2,331 2,101 2,130 2,159 Total liabilities 2,677 2,776 2,546 2,575 2,604 Net assets 5,019 1,155 1,196 1,242 1,262 EQUITY*

Contributed equity 3,945 437 837 1,236 1,640 Reserves 239 239 239 239 239 Retained surplus (accumulated deficit) 835 479 120 (233) (617)

Total Equity 5,019 1,155 1,196 1,242 1,262


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reserve capital$'000 $'000 $'000 $'000

Opening balance as at 1 July 2014Balance carried forward from previous period 835 239 3,945 5,019

Adjusted opening balance 835 239 3,945 5,019

Comprehensive incomeSurplus (deficit) for the period (356) - - (356)

Total comprehensive income (356) - - (356) of which:

Attributable to the Australian Government (356) - - (356)

Transactions with ownersDistributions to owners

Restructuring - - (3,908) (3,908) Contributions by owners

Departmental Capital Budget (DCBs) - - 400 400 Sub-total transactions with owners - - (3,508) (3,508)

Estimated closing balanceas at 30 June 2015 479 239 437 1,155

Closing balance attributable to the Australian Government 479 239 437 1,155


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2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000


Appropriations 12,442 11,768 11,532 11,220 11,355Sale of goods and rendering of services 14 - - - -Net GST received 306 263 314 329 375


Employees 8,321 8,397 8,715 8,456 8,476Suppliers 2,885 2,881 2,792 2,778 2,879Net GST paid 306 253 339 315 375


operating activities 1,250 500 - - -INVESTING ACTIVITIESCash received

Proceeds from sales of property,plant and equipment 89 - - - -

Total cash received 89 - - - -Cash used

Purchase of property, plant and equipment 4,252 2,584 341 344 294

Other 126 55 56 55 110Total cash used 4,378 2,639 397 399 404Net cash from (used by)

investing activities (4,289) (2,639) (397) (399) (404)FINANCING ACTIVITIESCash received

Contributed equity 3,039 2,139 397 399 404Total cash received 3,039 2,139 397 399 404

Net cash from (used by) financing activities 3,039 2,139 397 399 404

Net increase (decrease)in cash held - - - - -Cash and cash equivalents at the

beginning of the reporting period 146 146 146 146 146Cash and cash equivalents at the



286





Capital budget - Bill 1 (DCB) 367 400 397 399 404 Total new capital appropriations 367 400 397 399 404


Total Items 367 400 397 399 404 PURCHASE OF NON-FINANCIAL

ASSETSFunded by capital appropriations1 2,568 1,739 - - - Funded by capital appropriation - DCB2 471 400 397 399 404 Funded internally from

departmental resources3 1,339 500 - - - TOTAL 4,378 2,639 397 399 404


Total purchases 4,378 2,639 397 399 404 Total cash used to acquire assets 4,378 2,639 397 399 404

Prepared on Australian Accounting Standards basis.1Includes both current and prior Bill 2/4/6 appropriations and special capital appropriations.2Does not include annual finance lease costs. Include purchase from current and previous years' Departmental Capital Budgets (DCBs).3Includes the following sources of funding:

- current and prior year Bill 1/3/5 appropriations (excluding amounts from the DCB)- donations and contributions- gifts- internally developed assets- s31 relevant agency receipts- proceeds from the sale of assets.

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As at 1 July 2014Gross book value 1,670 2,043 926 4,639Accumulated depreciation/amortisation

and impairment - (898) (592) (1,490)Opening net book balance 1,670 1,145 334 3,149CAPITAL ASSET ADDITIONSEstimated expenditure on

new or replacement assetsBy purchase - appropriation equity1 2,239 - - 2,239By purchase - appropriation ordinary

annual services2 - 345 55 400Total additions 2,239 345 55 2,639

Other movementsDepreciation/amortisation expense - (310) (46) (356)Disposals3

From disposal of entities or operations(including restructuring) (3,909) - - (3,909)

Total other movements (3,909) (310) (46) (4,265)As at 30 June 2015Gross book value - 2,388 981 3,369Accumulated depreciation/amortisation

and impairment - (1,208) (638) (1,846)Closing net book balance - 1,180 343 1,523

Prepared on Australian Accounting Standards basis.1'Appropriation equity' refers to equity injections or Administered Assets and Liabilities appropriations provided through Appropriation Bill (No.2) 2014-15, including CDABs.2'Appropriation ordinary annual services' refers to funding provided through Appropriation Bill (No.1) 2014-15 for depreciation / amortisation expenses, DCBs or other operational expenses.3Net proceeds may be returned to the OPA.

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2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000

EXPENSES ADMINISTERED ONBEHALF OF GOVERNMENTSuppliers 847 864 890 893 904 Personal benefits 425 425 425 425 425 Depreciation and amortisation 644 710 796 747 728

Total expenses administeredon behalf of Government 1,916 1,999 2,111 2,065 2,057

LESS:OWN-SOURCE INCOMEOwn-source revenueNon-taxation revenue

Sale of goods and rendering of services 27 27 27 27 27

Total non-taxation revenue 27 27 27 27 27 Total own-source revenues

administered on behalf of Government 27 27 27 27 27

Net Cost of (contribution by)services (1,889) (1,972) (2,084) (2,038) (2,030)

Surplus (Deficit) (1,889) (1,972) (2,084) (2,038) (2,030) Total comprehensive income (loss) (1,889) (1,972) (2,084) (2,038) (2,030) Prepared on Australian Accounting Standards basis.

289




2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000


Cash and cash equivalents 1 1 1 1 1 Trade and other receivables 8 8 8 8 8

Total financial assets 9 9 9 9 9

Non-financial assetsLand and buildings 86,969 90,231 89,497 88,809 88,138 Property, plant and equipment 1,821 1,757 1,615 1,556 1,499 Inventories 1,260 909 586 469 376

Total non-financial assets 90,050 92,897 91,698 90,834 90,013 Total assets administered

on behalf of Government 90,059 92,906 91,707 90,843 90,022

LIABILITIESPayables


Total liabilities administeredon behalf of Government 2 2 2 2 2

Net assets/(liabilities) 90,057 92,904 91,705 90,841 90,020 Prepared on Australian Accounting Standards basis.

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2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000


Sales of goods and rendering of services 27 27 27 27 27

Total cash received 27 27 27 27 27Cash used

Personal benefits 425 425 425 425 425Suppliers 931 950 980 986 1,004


operating activities (1,329) (1,348) (1,378) (1,384) (1,402)Net increase (decrease) in

cash held (1,329) (1,348) (1,378) (1,384) (1,402)Cash and cash equivalents at

beginning of reporting period 1 1 1 1 1Cash from Official Public Account for:

- Appropriations 1,356 1,375 1,405 1,411 1,429Total cash from OPA 1,356 1,375 1,405 1,411 1,429

Cash to Official Public Account for:- Appropriations (27) (27) (27) (27) (27)

Total cash to OPA (27) (27) (27) (27) (27)Cash and cash equivalents at end

of reporting period 1 1 1 1 1Prepared on Australian Accounting Standards basis.

291


Table 3.2.10: Schedule of Administered Capital Budget StatementEstimated Budget Forward Forward Forward


$'000 $'000 $'000 $'000 $'000

PURCHASE OF NON-FINANCIALASSETSFunded internally from

departmental resources1 2,578 3,908 - - -TOTAL AMOUNT SPENT 2,578 3,908 - - -


Total accrual purchases 2,578 3,908 - - -less s32 / restructuring 2,578 3,908 - - -

Total cash used to acquire assets - - - - -

Prepared on Australian Accounting Standards basis.1Includes the following sources of funding:

- current and prior year Bill 1/3/5 appropriations (excluding amounts from the ACB)- donations and contributions- gifts- internally developed assets- proceeds from the sale of assets.

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Table 3.2.11: Statement of Administered Asset Movements (2014-15) Asset Category

Land Buildings Other property, Totalplant and

equipment$'000 $'000 $'000 $'000


and impairment - (3,143) (314) (3,457)Opening net book balance 63,000 23,969 1,821 88,790

CAPITAL ASSET ADDITIONSEstimated expenditure on

new or replacement assetsFrom operations (including restructuring) - 3,908 - 3,908

Total additions - 3,908 - 3,908

Other movementsDepreciation/amortisation expense (646) (64) (710)

Total other movements - (646) (64) (710)As at 30 June 2015Gross book value 63,000 31,020 2,135 96,155Accumulated depreciation/amortisation

and impairment - (3,789) (378) (4,167)Closing net book balance 63,000 27,231 1,757 91,988Prepared on Australian Accounting Standards basis.

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TORRES STRAITREGIONAL AUTHORITY


TORRES STRAIT REGIONAL AUTHORITY

Section 1: Agency Overview and Resources.........................................................2971.1 Strategic Direction..............................................................................................2971.2 Agency Resource Statement..............................................................................2991.3 Budget Measures...............................................................................................300



297

TORRES STRAIT REGIONAL AUTHORITY



The planned outcome of the Torres Strait Regional Authority (TSRA) is:

Progress towards closing the gap for Torres Strait Islander and Aboriginal people living in the Torres Strait Region through development planning, coordination, sustainable resource management, and preservation and promotion of Indigenous culture.

The TSRA is a Commonwealth statutory authority which was established in 1994 under the Aboriginal and Torres Strait Islander Commission Act 1989, now known as the Aboriginal and Torres Strait Islander Act 2005 (ATSI Act). It is the peak Commonwealth representative body for Torres Strait Islander and Aboriginal people living in the Torres Strait.

The TSRA also performs separate functions under the Native Title Act 1993 as the Native Title Representative Body for the Torres Strait Region.

The TSRA is required under s 142D of the ATSI Act to formulate and implement a plan to guide the progress of the Torres Strait region. This plan, known as the Torres Strait Development Plan, is updated every four years to be consistent with the term of the TSRA Board.

In 2013–14 the TSRA finalised the Torres Strait Development Plan 2014–18, the fifth development plan since the establishment of the TSRA. The plan outlines eight new or revised TSRA programme components (Economic Development; Fisheries; Culture, Art and Heritage; Native Title; Environmental Management; Governance and Leadership; Healthy Communities and Safe Communities) each of which has a number of desired outcomes and associated benefits. Programme efficiencies are being derived from the funding allocation.

The Development Plan and its programme components have been informed and driven by the Torres Strait and Northern Peninsula Area Regional Plan 2009–29 and the goals and aspirations of the residents of the Torres Strait. The new TSRA vision, which is shared by both the Regional Plan and the Development Plan, is:

‘Empowering our people, in our decision, in our culture, for our future’

‘Ngalpun yangu kaaba woeydhay, a ngalpun muruygaw danalagan mabaygal kunakan palayk, bathayngaka’ (KALA LAGAU YA)

‘Buaigiz kelar obaiswerare, merbi mir apuge mena obakedi, muige merbi areribi tonarge, ko merbi keub kerkerem’ (MERIAM MIR)

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‘Ngalpan moebaygal thoepoeriwoeyamoeyn, ngalpan ya kuduthoeraynu, ngalpan igililmaypa, sepa setha wara goeygil sey boey wagel’ (KALA KAWAU YA).

The Development Plan has also been designed to align with the COAG Building Blocks and to contribute to the Indigenous-specific outcomes of the national partnership agreements as outlined in the National Indigenous Reform Agreement.

A key area of externally focused activity for the TSRA in 2014–15 will be continuing to drive the regional planning processes, including improving the integration of service delivery between governments at all levels working in the region. The TSRA will also dedicate considerable time to engaging with local stakeholders, informing them of the new Development Plan and associated changes, and supporting their adaptation to the new environment.

The Torres Strait Ranger Project will continue over the coming year. This dedicated ranger project will play a central role in the TSRA’s Environmental Management Programme component, as it will be used to deliver a variety of land and sea management activities identified in the Land and Sea Management Strategy, the Regional Investment Strategy for the Torres Strait, and the Marine Turtle and Dugong Management Plan for each of the participating communities.

The TSRA will continue improve the region’s ability to adapt to climate change, particularly sea level rise. Implementation of the Torres Strait Climate Change Strategy will identify and implement appropriate adaptation strategies and actions that will help to reduce climate change risks and build regional and community resilience. In parallel we will monitor the changes around us and continue to build our understanding to inform a flexible and adaptive approach to responding to future uncertainties.

The TSRA will work closely with primary health care stakeholders to enhance the efficacy and effectiveness of National Health Reforms in 2014–15. Through its Healthy Communities Programme, the TSRA will also monitor and provide strategic policy advice regarding health service delivery in the region and administer grant funding to regional projects that address social determinants that positively impact on health outcomes.

The Major Infrastructure Programme (MIP), begun in 1998 as a bilateral commitment with the Queensland Government to deliver essential and sustainable environmental health infrastructure in the Torres Strait region, has also been extended into MIP Stage 5. Key deliverables include water supply and reticulation; sanitation and wastewater; community roads and drainage; serviced housing lots; and asset sustainability. In 2014-15, and in addition to MIP Stage 5, the Australian Government and Queensland Government have committed to deliver coastal management infrastructure to protect existing community infrastructure from rising seawater.

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TSRA Budget Statements



Table 1.1: TSRA Resource Statement – Budget Estimates for 2014–15 as at Budget May 2014



2014-15 2014-15 2014-15 2013-14Source $'000 $'000 $'000 $'000

Opening balance/Reserves at bank 6,711 - 6,711 -


Outcome 1 - 48,159 48,159 49,645

Total ordinary annual services 6,711 48,159 54,870 49,645 Total funds from Government 6,711 48,159 54,870 49,645 FUNDS FROM OTHER SOURCES

Interest - 1,462 1,462 1,312 Sale of goods and services - 240 240 240 Other - 13,247 13,247 12,411 Total - 14,949 14,949 13,963

Total net resourcing for agency 6,711 63,108 69,819 63,608 All figures are GST exclusive.TSRA is not directly appropriated as it is a CAC Act Body. Appropriations are made to FMA Agency PM&C which are then paid to TSRA and are considered ‘departmental’ for all purposes.1Appropriation Bill (No.1) 2014-15.

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1.3 BUDGET MEASURES

Budget measures relating to TSRA are detailed in MYEFO and are summarised below.

Table 1.2: TSRA 2014–15 Budget MeasuresMYEFO Measures Not Previously Reported in a Portfolio Statement

Programme 2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000

Expense measuresEfficiency Dividend — a further temporaryincrease of 0.25 per cent 1.1

Departmental expenses - (95) (189) (284) - Total - (95) (189) (284) - Indigenous Affairs Programmes —

rationalisation1 1.1Departmental expenses - (1,177) (904) (802) (613)

Total - (1,177) (904) (802) (613) Total expense measures

Departmental - (1,272) (1,093) (1,086) (613) Total - (1,272) (1,093) (1,086) (613)

Prepared on a Government Finance Statistics (fiscal) basis.1Funding for the TSRA’s Grants Programme will reduce by 4.5 per cent from 2014-15. This reduction is broadly in line with the savings to be achieved as part of the Indigenous Programme Consolidation. The TSRA measure would save $1.2 million in 2014-15, reducing over the forward estimates in line with budgeted grant expenditure. Total savings over the four years from 1 July 2014 is $3.5 million.

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Government outcomes are the intended results, impacts or consequences of actions by Government on the Australian community. Commonwealth programmes are the primary vehicle by which government agencies achieve the intended results of their outcome statements. Agencies are required to identify the programmes which contribute to government outcomes over the Budget and forward years.

Each outcome is described below together with its related programmes, specifying the performance indicators and targets used to assess and monitor the performance of the Torres Strait Regional Authority in achieving government outcomes.

Outcome 1: Progress towards Closing the Gap for Torres Strait Islander and Aboriginal people living in the Torres Strait Region through development planning, coordination, sustainable resource management, and preservation and promotion of Indigenous culture.

Outcome 1 StrategyThe TSRA is focused on the delivery of outcomes and realisation of measurable benefits. The programme components contribute to the achievement of the goals of the Torres Strait and Northern Peninsula Area Regional Plan 2009–2029 and to closing the gap in Indigenous disadvantage.

The TSRA has completed a new Development Plan 2014-18. The new Development Plan will be effective 1 July 2014.

The Development Plan is an action plan with a focus on delivering outcomes and benefits for Torres Strait Islander and Aboriginal people of the Torres Strait region. This and subsequent development plans will contribute to achieving the outcome statement for the TSRA.

The Development Plan contains both short and long-term objectives, some of which will not be achieved fully within the four-year life of the Plan. The phasing of objectives reflects the Australian Government’s long-term goals of generational change and impact.

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The Programme 1 objective is currently delivered through eight component programmes, which are derived from the Torres Strait Development Plan 2014–2018. These are:

Economic Development

Fisheries

Culture, Art and Heritage

Native Title

Environmental Management

Governance and Leadership

Healthy Communities

Safe Communities.


Table 2.1: Budgeted Expenses for Outcome 1

Outcome 1: Progress towards Closing the Gap for Torres 2013-14 2014-15Strait Islander and Aboriginal people living in the Torres Estimated EstimatedStrait Region through development planning, actual expensescoordination, sustainable resource management, and expensespreservation and promotion of Indigenous culture. $'000 $'000

Programme 1.1: Torres Strait Regional DevelopmentRevenue from Government

Ordinary annual services (Appropriation Bill No. 1) 49,645 48,159 Revenues from other independent sources 13,963 14,949


Outcome 1 Totals by resource typeRevenue from Government

Ordinary annual services (Appropriation Bill No. 1) 49,645 48,159 Revenues from other independent sources 13,963 14,949

Total expenses for Outcome 1 63,608 63,108

2013-14 2014-15Average Staffing Level (number) 137 146

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Programme 1.1: Torres Strait Regional Development


In November 2008, the Torres Strait Regional Authority Board endorsed the following Outcome statement: ‘Progress towards closing the gap for Torres Strait Islander and Aboriginal people living in the Torres Strait Region through development planning, coordination, sustainable resource management, and preservation and promotion of Indigenous culture’.

Programme Component Objectives

Economic DevelopmentThe TSRA’s Economic Development Programme will contribute to regional, community and individual economic improvement by taking the lead as whole of region economic development solution broker.

The programme aims are to:

stimulate economic development across the region

advance business skills and align training initiatives with regional employment opportunities

advance Torres Strait Islander and Aboriginal ownership and management of businesses in the region.

FisheriesThe aim of the Fisheries Programme is to increase wealth in the region through commercially viable businesses and employment in the fishing industry, while ensuring the ecologically sustainable management of fishery resources.


provide greater access for Torres Strait Islander and Aboriginal people to the region’s commercial fisheries towards attaining a 100% share

increase commercially viable businesses in the fishing industry that are Torres Strait Islander and Aboriginal owned and/or operated

deliver initiatives to increase capability and capacity of Torres Strait Islander and Aboriginal people to utilise the region’s commercial fisheries resources

ensure that the region’s fisheries resources are sustainably managed

ensure that Torres Strait Islander and Aboriginal people are engaged in the management of the region’s fisheries resources.

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Programme Component Objectives (continued)Culture, Art and HeritageThe TSRA recognises that Culture, Art and Heritage are central pillars of regional development, and will protect, promote, revitalise and maintain Torres Strait Islander and Aboriginal traditions and cultural heritage.


protect culturally significant sites and artefacts to ensure longevity

revitalise and maintain traditional cultural practices (art, dance, language, storytelling and songs) among communities

ensure the protection of traditional knowledge, intellectual property and copyright

underpin services and management practices with cultural values and protocols.

Native Title ProgrammeTo provide high-quality and culturally appropriate professional services to Native Title Holders and claimants through consultation with and effectively representing Traditional Owners in the Torres Strait region in the performance of our functions under the Native Title Act 1993(Cth).

The Native Title programme will continue to facilitate the securing of legal recognition of Native Title to land and waters in the Torres Strait, and the proper regard for Native Title rights in relation to all projects affecting Torres Strait land and waters.


assist Traditional Owners obtain legal recognition of Native Title over land and sea in the Torres Strait region

manage and legally protect Native Title rights

build the capacity of Native Title Prescribed Bodies Corporate (PBC’s).

Environmental ManagementThe TSRA recognises that it has a vital role to play, through its Land and Sea Management unit, to help address and manage the many environmental issues, challenges and opportunities facing the region and individual communities.


contribute to supporting the regional goal to protect and preserve the region’s natural and cultural environmental assets through sustainable management practices.

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Programme Component Objectives (continued)Governance and LeadershipThe Governance and Leadership Programme will support positive and meaningful outcomes for people in leadership, communication and governance. The programme will work towards achieving equality in leadership, as appropriate to Ailan Kastom, by delivering targeted activities for woman and youth.


involve Torres Strait Islander and Aboriginal leaders in legislative processes, policies and priorities

undertake capacity building for current and future leaders across the region

support effective regional communication

coordinate the integration of the delivery of government services to the region

develop the capacity of PBC’s in the region

improve the governance and leadership capacity of the Torres Strait Regional Authority.

Healthy CommunitiesThe TSRA’s Healthy Communities Programme will monitor and provide strategic policy advice to the Torres Strait Health Partnership and Integrated Service delivery partners to ensure that advances are being made in primary and preventative health care. The TSRA will play a more direct role through the provision of funding and support to preventative health initiatives that will improve a healthy lifestyle and will link with the Environmental Management Programme to support local fresh food production. Additionally, the TSRA will be directly involved in making housing more affordable for Indigenous people in the region.


seek to influence policy for all health programmes across all tiers of government

monitor health services and health initiatives across the Torres Strait and Northern Peninsular and provide strategic policy advice (via Integrated Service Delivery arrangements)

direct support targeting healthy lifestyles, including improving availability of fresh produce and healthy food options and encouraging people to undertake healthy activities

provide some direct support for home ownership and other specific housing initiatives when linked to economic development, including small enterprise and trade skills development and or environmental management in terms of water management and renewable energies

engage with Traditional Owners regarding negotiations for land release for housing development, where appropriate.

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Programme Component Objectives (continued)

Safe Communities

The Safe Communities Programme recognises that if people are not safe in their homes and communities it is difficult to implement economic development, healthy lifestyles, environmental management and other initiatives. The Safe Communities Programme will influence policy and monitor service delivery by other agencies. The TSRA will undertake a leading and supporting role through Integrated Service Delivery forums, contributing to the development and monitoring of standards for the provision of social services in the region. The programme will also contribute directly to some public and community safety and community accessibility outcomes through funding and support for targeted initiatives.

The programme aims to:

contribute to the development of standards for the provision of all mainstream social services and facilities, including emergency response services, through engagement with responsible agencies

undertaking a policy advocacy, monitoring and supporting role with respect to mainstream services, advocating and acting as a solution broker on behalf of communities and the region, using Integrated Service Delivery forums

provide direct funding and resource support for some social support services, infrastructure, facilities and equipment that contribute to improved safety and accessibility for communities and families (the TSRA will not provide mainstream social or community services).


The budgeted expenditure set out in the tables of this report includes all the costs associated with the programme deliverables listed in this report.



Programme support 63,608 63,108 55,584 51,823 48,406 Total programme expenses 63,608 63,108 55,584 51,823 48,406

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Programme 1.1 DeliverablesThe TSRA’s Development Plan 2014-2018 focuses on service delivery to the Torres Strait Islands and the Northern Peninsular Area. The outcomes, benefits and targets in the Development Plan are delivered through the TSRA’s annual Corporate Plans, and achievements reported in the TSRA’s annual reports to parliament.

The TSRA’s Development Plan 2014-2018 is also aligned with the Torres Strait Northern Peninsula Area Regional Plan 2009-2029 (Regional Plan).

The TSRA will deliver eight programmes that contribute to the regional goals expressed in the Torres Strait and Northern Peninsula Area Regional Plan to achieve the targets for which the TSRA has a regional policy or service delivery role, outlined in the National Indigenous Reform Agenda.

The programme outcomes are all congruent with TSRA’s outcome statement. Performance indicators have been identified to show whether progress is being made in achieving outcomes and benefits. The benefits are measurable and meaningful improvements that result from outcomes. Deliverables for each programme component as at the publication date of these Portfolio Budget Statements are:

Economic Development increased capability of Torres Strait Islander and Aboriginal People in the region

to manage commercially viable businesses

improved access to capital and other opportunities to finance commercially viable businesses

increased number of commercially viable businesses owned and or operated by Torres Strait and Aboriginal People in the region

improved wealth of Torres Strait Islander and Aboriginal People in the region.

Fisheries a commercially viable fishing industry which is 100 per cent owned by Torres

Strait Islander and Aboriginal people

improved wealth of Torres Strait Islander and Aboriginal people of the region

sustainable management of fisheries resources.

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Culture, Art and Heritage an active and sustainable arts and craft industry in the region

cultural values and protocols are integrated into service planning and management practice

the unique cultural heritage and histories of the region are preserved, maintained and promoted

strong, supported and respected Ailan Kastom

the copyright, intellectual property and traditional knowledge of Torres Strait Islander and Aboriginal people in the region are protected.

Native Title

successfully negotiated Future Acts and Indigenous Land Use Agreements

Native Title Claims are successfully determined

PBC’s understand and meet their responsibilities under the Native Title Act

changes to the Native Title and Fisheries legislation which recognise the commercial rights as part of Native Title rights of Traditional Owners under the Torres Strait Sea Claim Part A determination.

Environmental Management

strengthened sustainable use, protection and management of natural and cultural resources

improved community adaptation to climate change impacts, including sea level rise

increased uptake of renewable energy for the Torres Strait

support community sustainable horticulture.

Governance and Leadership

implementation of the National Indigenous Reform Agreement service delivery principles

appropriate Torres Strait Islander and Aboriginal participation in decision-making

improved communication, cultural competence and service delivery within a community development framework across governments

strong Torres Strait Islander and Aboriginal organisational leadership and governance

strong PBC leadership and governance.

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Healthy Communities secure Whole-of-Government investment for infrastructure to support healthy

homes and healthy living environments

policies support community managed delivery of primary and public health care services and are based on regional needs and priorities

improved access to affordable fresh and healthy foods

more active and healthy communities

affordable home ownership available across the region.

Safe Communities effective community and social services support

families and individuals are safe in home and community

public areas are safe and accessible for community members

communities have access to appropriate transport infrastructure.

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The Development Plan articulates all the TSRA’s performance measures; the purpose of this table is to list only key performance indicators:

increase in the number of Torres Strait Islander and Aboriginal owned commercially viable businesses

increased availability of approved business training

increases in catches by Torres Strait and Aboriginal fishes relative to total allowable catch, strengthening claims for increased ownership

increase in the number of emerging and professionally active artists and cultural practitioners that have access to information and support to ensure copyright and intellectual property rights

number of Native Title determinations claims successfully determined

number of Indigenous Land Use Agreements (ILUA) that have compensation or other benefits as part of ILUA terms

number of endorsed community based management plans for the natural and cultural resources of the region being actively implemented

increase the level of engagement of elected Torres Strait Islander and Aboriginal leaders in policy development and decision-making

number of PBCs that achieve Office of the Registrar of Indigenous Corporations (ORIC) compliance as at 31 December each year

increased investment into new and existing regional environmental health infrastructure.

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3.1.1 Movement of Administered Funds Between YearsTSRA does not have any administered funds.

3.1.2 Special AccountsThe TSRA does not have any special accounts.



No. 1 approp$'000 $'000 $'000 $'000

Torres Strait Regional AuthorityOutcome 1Departmental 2014-15 49,336 49,336 14,949 64,285 1.1Departmental 2013-14 49,645 49,645 13,963 63,608 1.1Total outcome 2014-15 49,336 49,336 14,949 64,285 Total outcome 2013-14 49,645 49,645 13,963 63,608

Total departmental 2014-15 49,336 49,336 14,949 64,285 Total departmental 2013-14 49,645 49,645 13,963 63,608

Total AGIE 2014-15 49,336 49,336 14,949 64,285 Total AGIE 2013-14 49,645 49,645 13,963 63,608

Appropriations

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3.2.1 Differences in Agency Resourcing and Financial StatementsThere are no differences between TSRA’s Portfolio Budget Statements and the Commonwealth’s Budget Management System.


Departmental

Budgeted Comprehensive Income Statement

This statement provides a picture of the expected financial results for the TSRA by identifying full accrual expenses and revenues, which highlights whether the TSRA is operating at a sustainable level. TSRA is forecasting income of $63.1 million and expenditure of $63.1 million resulting in a breakeven result for the 2014–15 fiscal year.

Budgeted Departmental Balance Sheet

This statement shows the financial position of the TSRA. It helps decision-makers to track the management of assets, liabilities and equity. TSRA’s forecast Balance Sheet for the fiscal year ending June 2015 shows TSRA with total assets of $80.1 million and liabilities of $10.6 million, resulting in a net asset position of $69.6 million.

Budgeted Departmental Statement of Cash Flows

The budgeted cash flows, as reflected in the statement of cash flows, provide important information on the extent and nature of cash flows by categorising them into expected cash flows from operating activities, investing activities and financing activities.

Predicted departmental cash flows have been adjusted to reflect the anticipated impact on cash after taking into account the forecast movements in the Balance Sheet and Comprehensive Income Statement. The agency is forecasting a favourable cash position of $4.6 million for the fiscal year ending June 2015. The favourable cash position is due to the timing across fiscal years between receipt of income and programme expenditure commitments.

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3.2.3 Budgeted Financial Statements TablesTable 3.2.1: Comprehensive Income Statement (Showing Net Cost of Services) (for the period ended 30 June)


2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000

EXPENSESEmployee benefits 15,095 15,545 16,008 16,486 16,978 Suppliers 21,247 21,524 19,360 17,299 17,404 Grants 26,366 24,989 19,175 17,013 12,999 Depreciation and amortisation 900 900 891 875 875 Finance costs - 150 150 150 150 Total expenses 63,608 63,108 55,584 51,823 48,406 LESS: OWN-SOURCE INCOMEOwn-source revenueSale of goods and rendering of services 240 240 240 240 240 Interest 1,312 1,462 1,462 1,462 1,462 Other 12,411 13,247 9,730 9,889 10,052 Total own-source revenue 13,963 14,949 11,432 11,591 11,754 Total own-source income 13,963 14,949 11,432 11,591 11,754 Net cost of services 49,645 48,159 44,152 40,232 36,652 Revenue from Government 49,645 48,159 44,152 40,232 36,652

Surplus attributable to the Australian Government - - - - -

Total comprehensive income attributable to the Australian Government - - - - -


315





Cash and cash equivalents 6,711 4,611 152 277 302 Trade and other receivables 8,055 8,055 8,055 8,055 8,055 Other investments 29,800 22,200 18,200 17,200 16,200


Non-financial assetsLand and buildings 33,776 43,326 51,783 52,652 53,621 Property, plant and equipment 1,745 1,895 1,897 1,903 1,909 Heritage and Cultural 60 60 60 60 60


Suppliers 1,314 1,314 1,314 1,314 1,314 Grants 1,828 1,828 1,828 1,828 1,828 Other payables 4,177 4,177 4,177 4,177 4,177

Total payables 7,319 7,319 7,319 7,319 7,319


Total provisions 3,253 3,253 3,253 3,253 3,253 Total liabilities 10,572 10,572 10,572 10,572 10,572


Contributed equity 32 32 32 32 32 Reserves 13,678 13,678 13,678 13,678 13,678 Retained surplus 55,865 55,865 55,865 55,865 55,865

Total parent entity interest 69,575 69,575 69,575 69,575 69,575 Total Equity 69,575 69,575 69,575 69,575 69,575

Prepared on Australian Accounting Standards basis.*’Equity’ is the residual interest in assets after deduction of liabilities.

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Table 3.2.3: Departmental Statement of Changes in Equity – Summary of Movement (Budget Year 2014–15)


reserve capital$'000 $'000 $'000 $'000


previous period 55,865 13,678 32 69,575 Adjusted opening balance 55,865 13,678 32 69,575 Comprehensive income

Surplus (deficit) for the period - - - -

Total comprehensive income - - - - Estimated closing balance

as at 30 June 2015 55,865 13,678 32 69,575 Closing balance attributable to the

Australian Government 55,865 13,678 32 69,575 Prepared on Australian Accounting Standards basis.

317




2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000


Appropriations 49,645 48,159 44,152 40,232 36,652 Sale of goods and rendering of services 240 240 240 240 240 Interest 1,312 1,312 1,312 1,312 1,312 Other 12,411 13,247 9,730 9,889 10,052


Employees 15,095 15,545 16,008 16,486 16,978 Suppliers 21,247 21,524 19,360 17,299 17,404 Other 26,366 25,139 19,325 17,163 13,149

Total cash used 62,708 62,208 54,693 50,948 47,531 Net cash from

operating activities 900 750 741 725 725 INVESTING ACTIVITIESCash received

Investments 7,000 7,600 4,000 1,000 1,000 Other - 600 600 600 600


Purchase of property, plant and equipment 2,665 10,600 9,350 1,750 1,850

Other - Loans - 450 450 450 450 Total cash used 2,665 11,050 9,800 2,200 2,300 Net cash from (used by)

investing activities 4,335 (2,850) (5,200) (600) (700) Net increase (decrease)

in cash held 5,235 (2,100) (4,459) 125 25 Cash and cash equivalents at the

beginning of the reporting period 1,476 6,711 4,611 152 277 Cash and cash equivalents at the

end of the reporting period 6,711 4,611 152 277 302


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$'000 $'000 $'000 $'000 $'000

PURCHASE OF NON-FINANCIALASSETSFunded internally from

departmental resources1 2,665 10,600 9,350 1,750 1,850 TOTAL 2,665 10,600 9,350 1,750 1,850 RECONCILIATION OF CASH


Total purchases 2,665 10,600 9,350 1,750 1,850 Total cash used to acquire assets 2,665 10,600 9,350 1,750 1,850 Prepared on Australian Accounting Standards basis.1Includes the following sources of funding:

- current and prior year Bill 1/3/5 appropriations (excluding amounts from the DCB).

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Land Buildings Other property, Heritage Totalplant and and cultural

equipment$'000 $'000 $'000 $'000 $'000

As at 1 July 2014Gross book value 9,360 28,362 4,116 60 41,898 Accumulated depreciation/amortisation

and impairment - (3,946) (2,371) - (6,317) Opening net book balance 9,360 24,416 1,745 60 35,581 CAPITAL ASSET ADDITIONSEstimated expenditure on

new or replacement assetsBy purchase - internally funded - 10,200 400 - 10,600 Total additions - 10,200 400 - 10,600 Other movementsDepreciation/amortisation expense - (650) (250) - (900) Total other movements - (650) (250) - (900) As at 30 June 2015Gross book value 9,360 38,562 4,516 60 52,498 Accumulated depreciation/amortisation

and impairment - (4,596) (2,621) - (7,217) Closing net book balance 9,360 33,966 1,895 60 45,281


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Basis of Accounting

The budgeted financial statements have been prepared in accordance with the requirements of the Finance Minister’s Orders issued by the Minister for Finance. Amounts in these statements are rounded to the nearest thousand dollars.

Departmental Financial Statements and Schedule to Administered Activity

Under the Australian Government’s financial budget and reporting framework, transactions that agencies control (departmental transactions) are separately budgeted for and reported on from transactions agencies do not have control over (administered transactions). This ensures that agencies are only held fully accountable for the transactions over which they have control.

Departmental items are those assets, liabilities, revenues and expenses in relation to an agency or authority that are controlled by the agency. Departmental expenses include employee and supplier expenses and other administrative costs, which are incurred by the agency in providing its goods and services.

TSRA has no administered items.

Revenue from Government – Ordinary Annual Appropriations

Revenue from government represents amounts appropriated to fund the TSRA’s eight programme components, actioned in order to deliver the agency’s stated outcome.

Expenses – Depreciation

Property, plant and equipment assets are written-off to their estimated residual values over their estimated useful lives, using in all cases the straight-line method of depreciation.

Asset Valuation

All assets are initially recorded at cost. Property, plant and equipment and other infrastructure assets are periodically revalued at their fair value.

Financial Assets – Cash

This includes notes and coins held and deposits at call.

Financial Assets – Receivables

This includes loans and advances made by the TSRA to clients in the delivery of its programmes, in addition to amounts owing to the TSRA for delivery of goods and services. Loans receivable are measured at amortised cost using the effective interest method less impairment.

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Glossary

PORTFOLIO GLOSSARY

Term Meaning

Accumulated depreciation

The aggregate depreciation recorded for a particular depreciating asset.

Actual available appropriation

The actual available appropriation indicates the total appropriations available to the agency for 2013-14 as at the 2014-15 Budget. It includes all appropriations made available to the agency in the year (+/- Section 32 transfers, formal reductions, advance to the Finance Minister and movements of funds). It is the same as the comparator figure included in the Appropriation Bills and, as such, provides a comparison with the appropriation proposed for the Budget year.

Administered item Appropriation that consists of funding managed on behalf of the Commonwealth. This funding is not at the discretion of the agency and any unspent appropriation is returned to the Consolidated Revenue Fund (CRF) at the end of the financial year. An administered item is a component of an administered programme. It may be a measure but will not constitute a programme in its own right.

Agency Generic term for Australian Government General Government Sector entities, including those governed by the FMA Act or CAC Act and the High Court of Australia.

Appropriation An amount of public money parliament authorises for spending (i.e. funds to be withdrawn from the CRF). Parliament makes laws for appropriating money under the Annual Appropriation Acts and under Special Appropriations, with spending restricted to the purposes in the Appropriation Acts.

Appropriation Bill (No. 1)

This Bill proposes spending from the CRF for the ordinary annual services of government. Bills proposing appropriations for ordinary annual services cannot be amended by the Senate under Section 53 of the Australian Constitution. Once the Bill is passed by Parliament and given Royal Assent, it becomes Appropriation Act (No. 1).

323

Glossary

Term Meaning

Appropriation Bill (No. 2)

This Bill proposes spending from the CRF for purposes other than the ordinary annual services of government. Under existing arrangements between the two Houses of Parliament, this Bill includes appropriation funding of administered expenses for new outcomes, for payments to the states and territories, and for departmental or administered capital. Funding for extensions to existing programmes can be included in Appropriation Bill (No. 1). Once the Bill is passed by Parliament and given Royal Assent, it becomes Appropriation Act (No. 2).

Appropriation Bills (Nos. 3 and 4)

If an amount provided in Appropriation Acts (Nos. 1 or 2) is not enough to meet approved expenditure in a financial year, supplementary appropriation may be sought in Appropriation Bills (Nos. 3 or 4). Once these Bills are passed by Parliament and given royal assent, they become the Appropriation Acts (Nos. 3 and 4). They are also commonly referred to as the Additional Estimates Bills.

Assets Future economic benefits controlled by an entity as a result of past transactions or other past events.

Average staffing level The average number of employees receiving salary/wages (or compensation in lieu of salary/wages) over a financial year, with adjustments for casual and part-time employees to show the full-time equivalent.

Budget Paper 1 (BP1) Budget Strategy and Outlook. Provides information and analysis on Whole-of-Government expenditure and revenue.

Budget Paper 2 (BP2) Budget Measures. Provides a description of each budget measure by portfolio.

Budget Paper 3 (BP3) Australia’s Federal Relations. Provides information and analysis on federal funding provided to the states and territories.

Budget Paper 4 (BP4) Agency Resourcing. Details total resourcing available to agencies.

Capital Expenditure Expenditure by an agency on capital projects; for example, purchasing a building.

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Glossary

Term Meaning

Consolidated Revenue Fund (CRF)

The principal operating fund from which money is drawn to pay for the activities of the Government. Section 81 of the Australian Constitution provides that all revenue raised or monies received by the Executive Government forms one consolidated revenue fund from which appropriations are made for the purposes of the Australian Government.

Departmental Capital Budget (DCB)

Net cash appropriation arrangements involve the cessation of funding for depreciation, amortisation and make good expenses. Funding for these expenses has been replaced with a collection development and acquisition budget (CDAB) for designated collection institutions (DCIs), and departmental capital budgets (DCBs) for FMA agencies.

Departmental item Resources (assets, liabilities, revenues and expenses) that agency chief executive officers control directly. This includes outsourced activities funded and controlled by the agency. Examples of departmental items include agency running costs, accrued employee entitlements and net appropriations. A departmental item is a component of a departmental programme.

Depreciation Apportionment of an asset’s capital value as an expense over its estimated useful life to take account of normal usage, obsolescence, or the passage of time.

Equity or net assets Residual interest in the assets of an entity after deduction of its liabilities.

Equity A department or agency under the Financial Management and Accountability Act 1997 (FMA Act), a company or authority under the Commonwealth Authorities and Companies Act 1997 (CAC Act) or any other Commonwealth statutory authority.

Estimated actual expenses

Details of the current year’s estimated final figures as included in the Budget documentation. As the Budget is released in May each year, but the financial year does not close off until 30 June, the current year numbers that are used for comparison with Budget amounts can only be estimates.

Expenditure Spending money from the Consolidated Revenue Fund or a notional payment to an FMA agency.

325

Glossary

Term Meaning

Expense Decreases in economic benefits in the form of outflows or depletions of assets or incurrence of liabilities that result in decreases in equity, other than those relating to distributions to equity participants.

Expenses not requiring appropriation in the Budget year

Expenses not involving a cash flow impact are not included within the calculation of an appropriation. An example of such an event is goods or services received free of charge that are then expensed; for example, ANAO audit services. The ANAO does not charge for audit services; however, the expense must be recognised. Similarly, bad debts are recognised as an expense but are not recognised for the purpose of calculating appropriation amounts to be sought from Parliament.

Financial Management and Accountability Act 1997 (FMA Act)

The FMA Act sets out the financial management, accountability and audit obligations of agencies (including departments) that are financially part of the Commonwealth (and form part of the General Government Sector).

Forward estimates period

The three years following the Budget year. For example if 2014-15 is the Budget year, 2015-16 is forward year 1, 2016-17 is forward year 2 and 2017-18 is forward year 3. This period does not include the current or Budget year.

Funds Money that has been appropriated but not drawn from the Consolidated Revenue Fund.

Income Total value of resources earned or received to cover the production of goods and services.

Make good Make good is the cost of dismantling and removing an item and restoring the site on which it is located, the obligation for which an entity incurs either when the item is acquired or as a consequence of having used the item during a particular period for purposes other than to produce inventories during that period. A common example of make good in the public sector is the restoration of office premises at the end of a lease period.

326

Glossary

Term Meaning

Measure A new policy or savings decision of the government with financial impacts on the government’s underlying cash balance, fiscal balance, operating balance, headline cash balance, net debt or net worth. Such proposals are normally made in the context of the annual Budget, and are typically published in Budget Paper No. 2, in the Mid-Year Economic and Fiscal Outlook (MYEFO).

Mid-Year Economic and Fiscal Outlook (MYEFO)

The MYEFO provides an update of the government’s budget estimates by examining expenses and revenues in the year to date, as well as provisions for new decisions that have been taken since the Budget. The report provides updated information to allow the assessment of the government’s fiscal performance against the fiscal strategy set out in its current fiscal strategy statement.

‘Movement of Funds’ between years

A ‘movement of funds’ process is carried out twice each year in relation to un-expensed administered operating appropriations. This involves portfolio ministers submitting requests to the Finance Minister advising of timing changes to funding requirements. If agreed by the Finance Minister, there will be an increase in the amount appropriated in later year(s).

Net cash framework The net cash framework, implemented from the 2010-11 Budget, replaces funding for depreciation and amortisation expenses with a departmental capital budget (DCB) and the funding of make good expenses will cease to be paid in advance.

The net cash framework applies to general government sector agencies that receive funding from annual appropriations directly or via a special account, with the exception of CAC Act bodies and the Department of Defence and the Defence Materiel Organisation.

Non-operating Sometimes called ‘capital’ costs.

Official Public Account (OPA)

The OPA is the Australian Government’s central bank account held within the Reserve Bank of Australia. The OPA reflects the operations of the Consolidated Revenue Fund.

327

Glossary

Term Meaning

Operating Normally related to ongoing, or recurring expenses, such as paying salaries or making programme payments.

Operating result Equals income less expenses.

Outcome An outcome is the intended result, consequence or impact of government actions on the Australian community.

Portfolio Budget Statements

Budget related paper detailing budget initiatives and explanations of appropriations specified by outcome and programme by each agency within a portfolio.

Programme Activity that delivers benefits, services or transfer payments to individuals, industry and/or the community as a whole, with the aim of achieving the intended result specified in an outcome statement.

Programme support The agency running costs allocated to a programme. This is funded as part of the agency’s departmental appropriations.

Special account Balances existing within the CRF that are supported by standing appropriations (Financial Management and Accountability Act 1997, s.20 and 21). Special accounts allow money in the CRF to be acknowledged as set-aside (hypothecated) for a particular purpose. Amounts credited to a special account can only be spent for the purposes of the special account. Special accounts can only be established by a written determination of the Finance Minister (s. 20 of the FMA Act) or through an Act of Parliament (referred to in s. 21 of the FMA Act).

Special appropriations (including standing appropriations)

An amount of money appropriated by a particular Act of Parliament for a specific purpose and number of years. For special appropriations, the authority to withdraw funds from the CRF does not generally cease at the end of the financial year.

Standing appropriations are a subcategory consisting of ongoing special appropriations – the amount appropriated will depend on circumstances specified in the legislation.

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Acronyms

FREQUENTLY USED ACRONYMS

ABA Aboriginals Benefit Account

AAO Administrative Arrangements Order

AAS Australian Accounting Standards

ACB Administered Capital Budget

AEIFRS Australian Equivalent to International Financial Reporting Standards

AGD Attorney General’s Department

AGE Australian Government Employee

ANAO Australian National Audit Office

AGIE Australian Government Indigenous Expenditure

AHL Aboriginal Hostels Limited

ALCNT Anindilyakwa Land Council

ALRA Aboriginal Land Rights (Northern Territory) Act 1976

ATSI Act Aboriginal and Torres Strait Islander Act 2005

APS Australian Public Service

APSC Australian Public Service Commission

CAC Act Commonwealth Authorities and Companies Act 1997

CDAB Collection Development and Acquisition Budget

CDB Collection Development Budget

CDEP Community Development Employment Projects

CEO Chief Executive Officer

CLC Central Land Council

COAG Council of Australian Governments

329

Acronyms

CRF Consolidated Revenue Fund

DCB Departmental Capital Budget

DHS Department of Human Services

DSS Department of Social Services

FMA Act Financial Management and Accountability Act 1997

FOI Freedom of Information

G20 Group of 20 Meeting

GFS Government Finance Statistics

IBA Indigenous Business Australia

ILC Indigenous Land Corporation

KPI Key Performance Indicator

MOU Memorandum of Understanding

MYEFO Mid-Year Economic and Fiscal Outlook

NADC National Australia Day Council

NLC Northern Land Council

OBS Outback Stores Pty Ltd

OCO Office of the Commonwealth Ombudsman

OIGIS Office of the Inspector-General of Intelligence and Security

ONA Office of National Assessments

OOSGG Office of the Official Secretary to the Governor-General

OPA Official Public Account

OTM Other Trust Monies

PM&C Department of Prime Minister and Cabinet

330

Acronyms

RJCP Remote Jobs and Communities Programme

S31 Section 31 Retained Agency Receipts Revenue (FMA Act)

SOETM Services for Other Entities and Trust Monies special accounts

SOG Services for Other Government and non-agency bodies accounts

TLC Tiwi Land Council

TSRA Torres Strait Regional Authority

WBACC Wreck Bay Aboriginal Community Council

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