portfolio budget statements 2016-17

Portfolio Budget Statements 2016-17 Budget Related Paper No. 1.14

PRIME MINISTER AND CABINET PORTFOLIO

Budget Initiatives and Explanations of Appropriations Specified by Outcomes

and Programs by Entity

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© Commonwealth of Australia 2016

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www.pm.gov.au

PRIME MINISTER

President of the Senate Australian Senate Parliament House CANBERRA ACT 2600 Speaker House of Representatives Parliament House CANBERRA ACT 2600

Dear Mr President Dear Mr Speaker

I hereby submit Portfolio Budget Statements in support of the 2016-17 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

MALCOLM TURNBULL

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Abbreviations and conventions

The following notation may be used:

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 not zero, but rounded to zero na not applicable (unless otherwise specified) nfp not for publication $m $ million $b $ billion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

Links to Portfolio Budget Statements (including Portfolio Additional Estimates Statements and Portfolio Supplementary Additional Estimates Statements) can be located on the Australian Government Budget website at: www.budget.gov.au.

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USER GUIDE TO THE

PORTFOLIO BUDGET STATEMENTS

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USER GUIDE

The purpose of the 2016-17 Portfolio Budget Statements (PB Statements) is to inform Senators and Members of Parliament of the proposed allocation of resources to government outcomes by entities within the portfolio. Entities receive resources from the annual appropriation 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) 2016-17 (or Appropriation (Parliamentary Departments) Bill (No. 1) 2016-17 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, only entities within the general government sector are included as part of the Commonwealth general government sector fiscal estimates and produce PB Statements where they receive funding (either directly or via portfolio departments) through the annual appropriation acts.

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CONTENTS

Portfolio overview ....................................................................................................... 1

Prime Minister and Cabinet Portfolio Overview ............................................................. 3

Entity resources and planned performance ........................................................... 13

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

Aboriginal Hostels Limited .......................................................................................... 57

Australian National Audit Office .................................................................................. 75

Australian Public Service Commission ...................................................................... 101

Digital Transformation Office .................................................................................... 125

Indigenous Business Australia .................................................................................. 143

Indigenous Land Corporation .................................................................................... 167

Office of National Assessments ................................................................................ 187

Office of the Commonwealth Ombudsman ............................................................... 205

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

Office of the Official Secretary to the Governor-General ........................................... 245

Torres Strait Regional Authority ................................................................................ 271

Glossary and Acronyms ......................................................................................... 291

1

PORTFOLIO OVERVIEW

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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 Assistant Ministers on matters that are at the forefront of public and government administration.

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 program

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

national security, counter terrorism, and cyber policy coordination

ensuring compliance by the Australian Intelligence Community agencies with Australian Law and ministerial directions

coordination and evaluation of Australia’s foreign intelligence activities

impartial and independent investigation of complaints about the Australian Government actions and other statutory oversight and compliance functions

intergovernmental relations and communications with state and territory governments

coordination of government administration

Australian Government employment workplace relations policy

Australian honours and symbols policy

official and ceremonial support

support to the Governor-General to perform his official duties

encouraging high quality regulation and reducing the burden of government regulation

women’s policies and women’s leadership and development strategy

whole of government service delivery policy, focusing on increasing the accessibility and efficiency of digital government service interfaces

public data policy and related matters

national policy on cities

population policy

Portfolio Overview

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The Portfolio comprises eight non-corporate Commonwealth entities, eight corporate Commonwealth entities, and three Commonwealth Companies under the Public Governance, Performance and Accountability Act 2013 (PGPA Act).

The Portfolio includes the following non-corporate Commonwealth entities under the PGPA Act:

Department of the Prime Minister and Cabinet

Australian National Audit Office

Australian Public Service Commission

Digital Transformation Office

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 includes the following corporate Commonwealth entities under the PGPA Act:

Indigenous Business Australia

Indigenous Land Corporation

Northern Territory Land Councils

o Anindilyakwa Land Council

o Central Land Council

o Northern Land Council

o Tiwi Land Council

Torres Strait Regional Authority

Wreck Bay Aboriginal Community Council

The Portfolio includes the following Commonwealth Companies under the PGPA Act:

Aboriginal Hostels Limited

National Australia Day Council Limited

Outback Stores Pty Ltd

Portfolio Overview

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The Department of the Prime Minister and Cabinet (PM&C) is a non-corporate Commonwealth entity and is subject to the PGPA Act. The principal function of PM&C is to provide support to the Prime Minister, the Cabinet, Portfolio Ministers, and Assistant Ministers 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 programs relating to Indigenous affairs, Regulation Reform, cities & built environment and women.

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

The Aboriginal Land Commissioner is an independent statutory office holder under the Aboriginal Land Rights (Northern Territory) Act 1976 (ALR Act) and is subject to the PGPA 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 non-corporate Commonwealth entity established under the Auditor-General Act 1997 and is subject to the PGPA Act. The ANAO assists the Auditor-General in undertaking the performance of functions under the Auditor-General Act 1997.

The Australian Public Service Commission (APSC) is a non-corporate Commonwealth entity with a number of functions under the Public Service Act 1999, is subject to the PGPA Act and has a central leadership role in providing expertise, guidance and performance monitoring on workforce management strategies. The APSC has a key role in supporting frameworks for a modern and flexible workforce, improving workforce management to support an efficient and effective Australian Public Service (APS), supporting high ethical standards and fostering improved capability and leadership.

The Defence Force Remuneration Tribunal is an independent authority established under section 58G of the Defence Act 1903. The Defence Force Remuneration Tribunal determines the pay and allowances of members of the Australian Defence Force, considering the special nature of the Defence Force service.

The Digital Transformation Office (DTO) is a non-corporate Commonwealth entity subject to the PGPA Act, focused on ensuring everyone who needs to use government services finds what they need and gets it done quickly and easily. The DTO will deliver and assist agencies to deliver, simpler, clearer & faster services to all.

Portfolio Overview

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The position of Executive Director of Township Leasing (EDTL) is an independent statutory office that is subject to the PGPA Act and was established under the ALR Act to enter into leases of Aboriginal-held land in the Northern Territory on behalf of the Commonwealth, and to administer sub-leases 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 Independent National Security Legislation Monitor (INSLM) is appointed under the Independent National Security Legislation Monitor Act 2010, amended in December 2014. The INSLM's role is to review the operation, effectiveness and implications of Australia’s counter-terrorism and national security legislation on an ongoing basis. This includes considering whether the laws contain appropriate safeguards for protecting the rights of individuals, remain proportionate to any threat of terrorism or threat to national security or both, and remain necessary.

Indigenous Business Australia (IBA) is a corporate Commonwealth entity established under the Aboriginal and Torres Strait Islander Act 2005 (ATSI Act) and is subject to the PGPA 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 corporate Commonwealth entity established under the ATSI Act and is subject to the PGPA 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 PGPA 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 (ALC), Central Land Council (CLC), Northern Land Council (NLC) and Tiwi Land Council (TLC) are the four Northern Territory Land Councils established under the ALR Act. The Land Councils are subject to the PGPA Act and are corporate Commonwealth entities established to represent Aboriginal interests in a range of processes under the ALR Act.

Portfolio Overview

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The Office of National Assessments (ONA) is a non-corporate Commonwealth entity operating under the Office of National Assessments Act 1977 and is subject to the PGPA 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 a non-corporate Commonwealth entity established under the Ombudsman Act 1976 and is subject to the PGPA Act. 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, and discharging other specialist oversight tasks. The OCO also influences improvement in public administration in the region through collaboration with partner agencies. The Commonwealth Ombudsman is also the Defence Force, Immigration, Law Enforcement, Postal Industry, Overseas Students, Norfolk Island and Private Health Insurance Ombudsman.

The Office of the Inspector-General of Intelligence and Security (OIGIS) is a non-corporate Commonwealth entity under the Inspector-General of Intelligence and Security Act 1986 and is subject to the PGPA Act. The OIGIS works to provide assurance that Australia’s intelligence agencies act legally and with propriety whilst having due regard to human rights.

The Office of the Official Secretary to the Governor-General (OOSGG) is a non-corporate Commonwealth entity which supports the Governor-General in the performance of his responsibilities and is subject to the PGPA 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.

Outback Stores Pty Ltd (OBS) is a Commonwealth Company subject to the Corporations Act 2001 and the PGPA Act. OBS promotes the health, employment and economic development of remote Indigenous communities by managing quality, sustainable retail stores. OBS helps Aboriginal and Torres Strait Islander people to improve their standard of living and achieve health goals through sustainable retail stores.

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

Portfolio Overview

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The Remuneration Tribunal is an independent statutory authority established under the Remuneration Tribunal Act 1973. The Remuneration Tribunal is primarily responsible for inquiring into and determining the remuneration and allowances to be paid to holders of public offices (including parliamentary offices). The Remuneration Tribunal also reports on and provides advice about these matters.

The Torres Strait Regional Authority (TSRA) is a corporate Commonwealth entity established by the Aboriginal and Torres Strait Islander (ATSI) Act 2005 and is subject to the PGPA Act. The TSRA formulates, implements and monitors the effectiveness of programs 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. The 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 a corporate Commonwealth entity established by the Aboriginal Land Grant (Jervis Bay Territory) Act 1986 and is subject to the PGPA Act. The council holds title to land and provides services to the Aboriginal community of Jervis Bay.

For information on resourcing across the portfolio, please refer to Part 1: Agency Financial Resourcing in Budget Paper No. 4: Agency Resourcing.

PB Statements are not required for the Aboriginal Land Commissioner, Anindilyakwa Land Council, Defence Force Remuneration Tribunal, Executive Director of Township Leasing, Independent National Security Legislation Monitor, National Australia Day Council, Northern Land Council, Central Land Council, Outback Stores, Registrar of Indigenous Corporations, Remuneration Tribunal, Tiwi Land Council, and Wreck Bay Aboriginal Community Council, as they are not funded through the annual Appropriation Acts, either directly or through the Portfolio department.

Portfolio Overview

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Figure 1: Prime Minister and Cabinet Portfolio Structure and Outcomes

Prime Minister — The Hon Malcolm Turnbull MP

Minister for Indigenous Affairs — Senator the Hon Nigel Scullion

Minister for Women and Minister Assisting the Prime Minister for the Public Service

— Senator the Hon Michaelia Cash

Cabinet Secretary — Senator the Hon Arthur Sinodinos AO

Minister Assisting the Prime Minister for Cities and Digital Transformation — The Hon Angus Taylor MP

Minister Assisting the Prime Minister for Counter Terrorism — The Hon Michael Keenan MP

Assistant Minister to the Prime Minister — Senator the Hon James McGrath

Assistant Cabinet Secretary — The Hon Dr Peter Hendy MP

Department of the Prime Minister and Cabinet Secretary: Dr Martin Parkinson PSM

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 program delivery.

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

Aboriginal Hostels Limited Chief Executive Officer: Ms Joy Savage

Outcome: 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 Grant Hehir

Outcome: 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: The Hon John Lloyd PSM

Outcome: 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.

Continued on next page.

Portfolio Overview

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Digital Transformation Office Chief Executive Officer: Mr Paul Shetler

To improve the user experience for all Australians accessing government information and services by leading the design, development and continual enhancement of whole-of-government service delivery policies and standards, platforms and joined-up services.

Indigenous Business Australia Chief Executive Officer: Mr Christopher Fry

Outcome: 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.

Indigenous Land Corporation Acting Chief Executive Officer: Mr Leo Bator

Outcome: Enhanced socio-economic development, maintenance of cultural identity and protection of the environment by Indigenous Australians through land acquisition and management.

National Australia Day Council Limited Chief Executive Officer: Mr Jeremy Lasek

Outcome: 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 Councils

Anindilyakwa Land Council - Chief Executive Officer: Mr Mark Hewitt

Central Land Council - Accountable Authority: Mr Francis Kelly (Chair) and Mr David Ross (Director)

Northern Land Council - Chief Executive Officer: Mr Joe Morrison

Tiwi Land Council - Chief Executive Officer: Mr Brian Clancy

Objective: 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 Maude

Outcome: Advancement of Australia's national interests through increased government awareness of international developments affecting Australia.


Portfolio Overview

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Office of the Commonwealth Ombudsman Ombudsman: Mr Colin Neave

Outcome: Fair and accountable administrative action by Australian Government entities and prescribed private sector organisations, by investigating complaints, reviewing administrative action and statutory compliance inspections and reporting.

Office of the Inspector-General of Intelligence and Security Inspector-General:

The Hon. Margaret Stone

Outcome: 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 Mark Fraser

Outcome: 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.

Outback Stores Pty Ltd Chief Executive Officer: Mr Steve Moore

Objective: 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 Kee

Outcome: 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 Hansen

Objective: 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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ENTITY RESOURCES AND PLANNED PERFORMANCE

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

Aboriginal Hostels Limited ...................................................................................... 57

Australian National Audit Office .............................................................................. 75

Australian Public Service Commission ................................................................ 101

Digital Transformation Office ................................................................................ 125

Indigenous Business Australia.............................................................................. 143

Indigenous Land Corporation ................................................................................ 167

Office of National Assessments ............................................................................ 187

Office of the Commonwealth Ombudsman ........................................................... 205

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

Office of the Official Secretary to the Governor-General .................................... 245

Torres Strait Regional Authority ............................................................................ 271

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Department of the Prime Minister and Cabinet

Entity resources and planned performance

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DEPARTMENT OF THE PRIME MINISTER AND CABINET

Section 1: Entity overview and resources .............................................................. 19

1.1 Strategic direction statement ........................................................................ 19

1.2 Entity resource statement ............................................................................. 20

1.3 Budget measures ......................................................................................... 23

Section 2: Outcomes and planned performance .................................................... 24

2.1 Budgeted expenses and performance for Outcome 1................................... 25


Section 3: Budgeted financial statements .............................................................. 43

3.1 Budgeted financial statements ...................................................................... 43

3.2.1 Budgeted financial statements tables ........................................................... 45

PM&C Budget Statements

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DEPARTMENT OF THE PRIME MINISTER AND CABINET

Section 1: Entity 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 Assistant Ministers 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 programs

leading the APS in collaboration with the APSC

improving the lives of Indigenous Australians through increased participation in education and work, making communities safer where the ordinary rule of law applies, and working closely with other Australian Government Departments to lead efforts to ensure mainstream policy, programs and services deliver benefits to Indigenous Australians

improving the productivity, liveability and accessibility of cities through reforms that stimulate economic growth and ensure the wellbeing of current and future generations of Australians

advising the Prime Minister and Minister for women, on women’s safety, economic security, workforce participation, leadership and international engagement and coordinating this work across government.

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 ENTITY RESOURCE STATEMENT

Table 1.1 shows the total funding from all sources available to PM&C for its operations and to deliver programs and services on behalf of the government.

The table summarises how resources will be applied by outcome (government strategic policy objectives) and by administered (on behalf of the government or the public) and departmental (for the entity’s operations) classification.

For more detailed information on special accounts and special appropriations, please refer to Budget Paper No. 4 – Agency Resourcing.

Information in this table is presented on a resourcing (i.e. appropriations/cash available) basis, however the ‘Budgeted expenses by Outcome 1 and 2’ tables in Section 2 and the financial statements in Section 3 are presented on an accrual basis.


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Table 1.1: PM&C resource statement — Budget estimates for 2016-17 as at Budget May 2016

2015-16 Estimated

actual $'000

2016-17 Estimate

$'000

Departmental

Annual appropriations - ordinary annual services (a)

Prior year appropriations available - 29,061

Departmental appropriation 384,202 374,203

s 74 retained revenue receipts (b) 10,706 10,552

Departmental capital budget (c) 5,241 6,825

Annual appropriations - other services - non-operating (d)

Prior year appropriations available (e) - 2,495

Equity injection 3,096 8,611

Total departmental annual appropriations 403,245 431,747

Total departmental resourcing 403,245 431,747

Administered


Outcome 1 19,242 23,137

Outcome 2 1,210,031 1,310,418

Administered capital budget (f) 252 250

Payments to corporate entities (g) 120,727 92,752


Payments to corporate entities (g) 36,550 36,550

Annual appropriations - other services - specific payments to

States, ACT, NT and local government (d)

Outcome 2: Indigenous 8,647 7,648

Total administered annual appropriations 1,395,449 1,470,755

Total administered special appropriations (h) 247,495 188,006

Special accounts (h)

Opening balance 24,081 20,964

Appropriation receipts (i) 192,005 125,005

Non-appropriation receipts 2,932,151 3,022,175

Total special account receipts 3,148,237 3,168,144

less administered appropriations drawn from annual/special appropriations and credited to special accounts (192,005) (125,005)

less payments to corporate entities from annual/special appropriations (120,727) (92,752)

Total administered resourcing 4,478,449 4,609,148

Total resourcing for PM&C 4,881,694 5,040,8952015-16 2016-17

Average staffing level (number) 2,064 2,070 Continued on next page.


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Table 1.1: PM&C resource statement — Budget estimates for 2016-17 as at Budget May 2016 (continued)

Third party payments from and on behalf of other entities 2015-16

Estimated actual $'000

2016-17 Estimate

$'000

Receipts received from other entities for the provision of services (disclosed above in s74 Retained revenue receipts section above) 10,706 10,552Payments made to corporate entities within the Portfolio

Indigenous Land Corporation 9,389 9,156Indigenous Business Australia 34,258 10,602Aboriginal Hostels Limited 37,582 37,075Torres Strait Regional Authority 39,498 35,919

Please note: All figures shown above are GST exclusive - these may not match figures in the cash flow statement.

(a) Appropriation Bill (No. 1) 2016-17.

(b) Estimated retained revenue receipts under section 74 of the PGPA Act 2013.

(c) Departmental capital budgets are not separately identified in Appropriation Bill (No.1) and form part of ordinary annual services items. Please refer to Table 3.5 for further details. For accounting purposes, this amount has been designated as a 'contribution by owner'.

(d) Appropriation Bill (No. 2) 2016-17.

(e) Estimated balance carried forward from previous year.

(f) Administered capital budgets are not separately identified in Appropriation Bill (No. 1) and form part of ordinary annual services items. Please refer to Table 3.10 for further details. For accounting purposes, this amount is designated as a 'contribution by owner'.

(g) 'Corporate entities' are corporate Commonwealth entities and Commonwealth companies as defined under the PGPA Act.

(h) For further information on special appropriations and special accounts, please refer to Budget Paper No. 4 - Agency Resourcing. Please also see Table 2.1 for further information on outcome and program expenses broken down by various funding sources, e.g. annual appropriations, special appropriations and special accounts.

(i) Amounts credited to the special account(s) from PM&C's annual and special appropriations.


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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 2016-17 Budget measures

Part 1: Measures announced since the 2015-16 Mid-Year Economic and Fiscal Outlook (MYEFO)

Program2015-16

$'0002016-17

$'0002017-18

$'0002018-19

$'0002019-20

$'000

Expense measuresCyber Security - implementation of Australia's Cyber Security Strategy 1.1

Departmental - - - - -Total - - - - -Implementing the National Cities Agenda 1.1

Departmental - 4,629 - - -Total - 4,629 - - -Indigenous Business Australia - continuity of business support arrangements 2.1

Administered - 23,086 - - -Total - 23,086 - - -Indigenous Student Success in Higher Education 2.2

Administered - (1,341) (2,715) (2,781) (2,846)Total - (1,341) (2,715) (2,781) (2,846)Domestic and Family Violence - new initiatives to break the cycle of violence 2.3

Administered - - (10,000) (10,000) (12,167)Total - - (10,000) (10,000) (12,167)Towards Constitutional Recognition of Aboriginal and Torres Strait Islander Peoples 2.4 - - - - -

Administered - - - - -Total Cashless Debit Card - third trial site 2.6Departmental - nfp - - -Total - nfp - - -Total Expense measures

Administered - 21,745 (12,715) (12,781) (15,013)Departmental - 4,629 - - -

Total - 26,374 (12,715) (12,781) (15,013)

Prepared on a Government Finance Statistics (fiscal) basis.

Figures displayed as a negative (-) represent a decrease in funds and a positive (+) represent an increase in funds.

Note: the lead entity for measure ‘Contribution to the third Action Plan’ is the Department of Social Services. This measure will contribute to the delivery of a number of initiatives to reduce Indigenous family and domestic violence.

Note: The lead entity for measure 'International Trade Agreements - government procurement reforms' is the Department of Foreign Affairs and Trade. The full measure description and package details appear in Budget Paper No. 2 under the Department of Foreign Affairs and Trade portfolio.


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Section 2: Outcomes and planned performance

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

Each outcome is described below together with its related programs. The following provides detailed information on expenses for each outcome and program, further broken down by funding source.

Note:

From 1 July 2015, performance reporting requirements in the Portfolio Budget Statements sit alongside those required under the enhanced commonwealth performance framework. It is anticipated that the performance criteria described in Portfolio Budget Statements will be read with broader information provided in an entity’s corporate plans and annual performance statements – included in Annual Reports from October 2016 – to provide an entity’s complete performance story.


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2.1 BUDGETED EXPENSES AND PERFORMANCE FOR OUTCOME 1

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 program delivery.

This table shows how much PM&C intends to spend (on an accrual basis) on achieving the outcome, broken down by program, as well as by Administered and Departmental funding sources.

Table 2.1.1: Budgeted expenses for Outcome 1

2015-16 Estimated

actual$'000

2016-17Budget

$'000

2017-18 Forward estimate

$'000


$'000

2019-20Forward estimate

$'000

Administered expensesCompensation and Legal Expenses 121 121 125 123 125

Geocoded National Address File 4,314 8,140 8,296 8,455 -

National Australia Day Council Limited 3,803 3,828 3,883 3,914 3,949

National Counter Terrorism Committee Secretariat 111 112 112 113 115

Office for Women 3,555 3,602 3,306 3,336 3,363

Parliament House Briefing Room 446 447 453 457 474

Prime Minister's Official Residences 1,738 1,768 1,816 1,862 1,878

State Occasion and Official Visits 3,573 3,632 3,726 3,813 3,848

Support to the former Governors-General (a) 454 422 391 373 3,920

Ordinary annual services (Appropriation Bill No. 1) 18,115 22,072 22,108 22,446 17,672Special appropriations

Public Governance, Performance and Accountability Act 2013- s77 10 10 10 10 10

Special accountsAustralia New Zealand Land Information 35 35 23 - -

Services for Other Entities and Trust Moneys 5 5 5 - -

Expenses not requiring appropriation in the

Budget year (b) 124 131 131 144 144Administered total 18,289 22,253 22,277 22,600 17,826

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 program delivery.

Program 1.1: Prime Minister and Cabinet



26

Table 2.1.1: Budgeted expenses for Outcome 1 (continued) 2015-16

Estimated actual$'000

2016-17Budget

$'000


$'000


$'000


$'000

Departmental expensesDepartmental appropriation 117,776 110,366 105,718 106,358 105,598

s 74 Retained revenue receipts (c) 3,619 3,567 3,372 3,245 3,296Expenses not requiring appropriation in the

Budget year (b) 9,893 10,137 9,460 7,952 7,612Departmental total 131,288 124,070 118,550 117,555 116,506

Total expenses for Outcome 1 149,577 146,323 140,827 140,155 134,3322015-16 2016-17

Average staffing level (number) 561 550

Program 1.1: Prime Minister and Cabinet

(a) The annual expense figure reflects the unwinding of the discount on the provision for future entitlements

for each of the former Governors-General. The increase in 2019-20 relates to the recognition of a provision for projected future entitlements for former Governors-General.

(b) Expenses not requiring appropriation in the Budget year are made up of depreciation expenses, amortisation expenses, make good expenses, audit fees, and other services provided free of charge.

(c) Estimated expenses incurred in relation to receipts retained under section 74 of the PGPA Act 2013. Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of the budget year as government priorities change.


27

Table 2.1.2: Performance criteria for Outcome 1

Table 2.1.2 below details the performance criteria for program 1.1. It also summarises how the program is delivered and where 2016-17 Budget measures have created new programs or materially changed existing programs.

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

Program 1.1 – Prime Minister and Cabinet

The objectives of this program are to:

provide advice, support and services to the Prime Minister, the Cabinet, Portfolio Ministers and Assistant Ministers, and coordination across Government, on major domestic, international and national security matters

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

Delivery This program is delivered through the provision of advice, support and services to the Prime Minister, the Cabinet, Portfolio Ministers, Assistant Ministers and/or the Executive Council and through leadership and coordinated public sector responses to Government decisions and strategic priorities.

Performance information

Year Performance criteria Targets

2015-16 Policy advice and support to the Prime Minister, the Cabinet, Portfolio Ministers and Assistant Ministers in key areas

Leadership, policy coordination, monitoring and coordinated whole-of-government responses to Government’s decisions, policies and strategic priorities

Provision of services for the Prime Minister, Portfolio Ministers, Assistant Ministers and their ministerial offices

Management of official visits by, and hospitality for, guests of the Government, such as 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

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)

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 Assistant Ministers 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



28

Table 2.1.2: Budgeted expenses for Outcome 1 (continued)


2015-16 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.

Development of policies, standards and coordinated approaches to public data sets, including geocoded national address data, to support initiatives such as the commitment to open data principles.

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

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 the regulator performance framework



29



2015-16

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 programs and support to promote women’s economic empowerment and opportunity, reducing violence against women, and women’s leadership and status.

2016-17 Quality and timely policy advice, support and services to the Prime Minister, the Cabinet and key stakeholders

Effective public sector leadership, coordination, and monitoring of responses to Government decisions, policies and strategic priorities.

Positive change in stakeholder feedback (by 2017).

2017-18 and beyond As per 2016-17. As per 2016-17.

Purposes(a) 1.1 Supporting the Prime Minister as the head of the Australian Government and the Cabinet

1.2 Providing advice on major domestic policy and national security matters

(a) Refers to updated Purposes that will be reflected in the Corporate Plan 2016-17.


30


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

Linked programs

Attorney-General’s Department

Program 1.4 - Justice Services

Program 1.6 - Indigenous Law and Justice

Contribution to Outcome 2 made by linked programs

The Attorney-General’s Department works with PM&C by supporting Native Title Representative Bodies and Native Title Service Providers within the native title system.

The Attorney-General’s Department contributes to the Indigenous Advancement Strategy by delivering the Indigenous Legal Assistance Program that funds organisations to deliver legal assistance services to help Indigenous Australians overcome their legal problems and fully exercise their legal rights.

Department of Agriculture and Water Resources

Program 1.2 - Sustainable Management of Natural Resources and the Environment

Program 2.1 - Biosecurity and Export Services


The Department of Agriculture and Water Resources works with PM&C to provide opportunities for indigenous communities and land managers to engage with the National Landcare Programme.

The Department of Agriculture and Water Resources and the Department of the Prime Minister and Cabinet partner with Aboriginal and Torres Strait Islander Ranger groups to deliver biosecurity work that protects Australian agriculture and the northern Australian environment.



31

Department of the Environment

Program 1.1 - Sustainable Management of Natural Resources and the Environment

Program 2.1 - Reducing Australia's Greenhouse Gas Emissions


The Department of the Environment works with PM&C to deliver the funding for the Indigenous Protected Areas Program and elements of the Indigenous Rangers Program through the National Landcare Programme.

The Department of the Environment works with PM&C to improve results for Indigenous Australians by offering opportunities to work on country and generate income through projects that reduce Australia's greenhouse gas emissions.

Department of Employment

Program 1.1 - Employment Services


Payments and services under the Indigenous Advancement Strategy are delivered by the Department of Employment on behalf of PM&C.

Department of Health

Program 2.3 - Aboriginal and Torres Strait Islander Health


The Department of Health works with PM&C to deliver high quality essential health services to Aboriginal and Torres Strait Islander people, and respond to new and emerging health needs.

Department of Human Services

Program 1.1 - Services to the Community - Social Security and Welfare


Payments and services under the Indigenous Advancement Strategy are delivered by the Department of Human Services on behalf of PM&C.



32

Department of Social Services

Program 1.11 – Student Payments

Program 2.1 - Families and Communities

Program 3.1 - Disability Employment


The Department of Social Services has policy responsibility for student payments, some of which (i.e. Relocation Scholarships and Student Start-up Scholarships/Loans) are subject to mutual exclusion provisions for some scholarships (i.e. Commonwealth Accommodation Costs Scholarship and Commonwealth Education Costs Scholarship) paid for the same period, which are administered by the Department of Prime Minister and Cabinet.

The Department of Social Services contributes to the Indigenous Advancement Strategy by supporting the development of stronger families and more resilient communities by supporting indigenous families and communities to enjoy similar levels of physical, emotional and social wellbeing enjoyed by other Australians, supporting families to give children a good start in life and by supporting remote strategic investments and remote housing strategies.

The Department of Social Services contributes to the Indigenous Advancement Strategy by supporting eligible Indigenous Australians with a disability into work.


33


2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000

Administered expensesOrdinary annual services (Appropriation Bill No. 1) 623,493 729,542 654,303 610,833 640,338Special appropriations

Aboriginal Land Rights (Northern Territory) Act 1976Aboriginals Benefit Account 192,000 125,000 131,000 146,000 152,000

Ranger Agreement 969 983 998 1,013 1,028

Special accountsAboriginal and Torres Strait Islander Land Account 51,108 51,979 53,226 54,504 55,811

Aboriginals Benefit Account 177,226 157,087 154,988 149,478 141,967

Payments to corporate entities 43,647 19,758 42,785 42,685 42,630

Administered total 1,088,443 1,084,349 1,037,300 1,004,513 1,033,774less expenses made from special appropriations credited to special accounts (177,226) (157,087) (154,988) (149,478) (141,967)

Total expenses for Program 2.1 911,217 927,262 882,312 855,035 891,807

Administered expensesOrdinary annual services (Appropriation Bill No. 1) 222,821 217,264 212,668 212,663 219,535

Other services (Appropriation Bill No. 2) 8,647 7,648 7,762 6,536 4,779

Special appropriationsHigher Education Support

Act 2003 (a)

Commonwealth Scholarship Program 14,703 7,982 - - -

Indigenous Support Program 39,813 20,295 - - -

Indigenous Student Success Program - 33,736 68,283 69,887 71,494

Special accountsAboriginal Tutorial Assistance Superannuation Scheme 5 5 5 - -

Administered total 285,989 286,930 288,718 289,086 295,808less expenses made from special appropriations credited to special accounts (5) (5) (5) - -


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

Program 2.1: Jobs, Land and Economy

Program 2.2: Children and Schooling



34



2016-17Budget

$'000


$'000


$'000


$'000

Administered expensesOrdinary annual services (Appropriation Bill No. 1) 248,954 256,597 257,699 237,436 270,897Payments to corporate entities 37,582 37,075 37,196 37,363 37,727

Administered total 286,536 293,672 294,895 274,799 308,624Total expenses for Program 2.3 286,536 293,672 294,895 274,799 308,624


Administered total 63,310 54,915 48,796 48,796 50,321Total expenses for Program 2.4 63,310 54,915 48,796 48,796 50,321

Administered expensesOrdinary annual services (Appropriation Bill No. 1) 51,453 52,100 54,659 52,375 54,011Special accounts

Indigenous Remote Services Delivery 3,210 4,681 - - -

Payments to corporate entities 39,498 35,919 36,229 36,528 36,832Administered total 94,161 92,700 90,888 88,903 90,843


Program 2.3: Safety and Wellbeing

Program 2.4: Culture and Capability

Program 2.5: Remote Australia Strategies



35



2016-17Budget

$'000


$'000


$'000


$'000


s 74 Retained revenue receipts (b) 7,087 6,985 6,603 6,354 6,454Expenses not requiring appropriation in the

Budget year (c) 7,986 8,997 8,764 12,705 11,998

Departmental total 281,499 279,819 277,476 282,231 281,150Total expenses for Program 2.6 281,499 279,819 277,476 282,231 281,150

Administered expensesOrdinary annual services (Appropriation Bill No. 1) 1,210,031 1,310,418 1,228,125 1,162,103 1,235,102Other services (Appropriation Bill No. 2) 8,647 7,648 7,762 6,536 4,779

s74 Retained revenue receipts (b)

Special appropriations 247,485 187,996 200,281 216,900 224,522Special accounts 231,549 213,752 208,219 203,982 197,778Payments to corporate entities 120,727 92,752 116,210 116,576 117,189

less expenses made from appropriations credited to special accounts (177,231) (157,092) (154,993) (149,478) (141,967)

Administered total 1,641,208 1,655,474 1,605,604 1,556,619 1,637,403Departmental expenses

Departmental appropriation 266,426 263,837 262,109 263,172 262,698

s 74 Retained revenue receipts (b) 7,087 6,985 6,603 6,354 6,454Expenses not requiring appropriation in the

Budget year (c) 7,986 8,997 8,764 12,705 11,998Departmental total 281,499 279,819 277,476 282,231 281,150

Total expenses for Outcome 2 1,922,707 1,935,293 1,883,080 1,838,850 1,918,5532015-16 2016-17

Average staffing level (number) 1,503 1,520

Program 2.6: Program Support

Outcome 2 Totals by appropriation type

(a) The current Indigenous Support Program (ISP) and the Commonwealth Scholarship Program (CSP) will

be managed under the Indigenous Student Success Program from 1 January 2017.

(b) Estimated expenses incurred in relation to receipts retained under section 74 of the PGPA Act 2013.

(c) Expenses not requiring appropriation in the Budget year are made up of depreciation expenses, amortisation expenses and audit fees.

Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of the budget year as government priorities change.


36

Table 2.2.2: Performance criteria for Outcome 2 Table 2.2.2 below details the performance criteria for each program associated with Outcome 2. It also summarises how each program is delivered and where 2016-17 Budget measures have created new programs or materially changed existing programs. The performance information in this PBS has been developed to meet the minimum standards specified in the Finance Secretary direction issued under subsection 35(3) of the PGPA Act 2013, issued in February 2016. In addition to the performance criteria and targets outlined in this PBS the department is reviewing its performance framework ahead of publishing detailed performance information in the 2016-17 Corporate Plan on 31 August 2016.

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

Program 2.1 – Jobs, Land and Economy

The objectives of this program are 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.

Delivery This program is delivered through Indigenous Advancement Strategy activities aimed at increasing Indigenous employment, business and economic development



2015-16 Increased Indigenous employment, business and economic development.

Increase in the Indigenous employment and participation rates

Number of employment places filled with assistance by the Indigenous Advancement – Jobs, Land and Economy program and proportion retained for 26 weeks

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

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.



37

Table 2.2.2: Performance criteria for Outcome 2 (continued) Year Performance criteria Targets

2016-17 Increased Indigenous employment, business and economic development.

Halve the gap in employment outcomes between Indigenous and non-Indigenous Australians within a decade (by 2018)

A majority* of funded activities within this Program met the mandatory KPI on the extent of compliance with Project Agreement terms and conditions (by 2017).


Purpose(a) Improving the lives of Indigenous Australians

(a) Refers to updated purposes that will be reflected in the Corporate Plan 2016-17.



38

Table 2.2.2: Performance criteria for Outcome 2 (continued) Program 2.2 – Children and Schooling

The objectives of this program are getting children to school, particularly in remote Indigenous communities, improving education outcomes and supporting families to give children a good start in life. This program includes measures to improve access to further education.

Delivery This program is delivered through Indigenous Advancement Strategy activities aimed at increasing Indigenous school attendance and improved educational outcomes.



2015-16 Increased Indigenous school attendance and improved educational outcomes.

Increase in 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).

2016-17 Increased Indigenous school attendance and improved educational outcomes.

Meeting COAG education targets (two by 2018, one by 2020)#

A majority* of funded activities within this Program met the mandatory KPI on the extent of compliance with Project Agreement terms and conditions (by 2017).




# Halve the gap in reading, writing and numeracy achievements for Indigenous students by 2018. Close the gap in school attendance by the end of 2018. Halve the gap for Indigenous students in Year 12 (or equivalent) attainment rates by 2020.



39

Table 2.2.2: Performance criteria for Outcome 2 (continued) Program 2.3 – Safety and Wellbeing

The objectives of this program are to ensure that the ordinary law of the land applies to Indigenous communities and ensure Indigenous people enjoy similar levels of physical, emotional and social wellbeing enjoyed by other Australians.

Delivery This program is delivered through Indigenous Advancement Strategy activities aimed at reducing levels of offending, violence and substance abuse.



2015-16 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.

2016-17 Reduced levels of offending, violence and substance abuse.

A majority* of funded activities within this Programme met the mandatory KPI on the extent of compliance with Project Agreement terms and conditions (by 2017).






40

Table 2.2.2: Performance criteria for Outcome 2 (continued) Program 2.4 – Culture and Capability

The objectives of this program are supporting Aboriginal and Torres Strait Islander people to maintain their culture, participate equally in the economic and social life of the nation and ensuring that Indigenous organisations are capable of delivering quality services to their clients, particularly in remote areas.

Delivery This program is delivered through Indigenous Advancement Strategy activities aimed at:

indigenous cultural expression and conservation

increasing participation of Indigenous people in society through healing and improved capability and leadership

promoting the unique place of Indigenous cultures in Australian society.



2015-16 Progress towards a referendum on constitutional recognition

Increase the participation of Indigenous people in Australian society through cultural activities and events, Interpreting, Healing and Broadcasting services

Strengthen the capability of Indigenous organisations.

Release of a draft proposal for 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, broadcasting and healing 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.

2016-17 Increased participation of Indigenous people in Australian society and improved capability of Indigenous organisations.







41

Table 2.2.2: Performance criteria for Outcome 2 (continued) Program 2.5 – Remote Australia Strategies

The objectives of this program are ensuring strategic investments in local, flexible solutions based on community and Government priorities.

Delivery This program is delivered through Indigenous Advancement Strategy activities aimed at investment in local, flexible solutions based on community priorities



2015-16 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.

2016-17 Investment in local solutions based on community and government priorities.







42

Table 2.2.2: Performance criteria for Outcome 2 (continued) Program 2.6 – Program Support

This program is the departmental support program to the five Indigenous Advancement Strategy Programs. The 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 through the principle of empowering communities.

Delivery Departmental support to the five Indigenous Advancement Strategy Programs.



2015-16 Not applicable Not applicable

2016-17 Efficient department support to the five Indigenous Advancement Strategy programs.

Majority* of key performance measures in the Corporate Plan are met or are on track (by 2017).



* Majority refers to an acceptable level of between 70 and 90 per cent, noting that this is the first year a target is being set. The actual results will be published at year end and will be assessed for acceptability. Targets may then be refined based on first year results. While it is desirable for all activities to succeed, this target reflects the engagement with risk of trialling new activities and providers. (a) Refers to updated Purposes that will be reflected in the Corporate Plan 2016-17.


43

Section 3: Budgeted financial statements

Section 3 presents budgeted financial statements which provide a comprehensive snapshot of entity finances for the 2016-17 budget year, including the impact of budget measures and resourcing on financial statements.

3.1 BUDGETED FINANCIAL STATEMENTS

3.1.1 Differences between entity resourcing and financial statements

Departmental

The Agency Resource Statement (Table 1.1) provides a consolidated view of all the resources available to PM&C in 2016-17. For departmental items this includes equity injections and appropriation receivable that is yet to be drawn down to cover payables and provisions on the Departmental Balance Sheet (Table 3.2). The Comprehensive Income Statement (Table 3.1) shows only the operating appropriation provided each year.

Administered

The 2016-17 administered expense figures in the Entity Resource Statement (Table 1.1) include 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 is appointed. 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 3.7) includes non-cash appropriation items including depreciation and amortisation expense, makegood and the provision for former Governors-General entitlements.

3.1.2 Explanatory notes and analysis of budgeted financial statements

Departmental

Comprehensive Income Statement

Revenue from Government for 2016-17 has increased since the 2015-16 Portfolio Additional Estimates Statements (PAES) from $373.1 million to $374.2 million. Following the Administrative Arrangement Orders made on 21 December 2015 PM&C gained the Cities and built environment function resulting in increased employee expenses and associated supplier costs.


44

PM&C is budgeting for a break-even net cost of services in 2016-17 and the forward estimates. The Comprehensive Income Statement (Table 3.2) sets out the expected operating results for the ordinary annual services provided by PM&C, which are funded by departmental appropriations and other revenue.

Budgeted Departmental Balance Sheet

PM&C’s net asset position decreases over the forward estimates as a result of the impact of the sale of properties relating to the Property Divestment Strategy. The net asset position is expected to stabilise following the conclusion of this measure in 2018-19.

Administered

Schedule of Budgeted Income and Expenses Administered on Behalf of Government

The estimated administered grant expenditure has increased by $22.0 million since PAES primarily due to funding received for the measure Continuity of Indigenous Business Support.

Schedule of Budgeted Assets and Liabilities Administered on Behalf of Government

PM&C’s budgeted administered net assets position in 2016-17 is expected to be $4.5 billion, which remains relatively stable from the estimated actuals in 2015-16 ($4.4 billion).


45

3.2.1 BUDGETED FINANCIAL STATEMENTS TABLES

Table 3.1: Comprehensive income statement (showing net cost of services) for the period ended 30 June

2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000

EXPENSESEmployee benefits 256,419 254,194 253,443 255,252 254,406

Suppliers 140,890 132,320 125,956 125,492 125,271

Grants 402 402 402 402 402

Depreciation and amortisation 15,058 16,957 16,210 18,627 17,564

Finance costs 18 16 15 13 13

Total expenses 412,787 403,889 396,026 399,786 397,656LESS: OWN-SOURCE INCOMEOwn-source revenue

Sale of goods and rendering of services 10,706 10,552 9,975 9,599 9,750

Total own-source revenue 10,706 10,552 9,975 9,599 9,750Gains

Other 2,821 2,177 2,014 2,030 2,046

Total gains 2,821 2,177 2,014 2,030 2,046Total own-source income 13,527 12,729 11,989 11,629 11,796Net (cost of)/contribution by services (399,260) (391,160) (384,037) (388,157) (385,860)

Revenue from Government 384,202 374,203 367,827 369,530 368,296Surplus/(deficit) attributable to the Australian Government (15,058) (16,957) (16,210) (18,627) (17,564)

Total comprehensive income/(loss) attributable to the Australian Government (15,058) (16,957) (16,210) (18,627) (17,564)



46

Table 3.1: Comprehensive income statement (showing net cost of services) for the period ended 30 June (continued)

Note: Impact of net cash appropriation arrangements2015-16

$'0002016-17

$'0002017-18

$'0002018-19

$'0002019-20

$'000Total comprehensive income/(loss) excluding depreciation/amortisation expenses previously funded through revenue appropriations. - - - - -

less depreciation/amortisation expenses previously funded through revenue

appropriations (a) 15,058 16,957 16,210 18,627 17,564

Total comprehensive income/(loss) - as per the statement of comprehensive income (15,058) (16,957) (16,210) (18,627) (17,564)

(a) From 2010-11, the Government introduced net cash appropriation arrangements where Bill 1 revenue

appropriations for the depreciation/amortisation expenses of non-corporate Commonwealth entities (and select corporate Commonwealth entities) 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 3.5 Departmental Capital Budget Statement.

Prepared on Australian Accounting Standards basis.


47

Table 3.2: Budgeted departmental balance sheet (as at 30 June) 2015-16


2016-17Budget

$'000


$'000


$'000


$'000

ASSETSFinancial assets

Cash and cash equivalents 2,664 2,664 2,664 2,664 2,664Trade and other receivables 108,976 108,675 107,987 110,102 110,400Other financial assets 5,273 5,276 5,279 5,282 5,282

Total financial assets 116,913 116,615 115,930 118,048 118,346 Non-financial assets

Land and buildings 96,318 95,191 94,265 86,996 84,796Property, plant and equipment 16,415 13,845 14,535 21,039 19,958Intangibles 15,185 14,861 15,183 14,138 15,517Other non-financial assets 2,594 2,587 2,599 3,984 3,984

Total non-financial assets 130,512 126,484 126,582 126,157 124,255 Assets held for sale 430 430 430 430 430

Total assets 247,855 243,529 242,942 244,635 243,031 LIABILITIESPayables

Suppliers 23,415 20,870 19,007 21,807 22,220Grants 370 370 370 370 370Other payables 16,507 15,532 14,091 12,137 12,137

Total payables 40,292 36,772 33,468 34,314 34,727 Provisions

Employee provisions 74,573 75,405 75,580 75,821 75,706Other provisions 727 594 535 438 438

Total provisions 75,300 75,999 76,115 76,259 76,144 Total liabilities 115,592 112,771 109,583 110,573 110,871 Net assets 132,263 130,758 133,359 134,062 132,160 EQUITY*

Contributed equity 154,446 169,882 184,947 204,612 220,274Reserves 12,053 12,053 12,053 12,053 12,053Retained surplus (accumulated deficit) (34,236) (51,177) (63,641) (82,603) (100,167)

Total equity 132,263 130,758 133,359 134,062 132,160 * ‘Equity’ is the residual interest in assets after the deduction of liabilities.



48

Table 3.3: Departmental statement of changes in equity — summary of movement (Budget year 2016-17)

Retained earnings

$'000

Asset revaluation

reserve

$'000

Contributed equity/ capital

$'000

Total equity

$'000

Opening balance as at 1 July 2016Balance carried forward from previous period (34,236) 12,053 154,446 132,263

Adjusted opening balance (34,236) 12,053 154,446 132,263Comprehensive income

Surplus/(deficit) for the period (16,957) - - (16,957)Total comprehensive income (16,957) - - (16,957)Transactions with owners

Distributions to ownersReturns of capital:

Other 16 - - 16Contributions by owners

Equity injection - Appropriation - - 8,611 8,611

Departmental capital budget (DCB) - - 6,825 6,825

Sub-total transactions with owners 16 - 15,436 15,452Closing balance attributable to the Australian Government (51,177) 12,053 169,882 130,758



49

Table 3.4: Budgeted departmental statement of cash flows (for the period ended 30 June)

2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000

OPERATING ACTIVITIESCash received

Appropriations 371,619 369,814 364,251 354,499 368,594


Total cash received 382,325 380,366 374,226 364,098 378,344Cash used

Employees 263,777 253,362 253,268 255,011 254,521Suppliers 118,219 117,908 111,584 99,538 111,620

s 74 Retained revenue receipts transferred to OPA 10,830 10,549 9,972 9,596 9,750Other 1,398 1,047 1,902 2,453 2,453

Total cash used 394,224 382,866 376,726 366,598 378,344Net cash from/(used by) operating activities (11,899) (2,500) (2,500) (2,500) -INVESTING ACTIVITIESCash received

Proceeds from sales of property, plant and equipment 2,500 2,500 2,500 2,500 -

Total cash received 2,500 2,500 2,500 2,500 -Cash used

Purchase of property, plant and equipment and intangibles 13,137 15,436 18,796 20,317 15,662

Total cash used 13,137 15,436 18,796 20,317 15,662Net cash from/(used by) investing activities (10,637) (12,936) (16,296) (17,817) (15,662)FINANCING ACTIVITIESCash received

Contributed equity 13,137 15,436 18,796 20,317 15,662Total cash received 13,137 15,436 18,796 20,317 15,662Net cash from/(used by) financing activities 13,137 15,436 18,796 20,317 15,662Net increase/(decrease) in cash held (9,399) - - - -

Cash and cash equivalents at the beginning of the reporting period 12,063 2,664 2,664 2,664 2,664

Cash and cash equivalents at the end of the reporting period 2,664 2,664 2,664 2,664 2,664Prepared on Australian Accounting Standards basis.


50

Table 3.5: Departmental capital budget statement (for the period ended 30 June) 2015-16


2016-17Budget

$'000


$'000


$'000


$'000

NEW CAPITAL APPROPRIATIONSCapital budget - Bill 1 (DCB) 5,241 6,825 7,102 7,184 13,765

Equity injections - Bill 2 3,096 8,611 11,694 13,133 1,897

Total new capital appropriations 8,337 15,436 18,796 20,317 15,662Provided for:

Purchase of non-financial assets 8,337 15,436 18,796 20,317 15,662

Total items 8,337 15,436 18,796 20,317 15,662PURCHASE OF NON-FINANCIAL ASSETS

Funded by capital appropriations (a) 3,096 8,611 11,694 13,133 1,897

Funded by capital appropriation -

DCB (b) 5,241 6,825 7,102 7,184 13,765

Funded internally from departmental

resources (a) 4,800 - - - -

TOTAL 13,137 15,436 18,796 20,317 15,662RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE

Total purchases 13,137 15,436 18,796 20,317 15,662

Total cash used to acquire assets 13,137 15,436 18,796 20,317 15,662 (a) Includes both current Bill 2 and prior Act 2/4/6 appropriations and special capital appropriations.

(b) Does not include annual finance lease costs. Includes purchases from current and previous years’ Departmental capital budgets (DCBs).


PM

&C

Budget Statem

ents

51

Table 3.6: Statement of asset movements (Budget year 2016-17) Land

$'000

Buildings

$'000

Other property, plant and

equipment

$'000

Computer software and

intangibles

$'000

L&B, IP&E held for sale

$'000

Total

$'000

As at 1 July 2016Gross book value 19,635 84,947 22,360 17,620 430 144,992

Accumulated depreciation/amortisation and impairment - (8,264) (5,945) (2,435) - (16,644)

Opening net book balance 19,635 76,683 16,415 15,185 430 128,348Capital asset additions

Estimated expenditure on new or replacement assetsBy purchase - appropriation

equity (a) - 7,552 1,059 - - 8,611

By purchase - appropriation ordinary

annual services (b) - 2,820 1,895 2,110 - 6,825

Total additions - 10,372 2,954 2,110 - 15,436Other movementsDepreciation/amortisation expense - (8,999) (5,524) (2,434) - (16,957)

Disposals (c)

From disposal of entities or operations (including restructuring) - (2,500) - - (2,500)

Total other movements - (11,499) (5,524) (2,434) - (19,457)As at 30 June 2017

Gross book value 19,635 92,604 25,314 19,730 430 157,713

Accumulated depreciation/amortisation and impairment - (17,048) (11,469) (4,869) - (33,386)

Closing net book balance 19,635 75,556 13,845 14,861 430 124,327 (a) 'Appropriation equity' refers to equity injections appropriations provided through Appropriation Bill (No. 2) 2015-16, including CDABs.

(b) ‘Appropriation ordinary annual services’ refers to funding provided through Appropriation Bill (No. 1) 2015-16 for depreciation/amortisation expenses, DCBs or other operational expenses.

(c) Net proceeds may be returned to the OPA.



52

Table 3.7: Schedule of budgeted income and expenses administered on behalf of Government (for the period ended 30 June)

2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000

EXPENSESEmployee benefits 900 918 918 918 918

Suppliers 87,553 110,309 72,825 51,829 74,661

Subsidies 1,698 1,750 1,826 1,688 1,931

Grants 1,307,646 1,379,577 1,343,579 1,293,859 1,340,730

Depreciation and amortisation 124 131 131 144 144

Finance costs 454 422 391 373 341

Payments to corporate entities 120,727 92,752 116,210 116,576 117,189

Other expenses 140,354 127,707 130,207 123,544 119,315

Total expenses administered on behalf of Government 1,659,456 1,713,566 1,666,087 1,588,931 1,655,229

LESS:OWN-SOURCE INCOMENon-taxation revenue

Interest 73,040 77,114 78,635 79,973 81,705

Other revenue 1,686 1,724 1,763 1,806 1,850

Total non-taxation revenue 74,726 78,838 80,398 81,779 83,555Total own-source revenue administered on behalf of Government 74,726 78,838 80,398 81,779 83,555

Total own-sourced income administered on behalf of Government 74,726 78,838 80,398 81,779 83,555

Net (cost of)/contribution by services (1,584,730) (1,634,728) (1,585,689) (1,507,152) (1,571,674)Total comprehensive income/(loss) (1,584,730) (1,634,728) (1,585,689) (1,507,152) (1,571,674)Prepared on Australian Accounting Standards basis.


53

Table 3.8: Schedule of budgeted assets and liabilities administered on behalf of Government (as at 30 June)

2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000

ASSETS Financial assets

Cash and cash equivalents 14,561 14,561 14,561 14,561 14,561Trade and other receivables 67,606 68,352 68,296 67,613 67,613Investments 4,354,034 4,454,437 4,559,095 4,665,914 4,690,796

Total financial assets 4,436,201 4,537,350 4,641,952 4,748,088 4,772,970Non-financial assets

Property, plant and equipment 1,568 1,688 1,814 1,929 2,045Other non-financial assets 7,178 7,548 7,348 6,664 6,664

Total non-financial assets 8,746 9,236 9,162 8,593 8,709Total assets administered on behalf of Government 4,444,947 4,546,586 4,651,114 4,756,681 4,781,679LIABILITIESPayables

Suppliers 6,161 6,180 6,207 6,156 6,156Grants 18,640 18,640 18,640 18,640 18,640Other payables 9,045 9,918 9,295 7,102 7,102

Total payables 33,846 34,738 34,142 31,898 31,898Provisions

Employee provisions 339 339 339 339 339Other provisions 16,611 15,549 14,554 13,350 16,091

Total provisions 16,950 15,888 14,893 13,689 16,430Total liabilities administered on behalf of Government 50,796 50,626 49,035 45,587 48,328Net assets/(liabilities) 4,394,151 4,495,960 4,602,079 4,711,094 4,733,351Prepared on Australian Accounting Standards basis.


54

Table 3.9: Schedule of budgeted administered cash flows

(for the period ended 30 June) 2015-16


2016-17Budget

$'000


$'000


$'000


$'000


Other 1,703 1,746 1,788 1,833 1,833Total cash received 1,703 1,746 1,788 1,833 1,833Cash used

Grant 1,307,646 1,379,577 1,343,579 1,293,859 1,340,730Subsidies paid 1,698 1,750 1,826 1,688 1,931Suppliers 89,219 110,290 72,797 51,880 74,365Employees 892 918 918 918 918Payments to corporate entities 120,727 92,752 116,210 116,576 117,189

Other (a) 135,022 127,177 129,349 126,346 112,778

Total cash used 1,655,204 1,712,464 1,664,679 1,591,267 1,647,911Net cash from/(used by) operating activities (1,653,501) (1,710,718) (1,662,891) (1,589,434) (1,646,078)INVESTING ACTIVITIESCash received

Investments 3,982,951 4,106,167 4,233,194 4,364,151 4,499,159Interest on Investments 73,040 77,114 78,635 79,973 81,705

Total cash received 4,055,991 4,183,281 4,311,829 4,444,124 4,580,864Cash used

Purchase of property, plant and equipment and intangibles 252 250 255 259 260Investments 4,044,383 4,169,499 4,298,486 4,431,463 4,268,553

Total cash used 4,044,635 4,169,749 4,298,741 4,431,722 4,268,813Net cash from/(used by) investing activities 11,356 13,532 13,088 12,402 312,051Net increase/(decrease) in cash held (1,642,145) (1,697,186) (1,649,803) (1,577,032) (1,334,027)

Cash and cash equivalents at beginning of reporting period 14,563 14,561 14,561 14,561 14,561

Cash from Official Public Account for:

- Appropriations 1,642,143 1,697,186 1,649,803 1,577,032 1,334,027

Cash and cash equivalents at end of reporting period 14,561 14,561 14,561 14,561 14,561 (a) Special accounts expense.



55

Table 3.10: Administered capital budget statement (for the period ended 30 June) 2015-16


2016-17Budget

$'000


$'000


$'000


$'000

NEW CAPITAL APPROPRIATIONSCapital budget - Bill 1 (ACB) 252 250 255 259 260

Total new capital appropriations 252 250 255 259 260Provided for:

Purchase of non-financial assets 252 250 255 259 260

Total items 252 250 255 259 260PURCHASE OF NON-FINANCIAL

ASSETSFunded by capital appropriation -

ACB (a) 252 250 255 259 260

TOTAL 252 250 255 259 260RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE

Total accrual purchases 252 250 255 259 260

Total cash used to acquire assets 252 250 255 259 260 (a) Does not include annual finance lease costs. Includes purchases from current and previous years’

Administered Capital Budgets (ACBs).



56

Table 3.11: Statement of administered asset movements

(Budget year 2016-17) Other

property, plant and

equipment$'000

Total

$'000

As at 1 July 2016Gross book value 2,421 2,421

Accumulated depreciation/amortisation and impairment (852) (852)

Opening net book balance 1,569 1,569CAPITAL ASSET ADDITIONSEstimated expenditure on new or replacement assets

By purchase - appropriation ordinary annual services (a) 250 250

Total additions 250 250Other movements

Depreciation/amortisation expense (131) (131)

Total other movements (131) (131)As at 30 June 2017

Gross book value 2,671 2,671

Accumulated depreciation/amortisation and impairment (983) (983)

Closing net book balance 1,688 1,688 (a) ‘Appropriation ordinary annual services’ refers to funding provided through Appropriation Bill (No. 1)

2015-16 for depreciation/amortisation expenses, ACBs or other operational expenses.


57

Aboriginal Hostels Limited


59

ABORIGINAL HOSTELS LIMITED




1.3 Budget measures ......................................................................................... 63






AHL Budget Statements

61

ABORIGINAL HOSTELS LIMITED



Aboriginal Hostels Limited (AHL) is an Australian Government company established under 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 2016-17 AHL will continue to:

be an integral provider of, and primary 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

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

sustainably manage and maintain its property portfolio

be agile to respond to challenges, trends and opportunities that support Government priorities, ongoing business efficiency and operate sustainably

pursue best practice in workplace health and safety.


62


Table 1.1 shows the total funding from all sources available to AHL for its operations and to deliver programs and services on behalf of the government.



Information in this table is presented on a resourcing (i.e. appropriations/cash available) basis, whilst the ‘Budgeted expenses by Outcome 1’ tables in Section 2 and the financial statements in Section 3 are presented on an accrual basis.

Table 1.1: AHL resource statement — Budget estimates for 2016-17 as at Budget May 2016

2015-16 estimated

actual$'000

2016-17 estimate

$'000

Opening balance/cash reserves at 1 July 18,570 24,241Funds from Government


Outcome 1 37,582 37,075Total annual appropriations 37,582 37,075Amounts received from related entities (b)

Prime Minister and Cabinet (PM&C) 2,400 2,400Northern Territory Government 2,314 2,314

Total amounts received from related entities 4,714 4,714Total funds from Government 42,296 41,789Funds from other sources

Interest 401 514Sale of goods and services 14,643 15,463Other 1,607 36

Total funds from other sources 16,651 16,013Total net resourcing for AHL 77,517 82,043

2015-16 2016-17Average staffing level (number) 402 411 Please note: All figures shown above are GST exclusive – these may not match figures in the cash flow statement.


(b) Funding provided by a government entity that is not specified within the Annual Appropriation Bills as a payment to that corporate entity.

AHL is not directly appropriated as it is a Commonwealth company. Appropriations are made to non-corporate Commonwealth entity PM&C, which are then paid to AHL and are considered ‘departmental’ for all purposes.


63

1.3 BUDGET MEASURES

AHL has no budget measures in the 2016-17 Budget.


64




Note:



65


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.

Budgeted expenses for Outcome 1

This table shows how much AHL intends to spend (on an accrual basis) on achieving the outcome, broken down by program, as well as by Departmental funding sources.


2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000

Revenue from GovernmentOrdinary annual services (Appropriation Bill No. 1) 37,582 37,075 37,196 37,363 37,727Payment from related entities 4,714 4,714 4,714 4,714 4,714

Revenues from other independent sources 16,651 16,013 15,680 15,799 15,918Total expenses for Outcome 1 58,947 57,802 57,590 57,876 58,359

2015-16 2016-17Average staffing level (number) 402 411

Program 1.1: Company Operated Hostels

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.



66


Table 2.1.2 below details the performance criteria for each program associated with Outcome 1. It also summarises how each program is delivered and where 2016-17 Budget measures have created new programs or materially changed existing programs.

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.

Program 1.1 – The objective of this program is to provide temporary accommodation for Indigenous Australians who must live away from home to access services and economic opportunity.

Delivery Deliver a network of accommodation services across Australia that provide special purpose accommodation for Aboriginal and Torres Strait Islander people.



2015-16

(Estimated actual)

Occupancy level as a percentage of resident bed nights available per annum.

70%.

2016-17 Occupancy level as a percentage of resident bed nights available per annum.

70%.

2017-18 and beyond Occupancy level as a percentage of resident bed nights available per annum.

70%.

Purpose (a) To provide or facilitate safe, culturally appropriate and affordable accommodation for Indigenous Australians who must live away from home to access services, in particular education and economic opportunity.

(a) Refers to updated purposes that will be reflected in the 2016-17 Corporate Plan.


67





Table 3.2.1 recognises the full year revenue for 2015–16 on the basis of accrual accounting principles. However the impact of complying with Australian Accounting Standard 1004 Contributions, is that revenue received from other Commonwealth entities is to be recognised in the year when the funding is due and received, which is not necessarily the year that the funding is spent. This means that for any third party contract where revenue is received in a different year to the actual spend of expenditure, this will result in an overall operating loss for AHL.

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



Employee benefits have decreased in the Budget year due to the divestment of five Company owned accommodation facilities in 2014-15 and the expiry of AHL’s contract with Northern Territory Government to operate an accommodation facility in Alice Springs beyond 30 June 2015.

All funding agreements under Program 1.2 (Community Operated Hostels) lapsed on 31 December 2014.


Funds received from the divestment of Company owned accommodation facilities are held in cash reserves identified for use specifically for capital re-investment and strategic investment where there is unmet demand.


68



2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000

EXPENSESEmployee benefits 30,932 31,093 31,097 31,100 31,104Suppliers 20,672 21,569 21,803 22,086 22,565Depreciation and amortisation 4,264 4,542 4,542 4,542 4,542Other expenses 638 598 598 598 598


Sale of goods and rendering of services 14,643 15,463 15,580 15,699 15,818Interest 401 514 514 514 514Other 4,884 4,750 4,750 4,750 4,750


Sale of assets 1,887 - - - -Total gains 1,887 - - - -Total own-source income 21,815 20,727 20,844 20,963 21,082Net (cost of)/contribution by services (34,691) (37,075) (37,196) (37,363) (37,727) Revenue from Government 37,582 37,075 37,196 37,363 37,727Surplus/(deficit) attributable to the Australian Government 2,891 - - - - Prepared on Australian Accounting Standards basis.


69



2016-17Budget

$'000


$'000


$'000


$'000


Cash and cash equivalents 24,241 25,827 23,407 20,903 21,847Trade and other receivables 1,101 1,001 901 870 870


Land and buildings 125,608 124,029 126,005 127,882 126,259Property, plant and equipment 2,888 3,904 4,900 5,952 7,004Intangibles 364 440 491 585 679Other non-financial assets 1,496 1,481 1,466 1,451 1,436

Total non-financial assets 130,356 129,854 132,862 135,870 135,378 Total assets 155,698 156,682 157,170 157,643 158,095 LIABILITIESPayables

Suppliers 1,600 1,656 1,691 1,710 1,710Other payables 466 423 380 337 294


Employee provisions 4,397 5,368 5,864 6,361 6,856Total provisions 4,397 5,368 5,864 6,361 6,856 Total liabilities 6,463 7,447 7,935 8,408 8,860 Net assets 149,235 149,235 149,235 149,235 149,235 EQUITY*


Total equity 149,235 149,235 149,235 149,235 149,235* ‘Equity’ is the residual interest in assets after deduction of liabilities.



70


Retained earnings

$'000

Asset revaluation

reserve$'000

Contributed equity/ capital$'000

Total equity

$'000



Surplus/(deficit) for the period - - - -Total comprehensive income - - - -

Estimated closing balance as at 30 June 2017 (1,173) 56,165 94,243 149,235

Closing balance attributable to the Australian Government (1,173) 56,165 94,243 149,235



71


2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000


Appropriations 37,582 37,075 37,196 37,363 37,727

Sale of goods and rendering of services 14,572 15,556 15,673 15,723 15,811Interest 401 514 514 514 514Net GST received 1,309 1,616 1,642 1,672 1,722Other 5,273 5,101 5,101 5,101 5,101



Total cash used 54,109 53,786 54,546 54,877 55,431Net cash from/(used by) operating activities 5,028 6,076 5,580 5,496 5,444INVESTING ACTIVITIESCash received

Proceeds from sales of property, plant and equipment 6,569 - - - -

Total cash received 6,569 - - - -Cash used


Total cash used 5,926 4,490 8,000 8,000 4,500Net cash from/(used by) investing activities 643 (4,490) (8,000) (8,000) (4,500)FINANCING ACTIVITIESNet increase/(decrease) in cash held 5,671 1,586 (2,420) (2,504) 944


Cash and cash equivalents at the end of the reporting period 24,241 25,827 23,407 20,903 21,847 Prepared on Australian Accounting Standards basis.


72



2016-17Budget

$'000


$'000


$'000


$'000

PURCHASE OF NON-FINANCIAL ASSETS


resources (a) 5,926 4,490 8,000 8,000 4,500

TOTAL 5,926 4,490 8,000 8,000 4,500

RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE

Total purchases 5,926 4,490 8,000 8,000 4,500

Total cash used to acquire assets 5,926 4,490 8,000 8,000 4,500 (a) Includes the following sources of funding:

-current Bill 1 and prior year Act 1/3/5 appropriations (excluding amounts from the DCB);

- donations and contributions;

- gifts;

- internally developed assets;

- s 74 Retained revenue receipts;

- proceeds from the sale of assets.



73


$'000

Buildings

$'000


equipment$'000

Heritage and

cultural

$'000

Computer software

and intangibles

$'000

Total

$'000

As at 1 July 2016Gross book value 38,570 91,528 4,380 1,511 753 136,742Accumulated depreciation/amortisation and impairment - (4,490) (1,492) (15) (389) (6,386)

Opening net book balance 38,570 87,038 2,888 1,496 364 130,356Capital asset additions

Estimated expenditure on new or replacement assetsBy purchase - appropriation ordinary

annual services (a) - 2,613 1,762 - 115 4,490Total additions - 2,613 1,762 - 115 4,490Other movementsDepreciation/amortisation expense - (3,742) (746) (15) (39) (4,542)

Disposals (b) - (450) - - - (450)Total other movements - (4,192) (746) (15) (39) (4,992)

As at 30 June 2017Gross book value 38,570 93,691 6,142 1,511 868 140,782Accumulated depreciation/ amortisation and impairment - (8,232) (2,238) (30) (428) (10,928)

Closing net book balance 38,570 85,459 3,904 1,481 440 129,854 (a) 'Appropriation ordinary annual services' refers to funding provided through Appropriation Bill (No.1)

2016-17 for depreciation/amortisation expenses, DCBs or other operational expenses.

(b) Disposals refers to disposals of components of building due to obsolescence.


75

Australian National Audit Office


77

AUSTRALIAN NATIONAL AUDIT OFFICE




1.3 Budget measures ......................................................................................... 82






ANAO Budget Statements

79

AUSTRALIAN NATIONAL AUDIT OFFICE



The Australian National Audit Office’s (ANAO) purpose is to improve public sector performance and support accountability and transparency in the Australian Government sector through independent reporting to Parliament, the Executive and the public. The Auditor-General is an independent officer of the Australian Parliament whose responsibilities are set out in the Auditor-General Act 1997. In delivering against this mandate, the Auditor-General is assisted by the ANAO.

The ANAO delivers a range of audit and related services that include:

annual financial statements audits and assurance reviews of Australian Government entities

performance audits and audits of performance measures of Australian Government programs and entities

sharing information and expertise, including the publication of better practice guides.

Four key focus areas provide the framework for the ANAO’s strategies to deliver on its purpose:

being independent and responsive in the relationship with Parliament and parliamentary committees, and with public sector entities

providing value-adding services such as insights and better practice

ensuring capability to deliver world class services

ensuring confidence in the delivery of services, which represent value for money.

In 2016-17, key capabilities identified to invest in are:

leadership to drive an innovative and professional audit practice and to build strong relationships

contemporary communication capability to provide accessible engaging audit reports that are highly valued by the Parliament, stakeholders and entities

advanced information and analytics capability to enable the delivery of high quality and high impact audit findings

new models of audit service delivery that demonstrate value for money and provide a program of audit services that remain relevant and effective.


80


Table 1.1 shows the total funding from all sources available to ANAO for its operations and to deliver programs and services on behalf of the government.



Information in this table is presented on a resourcing (i.e. appropriations/cash available) basis, whilst the ‘Budgeted expenses by Outcome 1’ table in Section 2 and the financial statements in Section 3 are presented on an accrual basis.

The ANAO charges an audit fee for the financial statement audits of corporate Commonwealth entities, companies and their subsidiaries subject to the Public Governance, Performance and Accountability Act 2013. These fees are based on a scale determined by the Auditor-General under section 14 of the Auditor-General Act 1997, and are 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 3.7 (Schedule of budgeted income and expenses administered on behalf of Government) and Table 3.9 (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 3.1 (Comprehensive income statement).


81

Table 1.1: ANAO resource statement — Budget estimates for 2016-17 as at Budget May 2016

2015-16 Estimated

actual $'000

2016-17 Estimate

$'000

DepartmentalAnnual appropriations - ordinary annual services (a)

Prior year appropriations available 37,188 36,625Departmental appropriation 72,086 72,143s74 retained revenue receipts (b) 3,800 4,000Departmental capital budget (c) 1,001 991


Equity injection - 150Total departmental annual appropriations 114,075 113,909Total departmental special appropriations (e)

644 720Total departmental resourcing 114,719 114,629Total resourcing for ANAO 114,719 114,629


(a) Appropriation Bill (No.1) 2016-17.


(c) Departmental capital budgets are not separately identified in Appropriation Bill (No.1) and form part of ordinary annual services items. Please refer to Table 3.5 for further details. For accounting purposes, this amount has been designated as a 'contribution by owner’.

(d) Appropriation Bill (No. 2) 2016-17.

(e) For further information on special appropriations and special accounts, please refer to Budget Paper No. 4 - Agency Resourcing. Please also see Table 2.1.1 for further information on outcome and program expenses broken down by various funding sources, e.g. annual appropriations, special appropriations and special accounts.


82

1.3 BUDGET MEASURES

ANAO has no budget measures in the 2016-17 Budget.


83



The ANAO has one outcome, which is described below together with its related programs. The following provides detailed information on expenses for each outcome and program, further broken down by funding source.

Note:



84


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

This table shows how much ANAO intends to spend (on an accrual basis) on achieving the outcome, broken down by program, as well as by Administered and Departmental funding sources.


2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000


s74 Retained revenue receipts (a) 2,789 2,974 2,974 2,974 2,974Special appropriations

Auditor-General remuneration and expense - Auditor-General Act 1997 Schedule 1, sections 3 and 7 322 360 379 399 420Expenses not requiring appropriation

in the Budget year (b) 1,015 1,005 1,007 578 520Departmental total 46,974 47,452 47,041 46,743 46,891

Total expenses for program 1.1 46,974 47,452 47,041 46,743 46,891

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

Program 1.1: Assurance Audit Services



85



s74 Retained revenue receipts (a) 1,011 1,026 1,026 1,026 1,026Special appropriations

Auditor-General remuneration and expense - Auditor-General Act 1997 Schedule 1, sections 3 and 7 322 360 378 398 419Expenses not requiring appropriation

in the Budget year (b) 890 881 884 470 445Departmental total 31,461 31,297 30,776 30,471 30,568

Total expenses for program 1.2 31,461 31,297 30,776 30,471 30,568


s74 Retained revenue receipts (a) 3,800 4,000 4,000 4,000 4,000Special appropriations 644 720 757 797 839

Expenses not requiring appropriation

in the Budget year (b) 1,905 1,886 1,891 1,048 965Departmental total 78,435 78,749 77,817 77,214 77,459



Program 1.2: Performance Audit Services


(a) Estimated expenses incurred in relation to receipts retained under section 74 of the PGPA Act 2013.

(b) Expenses not requiring appropriation in the Budget year are made up of depreciation expenses and amortisation expenses.



86

Table 2.1.2: Performance criteria for Outcome 1 Table 2.1.2 below details the performance criteria for each program associated with Outcome 1. It also summarises how each program is delivered and where 2016-17 Budget measures have created new programs or materially changed existing programs.

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

Program 1.1 – Assurance Audit Services

This program contributes to the outcome through:

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

contributing to improvements in the financial administration of Australian Government entities

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

Delivery Providing independent assurance to the Parliament by:

issuing financial statement audit opinions to the Australian Government and its controlled entities

issuing other assurance reports, including the Defence Major Projects Review preparing and producing financial statement related reports

undertaking engagements that contribute to public sector auditing and support developing nations.



2015-16 Provide independent assurance to the Parliament, the Executive and the public on the fair presentation of financial statements for all Australian Government and its controlled entities

Continue to prepare and produce other assurance reports, including the Defence Major Projects Review

Table two financial statement related reports in Parliament

Continue undertaking engagements that contribute to public sector auditing and support developing nations.

256 financial statement audit opinions to be issued (against a target of 250)

48 other assurance reports, including the Defence Major Projects Review, to be issued (against a target of 45)

Two financial statement related reports to be presented to Parliament (against a target of two)

Undertake 20 engagements that contribute to public sector auditing and support developing nations (against a target of 20)

80%* 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 (against a target of 90%)

100% of Australian Government entities are provided with an audit opinion for tabling in Parliament (against a target of 100%)

95%* of Australian Government entities acknowledge the value added by ANAO services (against a target of 90%).

*Based on the ANAO parliamentary survey completed during 2014-15.



87

Table 2.1.2: Performance criteria for Outcome 1 (continued)


2016-17 Provide independent assurance to the Parliament, the Executive and the public on the fair presentation of financial statements for all Australian Government and its controlled entities

Continue to prepare and produce other assurance reports, including the Defence Major Projects Review

Table two financial statement related reports in Parliament


250 financial statement audit opinions to be issued

45 other assurance reports, including the Defence Major Projects Review to be issued

Two financial statement related reports to be presented to Parliament

Undertake 20 engagements that contribute to public sector auditing and support for developing nations

90% 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

100% of Australian Government entities are provided with an audit opinion for tabling in Parliament

90% of Australian Government entities acknowledge the value added by ANAO services

90% of Australian Government entities acknowledge staff knowledge of their business and operating context is improving year on year

90% of Audit Committee members acknowledge the value added by ANAO audit services

The ANAO independent QA Program indicates that audit conclusions are appropriately supported and that the ANAO quality assurance framework is operating effectively.

2017-18 and beyond

As per 2016-17. As per 2016-17.

Purpose(a) To improve public sector performance and support accountability and transparency in the Australian Government sector through independent reporting to Parliament, the Executive and the public.




88


Program 1.2 – Performance Audit Services

This program contributes to the outcome through:

reporting objectively on the performance of Australian Government programs and entities, including opportunities for improvement, by undertaking a program of independent performance audits and related reports for the information of Parliament, the Executive and the public

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

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

Delivery Improving public sector performance by:

providing performance audit reports for the information of Parliament, the Executive and the public

preparing Better Practice Guides and other reports

attending and preparing submissions to Parliamentary committees

undertaking engagements that contribute to public sector auditing and support developing nations.



2015-16 Provide objective reports to the Parliament, the Executive and the public on the performance of Australian Government programs and entities, including opportunities for improvement

Continue contributing to improvements in Australian Government administration by identifying and promoting better practice. This includes the preparation of Better Practice Guides and other reports, attending and preparing submissions to Parliamentary committees


49 performance audit reports to be produced for the information of Parliament, the Executive and the public (against a target of 49)

3 Better Practice Guides and other reports to be produced (against a target of 3)

Appearances and submissions to Parliamentary committees –20 (against a target of 20)

Undertake 20 engagements that contribute to public sector auditing and support developing nations (against a target of 20)

88%* of Parliamentarians surveyed expressing satisfaction with ANAO services directed towards improving Australian Government administration (against a target of 90%)

98% of recommendations included in performance audit reports agreed by audited entities (against a target of 90%)

84%* of Australian Government entities acknowledge the value added by ANAO services (against a target of 90%).

*Based on the ANAO parliamentary survey completed during 2014-15.



89




2016-17 Provide objective reports to the Parliament, the Executive and the public on the performance of Australian Government programs and entities, including opportunities for improvement

Continue contributing to improvements in Australian Government administration by identifying and promoting better practice. This includes the preparation of Better Practice Guides and other reports, attending and preparing submissions to Parliamentary committees


48 performance audit reports to be produced for the information of Parliament, the Executive and the public

3 Better Practice Guides and other reports to be produced

Appearances and submissions to Parliamentary committees - 20

Undertake 20 engagements that contribute to public sector auditing and support developing nations

90% of Parliamentarians surveyed expressing satisfaction with ANAO services directed towards improving Australian Government administration

90% of recommendations included in performance audit reports agreed by audited entities

90% of Australian Government entities acknowledge the value added by ANAO services

90% of Audit Committee members acknowledge the value added by ANAO audit services

The ANAO independent QA Program indicates that audit conclusions are appropriately supported and that the ANAO quality assurance framework is operating effectively.

2017-18 and beyond

As per 2016-17. As per 2016-17.

Purpose(a) To improve public sector performance and support accountability and transparency in the Australian Government sector through independent reporting to Parliament, the Executive and the public.



90





The entity resource statement (Table 1.1) provides a consolidated view of all the resources available to an entity in 2016-17. 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 3.1) shows the operating appropriation provided in 2016-17.


Departmental

Comprehensive income statement

Total income in 2016-17 is budgeted at $76.8 million (2015-16 $76.5 million). Revenue from Government (appropriation funding) has slightly increased to $72.8 million (2015-16 $72.7 million) due to increases from new budget measures (Table 1.2) being offset by funding reductions arising from efficiency dividends and other savings measures.

Other revenue is expected to be $4.0 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 $2.2 million for ‘audits by arrangement’ under section 20(2) of the Auditor-General Act 1997 and building sublease income.

Operating expenses for 2016-17 are estimated to total $78.7 million (2015-16: $78.4 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 2016-17 and the total assets and liabilities values are expected to remain stable.


91

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.

Capital budget statement

The departmental capital budget statement shows the expected capital works program for the current and forward years. Total capital expenditure in 2016-17 is estimated to be $1.1 million. In addition, the ANAO forecasts spending a further $3.0 million on capital works 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 entities 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.


92



2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000

EXPENSESEmployee benefits 43,409 45,774 44,785 44,818 44,878Suppliers 33,121 31,089 31,141 31,348 31,616Depreciation and amortisation 1,905 1,886 1,891 1,048 965



Total own-source revenue 3,800 4,000 4,000 4,000 4,000Total own-source income 3,800 4,000 4,000 4,000 4,000Net (cost of)/contribution by services (74,635) (74,749) (73,817) (73,214) (73,459)

Revenue from Government 72,730 72,863 71,926 72,166 72,494Surplus/(deficit) attributable to the Australian Government (1,905) (1,886) (1,891) (1,048) (965)Total comprehensive income/(loss) attributable to the Australian (1,905) (1,886) (1,891) (1,048) (965)


$'0002016-17

$'0002017-18

$'0002018-19

$'0002019-20



appropriations (a) 1,905 1,886 1,891 1,048 965

Total comprehensive income/(loss) - as per the statement of comprehensive income (1,905) (1,886) (1,891) (1,048) (965)

(a) From 2010-11, the Government introduced net cash appropriation arrangements where Bill 1 revenue appropriations for the depreciation/amortisation expenses of non-corporate Commonwealth entities (and select corporate Commonwealth entities) 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 3.5 Departmental Capital Budget Statement.


93



2016-17Budget

$'000


$'000


$'000


$'000


Cash and cash equivalents 664 664 664 664 664Trade and other receivables 38,121 37,923 37,725 37,682 37,682Other financial assets 229 229 229 229 229


Land and buildings 1,825 935 45 2 2Property, plant and equipment 1,524 1,461 1,569 1,338 1,437Intangibles 1,199 1,407 1,292 1,515 1,452Other non-financial assets 902 902 902 902 902


Suppliers 2,298 2,298 2,298 2,298 2,298Other payables 1,600 1,600 1,600 1,600 1,600


Employee provisions 14,578 14,578 14,578 14,578 14,578Other provisions 440 242 44 1 1


Contributed equity 11,586 12,727 13,721 14,718 15,719Reserves 564 564 564 564 564

Retained surplus/(accumulated deficit) 13,398 11,512 9,621 8,573 7,608

Total equity 25,548 24,803 23,906 23,855 23,891 * ‘Equity’ is the residual interest in assets after deduction of liabilities.



94


Retained earnings

$'000

Asset revaluation

reserve$'000


Total equity

$'000

Opening balance as at 1 July 2016Balance carried forward from previous period 13,398 564 11,586 25,548

Adjusted opening balance 13,398 564 11,586 25,548Comprehensive income

Surplus/(deficit) for the period (1,886) - - (1,886)Total comprehensive income (1,886) - - (1,886)Transactions with owners

Contributions by ownersEquity injection - Appropriation - - 150 150

Departmental capital budget (DCB) - - 991 991

Sub-total transactions with owners - - 1,141 1,141

Estimated closing balance as at 30 June 2017 11,512 564 12,727 24,803

Closing balance attributable to the Australian Government 11,512 564 12,727 24,803 Prepared on Australian Accounting Standards basis.


95


2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000


Appropriations 73,293 73,062 72,124 72,209 72,494Rendering of services 3,800 4,000 4,000 4,000 4,000



Total cash used 76,728 77,062 76,124 76,209 76,494Net cash from/(used by) operating activities 365 - - - -INVESTING ACTIVITIESCash used

Purchase of property, plant and equipment and intangibles 1,366 1,141 994 997 1,001

Total cash used 1,366 1,141 994 997 1,001Net cash from/(used by) investing activities (1,366) (1,141) (994) (997) (1,001)FINANCING ACTIVITIESCash received

Contributed equity 1,001 1,141 994 997 1,001Total cash received 1,001 1,141 994 997 1,001Net cash from/(used by) financing activities 1,001 1,141 994 997 1,001Net increase/(decrease) in cash held - - - - -

Cash and cash equivalents at the beginning of the reporting period 664 664 664 664 664

Cash and cash equivalents at the end of the reporting period 664 664 664 664 664 Prepared on Australian Accounting Standards basis.


96



2016-17Budget

$'000


$'000


$'000


$'000

NEW CAPITAL APPROPRIATIONSCapital budget - Bill 1 (DCB) 1,001 991 994 997 1,001

Equity injections - Bill 2 - 150 - - -

Total new capital appropriations 1,001 1,141 994 997 1,001

Provided for:Purchase of non-financial assets 1,001 1,141 994 997 1,001

Total items 1,001 1,141 994 997 1,001


Funded by capital appropriations (a) - 150 - - -


DCB (b) 1,366 991 994 997 1,001

TOTAL 1,366 1,141 994 997 1,001


Total purchases 1,366 1,141 994 997 1,001

Total cash used to acquire assets 1,366 1,141 994 997 1,001 (a) Includes both current Bill 2 and prior Act 2/4/6 appropriations and special capital appropriations.




97

Table 3.6: Statement of asset movements (Budget year 2016-17) Buildings

$'000


equipment$'000


intangibles$'000

Total

$'000

As at 1 July 2016Gross book value 5,379 3,278 6,057 14,714Accumulated depreciation/amortisation and impairment (3,554) (1,754) (4,858) (10,166)

Opening net book balance 1,825 1,524 1,199 4,548Capital asset additions

Estimated expenditure on new or replacement assets

By purchase - appropriation equity (a) - - 150 150By purchase - appropriation ordinary

annual services (b) - 496 495 991Total additions - 496 645 1,141Other movements Depreciation/amortisation expense (890) (559) (437) (1,886)Total other movements (890) (559) (437) (1,886)

As at 30 June 2017Gross book value 5,379 3,774 6,702 15,855Accumulated depreciation/ amortisation and impairment (4,444) (2,313) (5,295) (12,052)

Closing net book balance 935 1,461 1,407 3,803 (a) 'Appropriation equity' refers to equity injections appropriations provided through Appropriation Bill (No. 2)

2016-17, including CDABs.

(b) ‘Appropriation ordinary annual services’ refers to funding provided through Appropriation Bill (No. 1) 2015-16 for depreciation/amortisation expenses, DCBs or other operational expenses.



98


2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000

OWN-SOURCE INCOME Non-taxation revenue Sale of goods and rendering of services 12,300 12,300 12,300 12,300 12,300Total non-taxation revenue 12,300 12,300 12,300 12,300 12,300Total own-source revenue administered on behalf of Government 12,300 12,300 12,300 12,300 12,300

Total own-sourced income administered on behalf of Government 12,300 12,300 12,300 12,300 12,300Net cost of/(contribution by) services (12,300) (12,300) (12,300) (12,300) (12,300)Total comprehensive income/(loss) (12,300) (12,300) (12,300) (12,300) (12,300) Prepared on Australian Accounting Standards basis.


99


2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000


Cash and cash equivalents 103 103 103 103 103Trade and other receivables 4,297 4,297 4,297 4,297 4,297Other financial assets 2,009 2,009 2,009 2,009 2,009

Total financial assets 6,409 6,409 6,409 6,409 6,409Total assets administered on behalf of Government 6,409 6,409 6,409 6,409 6,409LIABILITIESPayables

Other payables 391 391 391 391 391Total payables 391 391 391 391 391Total liabilities administered on behalf of Government 391 391 391 391 391Net assets/(liabilities) 6,018 6,018 6,018 6,018 6,018 Prepared on Australian Accounting Standards basis.


100

Table 3.9: Schedule of budgeted administered cash flows (for the period ended 30 June)

2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000


Sales of goods and rendering of services 12,300 12,300 12,300 12,300 12,300

Total cash received 12,300 12,300 12,300 12,300 12,300Net cash from/(used by) operating activities 12,300 12,300 12,300 12,300 12,300Net increase/(decrease) in cash held 12,300 12,300 12,300 12,300 12,300

Cash and cash equivalents at beginning of reporting period 103 103 103 103 103

Cash to Official Public Account for:- Transfers to other entities (Finance - Whole of Government) (12,300) (12,300) (12,300) (12,300) (12,300)

Total cash to Official Public Account (12,300) (12,300) (12,300) (12,300) (12,300)Cash and cash equivalents at end of reporting period 103 103 103 103 103 Prepared on Australian Accounting Standards basis.

101

Australian Public Service Commission


103

AUSTRALIAN PUBLIC SERVICE COMMISSION

Section 1: Entity overview and resources ............................................................ 105

1.1 Strategic direction statement ...................................................................... 105

1.2 Entity resource statement ........................................................................... 106

1.3 Budget measures ....................................................................................... 108

Section 2: Outcomes and planned performance .................................................. 109

2.1 Budgeted expenses and performance for Outcome 1................................. 110

Section 3: Budgeted financial statements ............................................................ 115

3.1 Budgeted financial statements .................................................................... 115

3.2.1 Budgeted financial statements tables ......................................................... 117

APSC Budget Statements

105

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 and performance monitoring on workforce management strategies. The APSC also supports the Australian Public Service Commissioner and the Merit Protection Commissioner to undertake statutory functions under the Public Service Act 1999, including functions to uphold high standards of integrity and conduct in the APS and to review employment decisions.

In 2016-17 the APSC will focus on its strategic priorities. These priorities reflect APSC’s statutory responsibilities, and are consistent with supporting frameworks for a modern and flexible workforce.


106


Table 1.1 shows the total funding from all sources available to APSC for its operations and to deliver programs and services on behalf of the government.





107

Table 1.1: APSC resource statement — Budget estimates for 2016-17 as at Budget May 2016

2015-16 Estimated

actual $'000

2016-17 Estimate

$'000

Departmental


Prior year appropriations available (b) 26,407 25,607Departmental appropriation 20,638 20,341

s 74 retained revenue receipts (c) 20,428 19,830

Departmental capital budget (d) 417 567Total departmental annual appropriations 67,890 66,345Total departmental resourcing 67,890 66,345Administered

Total administered special appropriations (e)63,141 64,404

Total administered resourcing 63,141 64,404Total resourcing for APSC 131,031 130,749


Third party payments from and on behalf of other entities 2015-16

Estimated actual $'000

2016-17 Estimate

$'000

Payments made by other entities on behalf of APSC (disclosed above)

Remuneration Tribunal Act 1973 63,141 64,404 Please note: All figures shown above are GST exclusive – these may not match figures in the cash flow statement.


(b) Estimated balance carried forward from previous year.

(c) Estimated retained revenue receipts under section 74 of the PGPA Act 2013.

(d) Departmental capital budgets are not separately identified in Appropriation Bill (No.1) and form part of ordinary annual services items. Please refer to Table 3.5 for further details. For accounting purposes, this amount has been designated as a 'contribution by owner’.

(e) For further information on special appropriations and special accounts, please refer to Budget Paper No. 4 - Agency Resourcing. Please also see Table 2.1 for further information on outcome and program expenses broken down by various funding sources, e.g. annual appropriations, special appropriations and special accounts.


108

1.3 BUDGET MEASURES

APSC has no budget measures in the 2016-17 Budget


109




Note:



110


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.


This table shows how much the APSC intends to spend (on an accrual basis) on achieving the outcome, broken down by program, as well as by Administered and Departmental funding sources.


2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000


s 74 Retained revenue receipts (a) 20,428 19,830 19,654 19,789 19,922Expenses not requiring appropriation in the



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.

Program 1.1: Australian Public Service Commission




111



2016-17Budget

$'000


$'000


$'000


$'000

Administered expensesSpecial appropriations

Remuneration Tribunal Act 1973 63,141 64,404 65,692 67,006 68,212Administered total 63,141 64,404 65,692 67,006 68,212


Administered expensesSpecial appropriations 63,141 64,404 65,692 67,006 68,212

Administered total 63,141 64,404 65,692 67,006 68,212Departmental expenses

Departmental appropriation 20,638 20,341 20,398 20,516 20,776

s74 Retained revenue receipts (a) 20,428 19,830 19,654 19,789 19,922Expenses not requiring appropriation in the




Program 1.2: Parliamentarians' and Judicial Office Holders' Remuneration and Entitlements



(b) Expenses not requiring appropriation in the Budget year are made up of depreciation expenses, amortisation expenses and services provided free of charge.



112



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.

Program 1.1 – Australian Public Service Commission

This program contributes to the outcome through building capacity, driving productivity and performance, streamlining processes and reducing red tape and promoting integrity and accountability among the APS.

Delivery The APSC works with entities to develop opportunities to improve productivity and efficiency and to reduce regulation.



2015-16 Provide high quality policy advice to the Government, the Minister and the Australian Public Service on matters covered by the Public Service Act 1999

Support the review, inquiry and reporting functions of the APS Commissioner and the Merit Protection Commissioner and contribute to improving the standards of decision-making and people management practices across the APS

Publish the State of the Service Report and other reports to assist in advising government and the APS.

Achieved very good level of satisfaction of the Minister, heads of entities and other clients as expressed through feedback about the quality and timeliness of services and advice provided by the APSC

[Against a target: Very good or above]

Finalised 180 reviews, excluding promotion reviews, on behalf of the Merit Protection Commissioner

[Against a target: 185 reviews]

87% of reviews conducted on behalf of the Merit Protection Commissioner were completed within published timeframes

[Against a target: 70%]

Achieved 75% of high level use of and satisfaction with the State of the Service Report and other research and evaluation reports by the SES, entities and other clients.




113

Table 2.1.2 Performance criteria for Outcome 1 (continued)


2015-16 Improve the capability of the APS through leadership and core skills development

Provide high-quality advisory and administrative support to the Remuneration Tribunal and the Defence Force Remuneration Tribunal

Expected achievement: We expect that these items will be achieved in 2015-16. For detailed information please refer to the targets column.

90% responding attendees of leadership programs agreed that they had increased their confidence to apply selected leadership practices


90% responding attendees of core skills programs agreed that they had increased their confidence to apply selected leadership practices


Achieved a very good level of satisfaction of the President of the Defence Force Remuneration Tribunal with the quality and timeliness of the services provided by the Secretariat


Achieved a very good level of satisfaction of the President of the Remuneration Tribunal with the quality and timeliness of the services provided by the Secretariat.


2016-17 Implement a contemporary APS employment framework

Work with Commonwealth employers to improve workplace relations outcomes

Improve the capability of the APS through leadership and skills development.

The APS legislative framework is streamlined and is supported by APS employment policies, guidance and products that are relevant and accessible

APSC-specific recommendations from key reviews are implemented

APS workforce management contestability review is implemented by March 2017

New enterprise agreements in place in all agencies covered by the Workplace Bargaining Policy 2015

Introduce a program during 2016 to enhance the bargaining and workplace relations capability of entity staff

Implement APS Leadership and Core Skills Strategy.

2017-18 and

beyond

As per 2016-17. As per 2016-17.



114



Program 1.2 – Parliamentarians’ and Judicial Office Holders’ Remuneration and Entitlements

This program contributes to the outcome through facilitating the payment of remuneration, allowances and entitlements to Parliamentarians’ and Judicial Office Holders.

Delivery 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 program. These payments are funded by special appropriations and we administer these special appropriations on behalf of the three departments.



2015-16 Remuneration and entitlements are processed and reported in a timely and accurate manner.

Expected achievement against criterion: Met.

99% of all variations to remuneration and entitlements are processed in a timely and accurate manner.


2016-17 Meet all requirements for the budgeting and reporting of Parliamentarians’ and Judicial Office Holders remuneration and entitlements.

Budget in the Portfolio Budget Statements and the actual result in the financial statements are prepared within required timeframes and free of material misstatements.


Purpose (a) To create a flexible, efficient and high performing APS that delivers quality outcomes for Government, business and the community.


115





The entity resource statement (Table 1.1) provides a consolidated view of all the resources available to the entity in 2016-17 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.


Departmental


In all Budget years the APSC is budgeting for a break-even operating result, adjusted for depreciation and amortisation expense. Appropriations will reduce slightly in 2016-17 due to efficiency dividends and a range of Government saving initiatives. Goods and services income will also reduce in 2016-17 as the demands for a range of APSC’s services are forecast to be low.


Cash balances are maintained at a working 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 fee for service activities. Receivables will remain constant in 2016-17 and decrease in future years to enable future asset reinvestment.

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.


116

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.


117



2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000

EXPENSESEmployee benefits 26,729 26,189 26,402 26,630 26,939Suppliers 14,257 13,876 13,551 13,577 13,662Depreciation and amortisation 1,234 1,260 1,260 1,260 1,260Finance costs 10 11 5 5 5


Sale of goods and rendering of services 20,428 19,830 19,654 19,789 19,922Resources received free of charge 42 43 44 45 46


Revenue from Government 20,638 20,341 20,398 20,516 20,776Surplus/(deficit) attributable to the Australian Government (1,122) (1,122) (1,122) (1,122) (1,122)


$'0002016-17

$'0002017-18

$'0002018-19

$'0002019-20



appropriations (a) 1,122 1,122 1,122 1,122 1,122

Total comprehensive income/(loss) - as per the statement of comprehensive income (1,122) (1,122) (1,122) (1,122) (1,122)




118



2016-17Budget

$'000


$'000


$'000


$'000


Cash and cash equivalents 450 450 450 450 450Trade and other receivables 27,541 26,772 25,901 25,189 24,401


Land and buildings 1,728 1,506 1,284 1,049 798Property, plant and equipment 996 751 756 612 533Intangibles 902 1,316 1,170 1,191 1,167Inventories 39 39 39 39 39Prepayments made 463 463 463 463 463


Suppliers 6,788 6,673 6,455 6,170 5,809Lease incentives 600 437 339 247 155Prepayments received 7,377 7,377 7,377 7,377 7,377


Employee provisions 6,876 6,876 6,876 6,876 6,876Provision for restoration obligations 401 412 194 199 204


Contributed equity 1,208 1,775 2,197 2,621 3,049Reserves 1,204 1,204 1,204 1,204 1,204Retained surplus (accumulated deficit) 7,665 6,543 5,421 4,299 3,177




119


Retained earnings

$'000

Asset revaluation

reserve$'000


Total equity

$'000

Opening balance as at 1 July 2016Balance carried forward from previous period 7,665 1,204 1,208 10,077

Comprehensive incomeSurplus/(deficit) for the period (1,122) - - (1,122)

Total comprehensive income (1,122) - - (1,122)Transactions with owners

Contributions by ownersDepartmental capital budget (DCB) - - 567 567

Sub-total transactions with owners - - 567 567

Estimated closing balance as at 30 June 2017 6,543 1,204 1,775 9,522

Closing balance attributable to the Australian Government 6,543 1,204 1,775 9,522 Prepared on Australian Accounting Standards basis.


120


2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000


Appropriations 20,638 20,341 20,398 20,516 20,776

Sale of goods and rendering of services 20,428 19,830 19,654 19,789 19,922Net GST received 1,535 2,263 2,339 2,160 2,245



Total cash used 42,869 41,794 41,693 41,987 42,465Net cash from/(used by) operating activities (268) 640 698 478 478INVESTING ACTIVITIESCash used

Purchase of property, plant and equipment and intangibles 1,081 1,207 897 902 906Other - - 223 - -

Total cash used 1,081 1,207 1,120 902 906Net cash from/(used by) investing activities (1,081) (1,207) (1,120) (902) (906)FINANCING ACTIVITIESCash received

Contributed equity 417 567 422 424 428Total cash received 417 567 422 424 428Net cash from/(used by) financing activities 417 567 422 424 428Net increase/(decrease) in cash held (932) - - - -

Cash and cash equivalents at the beginning of the reporting period 1,382 450 450 450 450



121



2016-17Budget

$'000


$'000


$'000


$'000

NEW CAPITAL APPROPRIATIONSCapital budget - Bill 1 (DCB) 417 567 422 424 428



Other Items - - 223 - -

Total items 417 567 422 424 428PURCHASE OF NON-FINANCIAL ASSETS


DCB (a) 417 567 199 424 428


resources (b) 664 640 698 478 478

TOTAL 1,081 1,207 897 902 906RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE

Total purchases 1,081 1,207 897 902 906

Total cash used to acquire assets 1,081 1,207 897 902 906 (a) Includes both current Bill 2 and prior Act 2/4/6 appropriations and special capital appropriations.




122


$'000


equipment$'000


intangibles$'000

Total

$'000

As at 1 July 2016Gross book value 2,495 1,757 4,184 8,436Accumulated depreciation/amortisation and impairment (767) (761) (3,282) (4,810)

Opening net book balance 1,728 996 902 3,626Capital asset additions

Estimated expenditure on new or replacement assets By purchase - appropriation ordinary

annual services (a) 165 92 950 1,207Total additions 165 92 950 1,207Other movements

Depreciation/amortisation expense (387) (337) (536) (1,260)Total other movements (387) (337) (536) (1,260)


Closing net book balance 1,506 751 1,316 3,573 (a) ‘Appropriation ordinary annual services’ refers to funding provided through Appropriation Bill (No. 1)




123


2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000

EXPENSESEmployee benefits 63,141 64,404 65,692 67,006 68,212

Total expenses administered on behalf of Government 63,141 64,404 65,692 67,006 68,212Net (cost of)/contribution by services (63,141) (64,404) (65,692) (67,006) (68,212)Surplus/(deficit) (63,141) (64,404) (65,692) (67,006) (68,212)Total comprehensive income/(loss) (63,141) (64,404) (65,692) (67,006) (68,212) Prepared on Australian Accounting Standards basis.


124

Table 3.8: Schedule of budgeted assets and liabilities administered on behalf of Government (as at 30 June) The APSC has no assets or liabilities administered on behalf of the Government.


2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000

OPERATING ACTIVITIESCash used

Employees 63,141 64,404 65,692 67,006 68,212Total cash used 63,141 64,404 65,692 67,006 68,212Net cash from/(used by) operating activities (63,141) (64,404) (65,692) (67,006) (68,212)Net increase/(decrease) in cash held (63,141) (64,404) (65,692) (67,006) (68,212)

Cash and cash equivalents at beginning of reporting period

Cash from Official Public Account for:

- Appropriations 63,141 64,404 65,692 67,006 68,212

Total cash from Official Public Account 63,141 64,404 65,692 67,006 68,212

Cash and cash equivalents at end of reporting period - - - - - Prepared on Australian Accounting Standards basis.

125

Digital Transformation Office


127

DIGITAL TRANSFORMATION OFFICE




1.3 Budget measures ....................................................................................... 131






DTO Budget Statements

129

DIGITAL TRANSFORMATION OFFICE



The DTO’s vision is that everyone who needs to use government services should be able to find what they need to get it done quickly and easily. The DTO will deliver and assist government agencies to deliver, simpler, clearer and faster services for all.

In 2016-17, the DTO will work towards its vision by focusing on:

Delivering simpler and clearer government services and information for users, in particular through GOV.AU, an approach to the Australian government’s web presence that will ensure users get what they need from government without having to understand how government works.

Assisting agencies transform their digital services, in particular through co-working in our delivery hubs, assistance in meeting the digital service standard and public reporting against KPIs on a performance dashboard.

Removing barriers to make it easier for businesses of all sizes access government ICT contracts and supporting government to become better digital and technology buyers, in particular through the digital marketplace

Making it easier for people to prove that they are who they say they are when they access government services.

Providing leadership across the Australian government on service delivery.

Providing advice to the Minister on all service delivery proposals.

In delivering this, we will focus on ensuring:

A better experience for users

Better value for money

A more effective public service.


130


Table 1.1 shows the total funding from all sources available to DTO for its operations and to deliver programs and services on behalf of the government.



Table 1.1: DTO resource statement — Budget estimates for 2016-17 as at Budget May 2016

2015-16 Estimated

actual $'000

2016-17 Estimate

$'000

Departmental


Departmental appropriation 34,275 34,706

Departmental capital budget (b) 1,500 -Total departmental annual appropriations 35,775 34,706Total departmental resourcing 35,775 34,706Total resourcing for DTO 35,775 34,706

2015-16 2016-17Average staffing level (number) 71 74 Please note: All figures shown above are GST exclusive - these may not match figures in the cash flow statement.

(a) Appropriation Bill (no.1) 2016-17.

(b) Departmental capital budgets are not separately identified in Appropriation Bill (No.1) and form part of ordinary annual services items. Please refer to Table 3.5 for further details. For accounting purposes, this amount has been designated as a 'contribution by owner'.


131

1.3 BUDGET MEASURES

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

Table 1.2: DTO 2016-17 Budget measures


Program2015-16

$'0002016-17

$'0002017-18

$'0002018-19

$'0002019-20

$'000

Expense measuresmyGov operations 1.1

Departmental expenses 1,361 1,412 - - -Trusted Digital Identity Framework (a) 1.1

Departmental expenses - -Total 1,361 1,412 - - -Total expense measures

Departmental 1,361 1,412 - - -Total 1,361 1,412 - - -

(a) Funding for this measure has already been provided for by the Government




132




Note:



133


Outcome 1: To improve the user experience for all Australians accessing government information and services by leading the design, development and continual enhancement of whole-of-government service delivery policies and standards, platforms and joined-up services.


This table shows how much DTO intends to spend (on an accrual basis) on achieving the outcome.


2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000

Departmental expensesDepartmental appropriation 34,275 34,706 26,079 25,181 25,659Expenses not requiring appropriation in the

Budget year (a) 113 208 177 150 128Departmental total 34,388 34,914 26,256 25,331 25,787



Outcome 1: To improve the user experience for all Australians accessing government informationand services by leading the design, development and continual enhancement of whole-of-government service delivery policies and standards, platforms and joined-up services.

Program 1.1: The Digital Transformation Office

(a) Expenses not requiring appropriation in the Budget year are made up of depreciation expenses,

amortisation expenses, make good expenses, audit fees.



134


Table 2.1.2 below details the performance criteria associated with Outcome 1. It also summarises how program 1.1 is delivered and where 2016-17 Budget measures have created new programs or materially changed existing programs.

Outcome 1 – To improve the user experience for all Australians accessing government information and services by leading the design, development and continual enhancement of whole-of-government service delivery policies and standards, platforms and joined-up services.

Program 1.1 – The objective of this program is to support agency delivery of high volume services, build and contribute to whole of government platforms and increase capability of the public service to deliver digital transformation.

Delivery Supporting agency digital delivery of high volume services so that these services are simpler, clearer and faster users

Delivery of whole-of-government common platforms: GOV.AU, Identity and Digital Marketplace which can be used by the public

Supporting delivery of government-wide initiatives to join-up services

Establishing communities, developing best practices, and building a digital culture

Creating policy and standards to support consistent service transformation across government agencies

Building digital leadership and capability across government agencies.



2015-16 Improved levels of public satisfaction with government services as measured by a public digital dashboard

Increased use of common ICT platforms across government, with a resulting decline in entities developing systems for their individual use

Entities meeting the timeframes for digitising services specified in their Digital Transformation Plans

Entities adhering to the Digital Service Standard when designing new services or redesigning existing services.

Positive change in stakeholder feedback

Number of agencies using common ICT platforms has increased

90% of entities are on schedule to meet the requirement of each Digital Transformation Plan

80% of agencies adhering to the Digital Service Standard for new services.



135



2016-17 Simpler and clearer government services and information for users and consolidation of the government’s web estate

Transformation of agency digital services in delivery hubs and public reporting against KPIs on a performance dashboard

Greater access to government contracts for businesses and support for government to become better digital and technology buyers

Easier approach for users to prove their identity online when using government services.

Deliver a public beta of GOV.AU

Services meeting the Digital Service Standard will deliver improved user satisfaction, increased digital take-up, higher completion rates and/or reduced cost per transaction

Deliver an alpha and public beta of the Digital Marketplace

Deliver a Trusted Digital Identity Framework

Deliver an Identity alpha.


Purposes (a) A better experience for users

Better value for taxpayers money

A better public service, with a highly-skilled and strongly engaged modern workforce, well-equipped with digital expertise and committed to continuously improving the user experience.



136





There are no significant differences between the resource information presented in the Budget Papers and Portfolio Budget Statements as a result of differences between Australian Accounting Standards and Government Finance Statistics.


Departmental costs are projected to be approximately $35.1 million for 2016-17, split between employee expenses of $10.5 million and $24.6 million of supplier expenses.


137



2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000

EXPENSESEmployee benefits 10,332 10,487 10,644 10,804 10,966Suppliers 24,128 24,404 15,620 14,562 14,878Depreciation and amortisation 113 208 177 150 128

Total expenses 34,573 35,099 26,441 25,516 25,972LESS: OWN-SOURCE INCOMEGains

Other 185 185 185 185 185Total gains 185 185 185 185 185Total own-source income 185 185 185 185 185Net (cost of)/contribution by services (34,388) (34,914) (26,256) (25,331) (25,787)Revenue from Government 34,275 34,706 26,079 25,181 25,659Surplus/(deficit) attributable to the Australian Government (113) (208) (177) (150) (128)Total comprehensive income/(loss) attributable to the Australian Government (113) (208) (177) (150) (128)


$'0002016-17

$'0002017-18

$'0002018-19

$'0002019-20



appropriations (a) 113 208 177 150 128

Total comprehensive income/(loss) - as per the statement of comprehensive income (113) (208) (177) (150) (128)




138



2016-17Budget

$'000


$'000


$'000


$'000


Cash and cash equivalents 250 250 250 250 250Trade and other receivables 922 621 627 669 658

Total financial assets 1,172 871 877 919 908 Non-financial assets

Property, plant and equipment 1,388 1,179 1,002 852 724Other non-financial assets 204 202 157 147 149

Total non-financial assets 1,592 1,381 1,159 999 873 Total assets 2,764 2,252 2,036 1,918 1,781 LIABILITIESPayables

Suppliers 415 410 320 298 303Other payables 318 - 33 67 34

Total payables 733 410 353 365 337 Provisions

Employee provisions 1,238 1,257 1,275 1,295 1,314Total provisions 1,238 1,257 1,275 1,295 1,314 Total liabilities 1,971 1,667 1,628 1,660 1,651 Net assets 793 585 408 258 130 EQUITY*

Contributed equity 906 906 906 906 906

Retained surplus (accumulated deficit) (113) (321) (498) (648) (776)

Total equity 793 585 408 258 130 * ‘Equity’ is the residual interest in assets after deduction of liabilities.



139


Retained earnings

$'000


Total equity

$'000

Opening balance as at 1 July 2016Balance carried forward from previous period (113) 906 793

Adjusted opening balance (113) 906 793Comprehensive income

Surplus/(deficit) for the period (208) - (208)Total comprehensive income (208) - (208)

Estimated closing balance as at 30 June 2017 (321) 906 585

Closing balance attributable to the Australian Government (321) 906 585



140

Table 3.4: Budgeted departmental statement of cash flows(for the period ended 30 June)

2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000


Appropriations 33,989 34,424 25,812 24,922 25,400Net GST received 306 268 339 261 235



Total cash used 34,045 34,692 26,151 25,183 25,635Net cash from/(used by) operating activities 250 - - - -INVESTING ACTIVITIESCash used

Purchase of property, plant and equipment and intangibles 1,500 - - - -

Total cash used 1,500 - - - -

Net cash from/(used by) investing activities (1,500) - - - -FINANCING ACTIVITIESCash received

Contributed equity 1,500 - - - -Total cash received 1,500 - - - -

Net cash from/(used by) financing activities 1,500 - - - -Net increase/(decrease) in cash held 250 - - - -



141



2016-17Budget

$'000


$'000


$'000


$'000

NEW CAPITAL APPROPRIATIONSCapital budget - Bill 1 (DCB) 1,500 - - - -

Total new capital appropriations 1,500 - - - -


Funded by capital appropriations (a) 1,500

TOTAL 1,500 - - - -


Total purchases 1,500

Total cash used to acquire assets 1,500 - - - - (a) Reflects Bill 1 (DCB).



142

Table 3.6: Statement of asset movements (Budget year 2016-17)

Other property, plant and equipment

$'000

Total

$'000

As at 1 July 2016

Gross book value (a) 1,704 1,704Accumulated depreciation/amortisation and impairment (113) (113)

Opening net book balance 1,591 1,591Other movementsDepreciation/amortisation expense (208) (208)Total other movements (208) (208)

As at 30 June 2017Gross book value 1,704 1,704Accumulated depreciation/ amortisation and impairment (321) (321)

Closing net book balance 1,383 1,383 (a) Following the establishment of the DTO a review has been conducted on the classes of assets reported

by DTO.


143

Indigenous Business Australia


145

INDIGENOUS BUSINESS AUSTRALIA

Section 1: Entity overview and resources ............................................................ 147 1.1 Strategic direction statement ...................................................................... 147 1.2 Entity resource statement ........................................................................... 148 1.3 Budget measures ....................................................................................... 149

Section 2: Outcomes and planned performance .................................................. 150 2.1 Budgeted expenses and performance for Outcome 1................................. 151

Section 3: Budgeted financial statements ............................................................ 158 3.1 Budgeted financial statements .................................................................... 158 3.2.1 Budgeted financial statements tables ......................................................... 160

IBA Budget Statements

147

INDIGENOUS BUSINESS AUSTRALIA



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.


148


Table 1.1 shows the total funding from all sources available to IBA for its operations and to deliver programs and services on behalf of the government.




Table 1.1: IBA resource statement — Budget estimates for 2016-17 as at Budget May 2016

2015-16 estimated

actual$'000

2016-17 estimate

$'000Funds from Government


Outcome 1 34,258 10,602Annual appropriations - other services (b)

Equity injection 36,550 36,550Total annual appropriations 70,808 47,152Payments from Related Entities Grants from Department of the Prime Minister and Cabinet (c) - 23,086 Total payments from related entities - 23,086Total funds from Government 70,808 70,238Funds from other sources

Interest 52,148 53,031Sale of goods and services 97,077 90,077Rent 17,748 20,552Dividend 2,663 3,046Other 2,834 2,101

Total funds from other sources 172,470 168,807Total net resourcing for IBA 243,278 239,045

2015-16 2016-17Average staffing level (number) 234 219 Please note: All figures shown above are GST exclusive - these may not match figures in the cash flow statement. (a) Appropriation Bill (No. 1) 2016-17. (b) Appropriation Bill (No. 2) 2016-17. (c) Funding provided by a government entity that is not specified within the Appropriation Bills


149

1.3 BUDGET MEASURES

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

Table 1.2: IBA 2016-17 Budget measures Part 1: Measures announced since the 2015-16 Mid-Year Economic and Fiscal Outlook (MYEFO)

Program2015-16

$'0002016-17

$'0002017-18

$'0002018-19

$'0002019-20

$'000Expense measures Indigenous Business Australia - continuity of business support arrangments (a) 1.3

Departmental expenses - (23,086) - - - Total - (23,086) - - - Total expense measures

Departmental - (23,086) - - - Total - (23,086) - - - (a) A transfer of $23.1 million in 2016-17 has been made to the Indigenous Advancement Strategy to allow

activities under the Business Development and Assistance Program to continue to ensure Government meets requirements of the Aboriginal and Torres Strait Islander Act 2005 (ATSI Act).

Prepared on a Government Finance Statistics (fiscal) basis. Figures displayed as a negative (-) represent a decrease in funds and a positive (+) represent an increase in funds.


150




Note:



151


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.


This table shows how much IBA intends to spend (on an accrual basis) on achieving the outcome, broken down by program, as well as by Departmental funding sources.


2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000

Revenue from GovernmentRevenues from other independent sources 120,908 113,993 93,291 91,234 93,174Total expenses for Program 1.1 120,908 113,993 93,291 91,234 93,174

Revenue from GovernmentOrdinary annual services (Appropriation Bill No. 1) 10,868 10,602 10,698 10,694 10,705

Revenues from other independent sources 41,158 37,305 38,407 39,638 40,886Total expenses for Program 1.2 52,026 47,907 49,105 50,332 51,591

Revenue from GovernmentOrdinary annual services (Appropriation Bill No. 1) 23,390 - 23,022 23,017 23,041

Revenues from other independent sources 9,579 30,169 7,901 8,679 9,447Total expenses for Program 1.3 32,969 30,169 30,923 31,696 32,488




Program 1.1: Equities and Investments

Program 1.2: Indigenous Home Ownership

Outcome 1 totals by resource type

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.

Program 1.3: Business Development and Assistance



152



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.

Program 1.1 – IBA Investment’s objective is to assist and develop Indigenous Australians to achieve economic independence through investment and participation in commercial enterprises.

Delivery IBA Investments will build commercial capability for Indigenous individuals, land councils and traditional owner groups through

Direct management of businesses & investments. Provision of managed investments. Facilitating supply chain opportunities. Provision of employment and training Facilitating income and business development through the provision of

leasing.

Performance information Performance Criteria

2015–16 Estimated

Actual

2016–17 Budget

2017–18 Forward estimate



Portfolio return to Indigenous co-investors1.

Target: Cash + 3%

Forecast:

Cash + 4.91%

CPI2 + 4% CPI + 4% CPI + 4% CPI + 4%

Portfolio return to IBA3.

Target: Cash + 3%

Forecast:

Cash + 3.91%

CPI + 4% CPI + 4% CPI + 4% CPI + 4%

Portfolio return to IBA4 (rolling 5 years).

Target: Cash + 3%

Forecast:

Cash + 2.53%

CPI + 4% CPI + 4% CPI + 4% CPI + 4%

Proportion of Indigenous jobs supported by investment portfolio.

Target: 22.5%

Forecast: 25% 30% 30% 30% 30%



153



Number of Indigenous co-investors supported.

Target: 30

Forecast: 34 85 85 85 85

Aggregate Portfolio Value5 N/A $330 million $340 million $350 million $360 million

Equity sold / issued to Indigenous Investors6 N/A $30 million $30 million $30 million $30 million

Proportion of Indigenous jobs supported by Investment portfolio7

N/A 5% 5% 5% 5%

Purpose To 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 Islander peoples.

1 This measure indicates portfolio return to Indigenous partners during the year. It is calculated as the aggregate return generated by Indigenous partners’ interests in the investment portfolio in the Budget year, expressed as a percentage of the average value of the Indigenous partner’s interests in the investment portfolio during the Budget year. It is calculated after management, administration fees and expenses at the level of the underlying investee entities and hence represents the net investment return to Indigenous investors 2 CPI refers to the average consumer price index for Australia during the measurement period. For example if the realised CPI for 2016-17 is 1.7% then the expected return based on a target of CPI + 4% would be 5.7% (1.7% + 4%) 3 This measure indicates portfolio return to IBA during the year. It is calculated as the 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 (inclusive of cash) during the Budget year (“Portfolio Value”). It is calculated after management, administration fees and expenses at the level of the underlying investee entities, but before IBA’s program level expenses. 4 This 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 return generated by the investment portfolio (expressed as a percentage of Portfolio Value) in each of the past 5 Budget years. It is calculated after management, administration fees and expenses at the level of the underlying investee companies, but before IBA’s program level expenses. 5 This measure indicates the total equity value of the investment portfolio (inclusive of co-investor interests) as at 30 June 2017 and 30 June each subsequent year in the forward period. 6 This measure indicates the total amount of IBA equity sold to Indigenous investors during the Budget year. 7 This measure indicates total equity held, in aggregate, by Indigenous partners and beneficiaries in the Budget year, expressed as a percentage of the total Investment portfolio value.


154

Table 2.1.2: Performance criteria for Outcome 1 (continued) Program 1.2 –aims to assist Indigenous Australians achieve home ownership outcomes who, due to financial and other barriers, have difficulty obtaining home loan finance from commercial lenders. These barriers include lower incomes and savings, credit impairment and the risk tolerance parameters, in the credit assessment criteria of commercial lenders. The program can also assist people in remote Indigenous communities buy homes where there are appropriate land tenure arrangements in place. The program’s long term success is assessed in terms of facilitating an increase in Indigenous Australians who are home owners

Delivery The program is to deliver home loans and related assistance to Indigenous persons and the effective management of the loan portfolio.


Performance Criteria

2015-16 Estimated Actual

2016-17 Budget

2017-18 Forward Estimate



Number of new home loans.

Target: 575 Forecast:

525

530 540 550 560

Value of new loans1

NA $160 million $160 million $160 million $160 million

Aggregate loans in portfolio

Target: 4,675

Forecast: 4,630

4,730 4,840 4,950 5,070

Total IHOP capital base

Target: $1,060 million

Forecast: $1,050 million

$1,110 million

$1,170 million $1,230 million $1,300 million

Percentage of loans to applicants who have an adjusted combined gross annual income of not more than 140% of IBA’s income amount2.

Target: 80% Forecast:

85%

80% 80% 80% 80%

Percentage of loans to applicants who are first home buyers

Target: 90% of loans

Forecast: 91%

90% 90% 90% 90%



155



2016-17 Budget




Percentage of loans for home acquisitions3

NA 96% 96% 96% 96%

Number of remote communities which IBA is actively facilitating home ownership opportunities

Target: 12 Forecast: 20

25 28 30 30

Purposes To advance the commercial and economic interests of Aboriginal persons and Torres Strait Islanders by accumulating and using a substantial capital asset for the benefit of the Aboriginal and Torres Strait Islander peoples. To assist and enhance Aboriginal and Torres Strait Islander self-management and economic self-sufficiency.

1. This is a new KPI introduced in 2016-17 to measure the aggregate volume of new loans. 2. From 2016-17 IBA has adopted “combined gross annual income” for this KPI. For joint applicants this

includes total income for both applicants (previously adjusted combined gross annual income was used which was 100% of the main income earner’s income and 50% of the secondary income earner’s income).

3. This new performance indicator has been added in 2016-17 to report on new home ownership outcomes separately from loans made for ancillary home ownership outcomes. eg home renovations, repairs and maintenance and to refinance loans



156

Table 2.1.2: Performance criteria for Outcome 1 (continued) Program 1.3 – The Business Development and Assistance Program plays an important role in the development and growth of Aboriginal and Torres Strait Islander businesses through a range of assistance to Indigenous Australians to acquire, establish and grow their businesses successfully. This support includes access to expertise, supply chain opportunities, and finance for viable businesses.

Delivery The program targets Indigenous persons and groups with aspirations for advancement and will be delivered by:

Providing business loans. Providing after care and post loan support. Providing Business & Financial management training.




2016-17 Budget




Number of new IBA loans approved.


70 75 80 85

Number of increases to loans with existing customers.


NA NA NA NA

Value of total lending to new IBA customers approved1

NA $7 million $7.5 million $8 million $8.5 million

Value of total lending to existing IBA customers approved2.

NA $7 million $7.5 million $8 million $8.5 million

Number of Entrepreneurs supported in capability development activities3.


NA NA NA NA

Value of loan portfolio

NA $55 million $60 million $65 million $70 million

Number of active loans in portfolio


260 290 320 350

Total number of indigenous people in jobs created / supported by IBA business loan clients.


430 470 510 550

Indigenous employment created or supported by new IBA lending4.

NA 70 75 80 85



157

Table 2.1.2: Performance criteria for Outcome 1 (continued) Performance Criteria


2016-17 Budget




Percentage of loan customers still in business 1 year after commencing business.

Target: 85% Forecast: 91%

85% 85% 85% 85%

Percentage of loan customers still in business 2 years after commencing business.


75% 75% 75% 75%

Percentage of loan customers still in business 3 years after commencing business.


65% 65% 65% 65%

Number of jobs created/supported by IBA business loan clients5.


NA NA NA NA

Purposes To assist and enhance Aboriginal and Torres Strait Islander self-management and economic self-sufficiency. To advance the commercial and economic interests of Aboriginal persons and Torres Strait Islanders by accumulating and using a substantial capital asset for the benefit of the Aboriginal and Torres Strait Islander peoples. 1. This KPI replaces number of new loans and includes new loans to better reflect the level of lending to new IBA customers. 2. Changed from number of new loans to value of new loans and reflects all new lending made to existing IBA clients. 3. Represents Into-business workshop participants and other support services provided to customers. This is being replaced by a series of e-learning modules. (delivery of workshops are on hold as of 31/12/2015) 4. New performance measure introduced in 2016-17. Measures the amount of new employment created or supported by new lending during the period. 5. Number of jobs supported by IBA business loan clients has been removed from this year’s PBS as there is already a KPI for Indigenous employment. The provision of employment generally, is not an objective of the program. NA – represents performance measures which are new or have been replaced / removed for the 2016-17 Financial year.


158




3.1.1 Differences between entity resourcing and financial statements There are no differences between IBA’s Entity Resourcing and Financial Statements.

3.1.2 Explanatory notes and analysis of budgeted financial statements An analysis of the primary causes of movements in the budgeted financial statements is provided below. The 2015-16 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 34 subsidiaries. On consolidation, assets, liabilities, income and expenditure of all subsidiaries flow through to individual line items in the consolidated budget.


IBA is budgeting for an operating surplus of $7.1 million in 2015-16 and an estimated surplus of $15.4 million in 2016-17.


Budgeted net assets as at 30 June 2017 of $1,275.2 million represents an increase of $48.8 million over the net assets of $1,226.4 million as at 30 June 2016. The main drivers of the increase ($48.8 million) are:

continuing capital injections from the Government of $36.6 million

the estimated operating surplus of $15.4 million.


159

Budgeted Departmental Statement of Cash Flows

Net lending activity is expected to decrease from $78.6 million in 2015-16 to $68.5 million in 2016-17. The decrement is the excess of loan repayments and discharges over new loan disbursements.

Departmental Statement of Changes in Equity

Total equity is expected to increase by $48.8 million to $1,275.2 million as at 30 June 2017, with the additional equity injection of $36.6 million from the Commonwealth and the Budget year surplus of $15.4 million.

Notes to budgeted financial statements

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 Comprehensive Income Statement.

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 re-valued 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.

Reduction in Appropriations

An amount of $23.1m appropriation currently allocated to IBA’s Business Development and Assistance Program (BDAP) has been re-directed to Department of the Prime Minister and Cabinet (PM&C) in 2016-17 only.

As an interim measure, IBA proposes to deliver business support and capability development serving under a contractual arrangement with PM&C and it is expected that the $23.1m funding will be provided to IBA as grant payments from PM&C.


160



2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000EXPENSES

Employee benefits 55,326 52,196 49,521 50,167 50,944Suppliers 92,102 86,951 74,784 75,105 75,987Grants 8,495 10,331 10,119 10,064 10,064Depreciation and amortisation 5,359 6,762 7,653 6,794 7,372Finance costs 947 915 827 828 830Write-down and impairment of assets 8,300 5,845 5,414 5,023 5,023Concessional Loan Discount 32,542 27,185 23,262 23,532 25,273Other expenses 1,225 969 1,040 1,040 1,040


Sale of goods and rendering of services 103,551 95,077 78,931 79,749 80,656Interest 52,148 53,031 54,869 57,303 60,007Dividends 2,663 3,046 2,920 3,111 3,316Rental income 17,748 20,552 21,613 20,726 21,576Grant Revenue - 23,086 - - -Other 1,529 1,431 1,277 1,286 1,296


Other 1,065 670 600 600 600Total gains 1,065 670 600 600 600Total own-source income 178,704 196,893 160,210 162,775 167,451Net (cost of)/contribution by services (25,592) 5,739 (12,410) (9,778) (9,082)Revenue from Government 34,258 10,602 33,720 33,711 33,746Surplus/(deficit) before income tax on continuing operations 8,666 16,341 21,310 23,933 24,664Income tax expense 1,608 915 699 709 720Surplus/(deficit) after income tax on continuing operations 7,058 15,426 20,611 23,224 23,944 Surplus attributable to the non-controlling interests 5,801 3,455 3,319 3,400 3,500Surplus/(deficit) attributable to the Australian Government 1,257 11,971 17,292 19,824 20,444 Prepared on Australian Accounting Standards basis.


161



2016-17Budget

$'000


$'000


$'000


$'000ASSETSFinancial assets

Cash and cash equivalents 130,311 143,056 142,944 145,883 144,184Trade and other receivables 727,958 768,421 808,527 849,036 889,601Investments accounted for under the equity method 26,895 26,895 26,895 26,895 26,895Other investments 164,745 165,745 180,745 195,745 215,745

Total financial assets 1,049,909 1,104,117 1,159,111 1,217,559 1,276,425 Non-financial assets

Land and buildings 44,801 44,525 44,049 43,373 42,577Property, plant and equipment 17,723 13,560 13,996 13,291 13,008Investment property 146,497 146,497 146,497 146,497 146,497Intangibles 7,742 6,949 6,156 5,863 5,570Inventories 4,354 4,354 4,354 4,354 4,354Tax assets 1,015 1,015 1,015 1,015 1,015Other non-financial assets 2,938 2,938 2,938 2,938 2,938

Total non-financial assets 225,070 219,838 219,005 217,331 215,959 Total assets 1,274,979 1,323,955 1,378,116 1,434,890 1,492,384 LIABILITIESPayables

Suppliers 10,300 10,500 10,600 10,700 10,800Tax liabilities 52 52 52 52 52Other payables 7,067 6,767 6,567 6,517 6,467

Total payables 17,419 17,319 17,219 17,269 17,319 Interest bearing liabilities

Loans 22,283 22,283 22,283 22,283 22,283Total interest bearing liabilities 22,283 22,283 22,283 22,283 22,283 Provisions

Employee provisions 6,540 6,740 6,940 7,040 7,140Other provisions 2,322 2,422 2,522 2,572 2,622

Total provisions 8,862 9,162 9,462 9,612 9,762 Total liabilities 48,564 48,764 48,964 49,164 49,364 Net assets 1,226,415 1,275,191 1,329,152 1,385,726 1,443,020 EQUITY*Parent entity interest

Contributed equity 971,767 1,008,317 1,044,867 1,081,417 1,117,967Reserves 7,043 7,043 7,043 7,043 7,043Retained surplus (accumulated deficit) 209,058 221,029 238,321 258,145 278,589

Total parent entity interest 1,187,868 1,236,389 1,290,231 1,346,605 1,403,599Attributed to non-controlling interest

Contributed equity 33,562 33,562 33,562 33,562 33,562Reserves 1,384 1,384 1,384 1,384 1,384Retained surplus (accumulated deficit) 3,601 3,856 3,975 4,175 4,475

Total non-controlling interest 38,547 38,802 38,921 39,121 39,421Total equity 1,226,415 1,275,191 1,329,152 1,385,726 1,443,020 * 'Equity' is the residual interest in assets after the deduction of liabilities. Prepared on Australian Accounting Standards basis.


162


Retained earnings

$'000

Asset revaluation

reserve$'000


Total equity

$'000Opening balance as at 1 July 2016

Balance carried forward from previous period 212,659 8,427 1,005,329 1,226,415

Adjusted opening balance 212,659 8,427 1,005,329 1,226,415Comprehensive income

Surplus/(deficit) for the period 15,426 - - 15,426Total comprehensive income 15,426 - - 15,426

of which:Attributable to the Australian Government 11,971 - - 11,971Attributable to non-controlling interest 3,455 - - 3,455

Transactions with ownersDistributions to owners

Returns on capital:Dividends (3,200) - - (3,200)

Contributions by ownersEquity injection - Appropriation - - 36,550 36,550

Sub-total transactions with owners (3,200) - 36,550 33,350Estimated closing balance as at 30 June 2017 224,885 8,427 1,041,879 1,275,191

Less: non-controlling interests 3,856 1,384 33,562 38,802Closing balance attributable to the Australian Government 221,029 7,043 1,008,317 1,236,389



163


2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000OPERATING ACTIVITIESCash received

Appropriations 34,258 10,602 33,720 33,711 33,746Sale of goods and rendering of services 97,077 90,077 78,930 79,751 80,655Interest 52,148 53,031 54,869 57,303 60,008Dividends 2,663 3,046 2,920 3,111 3,316Grants - 23,086 - - -Other 20,582 22,653 23,490 22,612 23,472


Employees 56,067 51,996 49,321 50,068 50,844Suppliers 89,478 86,627 74,334 74,931 75,597Grants 8,495 10,331 10,119 10,064 10,064Other 6,206 3,123 3,015 2,652 2,880

Total cash used 160,246 152,077 136,789 137,715 139,385Net cash from/(used by) operating activities 46,482 50,418 57,140 58,773 61,812INVESTING ACTIVITIESCash received

Investments 85,490 - - - -Other- repayment of loans 102,285 105,000 110,000 111,000 112,000


Purchase of property, plant and equipment and intangibles 21,534 1,530 6,820 5,120 6,000Investments 101,000 - - - -Other - loans / advances 180,920 173,493 178,782 180,064 182,861Other investing activities - 1,000 15,000 15,000 20,000

Total cash used 303,454 176,023 200,602 200,184 208,861Net cash from/(used by) investing activities (115,679) (71,023) (90,602) (89,184) (96,861)



164

Table 3.4: Budgeted departmental statement of cash flows (for the period ended 30 June) (continued)

2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000FINANCING ACTIVITIESCash received

Contributed equity 36,550 36,550 36,550 36,550 36,550New borrowings 9,522 - - - -Other 1,194 - - - -


Dividends paid 3,846 3,200 3,200 3,200 3,200Total cash used 3,846 3,200 3,200 3,200 3,200Net cash from/(used by) financing activities 43,420 33,350 33,350 33,350 33,350Net increase/(decrease) in cash held (25,777) 12,745 (112) 2,939 (1,699)


Cash and cash equivalents at the end of the reporting period 130,311 143,056 142,944 145,883 144,184 Prepared on Australian Accounting Standards basis.


165



2016-17Budget

$'000


$'000


$'000


$'000NEW CAPITAL APPROPRIATIONS

Equity injections - Bill 2 36,550 36,550 36,550 36,550 36,550Total new capital appropriations 36,550 36,550 36,550 36,550 36,550

Provided for:Loan expenditure 36,550 36,550 36,550 36,550 36,550

Total items 36,550 36,550 36,550 36,550 36,550PURCHASE OF NON-FINANCIAL ASSETS

Funded internally from departmental resources 21,534 1,530 6,820 5,120 6,000

TOTAL 21,534 1,530 6,820 5,120 6,000RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE Total purchases 21,534 1,530 6,820 5,120 6,000Total cash used to acquire assets 21,534 1,530 6,820 5,120 6,000



166


$'000


equipment$'000

Investment property

$'000


intangibles

$'000

Total

$'000

As at 1 July 2016Gross book value 51,337 26,540 146,497 15,856 240,230depreciation/amortisation and impairment (6,536) (8,817) - (8,114) (23,467)

Opening net book balance 44,801 17,723 146,497 7,742 216,763Capital asset additions

Estimated expenditure on new or replacement assetsBy purchase - other 520 1,010 - - 1,530Total additions 520 1,010 - - 1,530Other movementsDepreciation/amortisation expense (796) (5,173) - (793) (6,762)Total other movements (796) (5,173) - (793) (6,762)

As at 30 June 2017Gross book value 51,857 27,550 146,497 15,856 241,760Accumulated depreciation/ amortisation and impairment (7,332) (13,990) - (8,907) (30,229)

Closing net book balance 44,525 13,560 146,497 6,949 211,531 Prepared on Australian Accounting Standards basis.

167

Indigenous Land Corporation


169

INDIGENOUS LAND CORPORATION




1.3 Budget measures ....................................................................................... 174






ILC Budget Statements

171

INDIGENOUS LAND CORPORATION



The Indigenous Land Corporation (ILC) is a corporate Commonwealth entity established on 1 June 1995 as a component of the national settlement after the Mabo judgment (1992) recognised common law native title rights to land. It is governed by the Aboriginal and Torres Strait Islander Act 2005 (ATSI Act). The ATSI Act, section 191B defines the ILC’s purpose as: (a) To assist Aboriginal persons and Torres Strait Islanders to acquire land; and (b) To assist Aboriginal persons and Torres Strait Islanders to manage Indigenous-

held land so as to provide economic, environmental, social or cultural benefits for Aboriginal persons and Torres Strait Islanders. The ATSI Act requires that the ILC grant land acquired to Indigenous corporations ‘within a reasonable time’, and perform land management functions only on Indigenous-held land and ‘under agreements with the holders of the land’. The ILC’s primary source of income is revenue from the Aboriginal and Torres Strait Islander Land Account (Land Account), legislated concurrently with the ILC as part of the native title settlement. The Land Account is administered by the Department of the Prime Minister and Cabinet under delegation from the Minister for Finance. The ILC’s primary decision-making body is a seven-member Board, of whom five members including the Chairperson must be Indigenous Australians. The Board sets the ILC’s strategic direction and policies over a three-to-five year timeframe through the National Indigenous Land Strategy (NILS), required to be tabled in Parliament and published. The current NILS 2013–17—in the process of redevelopment by the Board appointed in October 2015—sets out two priorities for the achievement of Indigenous benefits through the acquisition and management of Indigenous land: 1) Access to and protection of cultural and environmental values, and 2) Socioeconomic development.

The ILC’s land acquisition and land management functions operate through the Our Land Our Future program-delivery arrangements, launched in March 2015. Features of Our Land Our Future include open timelines, flexible processes and a strong commitment to collaboration, longer term investment and capacity building in developing successful projects with Indigenous land owners and other partners. The ILC will continue its active engagement with Indigenous land holders and others in developing income streams for Indigenous owners in areas such as carbon farming, environmental services and heritage management.


172

The ATSI Act provides for the establishment of subsidiaries. With the ILC, the three wholly-owned subsidiaries below form the ILC Group:

National Indigenous Pastoral Enterprises (NIPE) Pty Ltd, which manages 14 ILC-developed agribusinesses, 13 in the northern Australian beef industry

Voyages Indigenous Tourism Australia (Voyages) Pty Ltd, which owns and manages Ayers Rock Resort, NT, and manages two other tourism enterprises developed by the ILC

National Centre of Indigenous Excellence (NCIE) Ltd, which manages the ILC-developed social enterprise of the same name in Redfern, Sydney, NSW.

ILC-developed commercial enterprises in agriculture and tourism are a vehicle for Indigenous economic development in regional and remote areas, demonstrate best practice in land management and use, and are a base for Our Land Our Jobs, the Indigenous training-to-employment projects funded by the ILC and its subsidiaries in partnership with the Australian Government’s Indigenous Advancement Strategy and other funding providers. The ILC is charged with assisting in the management of an Indigenous estate that is now estimated to cover up to 40 per cent of the Australian land mass1. This land is subject to complex array of land titles (including varying and often highly qualified native title rights); the vast extent is in remote northern and central Australia. As recognised in the White Paper on Developing Northern Australia (June 2015) and the Investigation into Indigenous Land Administration and Use (December 2015), Indigenous people continue to face challenges in deriving the shorter and longer term benefits, including intergenerational wealth creation, generally associated with land ownership. As the Indigenous estate grows (principally through native title settlements and determinations) and the Indigenous population increases, the ILC faces a number of challenges. Land Account revenues, generated from a capital fund fixed in real terms, will be increasingly inadequate to meet the land acquisition and, in particular, land management needs generated across Indigenous Australia. The ILC’s acquisition of Ayers Rock Resort in 2010–11, while achieving significant Indigenous benefits, has placed severe financial constraints on the delivery of its core land acquisition and management functions. The ILC is currently working with the Australian Government on options for increasing revenue from the Land Account and minimising interest payments on the Ayers Rock Resort debt. The ILC delivers strongly on the Australian Government’s Closing the Gap priority of ‘getting adults into work’ through Our Land Our Jobs and the direct employment of Indigenous people. In assisting the Government’s priority of Indigenous economic development, and in particular economic development on Indigenous-held land, the ILC will in 2016–17 and future years work more closely with Indigenous Business Australia (IBA), given the potential for synergy between the two agencies.

1 Report to the Council of Australian Governments, Investigation into Indigenous Land Administration and Use, Senior Officers Working Group, December 2015, p.1.


173


Table 1.1 shows the total funding from all sources available to ILC for its operations and to deliver programs and services on behalf of the government.




Table 1.1: ILC resource statement — Budget estimates for 2016-17 as at Budget May 2016

2015-16 estimated

actual$'000

2016-17 estimate

$'000

Funds from GovernmentAnnual appropriations - ordinary annual services (a)

Outcome 1 9,389 9,156Total annual appropriations 9,389 9,156Special accounts (b)

Aboriginal and Torres Strait Islander Land Account 50,712 51,574Total special accounts 50,712 51,574Total funds from Government 60,101 60,730Funds from other sources

Interest 18,500 18,500Other 4,700 4,700

Total funds from other sources 23,200 23,200Total net resourcing for ILC 83,301 83,930



(b) A corporate entity may receive payment from a special account held by a NCCE. The corporate entity does not own/hold the special account itself and therefore does not have a balance carried forward from previous years.


174

1.3 BUDGET MEASURES

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

Table 1.2: ILC 2016-17 Budget measures


Program2015-16

$'0002016-17

$'0002017-18

$'0002018-19

$'0002019-20

$'000

Revenue measures (if applicable)Indigenous Land Corporation - concessional loan for Ayers Rock Resort 1.1

Departmental revenues - nfp nfp nfp nfp

Total - nfp nfp nfp nfpTotal revenue measures

Departmental - - - - -

Total - nfp nfp nfp nfp

(a) Funding for this measure has already been provided for by the Government

The ILC has been granted a government loan over a period of 7 years to reduce interest payments on the debt incurred from the purchase of the Ayers Rock Resort.




175




Note:



176


Outcome 1: Enhanced socioeconomic development, maintenance of cultural identity and protection of the environment by Indigenous Australians through land acquisition and management.


This table shows how much ILC intends to spend (on an accrual basis) on achieving the outcome, broken down by program, as well as by Departmental funding sources.


2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000

Revenue from GovernmentOrdinary annual services (Appropriation Bill No. 1)

9,389 9,156 9,065 8,974 8,884

Payment from related entities 18,500 18,500 18,500 18,500 18,500Special accounts

Aboriginal and Torres Strait Islander Land Account

50,712 51,574 52,812 54,080 55,378



Program 1.1: Assistance in the acquisition and management of an Indigenous land base

Outcome 1: Enhanced socio-economic development, maintenance of cultural identity and protection of the environment by Indigenous Australians through land acquisition and management.



177



Outcome 1 – Enhanced socioeconomic development, maintenance of cultural identity and protection of the environment by Indigenous Australians through land acquisition and management.

Program 1.1 – The objective of this program is to acquire and manage an Indigenous land base.

Delivery The ILC delivers this program by:

acquiring and granting land to Indigenous corporations to provide access to and protection of cultural and environmental values and to achieve socioeconomic development

assisting Indigenous land holders (through grants, guarantees, loans or provision of services) to manage their land sustainably including the development of viable land-based enterprises

operating subsidiary companies that manage agricultural, tourism and community-based enterprises on Indigenous-held land; these enterprises provide training, employment and other opportunities for Indigenous communities and individuals


Deliverables 2015–16 Estimated

Actual

2016–17 Budget




Properties acquired for socio-economic development and cultural and environmental heritage protection

3(a) 3 3 3 3

Properties granted 10 8 6 12 8

Employment and training projects implemented on ILC agricultural and tourism businesses

11 11 11 11 11

Regional land management projects implemented

12 12 12 12 12

Property-based, property planning land management projects assisted

60 60 60 60 60



178

Table 2.1.2: Performance criteria for Outcome 1 (continued) Performance Criteria

2015–16 Estimated Actual

2016–17Budget


2018–19Forward estimate


Total number of Indigenous staff employed directly through ILC agricultural and tourism businesses

450 450 450 450 450

Total number of Indigenous trainees employed through ILC agriculture and tourism businesses(b)

200 200 200 200 200

Total number of Indigenous employment outcomes enabled through ILC land acquisition and land management projects

500 500 (b) 500 500 500

Total number of Indigenous training outcomes enabled through ILC land acquisition and land management projects

1000 1000 1000 1000 1000

Total number of Indigenous-held properties with improved land management

130 130 130 130 130

Proportion of ILC-assisted projects that protect cultural and environmental heritage values or maintained culture

50% 50% 50% 50% 50%

Proportion of projects that were collaborative with and leveraged funding from other entities

66% 66% 66% 66% 66%

Purpose (c) To assist Indigenous people to acquire and manage land to achieve economic, environmental, social or cultural benefits

(a) As it is now estimated that up to 40 per cent of Australia’s land mass is subject to some form of Indigenous title, there is an increased strategic focus on managing and developing the existing Indigenous estate.

(b) Forecast and actual numbers subject to matching Commonwealth funding that has not yet been secured on an ongoing basis.

(c) Refers to updated purposes that will be reflected in the 2016-17 Corporate Plan.

.


179

Section 3: Budgeted financial statements Section 3 presents budgeted financial statements which provide a comprehensive snapshot of entity finances for the 2016-17 budget year, including the impact of budget measures and resourcing on financial statements.



The ILC has no differences in entity resourcing and financial statements.

The financial statements included in the Portfolio Budget Statements are for the ILC Group comprising the 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.


The ILC’s primary source of income is an annual minimum payment of $45 million indexed from the Land Account pursuant to section 193(2) of the ATSI Act. Indexation has been applied annually to the base amount of $45 million since 2010-11. Estimated payments from the Land Account from 2014–15 onwards have been provided by PM&C, which is responsible for the administration of the Land Account.

The total resources for the ILC’s outcome include the income from the Land Account, 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 money. Earnings on these investments are represented in the Comprehensive Income Statement (Table 3.2.1).

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 Comprehensive Income Statement (Table 3.2.1), 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 Comprehensive Income Statement (Table 3.2.1).


180



2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000

EXPENSESEmployee benefits 14,696 14,968 15,241 16,777 17,400Suppliers 44,405 51,494 44,669 42,012 48,599Depreciation and amortisation 1,500 1,500 1,500 1,500 1,500Finance costs 9,000 5,850 5,850 5,705 5,034


Interest 18,500 18,500 18,500 18,500 18,500Other 55,412 56,274 57,512 58,780 60,078

Total own-source revenue 73,912 74,774 76,012 77,280 78,578Total own-source income 73,912 74,774 76,012 77,280 78,578

Net (cost of)/contribution by services 4,311 962 8,752 11,286 6,045 Revenue from Government 9,389 9,156 9,065 8,974 8,884Surplus/(deficit) attributable to the Australian Government 13,700 10,118 17,817 20,260 14,929OTHER COMPREHENSIVE INCOME Changes in asset revaluation surplus - - - - -Total other comprehensive income - - - - -Total comprehensive income/(loss) 13,700 10,118 17,817 20,260 14,929Total comprehensive income/(loss) attributable to the Australian Government 13,700 10,118 17,817 20,260 14,929 Prepared on Australian Accounting Standards basis.


181



2016-17Budget

$'000


$'000


$'000


$'000


Cash and cash equivalents 9,513 81 1,448 4,913 4,576Trade and other receivables 301,748 322,798 340,748 351,500 358,086Other financial assets 93 93 93 93 93


Land and buildings 127 127 127 127 127Property, plant and equipment 83,936 82,436 80,936 80,936 80,936Intangibles 188 188 188 188 188Biological assets 44,277 44,277 44,277 44,277 44,277Inventories 126,787 116,787 106,787 106,787 106,787Tax assets 167 167 167 167 167Other non-financial assets 32,068 32,068 32,068 32,068 32,068


Suppliers 10,307 10,307 10,307 10,307 10,307Total payables 10,307 10,307 10,307 10,307 10,307 Interest bearing liabilities

Loans 65,000 65,000 65,000 58,957 50,277Total interest bearing liabilities 65,000 65,000 65,000 58,957 50,277 Provisions

Employee provisions 3,659 3,659 3,659 3,659 3,659Other provisions 152,595 142,595 132,595 132,595 132,595


Reserves 5,979 5,979 5,979 5,979 5,979Retained surplus (accumulated deficit) 361,364 371,482 389,299 409,559 424,488




182


Retained earnings

$'000

Asset revaluation

reserve$'000

Total equity

$'000

Opening balance as at 1 July 2016Balance carried forward from previous period 361,364 5,979 367,343

Adjusted opening balance 361,364 5,979 367,343Comprehensive income

Surplus/(deficit) for the period 10,118 - 10,118Total comprehensive income 10,118 - 10,118

of which:Attributable to the Australian Government 10,118 - 10,118

Estimated closing balance as at 30 June 2017 371,482 5,979 377,461

Closing balance attributable to the Australian Government 371,482 5,979 377,461



183


2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000


Appropriations 9,389 9,156 9,065 8,974 8,884Receipts from Government 50,712 51,574 52,812 54,080 55,378Other 4,700 4,700 4,700 4,700 4,700


Employees 14,696 14,968 15,241 16,777 17,400Suppliers 81,405 61,494 54,669 42,012 48,599Borrowing costs 9,000 5,850 5,850 5,705 5,034

Total cash used 105,101 82,312 75,760 64,494 71,033Net cash from/(used by) operating activities (40,300) (16,882) (9,183) 3,260 (2,071)INVESTING ACTIVITIESCash received

Loans and advances 70,000 7,450 10,550 7,748 11,914Investments 10,000 - - - -


Purchase of property, plant and equipment and intangibles - - - 1,500 1,500

Total cash used - - - 1,500 1,500

Net cash from/(used by) investing activities 80,000 7,450 10,550 6,248 10,414FINANCING ACTIVITIESCash received

Receipt of borrowings 65,000 - - - -Total cash received 65,000 - - - -Cash used

Repayments of borrowings 128,000 - - 6,043 8,680Total cash used 128,000 - - 6,043 8,680Net cash from/(used by) financing activities (63,000) - - (6,043) (8,680)

Net increase/(decrease) in cash held (23,300) (9,432) 1,367 3,465 (337)

Cash and cash equivalents at the beginning of the reporting period 32,813 9,513 81 1,448 4,913

Cash and cash equivalents at the end of the reporting period 9,513 81 1,448 4,913 4,576 Prepared on Australian Accounting Standards basis.


184



2016-17Budget

$'000


$'000


$'000


$'000



resources (a)- - - 1,500 1,500

TOTAL - - - 1,500 1,500RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE

Total purchases - - - 1,500 1,500

Total cash used to acquire assets - - - 1,500 1,500 (a) Includes the following sources of funding:

- current Bill 1 and prior year Act 1/3/5 appropriations (excluding amounts from the DCB);

- donations and contributions;

- gifts;

- internally developed assets;

- s 74 Retained revenue receipts;

- proceeds from the sale of assets.



185


$'000


equipment$'000


intangibles$'000

Total

$'000As at 1 July 2016

Gross book value 127 85,986 1,026 87,139Accumulated depreciation/amortisation and impairment - (2,050) (838) (2,888)

Opening net book balance 127 83,936 188 84,251Other movementsDepreciation/amortisation expense (1,500) (1,500)Total other movements - (1,500) - (1,500)

As at 30 June 2017Gross book value 127 85,986 1,026 87,139Accumulated depreciation/ amortisation and impairment - (3,550) (838) (4,388)

Closing net book balance 127 82,436 188 82,751 Prepared on Australian Accounting Standards basis.

187

Office of National Assessments


189

OFFICE OF NATIONAL ASSESSMENTS




1.3 Budget measures ....................................................................................... 193






ONA Budget Statements

191

OFFICE OF NATIONAL ASSESSMENTS



The Office of National Assessments (ONA) is established by the Office of National Assessments Act 1977. It reports directly to the Prime Minister. By statute, ONA is independent of any department or authority and the Director-General of ONA is not subject to external direction on the content of assessments.

ONA concerns itself exclusively with international issues of importance to Australia. Our purpose is to give the Australian government a decision-making advantage by helping it to interpret world developments.

We do this through two main activities:

analysis of, and anticipating change in, international political, strategic and economic matters of importance to Australia

coordinating and evaluating Australia's foreign intelligence activities to inform government on their focus and effectiveness.

These assessment and coordination activities are enabled by forward-looking and agile corporate, information and security management systems and processes.

ONA's independence is vital to our performance. The government values objectivity in ONA assessments, which often form a base for policy development. Our effectiveness also depends on our responsiveness to the Prime Minister and key ministers and departments.


192


Table 1.1 shows the total funding from all sources available to ONA for its operations and to deliver programs and services on behalf of the government.

The table summarises how resources will be applied by outcome (government strategic policy objectives) and departmental (for the entity’s operations) classification.


Table 1.1: ONA resource statement — Budget estimates for 2016-17 as at Budget May 2016

2015-16 Estimated

actual $'000

2016-17 Estimate

$'000


Prior year appropriations available (b) 22,173 24,200Departmental appropriation 30,273 31,466Departmental capital budget (c) 3,928 3,884

Total departmental annual appropriations 56,374 59,550Total departmental resourcing 56,374 59,550Total resourcing for ONA 56,374 59,550


Please note: All figures shown above are GST exclusive – these may not match figures in the cash flow statement.


(b) Estimated adjusted balance carried forward from previous year.



193

1.3 BUDGET MEASURES

The ONA has no budget measures in the 2016-17 Budget.


194



ONA's outcome is described below together with its related programs. The following provides detailed information on expenses for each outcome and program, further broken down by funding source.

The key strategies by which ONA will seek to achieve its outcome are by:

maintaining a strong customer focus

encouraging the highest standards of intelligence analysis and assessment

keeping Australia’s international intelligence activities under continuous review

providing a supportive and stimulating work environment.

Note:



195


Outcome 1: Advancement of Australia's national interests through increased government awareness of international developments affecting Australia.


This table shows how much ONA intends to spend (on an accrual basis) on achieving the outcome, broken down by program and Departmental funding sources.


2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000

Departmental expenses

Departmental appropriation (a) 21,191 22,026 22,471 23,456 24,549Expenses not requiring appropriation in the












Outcome 1: Advancement of Australia's national interests through increased government awareness of international developments affecting Australia.

Program 1.1: Assessment and Reports

Program 1.2: Coordination and Evaluation



(b) Expenses not requiring appropriation in the Budget year are made up of depreciation expenses, amortisation expenses, make good expenses, audit fees, and other gains.



196



Outcome 1- Advancement of Australia's national interests through increased government awareness of international developments affecting Australia.

Program 1.1 - Assessment and Reports

The objective of this program is to provide accurate and timely assessments and reports to the Prime Minister, senior ministers and officials.

Delivery To analyse and anticipate changes in international political, strategic and economic matters of importance to Australia.

Performance information (See note 1 below)

Year Performance criteria

2015-16 Satisfaction of the Prime Minister and other key Ministers as to the level of

analysis and assessment provided to Government

Positive judgement of the ONA product by clients.

2016-17 See Note 1 below

2017-18 and beyond See Note 1 below

There have been no material changes to Program 1.1.

Program 1.2 - Coordination and Evaluation

The objective of this program is to advance Australia’s national interest through the effective coordination and evaluation of Australia’s foreign intelligence activities.

Delivery To coordinate and evaluate Australia's foreign intelligence activities to inform government on their focus and effectiveness.

Performance information (See note 1 below)

Year Performance criteria

2015-16 ONA's intelligence coordination mechanisms are credible, effective and

deliver well-coordinated foreign intelligence support to Government

ONA's evaluation processes are complete, credible and inform Government.

2016-17 See Note 1 below

2017-18 and beyond See Note 1 below

There have been no material changes to Program 1.2.

Note 1: Performance criteria noted in the 2015-16 column of the above table aligns with information presented in ONA's 2015-16 Portfolio Budget Statement.

Since the issue of ONA's 2015-16 Portfolio Budget Statement, ONA's performance information relating to ONA's designated activities are exempt from being published as directed under Public Governance, Performance and Accountability (Office of National Assessments Section 105D) Determination 2015. The Determination was approved by the Minister of Finance on the 23rd June 2015.


197





The Entity Resource Statement (Table 1.1) provides a consolidated view of all the resources available to the entity in 2016-17. This includes equity injections and appropriation receivable that is yet to be drawn down to cover payables and provisions on the Departmental Balance Sheet (Table 3.2). The Comprehensive Income Statement (Table 3.1) shows only the operating appropriation provided in 2016-17.


ONA does not have any special accounts or manage administered funds.


ONA is budgeting for a break-even operating result, adjusted for depreciation and amortisation expense in 2016-17 and the forward estimate years. Employee and supplier expenses are budgeted to remain stable over the Budget and forward estimate years.


Cash balances are maintained within a working capital limit of $0.7 million as agreed with the Department of Finance.

Appropriation balances carried forward are retained to cover employee provisions and supplier payables, and for the management of the accounting treatment of the building lease. 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 cash flow is consistent with, and representative of, the transactions reported in the Comprehensive Income Statement (Table 3.1), adjusted for non-cash items and anticipated capital purchases.

Departmental Capital Budget Statement

The Departmental Capital Budget Statement (Table 3.5) shows the budgeted capital works program for the Budget and forward estimate years, including the purchase of new assets as well as replacement of existing assets.


198



2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000

EXPENSESEmployee benefits 19,607 21,408 21,939 23,118 24,290Suppliers 10,696 10,088 10,193 10,421 10,810Depreciation and amortisation 3,345 4,191 4,348 4,357 4,390

Total expenses 33,648 35,687 36,480 37,896 39,490LESS: OWN-SOURCE INCOMEOwn-source revenueGains

Other 30 30 30 30 30Total gains 30 30 30 30 30Total own-source income 30 30 30 30 30Net (cost of)/contribution by services (33,618) (35,657) (36,450) (37,866) (39,460)

Revenue from Government 30,273 31,466 32,102 33,509 35,070Surplus/(deficit) attributable to the Australian Government (3,345) (4,191) (4,348) (4,357) (4,390)Total comprehensive income/(loss) attributable to the Australian Government (3,345) (4,191) (4,348) (4,357) (4,390)


$'0002016-17

$'0002017-18

$'0002018-19

$'0002019-20



appropriations (a) 3,345 4,191 4,348 4,357 4,390Total comprehensive income/(loss) - as per the statement of comprehensive income (3,345) (4,191) (4,348) (4,357) (4,390)




199



2016-17Budget

$'000


$'000


$'000


$'000




Land and buildings 16,959 17,011 15,895 15,857 16,121Property, plant and equipment 1,582 2,492 3,336 3,327 3,544Intangibles 3,198 5,032 5,244 5,290 5,138Other non-financial assets 1,435 1,435 1,435 1,435 1,435


Suppliers 3,268 3,630 3,886 4,032 4,064Other payables 759 759 759 759 759







200


Retained earnings

$'000

Asset revaluation

reserve$'000


Total equity

$'000



Surplus/(deficit) for the period (4,191) - - (4,191)Total comprehensive income (4,191) - - (4,191)

of which:Attributable to the Australian Government (4,191) - - (4,191)

Transactions with ownersContributions by owners

Departmental capital budget (DCB) - - 3,884 3,884

Sub-total transactions with owners - - 3,884 3,884Estimated closing balance as at 30 June 2017 (10,422) 1,056 46,729 37,363

Closing balance attributable to the Australian Government (10,422) 1,056 46,729 37,363 Prepared on Australian Accounting Standards basis.


201


2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000


Appropriations 28,147 30,604 31,346 32,863 34,538Net GST received 850 789 810 836 861



Total cash used 29,648 31,393 32,156 33,699 35,399Net cash from/(used by) operating activities (651) - - - -INVESTING ACTIVITIESCash used

Purchase of Buildings 542 1,942 650 1,724 2,055

Purchase of property, plant and equipment 2,407 3,512 1,960 1,810 1,560Purchase of intangibles 1,078 1,533 1,678 823 1,103

Total cash used 4,027 6,987 4,288 4,357 4,718Net cash from/(used by) investing activities (4,027) (6,987) (4,288) (4,357) (4,718)FINANCING ACTIVITIESCash received

Contributed equity 4,027 6,987 4,288 4,357 4,718Total cash received 4,027 6,987 4,288 4,357 4,718Net cash from/(used by) financing activities 4,027 6,987 4,288 4,357 4,718Net increase/(decrease) in cash held (651) - - - -

Cash and cash equivalents at the beginning of the reporting period 1,301 650 650 650 650



202



2016-17Budget

$'000


$'000


$'000


$'000

NEW CAPITAL APPROPRIATIONSCapital budget - Bill 1 (DCB) 3,928 3,884 3,979 4,048 4,117

Total new capital appropriations 3,928 3,884 3,979 4,048 4,117

Provided for:Purchase of non-financial assets 3,928 3,884 3,979 4,048 4,117

Total items 3,928 3,884 3,979 4,048 4,117



DCB (a) 4,027 6,987 4,288 4,357 4,718

TOTAL 4,027 6,987 4,288 4,357 4,718


Total purchases 4,027 6,987 4,288 4,357 4,718

Total cash used to acquire assets 4,027 6,987 4,288 4,357 4,718 (a) Does not include annual finance lease costs. Includes purchases from current and previous years’

Departmental capital budgets (DCBs).



203


$'000


equipment$'000


intangibles$'000

Total

$'000

As at 1 July 2016Gross book value 20,450 4,459 8,189 33,098Accumulated depreciation/amortisation and impairment (3,491) (2,877) (4,991) (11,359)

Opening net book balance 16,959 1,582 3,198 21,739Capital asset additions


annual services (a) 1,942 1,533 3,512 6,987Total additions 1,942 1,533 3,512 6,987Other movementsDepreciation/amortisation expense (1,890) (623) (1,678) (4,191)Total other movements (1,890) (623) (1,678) (4,191)


Closing net book balance 17,011 2,492 5,032 24,535

(a) ‘Appropriation ordinary annual services’ refers to funding provided through Appropriation Bill (No. 1) 2015-16 for depreciation/amortisation expenses, DCBs or other operational expenses.


205

Office of the Commonwealth Ombudsman


207

OFFICE OF THE COMMONWEALTH OMBUDSMAN




1.3 Budget measures ....................................................................................... 211






OCO Budget Statements

209

OFFICE OF THE COMMONWEALTH OMBUDSMAN



The planned outcome of the Office of the Commonwealth Ombudsman (OCO) is fair and accountable administrative action by Australian Government entities and prescribed private sector organisations, by investigating complaints, reviewing administrative action and statutory compliance inspections and reporting.

The OCO’s strategic vision over the next five years is as follows:

to provide assurance that the Australian Government entities and prescribed private sector organisations that the OCO oversights act with integrity and treat people fairly, and

to influence enduring systemic improvement in public administration in Australia and the region.

The OCO also provides assurance to the Australian Government with respect to investigating industry practices associated with private health insurance and health care providers (in particular, the performance of the sector and the nature of complaints) and information to consumers on health insurance options.

The Telecommunications (Interception and Access) Amendment (Data Retention) Bill 2015 enacted on 13 April 2015, created new oversight responsibilities for the OCO. These new statutory oversight responsibilities involve mandatory regular compliance audits of certain agencies’ use of covert and intrusive powers and will require a significant expansion of existing capacity.

Changing expectations of Government and citizens about the delivery of public services poses challenges to all public sector entities. While being responsive to the challenges, it is critical in maintaining ongoing confidence in the Australian Public Service that standards of good public administration and integrity of Government operations are sustained. The OCO will contribute to that effort through the Office’s complaint handling, examination of systemic issues, consideration of integrity issues and inspections.


210


Table 1.1 shows the total funding from all sources available to OCO for its operations and to deliver programs and services on behalf of the government.




Table 1.1: OCO resource statement — Budget estimates for 2016-17 as at Budget May 2016

2015-16 Estimated

actual $'000

2016-17 Estimate

$'000


Prior year appropriations available 10,196 9,758Departmental appropriation (b) 21,462 20,105s 74 retained revenue receipts (c) 2,272 2,219Departmental capital budget (d) 1,181 828

Total departmental annual appropriations 35,111 32,910Total departmental resourcing 35,111 32,910Total resourcing for OCO 35,111 32,910



(b) The 2015-16 appropriation includes an amount of $0.672m which met the recognition criteria of a formal addition in revenue in 2014-15. The amount related to additional funding for redundancy costs (in accordance with part 6 division 3 of Public Governance, Performance and Accountability (Financial Reporting) Rule 2015) but at law the appropriation had not been amended before the end of the 2014-15 reporting period.

(c) Estimated retained revenue receipts under section 74 of the PGPA Act 2013.

(d) Departmental capital budgets are not separately identified in Appropriation Bill (No.1) and form part of ordinary annual services items. Please refer to Table 3.5 for further details. For accounting purposes, this amount has been designated as a 'contribution by owner'.


211

1.3 BUDGET MEASURES

OCO has no budget measures in the 2016-17 Budget.


212




Note:



213


Outcome 1: Fair and accountable administrative action by Australian Government entities and prescribed private sector organisations, by investigating complaints, reviewing administrative action and statutory compliance inspections and reporting.


This table shows how much OCO intends to spend (on an accrual basis) on achieving the outcome, broken down by program, as well as by Departmental funding sources.


2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000


Budget year (a) 1,091 985 967 995 1,015Departmental total 24,188 23,354 23,104 22,680 22,532



Outcome 1: Fair and accountable administrative action by Australian Government entities and prescribed private sector organisations, by investigating complaints, reviewing administrative action and statutory compliance inspections and reporting.

Program 1.1: Office of the Commonwealth Ombudsman


amortisation expenses, make good expenses and audit fees.



214



Outcome 1 – Fair and accountable administrative action by Australian Government entities and prescribed private sector organisations, by investigating complaints, reviewing administrative action and statutory compliance inspections and reporting.

Program 1.1 – Office of the Commonwealth Ombudsman

The objectives of this program are:

to provide assurance that the Australian Government entities and prescribed private sector organisations that the OCO oversights act with integrity and treat people fairly, and

to influence enduring systemic improvement in public administration in Australia and the region.

Delivery • Identifying and reporting on systemic issues in public administration, including making recommendations

• Influencing Australian Government entities, prescribed private sector organisations and our regional partners to improve complaint handling systems and administration of programs through stakeholder engagement and guidance

• Assisting regional partners consistent with the Australian Aid priorities

• ensuring OCO’s complaint handling service is delivered within its service standards

• Ensuring office statutory requirements in relation to oversight of entities and prescribed private sector organisations compliance with legislation and policy in the use of selected intrusive or coercive powers are met

• Inspecting and reporting on entity and private sector organisation compliance with accountability principles and policy requirements

• Ensuring office statutory requirements in relation to Commonwealth public interest disclosures are met

• Providing consumers with accurate and up to date private health insurance information.



215

Table 2.1.2: Performance criteria for Outcome 1(continued)



2015-16 Estimated Actual:

Percentage of systemic issue recommendations accepted by entities

Stakeholders participating in engagement activities are satisfied

The Office obligations under Australian Aid arrangements are met

OCO complaint handling service percentage of complaints finalised within the OCO’s service standards

OCO statutory requirements in relation to law enforcement and immigration detention percentage of statutory requirements met

Inspect and report of entity and private sector organisation compliance percentage of recommendations accepted by entities

Percentage of statutory requirements met in relation to public interest disclosures

Stakeholders participating in public interest disclosure engagement activities are satisfied

Target of 80% acceptance has been successfully achieved to date

90% Stakeholder satisfaction target has been exceeded in some circumstances and not met in others resulting in an average of 87% for the Office

Target of 80% outputs delivered has been exceeded with 96% achieved

Target of 100% of reporting obligations has been met with 100% achieved

Target of 85% finalised has not been achieved with the latest result at 80% up from 73% at the beginning of the year

Target of 100% has been

achieved in relation to the law enforcement function

Target of 80% of recommendations accepted by entities has been exceeded with 100% of law enforcement recommendations accepted

Target of 100% of statutory requirements has been met

Target of 90% stakeholder satisfaction has been exceeded this year with an average of 98% satisfaction



216

Table 2.1.2: Performance criteria for Outcome 1(continued)


Reliable information is provided to consumers via the private health insurance consumer website.

Target of 80% User Satisfaction the average user satisfaction for this year is currently sitting at 80% and this is expected to be maintained for the remainder of the year.

2016-17 As per 2015-16. As per 2015-16.


Purposes (a) Provide assurance that the organisations we oversight act with integrity and treat people fairly

Influence systemic improvement in public administration in Australia and the region.



217





The Entity Resource Statement (Table 1.1) provides a consolidated view of the resources available to the OCO in 2016-17. This includes equity injections (provided as a Departmental Capital Budget) and appropriations receivable. The Comprehensive Income Statement (Table 3.2.1) shows only the operating appropriation provided in 2015-16.



OCO is budgeting for a break-even operating result, adjusted for depreciation and amortisation expense in 2016-17 and the forward estimate years. There will be an initial reduction in employee costs and supplier costs in 2016-17 in line with the reduction in funding provided for the oversight functions of the Telecommunications (Interception and Access) Amendment (Data Retention) Act 2015 and the transfer of the Private Health Insurance Ombudsman function.

Supplier and employee expenses will continue to match the level of appropriation.


The OCO’s budgeted net asset position at 30 June 2017 is estimated to be $5.8 million down from $5.9 million in 2015-16. The primary liability continues to be employee provisions with the other payables expected to remain stable at current levels.


The cash flow is consistent with, and representative of, the transactions reported in the Comprehensive Income Statement (Table 3.1), adjusted for non-cash items and anticipated capital purchases.

The OCO’s working cash balance is in accordance with the ANAO’s agreement with the Department of Finance. Cash and cash equivalents have reduced from the levels of 2015-16 which was higher to accommodate the salary pay run.


218


The Departmental Capital Budget Statement (Table 3.5) shows the expected capital works program for the current and forward years. Total capital expenditure in 2016-17 is estimated to be $0.1 million. In addition, the OCO forecasts spending a further $2.5 million on capital works over the forward estimates.


219



2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000

EXPENSESEmployee benefits 17,301 16,820 16,859 16,802 16,783Suppliers 5,796 5,549 5,278 4,883 4,734Depreciation and amortisation 1,046 940 922 950 970




Other 45 45 45 45 45Total gains 45 45 45 45 45Total own-source income 2,317 2,264 1,990 1,440 1,183Net (cost of)/contribution by services (21,826) (21,045) (21,069) (21,195) (21,304)

Revenue from Government 20,780 20,105 20,147 20,245 20,334Surplus/(deficit) attributable to the Australian Government (1,046) (940) (922) (950) (970)


$'0002016-17

$'0002017-18

$'0002018-19

$'0002019-20



appropriations (a) 1,046 940 922 950 970

Total comprehensive income/(loss) - as per the statement of comprehensive income (1,046) (940) (922) (950) (970)




220



2016-17Budget

$'000


$'000


$'000


$'000


Cash and cash equivalents 113 113 113 113 113Trade and other receivables 10,182 9,744 9,605 9,257 9,042Other financial assets 40 23 22 20 19


Property, plant and equipment 2,275 2,225 2,282 2,289 2,325Intangibles 1,372 1,310 1,166 1,049 888Other non-financial assets 342 298 263 263 263


Suppliers 664 644 638 625 620Other payables 3,165 2,824 2,581 2,294 1,978


Employee provisions 4,377 4,377 4,442 4,467 4,503Other provisions 181 113 113 - -



Total equity 5,937 5,755 5,677 5,605 5,549 * ‘Equity’ is the residual interest in assets after the deduction of liabilities. Prepared on Australian Accounting Standards basis.


221


Retained earnings

$'000

Asset revaluation

reserve$'000


Total equity

$'000



Surplus/(deficit) for the period (940) - - (940)Total comprehensive income (940) - - (940)

of which:Attributable to the Australian Government (940) - - (940)


Departmental capital budget (DCB) - - 828 828

Other (70) - - (70)

Sub-total transactions with owners (70) - 828 758

Estimated closing balance as at 30 June 2017 (4,292) 1,213 8,834 5,755

Closing balance attributable to the Australian Government (4,292) 1,213 8,834 5,755 Prepared on Australian Accounting Standards basis.


222


2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000


Appropriations 19,745 20,543 20,286 20,594 20,549

Sale of goods and rendering of services 2,301 2,219 1,945 1,394 1,138Net GST received 49 1 1 2 1Other 173 (131) (22) (6) -



Total cash used 23,130 22,632 22,210 21,984 21,688Net cash from/(used by) operating activities (862) - - - -INVESTING ACTIVITIESCash used

Purchase of property, plant and equipment and intangibles 1,181 828 835 840 845

Total cash used 1,181 828 835 840 845Net cash from/(used by) investing activities (1,181) (828) (835) (840) (845)FINANCING ACTIVITIESCash received

Contributed equity 1,181 828 835 840 845Total cash received 1,181 828 835 840 845Net cash from/(used by) financing activities 1,181 828 835 840 845Net increase/(decrease) in cash held (862) - - - -




223



2016-17Budget

$'000


$'000


$'000


$'000

NEW CAPITAL APPROPRIATIONSCapital budget - Bill 1 (DCB) 1,181 828 835 840 845

Total new capital appropriations 1,181 828 835 840 845Provided for:

Purchase of non-financial assets 1,181 828 835 840 845Total items 1,181 828 835 840 845



DCB (a) 1,181 828 835 840 845TOTAL 1,181 828 835 840 845RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE

Total purchases 1,181 828 835 840 845Total cash used to acquire assets 1,181 828 835 840 845

(a) Does not include annual finance lease costs. Include purchases from current and previous years' Departmental Capital Budgets (DCBs).



224

Table 3.6: Statement of asset movements (Budget year 2016-17) Other property,

plant and equipment

$'000


intangibles$'000

Total

$'000As at 1 July 2016

Gross book value 3,991 4,188 8,179Accumulated depreciation/amortisation and impairment (1,716) (2,816) (4,532)

Opening net book balance 2,275 1,372 3,647Capital asset additions


annual services (a) 532 296 828Total additions 532 296 828Other movementsDepreciation/amortisation expense (582) (358) (940)Total other movements (582) (358) (940)

As at 30 June 2017Gross book value 4,523 4,484 9,007Accumulated depreciation/ amortisation and impairment (2,298) (3,174) (5,472)

Closing net book balance 2,225 1,310 3,535 (a) 'Appropriation ordinary annual services' refers to funding provided through Appropriation Bill (No.1)



225

Office of the Inspector-General of Intelligence and Security


227

OFFICE OF THE INSPECTOR-GENERAL OF

INTELLIGENCE AND SECURITY




1.3 Budget measures ....................................................................................... 231






OIGIS Budget Statements

229

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 agencies act legally and with propriety by inspecting, inquiring into and reporting on their activities.

OIGIS provides a specialised review mechanism for the six Australian intelligence agencies namely:

Australian Security Intelligence Organisation (ASIO)

Australian Secret Intelligence Service (ASIS)

Australian Geospatial-Intelligence Organisation (AGO)

Defence Intelligence Organisation (DIO)

Australian Signals Directorate (ASD)

Office of National Assessments (ONA).

OIGIS undertakes proactive inspections; formal inquiries either ‘own motion’, as a response to complaints or at the request of the Prime Minister. During formal inquiries, the Inspector-General of Intelligence and Security Act 1986 provides for the use of strong coercive powers, immunities and protections.

The OIGIS recognises the importance of its oversight being as visible and transparent as possible, noting that sharing lessons learnt can lead to improvements in public administration, and recognising the strong public interest in intelligence and security matters and the need to establish and maintain the credibility of oversight. Accordingly the office will continue to make public as much of its work as is possible within appropriate security constraints.


230


Table 1.1 shows the total funding from all sources available to OIGIS for its operations and to deliver programs and services on behalf of the government.




Table 1.1: OIGIS resource statement — Budget estimates for 2016-17 as at Budget May 2016

2015-16 Estimated

actual $'000

2016-17 Estimate

$'000

Departmental


Prior year appropriations available 2,986 3,215Departmental appropriation 3,050 3,118

s 74 retained revenue receipts (b) 185 -

Departmental capital budget (c) 25 25Total departmental annual appropriations 6,246 6,358

Total departmental resourcing 6,246 6,358Total resourcing for entity OIGIS 6,246 6,358






231

1.3 BUDGET MEASURES

OIGIS has no budget measures in the 2016-17 Budget.


232




Note:



233


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.


This table shows how much OIGIS intends to spend (on an accrual basis) on achieving the outcome, broken down by program, as well as by Departmental funding sources.


2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000


Budget year (a) 131 140 166 166 166Departmental total 3,181 3,258 3,326 3,378 3,429



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.

Program 1.1: Office of the Inspector-General of Intelligence and Security


amortisation expenses, make good expenses, audit fees, IT and other services provided free of charge.



234



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.

Program 1.1 – Office of the Inspector-General of Intelligence and Security

The objectives of this program are to fulfil the responsibilities and functions outlined in the Inspector-General of Intelligence and Security Act 1986 and in other relevant legislation, and to conduct activities to facilitate the role of providing independent assurance as to whether Australia’s intelligence agencies are acting legally and with propriety.

Delivery Conducting inquiries as appropriate (which may be ‘own motion’, in response to complaints or referrals, or at the request of intelligence agency ministers or the Prime Minister)

Undertaking comprehensive inspection and visit programs to monitor and review intelligence agencies’ operational activity

Providing effective and timely responses to complaints or referrals received from members of the public, Ministers or members of parliament.

Facilitating the investigation of public interest disclosures relating to intelligence agencies

Providing information to parliamentary committees and others on oversight issues relating to intelligence agency powers and functions

Providing evidence to the Administrative Appeals Tribunal and the Information Commissioner as required under relevant legislation

Undertaking presentations to new and existing employees of intelligence agencies to ensure an awareness and understanding of their responsibilities and accountability

Liaising with other accountability and integrity agencies on issues of mutual interest



235




2015-16 The breadth and depth of inspection work undertaken. OIGIS expects to examine a high percentage of activity categories within agencies

The timeliness of completion of inquiries or complaint resolution. OIGIS expects inquiries and complaints to be resolved within a reasonable time depending on complexity

The level of acceptance by agencies, complainants and Ministers of findings and recommendations of inquiries conducted. OIGIS expects 100% acceptance of inspection or inquiry findings

The extent to which there has been change within the intelligence agencies as a result of activities of OIGIS. OIGIS expects 100% implementation of recommendations by agencies.

Targets were not included in the 2015-16 PBS

2016-17 There are four key performance indicators:

Range of inspection work undertaken

Timeliness of completion of inquiries or complaint resolution

Level of acceptance by intelligence agencies of findings and recommendations of inquiries conducted

Extent to which there has been change within the intelligence agencies as a result of activities of OIGIS.

Performance will be measured by both quantitative and qualitative information.

Inspection of at least 75% of each agency’s activity categories

90% of complaints acknowledged within five business days, and 85% of visa-related complaints resolved within two weeks

100% of inquiry recommendations accepted

100% of inquiry recommendations implemented

Completion of at least 9 outreach activities per year.


Purpose (a) To assist Ministers in the oversight and review of the Australian intelligence agencies, to provide assurance to Parliament and the public about the scrutiny of the operation of those agencies, and to assist in investigating intelligence and security matters.



236





The Entity Resource Statement (Table 1.1) provides a consolidated view of all the resources available to the entity in 2016-17. This includes equity injections and appropriations receivable that is yet to be drawn down to cover payables and provisions in the Budgeted Departmental Balance Sheet (Table 3.2). The Comprehensive Income Statement (Table 3.1) shows only the operating appropriations provided in 2016-17.



OIGIS is budgeting for a break-even operating result, adjusted for depreciation and amortisation expense, in 2016-17 and the forward years.

As in previous years, the most significant component of the standard operating expenditure will be salary related, which reflects the nature of the entity’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: $0.02 million per year) and maintenance of the internal secure communications network provided by the Australian Signals Directorate (estimated value: $0.002 million per year).


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’ 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.


237


The capital budget for 2016-17 is $0.025 million.

Departmental Statement of Changes in Equity

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.


238



2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000

EXPENSESEmployee benefits 2,775 2,857 2,955 3,034 2,893Suppliers 393 388 332 305 497Depreciation and amortisation 13 13 39 39 39


Other 118 127 127 127 127Total gains 118 127 127 127 127Total own-source income 118 127 127 127 127Net (cost of)/contribution by services (3,063) (3,131) (3,199) (3,251) (3,302)Revenue from Government 3,050 3,118 3,160 3,212 3,263Surplus/(deficit) attributable to the Australian Government (13) (13) (39) (39) (39)


$'0002016-17

$'0002017-18

$'0002018-19

$'0002019-20

$'000Total comprehensive income/(loss) excluding depreciation/amortisation expenses previously funded through revenue appropriations.

- - - - -


appropriations (a) (13) (13) (39) (39) (39)

Total comprehensive income/(loss) - as per the statement of comprehensive income

(13) (13) (39) (39) (39)

(a) From 2010-11, the Government introduced net cash appropriation arrangements where Bill 1 revenue

appropriations for the depreciation/amortisation expenses of non-corporate Commonwealth entities (and select corporate Commonwealth entities) 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 3.5 Departmental Capital Budget Statement.



239



2016-17Budget

$'000


$'000


$'000


$'000


Cash and cash equivalents 175 175 175 175 175Trade and other receivables 80 80 80 80 80Appropriations Receivable 2,943 2,943 2,918 2,918 2,918

Total financial assets 3,198 3,198 3,173 3,173 3,173

Non-financial assetsProperty, plant and equipment 83 121 132 118 104

Total non-financial assets 83 121 132 118 104

Total assets 3,281 3,319 3,305 3,291 3,277

LIABILITIESPayables

Suppliers 149 149 149 149 149Total payables 149 149 149 149 149 Provisions

Employee provisions 840 866 866 866 866

Total provisions 840 866 866 866 866

Total liabilities 989 1,015 1,015 1,015 1,015 Net assets 2,292 2,304 2,290 2,276 2,262 EQUITY*

Contributed equity 503 528 553 578 603Reserves 16 16 16 16 16Retained surplus (accumulated deficit) 1,773 1,760 1,721 1,682 1,643




240


Retained earnings

$'000

Asset revaluation

reserve$'000


Total equity

$'000

Opening balance as at 1 July 2016Balance carried forward from previous period 1,773 16 503 2,292

Adjusted opening balance 1,773 16 503 2,292Comprehensive income


of which:Attributable to the Australian Government (13) - - (13)


Departmental capital budget (DCB) - - 25 25Sub-total transactions with owners - - 25 25Estimated closing balance as at 30 June 2017 1,760 16 528 2,304

Closing balance attributable to the Australian Government 1,760 16 528 2,304 Prepared on Australian Accounting Standards basis.


241


2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000


Appropriations 3,018 2,975 2,980 3,034 2,893Other 187 - 127 127 127


Employees 2,775 2,831 2,955 3,034 2,893Suppliers 267 118 127 127 127Other 185 - - - -

Total cash used 3,227 2,949 3,082 3,161 3,020Net cash from/(used by) operating activities (22) 26 25 - -INVESTING ACTIVITIESCash used

Purchase of property, plant and equipment and intangibles 69 51 50 25 25

Total cash used 69 51 50 25 25Net cash from/(used by) investing activities (69) (51) (50) (25) (25)FINANCING ACTIVITIESCash received

Contributed equity 91 25 25 25 25Total cash received 91 25 25 25 25Net cash from/(used by) financing activities 91 25 25 25 25Net increase/(decrease) in cash held - - - - -




242



2016-17Budget

$'000


$'000


$'000


$'000




Total items 25 25 25 25 25PURCHASE OF NON-FINANCIAL ASSETS


DCB (a) 69 51 50 25 25

TOTAL 69 51 50 25 25RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE

Total purchases 69 51 50 25 25

Total cash used to acquire assets 69 51 50 25 25 (a) Includes purchases from current and previous years’ Departmental capital budgets (DCBs).



243

Table 3.6: Statement of asset movements (Budget year 2016-17) Property, plant and equipment

$'000

Total

$'000

As at 1 July 2016Gross book value 132 132Accumulated depreciation/amortisation and impairment (49) (49)

Opening net book balance 83 83Capital asset additions

Estimated expenditure on new or replacement assetsBy purchase - appropriation ordinary annual services (a) 51 51Total additions 51 51Other movementsDepreciation/amortisation expense (13) (13)Total other movements (13) (13)

As at 30 June 2017

Gross book value 183 183Accumulated depreciation/ amortisation and impairment (62) (62)

Closing net book balance 121 121 (a) ‘Appropriation ordinary annual services’ refers to funding provided through Appropriation Bill (No. 1)



245

Office of the Official Secretary to the Governor-General


247

OFFICE OF THE OFFICIAL SECRETARY TO THE

GOVERNOR-GENERAL




1.3 Budget measures ....................................................................................... 251






OOSGG Budget Statements

249

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 program, 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.


Table 1.1 shows the total funding from all sources available to OOSGG for its operations and to deliver programs and services on behalf of the government.





250

Table 1.1: OOSGG resource statement — Budget estimates for 2016-17 as at Budget May 2016

2015-16 Estimated

actual $'000

2016-17 Estimate

$'000

Departmental


Prior year appropriations available 2,576 2,486Departmental appropriation 11,226 11,080Departmental capital budget (b) 396 395

Total departmental annual appropriations 14,198 13,961Total departmental resourcing 14,198 13,961AdministeredAnnual appropriations - ordinary annual services

Outcome 1 1,410 1,431

Administered capital budget (c) 2,344 2,936Total administered annual appropriations 3,754 4,367

Total administered special appropriations (d)425 425

Total administered resourcing 4,179 4,792Total resourcing for OOSGG 18,377 18,753



(b) Departmental capital budgets are not separately identified in Appropriation Bill (No.1) and form part of ordinary annual services items. Please refer to Table 3.5 for further details. For accounting purposes, this amount has been designated as a 'contribution by owner’.

(c) Administered capital budgets are not separately identified in Appropriation Bill (No. 1) and form part of ordinary annual services items. Please refer to Table 3.10 for further details. For accounting purposes, this amount is designated as a 'contribution by owner'.

(d) For further information on special appropriations and special accounts, please refer to Budget Paper No. 4 - Agency Resourcing. Please also see Table 2.1 for further information on outcome and program expenses broken down by various funding sources, e.g. annual appropriations, special appropriations and special accounts.


251

1.3 BUDGET MEASURES

OOSGG has no budget measures in the 2016-17 Budget.


252




Note:



253


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.


This table shows how much OOSGG intends to spend (on an accrual basis) on achieving the outcome, broken down by program, as well as by Administered and Departmental funding sources.


2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000


s 74 Retained revenue receipts (a)

Special appropriations 425 425 425 425 425Expenses not requiring appropriation in the

Budget year (b) 796 747 728 864 954Administered total 2,631 2,603 2,645 2,823 2,926


Budget year (b) 416 410 441 449 445Departmental total 11,642 11,490 11,602 11,709 11,840



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.

Program 1.1: Support of the Governor-General and Official Activities


(b) Expenses not requiring appropriation in the Budget year are made up of depreciation expenses, amortisation expenses, make good expenses and audit fees.



254



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.

Program 1.1 – The objective of this program is to support the Governor-General and Official Functions. It comprises two components: support for the Governor-General and administration of the Australian Honours and Awards system.

Delivery (component 1)

The program component deliverables include:

• executive support—providing advice to the Governor-General, planning, implementing and managing Their Excellencies’ forward program of engagements, and liaising with representatives of governments, related authorities, and community groups

• personal support— providing support for Their Excellencies and hospitality services for official functions

• administrative services— providing governance advice and administrative services to OOSGG and managing the Governor-General’s official residences, including maintenance of property, equipment and grounds.

Performance information(component 1)


2015-16 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.

It is expected all performance criteria as outlined will be met.


Delivery (component 2)

The program component will be delivered by administering, on behalf of the Governor-General, the Australian honours and awards system, including all civilian honours and awards for member of the Australian Defence force.



255


Performance information (component 2)


2015-16 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.

It is expected all performance indicators as outlined in the 2015-16 PBS will be met.



256



2016-17 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

Provide secretariat support to the Australian honours advisory bodies

Undertake the administrative tasks associated with the approval of recipients in the Australian honours system and subsequent announcement where applicable

Procure Australian honours insignia, warrants and investiture items.

Facilitate the approval of, and changes to, governing instruments within the Australian honours system

Provide insignia to State/Territory Government Houses, service organisations and individuals for issue, and arrange local investitures.

The Governor-General and other key stakeholders express satisfaction with the administration of the Australian Honours and Awards system and support provided

Activities comply with the governing instruments for honours and awards, including the Constitution for the Order of Australia

The medals and insignia meet design specifications, adequate stock levels are maintained and control processes are adhered to

Ensure the accurate and timely issue of insignia and other resources for investitures and honours list announcements.


Purpose (a) The OOSGG was established in 1984, by amendment to the Governor-General Act 1974, to support the Governor-General in the fulfilment of his/her responsibilities. It has one Outcome and one Program, which has two components as outlined above.



257





The OOSGG does not have any significant differences between entity resourcing and the financial statements.


Departmental


The OOSGG is budgeting for a break-even operating result, adjusted for depreciation and amortisation expense, in 2016-17 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 (Table 3.2.1) 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 OOSGG’s primary liability is accrued employee entitlements.

Administered

Schedule of Budgeted Income and Expenses Administered on Behalf of Government

In 2016-17, the OOSGG will receive administered appropriations of $0.4 million for the Governor-General’s salary, $1.4 million for support of the Australian Honours and Awards System and $2.9 million for the Administered Capital Budget to sustain the capability and the condition of its Heritage properties.


258

Schedule of Budgeted Assets and Liabilities Administered on Behalf of Government

The value of land and buildings are expected to increase in 2016-17 and the forward years due to the completion of projects developed under the Asset Management Strategy.


259



2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000

EXPENSESEmployee benefits 7,656 7,659 7,738 7,749 7,964Suppliers 3,627 3,478 3,480 3,568 3,488Depreciation and amortisation 359 353 384 392 388


Other 57 57 57 57 57Total gains 57 57 57 57 57Total own-source income 57 57 57 57 57Net (cost of)/contribution by services (11,585) (11,433) (11,545) (11,652) (11,783)Revenue from Government 11,226 11,080 11,161 11,260 11,395Surplus/(deficit) attributable to the Australian Government (359) (353) (384) (392) (388)


$'0002016-17

$'0002017-18

$'0002018-19

$'0002019-20



appropriations (a) (359) (353) (384) (392) (388)

Total comprehensive income/(loss) - as per the statement of comprehensive income (359) (353) (384) (392) (388)




260



2016-17Budget

$'000


$'000


$'000


$'000




Land and buildingsProperty, plant and equipment 1,012 1,044 1,050 1,135 1,167Intangibles 206 216 225 151 137Other non-financial assets 33 23 23 23 23


Suppliers 171 171 171 171 171Other payables 185 185 185 185 185

Total payables 356 356 356 356 356 Provisions


Contributed equity 1,446 1,841 2,240 2,643 3,049Reserves 239 239 239 239 239Retained surplus (accumulated deficit) 281 (72) (456) (848) (1,236)

Total equity 1,966 2,008 2,023 2,034 2,052 * ‘Equity’ is the residual interest in assets after the deduction of liabilities. Prepared on Australian Accounting Standards basis.


261


Retained earnings

$'000

Asset revaluation

reserve$'000


Total equity

$'000

Opening balance as at 1 July 2016Balance carried forward from previous period 281 239 1,446 1,966

Adjusted opening balance 281 239 1,446 1,966Comprehensive income


Distributions to ownersDepartmental capital budget (DCB) - - 395 395

Sub-total transactions with owners - - 395 395

Estimated closing balance as at 30 June 2017 (72) 239 1,841 2,008

Closing balance attributable to the Australian Government (72) 239 1,841 2,008 Prepared on Australian Accounting Standards basis.


262

Table 3.4: Budgeted Departmental Statement of Cash Flows (for the period ended 30 June)

2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000


Appropriations 11,795 11,366 11,507 11,260 11,395Total cash received 11,795 11,366 11,507 11,260 11,395Cash used

Employees 7,886 7,630 7,709 7,749 7,964Suppliers 3,570 3,421 3,423 3,511 3,431Net GST paid 339 315 375 - -

Total cash used 11,795 11,366 11,507 11,260 11,395INVESTING ACTIVITIESCash received

Other 396 395 399 403 406Total cash received 396 395 399 403 406Cash used

Purchase of property, plant and equipment and intangibles 396 395 399 403 406

Total cash used 396 395 399 403 406Cash and cash equivalents at the beginning of the reporting period 496 496 496 496 496

Cash and cash equivalents at the end of the reporting period 496 496 496 496 496Prepared on Australian Accounting Standards basis.


263



2016-17Budget

$'000


$'000


$'000


$'000


Total new capital appropriations 396 395 399 403 406

Provided for:Purchase of non-financial assets 396 395 399 403 406

Total items 396 395 399 403 406



DCB (a) 396 395 399 403 406

TOTAL 396 395 399 403 406


Total purchases 396 395 399 403 406

Total cash used to acquire assets 396 395 399 403 406 (a) Does not include annual finance lease costs. Include purchases from current and previous years'

Departmental Capital Budgets (DCBs).



264

Table 3.6: Statement of asset movements (Budget year 2016-17) Property, plant and equipment

$'000


intangibles$'000

Total

$'000

As at 1 July 2016Gross book value 1,998 859 2,857Accumulated depreciation/amortisation and impairment (986) (653) (1,639)

Opening net book balance 1,012 206 1,218Capital asset additions



annual services (a) 340 55 395Total additions 340 55 395Other movementsDepreciation/amortisation expense (308) (45) (353)Total other movements (308) (45) (353)

As at 30 June 2017Gross book value 2,338 914 3,252Accumulated depreciation/ amortisation and impairment (1,294) (698) (1,992)

Closing net book balance 1,044 216 1,260 (a) 'Appropriation ordinary annual services' refers to funding provided through Appropriation Bill (No.1) 2015-16 for depreciation/amortisation expenses, DCBs or other operational expenses.



265


2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000

EXPENSESSuppliers 1,410 1,431 1,492 1,534 1,547Personal benefits 425 425 425 425 425Depreciation and amortisation 796 747 728 864 954

Total expenses administered on behalf of Government 2,631 2,603 2,645 2,823 2,926LESS:OWN-SOURCE INCOMENon-taxation revenue

Sale of goods and rendering of services 27 27 27 27 27

Total non-taxation revenue 27 27 27 27 27Total own-source revenue administered on behalf of Government 27 27 27 27 27Total own-sourced income administered on behalf of Government 27 27 27 27 27Net cost of/(contribution by) services 2,604 2,576 2,618 2,796 2,899Surplus/(deficit) before income tax 2,604 2,576 2,618 2,796 2,899Surplus/(deficit) after income tax 2,604 2,576 2,618 2,796 2,899 Prepared on Australian Accounting Standards.


266


2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000


Cash and cash equivalents 1 1 1 1 1Trade and other receivables 19 19 19 19 19

Total financial assets 20 20 20 20 20Non-financial assets

Land and buildings 91,482 93,224 95,167 96,303 98,074Property, plant and equipment 1,836 2,283 2,838 3,163 3,333Inventories 920 971 971 971 971

Total non-financial assets 94,238 96,478 98,976 100,437 102,378Total assets administered on behalf of Government 94,258 96,498 98,996 100,457 102,398Net assets/(liabilities) 94,258 96,498 98,996 100,457 102,398 Prepared on Australian Accounting Standards basis.


267


2015-16 Estimated

actual$'000

2016-17Budget

$'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 1,410 1,431 1,492 1,534 1,547

Total cash used 1,855 1,876 1,937 1,986 1,999Net cash from/(used by) operating activities (1,828) (1,849) (1,910) (1,959) (1,972)INVESTING ACTIVITIESCash received

Administered Capital Budget (ACB) 2,344 2,936 3,226 2,325 2,895Total cash received 2,344 2,936 3,226 2,325 2,895Cash used


Total cash used 2,344 2,936 3,226 2,325 2,895Net increase/(decrease) in cash held (1,828) (1,849) (1,910) (1,959) (1,972)

Cash and cash equivalents at beginning of reporting period 1 1 1 1 1

- Appropriations 1,855 1,876 1,937 1,986 1,999

Total cash from Official Public Account 1,855 1,876 1,937 1,986 1,999Cash to Official Public Account for:

- Appropriations (27) (27) (27) (27) (27)Total cash to Official Public Account (27) (27) (27) (27) (27)

Cash and cash equivalents at end of reporting period 1 1 1 1 1Prepared on Australian Accounting Standards basis.


268

Table 3.10: Administered capital budget statement (for the period ended 30 June) 2015-16


2016-17Budget

$'000


$'000


$'000


$'000

NEW CAPITAL APPROPRIATIONSCapital budget - Bill 1 (ACB) 2,344 2,936 3,226 2,325 2,895

Total new capital appropriations 2,344 2,936 3,226 2,325 2,895

Provided for:Purchase of non-financial assets 2,344 2,936 3,226 2,325 2,895

Total items 2,344 2,936 3,226 2,325 2,895



ACB (a) 2,344 2,936 3,226 2,325 2,895

TOTAL 2,344 2,936 3,226 2,325 2,895


Total accrual purchases 2,344 2,936 3,226 2,325 2,895

Total cash used to acquire assets 2,344 2,936 3,226 2,325 2,895 (a) Includes both current Bill 2 and prior Act 2/4/6 appropriations and special capital appropriations.



269

Table 3.11: Statement of administered asset movements (Budget year 2016-17) Land

$'000

Buildings

$'000

Property, plant and

equipment$'000

Total

$'000

As at 1 July 2016Gross book value 63,000 30,438 2,027 95,465Accumulated depreciation/amortisation and impairment - (1,956) (191) (2,147)

Opening net book balance 63,000 28,482 1,836 93,318CAPITAL ASSET ADDITIONS



annual services (a) - 2,430 506 2,936Total additions - 2,430 506 2,936Other movements

Depreciation/amortisation expense - (688) (59) (747)Total other movements - (688) (59) (747)

As at 30 June 2017Gross book value 63,000 32,868 2,533 98,401Accumulated depreciation/amortisation and impairment - (2,644) (250) (2,894)

Closing net book balance 63,000 30,224 2,283 95,507 (a) ‘Appropriation ordinary annual services' refers to funding provided through Appropriation Bill (No.1)

2016-17 for depreciation/amortisation expenses, ACBs or other operational expenses.


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Torres Strait Regional Authority


273

TORRES STRAIT REGIONAL AUTHORITY




1.3 Budget Measures ....................................................................................... 278






TSRA Budget Statements

275

TORRES STRAIT REGIONAL AUTHORITY



The Torres Strait Regional Authority (TSRA) is the peak Commonwealth representative body for Torres Strait Islander and Aboriginal people living in the Torres Strait Region.

The role of the TSRA is progress toward closing the gap for Torres Strait Islander and Aboriginal people living in the Torres Strait region, and to empower Torres Strait Islander and Aboriginal people living in the region to determine their own affairs based on the Ailan Kastom (island custom) of the Torres Strait. The TSRA also provides advice to the Minister for Indigenous Affairs about issues that are relevant to Torres Strait Islander and Aboriginal people living in the Torres Strait region.

The TSRA also performs separate functions under the Native Title Act 1993 (Cth) as the Native Title Representative Body for the Torres Strait region.

The TSRA’s strategic plan is articulated in the TSRA’s Torres Strait Development Plan 2014–18 (the Development Plan). The Development Plan and its eight program components have been informed and driven by, the Torres Strait and Northern Peninsula Area Regional Plan 2009–29 (the Regional Plan) and the goals and aspirations of the residents of the Torres Strait. The 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)

‘Ngalpan moebaygal thoepoeriwoeyamoeyn, ngalpan ya kuduthoeraynu, ngalpan igililmaypa, sepa setha wara goeygil sey boey wagel’ (KALA KAWAU YA).

The TSRA’s Development Plan also aligns with the Australian Government’s Indigenous Advancement Strategy.

Priority areas for TSRA include:

continuing to drive the regional planning processes, including improving the integration of service delivery between governments at all levels working in the region and engaging with local stakeholders, informing them of the TSRA’s Development Plan


276

monitoring, evaluating and delivering advice on the sustainable management of the natural resources (land and sea) of the Torres Strait communities. This includes the sustainable use of marine turtle and dugong; engagement with neighbouring PNG treaty villages on environmental issues and maintaining the natural resource base to foster economic opportunity and maintain the cultural values that are linked to natural assets

implementing the Torres Strait Climate Change Strategy to help reduce climate change risks and build regional and community resilience while building an understanding to inform a flexible and adaptive approach to responding to future uncertainties

enhancing the Torres Strait region’s wealth by creating sustainable industries and increasing employment opportunities for our people equivalent to the wider Australian community

protecting, maintaining and progressing Native Title rights and recognition over the Torres Strait region’s land and sea country

Securing whole-of-government infrastructure investment for Torres Strait Communities in the region to support healthy homes and healthy living environments, including progressing the Major Infrastructure Programme (MIP), a bilateral commitment between the Australian and Queensland Governments, to build essential health infrastructure in the region including water supply and reticulation; sanitation and wastewater; community roads and drainage; serviced housing lots; and asset sustainability

Improving access to safe and accessible community infrastructure and improved land and sea communications systems

Protect, promote, revitalise and maintain Torres Strait Islander and Aboriginal traditions and cultural heritage

leading the coastal management infrastructure project to protect existing community infrastructure from rising seawater.

Further details of the TSRA’s objectives and performance monitoring are set out in Section 2 of this document.


277


Table 1.1 shows the total funding from all sources available to TSRA for its operations and to deliver programs and services on behalf of the government.



Table 1.1: TSRA resource statement — Budget estimates for 2016-17 as at Budget May 2016

2015-16 estimated

actual$'000

2016-17 estimate

$'000

Opening balance/cash reserves at 1 July 2,790 1,352Funds from Government


Outcome 1 39,498 35,919Total funds from Government 39,498 35,919Funds from other sources

Interest 1,462 1,160Sale of goods and services 556 505Other 9,414 10,023

Total funds from other sources 11,432 11,688Total net resourcing for TSRA 53,720 48,959




278

1.3 BUDGET MEASURES

The TSRA has no budget measures in the 2016-17 Budget.


279




Note:



280


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.


This table shows how much TSRA intends to spend (on an accrual basis) on achieving the outcome, broken down by program, as well as by Departmental funding sources.

Table 2.1.1 Budgeted expenses for Outcome 1

2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000




Program 1.1: Torres Strait Regional Development

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.



281




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.

Program 1.1 – The objective of this program is currently delivered through eight activities, which are derived from the Development Plan.

Delivery Increasing economic development by:

improving commercial capability of Torres Strait Islander and Aboriginal people in the region

providing access to capital for commercially viable businesses.

Improving the use of fisheries by:

Implementing commercially and environmentally sustainable strategies to increase Torres Strait Islander and Aboriginal ownership of the local fishing industry.

Maintaining culture, art and heritage by:

supporting an active and sustainable arts and craft industry in the region

integrating cultural values and protocols into service planning and management practice

preserving and promoting cultural heritage and histories of the region.

Improving Native Title claim outcomes by:

assisting with negotiating successful Future Acts and Indigenous Land Use Agreements

assisting with Native Title claims, including the relevant Fisheries legislation and Torres Strait Sea Claim Part A

supporting PBCs to understand and meet their responsibilities under the Native Title Act

Improving environmental management by:

strengthening sustainable use, protection and management of natural and cultural resources

facilitating community adaptation to climate change impacts, including sea level rise

supporting community sustainable horticulture.

Enhancing governance and leadership by:

improving communication, cultural competence and service delivery within a community development framework across governments

strengthening Torres Strait Islander and Aboriginal organisational leadership and governance.

Improving Community health by:

Investing in whole-of-government infrastructure to support healthy homes and healthy living environments

Implementing policies to support community managed delivery of primary and public health care services based on regional needs and priorities

improving access to affordable fresh and healthy foods

supporting more active and healthy communities

ensuring affordable home ownership is available across the region.


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Table 2.1.2: Performance criteria for Outcome 1 (continued) Delivery Improving Community health by:

investing in effective community and social services

supporting law enforcement and community safety programs

ensuring communities have access to appropriate transport infrastructure.



2015-16 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 Fishers 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 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

Iincrease 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.

The Benefits and Targets for each of the TSRA’s eight activity areas are set out in the TSRA’s (2014-2018) Development Plan.

2016-17 In addition to the criteria above:

the percentage ownership of Torres Strait Commercial Fisheries by Torres Strait Islanders and Aboriginal People in the region

improve regional environmental health, telecommunication and marine infrastructure.

The Benefits and Targets for each of the TSRA’s eight activity areas are set out in the TSRA’s (2014-2018) Development Plan.

2017-18 and beyond

As per 2016-17. As per 2016-17.

Purpose (a) The TSRA’s Purpose Statement, in the Corporate plan – is the same as the TSRA’s Outcome Statement above.



283





There are no differences between the TSRA’s resourcing and financial statements.


Departmental

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. The TSRA is forecasting income of $47.6 million and expenditure of $47.6 million resulting in a breakeven result for the 2016–17 financial year.


The TSRA’s forecast balance sheet for the financial year ending 30 June 2017 shows the TSRA with total assets of $81.0 million and liabilities of $7.2 million, resulting in a net asset position of $73.8 million.


Predicted departmental cash flows have been adjusted to reflect the anticipated impact on cash after taking into account the forecast movements in the Departmental Balance Sheet (Table 3.2) and Comprehensive Income Statement (Table 3.1). The agency is forecasting a cash position of $0.9 million for the financial year ending 30 June 2017.

Departmental Capital Budget Statement and Statement of Asset Movements

The TSRA has a Capital Management Plan that is linked to the TSRA’s Departmental Capital Budget Statement (Table 3.5). The TSRA is forecast to spend $5.3 million on capital expenditure in the 2016-17 financial year.


284



2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000

EXPENSESEmployee benefits 16,008 16,513 17,005 17,257 17,514Suppliers 19,223 17,299 18,161 18,208 18,255Grants 14,658 12,770 12,588 12,588 12,588Depreciation and amortisation 891 875 875 875 875Finance costs 150 150 150 150 150


Sale of goods and rendering of services 556 505 505 505 505Interest 1,462 1,160 780 780 780Other 9,414 10,023 11,265 11,265 11,265


Revenue from Government 39,498 35,919 36,229 36,528 36,832Surplus/(deficit) attributable to the Australian Government - - - - - Prepared on Australian Accounting Standards basis.


285



2016-17Budget

$'000


$'000


$'000


$'000


Cash and cash equivalents 1,352 930 1,138 1,063 938Trade and other receivables 7,641 7,641 7,641 7,641 7,641Other investments 21,006 17,006 15,006 13,006 13,006


Land and buildings 48,277 52,783 54,479 56,488 56,557Property, plant and equipment 2,708 2,624 2,720 2,786 2,842Other non-financial assets 60 60 60 60 60


Suppliers 999 999 999 999 999Grants 386 386 386 386 386Other payables 2,264 2,264 2,264 2,264 2,264



Contributed equity 32 32 32 32 32Reserves 14,840 14,840 14,840 14,840 14,840Retained surplus 58,940 58,940 58,940 58,940 58,940




286


Retained earnings

$'000

Asset revaluation

reserve$'000


Total equity

$'000

Opening balance as at 1 July 2016Balance carried forward from previous period 58,940 14,840 32 73,812

Adjusted opening balance 58,940 14,840 32 73,812Comprehensive income

Surplus/(deficit) for the period - - - -Total comprehensive income - - - -

Estimated closing balance as at 30 June 2017 58,940 14,840 32 73,812

Closing balance attributable to the Australian Government 58,940 14,840 32 73,812 Prepared on Australian Accounting Standards basis.


287


2015-16 Estimated

actual$'000

2016-17Budget

$'000


$'000


$'000


$'000


Appropriations 39,498 35,919 36,229 36,528 36,832

Sale of goods and rendering of services 556 505 505 505 505Interest 1,312 1,010 630 630 630Other 9,414 10,023 11,265 11,265 11,265


Employees 16,008 16,513 17,005 17,257 17,514Suppliers 19,223 17,299 18,161 18,208 18,255Other 14,808 12,920 12,738 12,588 12,588

Total cash used 50,039 46,732 47,904 48,053 48,357Net cash from/(used by) operating activities 741 725 725 875 875INVESTING ACTIVITIESCash received

Investments 12,294 4,000 2,000 2,000 -Other 600 600 600 - -

Total cash received 12,894 4,600 2,600 2,000 -Cash used

Purchase of property, plant and equipment and intangibles 14,623 5,297 2,667 2,950 1,000Other 450 450 450 - -

Total cash used 15,073 5,747 3,117 2,950 1,000Net cash from/(used by) investing activities (2,179) (1,147) (517) (950) (1,000)Net increase/(decrease) in cash held (1,438) (422) 208 (75) (125)

Cash and cash equivalents at the beginning of the reporting period 2,790 1,352 930 1,138 1,063

Cash and cash equivalents at the end of the reporting period 1,352 930 1,138 1,063 938Prepared on Australian Accounting Standards basis.


288



2016-17Budget

$'000


$'000


$'000


$'000



resources (a) 14,623 5,297 2,667 2,950 1,000

TOTAL 14,623 5,297 2,667 2,950 1,000


Total purchases 14,623 5,297 2,667 2,950 1,000

Total cash used to acquire assets 14,623 5,297 2,667 2,950 1,000 (a) Includes - current Bill 1 and prior year Act 1/3/5 appropriations (excluding amounts from the DCB).



289


$'000

Buildings

$'000


equipment$'000

Heritage and cultural

$'000

Total

$'000

As at 1 July 2016Gross book value 9,800 39,120 5,859 60 54,839Accumulated depreciation/amortisation and impairment - (643) (3,151) - (3,794)

Opening net book balance 9,800 38,477 2,708 60 51,045Capital asset additions


annual services (a) - 5,137 160 - 5,297Total additions - 5,137 160 - 5,297Other movementsDepreciation/amortisation expense - (631) (244) - (875)Total other movements - (631) (244) - (875)

As at 30 June 2017Gross book value 9,800 44,257 6,019 60 60,136Accumulated depreciation/ amortisation and impairment - (1,274) (3,395) - (4,669)

Closing net book balance 9,800 42,983 2,624 60 55,467 (a) ‘Appropriation ordinary annual services’ refers to funding provided through Appropriation Bill (No. 1)



291

GLOSSARY AND ACRONYMS

Glossary

293

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 entity for 2015-16 as at the 2016-17 Budget. It includes all appropriations made available to the entity in the year (+/- Section 75 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 entity 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 program. It may be a measure but will not constitute a program in its own right.

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).

Glossary

294

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 programs 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) Entity Resourcing. Details total resourcing available to agencies.

Capital Expenditure Expenditure by an entity on capital projects; for example, purchasing a building.

Glossary

295

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).

Departmental item Resources (assets, liabilities, revenues and expenses) that entity chief executive officers control directly. This includes outsourced activities funded and controlled by the entity. Examples of departmental items include entity running costs, accrued employee entitlements and net appropriations. A departmental item is a component of a departmental program.

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.

Entity A department, agency, company or authority under the Public Governance, Performance and Accountability Act 2013 (PGPA 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 a PGPA entity.

Glossary

296

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.

Forward estimates period

The three years following the Budget year. For example if 2015-16 is the Budget year, 2016-17 is forward year 1, 2017-18 is forward year 2 and 2018-19 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.

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, and in the Mid-Year Economic and Fiscal Outlook (MYEFO).

Glossary

297

Term Meaning

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 entities that receive funding from annual appropriations directly or via a special account, with the exception of the Department of Defence.

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.

Operating Normally related to ongoing, or recurring expenses, such as paying salaries or making program payments.

Operating result Equals income less expenses.

Outcome An outcome is the intended result, consequence or impact of government actions on the Australian community.

Glossary

298

Term Meaning

Public Governance, Performance and Accountability Act 2013 (PGPA Act)

The PGPA Act is the principal legislation concerning the governance, performance and accountability of, and the use and management of public resources by the Commonwealth.

Portfolio Budget Statements

Budget related paper detailing budget initiatives and explanations of appropriations specified by outcome and program by each entity within a portfolio.

Program 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.

Program support The entity running costs allocated to a program. This is funded as part of the entity’s departmental appropriations.

Special account Balances existing within the CRF that are supported by standing appropriations, PGPA Act s.78, s.79 and s.80). 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. 78 of the PGPA Act) or through an Act of Parliament (referred to in s. 80 of the PGPA 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.

Acronyms

299

FREQUENTLY USED ACRONYMS

ABA Aboriginals Benefit Account

AAO Administrative Arrangements Order

AAS Australian Accounting Standards

ACB Administered Capital Budget

AGD Attorney General’s Department

AGE Australian Government Employee

AGIE Australian Government Indigenous Expenditure

AHL Aboriginal Hostels Limited

ALC Anindilyakwa Land Council

ALRA Aboriginal Land Rights (Northern Territory) Act 1976

ANAO Australian National Audit Office

ATSI Act Aboriginal and Torres Strait Islander Act 2005

APS Australian Public Service

APSC Australian Public Service Commission

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

CRF Consolidated Revenue Fund

Acronyms

300

DCB Departmental Capital Budget

DHS Department of Human Services

DTO Digital Transformation Office

DSS Department of Social Services

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

PBC Prescribed Bodies Corporate under the Native Title Act 1993 and the Native Title (Prescribed Bodies Corporate) Regulations 1999

Acronyms

301

PGPA Act 2013 Public Governance, Performance and Accountability Act 2013

PM&C Department of Prime Minister and Cabinet

S74 Section 74 Retained Revenue Receipts (PGPA Act).

SOETM Services for Other Entities and Trust Monies special accounts

TLC Tiwi Land Council

TSRA Torres Strait Regional Authority

WBACC Wreck Bay Aboriginal Community Council

portfolio budget statements 2016-17

Documents