portfolio budget statements

Portfolio Budget Statements 2017-18

Budget Related Paper No. 1.14

PRIME MINISTER AND CABINET PORTFOLIO

Budget Initiatives and Explanations of Appropriations Specified by Outcomes

and Programs by Entity

ii

© Commonwealth of Australia 2017

ISBN 978-1-925362-42-8 (Printed Version) ISBN 978-1-925362-43-5 (PDF Version) ISBN 978-1-925362-44-2 (DOC Version)

This publication is available for your use under a Creative Commons BY Attribution 3.0 Australia licence, with the exception of the Commonwealth Coat of Arms, the Department of the Prime Minister and Cabinet logo, photographs, images, signatures and where otherwise stated. The full licence terms are available from http://creativecommons.org/licenses/by/3.0/au/legalcode.

Use of the Department of the Prime Minister and Cabinet material under a Creative Commons BY Attribution 3.0 Australia licence requires you to attribute the work (but not in any way that suggests that the Department of the Prime Minister and Cabinet endorses you or your use of the work). Department of the Prime Minister and Cabinet material used 'as supplied'

Provided you have not modified or transformed the Department of the Prime Minister and Cabinet material in any way including, for example, by changing the Department of the Prime Minister and Cabinet text; calculating percentage changes; graphing or charting data; or deriving new statistics from published Department of the Prime Minister and Cabinet statistics – then the Department of the Prime Minister and Cabinet prefers the following attribution: Source: The Australian Government Department of the Prime Minister and Cabinet.

Derivative material

If you have modified or transformed the Department of the Prime Minister and Cabinet material, or derived new material from those of the Department of the Prime Minister and Cabinet in any way, then the Department of the Prime Minister and Cabinet prefers the following attribution: Based on The Australian Government Department of the Prime Minister and Cabinet data

Use of the Coat of Arms The terms under which the Coat of Arms can be used are set out on the It’s an Honour website (see www.itsanhonour.gov.au)

Other uses Enquiries regarding this licence and any other use of this document are welcome at:

Department of the Prime Minister and Cabinet PO Box 6500 Canberra ACT 2600 Tel: (02) 6271 5111 Fax: (02) 6271 5414 www.dpmc.gov.au

Parliament House CANBERRA ACT 2600Telephone (02) 6277 7700

www.pm.gov.au

PRIME MINISTER

PARLIAMENT HOUSECANBERRA 2600

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 2017-18 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

iv

Abbreviations and conventionsThe 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.

EnquiriesShould you have any enquiries regarding this publication please contact the Chief Financial Officer, Department of the Prime Minister and Cabinet on (02) 6271 5089.

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.

v

USER GUIDETO THE

PORTFOLIO BUDGET STATEMENTS

vi

USER GUIDE

The purpose of the 2017-18 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 appropriations acts, special appropriations (including standing appropriations and special accounts), and revenue from other sources.

A key role of the PB Statements is to facilitate the understanding of proposed annual appropriations in Appropriation Bills (No. 1 and No. 2) 2017-18 (or Appropriation (Parliamentary Departments) Bill (No. 1) 2017-18 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. The Enhanced Commonwealth Performance Framework. The following diagram outlines the key components of the enhanced Commonwealth performance framework. The diagram identifies the content of each of the publications and the relationship between them. Links to the publications for each entity within the portfolio can be found in the introduction to Section 2: Outcomes and planned performance.

ix

CONTENTS

Portfolio overview ......................................................................................................... 1Prime Minister and Cabinet Portfolio Overview .............................................................. 3

Entity resources and planned performance............................................................. 13Department of the Prime Minister and Cabinet............................................................. 15Aboriginal Hostels Limited............................................................................................. 57Australian National Audit Office .................................................................................... 75Australian Public Service Commission........................................................................ 103Digital Transformation Agency.................................................................................... 127Indigenous Business Australia .................................................................................... 149Indigenous Land Corporation...................................................................................... 169Infrastructure and Project Financing Agency .............................................................. 189Office of National Assessments .................................................................................. 209Office of the Commonwealth Ombudsman ................................................................. 227Office of the Inspector-General of Intelligence and Security ......................................247Office of the Official Secretary to the Governor-General ............................................267Torres Strait Regional Authority .................................................................................. 293

Glossary and Acronyms........................................................................................... 313

1

PORTFOLIO OVERVIEW

3

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

international, national security and counter terrorism policy coordination

cyber security strategy leadership 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

advising on infrastructure financing.

Portfolio Overview

4

The Portfolio comprises of nine 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 Agency

Infrastructure and Project Financing Agency

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

5

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, regulatory reform, cities 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). 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 Agency (DTA) 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 DTA will deliver and assist agencies to deliver simpler, clearer and faster services to all.

Portfolio Overview

6

The position of Executive Director of Township Leasing (EDTL) is an independent statutory office holder 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 and funds 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 Infrastructure and Project Financing Agency (IPFA) is a non-corporate Commonwealth Entity, subject to the PGPA Act, focused on leveraging additional private sector investment in infrastructure and securing better returns from the Commonwealth’s investment. The IPFA will assist the Government to identify, assess, and broker financing opportunities for infrastructure projects, including through engagement with Commonwealth entities, State and Territory governments, and the private sector.

The National Australia Day Council Limited (NADC) is a Commonwealth Company that is subject to the PGPA Act. NADC’s mission is to inspire national pride and spirit through a range of activities including Australia Day programs and the Australian of the Year Awards.

Portfolio Overview

7

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 the Northern Territory across a range of processes under the ALR Act.

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 the Defence Force, Immigration, Law Enforcement, Postal Industry, Overseas Students, Vocational Educational and Training Student Loans 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/her 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 makes a positive contribution to the health, employment and economy of remote Indigenous communities, by providing quality retail management and food supply services to deliver 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. The Registrar of Indigenous Corporations registers and regulates Aboriginal and Torres Strait Islander corporations.

Portfolio Overview

8

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 within the Jervis Bay Territory.

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

9

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

Minister Assisting the Prime Minister for Cabinet — Senator the Hon Scott RyanMinister Assisting the Prime Minister for Cyber Security — The Hon Dan Tehan MP

Assistant Minister to the Prime Minister — Senator the Hon James McGrathAssistant Minister for Cities and Digital Transformation – The Hon Angus Taylor MP

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

Outcome 1: Prime Minister and Cabinet - Provide high quality policy advice and support to the Prime Minister, the Cabinet, Portfolio Ministers and Assistant Ministers 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 Acting Chief Executive Officer: Mr Tony Usher

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

10

Digital Transformation Agency Chief Executive Officer: Mr Gavin Slater

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 Acting Chief Executive Officer: Mr Rajiv Viswanathan

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 Chief Executive Officer: Mr John Maher

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

Infrastructure Project Financing Agency Chief Executive Officer: To be appointed

Outcome: To leverage additional private sector investment in infrastructure and secure better returns from the Commonwealth’s investment by assisting the Government to identify, assess, and broker financing opportunities for infrastructure and projects, including through engagement with Commonwealth entities, State and Territory governments, and the private sector.

National Australia Day Council Limited Chief Executive Officer: Mr Christopher Kirby

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 CouncilsAnindilyakwa Land Council - Chief Executive Officer: Mr Mark HewittCentral Land Council - Director: Mr David RossNorthern Land Council - Chief Executive Officer: Mr Joe MorrisonTiwi Land Council - Chief Executive Officer: Mr Brian ClancyObjective: 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

11

Office of the Commonwealth Ombudsman Ombudsman: Mr Michael Manthorpe

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 StoneOutcome: 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 Michael Borg

Objective: To improve access to affordable, healthy food for Indigenous communities, particularly in remote areas, through providing food supply and store management services on a fee for service basis.

Torres Strait Regional Authority Chief Executive Officer: Mr Wayne See Kee PSM

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.

13

ENTITY RESOURCES ANDPLANNED PERFORMANCE

DEPARTMENT OF THE PRIME MINISTER AND CABINET ......................................15

ABORIGINAL HOSTELS LIMITED.............................................................................. 57

AUSTRALIAN NATIONAL AUDIT OFFICE................................................................. 75

AUSTRALIAN PUBLIC SERVICE COMMISSION.....................................................103

DIGITAL TRANSFORMATION AGENCY .................................................................. 127

INDIGENOUS BUSINESS AUSTRALIA .................................................................... 149

INDIGENOUS LAND CORPORATION ...................................................................... 169

INFRASTRUCTURE AND PROJECT FINANCING AGENCY...................................189

OFFICE OF NATIONAL ASSESSMENTS ................................................................. 209

OFFICE OF THE COMMONWEALTH OMBUDSMAN ..............................................227

OFFICE OF THE INSPECTOR-GENERAL OF INTELLIGENCE AND SECURITY .................................................................................................................. 247

OFFICE OF THE OFFICIAL SECRETARY TO THE GOVERNOR-GENERAL ........267

TORRES STRAIT REGIONAL AUTHORITY ............................................................. 293

15

DEPARTMENT OF THE PRIME MINISTER AND CABINET

ENTITY RESOURCES AND PLANNED PERFORMANCE

17


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 ...................................25 2.1 Budgeted expenses and performance for Outcome 1....................................26 2.2 Budgeted expenses and performance for Outcome 2....................................29

SECTION 3: BUDGETED FINANCIAL STATEMENTS............................................... 42 3.1 Budgeted financial statements........................................................................ 42 3.2 Budgeted financial statements tables............................................................. 44

19


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 issues, 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

leadership of Australia’s strategic counter-terrorism agenda through the facilitative coordination of Commonwealth Departments and agencies to deliver effective counter-terrorism outcomes

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.

PM&C Budget Statements

20

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 (that is, appropriations/cash available) basis, whilst 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.


21

Table 1.1: PM&C resource statement — Budget estimates for 2017-18 as at Budget May 2017

2016-17 Estimated

actual $'000

2017-18 Estimate

$'000DepartmentalAnnual appropriations - ordinary annual services (a)

Prior year appropriations available (b) 138,102 58,441Departmental appropriation 393,174 451,886s 74 retained revenue receipts (c) 10,668 9,261Departmental capital budget (d) 11,732 14,506

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

Prior year appropriations available (b) 8,332 11,764Equity injection 8,611 11,694

Total departmental annual appropriations 570,619 557,552Total departmental resourcing 570,619 557,552AdministeredAnnual appropriations - ordinary annual services (a)

Prior year appropriations available (b) 76,296 96,167Outcome 1 23,029 47,977Outcome 2 1,348,972 1,272,667Administered capital budget (f) 250 253Payments to corporate entities (g) 92,752 91,680

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

Payments to corporate entities (g) 36,550 23,850Annual appropriations - other services - specific payments to States, ACT, NT and local government (e) 7,648 7,762Total administered annual appropriations 1,585,497 1,540,356Total administered special appropriations (h) 240,255 223,987Special accounts (h)

Opening balance 28,610 23,884Appropriation receipts (i) 177,249 155,000Non-appropriation receipts 2,663,140 2,745,806

Total special account receipts 2,868,999 2,924,690less administered appropriations drawn from annual/special appropriations and credited to special accounts (i) (177,249) (155,000)less payments to corporate entities from annual/special appropriations (g) (129,302) (115,530)Total administered resourcing 4,388,200 4,418,503Total resourcing for PM&C 4,958,819 4,976,055

2016-17 2017-18Average staffing level (number) 2,075 2,061



22

Table 1.1: PM&C resource statement — Budget estimates for 2017-18 as at Budget May 2017 (continued)Third party payments from and on behalf of other entities

2016-17 Estimated

actual $'000

2017-18 Estimate

$'000

Receipts received from other entities for the provision of services (disclosed above in s74 Retained revenue receipts section above) 10,668 9,261Payments made to corporate entities within the Portfolio

Indigenous Land Corporation 9,156 8,928Indigenous Business Australia 47,152 32,983Aboriginal Hostels Limited 37,075 36,563Torres Strait Regional Authority 35,919 37,056

Prepared on a resourcing (that is, appropriations available) basis.Please note: All figures shown above are GST exclusive – these may not match figures in the cash flow statement. (a) Appropriation Bill (No.1) 2017-18.(b) Estimated balance carried forward from previous year. Excludes departmental capital budget (DCB).(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) Appropriation Bill (No.2) 2017-18.(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'. Amounts credited to the special account(s) from PM&C’s annual and special appropriations.

(g) 'Corporate entities' are corporate Commonwealth entities and Commonwealth companies as defined under the PGPA Act 2013.

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

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


23

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 2017-18 Budget measures

Part 1: Measures announced since the 2016-17 Mid-Year Economic and Fiscal Outlook (MYEFO)

Program2016-17

$'0002017-18

$'0002018-19

$'0002019-20

$'0002020-21

$'000Expense measuresReducing Pressure on Housing Affordability – Western Sydney (a) 1.1

Administered expenses - nfp nfp nfp nfpTotal - nfp nfp nfp nfpASEAN-Australia Leaders' Summit 1.1

Departmental expenses - 37,667 - - -

Total - 37,667 - - - Productivity Commission - COAG Dashboard and reviews of sector wide agreements 1.1

Departmental expenses - (299) (297) (299) (301)

Total - (299) (297) (299) (301) National Cities Agenda 1.1

Departmental expenses - 7,688 7,647 4,056 4,080

Total - 7,688 7,647 4,056 4,080 Public Service Modernisation Fund - transformation and innovation stream (b) 1.1

Departmental expenses - - - - -

Total - - - - - Overseas Allowances for Australian Government Employees - efficiencies 1.1

Departmental expenses - - 1 1 1

Total - - 1 1 1 Departmental - supplementation 1.1


Total - 5,000 5,000 5,000 5,000 Unlegislated Budget Repair Measures - not proceeding (c) 2.1

Administered expenses (26,852) - - - - Total (26,852) - - - - Business Support for Indigenous Entrepreneurs - extension 2.1

Administered expenses - 36,722 36,717 36,741 36,741

Total - 36,722 36,717 36,741 36,741continued on next page.


24

Part 1: Measures announced since the 2016-17 Mid-Year Economic and Fiscal Outlook (MYEFO) (continued)

Program2016-17

$'0002017-18

$'0002018-19

$'0002019-20

$'0002020-21

$'000

Commonwealth Redress Scheme for Survivors of Institutional Child Sexual Abuse 2.3

Administered expenses - (4,770) nfp nfp nfp

Total - (4,770) nfp nfp nfpEnhanced Research and Evaluation in Indigenous Affairs (d) 2.6

Administered expenses (10,000) 2,390 4,242 1,241 (763)

Total (10,000) 2,390 4,242 1,241 (763) Extension and expansion of Cashless Debit Card 2.7

Departmental expenses nfp nfp nfp - -

Total nfp nfp nfp - - Retta Dixon Home – compensation 2.7

Departmental expenses nfp - - - -

Total nfp - - - - Public Service Modernisation Fund - transformation and innovation stream (b) 2.7


Total - - - - - Total expense measures

Administered (36,852) 34,342 40,959 37,982 35,978Departmental - 50,056 12,351 8,758 8,780

Total (36,852) 84,398 53,310 46,740 44,758Capital measuresPublic Service Modernisation Fund - transformation and innovation stream (b) 1.1

Departmental capital - - - - -

Total - - - - - Total capital measures

Administered - - - - - Departmental - - - - -

Total - - - - - 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.(a) This is to be delivered as a National Partnership Payment through the Department of Treasury. Refer to

Budget Paper 2 for further information on this measure.(b) Refer to Budget Paper 2 for further information on Public Service Modernisation Fund measures.(c) This is a reversal of the Addressing Welfare Reliance in Remote Communities measure, where funding

was quarantined for the payment of income support payments. This has not proceeded and this funding has been distributed to remote job seekers though the ordinary payment of income support through other portfolios. This is an administrative process.

(d) The measure includes $40m for the new Evaluation and Research program and $10m for an Indigenous Research Fund; offset by $2.89m save provided for augmenting the role of the Productivity Commission.The funding has been redirected from other IAS.


25

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:

Performance reporting requirements in the Portfolio Budget Statements are part of the enhanced Commonwealth performance framework established by the Public Governance, Performance and Accountability Act 2013. 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 - to provide an entity’s complete performance story.

The most recent corporate plan for PM&C can be found at: http://www.dpmc.gov.au/resource-centre/pmc/corporate-plan-2016-20

The most recent annual performance statement can be found at: http://www.dpmc.gov.au/resource-centre/pmc/department-prime-minister-and-cabinet-annual-report-2015-16


26

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 Assistant Ministers including through the coordination of government activities, policy development and program delivery.

Budgeted expenses for Outcome 1

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

2016-17 Estimated

actual$'000

2017-18Budget

$'000

2018-19 Forward estimate

$'000


$'000

2020-21Forward estimate

$'000

Administered expensesCompensation and Legal Expenses 121 123 122 124 126Geocoded National Address File 8,140 8,296 8,455 - -National Australia Day Council Limited 3,828 3,864 3,883 3,915 3,981

Australia New Zealand Counter Terrorism Committee Secretariat(a) 112 112 112 114 116

Office for Women 3,602 3,290 3,310 3,334 3,390Parliament House Briefing Room 447 450 453 470 478Prime Minister's Official Residences 1,768 1,807 1,847 1,862 1,893State Occasion and Official Visits 3,632 3,710 3,784 3,815 3,879

Support to the former Governors-General (b) 305 284 4,058 314 293Smart Cities and Suburbs - 25,025 25,000 - -

Ordinary annual services (Appropriation Bill No. 1) 21,955 46,961 51,024 13,948 14,156

Special appropriationsPublic Governance, Performance and Accountability Act 2013- s77 10 10 10 10 10

Special accountsAustralia New Zealand Land Information 50 27 - - -Services for Other Entities and Trust Moneys 140 - - - -

Expenses not requiring appropriation in the Budget year (c)

131 131 144 144 144

Administered total 22,286 47,129 51,178 14,102 14,310

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

Program 1.1: Prime Minister and Cabinet



27

Table 2.1.1: Budgeted expenses for Outcome 1 (continued)2016-17

Estimated actual$'000

2017-18Budget

$'000


$'000


$'000


$'000

Departmental expensesDepartmental appropriation 129,657 180,311 125,995 123,368 110,964s 74 Retained revenue receipts (d) 3,206 3,206 3,206 3,206 3,206

Expenses not requiring appropriation in the Budget year (c)

13,837 5,734 6,563 7,598 8,043

Departmental total 146,700 189,251 135,764 134,172 122,213� 168,986 236,380 186,942 148,274 136,523

Total expenses for Outcome 1 168,986 236,380 186,942 148,274 136,523

2016-17 2017-18Average staffing level (number) 551 610

Program 1.1: Prime Minister and Cabinet

(a) Formerly known as the National Counter-Terrorism Committee Secretariat.(b) 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 Governor-General.

(c) 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.

(d) 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.


28

Table 2.1.2: Performance criteria for Outcome 1Table 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 2017-18 Budget measures have created new programs or materially changed existing programs.

Outcome 1 – Provide high quality policy advice and support to the Prime Minister and the Cabinet, Portfolio Ministers and Assistant Ministers including through the coordination of government activities, policy development and program delivery.Program 1.1 – Prime Minister and CabinetThe 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 mattersprovide 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

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 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.

Maintain or increase stakeholder satisfaction by 2018.

2018-19 and beyond As per 2017-18. As per 2017-18.

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 and international policy and national security matters

(a) Refers to the purposes reflected in the Corporate Plan 2016-20.


29


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

Programs 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 the efficient operation of 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

Programs Program 1.2 – Sustainable Management - Natural Resources Program 2.1 – Biosecurity and Export Services

Contribution to Outcome 2 made by linked programs 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 PM&C partner with Aboriginal and Torres Strait Islander Ranger groups to deliver biosecurity work that protects Australian agriculture and the northern Australian environment.



30

Department of Environment and Energy

Programs Program 1.1 – Sustainable Management of Natural Resources and the

Environment Program 2.1 – Reducing Australia’s Greenhouse Gas Emissions

Contribution to Outcome 2 made by linked programs The Departments of the Environment and Energy, PM&C, and Agriculture and Water Resources work together to provide opportunities for Indigenous communities and land managers to engage with the National Landcare Programme.

The Department of the Environment and Energy and PM&C work cooperatively 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 and Energy supports the Government’s agenda 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 under the Emissions Reduction Fund.

Department of Employment

Program Program 1.1 – Employment Services

Contribution to Outcome 2 made by linked programs The Department of Employment fosters a productive and competitive labour market through employment policies and programs that assist job seekers, including Indigenous Australians, into work, meet employer needs and increase Australia’s workforce participation.

Department of Health

Program Program 2.3 – Aboriginal and Torres Strait Islander Health

Contribution to Outcome 2 made by linked programs 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.



31

Department of Human Services

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

Contribution to Outcome 2 made by linked programs Payments and services under the Indigenous Advancement Strategy are delivered by the Department of Human Services on behalf of PM&C.

Department of Social Services

Programs Program 1.10 – Working Age Payments Program 1.11 – Student Payments Program 2.1 – Families and Communities Program 3.1 – Disability Employment

Contribution to Outcome 2 made by linked programs 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 PM&C.

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 to that 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 living in non-remote regions with a disability into work.


32


2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000


$'000

Administered expensesOrdinary annual services (Appropriation Bill No. 1) 700,765 684,286 641,392 670,920 679,881

Special appropriationsAboriginal Land Rights (Northern Territory) Act 1976 170,277 151,802 144,941 146,634 148,325

Aboriginals Benefit Account 983 998 1,013 1,028 1,028Ranger Agreement

Special accountsAboriginal and Torres Strait Islander Land Account 51,823 52,706 53,710 54,892 56,102

Aboriginals Benefit Account 172,543 154,113 147,303 149,050 150,801Payments to corporate entities 19,758 19,061 18,511 18,204 18,243

Administered total 1,116,149 1,062,966 1,006,870 1,040,728 1,054,380

less expenses made from special appropriations credited to special accounts

(170,277) (151,802) (144,941) (146,634) (148,325)

Total expenses for program 1.1 945,872 911,164 861,929 894,094 906,055


Other services (Appropriation Bill No. 2) 7,648 7,762 6,536 4,779 3,609

Special appropriationsHigher Education Support Act 2003 62,013 67,979 69,101 70,484 72,000

Special accountsAboriginal Tutorial Assistance Superannuation Scheme - - - - -

Administered total 284,925 285,755 286,600 293,063 296,477Total expenses for program 2.2 284,925 285,755 286,600 293,063 296,477

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



33



2017-18Budget

$'000


$'000


$'000


$'000


Payments to corporate entities 37,075 36,563 36,323 36,459 36,562Administered total 296,722 301,183 281,634 278,662 295,595



Administered total 58,196 47,442 48,396 49,921 50,625Total expenses for program 2.4 58,196 47,442 48,396 49,921 50,625


Special accountsIndigenous Remote Services Delivery 4,681 - - - -

Payments to corporate entities 35,919 36,056 35,883 35,965 36,194Administered total 90,700 89,361 87,858 89,576 90,561


Administered expensesOrdinary annual services (Appropriation Bill No. 1) - 13,000 15,000 12,000 10,000

Administered total - 13,000 15,000 12,000 10,000Total expenses for program 2.6 - 13,000 15,000 12,000 10,000

Program 2.3: Safety and Wellbeing

Program 2.4: Culture and Capability

Program 2.5: Remote Australia Strategies

Program 2.6: Research and Evaluation



34



2017-18Budget

$'000


$'000


$'000


$'000

Departmental expensesDepartmental appropriation 276,716 258,376 255,155 253,050 254,277s 74 Retained revenue receipts (a) 7,462 6,055 6,034 6,013 7,462

Expenses not requiring appropriation in the Budget year (b)

3,925 9,151 12,662 15,165 17,916

Departmental total 288,103 273,582 273,851 274,228 279,655Total expenses for program 2.7 288,103 273,582 273,851 274,228 279,655

Administered expensesOrdinary annual services (Appropriation Bill No. 1) 1,283,972 1,272,667 1,213,037 1,246,455 1,274,774

Other services (Appropriation Bill No. 2) 7,648 7,762 6,536 4,779 3,609

s74 Retained revenue receipts (a) - - - - -

Special appropriations 233,273 220,779 215,055 218,146 221,353Special accounts 229,047 206,819 201,013 203,942 206,903Payments to corporate entities 92,752 91,680 90,717 90,628 90,999

less expenses made from special appropriations credited to special accounts

(170,277) (151,802) (144,941) (146,634) (148,325)

Administered total 1,676,415 1,647,905 1,581,417 1,617,316 1,649,313Departmental expenses

Departmental appropriation 276,716 258,376 255,155 253,050 254,277s74 Retained revenue receipts (a) 7,462 6,055 6,034 6,013 7,462


3,925 9,151 12,662 15,165 17,916

Departmental total 288,103 273,582 273,851 274,228 279,655Total expenses for Outcome 2 1,964,518 1,921,487 1,855,268 1,891,544 1,928,968

2016-17 2017-18Average staffing level (number) 1,524 1,451

Outcome 2 Totals by appropriation type

Program 2.7: Program Support

(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,

amortisation expenses, make good expenses, audit fees, and other services provided free of charge.Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of the budget year as government priorities change.


35


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 EconomyThe objectives of this programme 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 programme is delivered through Indigenous Advancement Strategy activities aimed at increasing Indigenous employment, business and economic development.



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 programme met the mandatory KPI on the extent of compliance with Project Agreement terms and conditions (by 2017).

2017-18 Increased Indigenous employment, business and economic development.

Advice is provided to the Government and Commonwealth Departments to support better outcomes for Indigenous Australians through mainstream employment programs (by 2018).

Target of 3 per cent of Commonwealth Government contracts are awarded to Indigenous-owned business (by 2018).


Purposes (a) Improving the lives of Indigenous Australians(a) Refers to the purposes reflected in the Corporate Plan 2016-20. *Majority refers to an acceptable level of between 70 and 90 per cent. The actual results will be published at year end and will be assessed for acceptability. While it is desirable for all activities to succeed, this target reflects the engagement with risk of trialling new activities and providers.



36

Table 2.2.2: Performance criteria for Outcome 2 (continued)Program 2.2 – Children and SchoolingThe objectives of this programme 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 programme includes measures to improve access to further education.

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



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

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


2017-18 Increased Indigenous school attendance and improved educational outcomes.

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

At least 70 per cent of funded activities within this programme met the mandatory KPI on the extent of compliance with Project Agreement terms and conditions (by 2018).


Purposes(a) Improving the lives of Indigenous Australians(a) Refers to the purposes reflected in the Corporate Plan 2016-20.# 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. *Majority refers to an acceptable level of between 70 and 90 per cent. The actual results will be published at year end and will be assessed for acceptability. While it is desirable for all activities to succeed, this target reflects the engagement with risk of trialling new activities and providers.



37

Table 2.2.2: Performance criteria for Outcome 2 (continued) Program 2.3 – Safety and WellbeingThe objectives of this programme 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 programme is delivered through Indigenous Advancement Strategy activities aimed at reducing levels of offending, violence and substance abuse.



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


2017-18 Reduced levels of offending, violence and substance abuse.



Purposes(a) Improving the lives of Indigenous Australians(a) Refers to the purposes reflected in the Corporate Plan 2016-20.*Majority refers to an acceptable level of between 70 and 90 per cent. The actual results will be published at year end and will be assessed for acceptability. While it is desirable for all activities to succeed, this target reflects the engagement with risk of trialling new activities and providers.



38

Table 2.2.2: Performance criteria for Outcome 2 (continued) Program 2.4 – Culture and CapabilityThe objectives of this programme 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 programme 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 leadershippromoting the unique place of Indigenous cultures in Australian society.



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


2017-18 Increased participation of Indigenous people in Australian society and improved capability of Indigenous organisations.






39

Table 2.2.2: Performance criteria for Outcome 2 (continued) Program 2.5 – Remote Australia StrategiesThe objectives of this programme are ensuring strategic investments in local, flexible solutions based on community and Government priorities.

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



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


2017-18 Investment in local solutions based on community and government priorities.






40

Table 2.2.2: Performance criteria for Outcome 2 (continued) Program 2.6 – Evaluation and ResearchThe objective of this Programme is to improve the lives of Indigenous Australians by increasing evaluation and research into policies and programs impacting on Indigenous Peoples.

Delivery This Programme is delivered through Indigenous Advancement Strategy activities aimed at investment in evaluation of IAS activities and research into Indigenous priorities.



2016-17 NA – program set up from 2017-18 NA – program set up from 2017-18

2017-18 Increased understanding of whether funding and policies are effective.

Increased research and/or existing research made more usable.



Purposes(a) Improving the lives of Indigenous Australians(a) Refers to the purposes reflected in the Corporate Plan 2016-20.



41

Table 2.2.2: Performance criteria for Outcome 2 (continued) Program 2.7 – Program SupportThis program is the departmental support programme to the six Indigenous Advancement Strategy Programmes. 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 six Indigenous Advancement Strategy Programmes.



2016-17 Efficient department support to the six Indigenous Advancement Strategy Programmes.

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

2017-18 Efficient department support to the six Indigenous Advancement StrategyProgrammes.

At least 70 per cent of key performance measures in the Corporate Plan are met or are on track (by 2018).


Purposes(a) Improving the lives of Indigenous Australians(a) Refers to the purposes reflected in the Corporate Plan 2016-20.

*Majority refers to an acceptable level of between 70 and 90 per cent. The actual results will be published at year end and will be assessed for acceptability. While it is desirable for all activities to succeed, this target reflects the engagement with risk of trialling new activities and providers.


42

Section 3: Budgeted financial statements

Section 3 presents budgeted financial statements which provide a comprehensive snapshot of entity finances for the 2017-18 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 statementsDepartmental

The Agency Resource Statement (Table 1.1) provides a consolidated view of all the resources available to PM&C in 2017-18. 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 2017-18 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 statementsDepartmental

Comprehensive Income Statement

Revenue from Government for 2017-18 has increased since the 2016-17 Portfolio Additional Estimates Statements (PAES) from $362.4 million to $438.9 million. The increase in appropriation relates to the various budget measures noted in Table 1.2.

PM&C is budgeting for a break-even net cost of services in 2017-18 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.


43

Budgeted Departmental Balance Sheet

PM&C’s net asset position is expected to increase in 2018-19 and then decrease over the remaining forward estimates. The increase relates to planned property works in Regional Offices.

Administered

Schedule of Budgeted Income and Expenses Administered on Behalf of Government

The estimated administered expenditure for 2017-18 has decreased by $6.2 million since the 2016-17 Portfolio Additional Estimates Statements (PAES) from $1,701.2 million to $1,695.0 million, primarily due to offsets provided for the Augmentation of the Role of the Productivity Commission and the Redress Scheme.

Schedule of Budgeted Assets and Liabilities Administered on Behalf of Government

PM&C’s budgeted administered net assets position in 2017-18 is expected to be $4,851.8 million, which remains relatively stable from the estimated actuals in 2016-17 ($4,763.2 million).


44

3.2 BUDGETED FINANCIAL STATEMENTS TABLES

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

2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000


$'000EXPENSES

Employee benefits 253,123 267,574 268,150 265,622 261,322Suppliers 155,677 181,971 123,855 121,646 116,218Grants 402 402 402 402 402Depreciation and amortisation 15,585 12,871 17,195 20,717 23,913Finance costs 16 15 13 13 13Other expenses 10,000 - - - -

Total expenses 434,803 462,833 409,615 408,400 401,868LESS: OWN-SOURCE INCOMEOwn-source revenue

Sale of goods and rendering of services 10,668 9,261 9,240 9,219 10,668

Total own-source revenue 10,668 9,261 9,240 9,219 10,668Gains

Other 2,177 2,014 2,030 2,046 2,046Total gains 2,177 2,014 2,030 2,046 2,046Total own-source income 12,845 11,275 11,270 11,265 12,714Net (cost of)/contribution by services (421,958) (451,558) (398,345) (397,135) (389,154)

Revenue from Government 406,373 438,687 381,150 376,418 365,241Surplus/(deficit) attributable to the Australian Government (15,585) (12,871) (17,195) (20,717) (23,913)Total comprehensive income/(loss) attributable to the Australian Government (15,585) (12,871) (17,195) (20,717) (23,913)



45

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

2016-17$'000

2017-18$'000

2018-19$'000

2019-20$'000

2020-21$'000

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

less depreciation/amortisation expenses previously funded through revenue appropriations (a) 15,585 12,871 17,195 20,717 23,913

Total comprehensive income/(loss) - as per the statement of comprehensive income (15,585) (12,871) (17,195) (20,717) (23,913)

(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.


46

Table 3.2: Budgeted departmental balance sheet (as at 30 June)2016-17


2017-18Budget

$'000


$'000


$'000


$'000ASSETSFinancial assets

Cash and cash equivalents 5,031 5,031 5,031 5,031 5,031Trade and other receivables 106,432 110,010 109,331 108,309 108,900Other financial assets 4,238 4,241 4,244 4,244 4,244

Total financial assets 115,701 119,282 118,606 117,584 118,175Non-financial assets

Land and buildings 78,389 73,748 75,190 68,110 61,172Property, plant and equipment 19,536 30,860 29,787 36,218 35,506Intangibles 25,347 29,493 28,524 23,614 21,916Other non-financial assets 3,219 3,231 4,616 4,616 4,616

Total non-financial assets 126,491 137,332 138,117 132,558 123,210Assets held for sale 9,455 9,455 9,455 9,455 9,455

Total assets 251,647 266,069 266,178 259,597 250,840LIABILITIESPayables

Suppliers 24,959 27,362 27,368 26,461 27,052Other payables 17,826 16,385 14,431 14,431 14,431

Total payables 42,785 43,747 41,799 40,892 41,483Provisions

Employee provisions 77,083 77,258 77,499 77,384 77,384Other provisions 975 916 819 819 819

Total provisions 78,058 78,174 78,318 78,203 78,203Total liabilities 120,843 121,921 120,117 119,095 119,686Net assets 130,804 144,148 146,061 140,502 131,154EQUITY*

Contributed equity 184,797 207,266 226,709 241,867 256,432Reserves 6,887 6,887 6,887 6,887 6,887Retained surplus (accumulated deficit) (60,880) (70,005) (87,535) (108,252) (132,165)

Total equity 130,804 144,148 146,061 140,502 131,154 *’Equity’ is the residual interest in assets after deduction of liabilities.Prepared on Australian Accounting Standards basis.


47

Table 3.3: Departmental statement of changes in equity — summary ofmovement (Budget year 2017-18)

Retained earnings

$'000

Asset revaluation

reserve

$'000

Contributed equity/ capital

$'000

Total equity

$'000

Opening balance as at 1 July 2017Balance carried forward from previous period (60,880) 6,887 184,797 130,804Adjustment for changes in accounting policies 2,714 - 1,860 4,574

Adjusted opening balance (58,166) 6,887 186,657 135,378Comprehensive income

Other comprehensive income -Surplus/(deficit) for the period (12,871) - - (12,871)

Total comprehensive income (12,871) - - (12,871)Transactions with owners

Distributions to ownersReturns of capital:

Distribution of equity 2,933 - - 2,933Other (1,901) - (5,591) (7,492)

Contributions by ownersEquity injection - Appropriation - - 11,694 11,694Departmental capital budget (DCB) - - 14,506 14,506

Sub-total transactions with owners 1,032 - 20,609 21,641Closing balance attributable to the Australian Government (70,005) 6,887 207,266 144,148



48

Table 3.4: Budgeted departmental statement of cash flows (for the period ended30 June)

2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000


$'000OPERATING ACTIVITIESCash received

Appropriations 401,984 435,357 381,964 377,440 364,650Sale of goods and rendering of services 10,668 9,261 9,240 9,219 10,668

Total cash received 412,652 444,618 391,204 386,659 375,318Cash used

Employees 252,291 267,399 267,909 265,737 261,322Suppliers 151,353 177,800 121,952 120,507 113,581s 74 Retained revenue receipts transferred to OPA 4,145 17 1,390 (2,038) 13Other 7,363 1,902 2,453 2,453 402

Total cash used 415,152 447,118 393,704 386,659 375,318Net cash from/(used by) operating activities (2,500) (2,500) (2,500) - -INVESTING ACTIVITIESCash received

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

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

Purchase of property, plant and equipment and intangibles 30,878 26,200 20,095 15,158 14,565

Total cash used 30,878 26,200 20,095 15,158 14,565Net cash from/(used by) investing activities (28,378) (23,700) (17,595) (15,158) (14,565)FINANCING ACTIVITIESCash received

Contributed equity 30,878 26,200 20,095 15,158 14,565Total cash received 30,878 26,200 20,095 15,158 14,565Net cash from/(used by) financing activities 30,878 26,200 20,095 15,158 14,565Net increase/(decrease) in cash held - - - - -

Cash and cash equivalents at the beginning of the reporting period 5,031 5,031 5,031 5,031 5,031

Cash and cash equivalents at the end of the reporting period 5,031 5,031 5,031 5,031 5,031



49

Table 3.5: Departmental capital budget statement (for the period ended 30 June)2016-17


2017-18Budget

$'000


$'000


$'000


$'000NEW CAPITAL APPROPRIATIONS

Capital budget - Bill 1 (DCB) 11,732 14,506 6,962 13,261 13,325Equity injections - Bill 2 8,611 11,694 13,133 1,897 1,240

Total new capital appropriations 20,343 26,200 20,095 15,158 14,565Provided for:

Purchase of non-financial assets 20,343 26,200 20,095 15,158 14,565Total items 20,343 26,200 20,095 15,158 14,565

PURCHASE OF NON-FINANCIAL ASSETS

Funded by capital appropriations (a)8,611 11,694 13,133 1,897 1,240

Funded by capital appropriation - DCB (b) 11,732 14,506 6,962 13,261 13,325Funded internally from departmental resources (c) 10,535 - - - -

TOTAL 30,878 26,200 20,095 15,158 14,565RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE Total purchases 30,878 26,200 20,095 15,158 14,565Total cash used to acquire assets 30,878 26,200 20,095 15,158 14,565

(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).(c) 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; and- proceeds from the sale of assets.


50


Tabl

e3.

6:St

atem

ent o

f Dep

artm

enta

l ass

et m

ovem

ents

(Bud

get y

ear 2

017-

18)

Land

$'00

0

Bui

ldin

gs

$'00

0

Oth

er p

rope

rty,

plan

t and

eq

uipm

ent

$'00

0

Com

pute

r so

ftwar

e an

d in

tang

ible

s

$'00

0

L&B

, IP

&E

hel

d fo

r sal

e

$'00

0

Tota

l

$'00

0A

s at

1 J

uly

2017

Gro

ss b

ook

valu

e 12

,629

72,2

9523

,165

34,7

939,

455

152,

337

Acc

umul

ated

dep

reci

atio

n/am

ortis

atio

n a

nd im

pairm

ent

-(6

,535

)(3

,629

)(9

,446

)-

(19,

610)

Ope

ning

net

boo

k ba

lanc

e12

,629

65,7

6019

,536

25,3

479,

455

132,

727

Cap

ital a

sset

add

ition

sEs

timat

ed e

xpen

ditu

re o

n n

ew o

r re p

lace

men

t ass

ets

By

purc

hase

- ap

prop

riatio

n e

quity

(a)

-2,

750

7,41

91,

525

-11

,694

By

purc

hase

- ap

prop

riatio

n or

dina

ry a

nnua

l ser

vice

s (b

)-

110

6,65

17,

745

-14

,506

From

acq

uisi

tion

of e

ntiti

es o

r o

pera

tions

(inc

ludi

ng re

stru

ctur

ing)

-1,

000

(1,0

00)

--

-To

tal a

dditi

ons

-3,

860

13,0

709,

270

-26

,200

Oth

er m

ovem

ents

Dep

reci

atio

n/am

ortis

atio

n ex

pens

e-

(6,0

01)

(1,7

46)

(5,1

24)

-(1

2,87

1)

Dis

posa

ls (c

)-

From

dis

posa

l of e

ntiti

es o

r o

pera

tions

(inc

ludi

ng re

stru

ctur

ing)

-(2

,500

)-

--

(2,5

00)

Tota

l oth

er m

ovem

ents

-(8

,501

)(1

,746

)(5

,124

)-

15,3

71A

s at

30

June

201

8G

ross

boo

k va

lue

12,6

2973

,369

36,2

3544

,063

9,45

517

5,75

1A

ccum

ulat

ed d

epre

ciat

ion/

amor

tisat

ion

and

impa

irmen

t-

(12,

250)

(5,3

75)

(14,

570)

-(3

2,19

5)C

losi

ng n

et b

ook

bala

nce

12,6

2961

,119

30,8

6029

,493

9,45

514

3,55

6

(a)

‘App

ropr

iatio

n eq

uity

’ ref

ers

to e

quity

inje

ctio

ns a

ppro

pria

tions

pro

vide

d th

roug

h A

ppro

pria

tion

Bill

(No.

2) 2

017-

18, i

nclu

ding

CD

ABs.

(b)

‘App

ropr

iatio

n or

dina

ry a

nnua

l ser

vice

s’ re

fers

to fu

ndin

g pr

ovid

ed th

roug

h A

ppro

pria

tion

Bill

(No.

1) 2

017-

18 fo

r dep

reci

atio

n/am

ortis

atio

n ex

pens

es, D

CB

s or

oth

er o

pera

tiona

l exp

ense

s.(c

)N

et p

roce

eds

may

be

retu

rned

to th

e O

PA.

Pre

pare

d on

Aus

tralia

n Ac

coun

ting

Sta

ndar

ds b

asis

.


51

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

2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000


$'000EXPENSES

Employee benefits 918 918 918 918 938Suppliers 84,975 73,520 60,786 73,204 70,912Subsidies 1,750 1,826 1,688 1,931 1,931Grants 1,358,054 1,359,826 1,307,064 1,290,337 1,321,503Depreciation and amortisation 131 131 144 144 144Finance costs 305 284 265 314 293Payments to corporate entities 92,752 91,680 90,717 90,628 90,999Other expenses 159,766 166,819 171,013 173,942 176,903

Total expenses administered on behalf of Government 1,698,651 1,695,004 1,632,595 1,631,418 1,663,623

LESS:OWN-SOURCE INCOMENon-taxation revenue

Interest 84,617 84,916 84,978 84,428 83,721Other revenue 2,406 2,311 2,362 2,416 2,476

Total non-taxation revenue 87,023 87,227 87,340 86,844 86,197Total own-source revenue administeredon behalf of Government

87,023 87,227 87,340 86,844 86,197

Total own-sourced income administeredon behalf of Government

87,023 87,227 87,340 86,844 86,197

Net (cost of)/contribution by services (1,611,628) (1,607,777) (1,545,255) (1,544,574) (1,577,426)

Total comprehensive income/(loss) (1,611,628) (1,607,777) (1,545,255) (1,544,574) (1,577,426)



52

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

2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000


$'000ASSETS Financial assets

Cash and cash equivalents 20,094 20,094 20,094 20,094 20,094Trade and other receivables 114,873 113,859 109,865 96,032 82,754Investments 4,660,535 4,748,654 4,842,667 4,938,195 5,008,207

Total financial assets 4,795,502 4,882,607 4,972,626 5,054,321 5,111,055Non-financial assets

Property, plant and equipment 1,220 1,344 1,457 1,571 1,689Other non-financial assets 10,060 9,860 9,176 9,176 9,176

Total non-financial assets 11,280 11,204 10,633 10,747 10,865Total assets administered on behalf of Government 4,806,782 4,893,811 4,983,259 5,065,068 5,121,920LIABILITIESPayables

Suppliers 394 421 370 370 370Grants 19,607 19,607 19,607 19,607 19,607Other payables 8,112 7,489 7,016 7,016 7,016


Employee provisions 360 360 360 360 360Taxation refunds providedOther provisions 15,149 14,134 16,699 15,598 14,561

Total provisions 15,509 14,494 17,059 15,958 14,921Total liabilities administered on behalf of Government 43,622 42,011 44,052 42,951 41,914Net assets/(liabilities) 4,763,160 4,851,800 4,939,207 5,022,117 5,080,006 Prepared on Australian Accounting Standards basis.


53

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

2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000



Other 2,406 2,311 2,362 2,416 2,476Total cash received 2,406 2,311 2,362 2,416 2,476Cash used

Grant 1,358,054 1,359,826 1,307,064 1,290,337 1,321,503Subsidies paid 1,750 1,826 1,688 1,931 1,931Suppliers 84,975 73,520 60,786 73,204 70,912Employees 918 918 918 918 938Payments to corporate entities 92,752 91,680 90,717 90,628 90,999Other 159,766 166,819 171,013 173,942 176,903

Total cash used 1,698,215 1,694,589 1,632,186 1,630,960 1,663,186Net cash from/(used by) operating activities (1,695,809) (1,692,278) (1,629,824) (1,628,544) (1,660,710)INVESTING ACTIVITIESCash received

Investments 2,582,998 2,665,167 2,737,279 2,849,816 2,928,950Repayments of advances and loans 4,206 4,251 10,305 12,592 12,936Interest on Investments 81,641 81,953 81,940 81,930 82,062

Total cash received 2,668,845 2,751,371 2,829,524 2,944,338 3,023,948Cash used

Purchase of property, plant and equipment and intangibles 250 253 257 258 262Advances and loans madeLoans to corporate entities 65,000 - - - -Corporate entity investments 36,550 23,850 24,839 22,850 22,850Investments 2,611,312 2,692,815 2,764,066 2,875,732 2,954,132

Total cash used 2,713,112 2,716,918 2,789,162 2,898,840 2,977,244Net cash from/(used by) investing (44,267) 34,453 40,362 45,498 46,704Net increase/(decrease) in cash held (1,740,076) (1,657,825) (1,589,462) (1,583,046) (1,614,006)

Cash and cash equivalents at beginning of reporting period 20,094 20,094 20,094 20,094 20,094

Cash from Official Public Account for:

- Appropriations 1,745,926 1,663,675 1,601,210 1,596,760 1,627,720

Total cash from Official Public Account 1,745,926 1,663,675 1,601,210 1,596,760 1,627,720Cash to Official Public Account for:

- Appropriations 5,850 5,850 11,748 13,714 13,714Total cash to Official Public Account 5,850 5,850 11,748 13,714 13,714

Cash and cash equivalents at end 20,094 20,094 20,094 20,094 20,094



54

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

2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000



Capital budget - Bill 1 (ACB) 250 253 257 258 262Total new capital appropriations 250 253 257 258 262

Provided for:Purchase of non-financial assets 250 253 257 258 262

Total items 250 253 257 258 262PURCHASE OF NON-FINANCIAL

ASSETSFunded by capital appropriation - ACB (a) 250 253 257 258 262

TOTAL 250 253 257 258 262RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE Total accrual purchases 250 253 257 258 262Total cash used to acquire assets 250 253 257 258 262

(a) Does not include annual finance lease costs. Includes purchases from current and previous years’ Administered Capital Budgets (ACBs).



55

Table 3.11: Statement of administered asset movements (Budget year 2017-18)

Other property, plant and

equipment$'000

Total

$'000As at 1 July 2017

Gross book value 2,410 2,410Accumulated depreciation/amortisation and impairment (1,190) (1,190)

Opening net book balance 1,220 1,220CAPITAL ASSET ADDITIONSEstimated expenditure on new or replacement assets

By purchase - appropriation ordinary annual services (a) 253 253Total additions 253 253Other movements

Depreciation/amortisation expense (131) (131)Other 2 2

Total other movements (129) (129)As at 30 June 2018

Gross book value 2,665 2,665Accumulated depreciation/amortisation and impairment (1,321) (1,321)

Closing net book balance 1,344 1,344 (a) ‘Appropriation equity’ refers to Administered Assets and Liabilities provided through Appropriation Bill

(No. 2) 2017-18, includes CDABs.Prepared on Australian Accounting Standards basis.

57

ABORIGINAL HOSTELS LIMITED


59



SECTION 2: OUTCOMES AND PLANNED PERFORMANCE ...................................65 2.1 Budgeted expenses and performance for Outcome 1....................................66


61




Aboriginal Hostels Limited (AHL) is a Commonwealth 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 improves access to education, employment, health and other services for Aboriginal and Torres Strait Islander people travelling or relocating through the operation of hostel accommodation services.

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 2017-18 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.

AHL Budget Statements

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 (that is, 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.


63

Table 1.1: AHL resource statement — Budget estimates for 2017-18 as at Budget May 2017

2016-17 Estimated

actual$'000

2017-18 Estimate

$'000Opening balance/cash reserves at 1 July 28,367 25,810Funds from GovernmentAnnual appropriations - ordinary annual services (a)

Outcome 1 37,075 36,563Total annual appropriations 37,075 36,563Amounts received from related entitiesAmounts from portfolio department (b)

Prime Minister and Cabinet (PM&C) 2,400 2,400Amounts from other entities (c)

Northern Territory Government 2,515 2,516Total amounts received from related entities 4,915 4,916Total funds from Government 41,990 41,479Funds from other sourcesInterest 435 435Sale of goods and services 15,022 16,636Other 34 32Total funds from other sources 15,491 17,103Total net resourcing for AHL 85,848 84,392


Prepared on a resourcing (that is, appropriations available) basis.Please note: All figures shown above are GST exclusive – these may not match figures in the cash flow statement. (a) Appropriation Bill (No.1) 2017-18.(b) Funding provided by the portfolio department that is not specified within the Annual Appropriation Bills as

a payment to that corporate entity (for example, a grant awarded to a corporate entity from one of its portfolio department's administered programs).

(c) Amounts received from Northern Territory Government for operations and management of three hostels by AHL in Alice Springs.

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.


64

1.3 BUDGET MEASURES

AHL has no budget measures in the 2017-18 Budget.


65




Note:


The most recent corporate plan for AHL can be found at: http://www.ahl.gov.au/?q=our-organisation

The most recent annual performance statement can be found at: http://www.ahl.gov.au/?q=annual-report


66


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.


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.


2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000


$'000

Revenue from GovernmentOrdinary annual services (Appropriation Bill No. 1) 37,075 36,563 36,323 36,459 36,562

Payment from related entities 4,915 4,916 4,916 4,916 4,916Revenues from other independent sources 15,491 17,103 17,102 17,100 17,101Total expenses for Program 1.1 57,481 58,582 58,341 58,475 58,579Total expenses for Outcome 1 57,481 58,582 58,341 58,475 58,579

Average staffing level (number) 2016-17 2017-18420 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 hostel accommodation services.

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


67


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 opportunities.

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



2016-17(Estimated actual)

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

70%.

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

70%.


Purposes(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 opportunities.

(a) Refers to the purposes reflected in the 2017-18 Corporate Plan. Prepared on Australian Accounting Standards basis.


68




3.1.1 Differences between entity resourcing and financial statementsTable 3.2 recognises the full year revenue from 2016–17 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, 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.

3.1.2 Explanatory notes and analysis of budgeted financial statementsComprehensive Income Statement

The increase in sale of goods and rendering of services in 2017-18 and the forward years is due to an increased focus on occupancy levels mix.


The increase in property, plant and equipment in 2017-18 and the forward years is due to an ongoing reinvestment in maintaining appropriate standards of fixtures and fittings in AHL’s hostels.

The increase in employee provisions in 2017-18 and the forward years is mainly due to the impending implementation of the new Enterprise Agreement taking effect which will result in a growth in employee provisions.


69



2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000


$'000EXPENSES

Employee benefits 35,254 32,753 32,262 31,853 31,697Suppliers 21,376 21,202 21,365 21,755 21,913Depreciation and amortisation 4,025 4,029 4,116 4,269 4,371Other expenses 598 598 598 598 598



Interest 435 435 435 435 435Other 4,949 4,948 4,948 4,948 4,948

Total own-source revenue 20,406 22,019 22,018 22,016 22,017Total own-source income 20,406 22,019 22,018 22,016 22,017Net (cost of)/contribution by services (40,847) (36,563) (36,323) (36,459) (36,562)Revenue from Government 37,075 36,563 36,323 36,459 36,562Total comprehensive income/(loss) attributable to the Australian Government (3,772) - - - -



70



2017-18Budget

$'000


$'000


$'000



Cash and cash equivalents 25,810 26,367 26,950 27,613 28,358Trade and other receivables 828 828 828 828 828

Total financial assets 26,638 27,195 27,778 28,441 29,186 Non-financial assets

Land and buildings 124,931 123,783 122,451 120,966 119,379Property, plant and equipment 2,620 3,751 4,937 6,123 7,309Intangibles 191 241 333 425 517Other non-financial assets 1,470 1,458 1,446 1,434 1,422

Total non-financial assets 129,212 129,233 129,167 128,948 128,627Total assets 155,850 156,428 156,945 157,389 157,813LIABILITIESPayables

Suppliers 2,029 2,067 2,084 2,083 2,062Other payables 507 464 421 378 335

Total payables 2,536 2,531 2,505 2,461 2,397 Provisions

Employee provisions 6,874 7,457 8,000 8,488 8,976Total provisions 6,874 7,457 8,000 8,488 8,976 Total liabilities 9,410 9,988 10,505 10,949 11,373 Net assets 146,440 146,440 146,440 146,440 146,440EQUITY*Parent entity interest


Total parent entity interest 146,440 146,440 146,440 146,440 146,440Total equity 146,440 146,440 146,440 146,440 146,440

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


71


Retainedearnings

$'000

Assetrevaluation

reserve$'000

Contributedequity/ capital$'000

Totalequity

$'000Opening balance as at 1 July 2017

Balance carried forward from previous period (3,967) 56,164 94,243 146,440Adjusted opening balance (3,967) 56,164 94,243 146,440Comprehensive income

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

Attributable to the Australian Government - - - -Estimated closing balance as at 30 June 2018 (3,967) 56,164 94,243 146,440Closing balance attributable to the Australian Government (3,967) 56,164 94,243 146,440



72


2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000



Appropriations 37,075 36,563 36,323 36,459 36,562Sale of goods and rendering of services 14,748 16,369 16,368 16,366 16,367Interest 435 435 435 435 435Net GST received 1,674 1,659 1,673 1,706 1,720Other 5,567 5,559 5,559 5,559 5,559


Employees 33,932 32,124 31,673 31,319 31,161Suppliers 23,185 22,954 23,152 23,593 23,787Other 449 450 450 450 450

Total cash used 57,566 55,528 55,275 55,362 55,398Net cash from/(used by) operating activities 1,933 5,057 5,083 5,163 5,245

INVESTING ACTIVITIESCash received - - - - -Total cash received - - - - -Cash used


Total cash used 4,490 4,500 4,500 4,500 4,500Net cash from/(used by) investing activities (4,490) (4,500) (4,500) (4,500) (4,500)FINANCING ACTIVITIESNet cash from/(used by) financing activities - - - - -

Net increase/(decrease) in cash held (2,557) 557 583 663 745Cash and cash equivalents at the beginning of the reporting period 28,367 25,810 26,367 26,950 27,613




73



2017-18Budget

$'000


$'000


$'000


$'000

PURCHASE OF NON-FINANCIAL ASSETSFunded internally from departmental resources (a) 4,490 4,500 4,500 4,500 4,500

TOTAL 4,490 4,500 4,500 4,500 4,500RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLETotal purchases 4,490 4,500 4,500 4,500 4,500Total cash used to acquire assets 4,490 4,500 4,500 4,500 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; and- proceeds from the sale of assets.


74

74

Tabl

e3.

6:St

atem

ent o

fdep

artm

enta

lass

et m

ovem

ents

(Bud

get y

ear 2

017-

18)

Land

$'00

0

Bui

ldin

gs

$'00

0

Oth

er p

rope

rty,

plan

t and

eq

uipm

ent

$'00

0

Her

itage

and

cu

ltura

l

$'00

0

Com

pute

r so

ftwar

e an

d in

tang

ible

s$'

000

Tota

l

$'00

0As

at 1

Jul

y 20

17

Gro

ss b

ook

valu

e 38

,570

93,7

874,

664

1,49

962

513

9,14

5

Acc

umul

ated

dep

reci

atio

n/am

ortis

atio

n an

d im

pairm

ent

-(7

,426

)(2

,044

)(2

9)(4

34)

(9,9

33)

Ope

ning

net

boo

k ba

lanc

e38

,570

86,3

612,

620

1,47

019

112

9,21

2C

apita

l ass

et a

dditi

ons

Estim

ated

exp

endi

ture

on

new

or

repl

acem

ent a

sset

sB

y pu

rcha

se -

appr

opria

tion

ordi

nary

ann

ual

serv

ices

(a)

-2,

668

1,74

2-

904,

500

Tota

l add

ition

s-

2,66

81,

742

-90

4,50

0O

ther

mov

emen

tsD

epre

ciat

ion/

amor

tisat

ion

expe

nse

-(3

,366

)(6

11)

(12)

(40)

(4,0

29)

Dis

posa

ls (b

)-

(450

)-

--

(450

)To

tal o

ther

mov

emen

ts-

(3,8

16)

(611

)(1

2)(4

0)(4

,479

)As

at 3

0 Ju

ne 2

018

Gro

ss b

ook

valu

e38

,570

96,0

056,

406

1,49

971

514

3,19

5A

ccum

ulat

ed d

epre

ciat

ion/

amor

tisat

ion

and

impa

irmen

t-

(10,

792)

(2,6

55)

(41)

(474

)(1

3,96

2)

Clo

sing

net

boo

k ba

lanc

e38

,570

85,2

133,

751

1,45

824

112

9,23

3

(a)

‘App

ropr

iatio

n or

dina

ry

annu

al

serv

ices

’ re

fers

to

fu

ndin

g pr

ovid

ed

thro

ugh

App

ropr

iatio

n B

ill (N

o.

1)

2017

-18

for

depr

ecia

tion/

amor

tisat

ion

expe

nses

, DC

Bs o

r oth

er o

pera

tiona

l exp

ense

s.(b

)N

et p

roce

eds

may

be

retu

rned

to th

e O

PA.

Pre

pare

d on

Aus

tralia

n Ac

coun

ting

Sta

ndar

ds b

asis

.


75

AUSTRALIAN NATIONAL AUDIT OFFICE


77



SECTION 2: OUTCOMES AND PLANNED PERFORMANCE ...................................83 2.1 Budgeted expenses and performance for Outcome 1....................................84


79




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 of Australian Government programs and entities

audits of annual performance statements of Australian Government entities

provision of advice and sharing information, including better practice and insights.

To achieve its purpose, the ANAO has focused on implementing strategies that enable it to operate as a leading public sector audit practice delivering quality audit services. This occurs through strong methodology, efficient and whole-of-organisation work practices, and a focus on communicating the outcomes of our work.

In 2017-18, the ANAO will continue to invest in new models of audit service delivery, leadership capability, ICT strategies and systems, and implementation of new communication styles, services and applications. More detail can be found in the ANAO’s corporate plan which is published on the ANAO’s website – www.anao.gov.au.

ANAO Budget Statements

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.

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.


Information in this table is presented on a resourcing (that is, 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 2017-18 as at Budget May 2017

2016-17 Estimated

actual $'000

2017-18 Estimate

$'000

DepartmentalAnnual appropriations - ordinary annual services (a)

Prior year appropriations available (b) 37,945 37,487Departmental appropriation (c) 72,136 70,531s 74 retained revenue receipts (d) 3,800 3,800Departmental capital budget (e) 991 978

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

Equity injection 150 -Total departmental annual appropriations 115,022 112,796Total departmental special appropriations (g) 720 734Total departmental resourcing 115,742 113,530Total resourcing for ANAO 115,742 113,530


Prepared on a resourcing (that is, appropriations available) basis.Please note: All figures shown above are GST exclusive – these may not match figures in the cash flow statement. (a) Appropriation Bill (No.1) 2017-18.(b) Excludes $0.007m subject to administrative quarantine by Finance or withheld under section 51 of the

Public Governance, Performance and Accountability Act 2013 (PGPA Act).(c) Excludes departmental capital budget (DCB).(d) Estimated retained revenue receipts under section 74 of the PGPA Act.(e) Departmental capital budgets are not separately identified in Appropriation Bill (No.1) and form part of


(f) Appropriation Bill (No.2) 2017-18.(g) 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.


82

1.3 BUDGET MEASURES

ANAO has no budget measures in the 2017-18 Budget.


83




Note:


The most recent corporate plan for the ANAO can be found at: www.anao.gov.au/work/corporate/corporate-plan-2016

The most recent annual performance statement can be found at: www.anao.gov.au/work/annual-report


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 the ANAO intends to spend (on an accrual basis) on achieving the outcome, broken down by program, as well as by Departmental funding source.


2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000


$'000


Special appropriationsAuditor-General remuneration and expense - Auditor-General Act 1997 Schedule 1, section 3 and 7

360 367 374 381 389


1,005 1,007 578 520 520


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



2017-18Budget

$'000


$'000


$'000


$'000

Departmental expensesDepartmental appropriation 29,030 31,702 31,471 31,407 31,464s74 Retained revenue receipts (a) 934 934 934 934 934Special appropriations

Auditor-General remuneration and expense - Auditor-General Act 1997 Schedule 1, section 3 and 7

360 367 374 381 389


881 884 470 445 445


Departmental expensesDepartmental appropriation 72,136 70,531 70,019 69,877 70,006s74 Retained revenue receipts (a) 3,800 3,800 3,800 3,800 3,800

Special appropriations 720 734 748 762 778Expenses not requiring appropriation in the Budget year (b)

1,886 1,891 1,048 965 965

Departmental total 78,542 76,956 75,615 75,404 75,549Total expenses for Outcome 1 78,542 76,956 75,615 75,404 75,549


Program 1.2: Performance Audit Services


(a) Estimated expenses incurred in relation to receipts retained under section 74 of the PGPA Act(b) Expenses not requiring appropriation in the Budget year are made up of depreciation expenses and

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

.


86


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 ServicesThis 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 publiccontributing to improvements in the financial administration of Australian Government entities.

Delivery Providing independent assurance to the Parliament by:issuing financial statement audit opinions to the Australian Government and its controlled entitiesissuing other assurance reportspreparing and producing financial statement related reports.



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 entitiesPrepare and produce other assurance reports, including the Defence Major Projects ReviewTable two financial statement related reports in Parliament.

251 financial statement audit opinions to be issued (against a target of 250) 47 other assurance reports to be issued (against a target of45)Two financial statement related reports to be presented to Parliament (against a target of two)90% of recommendations included in audit reports are agreed by audited entities (against a target of 90%)The ANAO QA Program indicates that 100% of audit conclusions are appropriate and that the ANAO quality assurance framework is operating effectively (against a target of 100%).



87

Table 2.1.2: Performance criteria for Outcome 1 (continued)Year Performance criteria Targets

2017-18 (a) 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

Prepare and produce other assurance reports

Table three financial statement related reports in Parliament.

100% of the estimated 250 entities provided an auditor’s report for tabling in the Parliament45 other assurance reports producedThree assurance reports to be presented to Parliament85% of auditor’s reports to be issued within three months of the financial year end reporting date0% increase to the average cost per audit85% of assurance audit staff available hours were charged to audit work90% of recommendations included in audit reports are agreed by audited entities.90% of moderate and significant findings are addressed by material entities within one year of reporting.100% of audit staff undertook at least 20 hours of professional developmentThe ANAO independent QA Program indicates that audit conclusions are appropriately supported and that the ANAO quality assurance framework is operating effectively.


Purposes To drive accountability and transparency in the Australian Government sector through quality evidence based audit services and independent reporting to Parliament, the Executive and the public, with the result of improving public sector performance.

(a) These revised performance measures for 2017-18 and beyond will be reflected in the ANAO’s 2017-18Annual Corporate Plan.



88

Table 2.1.2: Performance criteria for Outcome 1 (continued)Program 1.2 – Performance Audit ServicesThis 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 publiccontributing to improvements in Australian Government administration by identifying and promoting better practice.

Delivery Improving public sector performance by:providing performance audit reports for the information of Parliament, the Executive and the publicpreparing Better Practice Guides and other reports.



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 improvementContribute to improvements in Australian Government administration by identifying and promoting better practice. This includes the preparation of Better Practice Guides and other reports.

55 performance audit reports to be produced for the information of Parliament, the Executive and the public (against a target of 48)12 performance audit reports to be produced every quarter (against a target of 12 per quarter)Conduct Annual Performance Statements audits – no audits requested by a Minister, 2 self-initiated reviews (against a target of 100% of those requested by a Minister, 2 self-initiated reviews)2 new or revised Better Practice Guides and other reports to be produced (against a target of 3)92% of recommendations included in performance audit reports agreed by audited entities (against a target of 90%)The ANAO QA Program indicates that 100% of audit conclusions are appropriate and that the ANAO quality assurance framework is operating effectively (against a target of 100%).



89


2017-18 (a) Provide objective reports to the Parliament, the Executive and the public on the performance of Australian Government programs and entities, including opportunities for improvementContribute to improvements in Australian Government administration by identifying and promoting better practice.

48 performance audit reports to be produced for the information of Parliament, the Executive and the public10.5 months average elapsed time for completion of performance audits0% increase to average cost per performance audit80% of performance audit staff available hours were charged to audit work90% of recommendations included in performance audit reports agreed by audited entities70% of ANAO recommendations implemented within 24 months of a performance audit report100% of audit staff that undertook at least 20 hours of professional developmentThe ANAO independent QA Program indicates that audit conclusions are appropriately supported and that the ANAO quality assurance framework is operating effectively.






90

Table 2.1.2: Performance criteria for Outcome 1 (continued)Shared performance criteria for both programs 1.1 and 1.2The ANAO has a number of performance criteria that apply to both programs 1.1 and 1.2, and are reported on collectively. Both programs contribute to the outcome by:

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

Delivery Providing independent assurance to the Parliament and improving public sector performance by:

undertaking engagements that contribute to public sector auditing and support developing nationsattending and preparing submissions to Parliamentary committees.



2016-17 and beyond Undertake engagements that contribute to public sector auditing and support developing nationsAttend and prepare submissions to Parliamentary committees.

30 appearances and submissions to Parliamentary committees (against a target of 20)Contribute to the delivery of the Australian Government’s aid program in the Indo-Pacific regionUndertake 20 engagements that contribute to public sector auditing (against a target of 20)90% of Australian Government entities acknowledge the value added by ANAO services and that ANAO staff had the professional skills and understanding of their organisation required to conduct the audit (against a target of 90%)Average value rating of 7.8 out of 10 provided by CFOs in relation to the CFO forum and Financial Audit Client Seminars (against a target of 8)Average value rating of 8 out of 10 provided by Audit committees in relation to the Audit Committee Chair forum (against a target rating of 8)100% implementation on time of recommendations made by the ANAO’s Independent Auditor (against a target of 100%).



91


2017-18 (a) Undertake engagements that contribute to public sector auditing and support developing nationsAttend and prepare submissions to Parliamentary committees.

20 appearances and submissions to Parliamentary committees 100% of requests from parliamentarians for private briefings or educational sessions that are undertaken90% of inquiries and audit requests from parliamentarians finalised within 28 days20% increase in followers on ANAO social media platforms90% of JCPAA members surveyed who were satisfied that the ANAO improved public sector performance andsupported accountability and transparency.





92




3.1.1 Differences between entity resourcing and financial statementsThe entity resource statement (Table 1.1) provides a consolidated view of all the resources available to an entity in 2017-18. 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 2017-18.


Comprehensive income statement

Total income in 2017-18 is budgeted at $75.1 million (2016-17 $76.7 million). Revenue from Government (appropriation funding) has decreased to $71.3 million (2016-17 $72.8 million) due to efficiency dividends and other savings measures.

Other revenue is expected to be $3.8 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 $2.0 million for ‘audits by arrangement’ under section 20(2) of the Auditor-General Act 1997 and other miscellaneous income.

Operating expenses for 2016-17 are estimated to total $77.0 million (2016-17: $78.5 million).

Balance sheet

The departmental balance sheet shows the ANAO’s net asset position remaining strong and stable.

At this point, no major financial transactions have been planned for 2017-18 however the current accommodation lease and IT service delivery arrangements are due to expire in 2018-19. Appropriate procurement planning will occur during 2017-18.


93

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 2017-18 is estimated to be $1.0 million. In addition, the ANAO forecasts spending a further $2.9 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.


94



2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000


$'000EXPENSES

Employee benefits 45,774 45,284 45,291 45,323 46,086Suppliers 30,882 29,781 29,276 29,116 28,498Depreciation and amortisation 1,886 1,891 1,048 965 965


Sale of goods and rendering of services

3,800 3,800 3,800 3,800 3,800

Total own-source revenue 3,800 3,800 3,800 3,800 3,800Total own-source income 3,800 3,800 3,800 3,800 3,800Net (cost of)/contribution by services (74,742) (73,156) (71,815) (71,604) (71,749)

Revenue from Government 72,856 71,265 70,767 70,639 70,784Surplus/(deficit) attributable to the Australian Government (1,886) (1,891) (1,048) (965) (965)Total comprehensive income/(loss) attributable to the Australian Government (1,886) (1,891) (1,048) (965) (965)

Note: Impact of net cash appropriation arrangements2016-17

$'0002017-18

$'0002018-19

$'0002019-20

$'0002020-21

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

less depreciation/amortisation expenses previously funded through revenue appropriations (a) 1,886 1,891 1,048 965 965

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



95



2017-18Budget

$'000


$'000


$'000



Cash and cash equivalents 681 681 681 681 681Trade and other receivables 38,273 38,075 38,032 38,032 38,032Other financial assets 102 102 102 102 102


Land and buildings 1,003 113 70 70 70Property, plant and equipment 1,516 1,608 1,512 1,786 1,869Intangibles 1,668 1,553 1,615 1,345 1,267Other non-financial assets 1,062 1,062 1,062 1,062 1,062

Total non-financial assets 5,249 4,336 4,259 4,263 4,268 Total assets 44,305 43,194 43,074 43,078 43,083 LIABILITIESPayables




Total provisions 13,981 13,783 13,740 13,740 13,740 Total liabilities 17,998 17,800 17,757 17,757 17,757 Net assets 26,307 25,394 25,317 25,321 25,326 EQUITY*

Contributed equity 12,727 13,705 14,676 15,645 16,615Reserves 564 564 564 564 564Retained surplus (accumulated deficit) 13,016 11,125 10,077 9,112 8,147



96


Retainedearnings

$'000

Assetrevaluation

reserve$'000

Contributedequity/capital$'000

Totalequity


Balance carried forward from previous period 13,016 564 12,727 26,307

Adjusted opening balance 13,016 564 12,727 26,307Comprehensive income

Surplus/(deficit) for the period (1,891) - - (1,891)Total comprehensive income (1,891) - - (1,891)Transactions with ownersContributions by owners

Departmental capital budget (DCB) 978 978Sub-total transactions with owners - - 978 978Estimated closing balance as at 30 June 2018 11,125 564 13,705 25,394Closing balance attributable to the Australian Government 11,125 564 13,705 25,394



97


2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000



Appropriations 73,315 71,463 70,810 70,639 70,784Rendering of services 3,800 3,800 3,800 3,800 3,800


Employees 45,775 45,284 45,291 45,323 46,086Suppliers 31,080 29,979 29,319 29,116 28,498

Total cash used 76,855 75,263 74,610 74,439 74,584Net cash from/(used by) operating activities 260 - - - -INVESTING ACTIVITIESCash used

Purchase of property, plant and equipment and intangibles 1,401 978 971 969 970

Total cash used 1,401 978 971 969 970Net cash from/(used by) investing activities (1,401) (978) (971) (969) (970)FINANCING ACTIVITIESCash received

Contributed equity 1,141 978 971 969 970Total cash received 1,141 978 971 969 970Net cash from/(used by) financing activities 1,141 978 971 969 970Net increase/(decrease) in cash held - - - - -

Cash and cash equivalents at the beginning of the reporting period 681 681 681 681 681

Cash and cash equivalents at the end of the reporting period 681 681 681 681 681



98



2017-18Budget

$'000


$'000


$'000



Capital budget - Bill 1 (DCB) 991 978 971 969 970Equity injections - Bill 2 150 - - - -

Total new capital appropriations 1,141 978 971 969 970Provided for:

Purchase of non-financial assets 1,141 978 971 969 970Total items 1,141 978 971 969 970PURCHASE OF NON-FINANCIAL ASSETS

Funded by capital appropriations (a) 150 - - - -Funded by capital appropriation - DCB (b) 991 978 971 969 970

TOTAL 1,141 978 971 969 970RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE

Total purchases 991 978 971 969 970Total cash used to acquire assets 991 978 971 969 970

(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).Prepared on Australian Accounting Standards basis.


99

Table 3.6: Statement of departmental asset movements (Budget year 2017-18) Buildings

$'000

Other property,plant and

equipment$'000

Computersoftware and

intangibles$'000

Total

$'000As at 1 July 2017

Gross book value 5,393 3,859 6,884 16,136Accumulated depreciation/amortisation and impairment (4,390) (2,343) (5,216) (11,949)

Opening net book balance 1,003 1,516 1,668 4,187Capital asset additions

Estimated expenditure on new or replacement assetsBy purchase - appropriation ordinary annual services (a) - 633 345 978Total additions - 633 345 978Other movementsDepreciation/amortisation expense (890) (541) (460) (1,891)Total other movements (890) (541) (460) (1,891)

As at 30 June 2018Gross book value 5,393 4,492 7,229 17,114Accumulated depreciation/ amortisation and impairment (5,280) (2,884) (5,676) (13,840)

Closing net book balance 113 1,608 1,553 3,274 (a) ‘Appropriation ordinary annual services’ refers to funding provided through Appropriation Bill (No. 1)

2017-18 for depreciation/amortisation expenses, DCBs or other operational expenses.Prepared on Australian Accounting Standards basis.


100

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

2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000


$'000

OWN-SOURCE INCOMEOwn-source revenueNon-taxation revenue


Total 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 12,300

Net cost of/(contribution by) services (12,300) (12,300) (12,300) (12,300) (12,300)



101


2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000



Cash and cash equivalents 371 371 371 371 371Trade and other receivables 4,783 4,783 4,783 4,783 4,783Other financial assets 1,240 1,240 1,240 1,240 1,240

Total financial assets 6,394 6,394 6,394 6,394 6,394Total assets administered on behalf of Government 6,394 6,394 6,394 6,394 6,394

LIABILITIESPayables

Other payables 435 435 435 435 435Total payables 435 435 435 435 435Total liabilities administered on behalf of Government 435 435 435 435 435

Net assets/(liabilities) 5,959 5,959 5,959 5,959 5,959 Prepared on Australian Accounting Standards basis.


102


2016-17 Estimated

actual$'000

2017-18Budget

$'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 12,300

Net increase/(decrease) in cash held 12,300 12,300 12,300 12,300 12,300

Cash and cash equivalents at beginning of reporting period 371 371 371 371 371


- Transfers from other entities (Finance - Whole of Government)

(12,300) (12,300) (12,300) (12,300) (12,300)

Total cash from Official Public Account (12,300) (12,300) (12,300) (12,300) (12,300)

Cash and cash equivalents at end of reporting period 371 371 371 371 371


103

AUSTRALIAN PUBLIC SERVICE COMMISSION


105


SECTION 1: ENTITY OVERVIEW AND RESOURCES.............................................107 1.1 Strategic direction statement ........................................................................ 107 1.2 Entity resource statement ............................................................................. 108 1.3 Budget measures.......................................................................................... 110

SECTION 2: OUTCOMES AND PLANNED PERFORMANCE .................................111 2.1 Budgeted expenses and performance for Outcome 1..................................112

SECTION 3: BUDGETED FINANCIAL STATEMENTS.............................................117 3.1 Budgeted financial statements...................................................................... 117 3.2 Budgeted financial statements tables........................................................... 119

107




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 2017-18 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.

APSC Budget Statements

108


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





109

Table 1.1: APSC resource statement — Budget estimates for 2017-18 as at Budget May 2017

2016-17 Estimated

actual $'000

2017-18 Estimate

$'000


Prior year appropriations available (b) 24,055 22,888Departmental appropriation (c) 20,334 22,811s 74 retained revenue receipts (d) 20,232 19,002Departmental capital budget (e) 567 414

Total departmental annual appropriations 65,188 65,115Total departmental resourcing 65,188 65,115AdministeredTotal administered special appropriations (f) 64,404 65,369Total administered resourcing 64,404 65,369Total resourcing for APSC 129,592 130,484


Third party payments from and on behalf of other entitiesPayments made by other entities on behalf of APSC (disclosed above)

Attorney-General's Department - Remuneration Tribunal Act 1973 3,838 3,896Department of the House of Representatives - Remuneration Tribunal Act 1973 40,508 41,114Department of the Senate - Remuneration Tribunal Act 1973 20,058 20,359

Prepared on a resourcing (that is, appropriations available) basis.Please note: All figures shown above are GST exclusive – these may not match figures in the cash flow statement. (a) Appropriation Bill (No.1) 2017-18.(b) Excludes amounts subject to administrative quarantine by Finance or withheld under section 51 of the

Public Governance, Performance and Accountability Act 2013 (PGPA Act).(c) Excludes departmental capital budget (DCB).(d) Estimated retained revenue receipts under section 74 of the PGPA Act 2013.(e) Departmental capital budgets are not separately identified in Appropriation Bill (No.1) and form part of


(f) 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.


110

1.3 BUDGET MEASURES

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

Table 1.2: Entity 2017-18 Budget measures


Program2016-17

$'0002017-18

$'0002018-19

$'0002019-20

$'0002020-21

$'000Expense measuresPublic Service Modernisation Fund - transformation and innovation stream 1.1


Total - - - - -Total expense measures

Departmental - - - - -

Total - - - - -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.


111




Note:


The most recent corporate plan for the APSC can be found at: http://www.apsc.gov.au/publications-and-media/current-publications/corporateplan2016

The most recent annual performance statement can be found at insert link: http://www.apsc.gov.au/publications-and-media/parliamentary/annual-report


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.

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.


2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000


$'000



1,165 1,166 1,167 1,168 1,169


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



113



2017-18Budget

$'000


$'000


$'000


$'000

Administered expensesSpecial appropriations

Remuneration Tribunal Act 1973 64,404 65,369 66,611 67,676 68,759Administered total 64,404 65,369 66,611 67,676 68,759


Administered expensesSpecial appropriations 64,404 65,369 66,611 67,676 68,759

Administered total 64,404 65,369 66,611 67,676 68,759Departmental expenses

Departmental appropriation 20,334 22,811 21,278 20,353 20,097s74 Retained revenue receipts (a) 20,232 19,002 19,233 19,346 19,457


1,165 1,166 1,167 1,168 1,169



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


(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,

amortisation expenses, make good 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.


114

Table 2.1.2: Performance criteria for Outcome 1Table 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 2017-18 Budget measures have created new programs or materially changed existing programs. 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 CommissionThis 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.



2016-17 Implement a contemporary APS employment frameworkWork with Commonwealth employers to improve workplace relations outcomesImprove 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 assessableAPSC-specific recommendations from key reviews are implementedAPS workforce management contestability review is implemented by March 2017New enterprise agreements in place in all agencies covered by the Workplace Bargaining Policy 2015Introduce a program during 2016 to enhance the bargaining and workplace relations capability of entity staffImplement APS Leadership and Core Skills Strategy

Expected achievement:Enterprise agreements are in place in over 60% of agencies. We expect that all of the other targets will be achieved in2016-17.



115


2017-18 Modernise the APS employment framework

Work with Commonwealth employers to improve workplace relations outcomes

Build APS capability.

Modernise the APS legislative framework to reflect changes in the nature of workRenew the APSjobs websiteConduct trial to improve mobilitySupport agencies who are negotiating new enterprise agreementsImprove the skills of agencies in workplace relationsImprove APS induction processes by developing a central APS induction portalPartner with the Digital Transformation Agency to build digital capability in the APS.

2018-19 andbeyond

As per 2017-18. As per 2017-18.Partner with APS agencies to professionalise and raise the profile of the APS human resource functionsImplement recommendations to improve whole of government mobility by 2018-19.

Purpose (a) To create a high performing APS that delivers quality outcomes for Government, business and the community. To make genuine and enduring changes to the way the APS operates.



116

Table 2.1.2: Performance criteria for Outcome 1 (continued)Program 1.2 – Parliamentarians’ and Judicial Office Holders’ Remuneration and EntitlementsThis 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.



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.

2017-18 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.

2018-19 andbeyond

As per 2017-18. As per 2017-18.

Purpose (a) To create a high performing APS that delivers quality outcomes for Government, business and the community. To make genuine and enduring changes to the way the APS operates.

(a) Refers to updated purposes that will be reflected in the 2017-18 Corporate Plan.


117




3.1.1 Differences between entity resourcing and financial statementsThe entity resource statement (Table 1.1) provides a consolidated view of all the resources available to the APSC in 2017-18 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) shows only the departmental operating appropriation provided in each year.



In all Budget years the APSC is budgeting for a break-even operating result, adjusted for depreciation and amortisation expense. Appropriations will increase in 2017-18 due to budget measure funding for the Public Service Modernisation Fund – transformation and innovation stream. Funding for this budget measure is at lower levels in 2018-19 and 2019-20.

Goods and services income will also reduce in 2017-18 as the APSC wound down some functions during 2016-17.


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 2017-18 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.


118

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.


119



2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000


$'000

EXPENSESEmployee benefits 26,776 25,572 25,879 26,063 26,202Suppliers 13,690 16,143 14,535 13,540 13,258Grants Depreciation and amortisation 1,260 1,260 1,260 1,260 1,260Finance costs 5 4 4 4 3



20,232 19,002 19,233 19,346 19,457

Other 43 44 45 46 47Total own-source revenue 20,275 19,046 19,278 19,392 19,504Gains

Sale of assets - - - - -Total gains - - - - -Total own-source income 20,275 19,046 19,278 19,392 19,504Net (cost of)/contribution by services (21,456) (23,933) (22,400) (21,475) (21,219)

Revenue from Government 20,334 22,811 21,278 20,353 20,097Surplus/(deficit) attributable to the Australian Government (1,122) (1,122) (1,122) (1,122) (1,122)


$'0002017-18

$'0002018-19

$'0002019-20

$'0002020-21


less depreciation/amortisation expenses previously funded through revenue 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)(a) From 2010-11, the Government introduced net cash appropriation arrangements where Bill 1 revenue




120



2017-18Budget

$'000


$'000


$'000



Cash and cash equivalents 750 750 750 750 750Trade and other receivables 23,989 23,361 22,785 22,089 21,130


Land and buildings 1,561 1,292 1,013 716 401Property, plant and equipment 632 631 488 431 275Intangibles 2,097 1,996 2,047 2,032 2,135Inventories 48 48 48 48 48Other non-financial assets 565 565 565 565 565

Total non-financial assets 4,903 4,532 4,161 3,792 3,424 Assets held for sale

Total assets 29,642 28,643 27,696 26,631 25,304 LIABILITIESPayables




Total provisions 7,664 7,529 7,533 7,536 7,384 Total liabilities 19,172 18,881 18,645 18,289 17,670 Net assets 10,470 9,762 9,051 8,342 7,634 EQUITY*Parent entity interest

Contributed equity 1,775 2,189 2,600 3,013 3,427Reserves 1,899 1,899 1,899 1,899 1,899Retained surplus (accumulated deficit) 6,796 5,674 4,552 3,430 2,308

Total equity 10,470 9,762 9,051 8,342 7,634*’Equity’ is the residual interest in assets after deduction of liabilities.Prepared on Australian Accounting Standards basis.


121


Retainedearnings

$'000

Assetrevaluation

reserve$'000


Totalequity


Balance carried forward from previous period 6,796 1,899 1,775 10,470

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

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

Departmental capital budget (DCB) - - 414 414Sub-total transactions with owners - - 414 414Estimated closing balance as at 30 June 2018 5,674 1,899 2,189 9,762



122


2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000




Net GST receivedOther 2,367 2,340 2,114 2,135 2,385


Employees 26,776 25,572 25,879 26,063 26,202Suppliers 15,451 17,967 16,268 15,293 15,104Net GST paidOther - - - - -

Total cash used 42,227 43,539 42,147 41,356 41,306Net cash from/(used by) operating activities 706 614 478 478 633INVESTING ACTIVITIESCash received

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

Total cash received - - - - -Cash used

Purchase of property, plant and equipment and intangibles 1,598 889 889 891 892

Other - 139 - - 155Total cash used 1,598 1,028 889 891 1,047Net cash from/(used by) investing activities (1,598) (1,028) (889) (891) (1,047)FINANCING ACTIVITIESCash received

Contributed equity 567 414 411 413 414Total cash received 567 414 411 413 414Net cash from/(used by) financing activities 567 414 411 413 414Net increase/(decrease) in cash held (325) - - - -

Cash and cash equivalents at the beginning of the reporting period 1,075 750 750 750 750

Cash and cash equivalents at the end of the reporting period 750 750 750 750 750Prepared on Australian Accounting Standards basis.


123



2017-18Budget

$'000


$'000


$'000



Capital budget - Bill 1 (DCB) 567 414 411 413 414Total new capital appropriations 567 414 411 413 414Provided for:

Purchase of non-financial assets 567 414 411 413 414Total items 567 414 411 413 414PURCHASE OF NON-FINANCIAL ASSETS

Funded by capital appropriation - DCB (a) 567 414 411 413 414

Funded internally from departmental resources (b) 1,031 475 478 478 478

TOTAL 1,598 889 889 891 892RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE

Total purchases 1,598 889 889 891 892Total cash used to acquire assets 1,598 889 889 891 892

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

(b) 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; and- proceeds from the sale of assets.



124

Table 3.6: Statement of departmental asset movements (Budget year 2017-18) Buildings

$'000


equipment$'000


intangibles$'000

Total

$'000As at 1 July 2017

Gross book value 1,993 1,618 5,560 9,171Accumulated depreciation/amortisation and impairment (432) (986) (3,463) (4,881)

Opening net book balance 1,561 632 2,097 4,290Capital asset additions

Estimated expenditure on new or replacement assetsBy purchase - appropriation ordinary annual services (a) 100 272 517 889Total additions 100 272 517 889Other movementsDepreciation/amortisation expense (369) (273) (618) (1,260)Total other movements (369) (273) (618) (1,260)

As at 30 June 2018Gross book value 2,093 1,890 6,077 10,060Accumulated depreciation/ amortisation and impairment (801) (1,259) (4,081) (6,141)

Closing net book balance 1,292 631 1,996 3,919(a) ‘Appropriation ordinary annual services’ refers to funding provided through Appropriation Bill (No. 1)



125

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

2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000


$'000

EXPENSESEmployee benefits 64,404 65,369 66,611 67,676 68,759

Total expenses administered on behalf of Government 64,404 65,369 66,611 67,676 68,759

Net cost of/(contribution by) services 64,404 65,369 66,611 67,676 68,759

Total comprehensive income/(loss) (64,404) (65,369) (66,611) (67,676) (68,759)Prepared on Australian Accounting Standards basis.


126

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

2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000


$'000

OPERATING ACTIVITIESCash used

Employees 64,404 65,369 66,611 67,676 68,759Total cash used 64,404 65,369 66,611 67,676 68,759Net cash from/(used by) operating activities (64,404) (65,369) (66,611) (67,676) (68,759)

Net increase/(decrease) in cash held (64,404) (65,369) (66,611) (67,676) (68,759)

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


- Appropriations 64,404 65,369 66,611 67,676 68,759Total cash from Official Public Account 64,404 65,369 66,611 67,676 68,759

Cash and cash equivalents at end of reporting period - - - - -


.

127

DIGITAL TRANSFORMATION AGENCY


129





131




The Digital Transformation Agency (DTA)’s vision is that government services are transformed to better meet the needs of users. The DTA partners with agencies to drive user-centred service delivery and improve transparency of the benefits, costs and risks of information and communications technology (ICT) and digital investments across the Australian Government.

Under the Administrative Arrangements Order (AAO) of 27 October 2016, responsibilities for whole of government ICT and ICT procurement policy and services transferred from the Department of Finance to the DTA.

In 2017-18, the DTA will work towards its vision by focusing on:

developing policies and strategies to further drive the digital transformation across government, including new approaches to ICT procurement, the Australian government’s web presence through GOV.AU, the use of newer technologies and project delivery

assisting agencies transform their digital services through embedding DTA expertise into agency projects and helping agencies meet the digital service standard with public reporting against key performance indicators 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.

developing enabling platforms that can be reused across government, avoiding duplication and inconsistency. This includes a platform to make it easier for people to prove that they are who they say they are when they access government services

providing DTA expert advice to the government on all significant ICT and digital investments to ensure they are aligned with the digital transformation agenda and use best practice design and delivery methodologies

establishing a whole-of-government Project Management Office (the Digital Investment Management Office) to provide oversight for the government on ICT investment, delivery and benefits realisation

DTA Budget Statements

132

delivering professional services in respect of key Whole of Australian Government (WoAG) purchasing arrangements to ensure efficient and effective management of government resources

providing leadership across the Australian Government on service design and delivery

establishing a Cyber Security Advisory Office to provide strengthened central governance and assurance for cyber security and broader project vulnerability across government.


133


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





134

Table 1.1: DTA resource statement — Budget estimates for 2017-18 as at Budget May 2017

2016-17 Estimated

actual $'000

2017-18 Estimate


Prior year appropriations available (b) 10,627 12,584Departmental appropriation (c) 48,292 71,431s 74 retained revenue receipts (d) 18,508 3,035Departmental capital budget (e) - -

Total departmental annual appropriations 77,427 87,050Non-appropriation receipts (f) - 127,440

Total departmental resourcing 77,427 214,490Total resourcing for DTA 77,427 214,490


Third party payments from and on behalf of other entitiesReceipts received from other entities for the provision of services (disclosed above in s74 Retained revenue receipts and non-appropriation receipts section above) 18,508 130,475

Prepared on a resourcing (that is, appropriations available) basis.Please note: All figures shown above are GST exclusive – these may not match figures in the cash flow statement. (a) Appropriation Bill (No.1) 2017-18.(b) Excludes $2.226m subject to administrative quarantine by Finance or withheld under section 51 of the

Public Governance, Performance and Accountability Act 2013 (PGPA Act).(c) 2016-17 includes funding for measures ($3.750m) that were already provided for by the Government, but

due to the absence of portfolio supplementary additional estimates in 2015-16, these funds were unable to be appropriated in 2015-16. Excludes departmental capital budget (DCB).

(d) Estimated retained revenue receipts under section 74 of the PGPA Act.(e) Departmental capital budgets are not separately identified in Appropriation Bill (No.1) and form part of


(f) Estimated receipts from the final tranche of the Machinery of Government changes relating to the transfer of WoAG ICT procurement functions from the Department of Finance to the DTA in 2016-17. Amount has been declared as non-appropriation receipts pending the establishment of a special account.


135

1.3 BUDGET MEASURES

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

Table 1.2: DTA 2017-18 Budget measures


Program2016-17

$'0002017-18

$'0002018-19

$'0002019-20

$'0002020-21

$'000Expense measures GovPass Program - trusted digital identity framework 1.1

Departmental expenses - - - - - Bureau of Meteorology - improved security and resilience (a) 1.1

Departmental expenses - 200 191 192 193 Cyber Security Advisory Office - establishment 1.1

Departmental expenses - 2,838 2,692 2,570 2,585Public Service Modernisation Fund - transformation and innovation stream 1.1

Departmental expenses - - - - - Total expense measures - 3,038 2,883 2,762 2,778

Departmental - 3,038 2,883 2,762 2,778Total - 3,038 2,883 2,762 2,778

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.(a) The lead entity for this measure is Bureau of Meteorology. The full measure description and package

details appear in Budget Paper No. 2 under the Prime Minister and Cabinet portfolio.


136




Note:


The most recent corporate plan for DTA can be found at: https://www.dta.gov.au/who-we-are/corporate/plan

The most recent annual performance statement can be found at: https://www.dta.gov.au/who-we-are/corporate/annual-report/2015-16/3-organisational-performance


137


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 the DTA intends to spend (on an accrual basis) on achieving the outcome, broken down by program, as well as funding source.


2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000


$'000


Non-appropriation receipts (b) - 124,450 110,461 101,792 83,353Expenses not requiring appropriation in the Budget year (c)

633 633 633 634 185



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 Digital Transformation Agency

(a) Estimated expenses incurred in relation to receipts retained under section 74 of the PGPA Act. (b) Relates to the AAO of 27 October 2016, responsibilities for whole of government ICT and ICT

procurement policy and services transferred from the Department of Finance to the DTA.(c) Expenses not requiring appropriation in the Budget year are made up of depreciation and amortization

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


138


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 for their usersdelivery of whole-of-government common platformssupporting delivery of government-wide initiatives to join-up servicesestablishing communities, developing best practices, and building a digital culturecreating policy and standards to support consistent service transformation across government agencies

building digital leadership and capability across government agencies

developing and managing WoAG procurement arrangements for entities

providing advice to government and Commonwealth entities on ICT investment, delivery and implementation of ICT policies

delivering high quality ICT Entry Level Programs to entities.


Year Performance criteria (a) Targets

2016-17 Simpler and clearer government services and information for users and consolidation of the government’s web estateTransformation of agency digital services in delivery hubs and public reporting against KPIs on a performance dashboardGreater 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.AUServices meeting the Digital Service Standard will deliver improved user satisfaction, increased digital take-up, higher completion rates and/or reduced cost per transactionDeliver an alpha and public beta of the Digital MarketplaceDeliver a Trusted Digital Identity Framework

Deliver an identity alphacontinued on next page


139

Table 2.1.2: Performance criteria for Outcome 1 (continued)Year Performance criteria (a) Targets

2017-18 Develop a whole-of-government ICT strategy and digital transformation roadmapSupport the development and integration of whole-of-government platformsEstablish a whole-of-government ICT and digital program management office to design and build reporting requirements, improve governance, and risk management standardsProvide analysis and advice to government on ICT and digital investmentsDevelop and deliver a detailed DTA engagement plan that will be implemented around key initiatives

Deliver ICT and digital strategies that support the government’s transformation agenda and are put in place and taken up by departments and agencies Develop and/or deliver ICT and digital platforms that are successfully used across governmentProvide increased transparency of the government’s ICT and digital products, their costs, risks and implementation progressAll government agencies will have a clear understanding of the DTA’s role


Purposes (b) Our clear mandate is to drive user-centered service delivery and improve transparency of the benefits, costs and risks of ICT and digital investments made across the Australian Government.

(a) New or modified performance criteria that reflect new or materially changed programs are shown in italics.

(b) Refers to updated purpose that will be reflected in the 2017-18 Corporate Plan.


140




3.1.1 Differences between entity resourcing and financial statementsThe entity resource statement (Table 1.1) provides a consolidated view of all the resources available to the DTA in 2017-18. This includes appropriation receivable that is yet to be drawn to cover payables and provisions on the balance sheet. The comprehensive income statement (Table 3.1) shows the operating appropriation provided in 2017-18.

3.1.2 Explanatory notes and analysis of budgeted financial statementsDepartmental costs are projected to be approximately $199.6 million for 2017-18, split between employee expenses of $33.9 million and $165.7 million of supplier expenses.


141



2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000


$'000EXPENSES

Employee benefits 15,424 33,944 29,371 26,537 25,019Suppliers 51,561 165,742 140,174 120,970 98,000Grants - - - - -Depreciation and amortisation 448 448 448 449 -Write-down and impairment of assets - - - - -

Total expenses (b) 67,433 200,134 169,993 147,956 123,019LESS: OWN-SOURCE INCOMEOwn-source revenue

Sale of goods and rendering of services (c)

18,508 130,475 110,264 101,604 83,095

Other 185 185 185 185 185Total own-source revenue 18,693 130,660 110,449 101,789 83,280Total own-source income 18,693 130,660 110,449 101,789 83,280Net (cost of)/contribution by services (48,740) (69,474) (59,544) (46,167) (39,739)

Revenue from Government (c) 48,292 71,431 56,281 42,893 36,909Surplus/(deficit) attributable to the Australian Government (448) 1,957 (3,263) (3,274) (2,830)Total comprehensive income/(loss) (448) 1,957 (3,263) (3,274) (2,830)Total comprehensive income/(loss) attributable to the Australian Government (448) 1,957 (3,263) (3,274) (2,830)



142

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

2016-17$'000

2017-18$'000

2018-19$'000

2019-20$'000

2020-21$'000

Total comprehensive income/(loss) excluding depreciation/ amortisation expenses previously funded through revenue appropriations - 2,405 (2,815) (2,825) (2,830)

less depreciation/amortisation expenses previously funded through revenue appropriations (a)

448 448 448 449 -Total comprehensive income/(loss) - as per the statement of comprehensive income (448) 1,957 (3,263) (3,274) (2,830)


(b) Includes estimates for expenses anticipated to be funded from a special account to be established with DTA as a result of the WoAG ICT procurement function transferred from the Department of Finance in accordance with AAO dated 27 October 2016.

(c) Includes estimates for revenue as a result of the WoAG ICT procurement function transferred from the Department of Finance in accordance with AAO dated 27 October 2016.



143



2017-18Budget

$'000


$'000


$'000



Cash and cash equivalents 395 395 395 395 395Trade and other receivables (a) 12,433 44,905 42,132 39,296 36,466Other financial assets - - - - -


Land and buildings 886 591 296 - -Property, plant and equipment 313 209 105 - -Intangibles 146 97 48 - -Other non-financial assets 550 505 495 497 497

Total non-financial assets 1,895 1,402 944 497 497 Assets held for sale

Total assets 14,723 46,702 43,471 40,188 37,358 LIABILITIESPayables

Suppliers 4,308 4,218 4,196 4,201 4,201Personnel benefits 81 81 81 81 81Other payables 1,305 1,338 1,372 1,339 1,339



Total provisions 2,275 2,293 2,313 2,332 2,332 Total liabilities 7,969 7,930 7,962 7,953 7,953 Net assets 6,754 38,772 35,509 32,235 29,405



144

Table 3.2: Budgeted departmental balance sheet (as at 30 June) (continued)2016-17


2017-18Budget

$'000


$'000


$'000


$'000EQUITY*Parent entity interest

Contributed equity (a) 3,492 33,553 33,553 33,553 33,553Retained surplus (accumulated deficit) 3,262 5,219 1,956 (1,318) (4,148)

Total equity 6,754 38,772 35,509 32,235 29,405 (a) Includes the anticipated balance transfer of the Department of Finance’s special account relating to the

WoAG ICT procurement function.*’Equity’ is the residual interest in assets after deduction of liabilities.Prepared on Australian Accounting Standards basis.


145


Retainedearnings

$'000


Totalequity


Balance carried forward from previous period 3,262 3,492 6,754

Adjusted opening balance 3,262 3,492 6,754Comprehensive income

Other comprehensive income 1,957 - 1,957Total comprehensive income 1,957 - 1,957Transactions with ownersContributions by owners

Restructuring (a) - 30,061 30,061Total transactions with owners - 30,061 30,061Estimated closing balance as at 30 June 2018 5,219 33,553 38,772Closing balance attributable to the Australian Government 5,219 33,553 38,772 (a) The anticipated balance transfer of the Department of Finance’s special account relating to the WoAG

ICT procurement function.Prepared on Australian Accounting Standards basis.


146


2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000




Non-appropriation receipts (a) 125,035 110,908 102,260 83,804Net GST received - - - - -



Total cash used 68,939 199,501 169,360 147,322 122,834Net cash from/(used by) operating activities 250 - - - -Net increase/(decrease) in cash held 250 - - - -



(a) Relates to the AAO of 27 October 2016, responsibilities for whole of government ICT and ICT procurement policy and services transferred from the Department of Finance to the DTA.



147

Table 3.5: Statement of departmental asset movements (Budget year 2017-18)Buildings

$'000


equipment$'000


intangibles$'000

Total

$'000As at 1 July 2017

Gross book value 1,362 815 672 2,849Accumulated depreciation/amortisation and impairment (476) (502) (526) (1,504)

Opening net book balance 886 313 146 1,345Other movementsDepreciation/amortisation expense (295) (104) (49) (448)Total other movements (295) (104) (49) (448)

As at 30 June 2018Gross book value 1,362 815 672 2,849Accumulated depreciation/ amortisation and impairment (771) (606) (575) (1,952)

Closing net book balance 591 209 97 897Prepared on Australian Accounting Standards basis.

149

INDIGENOUS BUSINESS AUSTRALIA

ENTITY RESOURCES AND PLANNEDPERFORMANCE

151





153




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.

IBA Budget Statements

154


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 2017-18 as at Budget May 2017

2016-17 Estimated

actual$'000

2017-18 Estimate

$'000Funds from Government

Annual appropriations - ordinary annual services (a)

Outcome 1 10,602 10,133Annual appropriations - other services (b)

Equity injection 36,550 22,850Total annual appropriations 47,152 32,983Payments from Related Entities Grants from Department of the Prime Minister and Cabinet (c) 23,086 27,542� 23,086 27,542Total funds from Government 70,238 60,525Funds from other sources

Interest 50,031 49,317Sale of goods and services 95,077 80,276Rent 20,552 13,221Dividend 3,046 4,688Other 2,101 3,069

Total funds from other sources 170,807 150,571Total net resourcing for IBA 241,045 211,096


Prepared on a resourcing (that is, appropriations available) basis.Please note: All figures shown above are GST exclusive – these may not match figures in the cash flowstatement. (a) Appropriation Bill (No.1) 2017-18.(b) Appropriation Bill (No.2) 2017-18.(c) Funding provided by a government entity that is not specified within the Appropriation Bills.


155

1.3 BUDGET MEASURES

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



Program2016-17

$'0002017-18

$'0002018-19

$'0002019-20

$'0002020-21

$'000Expense measuresBusiness Support for Indigenous Entrepreneurs - extension (a) 1.3

Departmental expenses - (23,022) (23,017) (23,041) (23,041)Total - (23,022) (23,017) (23,041) (23,041)Total expense measuresDepartmental - (23,022) (23,017) (23,041) (23,041)Total - (23,022) (23,017) (23,041) (23,041)Capital measuresBusiness Support for Indigenous Entrepreneurs - extension (a) 1.3

Departmental capital - (13,700) (13,700) (13,700) (13,700)Total - (13,700) (13,700) (13,700) (13,700)Total capital measures

Departmental - (13,700) (13,700) (13,700) (13,700)Total - (13,700) (13,700) (13,700) (13,700)Total measures

Departmental - (36,722) (36,717) (36,741) (36,741)Total - (36,722) (36,717) (36,741) (36,741)

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.(a) The lead entity for measure titled Business Support for Indigenous Entrepreneurs – extension is the

Department of the Prime Minister and Cabinet. The full measure description and package details appear in Budget Paper No. 2 under the Prime Minister and Cabinet portfolio.


156


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:


The most recent corporate plan for IBA can be found at: http://www.iba.gov.au/iba-corporate-plan-2016-17

The most recent annual performance statement can be found at: http://www.iba.gov.au/reports/AR1516/assets/pdfs/IBA_AR1516.pdf


157


Outcome 1: Improved wealth acquisition to support the economic independence of Aboriginal and Torres Strait Islander peoples through commercial enterprise, asset acquisition and access to concessional business and home finance.


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 source.


2016-17Budget

$'000


$'000


$'000


$'000


$'000

Revenue from GovernmentOrdinary annual services (Appropriation Bill No. 1)

Revenues from other independent sources 116,447 102,869 104,313 105,898 107,487Total expenses for Program 1.1 116,447 102,869 104,313 105,898 107,487



Revenue from GovernmentOrdinary annual services (Appropriation Bill No. 1) - - - - -



Revenues from other independent sources 163,571 149,291 151,954 154,576 156,914Total expenses for Outcome 1 174,173 159,424 161,716 164,163 166,626


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 and access to concessional home and business loans.

Program 1.3: Business Development and Assistance



158


Outcome 1 – Improved wealth acquisition to support the economic independence of Aboriginal and Torres Strait Islander peoples through commercial enterprise, asset acquisition and access to concessional business and home finance.Delivery IBA will increase wealth and assets for Indigenous individuals, families,

businesses, land councils and traditional owner groups through:delivering finance products and support to assist Indigenous customers to enter into home ownershipbuilding commercial capability and wealth creation through direct management of businesses and investments and the provision of leasing and finance services The provision of finance products and support to assist Indigenous customers to start-up, acquire or grow their own businesses1.


Performance criteria

2016–17Estimated

Actual

2017–18Budget

2018–19Forward estimate

2019-20Forwardestimate

2020–21Forwardestimate

Number of Indigenous jobs created or supported by IBA(a)

49 57 67 68 69

% of jobs held by Indigenous people within IBA(a)

26% 30.5% 35% 35% 35%

Number of Indigenous jobs created or supported by IBA’s associates, subsidiaries and program customers(b)

1050 1050 1070 1090 1110

% of jobs created or supported by IBA’s associates, subsidiaries and program customers held by Indigenous people(b)

35% 37% 38% 39% 40%

Total value of Indigenous procurement (c)

$3.75m $3.75m $4m $4.25m $4.5m


1 Specific performance indicators and associated targets for business related outcomes in respect to BDAP (Business Development and Assistance Program) delivery are presented in IBA’s Corporate Plan and will be reported on in IBAs annual report.


159

Table 2.1.2: Performance criteria for Outcome 1 (continued)Performance criteria

2016–17Estimated

Actual

2017–18Budget




% of suppliers that are Indigenous 5% 10% 11% 12% 13%

Number of capability and development workshops conducted(d)

140 140 140 140 140

Total number of customers supported per regional area(e)

Remote 775 800 825 850

Regional 3650 3700 3750 3800

Urban/metro 1400 1450 1500 1550

Number of home ownership outcomes financed(f)

530 580 650 675 695

Value of finance for home ownership outcomes approved in FY

$160m $175m $200m $210m $220m

Percentage of housing customers who transition or are supported into mainstream lending(g)

4.5% 4.5% 4.5% 4.5% 4.5%

Percentage of housing loans to applicants who are first home buyers

90% 90% 90% 90% 90%

Portfolio return to Indigenous co-investors(h), (i)

CPI +4% CPI +4% CPI +4% CPI +4% CPI +4%

Portfolio return to IBA’s investment portfolio (budget year)(i), (j)

CPI +4% CPI +4% CPI +4% CPI +4% CPI +4%

Portfolio return IBA’s investment portfolio (rolling five years) (i),

(j)CPI +4% CPI +4% CPI +4% CPI +4% CPI +4%

Number of Indigenous co-investors and organisations who benefitted from the support of Investment’s services(k)

85 90 95 100 105



160

Table 2.1.2: Performance criteria for Outcome 1 (continued)Performance criteria

2016–17Estimated

Actual

2017–18Budget




Proportion of Indigenous investment in portfolio(l)

29% 30% 32.5% 35% 37.5%

Wealth created for Indigenous co-investors(m)

$6m $6m $6.5m $7m $7.5m

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.

(a) Is calculated as the sum of the rolling 12 month average of all Indigenous employees of IBA(b) Is calculated as the sum of (i) the rolling 12 month average of all Indigenous employees of IBA

subsidiaries and associates (to incorporate seasonality changes); and (ii) the number of Indigenous employees within IBA’s businesses finance customers (recorded annually).

(c) Total $ value of goods and services procured from Indigenous businesses by IBA, its subsidiaries and associates.

(d) Includes investment, business workshops and individual sessions and home ownership sessions.(e) Regional areas derived from ABS Remoteness Areas (coinciding with ARIA (Accessibility/Remoteness

Index of Australia), with Remote and Very Remote collated into “remote”, Outer and Inner Regional collated into “regional” and major cities classed as “urban/metro”. Customers includes Indigenous co-investors, investment partners and those who receive investment related support, customers receiving business workshops, support or business finance, and customers receiving finance or support relating to home ownership.

(f) Number of loans, guarantees and other finance products provided for new home acquisitions (including purchase of residential land), property settlement, refinance and essential home improvements.

(g) Transition to mainstream banking arises where the customer refinances home finance with a commercial lender. Support provided by IBA to access mainstream lending includes loans, guarantees, deposit assistance and other finance products that enable the customer to access finance with a commercial lender.

(h) Portfolio return to IBA’s Indigenous co-investors during the year is calculated as the after-tax comprehensive income (including valuation increments and decrements) generated by Indigenous co-investors’ and beneficiaries’ interests in the investment portfolio in the budget year, expressed as a percentage of the aggregate value of Indigenous co-investors’ and beneficiaries’ holdings.

(i) CPI refers to the average consumer price index for Australia during the measurement period. For example, if the realised CPI for 2017–18 is 1.7%, the expected return based on a target of CPI + 4% is 5.7% (1.7% + 4%).

(j) Portfolio return to IBA during the year is calculated as the after tax comprehensive income (which includes valuation increments and decrements) generated by IBA’s interests in the investment portfolio in the budget year, expressed as a percentage of the value of IBA’s holdings. Portfolio return to IBA over a rolling five-year period (inclusive of the designated year) is calculated as the average of the portfolio return to IBA in each of the past five budget years.

(k) Includes current Indigenous co-investors; Indigenous co-investors to whom investments were sold during the budget year; organisation participated in capability development activities such as investment strategies and investment information sessions; and Indigenous investors supported through investment’s services.

(l) Total equity held, in aggregate, by Indigenous co-investors and beneficiaries in the budget year, expressed as a percentage of the total investment portfolio value.

(m) Is comprised of Indigenous co-investors’ and beneficiaries’ after-tax comprehensive income (including valuation increments and decrements).


161




3.1.1 Differences between entity resourcing and financial statementsThere are no differences between IBA’s Entity Resourcing and Financial Statements.

3.1.2 Explanatory notes and analysis of budgeted financial statementsAn analysis of the primary causes of movements in the budgeted financial statements is provided below. The 2016-17 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 $29.4 million in 2016-17 and an estimated surplus of $28.6 million in 2017-18.


Budgeted net assets as at 30 June 2018 of $1,353.5 million represents an increase of $48.3 million over the net assets of $1,305.2 million as at 30 June 2017. The main drivers of the increase ($48.3 million) are:

continuing capital injections from the Government of $22.8 million

the estimated operating surplus of $28.6 million.

Budgeted Departmental Statement of Cash Flows

Net lending activity is expected to increase from $57.1 million in 2016-17 to $48.0 million in 2017-18. The decrement is the excess of loan repayments and discharges over new loan disbursements.


162

Departmental Statement of Changes in Equity

Total equity is expected to increase by $48.3 million to $1,353.5 million as at 30 June 2018, with the additional equity injection of $22.8 million from the Commonwealth and the Budget year surplus of $28.6 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.


163



2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000


$'000EXPENSES

Employee benefits 52,196 46,257 46,951 47,655 48,370Suppliers 86,951 79,835 80,934 82,170 83,402Grants 6,018 5,438 5,519 5,602 5,686Depreciation and amortisation 5,462 6,364 6,459 6,556 6,655Finance costs 915 660 670 680 690Write-down and impairment of assets 5,845 8,165 8,287 8,411 8,538Concessional Loan Discount 15,817 12,236 12,420 12,606 12,795Other expenses 969 469 476 483 490


Sale of goods and rendering of services 95,077 80,276 81,481 82,703 83,943Interest 50,031 49,317 50,056 50,808 51,569Dividends 3,046 4,688 4,758 4,829 4,902Rental income 20,552 13,221 13,420 13,621 13,825Grant Revenue 23,086 27,542 27,538 27,556 27,556Other 1,431 2,963 3,008 3,053 3,098


Other 670 106 107 109 110Total gains 670 106 107 109 110Total own-source income 193,893 178,113 180,368 182,679 185,003Net (cost of)/contribution by services 19,720 18,689 18,652 18,516 18,377Revenue from Government 10,602 10,133 9,762 9,587 9,712Surplus/(deficit) before income tax on continuing operations 30,322 28,822 28,414 28,103 28,089Income tax expense 915 183 186 188 191Surplus/(deficit) after income tax on continuing operations 29,407 28,639 28,228 27,915 27,898Surplus attributable to the non-controlling interests 3,455 3,340 3,400 3,500 3,600Surplus/(deficit) attributable to the Australian Government 25,952 25,299 24,828 24,415 24,298



164



2017-18Budget

$'000


$'000


$'000


$'000ASSETSFinancial assetsCash and cash equivalents 138,574 151,921 164,399 181,105 198,708Trade and other receivables 767,739 794,145 820,954 847,819 874,119Investments accounted for under the equity method 23,653 23,653 23,653 23,653 23,653Other investments 210,567 220,567 230,567 235,567 240,567Total financial assets 1,140,533 1,190,286 1,239,573 1,288,144 1,337,047Non-financial assetsLand and buildings 29,015 29,397 29,774 30,146 30,513Property, plant and equipment 21,396 19,170 16,858 14,959 12,471Investment property 151,070 151,070 151,070 151,070 151,070Intangibles 7,295 8,075 8,851 9,622 10,388Inventories 4,447 4,447 4,447 4,447 4,447Tax assets 822 822 822 822 822Other non-financial assets 2,019 2,019 2,019 2,019 2,019Total non-financial assets 216,064 215,000 213,841 213,085 211,730Total assets 1,356,597 1,405,286 1,453,414 1,501,229 1,548,777LIABILITIESPayablesSuppliers 11,720 11,820 11,920 12,020 12,020Tax liabilities 109 109 109 109 109Other payables 4,002 4,002 4,002 4,002 4,002Total payables 15,831 15,931 16,031 16,131 16,131Interest bearing liabilitiesLoans 22,985 22,985 22,985 22,985 22,985Total interest bearing liabilities 22,985 22,985 22,985 22,985 22,985ProvisionsEmployee provisions 9,407 9,607 9,707 9,807 9,807Other provisions 3,169 3,269 3,319 3,369 3,369Total provisions 12,576 12,876 13,026 13,176 13,176Total liabilities 51,392 51,792 52,042 52,292 52,292Net assets 1,305,205 1,353,494 1,401,372 1,448,937 1,496,485EQUITY*Parent entity interestContributed equity 995,289 1,014,799 1,037,649 1,060,499 1,083,349Reserves 8,942 8,942 8,942 8,942 8,942Retained surplus (accumulated deficit) 241,412 266,851 291,879 316,594 341,292Total parent entity interest 1,245,643 1,290,592 1,338,470 1,386,035 1,433,583Attributed to non-controlling interestContributed equity 53,340 56,680 56,680 56,680 56,680Reserves 1,440 1,440 1,440 1,440 1,440Retained surplus(accumulated deficit) 4,782 4,782 4,782 4,782 4,782Total non-controlling interest 59,562 62,902 62,902 62,902 62,902Total equity 1,305,205 1,353,494 1,401,372 1,448,937 1,496,485

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


165

Table 3.3: Departmental statement of changes in equity — summary of movement (Budget year 2017-18)

Retainedearnings

$'000

Asset revaluation

reserve$'000

Contributed equity/ capital$'000

Totalequity


Balance carried forward from previous period 246,194 10,382 1,048,629 1,305,205

Adjusted opening balance 246,194 10,382 1,048,629 1,305,205Comprehensive income

Surplus/(deficit) for the period 28,639 - - 28,639Total comprehensive income 28,639 - - 28,639

of which:Attributable to the Australian Government 25,299 - - 25,299

Attributable to non-controlling interest 3,340 - - 3,340Transactions with owners

Distributions to ownersReturns on capital:

Dividends (3,200) - - (3,200)Contributions by owners

Equity injection - Appropriation - - 22,850 22,850Sub-total transactions with owners (3,200) - 22,850 19,650Estimated closing balance as at 30 June 2018 271,633 10,382 1,071,479 1,353,494

Less: non-controlling interests 4,782 1,440 56,680 62,902Closing balance attributable to the Australian Government 266,851 8,942 1,014,799 1,290,592



166

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

2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000




Interest 50,031 49,317 50,056 50,809 51,570Dividends 3,046 4,688 4,758 4,829 4,902Grants 23,086 27,542 27,538 27,556 27,556Other 22,653 16,785 17,027 17,274 17,524


Employees 51,996 46,057 46,852 47,556 48,271Suppliers 86,627 78,226 78,705 78,582 77,983Grants 6,018 5,438 5,519 5,602 5,686Other 2,814 2,028 1,830 2,073 2,090

Total cash used 147,455 131,749 132,906 133,813 134,030Net cash from/(used by) operating activities 52,040 56,991 57,718 58,944 61,176

INVESTING ACTIVITIESCash received

Other- repayment of loans 116,368 117,088 117,932 120,273 119,273Total cash received 116,368 117,088 117,932 120,273 119,273Cash used


Investments 46,000 10,000 10,000 5,000 5,000Other - loans / advances 173,493 165,082 166,364 169,161 168,846

Total cash used 224,993 180,382 181,664 179,961 179,146Net cash from/(used by) investing activities (108,625) (63,294) (63,732) (59,688) (59,873)

FINANCING ACTIVITIESCash received

Contributed equity 36,550 22,850 22,850 22,850 22,850Total cash received 36,550 22,850 22,850 22,850 22,850Cash used

Dividends paid 3,200 3,200 3,200 3,200 3,200Total cash used 3,200 3,200 3,200 3,200 3,200Net cash from/(used by) financing activities 33,350 19,650 19,650 19,650 19,650

Net increase/(decrease) in cash held (23,235) 13,347 13,636 18,906 20,953Cash and cash equivalents at the beginning of the reporting period 161,809 138,574 150,763 162,199 177,755




167



2017-18Budget

$'000


$'000


$'000



Equity injections - Bill 2 36,550 22,850 22,850 22,850 22,850

Total new capital appropriations 36,550 22,850 22,850 22,850 22,850Provided for:

Loan expenditure 36,550 22,850 22,850 22,850 22,850Total items 36,550 22,850 22,850 22,850 22,850


Funded internally from departmental resources 5,500 5,300 5,300 5,800 5,300



168


Tabl

e 3.

6: S

tate

men

t of d

epar

tmen

tal a

sset

mov

emen

ts (B

udge

t yea

r 201

7-18

)B

uild

ings

$'00

0

Oth

er p

rope

rty,

plan

t and

eq

uipm

ent

$'00

0

Inve

stm

ent

prop

erty

$'00

0

Com

pute

r so

ftwar

e an

d in

tang

ible

s$'

000

Tota

l

$'00

0As

at 1

Jul

y 20

17G

ross

boo

k va

lue

32,7

7333

,334

151,

070

11,9

1622

9,09

3A

ccum

ulat

ed d

epre

ciat

ion/

amor

tisat

ion

and

impa

irmen

t(3

,758

)(1

1,93

8)-

(4,6

21)

(20,

317)

Ope

ning

net

boo

k ba

lanc

e29

,015

21,3

9615

1,07

07,

295

208,

776

Cap

ital a

sset

add

ition

sEs

timat

ed e

xpen

ditu

re o

n ne

w o

r re

plac

emen

t ass

ets

By

purc

hase

- ot

her

700

3,50

0-

1,10

05,

300

Tota

l add

ition

s70

03,

500

-1,

100

5,30

0O

ther

mov

emen

tsD

epre

ciat

ion/

amor

tisat

ion

expe

nse

(318

)(5

,726

)-

(320

)(6

,364

)To

tal o

ther

mov

emen

ts(3

18)

(5,7

26)

-(3

20)

(6,3

64)

As a

t 30

June

201

8G

ross

boo

k va

lue

33,4

7336

,834

151,

070

13,0

1623

4,39

3A

ccum

ulat

ed d

epre

ciat

ion/

am

ortis

atio

n an

d im

pairm

ent

(4,0

76)

(17,

664)

-(4

,941

)(2

6,68

1)C

losi

ng n

et b

ook

bala

nce

29,3

9719

,170

151,

070

8,07

520

7,71

2

Pre

pare

d on

Aus

tralia

n Ac

coun

ting

Sta

ndar

ds b

asis

.

169

INDIGENOUS LAND CORPORATION

ENTITY RESOURCES AND PLANNEDPERFORMANCE

171





173




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 ILC’s purpose is to assist Indigenous Australians to acquire land and to manage land, however the land was acquired. The ATSI Act requires that the ILC grant land acquired to Indigenous corporations within a reasonable time, and perform land management functions only on ILC and Indigenous-held land and with the agreement of the land holders.

The ILC’s main 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), which is required to be tabled in Parliament and published. The current NILS 2013–17 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 NILS is currently being redeveloped for tabling in late 2017 to set the ILC’s direction for coming years, in line with the current Board’s strategic intent.

The ILC’s land acquisition and land management functions operate through the Our Land Our Future program-delivery arrangements. Program guidelines are currently being redeveloped to help ensure that ILC funds provide maximum benefit for Indigenous Australians. These reforms will involve reducing the number of small land management grants, investing in fewer, larger and higher-impact projects, and launch of a new suite of investment products. In line with the Board’s strategic intent, the ILC is making some adjustments to its performance measures (Deliverables and Key Performance Indicators) for the 2017–18 year, as reflected in Table 2.1.2. The revised measures are designed to streamline and integrate reporting across the ILC Group.

ILC Budget Statements

174

The ATSI Act provides for the establishment of subsidiaries as vehicles to help the ILC perform its functions and achieve its objectives. Along with the ILC, three wholly-owned subsidiaries form the ILC Group:

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 Indigenous Pastoral Enterprises (NIPE) Pty Ltd, which manages agribusinesses on land held by the ILC or leased from Indigenous owners National Centre of Indigenous Excellence (NCIE) Ltd, which manages the ILC-developed social enterprise of the same name in Redfern, Sydney, NSW.

ILC-developed enterprises in agriculture and tourism are a vehicle for Indigenous economic development in regional and remote areas. These commercial businesses provide significant employment and training benefits and career-development opportunities for Indigenous people. The ILC and its subsidiaries work in partnership with the Australian Government and other funding providers to develop and deliver these opportunities.

The ILC delivers strongly on the Australian Government’s Closing the Gap priority of ‘getting adults into work’ through 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 2017-18 and future years continue to work closely with Indigenous Business Australia (IBA).


175


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



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

Table 1.1: ILC resource statement — Budget estimates for 2017-18 as at Budget May 2017

2016-17 Estimated

actual$'000

2017-18 Estimate

$'000Funds from Government

Annual appropriations - ordinary annual services (a) 9,156 8,928Outcome 1

Total annual appropriations 9,156 8,928Special accounts (b)

Aboriginal and Torres Strait Islander Land Account 51,422 52,296Total special accounts 51,422 52,296Total funds from Government 60,578 61,224Funds from other sources

Interest 18,500 18,500Other 4,700 4,700

Total funds from other sources 23,200 23,200Total net resourcing for Indigenous Land Corporation 83,778 84,424


Prepared on a resourcing (that is, appropriations available) basis.Please note: All figures shown above are GST exclusive – these may not match figures in the cash flow statement. (a) Appropriation Bill (No.1) 2017-18.(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.


176

1.3 BUDGET MEASURES

The ILC has no budget measures in the 2017-18 Budget.


177




Note:


The most recent corporate plan for ILC can be found at: http://www.ilc.gov.au/IndigenousLandCorporation/media/Items/Content/Publications/Corporate%20Documents/Indigenous-Land-Corporation-Corporate-Plan-2016-17.pdf

The most recent annual performance statement can be found at: http://www.ilc.gov.au/Home/About-Us/Publications/Latest-Annual-Report


178


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.


2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000


$'000


Payment from related entities 18,500 18,500 18,500 18,500 12,500Special accounts

Aboriginal and Torres Strait Islander Land Account 26,574 44,490 33,814 37,926 46,598



Program 1.1: Assistance in the acquisition and management of an Indigenous land base

Outcome 1: Enhanced socioeconomic development, maintenance of cultural identify and protection of the environment by Indigenous Australians through land acquisition and management.



179


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 developmentassisting Indigenous land holders (through grants, guarantees, loans or provision of services) to manage their land sustainably including the development of viable land-based enterprisesoperating 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 2016–17Estimated

Actual

2017–18Budget



2020–21ForwardEstimate

Properties acquired 2-3 3 3 3 3

Properties granted 6-8 7 6 6 8

Number of active land acquisition and land management projects

100 100 100 100 100



180

Table 2.1.2: Performance criteria for Outcome 1 (continued)Key Performance Indicators

2016–17Estimated

Actual

2017–18Budget




Indigenous employment

a) Number of Indigenous staff directly employed across the ILC Group

b) Number of Indigenous employment outcomes enabled by land acquisition and landmanagement projects active in financial year

500

500

500

500

500

500

500

500

500

500

Indigenous training

a) Number of Indigenous trainees hosted/employed across the ILC Group

b) Number of Indigenous training completions enabled by land acquisition and land management projects active in financial year

200

1000

200

1000

200

1000

200

1000

200

1000

Indigenous business developmentNumber of Indigenous enterprises assisted by ILC Groupprojects

50 60 60 60 60



181

Table 2.1.2: Performance criteria for Outcome 1 (continued)Key Performance Indicators

2016–17Estimated

Actual

2017–18Budget




Protection of Indigenous culture, heritage and the environmentProportion of active ILC Group projects (Deliverable 3) that maintained or protected Indigenous culture, heritage and/or the environment

50% 50% 50% 50% 50%

CollaborationProportion of active ILC Group projects (Deliverable 3) that involved contributions from third parties (beyond immediate beneficiary group)

50% 60% 60% 60% 60%

Purposes To assist Indigenous people to acquire and manage land to achieve economic, environmental, social or cultural benefits.


182




3.1.1 Differences between entity resourcing and 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.

3.1.2 Explanatory notes and analysis of budgeted financial statements

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 2017–18 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 3.1).

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 3.1), 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 3.1).


183



2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000


$'000EXPENSES

Employee benefits 14,968 15,241 16,777 17,400 18,110Suppliers 37,842 55,316 43,197 47,416 50,282Depreciation and amortisation 1,500 1,500 1,500 1,500 1,500Finance costs 4,620 4,561 4,289 3,427 2,437


Interest 18,500 18,500 18,500 18,500 12,500Income from Special Account 51,422 52,296 53,290 54,462 55,661Other 4,700 4,700 4,700 4,700 4,700

Total own-source revenue 74,622 75,496 76,490 77,662 72,861Net (cost of)/contribution by services 15,692 (1,122) 10,727 7,919 532

Revenue from Government 9,156 8,928 8,749 8,617 8,531Surplus/(deficit) attributable to the Australian Government 24,848 7,806 19,476 16,536 9,063Total comprehensive income/(loss) 24,848 7,806 19,476 16,536 9,063Total comprehensive income/(loss) attributable to the Australian Government 24,848 7,806 19,476 16,536 9,063Total comprehensive income/(loss) - as per the Statement of comprehensive income 24,848 7,806 19,476 16,536 9,063



184



2017-18Budget

$'000


$'000


$'000



Cash and cash equivalents 30,445 20,512 21,777 21,440 20,440Trade and other receivables 310,122 328,072 338,824 345,410 344,196Other investments 4,000 4,000 4,000 4,000 4,000Other financial assets 11,042 8,079 5,233 2,928 1,269


Property, plant and equipment 78,430 76,930 76,930 76,930 76,930Intangibles 153 153 153 153 153Biological assets 49,129 49,129 49,129 49,129 49,129Inventories 125,450 115,450 115,450 115,450 115,450Other non-financial assets 32,155 32,155 32,155 32,155 32,155

Total non-financial assets 285,317 273,817 273,817 273,817 273,817Total assets 640,926 634,480 643,651 647,595 643,722LIABILITIESPayables

Suppliers 8,263 8,263 8,263 8,263 8,263Total payables 8,263 8,263 8,263 8,263 8,263 Interest bearing liabilities

Loans 60,794 56,542 46,237 33,645 20,709Total interest bearing liabilities 60,794 56,542 46,237 33,645 20,709Provisions

Employee provisions 3,673 3,673 3,673 3,673 3,673Other provisions 151,095 141,095 141,095 141,095 141,095

Total provisions 154,768 144,768 144,768 144,768 144,768Liabilities included in disposal groups held for sale

Total liabilities 223,825 209,573 199,268 186,676 173,740Net assets 417,101 424,907 444,383 460,919 469,982EQUITY*

Reserves 4,092 4,092 4,092 4,092 4,092Retained surplus (accumulated deficit) 413,009 420,815 440,291 456,827 465,890



185


Retainedearnings

$'000

Assetrevaluation

reserve$'000

Totalequity


Balance carried forward from previous period 413,009 4,092 417,101

Adjusted opening balance 413,009 4,092 417,101Comprehensive income

Surplus/(deficit) for the period 7,806 - 7,806Total comprehensive income 7,806 - 7,806

of which:Attributable to the Australian Government 7,806 - 7,806

Estimated closing balance as at 30 June 2018 420,815 4,092 424,907Closing balance attributable to the Australian Government 420,815 4,092 424,907



186


2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000



Appropriations 9,156 8,928 8,749 8,617 8,531Receipts from Government 51,422 52,296 53,290 54,462 55,661Other 4,700 4,700 4,700 4,700 4,700


Employees 14,968 15,241 16,777 17,400 18,110Suppliers 47,842 65,316 43,197 47,416 50,282Borrowing costs 1,644 1,598 1,442 1,121 778

Total cash used 64,454 82,155 61,416 65,937 69,170Net cash from/(used by) operating activities 824 (16,231) 5,323 1,842 (278)INVESTING ACTIVITIESCash used

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

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

Receipts of borrowings 7,450 10,550 7,748 11,914 13,714Total cash received 7,450 10,550 7,748 11,914 13,714Cash used

Repayments of borrowings 4,206 4,252 10,305 12,592 12,936Dividends paidOther

Total cash used 4,206 4,252 10,305 12,592 12,936Net cash from/(used by) financing activities 3,244 6,298 (2,557) (678) 778Net increase/(decrease) in cash held 4,068 (9,933) 1,266 (336) (1,000)

Cash and cash equivalents at the beginning of the reporting period 26,377 30,445 20,512 21,778 21,442




187



2017-18Budget

$'000


$'000


$'000


$'000


Funded internally from departmental resources (a) - - 1,500 1,500 1,500

TOTAL - - 1,500 1,500 1,500RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE

Total purchases - - 1,500 1,500 1,500Total cash used to acquire assets - - 1,500 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; and- proceeds from the sale of assets.



188

Table 3.6: Statement of departmental asset movements (Budget year 2017-18)Other property,

plant andequipment

$'000


intangibles$'000

Biological Assets

$'000

Total

$'000As at 1 July 2017

Gross book value 84,101 990 49,129 134,220Accumulated depreciation/amortisation and impairment (5,671) (837) - (6,508)

Opening net book balance 78,430 153 49,129 127,712Other movementsDepreciation/amortisation expense (1,500) - - (1,500)Total other movements (1,500) - - (1,500)

As at 30 June 2018Gross book value 84,101 990 49,129 134,220Accumulated depreciation/ amortisation and impairment (7,171) (837) - (8,008)

Closing net book balance 76,930 153 49,129 126,212 Prepared on Australian Accounting Standards basis.

189

INFRASTRUCTURE AND PROJECT FINANCING AGENCY


191




SECTION 3: BUDGETED FINANCIAL STATEMENTS...........................................2002 3.1 Budgeted financial statements...................................................................... 202 3.2 Budgeted financial statements tables........................................................... 203

193




The Infrastructure and Project Financing Agency (IPFA) is an Executive Agency established on 1 July 2017 to leverage additional private sector investment in infrastructure and secure better returns from the Commonwealth’s investment.

It will do this by assisting the Government to identify, assess, and broker financing opportunities for infrastructure projects, including through engagement with Commonwealth entities, State and Territory governments, and the private sector.

Specifically, the IPFA will:

assist relevant Portfolio Ministers and agencies in the early identification of transformative economic infrastructure projects where innovative financing could form part of any future Commonwealth investment

assist relevant Portfolio Ministers and agencies to develop and assess financing options, including through early-stage engagement in the development of business cases with project proponents

assist relevant Portfolio Ministers and agencies to broker financing arrangements and in the ongoing commercial management of those investments, as appropriate

provide stand-alone advice to the Cabinet on suitable financing options and associated benefits and risks, for all projects seeking Commonwealth funding or financing for economic infrastructure projects

provide stand-alone reports to the Cabinet on all innovative financing opportunities for transformative economic infrastructure, including those that could be further considered by relevant portfolio ministers and Infrastructure Australia.

The key priorities for 2017-18 are:

to establish the IPFA as an Executive Agency, including putting into place all required governance and organisational arrangements

to develop the capability and procedures to perform the key functions of the IPFA, and to provide quality advice to the Government on the assessment and brokering of private financing opportunities for significant infrastructure projects

IPFA Budget Statements

194

to establish the IPFA’s reputation as a centre of excellence within government and to commence engagement with key stakeholders.


195


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




Table 1.1: IPFA resource statement — Budget estimates for 2017-18 as at Budget May 2017

2016-17 Estimated

actual $'000

2017-18 Estimate

$'000

DepartmentalAnnual appropriations - ordinary annual services

Departmental appropriation (a) - 4,212Annual appropriations - other services - non-operating

Equity injection (b) - 105Total departmental annual appropriations - 4,317Total resourcing for entity IPFA - 4,317

2016-17 2017-18Average staffing level (number) - 14

Prepared on a resourcing (that is, appropriations available) basis.Please note: All figures shown above are GST exclusive – these may not match figures in the cash flow statement. (a) Appropriation Bill (No.1) 2017-18.(b) Appropriation Bill (No.2) 2017-18.


196

1.3 BUDGET MEASURES

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

Table 1.2: IPFA 2017-18 Budget measures


Program2016-17

$'0002017-18

$'0002018-19

$'0002019-20

$'0002020-21

$'000Expense measures Infrastructure and Project Financing Agency - establishment 1.1


Total - 4,212 4,198 4,202 4,234Total expense measures

Departmental - 4,212 4,198 4,202 4,234

Total - 4,212 4,198 4,202 4,234Capital measuresInfrastructure and Project Financing Agency - establishment 1.1

Departmental capital - 105 - - -

Total - 105 - - - Total capital measures

Departmental - 105 - - -

Total - 105 - - - 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.


197




Note:


As the IPFA will be established as at 1 July 2017, the corporate plan and annual performance statement are currently not available.


198


Outcome 1: To leverage additional private sector investment in infrastructure and secure better returns from the Commonwealth’s investment by assisting the Government to identify, assess, and broker financing opportunities for infrastructure and projects, including through engagement with Commonwealth entities, State and Territory governments, and the private sector.


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


2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000


$'000

Departmental expensesDepartmental appropriation (a) - 4,212 4,198 4,202 4,234Expenses not requiring appropriation in the Budget year

- - - - -

Departmental total - 4,212 4,198 4,202 4,234Total expenses for Outcome 1 - 4,212 4,198 4,202 4,234

2016-17 2017-18Average staffing level (number) - 14

Outcome 1: To leverage more private sector investment in infrastructure and get better returns from the Commonwealth's investment by identifying, assessing, and assisting in brokering financing opportunities for infrastructure projects, including through engagement with Commonwealth entities, State and Territory governments, and the private sector.

Program 1.1: IPFA - Departmental - Outcome 1

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


199

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 2017-18 Budget measures have created new programs or materially changed existing programs.


Outcome 1 – To leverage additional private sector investment in infrastructure and secure better returns from the Commonwealth’s investment by assisting the Government to identify, assess, and broker financing opportunities for infrastructure and projects, including through engagement with Commonwealth entities, State and Territory governments, and the private sector.Program 1.1 –The IPFA will contribute to the Government’s objective of driving economic growth and productivity, and enhancing the liveability of our cities and regions. It will do this by exploring and advising on innovative financing opportunities for transformative infrastructure projects, getting better returns from the Commonwealth’s investment in infrastructure and leveraging private sector investment.

Delivery This program is delivered through the provision of advice and assistance to the Prime Minister, the Cabinet, Portfolio Ministers, and Assistant Ministers, and close engagement with key stakeholders, including Portfolio Agencies, the private sector and the state and territories.



2017-18 Development of capability and procedures to perform the key functions of the IPFA, particularly the provision of quality advice to the Government on the assessment and brokering of private financing opportunities for significant infrastructure projects.

Recruitment of suitably skilled staff and contractors, including a Chief Executive Officer

Development of capabilities and frameworks with which to perform the assessment, advice and brokering of private financing opportunities for significant infrastructure projects

Establishment of required governance and organisational arrangements, including relevant policies and procedures


200

Table 2.1.2: Performance criteria for Outcome 1 (continued)




2017-18 Development of capability and procedures to perform the key functions of the IPFA, particularly the provision of quality advice to the Government on the assessment and brokering of private financing opportunities for significant infrastructure projects.

Commencement of engagement with key stakeholders, including Commonwealth agencies, states and territories and the private sector

Provision of high quality and timely advice to Government agencies, the Prime Minister and Cabinet on preferred financing approaches and priority projects for engagement

Analysis, development and/or review of tailored financing (andalternative funding) options for specific infrastructure projects

Provision of first stand-alone report on innovative financing opportunities for transformative economic infrastructure to the Cabinet.


201

Table 2.1.2: Performance criteria for Outcome 1 (continued)

(a) New or modified performance criteria that reflect new or materially changed programs are shown in italics.

(b) Refers to purposes that will be reflected in the IPFA’s first corporate plan.


2018-19 and beyond Provision of quality advice to the Government on the assessment and brokering of private financing opportunities for significant infrastructure projects.

Provision of high quality and timely advice to Government agencies, the Prime Minister and Cabinet on preferred financing approaches for transformative infrastructure projects

Analysis, development and/or review of tailored financing (and alternative funding) arrangements for specific infrastructure projects

Assistance to the Government to broker financing arrangements for specific investments

Provision of standalone reportson innovative financing opportunities for transformative economic infrastructure, to Cabinet

Continued engagement with key stakeholders, includingCommonwealth agencies, states and territories and the private sector.

Purposes (b) Additional private sector investmentImproved advice to government on financing opportunitiesBetter returns on commonwealth investment


202




3.1.1 Differences between entity resourcing and financial statementsThe entity resource statement (Table 1.1) provides a consolidated view of all the resources available to the IPFA in 2017-18 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) shows only the departmental operating appropriation provided in each year. There are no differences between entity resourcing and the financial statements.


The IPFA is budgeting for a break-even operating result, adjusted for depreciation expense.

Balance Sheet

The movement in the net asset position reflects the start-up of a new agency and is principally the result of the procurement of computer software and other infrastructure, plant and equipment assets in 2017-18 by the IPFA.

The IPFA’s primary liability is accrued employee entitlements.


203



2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000


$'000EXPENSES

Employee benefits - 2,689 2,674 2,690 2,702Suppliers - 1,523 1,524 1,512 1,532Depreciation and amortisation - 27 27 26 25

Total expenses - 4,239 4,225 4,228 4,259Net (cost of)/contribution by services - (4,239) (4,225) (4,228) (4,259)

Revenue from Government 4,212 4,198 4,202 4,234Surplus/(deficit) attributable to the Australian Government - (27) (27) (26) (25)Total comprehensive income/(loss) - (27) (27) (26) (25)Total comprehensive income/(loss) attributable to the Australian Government

- (27) (27) (26) (25) Prepared on Australian Accounting Standards basis.


204



2017-18Budget

$'000


$'000


$'000



Trade and other receivables - 262 262 262 262Total financial assets - 262 262 262 262 Non-financial assets

Property, plant and equipment - 7 4 2 -Investment property - 71 47 23 -

Total non-financial assets - 78 51 25 - Total assets - 340 313 287 262 LIABILITIESProvisions

Employee provisions - 262 262 262 262Total provisions - 262 262 262 262 Total liabilities - 262 262 262 262 Net assets - 78 51 25 - EQUITY*Parent entity interest

Contributed equity - 105 105 105 105Retained surplus (accumulated deficit) - (27) (54) (80) (105)

Total parent entity interest - 78 51 25 -Total equity - 78 51 25 -



205


Retainedearnings

$'000


Totalequity


Balance carried forward from previous period - - -

Adjusted opening balance - - -Comprehensive income

Surplus/(deficit) for the period (27) (27)Total comprehensive income (27) - (27)Transactions with ownersContributions by owners

Equity injection - 105 105Sub-total transactions with owners - 105 105Estimated closing balance as at 30 June 2018 (27) 105 78Closing balance attributable to the Australian Government (27) 105 78



206


2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000



Appropriations - 3,950 4,198 4,202 4,234Total cash received - 3,950 4,198 4,202 4,234Cash used

Employees - 2,402 2,649 2,665 2,677Suppliers - 1,548 1,549 1,537 1,557

Total cash used - 3,950 4,198 4,202 4,234Net cash from/(used by) operating activities - - - - -INVESTING ACTIVITIESCash used

Purchase of property, plant and equipment and intangibles - 105 - - -

Total cash used - 105 - - -Net cash from/(used by) investing activities - (105) - - -FINANCING ACTIVITIESCash received

Contributed equity 105Total cash received - 105 - - -Net cash from/(used by) financing activities - 105 - - -Net increase/(decrease) in cash held - - - - -Cash and cash equivalents at the end of the reporting period - - - - -



207



2017-18Budget

$'000


$'000


$'000



Equity injections - Bill 2 - 105 - - -Total new capital appropriations - 105 - - -Provided for:

Purchase of non-financial assets - 105 - - -Total items - 105 - - -PURCHASE OF NON-FINANCIAL ASSETS

Funded by capital appropriations (a) - 105 - - -TOTAL - 105 - - -RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE

Total purchases - 105 - - -Total cash used to acquire assets - 105 - - -

(a) Includes both current Bill 2 and prior Act 2/4/6 appropriations and special capital appropriations.Prepared on Australian Accounting Standards basis.


208

Table 3.6: Statement of departmental asset movements (Budget year 2017-18)Other property,

plant andequipment

$'000


intangibles$'000

Total

$'000As at 1 July 2017

Gross book value - - -Accumulated depreciation/amortisation and impairment - - -

Opening net book balance - - -Capital asset additions

Estimated expenditure on new or replacement assets

By purchase - appropriation equity (a) 10 95 105Total additions 10 95 105Other movementsDepreciation/amortisation expense (3) (24) (27)Total other movements (3) (24) (27)

As at 30 June 2018Gross book value 10 95 105Accumulated depreciation/ amortisation and impairment (3) (24) (27)

Closing net book balance 7 71 78 (a) ‘Appropriation equity’ refers to equity injections appropriations provided through Appropriation Bill (No. 2)

2017-18, including CDABs.Prepared on Australian Accounting Standards basis.

209

OFFICE OF NATIONAL ASSESSMENTS


211





213




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 three 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;

collection and analysis of open source information through the Open Source Centre (OSC).

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 can form a base for policy decisions. Our effectiveness also depends on our responsiveness to the Prime Minister and key ministers.

ONA Budget Statements

214


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




Table 1.1: ONA resource statement — Budget estimates for 2017-18 as at Budget May 2017

2016-17 Estimated

actual $'000

2017-18 Estimate

$'000


Prior year appropriations available 23,017 20,435Departmental appropriation (b) 31,466 31,965Departmental capital budget (c) 3,884 3,963

Total departmental annual appropriations 58,367 56,363Total departmental resourcing 58,367 56,363Total resourcing for ONA 58,367 56,363


Please note: All figures shown above are GST exclusive – these may not match figures in the cash flow statement. (a) Appropriation Bill (No.1) 2017-18.(b) Excludes departmental capital budget (DCB).(c) Departmental capital budgets are not separately identified in Appropriation Bill (No.1) and form part of



215

1.3 BUDGET MEASURES

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



Program2016-17

$'0002017-18

$'0002018-19

$'0002019-20

$'0002020-21

$'000Expense measuresOverseas Allowances for Australian Government Employees - efficiencies (a)

1.1 1.2

Departmental expenses - - 47 48 49

Total - - 47 48 49 Total expense measures

Departmental - - 47 48 49

Total - - 47 48 49 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.(a) The lead entity for measure titled ‘Overseas Allowances for Australian Government Employees -

efficiencies’ 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.


216





217


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.


2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000


$'000

Departmental expensesDepartmental appropriation 22,026 22,375 23,343 24,407 25,278Expenses not requiring appropriation in the Budget year (a)

3,303 3,425 3,251 3,151 3,023



1,416 1,468 1,394 1,350 1,295



4,719 4,893 4,645 4,501 4,318



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


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

amortisation expenses, make good expenses, audit fees and other gains.Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of the budget year as government priorities change.


218




3.1.1 Differences between entity resourcing and financial statementsThe Entity Resource Statement (Table 1.1) provides a consolidated view of all the resources available to the entity in 2017-18. 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 2017-18.

3.1.2 Explanatory notes and analysis of budgeted financial statementsONA 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 2017-18 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 change in supplier payables reflects the rent payable liability changing 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.


219

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.


220



2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000


$'000EXPENSES

Employee benefits 20,128 21,041 21,806 22,883 23,727Suppliers 11,254 10,954 11,571 12,014 12,415Depreciation and amortisation 4,719 4,893 4,645 4,501 4,318Other expenses 124 - - - -

Total expenses 36,225 36,888 38,022 39,398 40,460LESS: OWN-SOURCE INCOMEOwn-source revenueGains

Other 40 30 30 30 30Total gains 40 30 30 30 30Total own-source income 40 30 30 30 30Net cost of services (36,185) (36,858) (37,992) (39,368) (40,430)

Revenue from Government 31,466 31,965 33,347 34,867 36,112Deficit attributable to the Australian Government (4,719) (4,893) (4,645) (4,501) (4,318)Total comprehensive loss attributable to the Australian Government (4,719) (4,893) (4,645) (4,501) (4,318)


$'0002017-18

$'0002018-19

$'0002019-20

$'0002020-21


less depreciation/amortisation expenses previously funded through revenue appropriations (a)

4,719 4,893 4,645 4,501 4,318Total comprehensive loss - as per the statement of comprehensive income (4,719) (4,893) (4,645) (4,501) (4,318)

(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.



221



2017-18Budget

$'000


$'000


$'000





Land and buildings 16,766 16,141 15,739 16,694 16,051Property, plant and equipment 3,286 3,377 3,775 3,790 4,000Intangibles 6,103 6,763 5,856 5,093 4,603Other non-financial assets 1,435 1,435 1,435 1,435 1,435


Suppliers 3,731 3,972 4,099 4,106 3,990Other payables 759 759 759 759 759


Employee provisions 7,079 7,535 7,686 7,840 7,997Total provisions 7,079 7,535 7,686 7,840 7,997 Total liabilities 11,569 12,266 12,544 12,705 12,746 Net assets 37,314 36,384 35,763 35,351 35,151 EQUITY*




222


Retainedearnings

$'000

Assetrevaluation

reserve$'000


Totalequity


Balance carried forward from previous period (10,471) 1,056 46,729 37,314


Surplus/(deficit) for the period (4,893) - - (4,893)Total comprehensive income (4,893) - - (4,893)

of which:Attributable to the Australian Government (4,893) - - (4,893)

Transactions with ownersDepartmental capital budget (DCB) - - 3,963 3,963

Sub-total transactions with owners - - 3,963 3,963Estimated closing balance as at 30 June 2018 (15,364) 1,056 50,692 36,384Closing balance attributable to the Australian Government (15,364) 1,056 50,692 36,384



223


2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000



Appropriations 29,832 31,268 33,069 34,706 36,071Net GST received 905 875 937 981 1,022Other 10 - - - -



Total cash used 31,033 32,143 34,006 35,687 37,093Net cash from/(used by) operating activities (286) - - - -INVESTING ACTIVITIESCash used


Total cash used 8,100 5,019 3,734 4,708 3,395Net cash from/(used by) investing activities (8,100) (5,019) (3,734) (4,708) (3,395)FINANCING ACTIVITIESCash received

Contributed equity 8,100 5,019 3,734 4,708 3,395Total cash received 8,100 5,019 3,734 4,708 3,395Net cash from/(used by) financing activities 8,100 5,019 3,734 4,708 3,395Net increase/(decrease) in cash held (286) - - - -





224



2017-18Budget

$'000


$'000


$'000



Capital budget - Bill 1 (DCB) 3,884 3,963 4,024 4,089 4,118Total new capital appropriations 3,884 3,963 4,024 4,089 4,118Provided for:

Purchase of non-financial assets 3,884 3,963 4,024 4,089 4,118Total items 3,884 3,963 4,024 4,089 4,118PURCHASE OF NON-FINANCIAL ASSETS

Funded by capital appropriation - DCB (a) 8,100 5,019 3,734 4,708 3,395

TOTAL 8,100 5,019 3,734 4,708 3,395RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE

Total purchases 8,100 5,019 3,734 4,708 3,395Total cash used to acquire assets 8,100 5,019 3,734 4,708 3,395 (a) Does not include annual finance lease costs. Includes purchases from current and previous years’

Departmental capital budgets (DCBs).Prepared on Australian Accounting Standards basis.


225

Table 3.6: Statement of departmental asset movements (Budget year 2017-18)Buildings

$'000


equipment$'000


intangibles$'000

Total

$'000As at 1 July 2017

Gross book value 21,853 6,563 12,178 40,594Accumulated depreciation/amortisation and impairment (5,087) (3,277) (6,075) (14,439)

Opening net book balance 16,766 3,286 6,103 26,155Capital asset additions

Estimated expenditure on new or replacement assetsBy purchase - appropriation ordinary annual services (a) 1,169 935 2,915 5,019Total additions 1,169 935 2,915 5,019Other movementsDepreciation/amortisation expense (1,794) (844) (2,255) (4,893)Total other movements (1,794) (844) (2,255) (4,893)

As at 30 June 2018Gross book value 23,022 7,498 15,093 45,613Accumulated depreciation/ amortisation and impairment (6,881) (4,121) (8,330) (19,332)

Closing net book balance 16,141 3,377 6,763 26,281(a) ‘Appropriation ordinary annual services’ refers to funding provided through Appropriation Bill (No. 1)


227

OFFICE OF THE COMMONWEALTH OMBUDSMAN


229





231




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 Government announced in September 2016, that the role of the Defence Force Ombudsman will expand to provide an independent Defence abuse reporting function. The OCO’s expanded role commenced on 1 December 2016.

The Government decided in March 2017, that the OCO will receive additional funding to investigate complaints of the National Disability Insurance Agency (NDIA) during the national roll out of the National Disability Insurance Scheme (NDIS) as part of the Government’s measure National Disability Insurance Scheme Quality and Safeguards Commission - establishment.

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.

OCO Budget Statements

232


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.



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.


233

Table 1.1: OCO resource statement — Budget estimates for 2017-18 as at Budget May 2017

2016-17 Estimated

actual $'000

2017-18 Estimate


Prior year appropriations available 9,137 8,998Departmental appropriation (b) 20,957 23,460s 74 retained revenue receipts (c) 13,066 15,581Departmental capital budget (d) 828 821

Total departmental annual appropriations 43,988 48,860Total departmental resourcing 43,988 48,860Total resourcing for OCO 43,988 48,860


Prepared on a resourcing (that is, appropriations available) basis.Please note: All figures shown above are GST exclusive – these may not match figures in the cash flow statement. (a) Appropriation Bill (No.1) 2017-18.(b) Excludes departmental capital budget (DCB).(c) Estimated retained revenue receipts under section 74 of the PGPA Act.(d) Departmental capital budgets are not separately identified in Appropriation Bill (No.1) and form part of



234

1.3 BUDGET MEASURES

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



Program2016-17

$'0002017-18

$'0002018-19

$'0002019-20

$'0002020-21

$'000Revenue measures National Disability Insurance Scheme Quality and Safeguards Commission - establishment (a) 1.1 - 1,247 1,755 1,784 1,641 Total revenue measures - 1,247 1,755 1,784 1,641

Departmental - 1,247 1,755 1,784 1,641 Total - 1,247 1,755 1,784 1,641

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.(a) The lead entity for measure titled NDIS Quality and Safeguarding Framework is Department of Social

Services. The full measure description and package details appear in Budget Paper No. 2 under the Social Services portfolio.


235




Note:


The most recent corporate plan for OCO can be found at: http://www.ombudsman.gov.au/__data/assets/pdf_file/0020/24518/Commonwealth-Ombudsman-Corporate-Plan-2016-17-30-August-2016.pdf

The most recent annual performance statement can be found at: http://www.ombudsman.gov.au/publications/annual/all-commonwealth-ombudsman-reports/commonwealth-ombudsman-annual-report-2015-16


236


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.


2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000


$'000



1,148 1,130 1,003 1,023 1,053



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

(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,

amortisation expenses, make good 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.


237


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 OmbudsmanThe 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, andto influence enduring systemic improvement in public administration in Australia and the region

Delivery Identifying and reporting on systemic issues in public administration, including making recommendationsInfluencing Australian Government entities, prescribed private sector organisations and our regional partners to improve complaint handling systems and administration of programs through stakeholder engagement and guidanceAssisting regional partners consistent with the Australian Aid prioritiesEnsuring OCO’s complaint handling service is delivered within its service standardsEnsuring 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 metInspecting and reporting on entity and private sector organisation compliance with accountability principles and policy requirementsEnsuring office statutory requirements in relation to Commonwealth public interest disclosures are metProviding consumers with accurate and up to date private health insurance information.



2016-17 Percentage of recommendations or suggestions made during an inspection for which progress has been followed up within 12 months of it being made

Target of 100% of recommendations or suggestions followed up within 12 months

Percentage of recommendations made in public reports accepted by entities

Target of 75% of recommendations made in public reports accepted by entities



238


2016-17 (continued) Percentage of reports on long term detention cases sent to the Minister within 12 months of the review being received from the Department

Target of 80% of reports on long term detention cases sent to the Minister within 12 months of review being received from the Department

Percentage of post-visit reports issued to the Department within 90 business days of the inspection being completed

Target of 80% of post-visit reports are issued to the Department within 90 business days of inspection completion

Percentage of stakeholders which participated in engagement activities who provided an average of ‘satisfied’ or ‘very satisfied’ rating in feedback forms/surveys

Target of 90% of stakeholders participating in engagement activities provide an average of ‘satisfied’ or ‘very satisfied’ in feedback forms/surveys

Percentage of outputs delivered under the Australian Aid arrangements

Target of 80% of outputs delivered under Australian Aid arrangements.

Percentage of reporting requirements met under the Australian Aid arrangements

Target of 100% of reporting requirements met under Australian Aid arrangements

Percentage of approaches finalised within the office’s service standards

Target of 85% of approaches are finalised within the office’s service standards

Percentage of office statutory requirements in relation to law enforcement met

Target of 100% of office statutory requirements in relation to law enforcement are met

Percentage of office statutory requirements in relation to Commonwealth public interest disclosures met

Target of 100% of office statutory requirements in relation to Commonwealth public interest disclosure are met

Percentage of public users who completed the survey for Privatehealth.gov.au who provided a ‘satisfied’ or ‘very satisfied’ response regarding the quality of information provided by the website.

Target of 80% of public users who completed the Privatehealth.gov.au survey provide a ‘satisfied’ or ‘very satisfied’ response regarding quality of information.

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


Purposes Provide assurance that the organisations we oversight act with integrity and treat people fairlyInfluence systemic improvement in public administration in Australia and the region.


239




3.1.1 Differences between entity resourcing and financial statementsThe Entity Resource Statement (Table 1.1) provides a consolidated view of the resources available to the OCO in 2017-18. This includes equity injections (provided as a Departmental Capital Budget) and appropriations receivable. The Comprehensive Income Statement (Table 3.1) shows only the operating appropriation provided in 2017-18.



OCO is budgeting for a break-even operating result, adjusted for depreciation and amortisation expense in 2017-18 and the forward estimate years. There will be an initial increase in employee costs and supplier costs in 2017-18 in line with the expanded Defence Force Ombudsman and the introduction of Vocational Education and Training and expanded National Disability Insurance Agency oversight functions.

Supplier and employee expenses will continue to match the level of appropriation.


The OCO’s budgeted net asset position at 30 June 2018 is estimated to be $2.7 million.


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.


The Departmental Capital Budget Statement (Table 3.5) shows the expected capital works program for the current and forward years. Total capital expenditure in 2017-18 is estimated to be $0.8 million. In addition, the OCO forecasts spending a further $2.5 million on capital works over the forward estimates.


240



2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000


$'000EXPENSES

Employee benefits 25,337 29,076 18,630 18,381 18,152Suppliers 8,739 10,018 6,888 6,666 6,557Depreciation and amortisation 1,095 1,077 950 970 1,000



13,066 15,581 1,665 1,422 1,152


Other 53 53 53 53 53Total gains 53 53 53 53 53Total own-source income 13,119 15,634 1,718 1,475 1,205Net (cost of)/contribution by services (22,052) (24,537) (24,750) (24,542) (24,504)

Revenue from Government 20,957 23,460 23,800 23,572 23,504Surplus/(deficit) attributable to the Australian Government (1,095) (1,077) (950) (970) (1,000)Total comprehensive income/(loss) (1,095) (1,077) (950) (970) (1,000)Total comprehensive income/(loss) attributable to the Australian Government (1,095) (1,077) (950) (970) (1,000)


$'0002017-18

$'0002018-19

$'0002019-20

$'0002020-21


less depreciation/amortisation expenses previously funded through revenue appropriations (a) 1,095 1,077 950 970 1,000

Total comprehensive income/(loss) - as per the statement of comprehensive income (1,095) (1,077) (950) (970) (1,000)




241



2017-18Budget

$'000


$'000


$'000



Cash and cash equivalents 154 154 154 154 154Trade and other receivables 9,031 8,892 8,544 8,329 8,329Other financial assets 633 632 630 629 629


Property, plant and equipment 2,286 2,229 2,213 2,221 2,119Intangibles 638 439 322 161 83Other non-financial assets 244 209 209 209 209


Suppliers 400 394 381 376 376Other payables 2,857 2,614 2,327 2,011 2,011



Total provisions 4,242 4,307 4,219 4,255 4,255 Total liabilities 7,499 7,315 6,927 6,642 6,642 Net assets 5,487 5,240 5,145 5,061 4,881 EQUITY*Parent entity interest


Total equity 5,487 5,240 5,145 5,061 4,881*’Equity’ is the residual interest in assets after deduction of liabilities.Prepared on Australian Accounting Standards basis.


242


Retainedearnings

$'000

Assetrevaluation

reserve$'000


Totalequity


Balance carried forward from previous period (4,590) 1,243 8,834 5,487


Surplus/(deficit) for the period (1,077) - - (1,077)Total comprehensive income (1,077) - - (1,077)

of which:Attributable to the Australian Government (1,077) - - (1,077)

Transactions with ownersContributions by owners

Departmental capital budget (DCB) - - 821 821Other 9 - - 9

Sub-total transactions with owners 9 - 821 830Estimated closing balance as at 30 June 2018 (5,658) 1,243 9,655 5,240Closing balance attributable to the Australian Government (5,658) 1,243 9,655 5,240



243


2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000




Net GST received 1 1 2 1 -Total cash received 34,462 39,181 25,815 25,210 24,656Cash used

Employees 25,347 29,011 18,605 18,345 18,152Suppliers 8,921 9,949 6,929 6,549 6,504Other 194 221 281 316 -

Total cash used 34,462 39,181 25,815 25,210 24,656Net cash from/(used by) operating activities - - - - -INVESTING ACTIVITIESCash used

Purchase of property, plant and equipment and intangibles 828 821 817 817 820

Total cash used 828 821 817 817 820Net cash from/(used by) investing activities (828) (821) (817) (817) (820)FINANCING ACTIVITIESCash received

Contributed equity 828 821 817 817 820Total cash received 828 821 817 817 820Net cash from/(used by) financing activities 828 821 817 817 820Net increase/(decrease) in cash held - - - - -





244



2017-18Budget

$'000


$'000


$'000






TOTAL 828 821 817 817 820RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE





245

Table 3.6: Statement of departmental asset movements (Budget year 2017-18) Other property,

plant andequipment

$'000


intangibles$'000

Total

$'000As at 1 July 2017

Gross book value 4,288 2,904 7,192Accumulated depreciation/amortisation and impairment (2,002) (2,266) (4,268)

Opening net book balance 2,286 638 2,924Capital asset additions

Estimated expenditure on new or replacement assetsBy purchase - appropriation ordinary annual services (a) 666 155 821Total additions 666 155 821Other movementsDepreciation/amortisation expense (723) (354) (1,077)Total other movements (723) (354) (1,077)

As at 30 June 2018Gross book value 4,954 3,059 8,013Accumulated depreciation/ amortisation and impairment (2,725) (2,620) (5,345)

Closing net book balance 2,229 439 2,668(a) 'Appropriation ordinary annual services' refers to funding provided through Appropriation Bill (No.1)

2017-18 for depreciation/amortisation expenses, DCBs or other operational expenses. Prepared on Australian Accounting Standards basis.

247

OFFICE OF THE INSPECTOR-GENERAL OF INTELLIGENCE AND

SECURITY


249

OFFICE OF THE INSPECTOR-GENERAL OF INTELLIGENCE AND SECURITY




251

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.

OIGIS Budget Statements

252


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.



Information in this table is presented on a resourcing (that is, 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.

Table 1.1: OIGIS resource statement — Budget estimates for 2017-18 as atBudget May 2017

2016-17 Estimated

actual $'000

2017-18 Estimate


Prior year appropriations available 3,314 3,881 Departmental appropriation 3,118 3,157 s 74 retained revenue receipts (b) 114 -Departmental capital budget (c) 25 25

Total departmental annual appropriations 6,571 7,063 Total departmental resourcing 6,571 7,063 Total resourcing for entity OIGIS 6,571 7,063


Prepared on a resourcing (that is, appropriations available) basis.Please note: All figures shown above are GST exclusive – these may not match figures in the cash flow statement.(a) Appropriation Bill (No.1) 2017-18.(b) Estimated retained revenue receipts under section 74 of the PGPA Act.(c) Departmental capital budgets are not separately identified in Appropriation Bill (No.1) and form part of



253

1.3 BUDGET MEASURES

OIGIS has no budget measures in the 2017-18 Budget.


254




Note:


The most recent corporate plan for OIGIS can be found at: https://www.igis.gov.au/publications-reports/corporate-plan-2015-19-0

The most recent annual performance statement can be found at: https://www.igis.gov.au/publications-reports/annual-reports


255


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.


2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000


$'000

Departmental expenses

Departmental appropriation 3,118 3,157 3,202 3,247 3,295 Expenses not requiring appropriation in the Budget year (a)

140 166 166 166 166

Departmental total 3,258 3,323 3,368 3,413 3,461 Total expenses for Outcome 1 3,258 3,323 3,368 3,413 3,461


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

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



256


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 SecurityThe 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 activityProviding 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 agenciesProviding information to parliamentary committees and others on oversight issues relating to intelligence agency powers and functionsProviding evidence to the Administrative Appeals Tribunal and the Information Commissioner as required under relevant legislationUndertaking 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



2016-17 There are four key performance indicators:Range of inspection work undertakenTimeliness of completion of inquiries or complaint resolutionLevel of acceptance by intelligence agencies of findings and recommendations of inquiries conductedExtent 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 categories90% of complaints acknowledged within five business days, and 85% of visa-related complaints resolved within two weeks100% of inquiry recommendations accepted100% of inquiry recommendations implementedCompletion of at least 9 outreach activities per year.



257


2017-18 There are four key performance indicators:Range of inspection work undertakenFinalisation of complaints in a timely mannerLevel of acceptance by intelligence agencies of conclusions and recommendations of inquiries conductedExtent 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 categories90% of complaints acknowledged within five business days, and 85% of visa-related complaints finalised within two weeks100% of inquiry recommendations accepted100% of inquiry recommendations implementedCompletion of at least 15 outreach activities per year.


Purposes 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.


258




3.1.1 Differences between entity resourcing and financial statementsThe Entity Resource Statement (Table 1.1) provides a consolidated view of all the resources available to the entity in 2017-18. This includes appropriations receivable which are 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 2017-18.


OIGIS is budgeting for a break-even operating result, adjusted for depreciation and amortisation expense, in 2017-18 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.


259


The capital budget for 2017-18 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.


260



2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000


$'000EXPENSES

Employee benefits 2,745 2,784 2,829 2,874 2,922 Suppliers 500 500 500 500 500Depreciation and amortisation 13 39 39 39 39

Total expenses 3,258 3,323 3,368 3,413 3,461 LESS: OWN-SOURCE INCOMEGains

Other 127 127 127 127 127Total gains 127 127 127 127 127Total own-source income 127 127 127 127 127Net (cost of)/contribution byservices (3,131) (3,196) (3,241) (3,286) (3,334)Revenue from Government 3,118 3,157 3,202 3,247 3,295 Surplus/(deficit) attributable to theAustralian Government (13) (39) (39) (39) (39)

Total comprehensive income/(loss)excluding depreciation/amortisation expenses previouslyfunded through revenueappropriations - - - - -

less depreciation/amortisationexpenses previously funded throughrevenue appropriations (a) 13 39 39 39 39

Total comprehensive income/(loss) - as per the statement of comprehensive income (13) (39) (39) (39) (39)(a) From 2010-11, the Government introduced net cash appropriation arrangements where Bill 1 revenue




261



2017-18Budget

$'000


$'000


$'000



Cash and cash equivalents 155 155 155 155 155Trade and other receivables 10 10 10 10 10Appropriations Receivable 3,314 3,289 3,289 3,289 3,289


Property, plant and equipment 115 126 112 98 84Total non-financial assets 115 126 112 98 84 Total assets 3,594 3,580 3,566 3,552 3,538 LIABILITIESPayables

Suppliers 21 21 21 21 21Other payables 111 111 111 111 111

Total payables 132 132 132 132 132 Provisions

Employee provisions 627 627 627 627 627Total provisions 627 627 627 627 627 Total liabilities 759 759 759 759 759 Net assets 2,835 2,821 2,807 2,793 2,779 EQUITY*

Contributed equity 528 553 578 603 628Reserves 16 16 16 16 16Retained surplus (accumulateddeficit) 2,291 2,252 2,213 2,174 2,135

Total equity 2,835 2,821 2,807 2,793 2,779 *’Equity’ is the residual interest in assets after deduction of liabilities. Prepared on Australian Accounting Standards basis.


262


Retainedearnings

$'000

Assetrevaluation

reserve$'000


Totalequity


Balance carried forward fromprevious period 2,291 16 528 2,835 Adjustment for changes inaccounting policies -

Adjusted opening balance 2,291 16 528 2,835 Comprehensive income

Surplus/(deficit) for the period (39) (39)Total comprehensive income (39) - - (39)of which:

Attributable to the AustralianGovernment (39) - - (39)


Departmental capital budget (DCB) - - 25 25

Sub-total transactions withowners - - 25 25Estimated closing balance as at30 June 2018 2,252 16 553 2,821 Closing balance attributable tothe Australian Government 2,252 16 553 2,821



263


2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000



Appropriations 2,975 3,104 3,151 3,004 3,422Other 114 - - - -


Employees 2,719 2,784 2,829 2,874 2,922Suppliers 230 295 322 130 500Other 114 - - - -

Total cash used 3,063 3,079 3,151 3,004 3,422Net cash from/(used by)operating activities 26 25 - - -

INVESTING ACTIVITIESCash used

Purchase of property, plant andequipment and intangibles 51 50 25 25 25

Total cash used 51 50 25 25 25Net cash from/(used by)investing activities (51) (50) (25) (25) (25)


Contributed equity 25 25 25 25 25Total cash received 25 25 25 25 25Net cash from/(used by)financing activities 25 25 25 25 25Net increase/(decrease) in cashheld - - - - -

Cash and cash equivalents at thebeginning of the reporting period 155 155 155 155 155

Cash and cash equivalents atthe end of the reporting period 155 155 155 155 155



264



2017-18Budget

$'000


$'000


$'000




Purchase of non-financial assets 25 25 25 25 25Total items 25 25 25 25 25PURCHASE OF NON-FINANCIALASSETS

Funded by capital appropriation -DCB (a) 51 50 25 25 25

TOTAL 51 50 25 25 25RECONCILIATION OF CASH USEDTO ACQUIRE ASSETS TO ASSETMOVEMENT TABLE





265


plant andequipment

$'000

Total

$'000As at 1 July 2017

Gross book value 170 170Accumulated depreciation/amortisation and impairment (55) (55)

Opening net book balance 115 115Capital asset additions

Estimated expenditure on newor replacement assetsBy purchase - appropriation ordinaryannual services (a) 50 50Total additions 50 50Other movementsDepreciation/amortisation expense (39) (39)Total other movements (39) (39)

As at 30 June 2018Gross book value 220 220Accumulated depreciation/amortisation and impairment (94) (94)

Closing net book balance 126 126 (a) ‘Appropriation ordinary annual services’ refers to funding provided through Appropriation Bill (No. 1)


267

OFFICE OF THE OFFICIAL SECRETARY TO THE GOVERNOR-

GENERAL


269

OFFICE OF THE OFFICIAL SECRETARY TO THE GOVERNOR-GENERAL




271

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.

OOSGG Budget Statements

272


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.



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


273

Table 1.1: OOSGG resource statement — Budget estimates for 2017-18 as at Budget May 2017

2016-17 Estimated

actual $'000

2017-18 Estimate


Prior year appropriations available 2,950 2,934Departmental appropriation (b) 11,076 10,932Departmental capital budget (c) 395 391

Total departmental annual appropriations 14,421 14,257Total departmental resourcing 14,421 14,257AdministeredAnnual appropriations - ordinary annual services

Outcome 1 1,431 1,509Administered capital budget (d) 2,936 3,214

Total administered annual appropriations 4,367 4,723Total administered special appropriations (e) 425 425Total administered resourcing 4,792 5,148Total resourcing for entity OOSGG 19,213 19,405


Prepared on a resourcing (that is, appropriations available) basis.Please note: All figures shown above are GST exclusive – these may not match figures in the cash flow statement. (a) Appropriation Bill (No.1) 2017-18.(b) Excludes departmental capital budget (DCB).(c) Departmental capital budgets are not separately identified in Appropriation Bill (No.1) and form part of


(d) 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.

(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.


274

1.3 BUDGET MEASURES

OOSGG has no budget measures in the 2017-18 Budget.


275




Note:


The most recent corporate plan for OOSGG can be found at: https://www.gg.gov.au/office-official-secretary-governor-general/corporate-plans

The most recent annual performance statement can be found at: https://www.gg.gov.au/office-official-secretary-governor-general/annual-reports


276


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 the 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.


2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000


$'000


Special appropriations 425 425 425 425 425Expenses not requiring appropriation in the Budget year (a)

1,570 1,717 1,218 1,499 1,513

Administered total 3,426 3,651 3,184 3,472 3,511Departmental expenses

Departmental appropriation 11,076 10,932 10,885 10,950 11,024Expenses not requiring appropriation in the Budget year (b)

422 453 461 457 418

Departmental total 11,498 11,385 11,346 11,407 11,442 Total expenses for program 1.1 14,924 15,036 14,530 14,879 14,953


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

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

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



277


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 groupsPersonal support – providing support for Their Excellencies’ and hospitality services for official functionsAdministrative services – providing governance advise and administrative services to OOSGG and managing the Governor-General’s official residences, including maintenance of property, equipment and grounds.

Performance information (component 1)


2016-17 The Governor-General is satisfied with the level of advice and administrative support provided that enables him to successfully perform official dutiesThe Governor-General is satisfied with the management of the householdsThe 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 in the 2016-17 PBS will be met.

2017-18 and beyond As per 2016-17. As per 2016-17.continued on next page.


278

Table 2.1.2: Performance criteria for Outcome 1 (continued)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.

Performance information (component 2)


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 CommitteeProvide secretariat support to the Australian honours advisory bodiesUndertake the administrative tasks associated with the approval of recipients inthe Australian honours system and subsequent announcement where applicableProcure Australian honours insignia, warrants and investiture itemsFacilitate the approval of, and changes to, governing instruments within the Australian honours systemProvide 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 providedActivities comply with the governing instruments for honours and awards, including the Constitution for the Order of AustraliaThe medals and insignia meet design specifications, adequate stock levels are maintained and control processes are adhered toEnsure the accurate and timely issue of insignia and other resources for investitures and honours list announcements


Purposes(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.

(a) Refers to the purposes reflected in the 2017-18 Corporate Plan.


279




3.1.1 Differences between entity resourcing and financial statementsThe 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 2017-18 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 3.5.

The Comprehensive Income Statement (Table 3.1) 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 2017-18, the OOSGG will receive administered appropriations of $0.4 million for the Governor-General’s salary, $1.5 million for support of the Australian Honours and Awards System and $3.2 million for the Administered Capital Budget to sustain the capability and the condition of its Heritage properties.


280

Schedule of Budgeted Assets and Liabilities Administered on Behalf of Government

The value of land and buildings is expected to increase in 2017-18 and the forward years due to the completion of projects developed under the Asset Management Strategy.


281



2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000


$'000EXPENSES

Employee benefits 7,659 7,583 7,491 7,657 7,555Suppliers 3,486 3,418 3,463 3,362 3,538Depreciation and amortisation 353 384 392 388 349

Total expenses 11,498 11,385 11,346 11,407 11,442LESS: OWN-SOURCE INCOMEGains

Other 69 69 69 69 69Total gains 69 69 69 69 69Total own-source income 69 69 69 69 69Net (cost of)/contribution by services (11,429) (11,316) (11,277) (11,338) (11,373)

Revenue from Government 11,076 10,932 10,885 10,950 11,024Surplus/(deficit) attributable to the Australian Government (353) (384) (392) (388) (349)Total comprehensive income/(loss) (353) (384) (392) (388) (349)Total comprehensive income/(loss) attributable to the Australian Government (353) (384) (392) (388) (349)


$'0002017-18

$'0002018-19

$'0002019-20

$'0002020-21


less depreciation/amortisation expenses previously funded through revenue appropriations (a) 353 384 392 388 349

Total comprehensive income/(loss) - as per the statement of comprehensive income (353) (384) (392) (388) (349)




282



2017-18Budget

$'000


$'000


$'000





Property, plant and equipment 1,381 1,379 1,451 1,468 1,461Intangibles 357 366 292 278 279


Suppliers 262 262 262 262 262Other payables 171 171 171 171 171

Total payables 433 433 433 433 433 Provisions

Employee provisions 2,111 2,140 2,140 2,140 2,140Total provisions 2,111 2,140 2,140 2,140 2,140 Total liabilities 2,544 2,573 2,573 2,573 2,573 Net assets 2,390 2,397 2,395 2,398 2,442 EQUITY*Parent entity interest

Contributed equity 1,841 2,232 2,622 3,013 3,406Reserves 558 558 558 558 558Retained surplus (accumulated deficit) (9) (393) (785) (1,173) (1,522)




283


Retainedearnings

$'000

Assetrevaluation

reserve$'000


Totalequity


Balance carried forward from previous period (9) 558 1,841 2,390

Adjusted opening balance (9) 558 1,841 2,390Comprehensive income

Other comprehensive income -Surplus/(deficit) for the period (384) - - (384)

Total comprehensive income (384) - - (384)of which:

Attributable to the Australian Government (384) - - (384)


Departmental capital budget (DCB) - - 391 391Sub-total transactions with owners - - 391 391Estimated closing balance as at 30 June 2018 (393) 558 2,232 2,397Closing balance attributable to the Australian Government (393) 558 2,232 2,397



284


2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000



Appropriations 11,362 11,278 10,885 10,950 11,024Total cash received 11,362 11,278 10,885 10,950 11,024Cash used


Total cash used 11,362 11,278 10,885 10,950 11,024Net cash from/(used by) operating activities - - - - -INVESTING ACTIVITIESCash received

Other 395 391 390 391 393Total cash received 395 391 390 391 393Cash used

Purchase of property, plant and equipment and intangibles 395 391 390 391 393

Total cash used 395 391 390 391 393Net cash from/(used by) investing activities - - - - -Net increase/(decrease) in cash held - - - - -





285



2017-18Budget

$'000


$'000


$'000






TOTAL 395 391 390 391 393RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE


(a) Includes purchases from current and previous years’ Departmental Capital Budgets (DCBs).Prepared on Australian Accounting Standards basis.


286


plant andequipment

$'000


intangibles$'000

Total

$'000As at 1 July 2017

Gross book value 2,561 1,098 3,659Accumulated depreciation/amortisation and impairment (1,180) (741) (1,921)

Opening net book balance 1,381 357 1,738Capital asset additions

Estimated expenditure on new or replacement assetsBy purchase - appropriation ordinary annual services (a) 281 110 391Total additions 281 110 391Other movementsDepreciation/amortisation expense (283) (101) (384)Total other movements (283) (101) (384)

As at 30 June 2018Gross book value 2,842 1,208 4,050Accumulated depreciation/ amortisation and impairment (1,463) (842) (2,305)

Closing net book balance 1,379 366 1,745 (a) ‘Appropriation ordinary annual services’ refers to funding provided through Appropriation Bill (No. 1)



287

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

2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000


$'000EXPENSES

Suppliers 1,431 1,509 1,541 1,548 1,573Personal benefits 425 425 425 425 425Depreciation and amortisation 1,570 1,717 1,218 1,499 1,513

Total expenses administered on behalf of Government 3,426 3,651 3,184 3,472 3,511

LESS:OWN-SOURCE INCOMENon-taxation revenue

Sale of goods and rendering of services 27 27 27 27 30

Total non-taxation revenue 27 27 27 27 30Total own-source revenue administered on behalf of Government

27 27 27 27 30

Total own-sourced income administered on behalf of Government

27 27 27 27 30

Net (cost of)/contribution by services (3,399) (3,624) (3,157) (3,445) (3,481)

Total comprehensive income/(loss) (3,399) (3,624) (3,157) (3,445) (3,481)Prepared on Australian Accounting Standards basis.


288


2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000



Cash and cash equivalents 1 1 1 1 1Trade and other receivables 84 84 84 84 84

Total financial assets 85 85 85 85 85Non-financial assets

Land and buildings 127,081 128,023 128,757 129,897 131,047Property, plant and equipment 2,102 2,657 2,982 3,152 3,315Inventories 1,111 1,111 1,111 1,111 1,111

Total non-financial assets 130,294 131,791 132,850 134,160 135,473Total assets administered on behalf of Government 130,379 131,876 132,935 134,245 135,558

LIABILITIESPayables

Suppliers 38 38 38 38 38Total payables 38 38 38 38 38Total liabilities administered on behalf of Government 38 38 38 38 38

Net assets/(liabilities) 130,341 131,838 132,897 134,207 135,520Prepared on Australian Accounting Standards basis.


289


2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000



Sales of goods and rendering of services 27 27 27 27 30

Total cash received 27 27 27 27 30Cash used

Personal benefits 425 425 425 425 425Suppliers 1,603 1,611 1,541 1,548 1,573

Total cash used 2,028 2,036 1,966 1,973 1,998Net cash from/(used by) operating activities (2,001) (2,009) (1,939) (1,946) (1,968)


Other 2,936 3,214 2,277 2,809 2,826Total cash received 2,936 3,214 2,277 2,809 2,826Cash used


Total cash used 2,936 3,214 2,277 2,809 2,826Net cash from/(used by) investing activities - - - - -Net increase/(decrease) in cash held (2,001) (2,009) (1,939) (1,946) (1,968)

Cash and cash equivalents at beginning of reporting period 1 1 1 1 1


- Appropriations 2,021 2,029 1,966 1,973 1,998Total cash from Official Public Account 2,021 2,029 1,966 1,973 1,998Cash to Official Public Account for:

- Appropriations (20) (20) (27) (27) (30)Total cash to Official Public Account (20) (20) (27) (27) (30)

Cash and cash equivalents at end of reporting period 1 1 1 1 1



290

Table 3.10: Administered capital budget statement (for the period ended 30 June)2016-17


2017-18Budget

$'000


$'000


$'000



Capital budget - Bill 1 (ACB) 2,936 3,214 2,277 2,809 2,826Total new capital appropriations 2,936 3,214 2,277 2,809 2,826Provided for:

Purchase of non-financial assets 2,936 3,214 2,277 2,809 2,826Total items 2,936 3,214 2,277 2,809 2,826PURCHASE OF NON-FINANCIAL ASSETS

Funded by capital appropriation - ACB (a) 2,936 3,214 2,277 2,809 2,826

TOTAL 2,936 3,214 2,277 2,809 2,826RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE

Total accrual purchases 2,936 3,214 2,277 2,809 2,826Total cash used to acquire assets 2,936 3,214 2,277 2,809 2,826

(a) Includes purchases from current and previous years’ Administered Capital Budgets (ACBs). Prepared on Australian Accounting Standards basis.


291

Table 3.11: Statement of administered asset movements (Budget year 2017-18)Land

$'000

Buildings

$'000


equipment$'000

Total

$'000As at 1 July 2017

Gross book value 94,660 35,880 2,350 132,890Accumulated depreciation/amortisation and impairment - (3,459) (248) (3,707)

Opening net book balance 94,660 32,421 2,102 129,183CAPITAL ASSET ADDITIONSEstimated expenditure on new or replacement assets

By purchase - appropriation ordinary annual services (a) - 2,602 612 3,214

Total additions - 2,602 612 3,214Other movements

Depreciation/amortisation expense - (1,660) (57) (1,717)Total other movements - (1,660) (57) (1,717)

As at 30 June 2018Gross book value 94,660 38,482 2,962 136,104Accumulated depreciation/amortisation and impairment - (5,119) (305) (5,424)

Closing net book balance 94,660 33,363 2,657 130,680(a) ‘Appropriation ordinary annual services’ refers to funding provided through Appropriation Bill (No. 1)

2017-18 for depreciation/amortisation expenses or ACBs.Prepared on Australian Accounting Standards basis.

293

TORRES STRAIT REGIONAL AUTHORITY


295





297




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.

TSRA Budget Statements

298

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

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 Papua New Guinea 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.


299


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.



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: TSRA resource statement — Budget estimates for 2017-18 as at Budget May 2017

2016-17 Estimated

actual$'000

2017-18 Estimate

$'000Opening balance/cash reserves at 1 July 9,277 2,827

Funds from GovernmentAnnual appropriations - ordinary annual services (a)

Outcome 1 35,919 36,056Equity injection (b) - 1,000

Total annual appropriations 35,919 37,056Total funds from Government 35,919 37,056Funds from other sources

Interest 1,160 900Sale of goods and services 505 505Other 10,023 10,425

Total funds from other sources 11,688 11,830Total net resourcing for Torres Strait Regional Authority 56,884 51,713


Prepared on a resourcing (that is, appropriations available) basis.Please note: All figures shown above are GST exclusive – these may not match figures in the cash flow statement. (a) Appropriation Bill (No. 1) 2017-18. (b) Appropriation Bill (No. 2) 2017-18.


300

1.3 BUDGET MEASURES

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

Table 1.2: TSRA 2017-18 Budget measures


Program2016-17

$'0002017-18

$'0002018-19

$'0002019-20

$'0002020-21

$'000Capital measures

Public Service Modernisation Fund - agency sustainability 1.1

Departmental capital - - - - -

Total - - - - -Total capital measures

Departmental - - - - -

Total - - - - - 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.


301




Note:


The most recent corporate plan for TSRA can be found at: http://www.tsra.gov.au/__data/assets/pdf_file/0005/8735/TSRA-2016-2017-Corporate-Plan-Final.PDF

The most recent annual performance statement can be found at: http://www.tsra.gov.au/media-and-publications/publications/annual-reports/annual-report-2015-2016


302


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.


2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000


$'000




Revenues from other independent sources 11,688 11,830 11,480 11,031 11,031Total expenses for Outcome 1 47,607 47,886 47,363 46,996 47,225


Program 1.1: Torres Strait Regional Development

Outcome 1 totals by resource type

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



303


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 regionproviding 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 regionintegrating cultural values and protocols into service planning and management practicepreserving 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 Agreementsassisting with Native Title claimssupporting Prescribed Body Corporates 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 resourcesfacilitating community adaptation to climate change impacts, including sea level risesupporting community sustainable horticulture.

Enhancing governance and leadership by:improving communication, cultural competence and service delivery within a community development framework across governmentsstrengthening 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 environmentsimplementing policies to support community managed delivery of primary and public health care services based on regional needs and prioritiesimproving access to affordable fresh and healthy foods



304

Table 2.1.2: Performance criteria for Outcome 1 (continued) Delivery supporting more active and healthy communities

ensuring affordable home ownership is available across the regioninvesting in effective community and social servicessupporting law enforcement and community safety programsensuring communities have access to appropriate transport infrastructure.



2016-17 increase in the number of Torres Strait Islander and Aboriginal owned commercially viable businessesincreased availability of approved business training increases in catches by Torres Strait and Aboriginal Fishers relative to total allowable catch, strengthening claims for increased ownershipincrease 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 rightsnumber of Native Title claims successfully determinednumber 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 implementedincrease the level of engagement of elected Torres Strait Islander and Aboriginal leaders in policy development and decision-makingnumber of PBCs that achieve Office of the Registrar of Indigenous Corporations (ORIC) compliance as at 31 December each yearincreased investment into new and existing regional environmental health infrastructure.

In addition to the criteria above:the percentage ownership of Torres Strait Commercial Fisheries by Torres Strait Islanders and Aboriginal People in the regionimprove 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.



305


2017-18 increase in the number of Torres Strait Islander and Aboriginal owned commercially viable businessesincreased availability of approved business training increases in catches by Torres Strait and Aboriginal Fishers relative to total allowable catch, strengthening claims for increased ownershipincrease 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 rightsnumber of Native Title claims successfully determinednumber 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 implementedincrease the level of engagement of elected Torres Strait Islander and Aboriginal leaders in policy development and decision-makingnumber of PBCs that achieve Office of the Registrar of Indigenous Corporations (ORIC) compliance as at 31 December each yearincreased investment into new and existing regional environmental health infrastructure.

In addition to the criteria above:the percentage ownership of Torres Strait Commercial Fisheries by Torres Strait Islanders and Aboriginal People in the regionimprove 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.


Purposes The TSRA’s Purpose Statement, in the Corporate plan – is the same as the TSRA’s Outcome Statement above.


306




3.1.1 Differences between entity resourcing and financial statementsThere are no differences between the TSRA’s resourcing and financial statements.


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 $47.886 million and expenditure of $47.886 million resulting in a breakeven result for the 2017–18 financial year.


The TSRA’s forecast balance sheet for the financial year ending 30 June 2018 shows the TSRA with total assets of $85.817 million and liabilities of $9.491 million, resulting in a net asset position of $76.326 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 $3.155 million for the financial year ending 30 June 2018.

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 $3.817 million on capital expenditure in the 2017-18 financial year.


307



2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000


$'000EXPENSES

Employee benefits 16,513 17,005 17,257 17,514 17,775Suppliers 17,299 16,998 16,223 15,599 15,565Grants 12,770 12,588 12,588 12,588 12,590Depreciation and amortisation 875 1,145 1,145 1,145 1,145Finance costs 150 150 150 150 150


Sale of goods and rendering of services 505 505 505 505 505Interest 1,160 900 790 790 790Other 10,023 10,425 10,185 9,736 9,736

Total own-source revenue 11,688 11,830 11,480 11,031 11,031Total own-source income 11,688 11,830 11,480 11,031 11,031Net (cost of)/contribution by services (35,919) (36,056) (35,883) (35,965) (36,194)Revenue from Government 35,919 36,056 35,883 35,965 36,194Surplus/(deficit) attributable to the Australian Government - - - - -Total comprehensive income/(loss) attributable to the Australian Government - - - - -



308

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

2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000



Cash and cash equivalents 2,827 3,155 3,200 3,195 3,195Trade and other receivables 5,678 5,678 5,678 5,678 5,678Other investments 20,500 18,500 16,500 16,500 16,500


Land and buildings 52,948 55,374 59,102 58,901 58,820Property, plant and equipment 2,804 3,050 3,266 3,472 3,553Other non-financial assets 60 60 60 60 60

Total non-financial assets 55,812 58,484 62,428 62,433 62,433Total assets 84,817 85,817 87,806 87,806 87,806 LIABILITIESPayables

Suppliers 777 777 777 777 777Grants 3,600 3,600 3,600 3,600 3,600Other payables 1,458 1,458 1,458 1,458 1,458


Employee provisions 3,656 3,656 3,656 3,656 3,656Total provisions 3,656 3,656 3,656 3,656 3,656 Total liabilities 9,491 9,491 9,491 9,491 9,491 Net assets 75,326 76,326 78,315 78,315 78,315 EQUITY*Parent entity interest

Contributed equity 32 1,032 3,021 3,021 3,021Reserves 15,348 15,348 15,348 15,348 15,348Retained surplus 59,946 59,946 59,946 59,946 59,946




309


Retainedearnings

$'000

Assetrevaluation

reserve$'000


Totalequity


Balance carried forward from previous period 59,946 15,348 32 75,326

Adjusted opening balance 59,946 15,348 32 75,326Comprehensive income

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

Contributions by ownersEquity injection - Appropriation - - 1,000 1,000

Sub-total transactions with owners - - 1,000 1,000Estimated closing balance as at 30 June 2018 59,946 15,348 1,032 76,326

Closing balance attributable to the Australian Government 59,946 15,348 1,032 76,326



310


2016-17 Estimated

actual$'000

2017-18Budget

$'000


$'000


$'000



Appropriations 35,919 36,056 35,883 35,965 36,194Sale of goods and rendering of services 505 505 505 505 505

Interest 1,010 750 640 640 640Other 10,023 10,425 10,185 9,736 9,736


Employees 16,513 17,005 17,257 17,514 17,775Suppliers 17,299 16,998 16,223 15,599 15,565Other 12,920 12,738 12,588 12,588 12,590

Total cash used 46,732 46,741 46,068 45,701 45,930Net cash from/(used by) operating activities 725 995 1,145 1,145 1,145


Investments 4,000 2,000 2,000 - -Other 600 600 - - -

Total cash received 4,600 2,600 2,000 - -Cash used


Other 450 450 - - -Total cash used 11,775 4,267 5,089 1,150 1,145Net cash from/(used by) investing activities (7,175) (1,667) (3,089) (1,150) (1,145)


Contributed equity - 1,000 1,989 - -Total cash received - 1,000 1,989 - -Net cash from/(used by) financing activities - 1,000 1,989 - -

Net increase/(decrease) in cash held (6,450) 328 45 (5) -Cash and cash equivalents at the beginning of the reporting period 9,277 2,827 3,155 3,200 3,195




311



2017-18Budget

$'000


$'000


$'000



Equity injections - Bill 2 - 1,000 1,989 - -

Total new capital appropriations - 1,000 1,989 - -Provided for:

Purchase of non-financial assets - 1,000 1,989 - -Total items - 1,000 1,989 - -


Funded by capital appropriations (a) - 1,000 1,989 - -Funded internally from departmental resources (b) 11,325 2,817 3,100 1,150 1,145


(a) Include current Bill 2.(b) Includes the following sources of funding:

- current Bill 1 and prior year Act 1/3/5 appropriations (excluding amounts from the DCB);Prepared on Australian Accounting Standards basis.


312

Table 3.6: Statement of departmental asset movements (Budget year 2017-18) Land

$'000

Buildings

$'000


equipment$'000

Heritageand

cultural$'000

Total

$'000As at 1 July 2017

Gross book value 9,850 43,729 5,336 60 58,975Accumulated depreciation/amortisation and impairment - (631) (2,532) - (3,163)

Opening net book balance 9,850 43,098 2,804 60 55,812Capital asset additions

Estimated expenditure on new or replacement assets

By purchase - appropriation equity (a) - 1,000 - - 1,000By purchase - appropriation ordinary annual services (b) - 2,327 490 - 2,817Total additions - 3,327 490 - 3,817Other movementsDepreciation/amortisation expense - (901) (244) - (1,145)Total other movements - (901) (244) - (1,145)

As at 30 June 2018Gross book value 9,850 47,056 5,826 60 62,792Accumulated depreciation/ amortisation and impairment - (1,532) (2,776) - (4,308)

Closing net book balance 9,850 45,524 3,050 60 58,484 (a) ‘Appropriation equity’ refers to equity injections appropriations provided through Appropriation Bill (No. 2)

2017-18, including CDABs.(b) ‘Appropriation ordinary annual services’ refers to funding provided through Appropriation Bill (No. 1)


313

PORTFOLIO GLOSSARY

Term Meaning

Accumulated depreciation The aggregate depreciation recorded for a particular depreciating asset.

Actual available appropriation

The actual available appropriation indicates the total appropriations available to the entity for 2016-17 as at the 2017-18 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).

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

314

Term Meaningcapital. 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.

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

315

Term Meaningexpenses 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.

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

316

Term Meaningrecognised 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).

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

317

Term MeaningMinister 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.

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

318

Term Meaningappropriations.

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.

319

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

DCB Departmental Capital Budget

DHS Department of Human Services

DTA Digital Transformation Agency

DSS Department of Social Services

FOI Freedom of Information

G20 Group of 20 Meeting

GFS Government Finance Statistics

IBA Indigenous Business Australia

320

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

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