portfolio budget statements 2018 - 2019

Portfolio Budget Statements 2018-19 Budget Related Paper No. 1.14

PRIME MINISTER AND CABINET PORTFOLIO

Budget Initiatives and Explanations of Appropriations Specified by Outcomes

and Programs by Entity

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© Commonwealth of Australia 2018

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Parliament House CANBERRA ACT 2600 Telephone (02) 6277 7700

www.pm.gov.au

PRIME MINISTER

PARLIAMENT HOUSE CANBERRA 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 2018-19 Budget for the Prime Minister and Cabinet portfolio.

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

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

Yours sincerely

MALCOLM TURNBULL

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Abbreviations and conventions The following notation may be used:

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 not zero, but rounded to zero na not applicable (unless otherwise specified) nfp not for publication $m $ million $b $ billion

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

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

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

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

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USER GUIDE TO THE

PORTFOLIO BUDGET STATEMENTS

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USER GUIDE

The purpose of the 2018-19 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) 2018-19 (or Appropriation (Parliamentary Departments) Bill (No. 1) 2018-19 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.

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CONTENTS

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

Entity resources and planned performance ............................................................. 15 Department of the Prime Minister and Cabinet ............................................................. 17 Aboriginal Hostels Limited ............................................................................................. 63 Australian Institute of Aboriginal and Torres Strait Islander Studies ............................. 81 Australian National Audit Office .................................................................................. 105 Australian Public Service Commission........................................................................ 133 Digital Transformation Agency .................................................................................... 157 Indigenous Business Australia .................................................................................... 177 Indigenous Land Corporation ...................................................................................... 201 Office of National Assessments .................................................................................. 223 Office of the Commonwealth Ombudsman ................................................................. 241 Office of the Inspector-General of Intelligence and Security ...................................... 265 Office of the Official Secretary to the Governor-General ............................................ 285 Torres Strait Regional Authority .................................................................................. 311 Workplace Gender Equality Agency ........................................................................... 331

Glossary and Acronyms ........................................................................................... 350

1

PORTFOLIO OVERVIEW

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PRIME MINISTER AND CABINET PORTFOLIO OVERVIEW

Ministers and portfolio responsibilities

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

The principal responsibilities of the Prime Minister and Cabinet Portfolio comprise of:

• 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 and national security 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

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

• promoting and improving workplace gender equality in Australian workplaces

• Whole-of-Government service delivery policy, focusing on increasing the accessibility and efficiency of digital government service interfaces

• maximising the economic and social benefits of using public sector data, while maintaining strong privacy and security safeguards

• Official Establishments, ownership and property management of the Prime Minister’s official residences.

Portfolio overview

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The Portfolio comprises nine non-corporate Commonwealth entities, nine 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

• 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

• Workplace Gender Equality Agency.

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

• Australian Institute of Aboriginal and Torres Strait Islander Studies

• Indigenous Business Australia

• Indigenous Land Corporation

• Northern Territory Land Councils

o Anindilyakwa Land Council

o Central Land Council

o Northern Land Council

o Tiwi Land Council

• Torres Strait Regional Authority

• Wreck Bay Aboriginal Community Council.

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

• Aboriginal Hostels Limited

• National Australia Day Council Limited

• Outback Stores Pty Ltd.

Portfolio Overview

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The Department of the Prime Minister and Cabinet (PM&C) is a non-corporate Commonwealth entity and is subject to the PGPA Act. The principal function of PM&C is to provide support to the Prime Minister, the Cabinet, Portfolio Ministers, and Assistant Ministers to achieve a coordinated and innovative approach to the development and implementation of government policies.

PM&C is also responsible for Whole-of-Government policy and programs relating to Indigenous affairs 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 Institute of Aboriginal and Torres Strait Islander Studies (AIATSIS) is an independent statutory authority created by the Australian Institute of Aboriginal and Torres Strait Islander Studies Act 1989. The purpose of AIATSIS, as a national collecting institution and publicly funded research agency which creates unique research infrastructure for Australia, is to build pathways for the knowledge of Aboriginal and Torres Strait Islander people to grow and be shared.

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.

Portfolio overview

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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 and is subject to the PGPA Act. Its mission is to accelerate the government’s digital transformation agenda by helping agencies to move more services online, deliver a better user experience to users and to ensure the best use of the government’s Information and Communication Technology (ICT) spend.

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. 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.

Portfolio Overview

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The Indigenous Land Corporation (ILC) is a corporate Commonwealth entity established under the ATSI Act and is subject to the PGPA Act. The ILC strategically invests in Indigenous held land and waters1 to foster prosperity and empowerment among Aboriginal and Torres Strait Islander people. The ILC aims to create economic, environmental, social and cultural benefits by assisting in the acquisition and management of land. This includes economic independence (in particular jobs for Indigenous people); social benefit; cultural identity and connection to country; and environmental sustainability.

The National Australia Day Council (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.

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. Each is a corporate Commonwealth entity established to represent Aboriginal interests in 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 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 Education and Training Student Loans, and Private Health Insurance Ombudsman.

1 The ILC currently invests in water-based projects that are attached to a land based activity. The

Australian Government has recently introduced legislation to Parliament to amend the ATSI Act to extend the ILC’s remit to salt and fresh water country, thus enabling greater flexibility in the `ILC’s support of projects that involve Indigenous held water interests.

Portfolio overview

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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.

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

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

The 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 Workplace Gender Equality Agency (WGEA) is a non-corporate Commonwealth entity which is subject to the PGPA Act. The WGEA is responsible for promoting and improving gender equality in Australian workplaces and administering the Workplace Gender Equality Act 2012.

Portfolio Overview

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The Wreck Bay Aboriginal Community Council (WBACC) is a corporate Commonwealth entity established by the Aboriginal Land Grant (Jervis Bay Territory) Act 1986 and is subject to the PGPA Act. The council holds title to land and provides services to the Aboriginal community of Jervis Bay.

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

PB Statements are not required for the Aboriginal Land Commissioner, Anindilyakwa Land Council, Defence Force Remuneration Tribunal, Executive Director of Township Leasing, Independent National Security Legislation Monitor, National Australia Day Council, Northern Land Council, Central Land Council, Outback Stores, Office of the 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, or are not Commonwealth entities.

Portfolio overview

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Overview of resourcing changes from Administrative Arrangements Orders and Machinery of Government changes

Additional resourcing changes have occurred across the PM&C Portfolio due to changes to the Administrative Arrangements Orders (AAO) announced on 19 April 2018, 20 December 2017 and 30 November 2017.

Under the AAO of 19 April 2018 responsibilities for:

• Australian Institute of Aboriginal and Torres Strait Islander Studies (AIATSIS) transferred into the PM&C Portfolio from the Education and Training Portfolio

• Workplace Gender Equality Agency (WGEA) transferred into the PM&C Portfolio from the Jobs and Small Business Portfolio

Under the AAO of 20 December 2017 responsibilities for:

• Counter Terrorism Policy Co-ordination and Cyber policy Co-ordination transferred from PM&C to the Department of Home Affairs

• National Policy on Cities, and Population Policy transferred from PM&C to the Department of Infrastructure, Regional Development and Cities

• Infrastructure and Project Financing Agency transferred from the PM&C Portfolio to the Infrastructure, Regional Development and Cities Portfolio

• Reducing the Burden of Government Regulation transferred from PM&C to the Department of Jobs and Small Business

Under the AAO of 30 November 2017 responsibilities for:

• Official Establishments, ownership and property management of the Prime Minister’s official residences transferred to PM&C from the Department of Finance.

Portfolio Overview

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Figure 1: Prime Minister and Cabinet portfolio structure and outcomes

Prime Minister — The Hon Malcolm Turnbull MP

Minister for Indigenous Affairs — Senator the Hon Nigel Scullion Minister for Women and Minister Assisting the Prime Minister for the Public Service —The Hon Kelly

O’Dwyer MP Minister Assisting the Prime Minister for Digital Transformation – The Hon Michael Keenan MP

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

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

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 programmes, and through measures that recognise the special place that Indigenous people hold in this Nation.

Aboriginal Hostels Limited 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 Institute of Aboriginal and Torres Strait Islander Studies

Chief Executive Officer: Mr Craig Ritchie Outcome: Further understanding of Australian Indigenous cultures, past and present through undertaking and publishing research, and providing access to print and audiovisual collections.

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.

Portfolio overview

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Digital Transformation Agency Chief Executive Officer: Mr Gavin Slater

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

Indigenous Business Australia Chief Executive Officer: Mr 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.

National Australia Day Council Limited Interim Chief Executive Officer: Ms Ria Charles

Outcome: A shared celebration of Australia and Australians through promoting the meaning of and participation in Australia Day and the Australian of the Year Awards.

Northern Territory Land Councils

Anindilyakwa Land Council - Chief Executive Officer: Mr Mark Hewitt Central Land Council - Accountable Authority: Mr Francis Kelly (Chair) and Mr David Ross (Director)

Northern Land Council – Accountable Authority: Mr Samuel Bush-Blanosi (Chair) and Mr Joe Morrison (Chief Executive Officer) Tiwi Land Council –Chief Executive Officer: Mr Brian Clancy Outcome: 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 Nick Warner

Outcome: Advancement of Australia's national interests through increased government awareness of international developments affecting Australia and integration, coordination and evaluation of Australia's national intelligence capabilities.

Office of the Commonwealth Ombudsman Ombudsman: Mr Michael Manthorpe PSM

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.

Portfolio Overview

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Office of the Inspector-General of Intelligence and Security Inspector-General: The Hon. Margaret Stone

Outcome: Independent assurance for the Prime Minister, senior ministers and Parliament as to whether Australia’s intelligence and security agencies act legally and with propriety by inspecting, inquiring into and reporting on their activities.

Office of the Official Secretary to the Governor-General Official Secretary: Mr Mark Fraser LVO OAM

Outcome: The performance of the Governor-General’s role is facilitated through 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

Outcome: To improve access to affordable, healthy food for Indigenous communities, particularly in remote areas, through providing food supply and store management and support services.

Torres Strait Regional Authority Chief Executive Officer: Mr Wayne See Kee 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 Indigenous culture.

Workplace Gender Equality Agency Director: Ms Libby Lyons

Outcome: Promote and improve gender equality in Australian workplaces including through the provision of advice and assistance to employers and the assessment and measurement of workplace gender data.

Wreck Bay Aboriginal Community Council Chief Executive Officer: Mr Mal Hansen

Outcome: Established by the Aboriginal Land Grant (Jervis Bay Territory) Act 1986 to hold title to land and provide council services to the Aboriginal Community of Jervis Bay.

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ENTITY RESOURCES AND PLANNED PERFORMANCE

DEPARTMENT OF THE PRIME MINISTER AND CABINET ...................................... 17

ABORIGINAL HOSTELS LIMITED .............................................................................. 63

AUSTRALIAN INSTITUTE OF ABORIGINAL AND TORRES STRAIT ISLANDER STUDIES ................................................................................................... 81

AUSTRALIAN NATIONAL AUDIT OFFICE ............................................................... 105

AUSTRALIAN PUBLIC SERVICE COMMISSION ..................................................... 133

DIGITAL TRANSFORMATION AGENCY .................................................................. 157

INDIGENOUS BUSINESS AUSTRALIA .................................................................... 177

INDIGENOUS LAND CORPORATION ...................................................................... 201

OFFICE OF NATIONAL ASSESSMENTS ................................................................. 223

OFFICE OF THE COMMONWEALTH OMBUDSMAN .............................................. 241

OFFICE OF THE INSPECTOR-GENERAL OF INTELLIGENCE AND SECURITY .................................................................................................................. 265

OFFICE OF THE OFFICIAL SECRETARY TO THE GOVERNOR-GENERAL ......... 285

TORRES STRAIT REGIONAL AUTHORITY ............................................................. 311

WORKPLACE GENDER EQUALITY AGENCY ........................................................ 331

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DEPARTMENT OF THE PRIME MINISTER AND CABINET


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SECTION 1: ENTITY OVERVIEW AND RESOURCES ............................................... 21 1.1 Strategic direction statement .......................................................................... 21 1.2 Entity resource statement ............................................................................... 22 1.3 Budget measures ............................................................................................ 25

SECTION 2: OUTCOMES AND PLANNED PERFORMANCE ................................... 28 2.1 Budgeted expenses and performance for Outcome 1 .................................... 29 2.2 Budgeted expenses and performance for Outcome 2 .................................... 33

SECTION 3: BUDGETED FINANCIAL STATEMENTS ............................................... 47 3.1 Budgeted financial statements ....................................................................... 47 3.2 Budgeted financial statements tables ............................................................. 49

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Section 1: Entity overview and resources

1.1 STRATEGIC DIRECTION STATEMENT

The role of the Department of the Prime Minister and Cabinet (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 Australian Public Service Commission (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

• 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

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1.2 ENTITY RESOURCE STATEMENT

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

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

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

Information in this table is presented on a resourcing (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.


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Table 1.1 PM&C resource statement — Budget estimates for 2018-19 as at Budget May 2018

continued on next page

2017-18 Estimated

actual $'000

2018-19 Estimate

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

Prior year appropriations available (b) 80,192 96,169 Departmental appropriation 429,046 400,790 s 74 retained revenue receipts (d) 16,942 16,833 Departmental capital budget (e) 12,311 12,164

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

Prior year appropriations available (c) 4,552 6,634 Equity injection 11,694 8,273

Total departmental annual appropriations 554,737 540,862 Total departmental resourcing 554,737 540,862 AdministeredAnnual appropriations - ordinary annual services (a)

Prior year appropriations available (b) 49,639 53,003 Outcome 1 28,934 14,878 Outcome 2 1,272,667 1,240,451 Administered capital budget (g) 253 1,086 Payments to corporate entities (h) 94,855 111,105

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

Payments to corporate entities (h) 23,850 24,913 Annual appropriations - other services - specif ic payments to States, ACT, NT and local government (i) 7,762 6,536 Total administered annual appropriations 1,477,960 1,451,972 Total administered special appropriations (j) 421,645 268,093 Special accounts (j)

Opening balance 35,768 34,368 Appropriation receipts (k) 350,000 195,000 Non-appropriation receipts (l) 2,745,806 2,831,230

Total special account receipts 3,131,574 3,060,598 less administered appropriations drawn from annual/special appropriations and credited to special accounts (k) (350,000) (195,000)less payments to corporate entities from annual/special appropriations (h) (118,705) (136,018)Total administered resourcing 4,562,474 4,449,645 Total resourcing for PM&C 5,117,211 4,990,507

2017-18 2018-19

Average staffing level (number) 2,033 2,038


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Table 1.1: PM&C resource statement — Budget estimates for 2018-19 as at Budget May 2018 (continued) Third party payments from and on behalf of other entities

Prepared on a resourcing (that is, appropriations available) basis. Note: All figures shown above are GST exclusive – these may not match figures in the cash flow statement. (a) Appropriation Bill (No.1) 2018-19. (b) Excludes $136,284 subject to quarantine by Finance or withheld under section 51 of the Public

Governance, Performance and Accountability Act 2013 (PGPA Act). Excludes Departmental Capital Budget (DCB).

(c) Excludes DCB. (d) Estimated retained revenue receipts under section 74 of the PGPA Act. (e) DCB is not separately identified in Appropriation Bill (No.1) and forms 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’.

(f) Appropriation Bill (No.2) 2018-19. (g) Administered Capital Budgets (ACBs) 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'.

(h) ‘Corporate entities’ are corporate Commonwealth entities and Commonwealth companies as defined under the PGPA Act.

(i) Relates to appropriations sought for payment to the States, ACT, NT and local governments in Appropriation Bill (No.2) 2018-19. Outcome 2 – Program 2.2: Children and Schooling includes the National Partnership on Northern Territory Remote Aboriginal Investment (Non-Government Schools) with payments of $6.536 million to the Northern Territory in 2018-19. Information on the terms and conditions can be found in the National Partnership on Northern Territory Remote Aboriginal Investment at http://www.federalfinancialrelations.gov.au/content/npa/community_services/national-partnership/NT_remote_aboriginal_investment_NP.pdf. Terms and conditions are made under authority from section 7(2) of the COAG Reform Fund Act 2008 and the Intergovernmental Agreement on Federal Financial Relations.

(j) For further information on special appropriations and special accounts, please refer to Budget Paper No. 4 - Agency Resourcing. Please also see Table 2.2.1 for further information on outcome and program expenses broken down by various funding sources, for example, annual appropriations, special appropriations and special accounts.

(k) Amounts credited to the special account(s) from PM&C annual and special appropriations. (l) The Government will establish the Aboriginal and Torres Strait Islander Land and Sea Future Fund

(ATSILSFF) in the Finance portfolio from 1 July 2018. The balance of the current Aboriginal and Torres Strait Islander Land Account will be transferred from PM&C to the ATSILSFF. A new Indigenous Land Corporation Funding Special Account will be established for PM&C to continue payments to the Indigenous Land Corporation. Following passage of enabling legislation by the Australian Parliament, the new special accounts will be reported in the next budget update. For further information, see the expense measure named Aboriginal and Torres Strait Islander Land and Sea Future Fund for the PM&C Portfolio in Budget Paper No. 2.

2017-18 Estimated

actual $'000

2018-19 Estimate

$'000Receipts received from other entities for the provision of services (disclosed above in s74 Retained revenue receipts section above) 16,942 16,833 Payments made to corporate entities w ithin the Portfolio

Australian Institute of Aboriginal and Torres Strait Islander Studies 3,175 20,462 Indigenous Land Corporation 8,928 8,749 Indigenous Business Australia 32,983 32,612 Aboriginal Hostels Limited 36,563 36,323 Torres Strait Regional Authority 37,056 37,872

http://www.federalfinancialrelations.gov.au/content/npa/community_services/national-partnership/NT_remote_aboriginal_investment_NP.pdf



25

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 2018-19 Budget measures Part 1: Measures announced since the 2017-18 Mid-Year Economic and Fiscal Outlook (MYEFO)

Note: 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. Items displayed as ‘*’ means the nature of this measure is such that a reliable estimate cannot be provided. (a) The Government will establish the Aboriginal and Torres Strait Islander Land and Sea Future Fund

(ATSILSFF) in the Finance portfolio from 1 July 2018. The balance of the current Aboriginal and Torres Strait Islander Land Account will be transferred from PM&C to the ATSILSFF. A new Indigenous Land Corporation Funding Special Account will be established for PM&C to continue payments to the Indigenous Land Corporation. Following passage of enabling legislation by the Australian Parliament, the new special accounts will be reported in the next budget update. For further information, see the expense measure named Aboriginal and Torres Strait Islander Land and Sea Future Fund for the PM&C Portfolio in Budget Paper No. 2.

(b) The payment of the Remote Indigenous Housing in the Northern Territory measure is made through the Department of the Treasury under National Partnership Payments to the States.

Program2017-18

$'0002018-19

$'0002019-20

$'0002020-21

$'0002021-22

$'000Expense Measures Aboriginal and Torres Strait Islander Land and Sea Future Fund (a)

Administered expenses 2.1 - * * * *Departmental expenses 2.7 - * * * *

Total - * * * *Community Development Program - reform

Administered expenses 2.1 - - (1,000) (1,000) (1,797) Departmental expenses 2.7 - 7,215 2,503 2,093 2,107

Total - 7,215 1,503 1,093 310 Delivering Australia's Digital Future - data sharing and release arrangements

Departmental expenses 1.1 - 4,490 3,749 3,588 3,619 Total - 4,490 3,749 3,588 3,619 Prime Minister and Cabinet - enhancing capability

Departmental expenses 1.1, 2.7 - 11,655 11,663 - - Total - 11,655 11,663 - - Remote Indigenous Housing in the Northern Territory (b)

Administered expenses 2.5 - - - - - Total - - - - - Review of the Australian Public Service

Departmental expenses 1.1 - - - - - Total - - - - - Total expense measures

Administered expenses - - (1,000) (1,000) (1,797) Departmental expenses - 23,360 17,915 5,681 5,726

Total - 23,360 16,915 4,681 3,929


26

Part 2: Other measures not previously reported in a portfolio statement

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.

Program2017-18

$'0002018-19

$'000201920

$'0002020-21

$'0002021-22

$'000Expense measuresReligious Freedom Taskforce

Departmental expenses 1.1 1,043 - - - -

Total 1,043 - - - - School Enrolment and Attendance Measure - cessation

Administered expenses 2.1 - (48) (48) (48) (48)Departmental expenses 2.7 (26) (52) (52) (52) (53)

Total (26) (100) (100) (100) (101)Total expense measures

Administered - (48) (48) (48) (48)Departmental 1,017 (52) (52) (52) (53)

Total 1,017 (100) (100) (100) (101)


27

Part 3: Impact of function transfers as a result of Administrative Arrangement Order (AAO) changes not previously reported in a portfolio statement

Note: 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 funding has been transferred to PM&C to be provided to AIATSIS as Corporate Entity payments.

Program2017-18

$'0002018-19

$'0002019-20

$'0002020-21

$'0002021-22

$'000Expense ImpactTransfer of the Australian Institute of Aboriginal and Torres Strait Islander Studies from the Education and Training Portfolioa

Administered expenses 2.4 3,175 19,388 19,390 19,502 19,597 Total 3,175 19,388 19,390 19,502 19,597 Transfer of the Workplace Gender Equality Agency from the Jobs and Small Business PortfolioTotal - - - - - Transfer of Counter terrorism policy and Cyber policy co-ordination to the Department of Home Affairs

Administered expenses 1.1 (83) (112) (114) (116) (117) Departmental expenses 1.1 (2,058) (4,664) (4,676) (4,707) (4,739)

Total (2,141) (4,776) (4,790) (4,823) (4,856) Transfer of mangement of Off icial Establishments, ow nership and property management of the Prime Minister's off icial residences from the Department of Finance

Departmental expenses 1.1 205 335 335 335 335 Total 205 335 335 335 335 Transfer of Reducing the burden of government regulation to the Department of Jobs and Small Business

Departmental expenses 1.1 (265) (664) (666) (671) (675) Total (265) (664) (666) (671) (675) Transfer of National policy on cities, Population policy and Infrastructure and project f inancing to the Depatment of Infrastructure, Regional Development and Cities

Administered expenses 1.1 (16,897) (25,000) - - - Departmental expenses 1.1 (5,106) (7,977) (4,255) (4,304) -

Total (22,003) (32,977) (4,255) (4,304) - Total impact

Administered (13,805) (5,724) 19,276 19,386 19,480 Departmental (7,224) (12,970) (9,262) (9,347) (5,079)

Total (21,029) (18,694) 10,014 10,039 14,401


28

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: https://www.pmc.gov.au/resource-centre.

The most recent annual performance statement can be found at: https://pmc.gov.au/who-we-are/accountability-and-reporting/annual-reports.


29

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

2017-18 Estimated

actual$'000

2018-19Budget

$'000

2019-20 Forw ard estimate

$'000


$'000

2021-22Forw ard estimate

$'000

Administered expenses

Compensation and Legal Expenses 124 122 124 126 128

Geocoded National Address File 6,239 - - - -National Australia Day Council Limited

3,864 3,883 3,911 3,985 4,017

National Counter Terrorism Committee Secretariat

28 - - - -

Office for Women 3,290 3,310 3,331 3,393 3,420

Parliament House Briefing Room 450 453 470 478 482

Prime Minister's Off icial Residences 1,807 1,847 1,860 1,895 1,910

State Occasion and Official Visits 3,710 3,784 3,811 3,883 3,914Support to the former Governors-General (a) 1,294 1,479 1,397 1,312 1,224

Smart Cities and Suburbs 8,128 - - - -Ordinary annual services (Appropriation Bill No. 1)

28,934 14,878 14,904 15,072 15,095

Special appropriations

Public Governance, Performance and Accountability Act 2013- s77 59 10 10 10 10

Expenses not requiring appropriation in the Budget year (b)

Unw inding of provision for Support to the former Governors-General (a)

(949) 2,393 (1,014) (952) (890)

Other 248 349 349 349 349

Administered total 28,292 17,630 14,249 14,479 14,564

Program 1.1: Prime Minister and Cabinet


30

Table 2.1.1: Budgeted expenses for Outcome 1 (continued)

Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of the budget year as government priorities change. (a) The annual expense figure reflects the appropriation provided for the provision for future entitlements for

each of the former Governors-General. This is unwound as expenses not requiring appropriation in the Budget year. The increase in unwinding in 2018-19 relates to the recognition of a provision for projected future entitlements for former Governors-General.

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

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

2017-18 Estimated

actual$'000

2018-19Budget

$'000


$'000


$'000


$'000

Departmental expenses

Departmental appropriation 157,497 129,936 119,381 100,854 102,483s 74 Retained revenue receipts (c) 10,369 8,299 8,299 8,299 8,299


12,599 7,787 8,257 8,702 8,702

Departmental total 180,465 146,022 135,937 117,855 119,484

Total expenses for Outcome 1 208,757 163,652 150,186 132,334 134,048

2017-18 2018-19

Average staffing level (number) 577 589

Program 1.1: Prime Minister and Cabinet


31

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 2018-19 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 Cabinet The objectives of this program are to:

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

• provide support to the Cabinet and its committees, the Federal Executive Council and Council of Australian Governments (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

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 • The Prime Minister, portfolio ministers, and the Cabinet are satisfied with the quality and timeliness of advice and support provided on major domestic economic, social, and innovation policy, national security and international matters.

• Support timely, relevant and effective collaboration and coordination across government and external parties on major domestic economic, social, and innovation policy, national security and international matters.

• Feedback from the Prime Minister, portfolio ministers, the Cabinet, ministerial officers and the Executive shows a high level of satisfaction with the quality and timeliness of advice and support received.

• 85% of responses to requests for briefs and ministerial correspondence are delivered within agreed timelines.

• Feedback from Commonwealth agencies, State and Territory agencies, and private sector organisations demonstrates a high level of satisfaction with the quality and timeliness of collaboration and policy coordination provided.


32

Table 2.1.2: Performance criteria for Outcome 1 (continued)


• High level of satisfaction with the secretariat support services provided to the Cabinet Secretariat.

• Feedback from the Cabinet Secretariat demonstrates a high level of satisfaction with the timeliness and accuracy of the functions delivered.

2019-20 and beyond As per 2018-19. As per 2018-19.

Purposes (a) 1. Supporting the Prime Minister, as the head of the Australian Government, the Cabinet and Portfolio Ministers

2. Providing advice on major domestic policy, national security and international matters

(a) Purposes 1 & 2 in the Corporate Plan 2017-21 both map to Program 1.1.


33


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

Linked programs

Attorney-General’s Department

Programs • Program 1.4 – Justice Services • Program 1.6 – Indigenous Legal and Native Title Assistance

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 administering the Indigenous Legal Assistance Program that funds organisations to deliver culturally appropriate legal assistance services to ensure Indigenous Australians receive the help needed to overcome 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 Program.

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.


34

Department of the Environment and Energy

Programs • Program 1.1 – Sustainable Management of Natural Resources and the

Environment

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 Program. The Department of the Environment and Energy and PM&C work cooperatively on Indigenous Protected Areas.

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.

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 under a number of indigenous specific and mainstream programs administered by a number of portfolios.

Department of Jobs and Small Business

Program • Program 1.1 – Employment Services

Contribution to Outcome 2 made by linked programs The Department of Jobs and Small Business 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.


35

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 Mental Health and Carers

Contribution to Outcome 2 made by linked programs The Department of Social Services has policy responsibility for student payments, including ABSTUDY, which provide financial assistance to Indigenous families and students to encourage attendance and retention at school. In addition, some payments (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; supporting access to affordable housing; and supporting remote strategic investments and remote housing strategies.

The Department of Social Services also contributes to the Indigenous Advancement Strategy by supporting eligible Indigenous Australians living in non-remote regions with a disability into work. The Department of Social Services works with state and territory governments under the National Framework for Protecting Australia’s Children 2009-2020 to improve outcomes for Indigenous children in contact with or at risk of entering child protection systems. The Department of Social Services has also established a dedicated taskforce to work closely with PM&C, in partnership with the Northern Territory government and non-government organisations and local communities on the implementation of the Commonwealth response to the recommendations and findings of the Royal Commission into the Protection and Detention of children in the Northern Territory.


36


2017-18 Estimated

actual$'000

2018-19Budget

$'000


$'000


$'000


$'000

Administered expensesOrdinary annual services (Appropriation Bill No. 1)

646,286 658,894 687,422 697,071 706,482

Special appropriationsAboriginal Land Rights (Northern Territory) Act 1976

195,820 155,441 159,534 160,325 166,162

Aboriginals Benefit Account Ranger Agreement

998 1,013 1,028 1,028 1,028

Special accounts

Aboriginal and Torres Strait

Islander Land Account (a) 52,632 53,626 54,800 56,173 57,463

Aboriginals Benefit Account 198,131 157,803 161,950 162,801 168,638

Payments to corporate entities 19,061 18,511 18,204 18,243 18,158

Administered total 1,112,928 1,045,288 1,082,938 1,095,641 1,117,931less expenses made from special appropriations credited to special accounts

(195,820) (155,441) (159,534) (160,325) (166,162)

Total expenses for program 2.1 917,108 889,847 923,404 935,316 951,769


248,014 220,875 227,841 231,258 234,701

Other services (Appropriation Bill No. 2)

7,762 6,536 4,779 3,609 3,635

Special appropriationsHigher Education Support Act 2003

70,588 72,070 73,730 75,573 77,462



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

Program 2.1: Jobs, Land and Economy

Program 2.2: Children and Schooling (b)


37


2017-18 Estimated

actual$'000

2018-19Budget

$'000


$'000


$'000


$'000


264,620 245,311 242,203 259,288 254,944





47,442 48,396 49,921 50,675 51,435





53,305 51,975 53,611 54,421 55,237

Special accountsIndigenous Remote Services Delivery

1,373 - - - -





13,000 15,000 12,000 10,010 10,160



Program 2.3: Safety and Wellbeing

Program 2.4: Culture and Capability

Program 2.5: Remote Australia Strategies

Program 2.6: Evaluation and Research


38


Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of the budget year as government priorities change. (a) The Government will establish the Aboriginal and Torres Strait Islander Land and Sea Future Fund

(ATSILSFF) in the Finance portfolio from 1 July 2018. The balance of the current Aboriginal and Torres Strait Islander Land Account will be transferred from PM&C to the ATSILSFF. A new Indigenous Land Corporation Funding Special Account will be established for PM&C to continue payments to the Indigenous Land Corporation. Following passage of enabling legislation by the Australian Parliament, the new special accounts will be reported in the next budget update. For further information, see the expense measure

2017-18 Estimated

actual$'000

2018-19Budget

$'000


$'000


$'000


$'000


Departmental appropriation 258,350 270,854 260,226 256,077 256,770

s 74 Retained revenue receipts (b) 6,573 8,534 6,013 7,462 7,462Expenses not requiring appropriation in the Budget year (c)

6,651 11,103 16,154 18,905 18,635




1,272,667 1,240,451 1,272,998 1,302,723 1,312,959

Other services (Appropriation Bill No. 2)

7,762 6,536 4,779 3,609 3,635

Special appropriations 267,406 228,524 234,292 236,926 244,652

Special accounts 252,136 211,429 216,750 218,974 226,101

Payments to corporate entities 94,855 111,105 110,951 110,535 110,910less expenses made from special/annual appropriations credited to special accounts

(195,820) (155,441) (159,534) (160,325) (166,162)

Administered total 1,699,006 1,642,604 1,680,236 1,712,442 1,732,095


Departmental appropriation 258,350 270,854 260,226 256,077 256,770

s 74 Retained revenue receipts (b) 6,573 8,534 6,013 7,462 7,462Expenses not requiring appropriation in the Budget year (c)

6,651 11,103 16,154 18,905 18,635


Total expenses for Outcome 2 1,970,580 1,933,095 1,962,629 1,994,886 2,014,962

2017-18 2018-19

Average staffing level (number) 1,456 1,449

Program 2.7: Program Support

Outcome 2 Totals by appropriation type


39

named Aboriginal and Torres Strait Islander Land and Sea Future Fund for the PM&C Portfolio in Budget Paper No. 2.

(b) Program 2.2: Children and Schooling includes the National Partnership on Northern Territory Remote Aboriginal Investment (Non-Government Schools) with payments of $6.536 million to the Northern Territory in 2018-19. Information on the terms and conditions can be found in the National Partnership on Northern Territory Remote Aboriginal Investment at http://www.federalfinancialrelations.gov.au/content/npa/community_services/national-partnership/NT_remote_aboriginal_investment_NP.pdf. Terms and conditions are made under authority from section 7(2) of the COAG Reform Fund Act 2008 and the Intergovernmental Agreement on Federal Financial Relations.

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




40

Table 2.2.2: Performance criteria for Outcome 2 Table 2.2.2 below details the performance criteria for each program associated with Outcome 2. It also summarises how each program is delivered and where 2018-19 Budget measures have created new programs or materially changed existing programs.

Outcome 2 – Improve results for Indigenous Australians including in relation to school attendance, employment and community safety, through delivering services and programmes, and through measures that recognise the special place that Indigenous people hold in this nation. Program 2.1 – Jobs, Land and Economy The objectives of this program are getting adults into work, fostering Indigenous business and assisting Indigenous people to generate economic and social benefits from effective use of their land, particularly in remote areas.

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



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.

• Target of 3 per cent of Commonwealth Government contracts are awarded to Indigenous-owned business.

2018-19 Indigenous Advancement Strategy activities contribute towards increased Indigenous employment, business and economic development.

• At least 70 per cent(b) of funded activities within this program achieved the outcome KPIs(c) specified in funding agreements.

• Target of 3 per cent of Commonwealth Government contracts are awarded to Indigenous-owned business.


Purposes (a) Improving the lives of Indigenous Australians (a) Refers to Purpose 3 in the Corporate Plan 2017-21. (b) In the absence of historical data, it is difficult to assess likely attainment against this performance

measure. The 70 per cent target communicates an expectation that most Indigenous Advancement Strategy (IAS) activities will contribute toward the desired outcomes. While it is desirable for all activities to succeed, this target reflects engagement with the risk of trialling new activities and providers.

(c) Specified IAS activity outcomes for Program 2.1 include improved: School Based Traineeships completion rates; employment outcomes for Indigenous participants; tertiary retention and completion rates for Indigenous students undertaking cadetships; delivery of remote employment services; sustainability of Indigenous businesses; technical and leadership skills of Indigenous Rangers; land management outcomes; and support of Native Title determination.


41

Program 2.2 – Children and Schooling The objectives of this program are getting children to school, particularly in remote Indigenous communities, improving education outcomes and supporting families to give children a good start in life. This program includes measures to improve access to further education.

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



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

• Meeting COAG education targets: 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.

• At least 70 per cent of funded activities within this program met the mandatory KPI on the extent of compliance with Project Agreement terms and conditions.

2018-19 Indigenous Advancement Strategy activities contribute towards increased Indigenous school attendance and improved educational outcomes.

• At least 70 per cent(b) of funded activities within the program achieved the primary outcome KPI(c) specified in funding agreement.


Purposes(a) Improving the lives of Indigenous Australians (a) Refers to Purpose 3 in the Corporate Plan 2017-21. (b) In the absence of historical data, it is difficult to assess likely attainment against this performance

measure. The 70 per cent target communicates an expectation that most IAS activities will contribute toward the desired outcomes. While it is desirable for all activities to succeed, this target reflects engagement with the risk of trialling new activities and providers.

(c) Specified IAS activity outcomes for Program 2.2 include improved: educational environment at home; language and social skills, health and learning outcomes of Indigenous children; student engagement, attendance, retention and attainment; enrolment in vocational and tertiary education amongst Indigenous Australians.


42

Program 2.3 – Safety and Wellbeing The objectives of this program are to ensure that the ordinary law of the land applies to Indigenous communities and ensure Indigenous people enjoy similar levels of physical, emotional and social wellbeing enjoyed by other Australians.

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



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


2018-19 Indigenous Advancement Strategy activities contribute towards reduced levels of offending, violence and substance abuse.

• At least 70 per cent(b) of funded activities within the program achieved the primary outcome KPI(c) specified in funding agreements.




(c) Specified IAS activity outcomes for Program 2.3 include: improved community safety and security; crime prevention; reduced family domestic violence and harm and distress amongst victims of violence; improved victim support and increased understanding of legal rights and available support; increased support of families dealing with critical mental health incidents; reduced anti-social behaviour and improved community engagement amongst Indigenous youth; reduced substance misuse and harm; and improved community awareness of available on demand support.


43

Program 2.4 – Culture and Capability The objectives of this program are supporting Aboriginal and Torres Strait Islander people to maintain their culture, participate equally in the economic and social life of the nation and ensuring that Indigenous organisations are capable of delivering quality services to their clients, particularly in remote areas.

Delivery This program is delivered through Indigenous Advancement Strategy activities aimed at: • Indigenous cultural expression and conservation • increasing participation of Indigenous people in society through healing

and improved capability and leadership • promoting the unique place of Indigenous cultures in Australian society.



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


2018-19 Indigenous Advancement Strategy activities contribute towards increased participation of Indigenous people in Australian society and improved capability of Indigenous organisations.

• At least 70 per cent(b) of funded activities within this program achieved the primary outcome KPI(c) specified in funding agreements.




(c) Specified IAS activity outcomes for Program 2.4 include: increased knowledge and understanding of Aboriginal and Torres Strait Islander cultures, history and practices; improved capability and leadership; promoting, supporting and encouraging reconciliation between Aboriginal and Torres Strait Island peoples and non-Indigenous Australians.


44

Program 2.5 – Remote Australia Strategies The objectives of this program are ensuring strategic investments in local, flexible solutions based on community and Government priorities.

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



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


2018-19 Indigenous Advancement Strategy activities invest in local solutions based on community and government priorities.

• At least 70 per cent(b) of funded activities within this program achieved the primary outcome KPI(c) specified in funding agreements.




(c) Specified IAS activity outcomes for Program 2.5 include: in consultation with community stakeholders, supporting infrastructure, physical asset, housing, training and economic development projects that address remote community need and/or support local innovations.


45

Program 2.6 – Evaluation and Research The objective of this program is to improve the lives of Indigenous Australians by increasing evaluation and research into policies and programs impacting on Indigenous Peoples.

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



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

• Increased research and/or existing research made more usable.


2018-19 • Increased understanding of whether Indigenous Advancement Strategy funding and policies are effective.


• Publication of the Annual Evaluation Work Plan taking into account size, reach and ‘policy risk’ of the program or activity and the strategic need of the evaluation.

• Establishment of an Indigenous Evaluation Committee in 2018 to strengthen the quality, credibility and independence of evaluation activity.

• Establishment of an Indigenous Research Exchange in 2018, to facilitate the improved use of research in policy development and implementation.

2019-20 and beyond • Increased understanding of whether Indigenous Advancement Strategy funding and policies are effective.


• Publication of the Annual Evaluation Work Plan each September taking into account size, reach and ‘policy risk’ of the program or activity and the strategic need of the evaluation.

Purposes(a) Improving the lives of Indigenous Australians (a) Refers to Purpose 3 in the Corporate Plan 2017-21.


46

Program 2.7 – Program Support This program is the departmental support program to the six Indigenous Advancement Strategy programs. The arrangements give effect to the Government’s commitment to reduce red tape and duplication and ensure resources are invested on the ground where they are most needed through the principle of empowering communities.

Delivery Departmental support to the six Indigenous Advancement Strategy programs.



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

• At least 70 per cent of key performance measures in the PM&C Corporate Plan are met or are on track.

2018-19 Efficient department support to the six Indigenous Advancement Strategy programs.

• At least 70 per cent of relevant(b) key performance measures in the PM&C Corporate Plan are met or are on track.


Purposes(a) Improving the lives of Indigenous Australians (a) Refers to Purpose 3 in the Corporate Plan 2017-21. (b) Relevant measures in the Corporate Plan address departmental activities in the following areas: policy

advice, support and coordination, collaboration, and implementation and monitoring programs.


47

SECTION 3: BUDGETED FINANCIAL STATEMENTS

Section 3 presents budgeted financial statements which provide a comprehensive snapshot of entity finances for the 2018-19 budget year, including the impact of budget measures and resourcing on financial statements.

3.1 BUDGETED FINANCIAL STATEMENTS

3.1.1 Differences between entity resourcing and financial statements Departmental The Agency Resource Statement (Table 1.1) provides a consolidated view of all the resources available to PM&C in 2018-19. 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 2018-19 administered expense figures in the Entity Resource Statement (Table 1.1) include the cash appropriation for payments for former Governors-General entitlements. A provision for the total estimated value of these entitlements is recognised in the financial statements at the time each Governor-General is appointed. Accordingly, payment of these entitlements results in a reduction to the provision rather than an operating expense.

The Schedule of Budgeted Income and Expenses Administered on Behalf of Government (Table 3.7) includes non-cash appropriation items including depreciation and amortisation expense, makegood and the provision for former Governors-General entitlements.

3.1.2 Explanatory notes and analysis of budgeted financial statements Departmental Comprehensive Income Statement

Budgeted Revenue from Government in 2018-19 is estimated at $400.8 million. This represents an increase of $19.6 million compared to the estimate for 2018-19 reported in the 2017-18 PBS. This increase is largely attributable to the net impact of the following:

• Additional funding of $23.4 million in 2018-19 from 2018-19 Budget measures;

• Transfers to and from other agencies which have net impact of a decrease of $16.9 million in 2018-19;

• Movement of $11.2 million in funding from 2017-18 into 2018-19; and

• Reduction of $1.8 million in 2018-19 from whole of Government savings for coordinated procurement of Commonwealth property services arrangements.

Budgeted Departmental Balance Sheet


48

PM&C’s net asset position is expected to remain constant in 2018-19 and then decrease over the remaining forward estimates with depreciation outweighing capital investment through the years.

Administered Schedule of Budgeted Income and Expenses Administered on Behalf of Government

The estimated administered expenditure for 2018-19 has increased by $27.6 million since the 2017-18 PBS from $1,632.6 million to $1,660.2 million, which is largely attributable to the net impact of the following:

• increase in payments to corporate entities of $20.4 million due to the transfer of AIATSIS into the portfolio;

• increase in payments to Northern Territory land councils from the Aboriginal Benefit Account of $10.5 million due to higher mining royalties, offset by

• Transfers to and from other agencies which have net impact of a decrease of $4.3 million.

Schedule of Budgeted Assets and Liabilities Administered on Behalf of Government

PM&C’s budgeted administered net assets position in 2018-19 is expected to be $5,251.8 million, which increased by $112.7 million from the estimated actuals in 2017-18 ($5,139.1 million) due to increased investments.

The Government will establish the Aboriginal and Torres Strait Islander Land and Sea Future Fund (ATSILSFF) in the Finance portfolio from 1 July 2018. The balance of the current Aboriginal and Torres Strait Islander Land Account will be transferred from PM&C to the ATSILSFF. A new Indigenous Land Corporation Funding Special Account will be established for PM&C to continue payments to the Indigenous Land Corporation. Following passage of enabling legislation by the Australian Parliament, the new special accounts will be reported in the next budget update. For further information, see the expense measure named Aboriginal and Torres Strait Islander Land and Sea Future Fund for the PM&C Portfolio in Budget Paper No. 2


49

3.2 BUDGETED FINANCIAL STATEMENTS TABLES

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

2017-18 Estimated

actual$'000

2018-19Budget

$'000


$'000


$'000


$'000EXPENSES

Employee benefits 263,595 275,757 271,730 256,242 252,870Suppliers 175,156 141,578 123,820 118,081 123,775Grants 402 402 402 402 402Depreciation and amortisation (a) 12,871 18,763 22,365 25,561 25,291Finance costs 15 13 13 13 13

Total expenses 452,039 436,513 418,330 400,299 402,351LESS: OWN-SOURCE INCOMEOwn-source revenue

Sale of goods and rendering of services 14,442 14,333 14,312 15,761 15,761

Total own-source revenue 14,442 14,333 14,312 15,761 15,761Gains

Other 8,879 2,627 2,046 2,046 2,046Total gains 8,879 2,627 2,046 2,046 2,046Total own-source income 23,321 16,960 16,358 17,807 17,807Net (cost of)/contribution by services (428,718) (419,553) (401,972) (382,492) (384,544)

Revenue from Government 415,847 400,790 379,607 356,931 359,253Surplus/(deficit) attributable to the Australian Government (12,871) (18,763) (22,365) (25,561) (25,291)Total comprehensive income/(loss) attributable to the Australian Government (12,871) (18,763) (22,365) (25,561) (25,291)


50

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

Prepared on Australian Accounting Standards basis. (a) From 2010-11, the Government introduced net cash appropriation arrangements. This involved Bill 1 revenue appropriations for the depreciation/amortisation expenses of non-corporate Commonwealth entities (and select corporate Commonwealth entities).

2017-18$'000

2018-19$'000

2019-20$'000

2020-21$'000

2021-22$'000

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

less depreciation/amortisation expenses previously funded through revenue appropriations (a) 12,871 18,763 22,365 25,561 25,291

Total comprehensive income/(loss) - as per the statement of comprehensive income (12,871) (18,763) (22,365) (25,561) (25,291)


51

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

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

2017-18 Estimated

actual$'000

2018-19Budget

$'000


$'000


$'000


$'000ASSETSFinancial assets

Cash and cash equivalents 2,976 2,976 2,976 2,976 2,976Trade and other receivables 103,581 102,910 101,888 102,479 102,479Other f inancial assets 3,790 3,793 3,793 3,793 3,793

Total financial assets 110,347 109,679 108,657 109,248 109,248 Non-financial assets

Land and buildings 83,949 80,531 73,451 66,513 68,379Property, plant and equipment 47,941 46,700 52,583 50,228 41,679Intangibles 25,167 28,000 23,103 21,439 18,374Other non-financial assets 3,654 5,039 5,039 5,039 5,039

Total non-financial assets 160,711 160,270 154,176 143,219 133,471 Assets held for sale 250 250 250 250 250

Total assets 271,308 270,199 263,083 252,717 242,969 LIABILITIESPayables

Suppliers 25,076 25,082 24,175 24,766 24,766Grant Payables 303 303 303 303 303Other payables 41,489 39,535 39,535 39,535 39,535

Total payables 66,868 64,920 64,013 64,604 64,604 Provisions

Employee provisions 78,199 78,448 78,333 78,333 78,333Other provisions 1,199 1,102 1,102 1,102 1,102

Total provisions 79,398 79,550 79,435 79,435 79,435 Total liabilities 146,266 144,470 143,448 144,039 144,039 Net assets 125,042 125,729 119,635 108,678 98,930 EQUITY*

Contributed equity 193,484 213,269 229,540 244,144 259,687Reserves 6,583 6,583 6,583 6,583 6,583Retained surplus (accumulated deficit) (75,025) (94,123) (116,488) (142,049) (167,340)

Total equity 125,042 125,729 119,635 108,678 98,930


52

Table 3.3: Departmental statement of changes in equity — summary of movement (Budget year 2018-19)

Prepared on Australian Accounting Standards basis.

Retainedearnings

$'000

Assetrevaluation

reserve$'000

Contributedequity/capital$'000

Totalequity

$'000Opening balance as at 1 July 2018

Balance carried forw ard from previous period (75,025) 6,583 193,484 125,042Adjustment for changes in accounting policies - - (1,470) (1,470)

Adjusted opening balance (75,025) 6,583 192,014 123,572Comprehensive income

Other comprehensive income -Surplus/(deficit) for the period (18,763) - - (18,763)

Total comprehensive income (18,763) - - (18,763)Transactions with owners

Distributions to ownersReturns of capital:

Distribution of equity 2,536 - - 2,536Other (2,871) - 818 (2,053)

Contributions by ownersEquity injection - Appropriation - - 8,273 8,273Departmental capital budget (DCB) - - 12,164 12,164

Sub-total transactions with owners (335) - 21,255 20,920Closing balance attributable to the Australian Government (94,123) 6,583 213,269 125,729


53

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


2017-18 Estimated

actual$'000

2018-19Budget

$'000


$'000


$'000


$'000OPERATING ACTIVITIESCash received

Appropriations 434,146 420,832 394,941 372,101 375,014Sale of goods and rendering of services 14,442 14,333 14,312 15,761 15,761

Total cash received 448,588 435,165 409,253 387,862 390,775Cash used

Employees 265,420 275,508 271,845 256,242 252,870Suppliers 138,553 142,214 122,694 115,457 121,742s 74 Retained revenue receipts transferred to OPA 16,942 16,833 14,312 15,761 15,761Other 1,907 2,458 402 402 402

Total cash used 422,822 437,013 409,253 387,862 390,775Net cash from/(used by) operating activities 25,766 (1,848) - - -INVESTING ACTIVITIESCash received

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

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

Purchase of property, plant and equipment and intangibles 48,540 20,437 16,271 14,604 15,543

Total cash used 48,540 20,437 16,271 14,604 15,543Net cash from/(used by) investing activities (46,040) (17,937) (16,271) (14,604) (15,543)FINANCING ACTIVITIESCash received

Contributed equity 20,274 19,785 16,271 14,604 15,543Total cash received 20,274 19,785 16,271 14,604 15,543Net cash from/(used by) financing 20,274 19,785 16,271 14,604 15,543Net increase/(decrease) in cash held - - - - -

Cash and cash equivalents at the beginning of the reporting period 2,976 2,976 2,976 2,976 2,976

Cash and cash equivalents at the end of the reporting period 2,976 2,976 2,976 2,976 2,976


54

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

Prepared on Australian Accounting Standards basis. (a) Includes both current Bill 2 and prior Act 2/4/6 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; − s74 Retained revenue receipts; and − proceeds from the sale of assets.

2017-18 Estimated

actual$'000

2018-19Budget

$'000


$'000


$'000


$'000NEW CAPITAL APPROPRIATIONS

Capital budget - Bill 1 (DCB) 12,311 12,164 14,374 13,364 13,442Equity injections - Bill 2 11,694 8,273 1,897 1,240 2,101

Total new capital appropriations 24,005 20,437 16,271 14,604 15,543Provided for:

Purchase of non-financial assets 24,005 20,437 16,271 14,604 15,543Total items 24,005 20,437 16,271 14,604 15,543PURCHASE OF NON-FINANCIAL ASSETS

Funded by capital appropriations (a)11,694 8,273 1,897 1,240 2,101

Funded by capital appropriation - DCB (b) 12,311 12,164 14,374 13,364 13,442Funded internally from departmental resources (c) 24,535 - - - -

TOTAL 48,540 20,437 16,271 14,604 15,543RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE Total purchases 48,540 20,437 16,271 14,604 15,543Total cash used to acquire assets 48,540 20,437 16,271 14,604 15,543


56

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

Prepared on Australian Accounting Standards basis. Note: The Government will establish the Aboriginal and Torres Strait Islander Land and Sea Future Fund (ATSILSFF) in the Finance portfolio from 1 July 2018. The balance of the current Aboriginal and Torres Strait Islander Land Account will be transferred from the Department of PM&C to the ATSILSFF. A new Indigenous Land Corporation Funding Special Account will be established for PM&C to continue payments to the Indigenous Land Corporation. Following passage of enabling legislation by the Australian Parliament, the new special accounts will be reported in the next budget update. For further information, see the expense measure named Aboriginal and Torres Strait Islander Land and Sea Future Fund for the PM&C Portfolio in Budget Paper No. 2.

2017-18 Estimated

actual$'000

2018-19Budget

$'000


$'000


$'000


$'000EXPENSES

Employee benefits 918 918 918 938 938Suppliers 72,885 52,084 72,190 71,200 70,796Subsidies 1,826 1,688 1,931 1,931 1,931Grants 1,335,455 1,312,337 1,321,012 1,352,635 1,365,299Depreciation and amortisation 248 349 349 349 349Finance costs 348 324 384 359 335Payments to corporate entities 94,855 111,105 110,951 110,535 110,910Other expenses 220,763 181,429 186,750 188,974 196,101

Total expenses administered on behalf of Government 1,727,298 1,660,234 1,694,485 1,726,921 1,746,659LESS:OWN-SOURCE INCOMENon-taxation revenue

Interest 81,867 82,023 82,034 81,997 81,669Other revenue 13,751 13,632 13,092 12,446 11,718

Total non-taxation revenue 95,618 95,655 95,126 94,443 93,387Total own-source revenue administeredon behalf of Government

95,618 95,655 95,126 94,443 93,387

Total own-sourced income administeredon behalf of Government

95,618 95,655 95,126 94,443 93,387

Net (cost of)/contribution by services

(1,631,680) (1,564,579) (1,599,359) (1,632,478) (1,653,272)

Total comprehensive income/(loss) (1,631,680) (1,564,579) (1,599,359) (1,632,478) (1,653,272)


57

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

Prepared on Australian Accounting Standards basis. Note: The Government will establish the Aboriginal and Torres Strait Islander Land and Sea Future Fund (ATSILSFF) in the Finance portfolio from 1 July 2018. The balance of the current Aboriginal and Torres Strait Islander Land Account will be transferred from PM&C to the ATSILSFF. A new Indigenous Land Corporation Funding Special Account will be established for PM&C to continue payments to the Indigenous Land Corporation. Following passage of enabling legislation by the Australian Parliament, the new special accounts will be reported in the next budget update. For further information, see the expense measure named Aboriginal and Torres Strait Islander Land and Sea Future Fund for the PM&C Portfolio in Budget Paper No. 2.

2017-18 Estimated

actual$'000

2018-19Budget

$'000


$'000


$'000


$'000ASSETS Financial assets

Cash and cash equivalents 34,699 34,699 34,699 34,699 34,699Trade and other receivables 109,784 105,680 91,758 78,415 66,017Investments 5,002,099 5,120,770 5,246,564 5,344,579 5,485,740

Total financial assets 5,146,582 5,261,149 5,373,021 5,457,693 5,586,456Non-financial assets

Land and buildings 49,694 49,489 49,284 49,079 48,874Property, plant and equipment 1,187 2,129 3,409 4,801 6,329Other non-financial assets 2,511 1,827 1,827 1,827 1,827

Total non-financial assets 53,392 53,445 54,520 55,707 57,030Total assets administered on behalf of Government 5,199,974 5,314,594 5,427,541 5,513,400 5,643,486LIABILITIESPayables

Suppliers 6,548 6,497 6,497 6,497 6,497Grants 40,791 40,791 40,791 40,791 40,791Other payables 1,255 782 782 782 782

Total payables 48,594 48,070 48,070 48,070 48,070Provisions

Employee provisions 260 260 260 260 260Other provisions 12,033 14,425 13,411 12,459 11,569

Total provisions 12,293 14,685 13,671 12,719 11,829Total liabilities administered on behalf of Government 60,887 62,755 61,741 60,789 59,899Net assets/(liabilities) 5,139,087 5,251,839 5,365,800 5,452,611 5,583,587


58

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

Prepared on Australian Accounting Standards basis. Note: The Government will establish the Aboriginal and Torres Strait Islander Land and Sea Future Fund (ATSILSFF) in the Finance portfolio from 1 July 2018. The balance of the current Aboriginal and Torres Strait Islander Land Account will be transferred from PM&C to the ATSILSFF. A new Indigenous Land Corporation Funding Special Account will be established for PM&C to continue payments to the Indigenous Land Corporation. Following passage of enabling legislation by the Australian Parliament, the new special accounts will be reported in the next budget update. For further information, see the expense measure named Aboriginal and Torres Strait Islander Land and Sea Future Fund for the PM&C Portfolio in Budget Paper No. 2.

2017-18 Estimated

actual$'000

2018-19Budget

$'000


$'000


$'000



Other 10,744 11,198 10,787 10,787 66,889Total cash received 10,744 11,198 10,787 10,787 66,889Cash used

Grant 1,336,455 1,312,337 1,321,012 1,352,635 1,365,299Subsidies paid 1,826 1,688 1,931 1,931 1,931Suppliers 50,625 48,011 68,065 71,200 70,796Employees 918 918 918 938 938Payments to corporate entities 94,855 111,105 110,951 110,535 110,910Other 222,524 179,150 188,148 190,285 194,850

Total cash used 1,707,203 1,653,209 1,691,025 1,727,524 1,744,724Net cash from/(used by) operating activities (1,696,459) (1,642,011) (1,680,238) (1,716,737) (1,677,835)INVESTING ACTIVITIESCash received

Investments 2,696,110 2,833,448 2,890,117 2,947,920 3,006,878Repayments of advances and loans 2,418 7,570 10,376 11,342 12,398Interest on Investments 70,214 74,656 76,149 77,672 79,226

Total cash received 2,768,742 2,915,675 2,976,643 3,036,934 3,098,502Cash used

Purchase of property, plant and equipment and intangibles 253 1,086 1,424 1,536 1,672Corporate entity investments 23,850 24,913 22,924 22,924 22,924Investments 2,884,857 2,894,089 2,955,836 3,005,096 3,121,739

Total cash used 2,908,960 2,920,088 2,980,184 3,029,556 3,146,335Net cash from/(used by) investing activities (140,218) (4,413) (3,541) 7,378 (47,833)FINANCING ACTIVITIESCash received

Contributed equity 253 1,086 1,424 1,536 1,670Net cash from/(used by) financing activities 253 1,086 1,424 1,536 1,670Net increase/(decrease) in cash held (1,836,424) (1,645,338) (1,682,355) (1,707,823) (1,723,998)


59

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

Prepared on Australian Accounting Standards basis. Note: The Government will establish the Aboriginal and Torres Strait Islander Land and Sea Future Fund (ATSILSFF) in the Finance portfolio from 1 July 2018. The balance of the current Aboriginal and Torres Strait Islander Land Account will be transferred from PM&C to the ATSILSFF. A new Indigenous Land Corporation Funding Special Account will be established for PM&C to continue payments to the Indigenous Land Corporation. Following passage of enabling legislation by the Australian Parliament, the new special accounts will be reported in the next budget update. For further information, see the expense measure named Aboriginal and Torres Strait Islander Land and Sea Future Fund for PM&C Portfolio in Budget Paper No. 2.

2017-18 Estimated

actual$'000

2018-19Budget

$'000


$'000


$'000


$'000Cash and cash equivalents at beginning of reporting period 36,072 34,699 34,699 34,699 34,699

Cash from Official Public Account for:

- Appropriations 1,849,483 1,662,099 1,707,870 1,735,475 1,746,023Total cash from Official Public Account 1,849,483 1,662,099 1,707,870 1,735,475 1,746,023Cash to Official Public Account for:

- Appropriations 14,432 16,761 25,515 27,652 22,025Total cash to Official Public Account 14,432 16,761 25,515 27,652 22,025

Cash and cash equivalents at end of reporting period 34,699 34,699 34,699 34,699 34,699


60

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

Prepared on Australian Accounting Standards basis (a) Does not include annual finance lease costs. Includes purchases from current and previous years' administered capital budgets (ACBs).

2017-18 Estimated

actual$'000

2018-19Budget

$'000


$'000


$'000



Capital budget - Bill 1 (ACB) 253 1,086 1,424 1,536 1,672Total new capital appropriations 253 1,086 1,424 1,536 1,672Provided for:

Purchase of non-financial assets 253 1,086 1,424 1,536 1,672Total items 253 1,086 1,424 1,536 1,672PURCHASE OF NON-FINANCIAL

ASSETSFunded by capital appropriation - ACB (a) 253 1,086 1,424 1,536 1,672

TOTAL 253 1,086 1,424 1,536 1,672RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE

Total accrual purchases 253 1,086 1,424 1,536 1,672Total cash used to acquire assets 253 1,086 1,424 1,536 1,672


61

Table 3.11: Statement of administered asset movements (Budget year 2018-19)

Prepared on Australian Accounting Standards basis (a) ‘Appropriation ordinary annual services’ refers to funding provided through Appropriation Bill (No. 1)

2018-19 for depreciation/amortisation expenses, DCBs or other operational expenses.

Land

$'000

Buildings

$'000

Otherproperty,plant and

equipment$'000

Total

$'000As at 1 July 2018

Gross book value 44,000 5,811 2,340 52,151Accumulated depreciation/amortisation and impairment - (117) (1,153) (1,270)

Opening net book balance 44,000 5,694 1,187 50,881CAPITAL ASSET ADDITIONSEstimated expenditure on new or replacement assets

By purchase - appropriation ordinary annual services (a) - - 1,086 1,086

Total additions - - 1,086 1,086Other movements

Depreciation/amortisation expense - (205) (144) (349)Other movements - - - -

Total other movements - (205) (144) (349)As at 30 June 2019

Gross book value 44,000 5,811 3,426 53,237Accumulated depreciation/amortisation - (322) (1,297) (1,619)

Closing net book balance 44,000 5,489 2,129 51,618

63

ABORIGINAL HOSTELS LIMITED


65



SECTION 2: OUTCOMES AND PLANNED PERFORMANCE ................................... 71 2.1 Budgeted expenses and performance for Outcome 1 .................................... 72


67




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 2018-19 AHL will continue to:

• be an integral provider of 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

• operate within available resources

• respond to need through evidence based business planning

• ensure all hostels are fit for purpose

• pursue best practice in workplace health and safety.

AHL Budget Statements

68


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.

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’ tables in Section 2 and the financial statements in Section 3 are presented on an accrual basis.


69

Table 1.1: AHL resource statement — Budget estimates for 2018-19 as at Budget May 2018

Prepared on a resourcing (i.e. 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) 2018-19. (b) Funding provided by the portfolio department that is not specified within the Annual Appropriation Bills as

payment to AHL relates to the operations of the Kardu Darrikardu Numida Hostel in Wadeye, Northern Territory.

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

(d) The increase in ASL in 2018-19 is due to the implementation of necessary measures in 2017-18 to meet savings targets. The lower ASL in 2017-18 is not sustainable and the increase in staffing levels in 2018-19 is required to provide coverage across AHL's corporate and service delivery functions.

(e) AHL is not directly appropriated as it is a Commonwealth company. (f) Appropriations are made to non-corporate Commonwealth entity PM&C, which are then paid to AHL and

are considered 'departmental' for all purposes.

2017-18 Estimated

actual$'000

2018-19 Estimate

$'000Opening balance/cash reserves at 1 July 25,996 29,753Funds from Government

Annual appropriations - ordinary annual services (a)

Outcome 1 36,563 36,323Amounts received from related entities

Amounts from portfolio department (b)

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

Northern Territory Government 2,863 2,975Total amounts received from related entities 5,263 5,375Total funds from Government 41,826 41,698Funds from other sources

Interest 516 516Sale of goods and services 15,356 15,138Other 59 58

Total funds from other sources 15,931 15,712Total net resourcing for AHL 83,753 87,163

2017-18 2018-19Average staffing level (number) (d) 332 386


70

1.3 BUDGET MEASURES

AHL has no budget measures in the 2018-19 Budget.


71




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.

http://www.ahl.gov.au/?q=our-organisation

http://www.ahl.gov.au/?q=annual-report


72


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.


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

2017-18 Estimated

actual$'000

2018-19Budget

$'000


$'000


$'000


$'000

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

36,563 36,323 36,426 36,562 36,667

Payment from related entities 5,263 5,375 5,434 5,525 5,619Revenues from other independent sources

15,931 15,712 15,692 16,281 16,259

Total expenses for Program 1.1 53,437 57,410 57,552 58,368 58,5452017-18 2018-19

Average staffing level (number) 332 386

Program 1.1: Company Operated Hostels

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


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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 Straits Islander people.


Year Performance criteria (a) Targets

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

70%

2018-19 Occupancy level as a percentage of resident bed nights available per annum.

70%


Purposes (a) To provide culturally safe, fit-for-purpose, affordable accommodation for Indigenous Australians who need to be away from home to access employment opportunities, and health, education and other services.

(a) Refers to updated purpose that will be reflected in the 2017-2021 Corporate Plan.


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Section 3: Budgeted financial statements



3.1.1 Differences between entity resourcing and financial statements

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 statements Comprehensive Income Statement

The increase in employee benefits in 2018-19 and out years from 2017-18 is due to AHL implementing necessary measures in 2017-18 to meet savings targets. As AHL’s financial position continues to improve, recruitment is likely to rise in 2018-19 in line with anticipated business requirements.


The increase in property, plant and equipment in 2018-19 and the forward years is due to an ongoing reinvestment in maintaining appropriate standards of fixtures and fittings in AHL’s existing hostels with the potential for an increased hostel network footprint.

The increase in employee provisions in 2018-19 and the forward years is mainly due to the accumulation of AHL employees’ long service leave provision.


75




2017-18 Estimated

actual$'000

2018-19Budget

$'000


$'000


$'000


$'000EXPENSES

Employee benefits 28,603 32,502 32,827 32,847 32,867Suppliers 20,147 20,193 20,010 20,806 20,963Depreciation and amortisation 4,089 4,089 4,089 4,089 4,089Write-dow n and impairment of assets 148 176 176 176 176Other expenses 450 450 450 450 450


Sale of goods and rendering of services 15,356 15,138 15,138 15,778 15,778Interest 516 516 496 445 423Other 5,322 5,433 5,492 5,583 5,677

Total own-source revenue 21,194 21,087 21,126 21,806 21,878Total own-source income 21,194 21,087 21,126 21,806 21,878Net (cost of)/contribution by services (32,243) (36,323) (36,426) (36,562) (36,667)

Revenue from Government 36,563 36,323 36,426 36,562 36,667Total comprehensive income/(loss) attributable to the Australian Government 4,320 - - - -


76



2017-18 Estimated

actual$'000

2018-19Budget

$'000


$'000


$'000



Cash and cash equivalents 29,753 30,626 27,961 25,256 26,011Trade and other receivables 471 471 471 471 471


Land and buildings 122,550 120,801 122,552 124,303 122,554Property, plant and equipment 2,590 3,740 4,890 6,040 7,190Intangibles 195 270 345 420 495Other non-financial assets 1,454 1,439 1,424 1,409 1,394

Total non-financial assets 126,789 126,250 129,211 132,172 131,633 Total assets 157,013 157,347 157,643 157,899 158,115 LIABILITIESPayables

Suppliers 1,541 1,562 1,562 1,542 1,501Other payables 417 374 331 287 244


Employee provisions 3,631 3,987 4,326 4,646 4,946Total liabilities 5,589 5,923 6,219 6,475 6,691 Net assets 151,424 151,424 151,424 151,424 151,424 EQUITY*Parent entity interest

Contributed equity 94,243 94,243 94,243 94,243 94,243Reserves 56,165 56,165 56,165 56,165 56,165Retained surplus (accumulated deficit)

1,016 1,016 1,016 1,016 1,016

Total parent entity interest 151,424 151,424 151,424 151,424 151,424Total equity 151,424 151,424 151,424 151,424 151,424


77



Retainedearnings

$'000

Assetrevaluation

reserve$'000


Totalequity


Balance carried forw ard from previous period

1,016 56,165 94,243 151,424

Adjusted opening balance - - - -Comprehensive income

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

of w hich:Attributable to the Australian Government

- -

Estimated closing balance as at 30 June 2019 1,016 56,165 94,243 151,424Closing balance attributable to the Australian Government 1,016 56,165 94,243 151,424


78



2017-18 Estimated

actual$'000

2018-19Budget

$'000


$'000


$'000



Receipts from Government 41,826 41,698 41,860 42,087 42,286Sale of goods and rendering of services

16,109 15,500 15,506 16,154 16,164

Interest 516 516 496 445 423Net GST received 1,352 1,345 1,679 1,729 1,381Other 118 58 58 58 58


Employees 29,600 32,146 32,488 32,527 32,567Suppliers 21,999 22,055 22,233 23,107 22,947Other 565 43 43 44 43

Total cash used 52,164 54,244 54,764 55,678 55,557Net cash from/(used by) operating activities 7,757 4,873 4,835 4,795 4,755INVESTING ACTIVITIESCash receivedTotal cash received - - - - -Cash used

Purchase of property, plant and equipment and intangibles

4,000 4,000 7,500 7,500 4,000

Total cash used 4,000 4,000 7,500 7,500 4,000Net cash from/(used by) investing activities (4,000) (4,000) (7,500) (7,500) (4,000)FINANCING ACTIVITIESNet cash from/(used by) financing activities - - - - -Net increase/(decrease) in cash held 3,757 873 (2,665) (2,705) 755

Cash and cash equivalents at the beginning of the reporting period

25,996 29,753 30,626 27,961 25,256



79


(a) Includes the following sources of funding: - current Bill 1 and prior year Act 1/3/5 appropriations (excluding amounts from the DCB); - donations and contributions; - gifts; - internally developed assets; - s 74 Retained revenue receipts; - proceeds from the sale of assets. The increase in 2019-20 and 2020-21 relates to internally generated funds for investment in purpose built hostel accommodation in areas of unmet demand. Prepared on Australian Accounting Standards basis.

2017-18 Estimated

actual$'000

2018-19Budget

$'000


$'000


$'000


$'000PURCHASE OF NON-FINANCIAL ASSETS

Funded internally from departmental resources (a) 4,000 4,000 7,500 7,500 4,000

TOTAL 4,000 4,000 7,500 7,500 4,000RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE

Total purchases 4,000 4,000 7,500 7,500 4,000Total cash used to acquire assets 4,000 4,000 7,500 7,500 4,000


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Table 3.6: Statement of asset movements (Budget year 2018-19)

(a) 'Appropriation ordinary annual services' refers to funding provided through Appropriation Bill (No.1) 2018-19 for depreciation/amortisation expenses, DCBs or other operational expenses. Prepared on Australian Accounting Standards basis.

Land

$'000

Buildings

$'000


equipment$'000

Heritageand

cultural

$'000

Computersoftw are

andintangibles

$'000

Total

$'000As at 1 July 2018

Gross book value 38,570 94,109 5,142 1,499 667 139,987Accumulated depreciation/amortisation and impairment - (10,129) (2,552) (45) (472) (13,198)

Opening net book balance 38,570 83,980 2,590 1,454 195 126,789Capital asset additions

Estimated expenditure on new or replacement assetsBy purchase - appropriation ordinary annual services (a) - 2,124 1,762 - 114 4,000Total additions - 2,124 1,762 - 114 4,000Other movementsDepreciation/amortisation expense - (3,423) (612) (15) (39) (4,089)Disposals (450) (450)Total other movements - (3,873) (612) (15) (39) (4,539)

As at 30 June 2019Gross book value 38,570 95,783 6,904 1,499 781 143,537Accumulated depreciation/ amortisation and impairment - (13,552) (3,164) (60) (511) (17,287)

Closing net book balance 38,570 82,231 3,740 1,439 270 126,250

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AUSTRALIAN INSTITUTE OF ABORIGINAL AND TORRES STRAIT

ISLANDER STUDIES


83

AUSTRALIAN INSTITUTE OF ABORIGINAL AND TORRES STRAIT ISLANDER STUDIES


SECTION 2: OUTCOMES AND PLANNED PERFORMANCE ................................... 90 2.1 Budgeted expenses and performance for Outcome 1 .................................... 91


AIATSIS Budget Statements

85

AUSTRALIAN INSTITUTE OF ABORIGINAL AND TORRES STRAIT ISLANDER STUDIES



The Australian Institute of Aboriginal and Torres Strait Islander Studies (AIATSIS) is an independent statutory authority created by the Australian Institute of Aboriginal and Torres Strait Islander Studies Act 1989. The purpose of AIATSIS, as a national collecting institution and publicly funded research agency which creates unique research infrastructure for Australia, is to build pathways for the knowledge of Aboriginal and Torres Strait Islander people to grow and be shared. This purpose contributes to a broader ideal for Indigenous peoples’ knowledge and culture to be recognised, respected and valued.

AIATSIS’ Corporate Plan 2017-2021 sets out the strategic goals that will drive AIATSIS’ activities, including:

• ensuring our collections are safe, accessible, valued and growing

• providing leadership in Indigenous research, and ethical engagement in research, collecting and publishing

• strengthening understanding of Aboriginal and Torres Strait Islander culture and heritage

• promoting and sharing Aboriginal and Torres Strait Islander culture and heritage by

- connecting with community

- connecting with the nation

• providing advice to the Commonwealth on the situation and status of Aboriginal and Torres Strait Islander culture and heritage

• ensuring strong governance and resilient organisation through leadership, innovation and partnership.

Priorities for AIATSIS in the coming year include:

Our collections: Containing over one million items including moving images, photos, art, artefacts and manuscripts, the national Indigenous collection has been independently assessed as the most significant collection of Aboriginal and Torres Strait Islander materials in the world. The majority of the collection consists of unique materials—stories, language, songs ceremony and traditions—that would be lost without the nation’s ongoing investment in collection and preservation through


86

AIATSIS. It is invaluable not only to Indigenous peoples and communities, but to the nation. The Government remains committed to the investment to strengthen AIATSIS’ capacity to preserve (including digitise), manage and share this collection.

Strategic research: AIATSIS is developing a long term strategic research agenda in Indigenous research and will continue to seek partnerships and collaborations which not only open external funding opportunities but also align with the leadership role that is clearly articulated in its legislation. The research agenda will continue to develop through 2018–2019 and will be focused around engagement of Indigenous peoples in research, including cultural competency, ethics and impact, and contribute to research policy and strategy nationally. AIATSIS will continue to provide sectorial leadership and engagement in areas of expertise: governance, native title, and livelihoods, languages, family history and collections based research.

Strengthen understanding of culture and heritage: AIATSIS will maintain and enhance its efforts to build partnerships and collaborations across the full spectrum of government, industry, academic and community stakeholders. A particular focus will be on collaborations that contribute to increased participation and success of Indigenous people at university and in building a growing and vibrant Indigenous academic and public sector workforce. This includes building on the whole-of-government benefits generated by the AIATSIS CORE Cultural Learning online foundation program, supporting implementation by government agencies, as well extending reach to the education and other sectors.

Promoting and sharing culture and heritage: By reinvigorating our public programs and activities, creating maximum value in our publications of material related to Indigenous Australia, and continuing to refine our online presence, AIATSIS will continue to meet the needs of a wide range of existing clients. AIATSIS will also engage and attract new audiences, providing experiences which share stories and knowledge of Aboriginal Torres Strait Islander culture and heritage. AIATSIS’ online presence will continue to build its authoritative gateway to Indigenous Australia as well as provide access to the national Indigenous collections, research outputs and corporate information.

Providing advice: AIATSIS occupies a unique place at the nexus between the academic and cultural sectors, Government and Indigenous communities. AIATSIS will use its position to support the actions of others to preserve, protect and promote Australia’s Indigenous heritage, through language programs, curriculum development and information management platforms as well as advice on research and archival practice. AIATSIS will implement strategies that augment AIATSIS’ capacity to provide sound advice to Government and others in relation to the situation and status of Aboriginal and Torres Strait Islander culture and heritage, and to enhance its leadership role in Indigenous engagement, research and collections.

Governance and resilience: To support its work, AIATSIS will continue to pursue best practice governance, particularly in the areas of financial performance, resource


87

management and staff development. This will be underpinned by the internal audit program and the AIATSIS Council Audit and Assurance sub-committee.

AIATSIS will build on its reputation and standing within Indigenous Communities through on-going respectful engagement that clearly demonstrates the value that AIATSIS places on Indigenous communities, their wellbeing and resilience.

AIATSIS will maximise its efforts through professional partnerships, collaborations and joint projects, with a strong focus on Indigenous community involvement.


88


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




Table 1.1: AIATSIS resource statement — Budget estimates for 2018-19 as at Budget May 2018

2017-18 Estimated

actual $'000

2018-19 Estimate

$'000

Opening balance/cash reserves at 1 July 19,135 17,307 Funds from Government

Annual appropriations - ordinary annual services (a) Outcome 1 19,493 20,388

Annual appropriations - other services (b) Equity injection 74 74

Total annual appropriations 19,567 20,462 Total funds from Government 19,567 20,462 Funds from other sources

Interest 450 450 Sale of goods and services 797 797 Other 4,713 4,713

Total funds from other sources 5,960 5,960 Total net resourcing for AIATSIS 44,662 43,729 2017-18 2018-19 Average staffing level (number) 121 121

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) 2018-19. (b) Appropriation Bill (No.2) 2018-19.


89

1.3 BUDGET MEASURES

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

Table 1.2: AIATSIS 2018-19 Budget measures Part 1: Measures announced since the 2017-18 Mid-Year Economic and Fiscal Outlook (MYEFO)

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 ‘250th Anniversary of James Cook’s Voyage – commemoration’ is the

Department of Communications and the Arts. The full measure description and package details appear in Budget Paper No. 2 under the Communication and Arts portfolio. This measure provides funding to AIATSIS of $1 million in 2018-19 and $1 million 2019-20. Provision for this funding was included in the Contingency Reserve.

Program2017-18

$'0002018-19

$'0002019-20

$'0002020-21

$'0002021-22

$'000Expense measures250th Anniversary of James Cook's Voyage - commemoration (a) 1.1

Departmental expenses - - - - -Total - - - - -Total expense measures

Departmental - - - - -Total - - - - -


90




Note:


The most recent corporate plan for AIATSIS can be found at: http://aiatsis.gov.au/sites/default/files/docs/corporate_plan_aiatsis_2017_2021.pdf.

The most recent annual performance statement can be found at: http://aiatsis.gov.au/publications/products/aiatsis-annual-report-2016-2017.


91


Outcome 1: Further understanding of Australian Indigenous cultures, past and present through undertaking and publishing research, and providing access to print and audiovisual collections.


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


2017-18 Estimated

actual$'000

2018-19Budget

$'000


$'000


$'000


$'000


19,493 20,388 20,390 19,502 19,597

Revenues from other independent sources

5,960 5,960 5,960 5,960 5,960

Total expenses for Program 1.1 25,453 26,348 26,350 25,462 25,557Total expenses for Outcome 1 25,453 26,348 26,350 25,462 25,557

2017-18 2018-19Average staffing level (number) 121 121

Program 1.1: Australian Institute of Aboriginal and Torres Strait Islander Studies


92


Outcome 1 – Further understanding of Australian Indigenous cultures, past and present through undertaking and publishing research, and providing access to print and audiovisual collections. Delivery

• Preservation of, and making discoverable, the national collection of cultural materials relevant to Aboriginal and Torres Strait Islander peoples

• Access to the collections, including advice and support for clients and copies (where appropriate) of materials requested

• Assessment and accession of new material into the collections.

• Ethics and protocols for research, publishing and other activities relating to collections, and related to Aboriginal and Torres Strait Islander peoples

• Research projects on matters of importance to Aboriginal and Torres Strait Islander peoples

• Research and consultancy services

• Advice on policy and practice in areas of interest to Aboriginal and Torres Strait Islander peoples

• Engage with Aboriginal and Torres Strait Islander communities through research, publishing and collections activities

• Harness digital technology to communicate with quality online content and resources about Aboriginal and Torres Strait Islander peoples

• Enhance community access to collections online and through a public program

• Use technology to link communities to collections

• Quality publications for trade and a variety of open access formats.



2017-18 Ability to accept new material that is offered to and accepted into the collection, the rate at which it is preserved and made discoverable and accessible.

Percentage increase in the rate at which material is accepted into the collection: +2% Percentage increase in the rate at which the collection is made discoverable: +1.5% Percentage increase in the rate at which the collection is accessed: +10%


93

Outcome 1 – Further understanding of Australian Indigenous cultures, past and present through undertaking and publishing research, and providing access to print and audiovisual collections. Preservation of Aboriginal and Torres Strait

Islander cultural heritage to enable all Australians to appropriately access and experience knowledge of Aboriginal and Torres Strait Islander cultures, traditions, languages and stories, past and present.

Percentage increase in the rate of preservation of the collection: +5%

Delivery of contracted outputs and outcomes to actively strengthen, preserve, and renew Indigenous knowledge, promote understanding of Indigenous peoples and contribute positively to the wellbeing of Aboriginal and Torres Strait Islander peoples

100% contracts completed. Monitor levels of quality, and efficiency: • Number and value of

research publications, grants and other outputs: 10% increase in numbers, maintain ratio

• Number of staff publications (& per researcher)

• Number of staff presentations (5 per researcher)

• Size of grants and research contracts

• Revenue from research activities (ratio income to investment).

Monitor levels of engagement and impact through: • Number and value of

research partnerships and applied research: 2% increase

• Number and value of research impact assessments: Evaluations

• Reach and take-up of standards and guidance on best practice in research, engagement, publication and collections: 100% increase

50% increase in external take-up of ethics clearances.

Target groups include: Aboriginal and Torres Strait Islander peoples and communities; non-Indigenous Australians; academic researchers; students; governments, industry; practitioners; people world-wide who are

Number and value of publications: • 6 books published

($243,000 revenue)


94

Outcome 1 – Further understanding of Australian Indigenous cultures, past and present through undertaking and publishing research, and providing access to print and audiovisual collections.

interested in Aboriginal and Torres Strait Islander culture and heritage. This program enables all Australians to learn about and experience knowledge of Aboriginal and Torres Strait Islander cultures, traditions, languages and stories, past and present.

• journal editions ($20,000 revenue)

• 5 other publications. Monitor the reach and impact of communication and community engagement activity through: • Media coverage • Website and social media

reach and activity • Reach:- estimated actuals • 35 media releases, alerts

and web news stories • 10 AIATSIS e-newsletters • 10 Members e-newsletters • 35 interviews by media

outlets with AIATSIS staff or affiliates

• 26 requests for content/information by media completed

• Percentage increase in website traffic +10%

• % increase in Indigenous author contributions +5%

• Train and develop web publishers and editors 10

• Percentage increase in Indigenous members +8%

• Percentage increase in members +5%

• Percentage increase in partnerships +5%

• Percentage increase in value of partnerships +5%

Percentage increase in value of a public program +5%.

2018-19 As per 2017-18 As per 2017-18

2019-20 and beyond As per 2018-19 As per 2018-19

Purposes (b) Together with Aboriginal and Torres Strait Islander peoples government and industry, AIATSIS works to: • strengthen and promote knowledge and understanding of Indigenous

Australia, past, present and future, through developing, preserving and providing access to our national collection of Aboriginal and Torres Strait Islander culture and heritage.

• undertake high quality ethical and impact driven research in areas of strategic priority. AIATSIS produces high quality research outputs and


95

Outcome 1 – Further understanding of Australian Indigenous cultures, past and present through undertaking and publishing research, and providing access to print and audiovisual collections.

provides leadership in the practice of ethical research, publishing, engagement and collection; and

• build knowledge and understanding of Indigenous Australia, through curated and relevant public programs and publications, engaging the public with rich and informative digital content and sharing the collection and AIATSIS research online.


96





There are no material variances between the entity resources table and the budgeted financial statements.

3.1.2 Explanatory notes and analysis of budgeted financial statements Budgeted departmental income statements

The statement shows the estimated net cost of services for AIATSIS.

The budgeted net cost of services to AIATSIS for delivering its programs in 2018–19 is $20.4 million.

Expenses

Total departmental expenses budgeted for in 2018–19 are $26.3 million, comprising $10.7 million for employee expenses, $14.4 million for suppliers and $1.2 million for depreciation and amortisation.

Income

Total departmental own-source income budgeted for in 2018-19 is $6.0 million, comprising $0.8 million from sale of goods and rendering of services, $0.5 million from interest and $4.7 million from other sources.

Budgeted departmental balance sheet

The statement shows the estimated end of year position for departmental assets and liabilities.

Assets

Total departmental assets budgeted for 2018-19 are $45.4 million, comprising $27.8 million in non-financial assets ($12.8 million Land and Building, $14.6 million Property Plant and Equipment and $0.4 million Other) and $17.6 million in financial assets.

Liabilities

Total departmental liabilities budgeted for in 2018–19 are $7.4 million, comprising $3.2 million in provisions and $4.2 million in payables.


97

Budgeted departmental statement of cash flows

The statement provides information on estimates of the extent and nature of cash flows by categorising the expected cash flows against operating, investing and financing activities.

Statement of changes in equity – summary of movement

The statement shows the expected movement of equity during the budget year.


98



2017-18 Estimated

actual $'000

2018-19 Budget

$'000

2019-20 Forward estimate

$'000


$'000


$'000

EXPENSES Employee benefits 10,822 10,746 10,680 10,792 10,887 Suppliers 13,435 14,406 14,474 13,474 13,474 Depreciation and amortisation 1,196 1,196 1,196 1,196 1,196

Total expenses 25,453 26,348 26,350 25,462 25,557 LESS: OWN-SOURCE INCOME Own-source revenue

Sale of goods and rendering of services 797 797 797 797 797

Interest 450 450 450 450 450 Other 4,713 4,713 4,713 4,713 4,713

Total own-source revenue 5,960 5,960 5,960 5,960 5,960 Total own-source income 5,960 5,960 5,960 5,960 5,960 Net (cost of)/contribution by services (19,493) (20,388) (20,390) (19,502) (19,597)

Revenue from Government 19,493 20,388 20,390 19,502 19,597

Surplus/(deficit) attributable to the Australian Government - - - - - Total comprehensive income/(loss) - - - - -

Total comprehensive income/(loss) attributable to the Australian Government - - - - -



99

Table 3.2: Budgeted departmental balance sheet (as at 30 June) 2017-18

Estimated actual $'000

2018-19 Budget

$'000


$'000


$'000


$'000

ASSETS

Financial assets

Cash and cash equivalents 5,028 5,028 5,028 5,028 5,028 Trade and other receivables 556 556 556 556 556 Other investments 12,279 11,975 11,671 11,367 11,063

Total financial assets 17,863

17,559

17,255

16,951

16,647

Non-financial assets

Land and buildings 12,981 12,768 12,555 12,342 12,129 Property, plant and equipment 13,956 14,581 15,206 15,831 16,456 Intangibles 146 112 78 44 10 Inventories 215 215 215 215 215 Other non-financial assets 152 152 152 152 152

Total non-financial assets 27,450

27,828

28,206

28,584

28,962

Total assets 45,313

45,387

45,461

45,535

45,609

LIABILITIES

Payables

Suppliers 2,118 2,118 2,118 2,118 2,118 Other payables 2,030 2,030 2,030 2,030 2,030

Total payables 4,148

4,148

4,148

4,148

4,148

Provisions

Employee provisions 3,230 3,230 3,230 3,230 3,230

Total provisions 3,230

3,230

3,230

3,230

3,230

Total liabilities 7,378

7,378

7,378

7,378

7,378

Net assets 37,935

38,009

38,083

38,157

38,231

EQUITY*

Parent entity interest

Contributed equity 3,835 3,909 3,983 4,057 4,131 Reserves 13,971 13,971 13,971 13,971 13,971 Retained surplus (accumulated

deficit) 20,129 20,129 20,129 20,129 20,129

Total parent entity interest 37,935 38,009 38,083 38,157 38,231 Total equity 37,935 38,009 38,083 38,157 38,231

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


100


Retained earnings

$'000

Asset revaluation

reserve $'000

Contributed equity/ capital $'000

Total equity

$'000

Opening balance as at 1 July 2018

Balance carried forward from previous period 20,129 13,971 3,835 37,935

Adjusted opening balance 20,129 13,971 3,835 37,935 Transactions with owners

Contributions by owners

Equity injection - Appropriation - - 74 74 Sub-total transactions with owners - - 74 74 Estimated closing balance as at 30 June 2019 20,129 13,971 3,909 38,009 Closing balance attributable to the Australian Government 20,129 13,971 3,909 38,009



101


2017-18 Estimated

actual $'000

2018-19 Budget

$'000


$'000


$'000


$'000

OPERATING ACTIVITIES

Cash received

Appropriations 19,493 20,388 20,390 19,502 19,597 Sale of goods and rendering of

services 797 797 797 797 797

Interest 450 450 450 450 450 Other 4,713 4,713 4,713 4,713 4,713

Total cash received 25,453 26,348 26,350 25,462 25,557 Cash used

Employees 10,822 10,746 10,680 10,792 10,887 Suppliers 13,435 14,406 14,474 13,474 13,474

Total cash used 24,257 25,152 25,154 24,266 24,361 Net cash from/(used by) operating activities 1,196 1,196 1,196 1,196 1,196 INVESTING ACTIVITIES

Cash received

Investments 1,828 304 304 304 304 Total cash received 1,828 304 304 304 304 Cash used


Total cash used 3,098 1,574 1,574 1,574 1,574 Net cash from/(used by) investing activities (1,270) (1,270) (1,270) (1,270) (1,270) FINANCING ACTIVITIES

Cash received

Contributed equity 74 74 74 74 74 Total cash received 74 74 74 74 74 Net cash from/(used by) financing activities 74 74 74 74 74 Net increase/(decrease) in cash held - - - - -





102

Table 3.5: Departmental capital budget statement (for the period ended 30 June) 2017-18


2018-19 Budget

$'000


$'000


$'000


$'000

NEW CAPITAL APPROPRIATIONS

Equity injections - Bill 2 74 74 74 74 74 Total new capital appropriations 74 74 74 74 74 Provided for:

Purchase of non-financial assets 74 74 74 74 74 Total items 74 74 74 74 74 PURCHASE OF NON-FINANCIAL ASSETS

Funded by capital appropriations (a) 74 74 74 74 74 Funded internally from departmental

resources (b) 3,024 1,500 1,500 1,500 1,500

TOTAL 3,098 1,574 1,574 1,574 1,574 RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE

Total purchases 3,098 1,574 1,574 1,574 1,574 Total cash used to acquire assets 3,098 1,574 1,574 1,574 1,574

(a) Includes both current Bill 2 and prior Act 2/4/6 appropriations. (b) Includes the following sources of funding:




103

Table 3.6: Statement of departmental asset movements (Budget year 2018-19)

(a) ‘Appropriation equity’ refers to equity injections appropriations provided through Appropriation Bill (No. 2) 2018-19, including CDABs.

(b) ‘Appropriation ordinary annual services’ refers to funding provided through Appropriation Bill (No. 1) 2018-19 for depreciation/amortisation expenses, DCBs or other operational expenses.


Buildings

$'000


equipment$'000

Heritageand

cultural

$'000

Computersoftw are

andintangibles

$'000

Total

$'000As at 1 July 2018

Gross book value 13,389 4,600 11,348 270 29,607Accumulated depreciation/amortisation and impairment (408) (1,806) (186) (124) (2,524)

Opening net book balance 12,981 2,794 11,162 146 27,083Capital asset additions

Estimated expenditure on new or replacement assetsBy purchase - appropriation equity (a) - - 74 - 74By purchase - appropriation ordinary annual services (b) - 1,500 - - 1,500Total additions - 1,500 74 - 1,574Other movementsDepreciation/amortisation expense (213) (798) (151) (34) (1,196)Total other movements (213) (798) (151) (34) (1,196)

As at 30 June 2019Gross book value 13,389 6,100 11,422 270 31,181Accumulated depreciation/ amortisation and impairment (621) (2,604) (337) (158) (3,720)

Closing net book balance 12,768 3,496 11,085 112 27,461

Estimated operating expenditure in income statement for heritage and cultural assetsOperations and Maintenance 2,585Preservation and Conservation 3,247

Total operating expenditure on heritage and cultural assets 5,832

105

AUSTRALIAN NATIONAL AUDIT OFFICE


107


SECTION 1: ENTITY OVERVIEW AND RESOURCES ............................................. 109 1.1 Strategic direction statement ........................................................................ 109 1.2 Entity resource statement ............................................................................. 110 1.3 Budget measures .......................................................................................... 112

SECTION 2: OUTCOMES AND PLANNED PERFORMANCE ................................. 113 2.1 Budgeted expenses and performance for Outcome 1 .................................. 114

SECTION 3: BUDGETED FINANCIAL STATEMENTS ............................................. 121 3.1 Budgeted financial statements ..................................................................... 121 3.2 Budgeted financial statements tables ........................................................... 123

109




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 as requested

• provision of advice and sharing of 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.

The ANAO Corporate Plan outlines the environment in which the ANAO operates and the related capability investments that will be required to support achieving the ANAO’s purpose. These capability areas include: new models of service delivery, advanced information and communication technology strategy and systems, contemporary communication and leadership. More detail can be found in the ANAO’s corporate plan which is published on the ANAO’s website – www.anao.gov.au.

http://www.anao.gov.au/

ANAO Budget Statements

110


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



Information in this table is presented on a resourcing (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).


111

Table 1.1: ANAO resource statement — Budget estimates for 2018-19 as at Budget May 2018

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) 2018-19. (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

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) 2018-19. (f) For further information on special appropriations, 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, for example, annual appropriations, special appropriations and special accounts.

2017-18 Estimated

actual $'000

2018-19 Estimate

$'000DepartmentalAnnual appropriations - ordinary annual services (a) Prior year appropriations available 39,474 39,431 Departmental appropriation (b) 70,531 69,329 s74 Retained revenue receipts (c) 3,800 4,100 Departmental capital budget (d) 978 971 Annual appropriations - other services - non-operating (e) Prior year appropriations available 150 150 Total departmental annual appropriations 114,933 113,981 Total departmental special appropriations (f) 734 748 Total departmental resourcing 115,667 114,729 Total resourcing for ANAO 115,667 114,729



112

1.3 BUDGET MEASURES

ANAO has no budget measures in the 2018-19 Budget.


113



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

Note:


The most recent corporate plan for the ANAO can be found at: https:/www.anao.gov.au/work/corporate/anao-2017-18-corporate-plan.

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

https://www.anao.gov.au/work/corporate/anao-2017-18-corporate-plan

https://www.anao.gov.au/work/annual-report/auditor-general-annual-report-2016-17


114


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

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


2017-18 Estimated

actual$'000

2018-19Budget

$'000


$'000


$'000


$'000

Departmental expensesDepartmental appropriation 38,829 38,189 37,992 38,102 38,604s74 Retained revenue receipts (a) 2,866 3,166 3,166 3,166 3,166Special appropriations

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

367 374 381 389 389


1,007 578 520 520 520

Departmental total 43,069 42,307 42,059 42,177 42,679Total expenses for program 1.1 43,069 42,307 42,059 42,177 42,679

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


115


(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.

2017-18 Estimated

actual$'000

2018-19Budget

$'000


$'000


$'000


$'000

Departmental expensesDepartmental appropriation 31,702 31,140 30,965 31,053 31,462s74 Retained revenue receipts (a) 934 934 934 934 934Special appropriations

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

367 374 381 389 389


884 470 445 445 445


Departmental expensesDepartmental appropriation 70,531 69,329 68,957 69,155 70,066s74 Retained revenue receipts (a) 3,800 4,100 4,100 4,100 4,100Special appropriations 734 748 762 778 778Expenses not requiring appropriation in the Budget year (b)

1,891 1,048 965 965 965

Departmental total 76,956 75,225 74,784 74,998 75,909Total expenses for Outcome 1 76,956 75,225 74,784 74,998 75,909


Program 1.2: Performance Audit Services



116



Outcome 1 – To improve public sector performance and accountability through independent reporting on Australian Government administration to Parliament, the Executive and the public. Program 1.1 – Assurance Audit Services This program contributes to the outcome through:

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

• contributing to improvements in the financial administration of Australian Government entities

Delivery Providing independent assurance to the Parliament by: • issuing financial statement audit opinions to the Australian Government

and its controlled entities • issuing other assurance audit reports • preparing and producing financial statement related reports



2017-18 • 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 Parliament (against a target of 100%)

• 3 assurance reports to be presented to Parliament (against a target of three)

• 42 other assurance reports produced (against a target of 45)

• 85% of auditor’s reports to be issued within three months of the financial year end reporting date (against a target of 85%)

• 0% increase to the average cost per audit (against a target of 0%)

• 85% of assurance audit staff available hours were charged to audit work (against a target of 85%)

• 100% of recommendations included in audit reports are agreed by audited entities (against a target of 90%)

• 65% of moderate and significant findings are addressed by material entities within one year of reporting (against a target of 90%)


117

Outcome 1 – To improve public sector performance and accountability through independent reporting on Australian Government administration to Parliament, the Executive and the public. Program 1.1 – Assurance Audit Services This program contributes to the outcome through:

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

• contributing to improvements in the financial administration of Australian Government entities • 100% of audit staff undertook

at least 20 hours of professional development (against a target of 100%)

• The ANAO independent QA Program indicates that 100% of audit conclusions are appropriately supported and that the ANAO quality assurance framework is operating effectively (against a target of 100%)

2018-19 • 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 audit

reports • Table two financial statement related

reports in Parliament

• 100% of the mandatory financial statements auditor’s reports completed

• Two financial statement related audit reports presented to Parliament

• 45 assurance audit reports by arrangement

• 85% of auditor’s reports to be issued within three months of the financial year end reporting date

• 0% increase to the average cost per financial statements audit

• 90% of moderate or significant findings from assurance audit reports are agreed to by audited entities

• 90% of moderate and significant findings are addressed by entities within one year of reporting

• The ANAO QA Program indicates that audit opinions and conclusions are appropriate


Purpose 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.


118

Program 1.2 – Performance Audit Services This program contributes to the outcome through:

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

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

Delivery Improving public sector performance by: • providing performance and other audit reports for the information of

Parliament, the Executive and the public



2017-18 • Provide objective reports to the Parliament, the Executive and the public on the performance of Australian Government programs and entities, including opportunities for improvement

• Contribute to improvements in Australian Government administration by identifying and promoting better practice.

• 48 performance audit reports to be produced (against a target of 48)

• 10.5 months average elapsed time for completion of performance audits (against a target of 10.5 months)

• 0% increase to average cost per performance audit (against a target of 0%)

• 80% of performance audit staff available hours were charged to audit work (against a target of 80%)

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

• 70% of ANAO recommendations implemented within 24 months of a performance audit report (against a target of 70%)

• 100% of audit staff that undertook at least 20 hours of professional development (against a target of 100%)

• The ANAO independent QA Program indicates that audit conclusions are appropriately supported and that the ANAO quality assurance framework is operating effectively (against a target of 100%)


119

Program 1.2 – Performance Audit Services This program contributes to the outcome through:

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

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

2018-19 • Provide objective reports to the Parliament, the Executive and the public on the performance of Australian Government programs and entities, including opportunities for improvement

• Contribute to improvements in Australian Government administration by identifying and promoting better practice.

• 48 performance audit reports prepared for Parliament

• 10.5 average elapsed time (months) for performance audits

• 0% increase to average cost per performance audit

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

• 70% of ANAO recommendations implemented within 24 months of a performance audit report

• The ANAO QA Program indicates that audit opinions and conclusions are appropriate

2019-20 and beyond As per 2018-19. As per 2018-19 except for the following: • 10 months average elapsed

time for completion of performance audits



120

Shared performance criteria for both programs 1.1 and 1.2 The 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 nations

• attending and preparing submissions to Parliamentary committees



2017-18 • Undertake engagements that contribute to public sector auditing and support developing nations

• Attend and prepare submissions to Parliamentary committees

• 30 appearances and submissions to Parliamentary committees (against a target of 20)

• 100% of requests from parliamentarians for private briefings or educational sessions that are undertaken (against a target of 100%)

• 100% of inquiries and audit requests from parliamentarians finalised within 28 days (against a target of 90%)

• 20% increase in followers on ANAO social media platforms (against a target of 20%)

• 90% of JCPAA members surveyed who were satisfied that the ANAO improved public sector performance and supported accountability and transparency (against a target of 90%)

2018-19 • Undertake engagements that contribute to public sector auditing and support developing nations.

• Attend and prepare submissions to Parliamentary committees

• 20 appearances and submissions to Parliamentary committees

• 100% of private briefings undertaken by request of Parliamentarians

• 90% of inquiries and audit requests from parliamentarians finalised within 28 days

• 90% of JCPAA members surveyed who were satisfied that the ANAO improved public sector performance and supported accountability and transparency




121





The entity resource statement (Table 1.1) provides a consolidated view of all the resources available to an entity in 2018-19. 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 2018-19.

3.1.2 Explanatory notes and analysis of budgeted financial statements Departmental Comprehensive income statement

Total income in 2018-19 is budgeted at $74.2 million (2017-18 $75.1 million). Revenue from Government (appropriation funding) has decreased to $70.1 million (2017-18 $71.3 million) due to efficiency dividends and other savings measures.

Other revenue is expected to be $4.1 million (2017-18 $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 $2.3 million for ‘audits by arrangement’ under section 20(2) of the Auditor-General Act 1997 and other miscellaneous income.

Operating expenses for 2018-19 are estimated to total $75.2 million (2017-18: $77.0 million).

In order to meet the ANAO’s performance targets, the ANAO proposes to use its accumulated reserves as it transitions to the new funding base.


122

Balance sheet

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

The current accommodation lease and IT service delivery arrangements will expire in 2018-19. It is the intent of the ANAO to utilise available funding to source the procurements required for each arrangement.

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 2018-19 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 Public Account on an ongoing basis.


123



(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.


2017-18 Estimated

actual$'000

2018-19Budget

$'000


$'000


$'000


$'000EXPENSES

Employee benefits 45,284 45,291 45,323 46,086 46,475Suppliers 29,781 28,886 28,496 27,947 28,469Depreciation and amortisation (a) 1,891 1,048 965 965 965


Sale of goods and rendering of services

3,800 4,100 4,100 4,100 4,100

Total own-source revenue 3,800 4,100 4,100 4,100 4,100Total own-source income 3,800 4,100 4,100 4,100 4,100Net (cost of)/contribution by services (73,156) (71,125) (70,684) (70,898) (71,809)

Revenue from Government 71,265 70,077 69,719 69,933 70,844Surplus/(deficit) attributable to the Australian Government (1,891) (1,048) (965) (965) (965)Total other comprehensive income - - - - -Total comprehensive income/(loss) (1,891) (1,048) (965) (965) (965)Total comprehensive income/(loss) attributable to the Australian Government (1,891) (1,048) (965) (965) (965)

Note: Impact of net cash appropriation arrangements2017-18

$'0002018-19

$'0002019-20

$'0002020-21

$'0002021-22

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

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

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


124


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

2017-18 Estimated

actual$'000

2018-19Budget

$'000


$'000


$'000



Cash and cash equivalents 444 444 444 444 444Trade and other receivables 40,606 40,563 40,563 40,563 40,563


Land and buildings 163 120 120 120 120Property, plant and equipment 1,250 1,154 1,428 1,512 1,606Intangibles 922 984 714 636 561Other non-financial assets 1,045 1,045 1,045 1,045 1,045




Employee provisions 10,913 10,913 10,913 10,913 10,913Other provisions 45 2 2 2 2

Total provisions 10,958 10,915 10,915 10,915 10,915 Total liabilities 14,589 14,546 14,546 14,546 14,546Net assets 29,841 29,764 29,768 29,774 29,793EQUITY*Parent entity interest

Contributed equity 13,705 14,676 15,645 16,616 17,600Reserves 564 564 564 564 564Retained surplus (accumulated deficit)

15,572 14,524 13,559 12,594 11,629

Total equity 29,841 29,764 29,768 29,774 29,793


125



Retainedearnings

$'000

Assetrevaluation

reserve$'000

Otherreserves

$'000


Totalequity



15,572 564 13,705 29,841

Adjusted opening balance 15,572 564 - 13,705 29,841Comprehensive income

Surplus/(deficit) for the period (1,048) (1,048)Total comprehensive income (1,048) - - - (1,048)Transactions with ownersContributions by owners

Departmental Capital Budget (DCB) 971 971Sub-total transactions with owners - - - 971 971Estimated closing balance as at 30 June 2019 14,524 564 - 14,676 29,764Closing balance attributable to the Australian Government 14,524 564 - 14,676 29,764


126



2017-18 Estimated

actual$'000

2018-19Budget

$'000


$'000


$'000



Appropriations 71,463 70,120 69,719 69,933 70,844Sale of goods and rendering of services

3,800 4,100 4,100 4,100 4,100


Employees 45,284 45,291 45,323 46,086 46,475Suppliers 29,781 28,886 28,496 27,947 28,469Other 198 43 - - -

Total cash used 75,263 74,220 73,819 74,033 74,944Net cash from/(used by) operating activities - - - - -INVESTING ACTIVITIESCash used


978 971 969 971 984

Total cash used 978 971 969 971 984Net cash from/(used by) investing activities (978) (971) (969) (971) (984)FINANCING ACTIVITIESCash received

Contributed equity 978 971 969 971 984Total cash received 978 971 969 971 984Net cash from/(used by) financing activities 978 971 969 971 984Net increase/(decrease) in cash held - - - - -


444 444 444 444 444

Cash and cash equivalents at the end of the reporting period 444 444 444 444 444


127


(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.

2017-18 Estimated

actual$'000

2018-19Budget

$'000


$'000


$'000



Capital budget - Bill 1 (DCB) 978 971 969 971 984Total new capital appropriations 978 971 969 971 984Provided for:

Purchase of non-financial assets 978 971 969 971 984Total items 978 971 969 971 984PURCHASE OF NON-FINANCIAL ASSETS

Funded by capital appropriation - DCB (a)

978 971 969 971 984

TOTAL 978 971 969 971 984RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE

Total purchases 978 971 969 971 984Total cash used to acquire assets 978 971 969 971 984


128


(a) ‘Appropriation ordinary annual services’ refers to funding provided through Appropriation Bill (No. 1) 2018-

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

Buildings

$'000


equipment$'000

Computersoftw are

andintangibles

$'000

Total

$'000As at 1 July 2018

Gross book value 5,393 4,164 6,724 16,281Accumulated depreciation/amortisation and impairment (5,230) (2,914) (5,802) (13,946)

Opening net book balance 163 1,250 922 2,335Capital asset additions

Estimated expenditure on new or replacement assetsBy purchase - appropriation ordinary annual services (a) - 434 537 971Total additions - 434 537 971Other movementsDepreciation/amortisation expense (43) (530) (475) (1,048)Total other movements (43) (530) (475) (1,048)

As at 30 June 2019Gross book value 5,393 4,598 7,261 17,252Accumulated depreciation/ amortisation and impairment (5,273) (3,444) (6,277) (14,994)

Closing net book balance 120 1,154 984 2,258


129



2017-18 Estimated

actual$'000

2018-19Budget

$'000


$'000


$'000


$'000OWN-SOURCE INCOMEOwn-source revenueNon-taxation revenue


12,300 12,300 12,300 12,300 12,300

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 12,300Total own-sourced income administered on behalf of Government 12,300 12,300 12,300 12,300 12,300Net (cost of)/contribution by services (12,300) (12,300) (12,300) (12,300) (12,300)


130



2017-18 Estimated

actual$'000

2018-19Budget

$'000


$'000


$'000


$'000ASSETS Financial assets


Total financial assets 6,736 6,736 6,736 6,736 6,736Total assets administered on behalf of Government 6,736 6,736 6,736 6,736 6,736LIABILITIESPayables

Other payables 492 492 492 492 492Total payables 492 492 492 492 492

Total liabilities administered on behalf of Government 492 492 492 492 492Net assets/(liabilities) 6,244 6,244 6,244 6,244 6,244


131



2017-18 Estimated

actual$'000

2018-19Budget

$'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

591 591 591 591 591

Cash to Official Public Account for:- Appropriations- Special accounts- Transfers to other entities (Finance - Whole of Government)

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

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

Cash and cash equivalents at end of reporting period 591 591 591 591 591

133

AUSTRALIAN PUBLIC SERVICE COMMISSION


135




SECTION 3: BUDGETED FINANCIAL STATEMENTS ............................................. 146 3.1 Budgeted financial statements ..................................................................... 146 3.2. Budgeted financial statements tables ........................................................... 148

137




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 2018-19 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

138






Table 1.1: APSC resource statement — Budget estimates for 2018-19 as at Budget May 2018

2017-18 Estimated

actual $'000

2018-19 Estimate

$'000DepartmentalAnnual appropriations - ordinary annual services (a) Prior year appropriations available (b) 21,266 13,987 Departmental appropriation (c) 22,811 21,299 s74 Retained revenue receipts (d) 21,222 20,903 Departmental capital budget (e) 414 411 Total departmental annual appropriations 65,713 56,600 Total departmental resourcing 65,713 56,600 AdministeredTotal administered special appropriations 33,351 4,170 Total administered resourcing 33,351 4,170 Total resourcing for APSC 99,064 60,770


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) 2018-19. (b) Excludes $0.1m subject to 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



139

Third party payments from and on behalf of other entities 2017-18


2018-19 Estimate

$'000Payments made by other entities on behalf of APSC (disclosed above)

Attorney-General's Department - Remuneration Tribunal Act 1973 4,106 4,170 Department of the House of Representatives - Remuneration Tribunal Act 1973 (f) 19,640 - Department of the Senate - Remuneration Tribunal Act 1973 (f) 9,605 -

(f) Up to 31 December 2017, remuneration of Parliamentarians’ was funded from the Remuneration Tribunal Act 1973. From 1 January 2018, remuneration of Parliamentarians’ is funded under the Parliamentary Business Resources Act 2017, which is reported by the Department of Finance.


140

1.3 BUDGET MEASURES

The APSC has no measures in the 2018-19 Budget.


141




Note:


The most recent corporate plan for the APSC can be found at: http://www.apsc.gov.au/publications-and-media/current-publications/corporateplan2017.

The most recent annual performance statement can be found at: http://www.apsc.gov.au/about-the-apsc/parliamentary/annual-report.

http://www.apsc.gov.au/publications-and-media/current-publications/corporateplan2017

http://www.apsc.gov.au/publications-and-media/current-publications/corporateplan2017

http://www.apsc.gov.au/about-the-apsc/parliamentary/annual-report


142


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.

Changes in programs The following table list changes to the program structures for the APSC since the last budget. Table 2: Changes to the program structures since the last portfolio statement

Program No.

Program title Description of change

1.2 Judicial Off ice Holders' Remuneration and Entitlements

Change of program name from Parliamentarians' and Judicial Off ice Holders' Remuneration and Entitlements. This applies from 1 July 2018.




143


2017-18 Estimated

actual$'000

2018-19Budget

$'000


$'000


$'000


$'000

Departmental expensesDepartmental appropriation 22,811 21,299 20,373 20,156 20,203s74 Retained revenue receipts (a) 21,222 20,903 21,082 21,441 21,784Expenses not requiring appropriation in the Budget year (b)

1,615 1,710 1,711 1,712 1,713


Administered expensesSpecial appropriations

Remuneration Tribunal Act 1973 33,351 4,170 4,230 4,310 4,370Administered total 33,351 4,170 4,230 4,310 4,370

Total expenses for program 1.2 (c)

33,351 4,170 4,230 4,310 4,370

Administered expensesSpecial appropriations 33,351 4,170 4,230 4,310 4,370

Administered total 33,351 4,170 4,230 4,310 4,370Departmental expenses

Departmental appropriation 22,811 21,299 20,373 20,156 20,203s74 Retained revenue receipts (a) 21,222 20,903 21,082 21,441 21,784Expenses not requiring appropriation in the Budget year (b)

1,615 1,710 1,711 1,712 1,713



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

Program 1.2: Judicial Office Holders' Remuneration and Entitlements (c)


(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,

amortisation expenses and audit fees. (c) For the first half of 2017-18, this program included Parliamentarians' remuneration and entitlements. Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of the budget year as government priorities change.


144


Outcome 1 – Increased awareness and adoption of best practice public administration by the public service through leadership, promotion, advice and professional development, drawing on research and evaluation. Program 1.1 – Australian Public Service Commission This program contributes to the outcome through building capacity, driving productivity and performance, streamlining processes and reducing red tape and promoting integrity and accountability among the APS.

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



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 work

• Renew the APS jobs website • Conduct trial to improve mobility • Support agencies who are negotiating

new enterprise agreements • Improve the skills of agencies in

workplace relations • Improve APS induction processes by

developing a central APS induction portal

• Partner with the Digital Transformation Agency to build digital capability in the APS.

2018-19 • Modernise the APS employment framework to reflect changes to the nature of work

• Shape the APS workforce

• Build workforce capability in the APS

• Promote a high standard of integrity in the APS.

• Partner with agencies to achieve compliance with the Government’s bargaining policies

• Support agencies to improve their workplace relations skills and performance

• Support the Government’s reform agenda

• Strengthen leadership and core capabilities by providing contemporary learning solutions

• Build digital capability in the APS by partnering with the Digital Transformation Agency.


145

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


Purpose To position the APS workforce for the future.

Program 1.2 – Judicial Office Holders’ Remuneration and Entitlements (a) This program contributes to the outcome through facilitating the payment of remuneration, allowances and entitlements to Judicial Office Holders.

Delivery The Attorney-General’s Department makes all of the payments for this program. These payments are funded by a special appropriation which the APSC administers (b).


Year Performance criteria (c) Targets

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 • Meet all requirements for the budgeting and reporting of Judicial Office Holders remuneration and entitlements.

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


Purpose To position the APS workforce for the future. (a) This program was renamed from “Parliamentarians’ Judicial Office Holders’ Remuneration and

Entitlements” to “Judicial Office Holders’ Remuneration and Entitlements”” for the 2018-19 financial year. (b) For the first half of 2017-18, this program included Parliamentarians' remuneration and entitlements, which

were paid by both the Department of the Senate and the Department of the House of Representatives. (c) New or modified performance criteria that reflect new or materially changed programs are shown in italics.


146




3.1.1 Differences between entity resourcing and financial statements The entity resource statement (Table 1.1) provides a consolidated view of all the resources available to the APSC in 2018-19 including both departmental and administered funding. This includes appropriations that are yet to be drawn down to cover departmental payables and provisions on the balance sheet. The departmental comprehensive income statement (Table 3.1) 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. Appropriation revenue from Government will decrease in 2018-19 and 2019-20 due to lower levels of funding for the 2017-18 Public Service Modernisation Fund budget measure to build digital capability in the APS. Funding for the measure is $2.8 million in 2017-18, $1.4 million in 2018-19 and $0.3 million in 2019-20.

Goods and services income is expected to slightly reduce in 2018-19 as income in 2017-18 includes activities that are not expected to reoccur.


Cash balances are maintained at a working level of $0.75 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.

Total 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.

Capital Budget Statement

The higher level of purchases in 2017-18 reflects major office fit-out works due to the APSC moving its head office and refitting the Sydney office.


147

Administered

Up to 31 December 2017, administered expenses included the payment of both Parliamentarians’ and Judicial Office Holders’ remuneration and entitlements. From 1 January 2018, the payment of Parliamentarians’ remuneration and entitlements is funded by the Parliamentary Business Resources Act 2017 and is reported in the administered financial statements of the Department of Finance.

The 2017-18 estimated actual reflects the part year impact of this change. The full year impact is reflected in the 2018-19 budget and the forward estimates.


148

3.2. BUDGETED FINANCIAL STATEMENTS TABLES


2017-18 Estimated

actual$'000

2018-19Budget

$'000


$'000


$'000


$'000EXPENSES

Employee benefits 25,482 25,864 26,278 26,725 27,153Suppliers 18,453 16,240 15,080 14,777 14,742Depreciation and amortisation (a) 1,709 1,803 1,803 1,803 1,803Finance costs 4 5 5 4 2



21,222 20,903 21,082 21,441 21,784

Other 44 45 46 47 48Total own-source revenue 21,266 20,948 21,128 21,488 21,832Total own-source income 21,266 20,948 21,128 21,488 21,832Net (cost of)/contribution by services (24,382) (22,964) (22,038) (21,821) (21,868)

Revenue from Government 22,811 21,299 20,373 20,156 20,203Surplus/(deficit) attributable to the Australian Government (1,571) (1,665) (1,665) (1,665) (1,665)Total comprehensive income/(loss) (1,571) (1,665) (1,665) (1,665) (1,665)


$'0002018-19

$'0002019-20

$'0002020-21

$'0002021-22



Total comprehensive income/(loss) - as per the statement of comprehensive income (1,571) (1,665) (1,665) (1,665) (1,665)

(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.



149



2017-18 Estimated

actual$'000

2018-19Budget

$'000


$'000


$'000





Land and buildings 6,455 5,791 5,111 4,421 3,715Property, plant and equipment 704 513 398 236 60Intangibles 1,487 1,428 1,311 1,253 1,228Inventories 46 46 46 46 46Other non-financial assets 560 560 560 560 560


Suppliers 3,085 3,182 3,227 3,233 3,228Other payables 4,586 4,586 4,586 4,586 4,586





6,879 5,214 3,549 1,884 219

Total equity 9,831 8,577 7,325 6,075 4,828


150


Retainedearnings

$'000

Assetrevaluation

reserve$'000


Totalequity



6,879 763 2,189 9,831

Comprehensive incomeSurplus/(deficit) for the period (1,665) - - (1,665)

Total comprehensive income (1,665) - - (1,665)Transactions with ownersContributions by owners

Departmental Capital Budget (DCB) - - 411 411Sub-total transactions with owners - - 411 411Estimated closing balance as at 30 June 2019 5,214 763 2,600 8,577



151


2017-18 Estimated

actual$'000

2018-19Budget

$'000


$'000


$'000




21,222 20,903 21,082 21,441 21,784

Net GST received 2,640 1,708 1,593 1,578 1,559Other (a) 7,135 238 290 485 350


Employees 25,482 25,864 26,278 26,725 27,153Suppliers 20,896 17,806 16,582 16,302 16,265

Total cash used 46,378 43,670 42,860 43,027 43,418Net cash from/(used by) operating activities 7,430 478 478 633 478INVESTING ACTIVITIESCash used


7,849 889 891 893 896

Other 139 - - 155 -Total cash used 7,988 889 891 1,048 896Net cash from/(used by) investing activities (7,988) (889) (891) (1,048) (896)FINANCING ACTIVITIESCash received

Contributed equity 414 411 413 415 418Total cash received 414 411 413 415 418Net cash from/(used by) financing activities 414 411 413 415 418Net increase/(decrease) in cash held (144) - - - -


894 750 750 750 750


(a) Other cash received represents retained appropriations drawn down from the Official Public Account. Prepared on Australian Accounting Standards basis.


152


Estimated actual$'000

2018-19Budget

$'000


$'000


$'000




Purchase of non-financial assets 414 411 413 415 418Total items 414 411 413 415 418PURCHASE OF NON-FINANCIAL ASSETS


414 411 413 415 418

Funded internally from departmental resources (b)

7,435 478 478 478 478

TOTAL 7,849 889 891 893 896RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE

Total purchases 7,849 889 891 893 896Total cash used to acquire assets 7,849 889 891 893 896

(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; − s74 Retained revenue receipts; and − proceeds from the sale of assets.



153

Table 3.6: Statement of asset movements (Budget year 2018-19) Asset Category

Buildings

$'000


equipment$'000

Computersoftw are

andintangibles

$'000

Total

$'000As at 1 July 2018

Gross book value 8,928 2,107 5,435 16,470Accumulated depreciation/amortisation and impairment (2,473) (1,403) (3,948) (7,824)

Opening net book balance 6,455 704 1,487 8,646Capital asset additions

Estimated expenditure on new or replacement assetsBy purchase - appropriation ordinary annual services (a) 100 92 697 889Total additions 100 92 697 889Other movementsDepreciation/amortisation expense (764) (283) (756) (1,803)Total other movements (764) (283) (756) (1,803)


Closing net book balance 5,791 513 1,428 7,732 (a) ‘Appropriation ordinary annual services’ refers to funding provided through Appropriation

Bill (No. 1) 2018-19 for depreciation/amortisation expenses, DCBs or other operational expenses.



154


2017-18 Estimated

actual$'000

2018-19Budget

$'000


$'000


$'000


$'000EXPENSES

Employee benefits 33,351 4,170 4,230 4,310 4,370Total expenses administered on behalf of Government 33,351 4,170 4,230 4,310 4,370Net cost of/(contribution by) services 33,351 4,170 4,230 4,310 4,370Surplus/(deficit) (33,351) (4,170) (4,230) (4,310) (4,370)Total comprehensive income/(loss) (33,351) (4,170) (4,230) (4,310) (4,370)



155

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.



2017-18 Estimated

actual$'000

2018-19Budget

$'000


$'000


$'000


$'000OPERATING ACTIVITIESCash used

Employees 33,351 4,170 4,230 4,310 4,370Total cash used 33,351 4,170 4,230 4,310 4,370Net cash from/(used by) operating activities

(33,351) (4,170) (4,230) (4,310) (4,370)

Net increase/(decrease) in cash held (33,351) (4,170) (4,230) (4,310) (4,370)

Cash and cash equivalents at beginning of reporting period

- - - - -


- Appropriations 33,351 4,170 4,230 4,310 4,370Total cash from Official Public Account 33,351 4,170 4,230 4,310 4,370

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

157

DIGITAL TRANSFORMATION AGENCY


159





161




The Digital Transformation Agency (DTA)’s mission is to accelerate the digital transformation of government by moving more services online, delivering a better digital experience for users and ensuring the best value for money from the government’s investment in Information and Communication Technology (ICT).

In 2018–19, the DTA will deliver on this mission in the following ways.

• Providing oversight and advice on all significant ICT and digital investment projects and new policy proposals — ensuring delivery of intended benefits and alignment to the digital transformation agenda.

• Developing whole-of-government strategies and policies that accelerate digital transformation, focusing on emerging technologies and improving services for users.

• Developing whole-of-government digital platforms and services to reduce

costs, reduce duplication and provide better ICT infrastructure for agencies.

• Transforming ICT and digital procurement to make it a simpler and faster process and help government buy and sell the ICT products and services it needs.

• Building the digital capability of the APS — focusing on upskilling staff, developing digital leadership skills and attracting and retaining digital talent.

DTA Budget Statements

162


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.





163

Table 1.1: Digital Transformation Agency resource statement — Budget estimates for 2018-19 as at Budget May 2018

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) 2018-19. (b) Excludes $2.226m subject to administrative quarantine by Finance or withheld under section 51 of the

Public Governance, Performance and Accountability Act 2013 (c) Excludes departmental capital budget (DCB). (d) Estimated retained revenue receipts under section 74 of the PGPA Act. (e) Amounts credited to the special account from another entity’s annual and special appropriations. (f) Includes the sum of s74 Retained revenue receipts, receipts from other entities and non-appropriations

receipts.

2017-18 Estimated

actual $'000

2018-19 Estimate

$'000DepartmentalAnnual appropriations - ordinary annual services (a) Prior year appropriations available (b) 15,724 15,083 Departmental appropriation (c) 72,145 115,356 s74 Retained revenue receipts (d) 3,035 2,171 Total departmental annual appropriations 90,904 132,610 Special accounts Opening balance 29,872 30,135 Appropriation receipts from other entities (e) 60,406 170,677 Non-appropriation receipts 127,440 - Total special accounts 217,718 200,812 Total departmental resourcing 308,622 333,422 Total resourcing for entity DTA 308,622 333,422


Third party payments from and on behalf of other entities2017-18


2018-19 Estimate

$'000Receipts received from other entities for the provision of services (disclosed above in s74 Retained revenue receipts section above) (f) 190,881 172,848


164

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 2018-19 Budget measures Part 1: Measures announced since the 2017-18 Mid-Year Economic and Fiscal Outlook (MYEFO)

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. Part 2: Other measures not previously reported in a portfolio statement

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.

Program2017-18

$'0002018-19

$'0002019-20

$'0002020-21

$'0002021-22

$'000Expense measures Delivering Australia’s Digital Future – Blockchain — use with Government payments 1.1

Departmental expenses - - - - - Total - - - - - Delivering Australia’s Digital Future – GovPass Program — accelerated implementation 1.1

Departmental expenses - 60,900 - - - Total - 60,900 - - - Total expense measures

Departmental - 60,900 - - - Total - 60,900 - - -

Program2017-18

$'0002018-19

$'0002019-20

$'0002020-21

$'0002021-22

$'000Measures Secure Cloud Strategy – implementation 1.1 Total - - - - - Total measures

Departmental - - - - - Total - - - - -


165




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-16-17/.


166


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 by funding source.


(a) The DTA transferred the function of the Cyber Security Advisory Office to the Department of Home Affairs

from 1 July 2018 ($10.5m over 4 years) (b) Estimated expenses incurred in relation to receipts retained under section 74 of the PGPA Act. (c) Expenses not requiring appropriation in the Budget year are made up of depreciation and amortisation

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.

2017-18 Estimated

actual$'000

2018-19Budget

$'000


$'000


$'000


$'000

Departmental expensesDepartmental appropriation (a) 72,145 115,356 41,177 35,241 34,434s74 Retained revenue receipts (b) 3,035 2,171 2,170 2,121 2,121Special accounts

ICT Coordinated Procurement 187,583 173,492 160,596 128,623 114,993Expenses not requiring appropriation in the Budget year (c)

1,089 1,839 1,837 185 577



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: Digital Transformation Agency


167


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 More services online and improved user experience • Developing annual digital transformation priorities to inform

investment decisions • Creating policy to support consistent service transformation across

government agencies • Supporting delivery of government-wide initiatives to join up

services • Providing advice to government on emerging trends and

opportunities Deliver and improve digital platforms and services

• Delivering whole-of-government platforms and services • Partnering with agencies on delivery of services so that these

services are simpler, clearer and faster for their users Oversee and advise on ICT and digital investment

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

Transform ICT Procurement

• Simplifying sourcing processes for suppliers • Making sourcing processes easier for government agencies • Driving value optimisation on government ICT spend • Improving the tools that support sourcing • Uplifting sourcing capabilities

Build Australian Public Service ICT and Digital Capability

• Delivering high quality ICT Entry Level Programs to entities • Establishing communities, developing best practices and building a

digital culture • Building digital leadership and capability across government

agencies Performance information


2017-18 • Develop a whole-of-government ICT strategy and digital transformation roadmap

• Support the development and integration of whole-of-government platforms

• Deliver ICT and digital strategies that support the government’s transformation agenda and are put in place and taken up by departments and agencies


168

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.

• Establish a whole-of-government ICT and digital program management office to design and build reporting requirements, improve governance, and risk management standards

• Provide analysis and advice to government on ICT and digital investments

• Develop and deliver a detailed DTA engagement plan that will be implemented around key initiatives

• Develop and/or deliver ICT and digital platforms that are successfully used across government

• Provide increased transparency of the government’s ICT and digital products, their costs, risks and implementation progress

• All government agencies will have a clear understanding of the DTA’s role

2018-19 • Influence whole-of-government investment in ICT and digital services to move more government services online and deliver a better user experience.

• Develop whole-of-government digital platforms and services to reduce costs, reduce duplication and provide better infrastructure for government agencies.

• Oversee the delivery of significant ICT and digital investments to ensure the best use of the government's ICT spend.

• Improve the sourcing experience for the sellers and buyers of government digital products and services.

• Improve the digital capability of the APS to accelerate the government's transformation agenda.

• Provide advice to government and agencies on how to leverage emerging technologies and maximise digital investment.

• Lead and partner on the development and enhancement of digital platforms and services.

• Provide oversight and assurance to government that the design and delivery of ICT projects is on track to deliver the intended outcomes.

• Provide greater value for money when buying government digital products and services.

• Deliver programs and resources that increase the ICT and digital capability of agencies and their staff.


Purposes (b) We accelerate the digital transformation of government by: • encouraging investment in digital services • helping to transform the user experience for people and businesses • improving the return on ICT and digital investment.

(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 2018-2019 corporate plan.


169





The entity resource statement (Table 1.1) provides a consolidated view of all the resources available to the DTA in 2018-19. 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 2018-19.

3.1.2 Explanatory notes and analysis of budgeted financial statements

The DTA is budgeting for a break-even result in 2017-18, after adjusting for depreciation expense. The decrease in appropriation across the forward estimates relates to measures that are terminating as well as the transfer of the Cyber Security Advisory Office to the Department of Home Affairs from 1 July 2018.

The DTA is budgeting for an approved operating loss over the forward estimates pending cost recovery arrangements being put in place for future Whole of Australian Government ICT procurements. The Comprehensive Income Statement (Table 3.1) sets out the application of funding to ordinary operating expenses.


170



2017-18 Estimated

actual $'000

2018-19 Budget

$'000


$'000


$'000


$'000

EXPENSES

Employee benefits 34,104 30,548 25,737 24,272 24,656 Suppliers 228,844 260,656 178,391 141,898 127,469 Depreciation and amortisation (a) 904 1,654 1,652 - -

Total expenses (b) 263,852 292,858 205,780 166,170 152,125 LESS:

OWN-SOURCE INCOME

Own-source revenue

Sale of goods and rendering of services (c)

190,881 172,848 159,941 127,914 113,578

Total own-source revenue 190,881 172,848 159,941 127,914 113,578 Gains

Other 185 185 185 185 577 Total gains 185 185 185 185 577 Total own-source income 191,066 173,033 160,126 128,099 114,155 Net (cost of)/contribution by services (72,786) (119,825) (45,654) (38,071) (37,970)

Revenue from Government 72,145 115,356 41,177 35,241 34,434 Surplus/(deficit) attributable to the Australian Government (641) (4,469) (4,477) (2,830) (3,536) Total comprehensive income/(loss) (641) (4,469) (4,477) (2,830) (3,536) Total comprehensive income/(loss) attributable to the Australian Government

(641) (4,469) (4,477) (2,830) (3,536)


171

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

2017-18

$'000 2018-19

$'000 2019-20

$'000 2020-21

$'000 2021-22

$'000 Total comprehensive income/(loss) excluding depreciation/ amortisation expenses previously funded through revenue appropriations 263 (2,815) (2,825) (2,830) (3,536)

less depreciation/amortisation expenses previously funded through revenue appropriations (a) 904 1,654 1,652 - - Total comprehensive income/(loss) - as per the statement of comprehensive income (641) (4,469) (4,477) (2,830) (3,536)


(b) Includes estimates for expenses anticipated to be funded from the ICT Coordinated Procurement Special Account.

(c) Includes estimates for revenue to be credited to the ICT Coordinated Procurement Special Account for onboarding agencies to WoAG contract arrangements.



172



2017-18 Estimated

actual$'000

2018-19Budget

$'000


$'000


$'000





Land and buildings 2,875 1,437 - - - Property, plant and equipment 431 215 - - - Other non-financial assets 550 540 542 542 542

Total non-financial assets 3,856 2,192 542 542 542 Total assets 54,372 49,935 45,449 42,619 39,083 LIABILITIESPayables


Total payables 6,035 6,047 6,019 6,019 6,019 Total interest bearing liabilities - - - - - Provisions


Total provisions 6,880 6,900 6,919 6,919 6,919 Total liabilities 12,915 12,947 12,938 12,938 12,938 Net assets 41,457 36,988 32,511 29,681 26,145 EQUITY*Parent entity interest


7,665 3,196 (1,281) (4,111) (7,647)

Total parent entity interest 41,457 36,988 32,511 29,681 26,145Total non-controlling interest - - - - -Total equity 41,457 36,988 32,511 29,681 26,145


173


Retained earnings

$'000

Asset revaluation

reserve $'000

Other reserves

$'000


Total equity

$'000

Opening balance as at 1 July 2018 Balance carried forward from

previous period 7,665 239 - 33,553 41,457

Adjusted opening balance 7,665 239 - 33,553 41,457 Comprehensive income

Other comprehensive income (4,469) (4,469) Total comprehensive income (4,469) - - - (4,469) Transactions with owners

Distributions to owners Contributions by owners Sub-total transactions with owners - - - - - Estimated closing balance as at 30 June 2019 3,196 239 - 33,553 36,988

Less: non-controlling interests - Closing balance attributable to the Australian Government 3,196 239 - 33,553 36,988



174



2017-18 Estimated

actual$'000

2018-19Budget

$'000


$'000


$'000

2021-22Forward estimate


Appropriations 73,382 118,171 44,002 38,071 37,970Sale of goods and rendering of services 190,110 172,806 159,952 127,914 113,578

Net GST received - - - - -Other


Employees 34,086 30,528 25,718 24,272 24,656Suppliers 227,906 260,449 178,236 141,713 126,892

Total cash used 261,992 290,977 203,954 165,985 151,548Net cash from/(used by) operating activities 1,500 - - - -INVESTING ACTIVITIESCash used

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

Total cash used 1,500 - - - -Net cash from/(used by) investing activities (1,500) - - - -FINANCING ACTIVITIESNet increase/(decrease) in cash held - - - - -

Cash and cash equivalents at the beginning of the reporting period 557 557 557 557 557



175



2018-19 Budget

$'000


$'000


$'000


$'000

PURCHASE OF NON-FINANCIAL ASSETS

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

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

Total purchases 1,500

Total cash used to acquire assets 1,500 - - - - (a) Includes the following sources of funding:




176

Table 3.6: Statement of asset movements (Budget year 2018-19) Asset Category

Buildings

$'000

Other property, plant and

equipment $'000

Computer software

and intangibles

$'000

Total

$'000 As at 1 July 2018

Gross book value 3,706 647 841 5,194 Accumulated depreciation/

amortisation and impairment (831) (216) (841) (1,888) Opening net book balance 2,875 431 - 3,306

Other movements Depreciation/amortisation expense (1,438) (216) (1,654) Total other movements (1,438) (216) - (1,654)

As at 30 June 2019 Gross book value 3,706 647 841 5,194 Accumulated depreciation/

amortisation and impairment (2,269) (432) (841) (3,542) Closing net book balance 1,437 215 - 1,652


177

INDIGENOUS BUSINESS AUSTRALIA


179





181




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

182


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 2018-19 as at Budget May 2018

Please note: All figures shown above are GST exclusive - these may not match figures in the cash flow statement. (a) Appropriation Bill (No. 1) 2018-19 (b) Appropriation Bill (No. 2) 2018-19 (c) Funding provided by government entity that is not specified within the Appropriation Bills.

2017-18 Estimated

actual$'000

2018-19 Estimate

$'000Funds from Government

Annual appropriations - ordinary annual services (a)Outcome 1 10,133 9,762

Annual appropriations - other services (b)Equity injection 22,850 22,850

Amounts received from related entities Grants from Department of the Prime Minister and Cabinet (c) 40,117 30,225

Total amounts received from related entities 40,117 30,225Total funds from Government 73,099 62,837Funds from other sources

Interest 50,598 51,937Sale of goods and services 81,049 82,248Rent 16,055 19,270Dividend 5,851 6,152Other 3,585 3,327

Total funds from other sources 157,138 162,934Total net resourcing for IBA 230,238 225,771



183

1.3 BUDGET MEASURES

IBA has no budget measures in the 2018-19 Budget.


184




Note:


The most recent corporate plan for IBA can be found at: www.iba.gov.au/iba-corporate-plan-2017-18/.

The most recent annual performance statement can be found at: www.iba.gov.au/reports/AR1617/part-1-overview/Annual-Performance-Statements/index.html.

http://www.iba.gov.au/iba-corporate-plan-2017-18/

http://www.iba.gov.au/iba-corporate-plan-2017-18/

http://www.iba.gov.au/reports/AR1617/part-1-overview/Annual-Performance-Statements/index.html

http://www.iba.gov.au/reports/AR1617/part-1-overview/Annual-Performance-Statements/index.html


185



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



2017-18 Estimated

actual$'000

2018-19Budget

$'000


$'000


$'000


$'000



100,307 99,722 94,549 96,952 98,926

Total expenses for Program 1.1 100,307 99,722 94,549 96,952 98,926Program 1.2: Indigenous Home OwnershipRevenue from Government

Ordinary annual services (Appropriation Bill No. 1) 10,133 9,762 9,587 9,712 9,712


63,619 51,370 47,878 50,597 51,627

Total expenses for Program 1.2 73,752 61,132 57,465 60,309 61,339Program 1.3: Business Development and AssistanceRevenue from Government

Ordinary annual services (Appropriation Bill No. 1)

- - - - -


27,862 28,779 28,692 28,971 29,677

Total expenses for Program 1.2 27,862 28,779 28,692 28,971 29,677Outcome 1 totals by resource typeRevenue from Government

Ordinary annual services (Appropriation Bill No. 1)

10,133 9,762 9,587 9,712 9,712


191,788 179,871 171,119 176,520 180,230

Total expenses for Outcome 1 201,921 189,633 180,706 186,232 189,942


Program 1.1: Equities and Investments

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


186


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

organisations and communities through: 1. Delivering finance products and support to assist Indigenous customers to enter into

home ownership 2. Building commercial capability and creating wealth through investment in and direct

management of businesses and assets 3. Providing finance products and support to assist Indigenous customers to start-up,

acquire or grow their own businesses.


Year Performance criteria (a) Targets Measurement

2017-18 To make a lasting difference to the economic prosperity of Aboriginal and Torres Strait Islander communities and people across Australia

Total Value of Business Finance products approved in financial year1

$40m

Portfolio value of Business Finance Products2 $109m

Survivability of Indigenous Businesses3

Exceeds

Value of finance for home ownership outcomes approved4

$220m

Portfolio value of finance for home ownership outcomes5

$775m

Percentage of housing customers who transition or are supported into mainstream lending6

4.5%

Percentage of housing loans to applicants who are first home buyers

94%

Total amount of Indigenous co-investments with IBA7

$140m

Portfolio Return to Indigenous Co-investors8,9 CPI +4%

Total value of Indigenous procurement11 $4m

% of suppliers that are Indigenous11 10%

To invest in and develop a skilled, culturally capable and outcome focused team that puts

% of jobs held by Aboriginal and Torres Strait Islander people within IBA

29%

% of jobs supported by IBA’s associates, subsidiaries and

40%


187

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

our customers first program customers held by Indigenous12



$40m



Meets or exceeds the Australian average


$220m


$800m


4.5%


90%


$155m


Total value of Indigenous procurement11 $4.5m

% of suppliers that are Indigenous11 12.5%

To invest in and develop a skilled, culturally capable and outcome focused team that puts our customers first


30%

% of jobs supported by IBA’s associates, subsidiaries and program customers held by Indigenous12

40%



$40m




Value of finance for home ownership outcomes $220m


188


approved4


$819m


4.5%


90%


$170m






32%


41%



$45m





$230m


$835m


4.5%


90%


$185m

Portfolio Return to CPI +4%


189


Indigenous Co-investors8,9

Total value of Indigenous procurement11 $7.5m

% of suppliers that are Indigenous11 17.5%



33.5%


42%

2021 and beyond

To make a lasting difference to the economic prosperity of Aboriginal and Torres Strait Islander communities and people across Australia


$45m





$230m


$850m


4.5%


90%


$200m






35%


42%


190


Purpose:

1. To assist and enhance Aboriginal and Torres Strait Islander self-management and economic self-sufficiency.

2. 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.

Footnotes: 1 Total value of business related finance products including loans, performance bonds, leases and other

finance products approved in financial year 2 Total portfolio value of business related finance products including loans, performance bonds, leases

and other finance products 3 The trading status of business finance customers is measured at the end of each financial year. Results

are compared with data showing “survival rate by employment size range” as published by the Australian Bureau of Statistics in the most recent available version of: Cat. no. 81650.0 Counts of Australian Businesses, including entry and exits. Measure will be reported on by survivability of finance clients compared to Australian average.

4 Total value of loans, guarantees and other finance products provided for home acquisitions (including purchase of residential land), property settlement, refinance and essential home improvements approved in financial year.

5 Total book value (face value less discounts and doubtful debt of portfolio and current year) of loans, guarantees and other finance products provided for home acquisitions (including purchase of residential land), settlement, refinance and essential home improvements

6 Total Transition to mainstream lending 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.

7 Total value of funds invested by Indigenous organisations, businesses and individuals alongside IBA, including in managed funds, direct investments and property.

8 Portfolio return to IBA’s Indigenous co-investors during the year, 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.

9 Portfolio CPI refers to the average consumer price index for Australia during the measurement period. For example, if the realised CPI for 2018–19 is 1.7%, the expected return based on a target of CPI + 4% is 5.7% (1.7% + 4%).

10 Total dollar value of goods and services procured from Indigenous businesses by IBA and its subsidiaries and associates

11 Total percentage of goods and services procured from Indigenous businesses by IBA and its subsidiaries and associates

12 Is calculated as the sum of (i) the rolling twelve-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).



191





There are no differences between IBA’s Entity Resourcing and Financial Statements.


An analysis of the primary causes of movements in the budgeted financial statements is provided below. The 2017-18 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 28 subsidiaries. On consolidation, assets, liabilities, income and expenditure of all subsidiaries flow through to individual line items in the consolidated budget.

Comprehensive Income Statement

IBA is budgeting for an operating surplus of $5.2 million in 2017-18 and an estimated operating surplus of $13.0 million in 2018-19.


Budgeted net assets as at 30 June 2019 of $1,476.1 million represents an increase of $35.8 million over the net assets of $1,440.3 million as at 30 June 2018. The main drivers of the increase ($35.8 million) are:

• continuing capital injections from the Government of $22.9 million

• the estimated operating surplus of $13.0 million.

Budgeted Departmental Statement of Cash Flows

Net lending activity is expected to be $83.1 million in 2018-19.

Departmental Statement of Changes in Equity

Total equity is expected to increase by $35.8 million to $1,476.1 million as at 30 June 2019, with the additional equity injection of $22.9 million from the Commonwealth and the Budget year surplus of $13.0 million.


192

Notes to budgeted financial statements Concessional Loan Discount

IBA continues to designate its loan portfolio in accordance with applicable accounting standards. Where appropriate, any variation in the loan portfolio under fair value basis is written directly to the Comprehensive Income Statement.

Financial Assets – Trade and Other 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 applicable accounting standards.

Non-Financial Assets

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.


193


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

2017-18 Estimated

actual$'000

2018-19Budget

$'000


$'000


$'000


$'000EXPENSES

Employee benefits 50,098 53,232 51,671 52,298 53,132Suppliers 80,955 77,999 75,457 76,784 78,481Grants 6,682 8,382 7,800 7,903 8,006Depreciation and amortisation 6,524 7,260 7,092 7,311 7,712Finance costs 506 589 598 607 616Write-dow n and impairment of assets 84 27 34 31 27Losses from asset sales 216 73 66 60 54Concessional Loan Discount 49,422 35,649 32,332 35,484 36,064Bad and Doubtful debts 6,938 5,876 5,164 5,245 5,323Other expenses 496 546 492 509 527


Sale of goods and rendering of services 81,049 82,248 77,732 79,067 80,421Interest 50,598 51,937 57,564 59,359 60,931Dividends 5,851 6,152 6,408 6,493 6,577Rental income 16,055 19,270 18,840 19,526 20,572Grant Revenue 40,117 30,225 30,000 30,000 30,000Other 2,029 1,590 1,347 1,395 1,415


Other 1,556 1,737 1,691 1,716 1,742Total gains 1,556 1,737 1,691 1,716 1,742Total own-source income 197,255 193,159 193,582 197,556 201,658Net (cost of)/contribution by services (4,666) 3,526 12,876 11,324 11,716

Revenue from Government 10,133 9,762 9,587 9,712 9,712Surplus/(deficit) before income tax on continuing operations 5,467 13,288 22,463 21,036 21,428Income tax expense 267 308 37 38 38Surplus/(deficit) after income tax on continuing operations 5,200 12,980 22,426 20,998 21,390Surplus attributable to the non-controlling interests 2,136 3,877 6,698 6,273 6,389Surplus/(deficit) attributable to the Australian Government 3,064 9,103 15,728 14,725 15,001Prepared on Australian Accounting Standards basis.


194


2017-18 Estimated

actual$'000

2018-19Budget

$'000


$'000


$'000



Cash and cash equivalents 237,171 183,875 177,899 170,002 166,966Trade and other receivables 829,129 891,856 912,296 960,169 1,011,433Investments accounted for under the equity method

14,316 20,340 29,557 30,133 32,333

Other investments 197,424 210,750 231,039 237,113 235,113Total financial assets 1,278,040 1,306,821 1,350,791 1,397,417 1,445,845Non-financial assets

Land and buildings 24,996 25,661 26,328 26,995 27,161Property, plant and equipment 26,748 24,638 22,279 19,704 16,232Investment property 146,367 146,367 146,367 146,367 146,367Intangibles 7,912 11,597 15,397 15,294 15,188Inventories 2,501 2,451 2,502 2,452 2,402Tax assets 731 731 731 731 731Other non-financial assets 1,539 1,554 1,570 1,586 1,602

Total non-financial assets 210,794 212,999 215,174 213,129 209,683Assets held for sale

Total assets 1,488,834 1,519,820 1,565,965 1,610,546 1,655,528LIABILITIESPayables

Suppliers 12,100 12,300 12,500 12,700 12,900Tax liabilities 58 58 58 58 58Other payables 10,195 4,719 4,956 5,203 5,463

Total payables 22,353 17,077 17,514 17,961 18,421Interest bearing liabilities

Loans 17,503 17,503 17,503 17,503 17,503Total interest bearing liabilities 17,503 17,503 17,503 17,503 17,503Provisions


Total provisions 8,701 9,133 9,565 9,848 10,131Liabilities included in disposal grouts held for sale

Total liabilities 48,557 43,713 44,582 45,312 46,055Net assets 1,440,277 1,476,107 1,521,383 1,565,234 1,609,473


195

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


2017-18 Estimated

actual$'000

2018-19Budget

$'000


$'000


$'000


$'000EQUITY*Parent entity interest

Contributed equity 1,033,274 1,056,124 1,078,976 1,101,826 1,124,676Reserves 5,193 5,193 5,193 5,193 5,193Retained surplus (accumulated deficit)

278,664 291,644 314,068 335,069 356,458

Total parent entity interest 1,317,131 1,352,961 1,398,237 1,442,088 1,486,327Attributed to non-controlling interest


187 187 187 187 187

Total non-controlling interest 123,146 123,146 123,146 123,146 123,146Total equity 1,440,277 1,476,107 1,521,383 1,565,234 1,609,473


196



Retainedearnings

$'000

Assetrevaluation

reserve$'000

Otherreserves

$'000


Totalequity



278,851 6,639 - 1,154,787 1,440,277

Adjustment for changes in accounting policies

- - - - -

Adjusted opening balance 278,851 6,639 - 1,154,787 1,440,277Comprehensive income

Other comprehensive income - - - - -Surplus/(deficit) for the period 12,980 - - - 12,980

Total comprehensive income 12,980 - - - 12,980of w hich:

Attributable to the Australian Government

9,103 - - - 9,103

Attributable to non-controlling interest

3,877 - - - 3,877

Transactions with ownersDistributions to owners

Contributions by ownersEquity injection - - - - -Equity injection - Appropriation - - - 22,850 22,850

Sub-total transactions with owners - - - 22,850 22,850Estimated closing balance as at 30 June 2019 291,831 6,639 - 1,177,637 1,476,107

Less: non-controlling interests - - - - -Closing balance attributable to the Australian Government 291,831 6,639 - 1,177,637 1,476,107


197


2017-18 Estimated

actual$'000

2018-19Budget

$'000


$'000


$'000



Appropriations 10,133 9,762 9,587 9,712 9,712Sale of goods and rendering of services 84,628 60,442 90,649 71,019 75,621Interest 50,599 51,937 57,564 59,358 60,931Dividends 5,851 6,152 6,408 6,493 6,578Grants 40,117 30,225 30,000 30,000 30,000Other 18,084 19,123 19,997 23,133 3,414


Employees 50,042 52,649 51,084 51,758 52,882Suppliers 79,395 75,409 72,995 76,231 62,877Grants 6,682 8,382 7,800 7,903 8,006Other 1,587 2,217 2,121 2,088 2,972

Total cash used 137,706 138,657 134,000 137,980 126,737Net cash from/(used by) operating activities 71,706 38,984 80,205 61,735 59,519INVESTING ACTIVITIESCash received

Investments 54,611 10,262 - - -Other - loans and advances 188,200 160,420 167,675 178,468 189,095



62,639 9,500 9,200 5,300 5,300

Investments 46,715 29,612 29,506 6,650 200Other - loans and advances 333,931 243,500 234,800 255,800 265,800


Contributed equity 85,378 22,850 22,850 22,850 22,850New borrow ing 6,003 - - - -


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 88,181 19,650 19,650 19,650 19,650Net increase/(decrease) in cash held (40,587) (53,296) (5,976) (7,897) (3,036)


277,758 237,171 183,875 177,899 170,002

Cash and cash equivalents at the end of the reporting period 237,171 183,875 177,899 170,002 166,966Prepared on Australian Accounting Standards basis.


198

Table 3.5 Departmental capital budget statement (for the period ended 30 June)

Prepared on Australian Accounting Standards basis. (a) Includes purchase of investment properties at Mitcham (VIC) and Clifton Village (QLD).

2017-18 Estimated

actual$'000

2018-19Budget

$'000


$'000


$'000



Equity injections - Bill 2 22,850 22,850 22,850 22,850 22,850Total new capital appropriations 22,850 22,850 22,850 22,850 22,850Provided for:

Loan expenditure 22,850 22,850 22,850 22,850 22,850Total items 22,850 22,850 22,850 22,850 22,850PURCHASE OF NON-FINANCIAL ASSETS

Funded internally from departmental resources (a)

62,639 9,500 9,200 5,300 5,300




199



Buildings

$'000


equipment$'000

Investmentproperty

$'000

Computersoftw are

andintangibles

$'000

Total

$'000As at 1 July 2018

Gross book value 28,362 45,341 146,367 12,412 232,482Accumulated depreciation/amortisation and impairment (3,366) (18,593) - (4,500) (26,459)

Opening net book balance 24,996 26,748 146,367 7,912 206,023Capital asset additions

Estimated expenditure on new or replacement assetsBy purchase - other 1,000 3,500 - 5,000 9,500Total additions 1,000 3,500 - 5,000 9,500Other movementsDepreciation/amortisation expense (335) (5,610) - (1,315) (7,260)

From disposal of entities or operations (including restructuring) - - - - -

Other - - - - -Total other movements (335) (5,610) - (1,315) (7,260)

As at 30 June 2019Gross book value 29,362 48,841 146,367 17,412 241,982Accumulated depreciation/ amortisation and impairment (3,701) (24,203) - (5,815) (33,719)

Closing net book balance 25,661 24,638 146,367 11,597 208,263

201

INDIGENOUS LAND CORPORATION


203





205




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 purposes are to assist Indigenous Australians to acquire land and to manage land (however it was acquired) so as to achieve economic, environmental, social or cultural benefits. The ATSI Act requires that the ILC grant land acquired to Indigenous corporations ‘within a reasonable time’, and perform land management functions only on Indigenous-held land and ‘under agreements with the holders of the land’. The ILC’s primary source of income is revenue from the Aboriginal and Torres Strait Islander Land Account (Land Account), legislated concurrently with the ILC as part of the native title settlement. The Land Account is currently administered by the Department of the Prime Minister and Cabinet under delegation from the Minister for Finance; however, the Australian Government is introducing new legislation to establish an Aboriginal and Torres Strait Islander Land and Sea Fund, managed by the Future Fund Management Agency and Board of Guardians. Legislative amendments to enable the ILC to invest in water-based projects (beyond land in its conventional sense) are also being introduced. The ILC’s primary decision-making body is a seven-member Board, of whom five members including the Chairperson must be Indigenous Australians. The Board sets the ILC’s strategic direction and policies over a three-to-five year timeframe through the National Indigenous Land Strategy (NILS), required to be tabled in Parliament and published. The latest NILS 2018–22, developed over 2017, was tabled in February 2018.

The ILC’s land acquisition and land management functions operate through the Our Land Our Future program-delivery arrangements. Program guidelines have been redeveloped over recent years to help ensure that ILC funds provide maximum benefit for Indigenous Australians.

The ATSI Act provides for the establishment of subsidiaries as vehicles for performance of the ILC’s functions. With the ILC, the three wholly-owned subsidiaries below 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

ILC Budget Statements

206

• Australian Indigenous Agribusiness Company (AIA) Pty Ltd, which employs labour on a number of agribusinesses developed by the ILC on ILC-owned land or land leased from Indigenous owners—the management of agribusiness operations has recently been reintegrated into the ILC

• National Centre of Indigenous Excellence (NCIE) Ltd, which manages the ILC-developed social enterprise of the same name in Redfern, Sydney, NSW.

ILC-developed enterprises in agriculture and tourism are a vehicle for Indigenous development in regional and remote areas and a base for Indigenous training-to-employment projects funded by the ILC and its subsidiaries in collaboration with the Australian Government’s Indigenous Advancement Strategy.

The ILC strategically invests in Indigenous held-land and waters2 to foster prosperity and empowerment among Aboriginal and Torres Strait Islander people and to achieve Indigenous benefits. These include economic independence (in particular jobs); social benefit; cultural identity and connection to country; and environmental sustainability. In assisting the Australian Government’s priority of Indigenous economic development, and in particular economic development on Indigenous-held land, the ILC will in 2018–19 and future years continue to work closely with Indigenous Business Australia (IBA).

2 The ILC currently invests in water-based projects that are attached to a land based activity. The

Australian Government has recently introduced legislation to Parliament to amend the ATSI Act to extend the ILC’s remit to salt and fresh water country, thus enabling greater flexibility in the `ILC’s support of projects that involve Indigenous held water interests.


207


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.

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 ILC’s operations) classification.



2017-18 Estimated

actual$'000

2018-19 Estimate

$'000Funds from Government

Annual appropriations - ordinary annual services (a)Outcome 1 8,928 8,749

Total annual appropriations 8,928 8,749Special accounts (b)

Aboriginal and Torres Strait Islander Land Account 52,296 53,290Total special accounts 52,296 53,290Total funds from Government 61,224 62,039Funds 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 84,424 85,239


Table 1.1: ILC resource statement - Budget estimates for 2018-19 as at Budget May 2018

(b) A corporate entity may receive payment from a special account held by a NCCE. The corporate entity does not ow n/hold the special account itself and therefore does not have a balance carried forw ard from previous years.

(a) Appropriation Bill (No. 1) 2018-19

Prepared on a resourcing (i.e. appropriations available) basis.Please note: All f igures show n above are GST exclusive - these may not match f igures in the cash f low statement.


208

1.3 BUDGET MEASURES

The ILC has no budget measures in the 2018-19 Budget.


209




Note:


The most recent corporate plan for the Indigenous Land Corporation can be found at: http://www.ilc.gov.au/Home/News/New-ILC-Corporate-Plan.

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

http://www.ilc.gov.au/Home/News/New-ILC-Corporate-Plan


210


Outcome 1: Enhanced socio-economic development, maintenance of cultural identity and protection of the environment by Indigenous Australians through land acquisition and management.


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


2017-18 Estimated

actual$'000

2018-19Budget

$'000


$'000


$'000


$'000


8,928 8,749 8,617 8,531 8,446

Payment from related entities 18,500 18,500 17,500 11,500 11,000Special accounts

Aboriginal and Torres Strait Islander Land Account 44,406 33,703 38,837 47,642 48,368


4,700 4,700 4,700 4,700 4,700

Total expenses for Program 1.1 76,534 65,652 69,654 72,373 72,514


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

Outcome 1: Enhanced socio-economic development, maintenance of cultural identity and protection of the environment by Indigenous Australians through land acquisition and management.


211



Outcome 1 – Enhanced socio-economic development, maintenance of cultural identity and protection of the environment by Indigenous Australians through land acquisition and management. Program 1.1 – The objective of this program is to acquire and manage an Indigenous land base

Delivery The ILC delivers this program by: • acquiring and granting land to Indigenous corporations to provide

access to and protection of cultural and environmental values and to achieve socioeconomic development

• assisting Indigenous land holders (through grants, guarantees, loans or provision of services) to manage their land sustainably including the development of viable land-based enterprises

• operating subsidiary companies that manage agricultural, tourism

and community-based enterprises on Indigenous-held land; these enterprises provide training, employment and other opportunities for Indigenous communities and individuals.


Year Performance criteria (a) Targets 2017-18 Deliverable 1

Properties acquired 3

Deliverable 2 Properties granted

8

Deliverable 3 Number of active land acquisition and land management projects

100

KPI 1 Indigenous employment

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

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

500 500

KPI 2 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

2017-18 KPI 3 Indigenous business development Number of Indigenous enterprises assisted by ILC Group projects

60


212

KPI 4 Protection of Indigenous culture, heritage and the environment Proportion of active ILC Group projects (Deliverable 3) that maintained or protected Indigenous culture, heritage and/or the environment

50%

KPI 5 Collaboration Proportion of active ILC Group projects (Deliverable 3) that involved contributions from third parties (beyond immediate beneficiary group)

60%

KPI 6 ILC Group contribution to the Indigenous Estate

Qualitative measure

2018-19 Deliverable 1 Properties acquired

4


6


105




525 525




120 1050

2018-19 KPI 3 Indigenous business development Number of Indigenous enterprises assisted by ILC Group projects

63


50%

KPI 5 Collaboration

60%


213

Proportion of active ILC Group projects (Deliverable 3) that involved contributions from third parties (beyond immediate beneficiary group) KPI 6 ILC Group contribution to the Indigenous Estate

Qualitative measure

2019-20

Deliverable 1 Properties acquired

5


8


110




550 550




140 1100

KPI 3 Indigenous business development Number of Indigenous enterprises assisted by ILC Group projects

66


50%


60%


Qualitative measure


5


214


8


110




550 550

2020 -21 KPI 2 Indigenous training



140 1100


66


50%


60%


Qualitative measure


5


8


110



550


215

2021 -22 KPI 1 Indigenous employment


550




140 1100


66


50%


60%


Qualitative measure

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


216





The ILC has no differences in entity resourcing and financial statements.

The financial statements included in the Portfolio Budget Statements are for the ILC Group comprising the ILC (the parent entity) and its wholly owned subsidiaries other than Voyages Indigenous Tourism Australia Pty Ltd that has been classified as a Public Non-Financial Corporation and is not a general government sector body.


The ILC’s primary source of income is an annual minimum payment of $45 million indexed from the Land Account pursuant to section 193(2) of the ATSI Act. Indexation has been applied annually to the base amount of $45 million since 2010-11. Estimated payments from the Land Account from 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, the 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, the ILC acquires land for the specific purpose of granting an interest in that land to an Aboriginal or Torres Strait Islander corporation. The 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.

The ILC also holds properties for granting that have significant livestock on them. In accordance with Australian Accounting Standards, the 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).


217




2017-18 Estimated

actual$'000

2018-19Budget

$'000


$'000


$'000


$'000EXPENSES

Employee benefits 15,241 16,777 17,400 18,110 18,472Suppliers 55,316 43,197 47,416 50,391 51,226Depreciation and amortisation 1,500 1,500 1,500 1,500 1,500Finance costs 4,477 4,178 3,338 2,372 1,316


Interest 18,500 18,500 18,500 12,500 12,000Income from Special Account 52,296 53,290 54,462 55,770 57,052Other 4,700 4,700 4,700 4,700 4,700

Total own-source revenue 75,496 76,490 77,662 72,970 73,752Net (cost of)/contribution by services (1,038) 10,838 8,008 597 1,238

Revenue from Government 8,928 8,749 8,617 8,531 8,446Surplus/(deficit) attributable to the Australian Government 7,890 19,587 16,625 9,128 9,684Total other comprehensive income - - - - -Total comprehensive income/(loss) 7,890 19,587 16,625 9,128 9,684Total comprehensive income/(loss) attributable to the Australian Government 7,890 19,587 16,625 9,128 9,684Total comprehensive income/(loss) - as per the Statement of comprehensive income 7,890 19,587 16,625 9,128 9,684


218


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

2017-18 Estimated

actual$'000

2018-19Budget

$'000


$'000


$'000



Cash and cash equivalents 18,232 19,497 19,160 18,160 18,160Trade and other receivables 310,718 321,470 328,056 326,842 324,128Other investments 21,000 21,000 21,000 21,000 21,000Other f inancial assets 7,956 5,110 2,805 1,146 215


Property, plant and equipment 82,184 82,184 82,184 82,184 82,184Intangibles 209 209 209 209 209Biological assets 54,094 54,094 54,094 54,094 54,094Inventories 143,106 143,106 143,106 143,106 143,106Other non-financial assets 6,300 6,300 6,300 6,300 6,300

Total non-financial assets 285,893 285,893 285,893 285,893 285,893 Assets held for sale


Suppliers 7,577 7,577 7,577 7,577 7,577Total payables 7,577 7,577 7,577 7,577 7,577 Interest bearing liabilities

Loans 56,458 46,042 33,361 20,360 7,031Total interest bearing liabilities 56,458 46,042 33,361 20,360 7,031 Provisions



Reserves 11,350 11,350 11,350 11,350 11,350Retained surplus (accumulated deficit)

421,714 441,301 457,926 467,054 476,738



219



Retainedearnings

$'000

Assetrevaluation

reserve$'000

Otherreserves

$'000

Totalequity



421,714 11,470 (120) 433,064

Adjusted opening balance 421,714 11,470 (120) 433,064Comprehensive income

Other comprehensive income -Surplus/(deficit) for the period 19,587 19,587

Total comprehensive income 19,587 - - 19,587of w hich:

Attributable to the Australian Government

19,587 19,587

Estimated closing balance as at 30 June 2019 441,301 11,470 (120) 452,651Closing balance attributable to the Australian Government 441,301 11,470 (120) 452,651


220



2017-18 Estimated

actual$'000

2018-19Budget

$'000


$'000


$'000



Appropriations 8,928 8,749 8,617 8,531 8,446Receipts from Government 52,296 53,290 54,462 55,770 57,052Interest 1,000Other 4,700 4,700 4,700 4,700 4,700


Employees 15,241 16,777 17,400 18,110 18,472Suppliers 55,316 43,197 47,416 50,391 51,226Borrow ing costs 1,514 1,332 1,033 713 385

Total cash used 72,071 61,306 65,849 69,214 70,083Net cash from/(used by) operating activities (6,147) 5,433 1,930 (213) 1,115INVESTING ACTIVITIESCash used


1,500 1,500 1,500 1,500

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

Receipts of borrow ings 2,013 7,748 11,914 13,714 13,714Total cash received 2,013 7,748 11,914 13,714 13,714Cash used

Repayments of borrow ings 5,799 10,416 12,681 13,001 13,329Other

Total cash used 5,799 10,416 12,681 13,001 13,329Net cash from/(used by) financing activities (3,786) (2,668) (767) 713 385Net increase/(decrease) in cash held (9,933) 1,265 (337) (1,000) -


28,165 18,232 19,497 19,160 18,160



221


(a) Includes the following sources of funding: - current Bill 1 and prior year Act 1/3/5 appropriations (excluding amounts from the DCB); - donations and contributions; - gifts; - internally developed assets; - s 74 Retained revenue receipts; - proceeds from the sale of assets. Prepared on Australian Accounting Standards basis.

2017-18 Estimated

actual$'000

2018-19Budget

$'000


$'000


$'000


$'000PURCHASE OF NON-FINANCIAL ASSETS

Funded internally from departmental resources (a)

1,500 1,500 1,500 1,500

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

Total purchases 1,500 1,500 1,500 1,500Total cash used to acquire assets - 1,500 1,500 1,500 1,500


222


Prepared on Australian Accounting Standards basis


equipment$'000

Computersoftw are

andintangibles

$'000

Biological Assets

Total

$'000As at 1 July 2018

Gross book value 84,001 1,033 54,094 139,128Accumulated depreciation/amortisation and impairment (1,817) (824) (2,641)

Opening net book balance 82,184 209 54,094 136,487Capital asset additions

Estimated expenditure on new or replacement assetsBy purchase - other 1,500 1,500Total additions 1,500 - - 1,500Other movementsDepreciation/amortisation expense (1,500) (1,500)Total other movements (1,500) - - (1,500)

As at 30 June 2019Gross book value 85,501 1,033 54,094 140,628Accumulated depreciation/ amortisation and impairment (3,317) (824) - (4,141)

Closing net book balance 82,184 209 54,094 136,487

223

OFFICE OF NATIONAL ASSESSMENTS


225





227




In 2018-19, it is intended that legislation will be enacted to transform the Office of National Assessments (ONA) into the Office of National Intelligence (ONI). This will increase the scope of ONA's existing legislative functions and is in response to the recommendations of the 2017 Independent Intelligence Review (IIR), which was commissioned by the Australian government in November 2016.

ONA's assessment function will be expanded and strengthened. ONI will be better resourced to inform the Australian government about matters of political, strategic or economic significance to Australia. Through this work, ONI will support the government's awareness of, and ability to interpret, developments affecting Australia's national interests.

The Australian government has valued the objectivity of ONA's products, and this independence will remain of vital importance to ONI's performance.

The IIR found that the increasing complexity of Australia's national security challenges and the changing nature of Australia's national security environment, have broadened the range of activities of Australia's intelligence agencies. A comprehensive response to the protection of Australia's national security interests now requires broader and deeper coordination, and the integration of the government's intelligence effort, both within the Australian Intelligence Community (AIC) and to agencies with intelligence-related functions outside the AIC.

To achieve this, ONI will provide the Australian government with a single point of coordination, integration and evaluation for Australia's entire national intelligence effort. ONI's remit will be much broader than ONA's existing one of coordinating and evaluating the foreign intelligence activities of the AIC (AGO, ASD, ASIO, ASIS, DIO and ONA). ONI's remit will span the integration, coordination and evaluation of intelligence matters across the newly established National Intelligence Community (NIC). The NIC will comprise the six AIC agencies, the Australian Criminal Intelligence Commission, and the intelligence-related functions of the Australian Transaction Reports and Analysis Centre, the Australian Federal Police and the Department of Home Affairs.

ONI will provide enhanced strategic level enterprise-wide planning, management, and leadership, across the intelligence activities of the NIC. This will include through:

ONA Budget Statements

228

• leading the development and implementation of strategic mechanisms to integrate and coordinate intelligence effort across the NIC;

• evaluating the allocation of NIC resources to intelligence priorities, and evaluating the performance of NIC agencies (both individually, and of the NIC as a whole) against these priorities;

• developing and overseeing a strategic approach to common issues across the NIC, such as high-priority technological challenges, workforce capability improvements, and efforts to improve data management, information-sharing and ICT connectivity; and

• supporting the Australian government in making informed decision on intelligence capability development across the NIC. The primary vehicle by which major new intelligence capability proposals will be presented for government approval will be through the Intelligence Capability Investment Plan (ICIP). The Director-General of National Intelligence will present the inaugural ICIP to the National Security Committee of Cabinet.


229


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




Table 1.1: ONA resource statement — Budget estimates for 2018-19 as at Budget May 2018

2017-18 Estimated

actual $'000

2018-19 Estimate

$'000DepartmentalAnnual appropriations - ordinary annual services (a) Prior year appropriations available 23,604 40,906 Departmental appropriation (b) 41,923 53,961 Departmental capital budget (c) 3,963 4,028 Annual appropriations - other services - non-operating (d) Equity injection 11,700 - Total departmental annual appropriations 81,190 98,895 Total departmental resourcing 81,190 98,895 Total resourcing for ONA 81,190 98,895

2017-18 2018-19Average staffing level (number) (e) 167 215

(b) Excludes departmental capital budget (DCB).

(e) Increase due to establishment of ONI in 2018-19.

Please note: All f igures show n above are GST exclusive - these may not match f igures in the cash f low statement.

Prepared on a resourcing (i.e. appropriations available) basis.

(a) Appropriation Bill (No. 1) 2018-19.

(d) Appropriation Bill (No. 2) 2018-19.

(c) Departmental capital budgets are not separately identif ied 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 ow ner'.


230

1.3 BUDGET MEASURES

ONA has no budget measures in the 2018-19 Budget.


231




Table 2: Changes to the outcome and program structures since the last portfolio statementOutcome changes

NewOutcome 1

Description of change:

Old Statement:

Advancement of Australia's national interests though increased government awareness of international developments affecting Australia and integration, coordination and evaluation of Australia's national intelligence capabilities.

Advancement of Australia's national interests though increased government awareness of international developments affecting Australia.

New outcome, created for Budget 2018-19, supersedes old Outcome 1.


232


Outcome 1: Advancement of Australia's national interests though increased government awareness of international developments affecting Australia and integration, coordination and evaluation of Australia's national intelligence capabilities.


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.


2017-18 Estimated

actual$'000

2018-19Budget

$'000


$'000


$'000


$'000

Departmental expensesDepartmental appropriation 22,154 32,377 36,024 40,312 41,078Expenses not requiring appropriation in the Budget year (a)

2,824 3,090 3,260 3,121 3,061



1,883 2,060 2,174 2,080 2,041

Departmental total 16,652 23,644 26,190 28,955 29,426Total expenses for program 1.2

16,652 23,644 26,190 28,955 29,426


4,707 5,150 5,434 5,201 5,102


2017-18 2018-19Average staffing level(number) (b)

167 215

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

Outcome 1: Advancement of Australia's national interests though increased government awareness of international developments affecting Australia and integration, coordination and evaluation of Australia's national intelligence capabilities.

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 and audit fees.

(b) Increase due to establishment of ONI in 2018-19.


233





The Entity Resource Statement (Table 1.1) provides a consolidated view of all the resources available to ONA in 2018-19. 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 2018-19.


ONA does not have any special accounts or manage administered funds.


ONA is budgeting for a $5.0m underspend operating result, adjusted for depreciation and amortisation expense, in 2017-18, and a break-even operating result, adjusted for depreciation and amortisation expense in the Budget and forward estimate years. Employee and supplier expenses are budgeted to grow in line with the additional funding received for the establishment of an ONI 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.

Departmental Capital Budget Statement


234

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.


235



2017-18 Estimated

actual$'000

2018-19Budget

$'000


$'000


$'000


$'000EXPENSES

Employee benefits 27,701 34,657 41,010 46,968 47,985Suppliers 9,252 19,334 19,060 20,249 20,509Depreciation and amortisation (a) 4,707 5,150 5,434 5,201 5,102

Total expenses 41,660 59,141 65,504 72,418 73,596LESS: OWN-SOURCE INCOMEGains

Other 30 30 30 30 30Total gains 30 30 30 30 30Total own-source income 30 30 30 30 30Net (cost of)/contribution by services (41,630) (59,111) (65,474) (72,388) (73,566)

Revenue from Government 41,923 53,961 60,040 67,187 68,464Surplus/(deficit) attributable to the Australian Government 293 (5,150) (5,434) (5,201) (5,102)OTHER COMPREHENSIVE INCOMETotal other comprehensive income - - - - -Total comprehensive income/(loss) 293 (5,150) (5,434) (5,201) (5,102)Total comprehensive income/(loss) attributable to the Australian Government 293 (5,150) (5,434) (5,201) (5,102)


$'0002018-19

$'0002019-20

$'0002020-21

$'0002021-22

$'000Total comprehensive income/(loss) excluding depreciation/ amortisation expenses previously funded through revenue appropriations 5,000 - - - -


Total comprehensive income/(loss) - as per the statement of comprehensive income 293 (5,150) (5,434) (5,201) (5,102)(a) From 2010-11, the Government introduced net cash appropriation arrangements. This involved Bill 1 revenue appropriations for the depreciation/amortisation expenses of non-corporate Commonw ealth entities (and select corporate Commonw ealth entities) being replaced w ith 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.



236


2017-18 Estimated

actual$'000

2018-19Budget

$'000


$'000


$'000





Land and buildings 17,837 22,567 25,631 23,881 22,843Property, plant and equipment 3,862 4,290 4,632 4,909 5,290Intangibles 5,281 4,711 4,283 3,962 3,721Other non-financial assets 1,435 1,435 1,435 1,435 1,435







(8,859) (14,009) (19,443) (24,644) (29,746)


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


237


Retainedearnings

$'000

Assetrevaluation

reserve$'000


Totalequity



(8,859) 1,545 62,392 55,078


Surplus/(deficit) for the period (5,150) (5,150)Total comprehensive income (5,150) - - (5,150)

of w hich:Attributable to the Australian Government

(5,150) (5,150)

Contributions by ownersDepartmental Capital Budget (DCB) 4,028 4,028

Sub-total transactions with owners - - 4,028 4,028Estimated closing balance as at 30 June 2019 (14,009) 1,545 66,420 53,956Closing balance attributable to the Australian Government (14,009) 1,545 66,420 53,956Prepared on Australian Accounting Standards basis.


238


2017-18 Estimated

actual$'000

2018-19Budget

$'000


$'000


$'000



Appropriations 33,265 50,865 61,312 65,685 67,036Net GST received 705 1,713 1,686 1,805 1,831


Employees 24,019 31,887 42,484 45,548 46,527Suppliers 9,246 18,978 18,828 20,137 20,509s74 Retained revenue receipts transferred to OPA

705 1,713 1,686 1,805 1,831



7,019 9,738 8,412 3,407 4,204


Contributed equity 7,019 9,738 8,412 3,407 4,204Total cash received 7,019 9,738 8,412 3,407 4,204Net cash from/(used by) financing activities 7,019 9,738 8,412 3,407 4,204Net increase/(decrease) in cash held - - - - -


673 673 673 673 673

Cash and cash equivalents at the end of the reporting period 673 673 673 673 673Prepared on Australian Accounting Standards basis.


239


(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. Include purchases from current and previous years'

Departmental Capital Budgets (DCBs). Prepared on Australian Accounting Standards basis.

2017-18 Estimated

actual$'000

2018-19Budget

$'000


$'000


$'000



Capital budget - Bill 1 (DCB) 3,963 4,028 4,093 4,130 4,204Equity injections - Bill 2 11,700 - - - -

Total new capital appropriations 15,663 4,028 4,093 4,130 4,204Provided for:

Purchase of non-financial assets 15,663 4,028 4,093 4,130 4,204Total items 15,663 4,028 4,093 4,130 4,204PURCHASE OF NON-FINANCIAL ASSETS

Funded by capital appropriations (a) 2,000 6,000 3,700 - -Funded by capital appropriation - DCB (b)

5,019 3,738 4,712 3,407 4,204




240


(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) 2017-


Buildings

$'000


equipment$'000

Computersoftw are

andintangibles

$'000

Total

$'000As at 1 July 2018

Gross book value 19,819 4,827 12,690 37,336Accumulated depreciation/amortisation and impairment (1,982) (965) (7,409) (10,356)

Opening net book balance 17,837 3,862 5,281 26,980Capital asset additions

Estimated expenditure on new or replacement assetsBy purchase - appropriation equity (a) 6,000 6,000By purchase - appropriation ordinary annual services (b) 1,238 1,500 1,000 3,738Total additions 7,238 1,500 1,000 9,738Other movementsDepreciation/amortisation expense (2,508) (1,072) (1,570) (5,150)Total other movements (2,508) (1,072) (1,570) (5,150)


Closing net book balance 22,567 4,290 4,711 31,568

Asset Category

241

OFFICE OF THE COMMONWEALTH OMBUDSMAN


243





245




The planned outcome of the Office of the Commonwealth Ombudsman (the Office or 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 Office’s purpose is to:

• provide assurance that the Australian Government entities and prescribed private sector organisations that the Office oversights act with integrity and treat people fairly; and

• influence enduring systemic improvement in public administration in Australia and the region.

The Office delivers on its purpose through handling complaints, conducting investigations, performing audits and inspections, encouraging good administration and discharging specialist oversight tasks. The Office influences improvement in public administration in the Pacific region through collaboration with partner entities.

The Commonwealth Ombudsman has the following separate titles that describe specific powers and functions, including: Defence Force Ombudsman, Postal Industry Ombudsman, Overseas Students Ombudsman, Private Health Insurance Ombudsman, Immigration Ombudsman, Law Enforcement Ombudsman and the VET Students Loans Ombudsman. The Commonwealth Ombudsman is also the ACT Ombudsman.

Since the 2017-18 Budget, the Government has formally ratified the Optional Protocol to the Convention against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment (OPCAT). The Office will take a lead role in facilitating and coordinating domestic oversight arrangements, working closely with States and Territories who are responsible for oversight of places of detention within their jurisdictions.

The Government announced a package of private health insurance reforms in October 2017, which included strengthening the powers of the Private Health Insurance Ombudsman and improving information provision. The role of the Private Health Insurance Ombudsman will expand to enable the conduct of inspections and audits of private health insurers, commencing on 1 July 2018. The Office will support the implementation of improvements to private health insurance information provision, including an upgrade to www.privatehealth.gov.au.

OCO Budget Statements

246

In 2018-19, the Office will focus on:

• continuing the implementation of a suite of new functions, including the expanded role of the Private Health Insurance Ombudsman, upgrade of www.privatehealth.gov.au and establishment of the OPCAT national coordination role;

• ongoing delivery of high quality services to individual complainants, whose numbers and diversity of concerns continue to grow;

• delivery of critical oversight functions to ensure the public can have confidence in the manner in which law enforcement and other agencies exercise certain important powers; and

• careful identification of areas of administration where our critical, but discretionary, activities are to be dedicated in the form of own motion inquiries or other investigation and reporting work, to optimise our influence on the wider system.

Further details of the objectives and performance evaluation mechanisms for the Office are detailed in Section 2. More detail can also be found in the Office’s corporate plan which is published on the Office’s website – www.ombudsman.gov.au.


247






Table 1.1: Office resource statement — Budget estimates for 2018-19 as at Budget May 2018

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) 2018-19. (b) Excludes $0.26m amounts in Appropriation Bills (No.5 and 6) 2017-18, which are yet to receive Royal

Assent – for further information, please see Office of the Commonwealth Ombudsman 2017-18 Portfolio Supplementary Additional Estimates Statements.

(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


2017-18 Estimated

actual $'000

2018-19 Estimate

$'000DepartmentalAnnual appropriations - ordinary annual services (a) Prior year appropriations available (b) 8,953 12,143 Departmental appropriation (c) 23,730 35,228 s74 Retained revenue receipts (d) 11,360 2,330 Departmental capital budget (e) 821 817 Total departmental annual appropriations 44,864 50,518 Total departmental resourcing 44,864 50,518 Total resourcing for OCO 44,864 50,518



248

1.3 BUDGET MEASURES

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

Table 1.2: Entity 2018-19 Budget measures Part 1: Measures announced since the 2017-18 Mid-Year Economic and Fiscal Outlook (MYEFO)

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) Funding for this measure in 2017-18 is reflected in the measures table of the 2017-18 Prime Minister and

Cabinet Portfolio Supplementary Additional Estimates Statements (b) The lead entity for measure titled ‘Implementation of OPCAT’ is the Attorney-General’s Department. The

full measure description and package details appear in Budget Paper No. 2 under the Attorney-General’s portfolio.

(c) The lead entity for measure titled ‘VET Student Loans Ombudsman – additional resources’ is the Department of Education. The full measure description and package details appear in Budget Paper No. 2 under the Education portfolio.

Program2017-18

$'0002018-19

$'0002019-20

$'0002020-21

$'0002021-22

$'000Expense measures

Commonw ealth Ombudsman - additional funding (a) 1.1

Departmental expenses - 270 270 270 270 Total - 270 270 270 270

Implementation of OPCAT (b) 1.1Departmental expenses - 299 299 301 303

Total - 299 299 301 303 VET Student Loans Ombudsman - additional resources (c) 1.1

Departmental expenses - 1,000 - - - Total - 1,000 - - - Total expense measures

Departmental - 1,569 569 571 573 Total - 1,569 569 571 573


249

Part 2: Other measures not previously reported in a portfolio statement

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 Making Private Health Insurance Simpler and More Affordable is Department

of Health. The full measure description and package details appear in the 2017-18 MYEFO under the Health portfolio.

Program2017-18

$'0002018-19

$'0002019-20

$'0002020-21

$'0002021-22

$'000Measures

Making Private Health Insurance Simpler and More Affordable (a) 1.1

Departmental expenses - 1,936 1,099 1,036 1,041 Total - 1,936 1,099 1,036 1,041 Total measures

Departmental - 1,936 1,099 1,036 1,041 Total - 1,936 1,099 1,036 1,041


250




Note:


The most recent corporate plan for Office can be found at: http://www.ombudsman.gov.au/__data/assets/pdf_file/0019/50356/Corporate-Plan-2017-18-Final_Online.pdf.

The most recent annual performance statement can be found at: http://www.ombudsman.gov.au/__data/assets/pdf_file/0018/51516/CO_Annual-Report_2016-17.pdf.

http://www.ombudsman.gov.au/__data/assets/pdf_file/0019/50356/Corporate-Plan-2017-18-Final_Online.pdf

http://www.ombudsman.gov.au/__data/assets/pdf_file/0019/50356/Corporate-Plan-2017-18-Final_Online.pdf

http://www.ombudsman.gov.au/__data/assets/pdf_file/0018/51516/CO_Annual-Report_2016-17.pdf

http://www.ombudsman.gov.au/__data/assets/pdf_file/0018/51516/CO_Annual-Report_2016-17.pdf


251


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.





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.

2017-18 Estimated

actual$'000

2018-19Budget

$'000


$'000


$'000


$'000

Departmental expensesDepartmental appropriation 23,730 35,228 32,295 31,143 32,632s74 Retained revenue receipts (a) 11,360 2,330 1,424 1,165 1,200Expenses not requiring appropriation in the Budget year (b)

1,131 1,004 1,024 1,054 1,054



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


252


Outcome 1 – Fair and accountable administrative action by Australian Government entities and prescribed private sector organisations, by investigating complaints, reviewing administrative action and statutory compliance inspections and reporting. Program 1.1 – Office of the Commonwealth Ombudsman The objectives of this program are to: • provide assurance that the Australian Government entities and prescribed private sector organisations

that the Office oversights act with integrity and treat people fairly, and • influence enduring systemic improvement in public administration in Australia and the region.

Delivery • Influence Australian and Australian Capital Territory Government entities to improve public administration and complaint handling systems through public reports, recommendations and direct engagement

• Provide an efficient, effective and accessible government complaint handling service

• Undertake oversight and assurance activities relating to the integrity of Australian Government entities, Australian Capital Territory Government entities and prescribed private sector organisations

• Provide effective and unbiased industry complaint handling services and provision of consumer information

• Deliver capacity building programs under the Australian Aid arrangements to support Ombudsmen and allied integrity bodies improve governance and accountability.



2017-18

1. Percentage of recommendations/suggestions made during an inspection for which progress has been followed up within 12 months of it being made

2. Percentage of recommendations made in

public reports accepted by entities 3. Percentage of reports on long term

detention cases sent to the Minister within 12 months of the review being received from the Department

4. Percentage of state of the network

reports issued to the Department within 3 months of the reporting cycle

Target 100% of recommendations / suggestions followed up within 12 months. Forecast 100% Target 75% of recommendations made in public reports accepted by entities. Forecast 80% Target 90% of reports on long term detention cases sent to the Minister within 12 months of review being received from the Department. Forecast 90% Target 90% of post-visit reports are issued to the Department within 90 business days of inspection completion. Forecast 75%


253


that the Office oversights act with integrity and treat people fairly, and • influence enduring systemic improvement in public administration in Australia and the region. 2017-18 (continued)

5. Percentage of stakeholders which participated in engagement activities who provided an average of ‘satisfied’ or ‘very satisfied’ rating in feedback forms/surveys

6. (a) Percentage of outputs delivered

under the Australian Aid arrangements 6. (b) Percentage of reporting requirements

met under the Australian Aid arrangements

7. Percentage of approaches finalised

within the office’s service standards

8. Percentage of office statutory requirements in relation to law enforcement met

9. Percentage of office statutory

requirements in relation to Commonwealth public interest disclosures met

10. Percentage of public users who completed the survey for Privatehealth.gov.au and provided a ‘satisfied’ or ‘very satisfied’ response regarding the quality of information provided by the website.

Target 90% of stakeholders participating in engagement activities provide an average of ‘satisfied’ or ‘very satisfied’ in feedback forms/surveys. Forecast 90% Target 80% of outputs delivered under Australian Aid arrangements. Forecast 80% Target 100% of reporting requirements met under Australian Aid arrangements. Forecast 100% Target 85% of approaches are finalised within the office’s service standards. Forecast 75% Target 100% of office statutory requirements in relation to law enforcement are met. Forecast 100% Target 100% of offie statutory requirements in relation to Commonwealth public interest disclosure are met. Forecast 100% Target 80% of public users who completed the Privatehealth.gov.au survey provide a ‘satisfied’ or ‘very satisfied’ response regarding quality of information. Forecast 80%

2018-19

1. Percentage of recommendations made in public reports accepted by entities

2. Percentage of stakeholders who participated in engagement activities that provided an average of ‘satisfied’ or ‘very satisfied’ rating in feedback forms/surveys

Target 75% of recommendations will be accepted by entities Target 90% satisfied or very satisfied rating for stakeholders participating in engagement activities


254


that the Office oversights act with integrity and treat people fairly, and • influence enduring systemic improvement in public administration in Australia and the region. 2018-19 (continued)

3. Percentage of government complaints finalised within the Office’s service standards

4. Percentage of Office statutory

requirements in relation to Commonwealth public interest disclosures met

5. Percentage of Office statutory

requirements in relation to law enforcement met

6. Percentage of public law enforcement

reports finalised within Office standards 7. Percentage of reports on long term

detention cases sent to the Minister for Home Affairs within 12 months of the review being received from the Department

8. Percentage of immigration detention

state of the network reports issued within three months of the reporting cycle

9. Percentage of public users who

completed the survey for Privatehealth.gov.au and provided a ‘satisfied’ or ‘very satisfied’ response regarding the quality of information provided by the website

10. Percentage of industry complaints

handled within Office service standards

11. Percentage of outputs delivered under the Australian Aid arrangements

12. Percentage of stakeholders that

participated in activities delivered under Australian Aid arrangements who provided an average of ‘satisfied’ or ‘very satisfied’ rating in the feedback forms/surveys.

Target 85% of complaints finalised within Office standards Target 100% of Office statutory requirements in relation to public interest disclosures met Target 100% of Office statutory requirements met Target 85% of reports finalised within Office standards Target 90% of reports sent to the Minister within 12 months of the review being received Target 90% of immigration detention state of the network reports issued within three months Target 80% satisfied or very satisfied rating received from completed surveys on the Privatehealth.gov.au website Target 85% of complaints handled within Office service standards Target 80% of outputs delivered Target 90% satisfied or very satisfied rating received from stakeholders participating in activities delivered under Australian Aid arrangements.



255


that the Office oversights act with integrity and treat people fairly, and • influence enduring systemic improvement in public administration in Australia and the region.

Purposes • provide assurance that the Australian Government entities and prescribed private sector organisations that the Office oversights, act with integrity and treat people fairly

• influence enduring systemic improvement in public administration in Australia and the region.



256





The Entity Resource Statement (Table 1.1) provides a consolidated view of the resources available to the Office in 2018-19. This includes equity injections (provided as a Departmental Capital Budget) and appropriations receivable. The Comprehensive Income Statement (Table 3.2.1) shows only the operating appropriation provided in 2018-19.

3.1.2 Explanatory notes and analysis of budgeted financial statements Comprehensive Income Statement

The Office is budgeting for a break-even operating result, adjusted for depreciation and amortisation expense in 2018-19 and the forward estimate years. There will be an increase in employee costs and supplier costs in 2018-19 in line with the new and expanded functions, for: Vocational Education and Training Student Loan Ombudsman, coordinating domestic oversight arrangements for the ratification of OPCAT, the Private Health Insurance Ombudsman role and the Defence Force Ombudsman.

Supplier and employee expenses will continue to match the level of appropriation.


The Office’s budgeted net asset position at 30 June 2019 is estimated to be $5.41million.


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 Office’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 2018-19


257

is estimated to be $0.8 million. In addition, the Office forecasts spending a further $2.4 million on capital works over the forward estimates.


258

3.2. Budgeted financial statements tables


(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.


2017-18 Estimated

actual$'000

2018-19Budget

$'000


$'000


$'000


$'000EXPENSES

Employee benefits 25,126 27,038 24,874 23,839 24,545Suppliers 10,018 10,574 8,899 8,523 9,341Depreciation and amortisation (a) 1,077 950 970 1,000 1,000



11,360 2,330 1,424 1,165 1,200


Other 54 54 54 54 54Total gains 54 54 54 54 54Total own-source income 11,414 2,384 1,478 1,219 1,254Net (cost of)/contribution by services (24,807) (36,178) (33,265) (32,143) (33,632)

Revenue from Government 23,730 35,228 32,295 31,143 32,632Surplus/(deficit) attributable to the Australian Government (1,077) (950) (970) (1,000) (1,000)Total comprehensive income/(loss) (1,077) (950) (970) (1,000) (1,000)Total comprehensive income/(loss) attributable to the Australian Government (1,077) (950) (970) (1,000) (1,000)


$'0002018-19

$'0002019-20

$'0002020-21

$'0002021-22


less depreciation/amortisation expenses previously funded through revenue appropriations (a) 1,077 950 970 1,000 1,000

Total comprehensive income/(loss) - as per the statement of comprehensive income (1,077) (950) (970) (1,000) (1,000)


259



2017-18 Estimated

actual$'000

2018-19Budget

$'000


$'000


$'000





Property, plant and equipment 2,952 3,049 3,056 2,954 2,863Intangibles 609 492 331 253 176Other non-financial assets 335 335 335 335 335



Suppliers 793 780 775 775 775Other payables 4,020 3,733 3,417 3,417 3,417





(4,825) (5,737) (6,638) (7,638) (8,638)



260



Retainedearnings

$'000

Assetrevaluation

reserve$'000


Totalequity



(4,825) 1,069 9,262 5,506


Surplus/(deficit) for the period (950) - - (950)Total comprehensive income (950) - - (950)Transactions with owners

Distributions to ownersOther 38 - - 38

Contributions by ownersDepartmental Capital Budget (DCB) - - 817 817

Sub-total transactions with owners 38 - 817 855Estimated closing balance as at 30 June 2019 (5,737) 1,069 10,079 5,411Closing balance attributable to the Australian Government (5,737) 1,069 10,079 5,411


261



2017-18 Estimated

actual$'000

2018-19Budget

$'000


$'000


$'000




11,360 2,329 1,424 1,165 1,200

Net GST received 1 2 1 - -Other (22) (6) - - -


Employees 25,061 27,013 24,838 23,839 24,545Suppliers 9,926 10,608 8,781 8,469 9,287Other 221 281 316 - -



821 817 816 820 832

Total cash used 821 817 816 820 832Net cash from/(used by) investing activities (821) (817) (816) (820) (832)FINANCING ACTIVITIESCash received

Contributed equity 821 817 816 820 832Total cash received 821 817 816 820 832Net cash from/(used by) financing activities 821 817 816 820 832Net increase/(decrease) in cash held - - - - -


198 198 198 198 198



262




2017-18 Estimated

actual$'000

2018-19Budget

$'000


$'000


$'000




Purchase of non-financial assets (821) (817) (816) (820) (832)Total items (821) (817) (816) (820) (832)PURCHASE OF NON-FINANCIAL ASSETS


(821) (817) (816) (820) (832)

TOTAL (821) (817) (816) (820) (832)RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE

Total purchases 821 817 816 820 832Total cash used to acquire assets 821 817 816 820 832


263





equipment$'000

Computersoftw are

andintangibles

$'000

Total

$'000As at 1 July 2018

Gross book value 5,558 3,172 8,730Accumulated depreciation/amortisation and impairment (2,606) (2,563) (5,169)

Opening net book balance 2,952 609 3,561Capital asset additions

Estimated expenditure on new or replacement assetsBy purchase - appropriation ordinary annual services (a) 661 156 817Total additions 661 156 817Other movementsOther 113 - 113Depreciation/amortisation expense (677) (273) (950)Total other movements (564) (273) (837)

Closing net book balance 3,049 492 3,541

265

OFFICE OF THE INSPECTOR-GENERAL OF INTELLIGENCE AND

SECURITY


267

OFFICE OF THE INSPECTOR-GENERAL OF INTELLIGENCE AND SECURITY




269

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 currently has specialised review mechanisms for the following agencies: • 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)

Additional funding has been provided to implement the recommendation of the 2017 Independent Intelligence Review to expand the jurisdiction of OIGIS to oversee the intelligence functions of four additional agencies: • Australian Federal Police (AFP)

• Australian Criminal Intelligence Commission (ACIC)

• Department of Home Affairs (DHA)

• Australian Transaction Reports and Analysis Centre (AUSTRAC)

Oversight of the intelligence functions of these four additional agencies is contingent on legislative change. OIGIS undertakes proactive inspections; formal inquiries either ‘own motion’, in 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. 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

270

administration, and, recognising the strong public interest in intelligence and security matters, the need to establish and maintain the credibility of oversight. Accordingly the

OIGIS Budget Statements

271

office will continue to make public as much of its work as is possible within appropriate security constraints.


272






Table 1.1: Entity OIGIS resource statement — Budget estimates for 2018-19 as at Budget May 2018

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) 2018-19. (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


2017-18 Estimated

actual $'000

2018-19 Estimate

$'000

DepartmentalAnnual appropriations - ordinary annual services (a) Prior year appropriations available 3,827 18,818 Departmental appropriation (b) 6,819 9,642 s74 Retained revenue receipts (c) 127 127 Departmental capital budget (d) 11,585 275 Total departmental annual appropriations 22,358 28,862 Total departmental resourcing 22,358 28,862 Total resourcing for entity OIGIS 22,358 28,862



273

1.3 BUDGET MEASURES

OIGIS has no budget measures in the 2018-19 Budget.


274




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.


275


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.





amortisation expenses, make good expenses, audit fees, IT 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.

2017-18 Estimated

actual$'000

2018-19Budget

$'000


$'000


$'000


$'000Program 1.1: Office of the Inspector-General of Intelligence and SecurityDepartmental expenses

Departmental appropriation 6,819 9,642 12,356 11,924 12,103s74 Retained revenue receipts (a) - - - - -Expenses not requiring appropriation in the Budget year (b) 166 1,851 2,453 2,684 1,908



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.


276


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– Office of the Inspector-General of Intelligence and Security The objectives of this program are to meet the responsibilities and exercise the functions outlined in the Inspector-General of Intelligence and Security Act 1986 and in other relevant legislation, and to conduct activities to facilitate the role of providing independent assurance as to whether Australia’s intelligence agencies are acting legally and with propriety.

Delivery • Conducting inquiries as appropriate (which may be ‘own motion’, in response to complaints or referrals, or at the request of intelligence agency ministers or the Prime Minister)

• Undertaking comprehensive inspection and visit programs to monitor and review intelligence agencies’ operational activity

• Providing effective and timely responses to complaints or referrals received from members of the public, Ministers or members of parliament.

• Facilitating the investigation of public interest disclosures relating to intelligence agencies

• Providing information to parliamentary committees and others on oversight issues relating to intelligence agency powers and functions

• Providing evidence to the Administrative Appeals Tribunal and the Information Commissioner as required under relevant legislation

• Undertaking presentations to new and existing employees of intelligence agencies to ensure an awareness and understanding of their responsibilities and accountability

• Liaising with other accountability and integrity agencies on issues of mutual interest



2017-18 There are four key performance indicators: • Range of inspection work undertaken • Finalisation of complaints in a timely

manner • Level of acceptance by intelligence

agencies of conclusions and recommendations of inquiries conducted

• Extent to which there has been change within the intelligence agencies as a result of activities of OIGIS.

Performance will be measured by both quantitative and qualitative information.

• Inspection of at least 75% of each agency’s activity categories

• 90% of complaints acknowledged within five business days, and 85% of visa-related complaints finalised within two weeks

• 100% of inquiry recommendations accepted

• 100% of inquiry recommendations implemented

• Completion of at least 15 outreach activities per year.


277

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


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.


278




3.1.1 Differences between entity resourcing and financial statements The Entity Resource Statement (Table 1.1) provides a consolidated view of all the resources available to the entity in 2018-19. 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 2018-19.



OIGIS is budgeting for a break-even operating result, adjusted for depreciation and amortisation expense, in 2018-19 and the forward years. Additional funding was received during 2017-18 to implement recommendations of the 2017 Independent Intelligence Review to enable the OIGIS to effectively oversee the ten agencies of the National Intelligence Community and enhance its ability to maintain oversight of the additional powers granted to the AIC agencies in recent years. The most significant component of the operating expenditure is employee related. This reflects the nature of the entity’s activities and functions as well as the expansion of the office from 17 to 55 FTE by 2019-20. Other significant new operating expenses are expected to include annual ICT operating costs, office lease expense/contribution and security guarding services. Ongoing expenses such as travel and security clearance fees will also increase with the expansion of the office and the need to oversee geographically dispersed agencies.

Planned significant capital expenditure on classified ICT systems and secure fit-out costs account for the significant increase in the depreciation and amortisation expense.


The office’s non-financial assets will increase significantly with capital expenditure to include classified ICT systems and secure fit-out costs.


279

Employee provisions will also increase significantly with the increased staffing level of the office.


Cash holdings have increased to support the increase in supplier and employee related expenses.


The capital budget for 2018-19 is $0.275 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.


280





2017-18 Estimated

actual$'000

2018-19Budget

$'000


$'000


$'000


$'000EXPENSES

Employee benefits 4,702 7,252 9,436 9,576 9,800Suppliers 2,244 2,517 3,047 2,475 2,430Depreciation and amortisation (a) 39 1,724 2,326 2,557 1,781Write-down and impairment of assets - - - - -Other expenses - - - - -


Other 127 127 127 127 127Total own-source revenue 127 127 127 127 127Net (cost of)/contribution by services (6,858) (11,366) (14,682) (14,481) (13,884)

Revenue from Government 6,819 9,642 12,356 11,924 12,103Surplus/(deficit) attributable to the Australian Government (39) (1,724) (2,326) (2,557) (1,781)OTHER COMPREHENSIVE INCOME

Changes in asset revaluation surplusTotal other comprehensive income - - - - -Total comprehensive income/(loss) (39) (1,724) (2,326) (2,557) (1,781)Total comprehensive income/(loss) attributable to the Australian Government (39) (1,724) (2,326) (2,557) (1,781)


$'0002018-19

$'0002019-20

$'0002020-21

$'0002021-22


less depreciation/amortisation expenses previously funded through revenue appropriations (a) 39 1,724 2,326 2,557 1,781

Total comprehensive income/(loss) - as per the statement of comprehensive income (39) (1,724) (2,326) (2,557) (1,781)


281



2017-18 Estimated

actual$'000

2018-19Budget

$'000


$'000


$'000


$'000

ASSETSFinancial assets

Cash and cash equivalents 450 450 450 450 450Trade and other receivables 3 3 3 3 3Appropriations Receivable 5,151 5,744 6,244 6,745 6,745


Land and buildingsProperty, plant and equipment 11,660 10,211 10,368 8,812 7,306







Contributed equity 12,113 12,388 14,871 15,873 16,148Reserves 22 22 22 22 22Retained surplus (accumulated deficit) 2,572 848 (1,478) (4,035) (5,816)

Total equity 14,707 13,258 13,415 11,860 10,354


282



Retainedearnings

$'000

Assetrevaluation

reserve$'000


Totalequity

$'000

Opening balance as at 1 July 2018Balance carried forward from previous period 2,572 22 12,113 14,707

Adjusted opening balance 2,572 22 12,113 14,707Comprehensive income

Other comprehensive income -Surplus/(deficit) for the period (1,724) (1,724)

Total comprehensive income (1,724) - - (1,724)of which:

Attributable to the Australian Government (1,724) (1,724)

Transactions with ownersContributions by owners

Departmental Capital Budget (DCB) - - 275 275Sub-total transactions with owners - - 275 275Estimated closing balance as at 30 June 2019 848 22 12,388 13,258Closing balance attributable to the Australian Government 848 22 12,388 13,258


283



2017-18 Estimated

actual$'000

2018-19Budget

$'000


$'000


$'000


$'000

OPERATING ACTIVITIESCash received

Appropriations 5,494 9,049 11,856 11,423 12,103Other 127 127 127 127 127


Employees 4,202 6,327 8,936 9,076 9,800Suppliers 1,194 2,849 3,047 2,475 2,430Other - - - - -

Total cash used 5,396 9,176 11,983 11,551 12,230Net cash from/(used by) operating activities 225 - - (1) -INVESTING ACTIVITIESCash used

Purchase of property, plant and equipment and intangibles 11,560 275 2,483 1,001 275

Total cash used 11,560 275 2,483 1,001 275Net cash from/(used by) investing activities (11,560) (275) (2,483) (1,001) (275)FINANCING ACTIVITIESCash received

Contributed equity 11,585 275 2,483 1,002 275Total cash received 11,585 275 2,483 1,002 275Net cash from/(used by) financing activities 11,585 275 2,483 1,002 275Net increase/(decrease) in cash held 250 - - - -




284




2017-18 Estimated

actual$'000

2018-19Budget

$'000


$'000


$'000


$'000

NEW CAPITAL APPROPRIATIONSCapital budget - Bill 1 (DCB) 11,585 275 2,483 1,002 275

Total new capital appropriations 11,585 275 2,483 1,002 275Provided for:

Purchase of non-financial assets 11,585 275 2,483 1,002 275Total items 11,585 275 2,483 1,002 275PURCHASE OF NON-FINANCIAL ASSETS

Funded by capital appropriation - DCB (a) 11,610 275 2,483 1,002 275

TOTAL 11,610 275 2,483 1,002 275RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE

Total purchases 11,610 275 2,483 1,001 275Total cash used to acquire assets 11,610 275 2,483 1,001 275


285





equipment$'000

Total

$'000As at 1 July 2018

Gross book value 11,705 11,705Accumulated depreciation/amortisation and impairment (45) (45)

Opening net book balance 11,660 11,660Capital asset additions

Estimated expenditure on new or replacement assetsBy purchase - appropriation ordinary annual services (a) 275 275Total additions 275 275Other movementsDepreciation/amortisation expense (1,724) (1,724)Total other movements (1,724) (1,724)

As at 30 June 2019Gross book value 11,980 11,980Accumulated depreciation/ amortisation and impairment (1,769) (1,769)

Closing net book balance 10,211 10,211

287

OFFICE OF THE OFFICIAL SECRETARY TO THE GOVERNOR-

GENERAL


289

OFFICE OF THE OFFICIAL SECRETARY TO THE GOVERNOR-GENERAL




291

OFFICE OF THE OFFICIAL SECRETARY TO THE GOVERNOR-GENERAL



The planned outcome for the Office of the Official Secretary to the Governor-General (OOSGG) is the facilitation of the performance of the Governor-General’s role through the organisation and management of official duties, management and maintenance of the official household and property, and administration of the Australian Honours and Awards system.

The OOSGG delivers its planned outcome through one program, being ‘Support for the Governor-General and Official Functions’.

The OOSGG’s role is to support the Governor-General to enable him to perform official duties, including support in connection with official functions, the management and maintenance of Government House in Canberra and Admiralty House in Sydney, and the effective administration of the Australian Honours and Awards system.


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



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.

OOSGG Budget Statements

292

Table 1.1: OOSGG resource statement — Budget estimates for 2018-19 as at Budget May 2018

2017-18 Estimated

actual $'000

2018-19 Estimate

$'000

Departmental Annual appropriations - ordinary annual services (a) Prior year appropriations available 3,326 3,507 Departmental appropriation (b) 10,932 12,239 Departmental capital budget (c) 391 390 Total departmental annual appropriations 14,649 16,136 Total departmental resourcing 14,649 16,136 Administered Annual appropriations - ordinary annual services (a) Outcome 1 1,509 1,547 Administered capital budget (d) 3,314 2,684 Total administered annual appropriations 4,823 4,231 Total administered special appropriations 425 425 Total administered resourcing 5,248 4,656 Total resourcing for OOSGG 19,897 20,792 2017-18 2018-19 Average staffing level (number) 80 80 Prepared on a resourcing (i.e. 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) 2018-19. (b) Excludes departmental capital budget (DCB). (c) Departmental capital budgets are not separately identified in Appropriation Bill (No.1) and form part of ordinary annual services items. Please refer to Table 3.5 for further details. For accounting purposes, this amount has been designated as a 'contribution by owner'. (d) 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'.


293

1.3 BUDGET MEASURES

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

Table 1.2: OOSGG 2018-19 Budget measures Part 1: Measures announced since the 2017-18 Mid-Year Economic and Fiscal Outlook (MYEFO)

Program 2017-18

$'000 2018-19

$'000 2019-20

$'000 2020-21

$'000 2021-22

$'000 Expense measures Governor-General – additional funding (a) 1.1

Departmental expenses - 1,354 - - -

Total - 1,354 - - - Total expense measures

Departmental - 1,354 - - -

Total - 1,354 - - - 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) Refer to Budget Paper No. 2 for further information on this measure.


294




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 the 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 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.


295


Outcome 1: The performance of the Governor-General’s role is facilitated through organisation and management of official duties, management and maintenance of the official household and property and administration of the Australian Honours and Awards system.


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

Table 2.1.1: Budgeted expenses for Outcome 1 Outcome 1: The performance of the Governor-General’s role is facilitated through organisation and management of official duties, management and maintenance of the official household and property and administration of the Australian Honours and Awards system.

2017-18 Estimated

actual $'000

2018-19 Budget

$'000


$'000


$'000


$'000

Program 1.1: Support of the Governor-General and Official Activities. Administered expenses


Special appropriations 425 425 425 425 425 Expenses not requiring

appropriation in the Budget year (a)

1,717 1,218 1,499 1,513 1,717

Administered total 3,651 3,190 3,478 3,514 3,742 Departmental expenses

Departmental appropriation 10,932 12,239 10,939 11,035 11,233 Expenses not requiring

appropriation in the Budget year (a)

453 461 457 418 442

Departmental total 11,385 12,700 11,396 11,453 11,675 Total expenses for program 1.1 15,036 15,890 14,874 14,967 15,417

2017-18 2018-19

Average staffing level (number) 80 80 (a) Expenses not requiring appropriation in the Budget year are made up of depreciation expenses, amortisation expenses, and audit fees. Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of the budget year as government priorities change.


296


Outcome 1 – The performance of the Governor-General’s role is facilitated through organisation and management of official duties, management and maintenance of the official household and property and administration of the Australian Honours and Awards system. Program 1.1 – The objective of this program is to support the Governor-General and Official Functions. It comprises two components: support for the Governor-General and administration of the Australian Honours and Awards system.

Delivery (component 1)

The program component deliverables include: • Executive support—providing advice to the Governor-General, planning, implementing and managing Their Excellencies’ forward program of engagements, and liaising with representatives of governments, related authorities, and community groups • Personal support— providing support for Their Excellencies and hospitality services for official functions • Administrative services— providing governance advice and administrative services to OOSGG and managing the Governor-General’s official residences, including maintenance of property, equipment and grounds.

Performance information (component 1)


2017-18

• The Governor-General is satisfied with the level of advice and administrative support provided that enables him to successfully perform official duties

• The Governor-General is satisfied with the management of the households

• The properties are managed in accordance with the requirements of the Environment Protection and Biodiversity Conservation Act 1999 and government policies relating to heritage properties, and with due consideration of advice provided by the National Capital Authority and other relevant authorities.

It is expected all performance criteria as outlined in the 2017-18 PBS will be met.

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


Continued on next page.


297

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 members of the Australian Defence Force.

Performance information (component 2)


2017-18 • Research and prepare nominations for consideration by the Council for the Order of Australia, the Australian Bravery Decorations Council and the National Emergency Medal Committee

• Provide secretariat support to the Australian honours advisory bodies

• Undertake the administrative tasks associated with the approval of recipients in the Australian honours system and subsequent announcement where applicable

• Procure Australian honours insignia, warrants and investiture items.

• Facilitate the approval of, and changes to, governing instruments within the Australian honours system

• Provide insignia to State/Territory Government Houses, service organisations and individuals for issue, and arrange local investitures.

• The Governor-General and other key stakeholders express satisfaction with the administration of the Australian Honours and Awards system and support provided

• Activities comply with the governing instruments for honours and awards, including the Constitution for the Order of Australia

• The medals and insignia meet design specifications, adequate stock levels are maintained and control processes are adhered to

• Ensure the accurate and timely issue of insignia and other resources for investitures and honours list announcements.

Continued on next page.


298

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

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


Purpose 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.


299





The OOSGG does not have any significant differences between entity resourcing and the financial statements.


The OOSGG is budgeting for a break-even operating result, adjusted for depreciation and amortisation expense, in 2018-19 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 2018-19, 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 $2.7 million for the Administered Capital Budget to sustain the capability and the condition of its Heritage properties.


300

Schedule of Budgeted Assets and Liabilities Administered on Behalf of Government

The value of land and buildings is expected to increase in 2018-19 and the forward years due to the completion of projects developed under the Asset Management Strategy.


301



2017-18 Estimated

actual $'000

2018-19 Budget

$'000


$'000


$'000


$'000

EXPENSES

Employee benefits 7,583 7,702 7,649 7,563 7,702 Suppliers 3,418 4,606 3,359 3,541 3,611 Depreciation and amortisation (a) 384 392 388 349 362

Total expenses 11,385 12,700 11,396 11,453 11,675 LESS:

OWN-SOURCE INCOME

Gains

Other 69 69 69 69 80 Total gains 69 69 69 69 80 Total own-source income 69 69 69 69 80 Net (cost of)/contribution by services (11,316) (12,631) (11,327) (11,384) (11,595)

Revenue from Government 10,932 12,239 10,939 11,035 11,233 Surplus/(deficit) attributable to the Australian Government (384) (392) (388) (349) (362) Total comprehensive income/(loss) (384) (392) (388) (349) (362) Total comprehensive income/(loss) attributable to the Australian Government

(384) (392) (388) (349) (362) Note: Impact of net cash appropriation arrangements

2017-18

$'000 2018-19

$'000 2019-20

$'000 2020-21

$'000 2021-22

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

- - - - - less depreciation/amortisation

expenses previously funded through revenue appropriations (a)

384 392 388 349 362 Total comprehensive income/(loss) - as per the statement of comprehensive income (384) (392) (388) (349) (362) (a) From 2010-11, the Government introduced net cash appropriation arrangements. This involved Bill 1 revenue appropriations for the depreciation/amortisation expenses of non-corporate Commonwealth entities (and select corporate Commonwealth entities) being 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.


302

Table 3.2: Budgeted departmental balance sheet (as at 30 June) 2017-18


2018-19 Budget

$'000


$'000


$'000


$'000

ASSETS

Financial assets

Cash and cash equivalents 241 241 241 241 241 Trade and other receivables 2,480 2,410 2,410 2,460 2,460


2,651

2,651

2,701

2,701 Non-financial assets

Property, plant and equipment 1,378 1,450 1,467 1,460 1,557 Intangibles 857 853 839 840 781 Other non-financial assets 89 89 89 89 89


2,392

2,395

2,389

2,427

Total assets 5,045

5,043

5,046

5,090

5,128 LIABILITIES Payables

Suppliers 502 502 502 502 502 Other payables 86 86 86 86 86

Total payables 588

588

588

588

588 Provisions



2,018

2,018

2,018

2,018


2,606

2,606

2,606

2,606

Net assets 2,439

2,437

2,440

2,484

2,522 EQUITY* Parent entity interest

Contributed equity 2,232 2,622 3,013 3,406 3,806 Reserves 558 558 558 558 558 Retained surplus (accumulated

deficit) (351) (743) (1,131) (1,480) (1,842) Total parent entity interest 2,439 2,437 2,440 2,484 2,522 Total equity 2,439 2,437 2,440 2,484 2,522 *Equity is the residual interest in assets after the deduction of liabilities. Prepared on Australian Accounting Standards basis.


303


Retained earnings

$'000

Asset revaluation

reserve $'000


Total equity

$'000


Balance carried forward from previous period (351) 558 2,232 2,439

Adjusted opening balance (351) 558 2,232 2,439 Comprehensive income

Surplus/(deficit) for the period (392) (392) Total comprehensive income (392) - - (392)

of which: Attributable to the Australian

Government (392) (392)

Transactions with owners

Contributions by owners Departmental Capital Budget

(DCB) 390 390

Sub-total transactions with owners - - 390 390 Estimated closing balance as at 30 June 2019 (743) 558 2,622 2,437 Closing balance attributable to the Australian Government (743) 558 2,622 2,437 Prepared on Australian Accounting Standards basis.


304

Table 3.4: Budgeted Departmental Statement of Cash Flows (for the period ended 30 June)

2017-18 Estimated

actual $'000

2018-19 Budget

$'000


$'000


$'000


$'000


Cash received

Appropriations 11,283 12,309 10,939 10,985 11,233 Total cash received 11,283 12,309 10,939 10,985 11,233 Cash used


Total cash used 10,903 12,239 10,939 11,035 11,233 Net cash from/(used by) operating activities 380 70 - (50) - INVESTING ACTIVITIES

Cash received

Other 391 390 391 393 400 Total cash received 391 390 391 393 400 Cash used

Purchase of property, plant and equipment and intangibles 771 460 391 343 400

Total cash used 771 460 391 343 400 Net cash from/(used by) investing activities (380) (70) - 50 - Net increase/(decrease) in cash held - - - - -


Cash and cash equivalents at the end of the reporting period 241 241 241 241 241 Prepared on Australian Accounting Standards basis.


305



2018-19 Budget

$'000


$'000


$'000


$'000


Capital budget - Bill 1 (DCB) 391 390 391 393 400 Total new capital appropriations 391 390 391 393 400 Provided for:


Funded by capital appropriation - DCB (a) 391 390 391 393 400

Funded internally from departmental resources (b) 380 70 - - -

TOTAL 771 460 391 393 400 RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE

Total purchases 771 460 391 393 400 Total cash used to acquire assets 771 460 391 393 400 (a) Does not include annual finance lease costs. Include 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; - proceeds from the sale of assets. Prepared on Australian Accounting Standards basis.


306



equipment $'000

Computer software

and intangibles

$'000

Total

$'000

As at 1 July 2018 Gross book value 2,871 1,676 4,547 Accumulated depreciation/

amortisation and impairment (1,493) (819) (2,312)

Opening net book balance 1,378 857 2,235 Capital asset additions

Estimated expenditure on new or replacement assets

By purchase - appropriation ordinary annual services (a) 390 390

By purchase - other 70 70 Total additions 390 70 460 Other movements Depreciation/amortisation expense (318) (74) (392) Total other movements (318) (74) (392)

As at 30 June 2019

Gross book value 3,261 1,746 5,007 Accumulated depreciation/

amortisation and impairment (1,811) (893) (2,704)

Closing net book balance 1,450 853 2,303 (a) 'Appropriation ordinary annual services' refers to funding provided through Appropriation Bill (No.1) 2018-19 for depreciation/amortisation expenses, DCBs or other operational expenses. Prepared on Australian Accounting Standards basis.


307


2017-18 Estimated

actual $'000

2018-19 Budget

$'000


$'000


$'000


$'000

EXPENSES

Suppliers 1,509 1,547 1,554 1,576 1,600 Personal benefits 425 425 425 425 425 Depreciation and amortisation 1,717 1,218 1,499 1,513 1,717

Total expenses administered on behalf of Government 3,651 3,190 3,478 3,514 3,742 LESS:

OWN-SOURCE INCOME

Own-source revenue

Non-taxation revenue


Total non-taxation revenue 27 27 27 30 30

Total own-source revenue administered on behalf of Government 27 27 27 30 30 Total own-sourced income administered on behalf of Government 27 27 27 30 30 Net (cost of)/contribution by services 3,624 3,163 3,451 3,484 3,712 Total comprehensive income/(loss) 3,624 3,163 3,451 3,484 3,712 Prepared on Australian Accounting Standards basis.


308


2017-18 Estimated

actual $'000

2018-19 Budget

$'000


$'000


$'000


$'000

ASSETS

Financial assets

Cash and cash equivalents 1 1 1 1 1 Trade and other receivables 97 97 97 97 97

Total financial assets 98 98 98 98 98 Non-financial assets

Land and buildings 134,331 135,472 136,424 137,382 138,320 Property, plant and equipment 2,161 2,486 2,656 2,819 3,039 Inventories 1,614 1,614 1,614 1,614 1,614

Total non-financial assets 138,106 139,572 140,694 141,815 142,973 Total assets administered on behalf of Government 138,204 139,670 140,792 141,913 143,071

LIABILITIES

Payables

Suppliers 102 102 102 102 102 Total payables 102 102 102 102 102 Total liabilities administered on behalf of Government 102 102 102 102 102

Net assets/(liabilities) 138,102 139,568 140,690 141,811 142,969 Prepared on Australian Accounting Standards basis.


309


2017-18 Estimated

actual $'000

2018-19 Budget

$'000


$'000


$'000


$'000


Cash received

Sales of goods and rendering of services 27 27 27 30 30

Total cash received 27 27 27 30 30 Cash used

Personal benefits 425 425 425 425 425 Suppliers 1,516 1,547 1,554 1,576 1,600

Total cash used 1,941 1,972 1,979 2,001 2,025 Net cash from/(used by) operating activities (1,914) (1,945) (1,952) (1,971) (1,995)

INVESTING ACTIVITIES

Cash received

Other 3,314 2,684 2,621 2,634 2,875 Total cash received 3,314 2,684 2,621 2,634 2,875 Cash used


Total cash used 3,314 2,684 2,621 2,634 2,875 Net cash from/(used by) investing activities - - - - - Net increase/(decrease) in cash held (1,914) (1,945) (1,952) (1,971) (1,995)

Cash and cash equivalents at beginning of reporting period 1 1 1 1 1


- Appropriations 1,934 1,972 1,979 2,001 2,025 Total cash from Official Public

Account 1,934 1,972 1,979 2,001 2,025 Cash to Official Public Account

for:

- Appropriations (20) (27) (27) (30) (30) Total cash to Official Public

Account (20) (27) (27) (30) (30) Cash and cash equivalents at end of reporting period 1 1 1 1 1 Prepared on Australian Accounting Standards basis.


310

Table 3.10: Administered capital budget statement (for the period ended 30 June) 2017-18


2018-19 Budget

$'000


$'000


$'000


$'000


Capital budget - Bill 1 (ACB) 3,314 2,684 2,621 2,634 2,875 Total new capital appropriations 3,314 2,684 2,621 2,634 2,875 Provided for:

Purchase of non-financial assets 3,314 2,684 2,621 2,634 2,875 Total items 3,314 2,684 2,621 2,634 2,875 PURCHASE OF NON-FINANCIAL ASSETS

Funded by capital appropriation - ACB (a) 3,314 2,684 2,621 2,634 2,875


Total accrual purchases 3,314 2,684 2,621 2,634 2,875 Total cash used to acquire assets 3,314 2,684 2,621 2,634 2,875 (a) Does not include annual finance lease costs. Includes purchases from current and previous years' administered capital budgets (ACBs). Prepared on Australian Accounting Standards basis.


311

Table 3.11: Statement of administered asset movements (Budget year 2018-19)

Land

$'000

Buildings

$'000


equipment $'000

Total

$'000 As at 1 July 2018

Gross book value 100,500 38,990 2,464 141,954 Accumulated depreciation/amortisation

and impairment - (5,159) (303) (5,462) Opening net book balance 100,500 33,831 2,161 136,492

CAPITAL ASSET ADDITIONS Estimated expenditure on new or

replacement assets By purchase - appropriation ordinary

annual services (a) - 2,295 389 2,684 Total additions - 2,295 389 2,684 Other movements -

Depreciation/amortisation expense - (1,154) (64) (1,218) Total other movements - (1,154) (64) (1,218)

As at 30 June 2019 Gross book value 100,500 41,285 2,853 144,638 Accumulated depreciation/amortisation

and impairment - (6,313) (367) (6,680) Closing net book balance 100,500 34,972 2,486 137,958 (a) 'Appropriation ordinary annual services' refers to funding provided through Appropriation Bill (No.1) 2018-19 for depreciation/amortisation expenses, ACBs or other operational expenses. Prepared on Australian Accounting Standards basis.

313

TORRES STRAIT REGIONAL AUTHORITY


315





317




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 2019–22 (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, wagel goeygooyika 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

318

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.


319


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 2018-19 as at Budget May 2018

2017-18 Estimated

actual $'000

2018-19 Estimate

$'000

Opening balance/cash reserves at 1 July 5,739 7,107 Funds from Government

Annual appropriations - ordinary annual services (a) Outcome 1 36,056 35,883

Annual appropriations - other services (b) Equity injection 1,000 1,989

Total annual appropriations 37,056 37,872 Amounts received from related entities

Amounts from portfolio department (c) 12,828 9,078 Total amounts received from related entities 12,828 9,078 Total funds from Government 49,884 46,950 Funds from other sources

Interest 750 820 Sale of goods and services 505 505 Other 1,347 1,107

Total funds from other sources 2,602 2,432 Total net resourcing for Torres Strait Regional Authority 58,225 56,489 2017-18 2018-19 Average staffing level (number) 154 154 Prepared on a resourcing (i.e. 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) 2018-19 (b) Appropriation Bill (No. 2) 2018-19 (c) Funding provided by the portfolio department that is not specified within the Annual Appropriation Bills.


320

1.3 BUDGET MEASURES

TSRA has no budget measures in the 2018-19 Budget.


321




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/news-and-resources/annual-reports/annual-report-2016-2017.

http://www.tsra.gov.au/__data/assets/pdf_file/0005/8735/TSRA-2016-2017-Corporate-Plan-Final.PDF

http://www.tsra.gov.au/__data/assets/pdf_file/0005/8735/TSRA-2016-2017-Corporate-Plan-Final.PDF

http://www.tsra.gov.au/news-and-resources/annual-reports/annual-report-2016-2017

http://www.tsra.gov.au/news-and-resources/annual-reports/annual-report-2016-2017


322


Outcome 1: Progress towards Closing the Gap for Torres Strait Islander and Aboriginal people living in the Torres Strait Region through development planning, coordination, sustainable resource management, and preservation and promotion of Indigenous culture.


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

Table 2.1.1 Budgeted expenses for Outcome 1

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.

2017-18 Estimated

actual $'000

2018-19 Budget

$'000


$'000


$'000


$'000

Program 1.1: Torres Strait Regional Development Revenue from Government


Payment from related entities 12,828 9,078 9,078 9,078 9,078 Revenues from other independent sources 2,752 2,582 2,083 2,083 2,083

Total expenses for Program 1.1 51,636 47,543 47,092 47,389 47,649 Outcome 1 totals by resource type Revenue from Government


Payment from related entities 12,828 9,078 9,078 9,078 9,078 Revenues from other independent sources 2,752 2,582 2,083 2,083 2,083

Total expenses for Outcome 1 51,636 47,543 47,092 47,389 47,649 2017-18 2018-19 Average staffing level (number) 154 154 Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of the budget year as government priorities change.


323



Outcome 1: Progress towards Closing the Gap for Torres Strait Islander and Aboriginal people living in the Torres Strait Region through development planning, coordination, sustainable resource management, and preservation and promotion of Indigenous culture. Program 1.1 – The objective of this program is currently delivered through eight activities, which are derived from the Development Plan

Delivery Increasing economic development by: • improving commercial capability of Torres Strait Islander and Aboriginal people in the

region • providing access to capital for commercially viable businesses. Improving the use of fisheries by: • Implementing commercially and environmentally sustainable strategies to increase

Torres Strait Islander and Aboriginal ownership of the local fishing industry. Maintaining culture, art and heritage by: • supporting an active and sustainable arts and craft industry in the region • integrating cultural values and protocols into service planning and management

practice • preserving and promoting cultural heritage and histories of the region. Improving Native Title claim outcomes by: • assisting with negotiating successful Future Acts and Indigenous Land Use Agreements • assisting with Native Title claims • supporting 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

resources • facilitating community adaptation to climate change impacts, including sea level rise • supporting community sustainable horticulture. Enhancing governance and leadership by: • improving communication, cultural competence and service delivery within a community

development framework across governments • strengthening Torres Strait Islander and Aboriginal organisational leadership and

governance. Improving Community health and safety by: • investing in whole-of-government infrastructure to support healthy homes and healthy

living environments • implementing policies to support community managed delivery of primary and public

health care services based on regional needs and priorities • improving access to affordable fresh and healthy foods • ensuring affordable home ownership is available across the region. • investing in effective community and social services • supporting law enforcement and community safety programs • ensuring communities have access to appropriate transport infrastructure.


324



2017-18 • Increase in the number of Torres Strait Islander and Aboriginal owned commercially viable businesses

• Increased availability of approved business training • Increases in catches by Torres Strait and Aboriginal Fishers

relative to total allowable catch, strengthening claims for increased ownership

• Increase in the number of emerging and professionally active artists and cultural practitioners that have access to information and support to ensure copyright and intellectual property rights

• Number of Native Title claims successfully determined • Number of Indigenous Land Use Agreements (ILUA) that have

compensation or other benefits as part of ILUA terms • Number of endorsed community based management plans for

the natural and cultural resources of the region being actively implemented

• Increase the level of engagement of elected Torres Strait Islander and Aboriginal leaders in policy development and decision-making

• Number of PBCs that achieve Office of the Registrar of Indigenous Corporations (ORIC) compliance as at 31 December each year

• Increased investment into new and existing regional environmental health infrastructure.

In addition to the criteria above: • the percentage ownership of Torres Strait Commercial

Fisheries by Torres Strait Islanders and Aboriginal People in the region

• improve regional environmental health, telecommunication and marine infrastructure.

The Benefits and Targets for each of the TSRA’s eight activity areas are set out in the TSRA’s (2014-2018) Development Plan.

2018-19 • Increase in the number of Torres Strait Islander and Aboriginal owned commercially viable businesses

• Increased availability of approved business training • Increases in catches by Torres Strait and Aboriginal Fishers

relative to total allowable catch, strengthening claims for increased ownership

• Increase in the number of emerging and professionally active artists and cultural practitioners that have access to information and support to ensure copyright and intellectual property rights

• Number of Native Title claims successfully determined • Number of Indigenous Land Use Agreements (ILUA) that have

compensation or other benefits as part of ILUA terms • Number of endorsed community based management plans for

the natural and cultural resources of the region being actively implemented

• Increase the level of engagement of elected Torres Strait Islander and Aboriginal leaders in policy development and decision-making

The Benefits and Targets for each of the TSRA’s eight activity areas are set out in the TSRA’s (2019-2022) Development Plan.


325

• Number of PBCs that achieve Office of the Registrar of Indigenous Corporations (ORIC) compliance as at 31 December each year

• Increased investment into new and existing regional environmental health infrastructure.

In addition to the criteria above: • the percentage ownership of Torres Strait Commercial

Fisheries by Torres Strait Islanders and Aboriginal People in the region

• improve regional environmental health, telecommunication and marine infrastructure.

2019-20 and beyond

As per 2018-19 The Benefits and Targets for each of the TSRA’s eight activity areas are set out in the TSRA’s (2019-2022) Development Plan.

Purposes The TSRA’s Purpose Statement, in the Corporate plan – is the same as the TSRA’s Outcome Statement above.


326





There are no differences between the TSRA’s resourcing and financial statements.

3.1.2 Explanatory notes and analysis of budgeted financial statements Departmental

This statement provides a picture of the expected financial results for the TSRA by identifying full accrual expenses and revenues, which highlights whether the TSRA is operating at a sustainable level. The TSRA is forecasting income of $47.543 million and expenditure of $47.543 million resulting in a breakeven result for the 2018–19 financial year.


The TSRA’s forecast balance sheet for the financial year ending 30 June 2019 shows the TSRA with total assets of $88.824 million and liabilities of $6.075 million, resulting in a net asset position of $82.749 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 $4.732 million for the financial year ending 30 June 2019.

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 $7.509 million on capital expenditure in the 2018-19 financial year.


327



2017-18 Estimated

actual $'000

2018-19 Budget

$'000


$'000


$'000


$'000

EXPENSES Employee benefits 17,005 17,257 17,514 17,775 18,129 Suppliers 20,748 16,403 15,695 15,729 15,635 Grants 12,588 12,588 12,588 12,590 12,590 Depreciation and amortisation 1,145 1,145 1,145 1,145 1,145 Finance costs 150 150 150 150 150



Interest 900 970 920 920 920 Grant revenue 12,828 9,078 9,078 9,078 9,078 Other 1,347 1,107 658 658 658

Total own-source revenue 15,580 11,660 11,161 11,161 11,161 Total own-source income 15,580 11,660 11,161 11,161 11,161 Net (cost of)/contribution by services (36,056) (35,883) (35,931) (36,228) (36,488)

Revenue from Government 36,056 35,883 35,931 36,228 36,488

Surplus/(deficit) attributable to the Australian Government - - - - -

Total comprehensive income/(loss) attributable to the Australian Government - - - - - Prepared on Australian Accounting Standards basis.


328

Table 3.2: Budgeted departmental Balance Sheet (as at 30 June) 2017-18


2018-19 Budget

$'000


$'000


$'000


$'000

ASSETS Financial assets

Cash and cash equivalents 7,107 4,732 2,307 1,107 1,097 Trade and other receivables 4,652 4,652 4,652 4,652 4,652 Other investments 23,169 21,169 21,169 21,169 21,169


30,553

28,128

26,928

26,918 Non-financial assets

Land and buildings 50,229 55,917 57,441 58,560 58,159 Property, plant and equipment 1,601 2,277 3,178 3,259 3,670 Other non-financial assets 77 77 77 77 77


58,271

60,696

61,896

61,906

Total assets 86,835

88,824

88,824

88,824

88,824 LIABILITIES Payables

Suppliers 1,751 1,751 1,751 1,751 1,751

Total payables 1,751

1,751

1,751

1,751

1,751 Provisions



4,324

4,324

4,324

4,324


6,075

6,075

6,075

6,075

Net assets 80,760

82,749

82,749

82,749

82,749 EQUITY* Parent entity interest

Contributed equity 1,032 3,021 3,021 3,021 3,021 Reserves 15,638 15,638 15,638 15,638 15,638 Retained surplus (accumulated

deficit) 64,090 64,090 64,090 64,090 64,090

Total parent entity interest 80,760 82,749 82,749 82,749 82,749 Total equity 80,760 82,749 82,749 82,749 82,749 *Equity is the residual interest in assets after the deduction of liabilities. Prepared on Australian Accounting Standards basis.


329


Retained earnings

$'000

Asset revaluation

reserve $'000

Other reserves

$'000


Total equity

$'000

Opening balance as at 1 July 2018 Balance carried forward from

previous period 64,090 15,638 - 1,032 80,760

Adjusted opening balance 64,090 15,638 - 1,032 80,760 Comprehensive income

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

Equity injection – Appropriation 1,989 1,989 Sub-total transactions with owners - - - 1,989 1,989 Estimated closing balance as at 30 June 2019 64,090 15,638 - 3,021 82,749 Closing balance attributable to the Australian Government 64,090 15,638 - 3,021 82,749 Prepared on Australian Accounting Standards basis.


330


2017-18 Estimated

actual $'000

2018-19 Budget

$'000


$'000


$'000


$'000

OPERATING ACTIVITIES Cash received

Appropriations 36,056 35,883 35,931 36,228 36,488 Sale of goods and rendering of

services 505 505 505 505 505

Interest 750 820 770 770 770 Grants 12,828 9,078 9,078 9,078 9,078 Other 1,347 1,107 658 658 658

Total cash received 51,486 47,393 46,942 47,239 47,499 Cash used

Employees 17,005 17,257 17,514 17,775 18,129 Suppliers 20,748 16,403 15,695 15,729 15,635 Other 12,588 12,588 12,588 12,590 12,590

Total cash used 50,341 46,248 45,797 46,094 46,354 Net cash from/(used by) operating activities 1,145 1,145 1,145 1,145 1,145 INVESTING ACTIVITIES Cash received

Investments 2,050 2,000 - - - Total cash received 2,050 2,000 - - - Cash used


Total cash used 2,827 7,509 3,570 2,345 1,155 Net cash from/(used by) investing activities (777) (5,509) (3,570) (2,345) (1,155) FINANCING ACTIVITIES Cash received

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 1,368 (2,375) (2,425) (1,200) (10)


Cash and cash equivalents at the end of the reporting period 7,107 4,732 2,307 1,107 1,097 Prepared on Australian Accounting Standards basis.


331



2018-19 Budget

$'000


$'000


$'000


$'000

NEW CAPITAL APPROPRIATIONS 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 - - - PURCHASE OF NON-FINANCIAL ASSETS

Funded by capital appropriations (a) 750 2,239 - - - Funded internally from departmental

resources (b) 2,077 5,270 3,570 2,345 1,155


Total purchases 2,827 7,509 3,570 2,345 1,155 Total cash used to acquire assets 2,827 7,509 3,570 2,345 1,155 (a) Includes both current Bill 2 and prior Act 2/4/6 appropriations and special capital appropriations. (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.


332


Land

$'000

Buildings

$'000


equipment $'000

Heritage and

cultural

$'000

Total

$'000

As at 1 July 2018 Gross book value 11,805 39,325 4,634 77 55,841 Accumulated depreciation/

amortisation and impairment - (901) (3,033) - (3,934) Opening net book balance 11,805 38,424 1,601 77 51,907 Capital asset additions


By purchase - appropriation equity (a) 1,989 1,989 By purchase - appropriation

ordinary annual services (b) - 4,600 920 - 5,520 Total additions - 6,589 920 - 7,509 Other movements Depreciation/amortisation expense - (901) (244) - (1,145) Total other movements - (901) (244) - (1,145)

As at 30 June 2019 Gross book value 11,805 45,914 5,554 77 63,350 Accumulated depreciation/

amortisation and impairment - (1,802) (3,277) - (5,079) Closing net book balance 11,805 44,112 2,277 77 58,271 (a) 'Appropriation equity' refers to equity injections appropriations provided through Appropriation Bill (No. 2) 2018-19, including CDABs. (b) 'Appropriation ordinary annual services' refers to funding provided through Appropriation Bill (No.1) 2018-19 for depreciation/amortisation expenses, DCBs or other operational expenses. Prepared on Australian Accounting Standards basis.

333

WORKPLACE GENDER EQUALITY AGENCY


335





337




The Workplace Gender Equality Agency (WGEA) is established by the Workplace Gender Equality Act 2012 (the Act) and is charged with promoting and improving gender equality in Australian workplaces.

The Act requires all non-public sector employers with 100 or more employees to submit a report to the Agency annually against six gender equality indicators (GEIs). They are:

• GEI 1: gender composition of the workforce

• GEI 2: gender composition of governing bodies

• GEI 3: equal remuneration between women and men

• GEI 4: availability and utility of employment terms, conditions and practices relating to flexible working arrangements for employees and to working arrangements supporting employees with family or caring responsibilities

• GEI 5: consultation with employees on issues concerning gender equality in the workplace

• GEI 6: sex-based harassment and discrimination.

Monitoring and reporting on the progress of Australian workplaces against these indicators is important in driving cultural change and improving workplace gender equality.

As we prepare for the fifth full year of reporting under the Act, measurable change is underway. The gender pay gap is declining, the representation of women in senior management roles is increasing and more employers are prioritising gender equality as a business priority. Data for the 2016–17 reporting period showed a sharp uptick in employer action in a range of areas from policies to support gender equality in promotions and talent identification, to flexible working and pay equity. The proportion of organisations reporting to the Agency that they have formal pay equity objectives in their remuneration policy or strategy has doubled over four years of reporting data, with a sharp rise in employers conducting a gender pay gap analysis in the 12 months between 2015–16 and 2016–17.

WGEA Budget Statements

338

The Agency’s growing dataset is a valuable national resource, with rich information on the status of women and men in over 11,000 organisations covering about four million employees. This data underpins initiatives to promote and improve workplace gender equality through:

• the annual publication of key findings in Australia’s gender equality scorecard

• the publication of organisation-specific public reports, which provide information on a range of gender equality policies, strategies and practices for reporting organisations

• providing each employer with a confidential customised competitor analysis benchmark report

• the Agency’s Data Explorer—an interactive tool which allows the public to drill down into the Agency’s data and examine gender equality indicators by industry

• research partnerships to glean further insights from the data into drivers of improved gender equality outcomes

• an extensive public speaking program presenting data insights

• the development of educational tools and resources and delivery of educational workshops and events

• the WGEA Employer of Choice for Gender Equality citation recognising leading practice

• the Pay Equity Ambassador program, building a network of business leaders advocating for business commitment to pay equity

• extensive engagement with business, government and the community to drive public awareness and debate of gender equality issues.

The strategic priorities of WGEA in 2018–19 and the forward years are to increase our impact and reach, realise the potential of our data and to develop our team.

The Agency believes Australia is well positioned to capitalise on the economic benefits that improved workplace gender equality can deliver and looks forward to continuing to work towards the vision that women and men are equally represented, valued and rewarded in Australian workplaces.

More information about the Agency is available on its website, www.wgea.gov.au where the WGEA Corporate Plan is also published.


339




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


Table 1.1: Workplace Gender Equality Agency resource statement—Budget estimates for 2018–19 as at Budget May 2018

2017–18 Estimated

actual $'000

2018–19 Estimate

$'000

Departmental Annual appropriations—ordinary annual services Prior year appropriations available (a) 1,129 1,129 Departmental appropriation (b) 4,875 4,856 s74 Retained revenue receipts (c) 100 100 Departmental capital budget (d) 201 199 Total departmental annual appropriations 6,305 6,284 Total departmental resourcing 6,305 6,284 Total resourcing for the Workplace Gender Equality Agency 6,305 6,284 2017–18 2018–19 Average staffing level (number) 30 30

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) Estimated adjusted balance carried forward from previous year. (b) Appropriation Bill (No.1) 2018–19. (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



340

1.3 BUDGET MEASURES

WGEA has no Budget measures in the 2018-19 Budget.


341




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 the WGEA can be found at: www.wgea.gov.au/about-wgea/accountability-and-reporting-documents.

The most recent annual performance statement can be found at: www.wgea.gov.au/accountability-and-reporting-documents/annual-reports.

http://www.wgea.gov.au/about-wgea/accountability-and-reporting-documents

http://www.wgea.gov.au/accountability-and-reporting-documents/annual-reports


342


Outcome 1: Promote and improve gender equality in Australian workplaces including through the provision of advice and assistance to employers and the assessment and measurement of workplace gender data.



Table 2.1.1: Budgeted expenses for Outcome 1 Outcome 1: Promote and improve gender equality in Australian workplaces including through the provision of advice and assistance to employers and the assessment and measurement of workplace gender data.

2017–18


2018–19 Budget

$'000

2019–20 Forward estimate

$'000


$'000


$'000 Program 1.1: Workplace Gender Equality Departmental expenses

Departmental appropriation 4,875 4,856 4,869 4,913 4,951 s74 Retained revenue receipts (a) 100 100 100 100 100 Expenses not requiring appropriation in

the Budget year (b) 915 648 185 215 220

Departmental total 5,890 5,604 5,154 5,228 5,271 Total expenses for Program 1.1 5,890 5,604 5,154 5,228 5,271 Outcome 1 Totals by appropriation type Departmental expenses

Departmental appropriation 4,875 4,856 4,869 4,913 4,951 s74 Retained revenue receipts (a) 100 100 100 100 100 Expenses not requiring appropriation in

the Budget year (b) 915 648 185 215 220

Departmental total 5,890 5,604 5,154 5,228 5,271 Total expenses for Outcome 1 5,890 5,604 5,154 5,228 5,271

2017–18 2018–19

Average staffing level (number) 30 30 (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,

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.


343

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 2018–19 Budget measures have created new programs or materially changed existing programs.

Outcome 1—Promote and improve gender equality in Australian workplaces including through the provision of advice and assistance to employers and the assessment and measurement of workplace gender data.

Program 1.1—Workplace Gender Equality The Workplace Gender Equality Agency will deliver on Outcome 1 by assisting relevant employers to report to the Agency; educating employers on improving gender equality outcomes; promoting and contributing to understanding, acceptance and public discussion of gender equality in the Australian workplace; using gender equality data to improve workplace gender equality and fostering compliance with the reporting and transparency provisions of the Act.

Purpose The WGEA is charged with promoting and improving gender equality in Australian workplaces, including through the provision of advice and assistance to employers and the assessment and measurement of workplace gender data.

Delivery Key activities to support the purpose of the Agency are: advising and assisting employers to promote and improve gender equality in

the workplace including providing advice and assistance on the collection and analysis of workplace data

undertaking research, educational and other programs designed to promote and improve gender equality in the workplace

promoting and contributing to understanding, acceptance and public discussion of gender equality in the workplace

reviewing compliance with the Act by relevant employers.



2017–18 Increasing our impact and reach on gender equality issues through development and delivery of educational tools and resources to inform and equip

Review and refresh of educational resources and toolkits Assessment: Target on track

Realising the potential of gender equality data by mining for evidence to add value and generate insights

Establish additional research partnerships and influence the research agenda on gender equality. Assessment: Target exceeded

Communicating widely on gender equality matters in consumable forms which tell the story

Refresh of website content to include increase in case studies and result in more visits to the site. Assessment: Target on track

2018–19 Measuring the progress of gender equality in Australian workplaces through analysis of reporting data

Movement in the gender pay gap Improved gender composition in leadership


344

Outcome 1—Promote and improve gender equality in Australian workplaces including through the provision of advice and assistance to employers and the assessment and measurement of workplace gender data.

Program 1.1—Workplace Gender Equality The Workplace Gender Equality Agency will deliver on Outcome 1 by assisting relevant employers to report to the Agency; educating employers on improving gender equality outcomes; promoting and contributing to understanding, acceptance and public discussion of gender equality in the Australian workplace; using gender equality data to improve workplace gender equality and fostering compliance with the reporting and transparency provisions of the Act.

Increase in employer actions to address gender equality Analysis of five-year trends

Broadening the stakeholder base for promotion of gender equality in Australian workplaces

Increase in the number of organisations participating in the Agency’s leading practice programs Stakeholders use Agency tools and resources to promote gender equality in their own networks

Increasing our impact and reach internationally

Visits to the Agency from international delegations Interviews with international media outlets Participation in international events

2019–20 and beyond

Ensuring WGEA data collection is relevant for the workforce of the future

Confirm that gender equality indicators are relevant or enhanced and minimum standards reflect community expectations

Tailoring WGEA data analysis to its users

Increased uptake of competitor analysis benchmarks Increased visits to the WGEA data visualisation tool

Material changes to Program 1.1 resulting from the following measures: Nil


345


Section 3 presents budgeted financial statements which provide a comprehensive snapshot of entity finances for the 2018–19 budget year, including the impact of budget measures and resourcing on financial statements.



WGEA has no differences to report.


WGEA is budgeting for a break-even net cost of service for 2017-18 and the forward estimates.

Total revenue for WGEA in 2018-19 is budgeted at $5.0 million (2017-18: $5.0 million) and comprises:

• revenue from Government (appropriation funding) of $4.9 million; and

• own-source revenue of $0.1 million.

Operating expenses in 2018-19 are estimated to total $5.6 million (2017-18: $5.9 million). The reduction in operating expenses in 2018-19 is attributable to lower depreciation and amortisation expenses compared to 2017-18.

Total assets at the end of the 2018–19 year are estimated to be $1.5 million. The majority of the assets represent receivables (appropriation receivables) and intangible assets.

Total liabilities for 2018–19 are estimated at $1.3 million. The largest liability items are accrued expenses and accrued employee entitlements.


346



2017–18


2018–19 Budget

$'000


$'000


$'000


$'000 EXPENSES

Employee benefits 3,520 3,537 3,605 3,540 3,345 Suppliers 1,478 1,442 1,387 1,496 1,729 Depreciation and amortisation (a) 882 615 152 182 187 Finance costs 10 10 10 10 10


Sale of goods and rendering of services 100 100 100 100 100 Total own-source revenue 100 100 100 100 100 Gains

Other 33 33 33 33 33 Total gains 33 33 33 33 33 Total own-source income 133 133 133 133 133 Net (cost of)/contribution by services (5,757) (5,471) (5,021) (5,095) (5,138)

Revenue from Government 4,875 4,856 4,869 4,913 4,951 Surplus/(deficit) attributable to the

Australian Government (882) (615) (152) (182) (187)

OTHER COMPREHENSIVE INCOME Changes in asset revaluation surplus

Total other comprehensive income - - - - - Total comprehensive income/(loss) (882) (615) (152) (182) (187) Total comprehensive income/(loss)

attributable to the Australian Government (882) (615) (152) (182) (187)

Note: Impact of net cash appropriation arrangements

2017–18

$'000 2018–19

$'000 2019–20

$'000 2020–21

$'000 2021–22

$'000 Total comprehensive income/(loss)

excluding depreciation/amortisation expenses previously funded through revenue appropriations

- - - - -

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

882 615 152 182 187

Total comprehensive income/(loss)—as per the statement of comprehensive income (882) (615) (152) (182) (187)

(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.



347


2017–18


2018–19 Budget

$'000


$'000


$'000


$'000 ASSETS

Financial assets

Cash and cash equivalents 217 217 217 217 217 Trade and other receivables 944 944 944 944 944


Property, plant and equipment 36 64 78 64 36 Intangibles 740 296 330 364 409 Other non-financial assets 6 6 6 6 6

Total non-financial assets 782 366 414 434 451 Assets held for sale

Total assets 1,943 1,527 1,575 1,595 1,612 LIABILITIES

Payables

Suppliers 273 273 273 273 273 Other payables 25 25 25 25 25

Total payables 298 298 298 298 298 Interest bearing liabilities

Leases 22 22 22 22 22 Total interest bearing liabilities 22 22 22 22 22 Provisions

Employee provisions 543 543 543 543 543 Other provisions 412 412 412 412 412

Total provisions 955 955 955 955 955 Liabilities included in disposal groups

held for sale

Total liabilities 1,275 1,275 1,275 1,275 1,275 Net assets 668 252 300 320 337 EQUITY*

Parent entity interest

Contributed equity 4,251 4,450 4,650 4,852 5,056 Retained surplus (accumulated deficit) (3,583) (4,198) (4,350) (4,532) (4,719)

Total parent entity interest 668 252 300 320 337 Total equity 668 252 300 320 337



348

Table 3.3: Departmental statement of changes in equity—summary of movement (Budget year 2018–19)

Retained earnings

$'000

Contributed equity/capital

$'000

Total equity $'000


Balance carried forward from previous period (3,583) 4,251 668 Adjusted opening balance (3,583) 4,251 668 Comprehensive income

Other comprehensive income - Surplus/(deficit) for the period (615) - (615)

Total comprehensive income (615) - (615) of which:

Attributable to the Australian Government (615) - (615) Contributions by owners

Departmental Capital Budget (DCB) - 199 199 Sub-total transactions with owners - 199 199 Estimated closing balance as at 30 June 2019 (4,198) 4,450 252 Closing balance attributable to the Australian Government (4,198) 4,450 252



349


2017–18


2018–19 Budget

$'000


$'000


$'000


$'000 OPERATING ACTIVITIES

Cash received

Appropriations 4,875 4,856 4,869 4,913 4,951 Receipts from Government

Sale of goods and rendering of services 100 100 100 100 100 Total cash received 4,975 4,956 4,969 5,013 5,051 Cash used


Total cash used 4,975 4,956 4,969 5,013 5,051 Net cash from/(used by) operating

activities - - - - -

INVESTING ACTIVITIES

Cash used

Purchase of property, plant and equipment and intangibles 201 199 200 202 204

Total cash used 201 199 200 202 204 Net cash from/(used by) investing

activities (201) (199) (200) (202) (204)

FINANCING ACTIVITIES

Cash received

Contributed equity 201 199 200 202 204 Total cash received 201 199 200 202 204 Net cash from/(used by) financing

activities 201 199 200 202 204

Net increase/(decrease) in cash held Cash and cash equivalents at the

beginning of the reporting period 217 217 217 217 217




350


2017–18


2018–19 Budget

$'000


$'000


$'000


$'000 NEW CAPITAL APPROPRIATIONS

Capital budget—Bill 1 (DCB) 201 199 200 202 204 Total new capital appropriations 201 199 200 202 204 Provided for:


Funded by capital appropriations (a) 201 199 200 202 204 TOTAL 201 199 200 202 204 RECONCILIATION OF CASH USED TO

ACQUIRE ASSETS TO ASSET MOVEMENT TABLE

Total purchases 201 199 200 202 204 Total cash used to acquire assets 201 199 200 202 204

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



351

Table 3.6: Statement of asset movements (Budget year 2018–19)

Buildings

$'000


equipment $'000

Computer software and

intangibles $'000

Total

$'000 As at 1 July 2018

Gross book value 1,138 506 2,994 4,638 Accumulated depreciation/amortisation

and impairment (1,138) (470) (2,254) (3,862)

Opening net book balance - 36 740 776 Capital asset additions


By purchase—appropriation equity (a) - 53 146 199 Total additions - 53 146 199 Other movements Depreciation/amortisation expense - (25) (590) (615) Total other movements - (25) (590) (615)

As at 30 June 2019

Gross book value 1,138 559 3,140 4,837 Accumulated depreciation/ amortisation

and impairment (1,138) (495) (2,844) (4,477)

Closing net book balance - 64 296 360 (a) ‘Appropriation ordinary annual services’ refers to funding provided through Appropriation Bill (No. 1)

2018–19 for depreciation/amortisation expenses, DCBs or other operational expenses. Prepared on Australian Accounting Standards basis.

352

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

Glossary

353

Term Meaning territories, and for departmental or administered capital. Funding for extensions to existing programs can be included in Appropriation Bill (No. 1). Once the Bill is passed by Parliament and given Royal Assent, it becomes Appropriation Act (No. 2).

Appropriation Bills (Nos. 3 and 4)

If an amount provided in Appropriation Acts (Nos. 1 or 2) is not enough to meet approved expenditure in a financial year, supplementary appropriation may be sought in Appropriation Bills (Nos. 3 or 4). Once these Bills are passed by Parliament and given royal assent, they become the Appropriation Acts (Nos. 3 and 4). They are also commonly referred to as the Additional Estimates Bills.

Assets Future economic benefits controlled by an entity as a result of past transactions or other past events.

Average staffing level The average number of employees receiving salary/wages (or compensation in lieu of salary/wages) over a financial year, with adjustments for casual and part-time employees to show the full-time equivalent.

Budget Paper 1 (BP1) Budget Strategy and Outlook. Provides information and analysis on whole-of-government expenditure and revenue.

Budget Paper 2 (BP2) Budget Measures. Provides a description of each budget measure by portfolio.

Budget Paper 3 (BP3) Australia’s Federal Relations. Provides information and analysis on federal funding provided to the states and territories.

Budget Paper 4 (BP4) Entity Resourcing. Details total resourcing available to agencies.

Capital Expenditure Expenditure by an entity on capital projects; for example, purchasing a building.

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.

Glossary

354

Departmental Capital Budget (DCB)

Net cash appropriation arrangements involve the cessation of funding for depreciation, amortisation and make good expenses. Funding for these expenses has been replaced with a collection development and acquisition budget (CDAB) for designated collection institutions (DCIs), and departmental capital budgets (DCBs).

Departmental item Resources (assets, liabilities, revenues and expenses) that entity chief executive officers control directly. This includes outsourced activities funded and controlled by the entity. Examples of departmental items include entity running costs, accrued employee entitlements and net appropriations. A departmental item is a component of a departmental program.

Depreciation Apportionment of an asset’s capital value as an expense over its estimated useful life to take account of normal usage, obsolescence, or the passage of time.

Equity or net assets Residual interest in the assets of an entity after deduction of its liabilities.

Entity A department, agency, company or authority under the Public Governance, Performance and Accountability Act 2013 (PGPA Act) or any other Commonwealth statutory authority.

Estimated actual expenses Details of the current year’s estimated final figures as included in the Budget documentation. As the Budget is released in May each year, but the financial year does not close off until 30 June, the current year numbers that are used for comparison with Budget amounts can only be estimates.

Expenditure Spending money from the Consolidated Revenue Fund or a notional payment to a PGPA entity.

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.

Glossary

355

Expenses not requiring appropriation in the Budget year

Expenses not involving a cash flow impact are not included within the calculation of an appropriation. An example of such an event is goods or services received free of charge that are then expensed; for example, ANAO audit services. The ANAO does not charge for audit services; however, the expense must be recognised. Similarly, bad debts are recognised as an expense but are not recognised for the purpose of calculating appropriation amounts to be sought from Parliament.

Forward estimates period The three years following the Budget year. For example if 2015-16 is the Budget year, 2016-17 is forward year 1, 2017-18 is forward year 2 and 2018-19 is forward year 3. This period does not include the current or Budget year.

Funds Money that has been appropriated but not drawn from the Consolidated Revenue Fund.

Income Total value of resources earned or received to cover the production of goods and services.

Make good Make good is the cost of dismantling and removing an item and restoring the site on which it is located, the obligation for which an entity incurs either when the item is acquired or as a consequence of having used the item during a particular period for purposes other than to produce inventories during that period. A common example of make good in the public sector is the restoration of office premises at the end of a lease period.

Measure A new policy or savings decision of the government with financial impacts on the government’s underlying cash balance, fiscal balance, operating balance, headline cash balance, net debt or net worth. Such proposals are normally made in the context of the annual Budget, and are typically published in Budget Paper No. 2, and in the Mid-Year Economic and Fiscal Outlook (MYEFO).

Glossary

356

Mid-Year Economic and Fiscal Outlook (MYEFO)

The MYEFO provides an update of the government’s budget estimates by examining expenses and revenues in the year to date, as well as provisions for new decisions that have been taken since the Budget. The report provides updated information to allow the assessment of the government’s fiscal performance against the fiscal strategy set out in its current fiscal strategy statement.

‘Movement of Funds’ between years

A ‘movement of funds’ process is carried out twice each year in relation to un-expensed administered operating appropriations. This involves portfolio ministers submitting requests to the Finance Minister advising of timing changes to funding requirements. If agreed by the Finance Minister, there will be an increase in the amount appropriated in later year(s).

Net cash framework The net cash framework, implemented from the 2010-11 Budget, replaces funding for depreciation and amortisation expenses with a departmental capital budget (DCB) and the funding of make good expenses will cease to be paid in advance. The net cash framework applies to general government sector entities that receive funding from annual appropriations directly or via a special account, with the exception of the Department of Defence.

Non-operating Sometimes called ‘capital’ costs.

Official Public Account (OPA)

The OPA is the Australian Government’s central bank account held within the Reserve Bank of Australia. The OPA reflects the operations of the Consolidated Revenue Fund.

Operating Normally related to ongoing, or recurring expenses, such as paying salaries or making program payments.

Operating result Equals income less expenses.

Outcome An outcome is the intended result, consequence or impact of government actions on the Australian community.

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.

Glossary

357

Portfolio Budget Statements Budget related paper detailing budget initiatives and explanations of appropriations specified by outcome and program by each entity within a portfolio.

Program Activity that delivers benefits, services or transfer payments to individuals, industry and/or the community as a whole, with the aim of achieving the intended result specified in an outcome statement.

Program support The entity running costs allocated to a program. This is funded as part of the entity’s departmental appropriations.

Special account Balances existing within the CRF that are supported by standing appropriations, PGPA Act s.78, s.79 and s.80). Special accounts allow money in the CRF to be acknowledged as set-aside (hypothecated) for a particular purpose. Amounts credited to a special account can only be spent for the purposes of the special account. Special accounts can only be established by a written determination of the Finance Minister (s. 78 of the PGPA Act) or through an Act of Parliament (referred to in s. 80 of the PGPA Act).

Special appropriations (including standing appropriations)

An amount of money appropriated by a particular Act of Parliament for a specific purpose and number of years. For special appropriations, the authority to withdraw funds from the CRF does not generally cease at the end of the financial year. Standing appropriations are a subcategory consisting of ongoing special appropriations – the amount appropriated will depend on circumstances specified in the legislation.

Glossary

358

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

AIATSIS Australian Institute of Aboriginal and Torres Strait Islander Studies

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

Glossary

359

GFS Government Finance Statistics

IBA Indigenous Business Australia

ILC Indigenous Land Corporation

KPI Key Performance Indicator

MOU Memorandum of Understanding

MYEFO Mid-Year Economic and Fiscal Outlook

NADC National Australia Day Council

NLC Northern Land Council

OBS Outback Stores Pty Ltd

OCO Office of the Commonwealth Ombudsman

OIGIS Office of the Inspector-General of Intelligence and Security

ONA Office of National Assessments

OOSGG Office of the Official Secretary to the Governor-General

OPA Official Public Account

OTM Other Trust Monies

PBC Prescribed Bodies Corporate under the Native Title Act 1993 and the Native Title (Prescribed Bodies Corporate) Regulations 1999

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 WGEA

Wreck Bay Aboriginal Community Council Workplace Gender Equality Agency

portfolio budget statements 2018 - 2019

Documents