PM&C Portfolio Budget Statements 2013-14
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Portfolio Budget Statements 2013-14
BUDGET RELATED PAPER NO. 1.14
PRIME MINISTER AND CABINET PORTFOLIO
budget initiatives and explanations of
APPROPRIATIONS SPECIFIED BY OUTCOMES
AND PROGRAMS BY AGENCY
© COMMONWEALTH OF AUSTRALIA 2013
ISBN: 978-1-922098-04-7 (Print)
ISBN: 978-1-922098-05-4 (PDF)
ISBN: 978-1-922098-06-1 (RTF)
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President of the Senate
Australian Senate
Parliament House
CANBERRA ACT 2600
Speaker
House of Representatives
Parliament House
CANBERRA ACT 2600
Dear Mr President
Dear Madam Speaker
I hereby submit Portfolio Budget Statements in support of the 2013-14 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
Andrew Leigh
Abbreviations and conventions
The following notation may be used:
NEC/nec not elsewhere classified
- nil
.. not zero, but rounded to zero
na not applicable (unless otherwise specified)
nfp not for publication
$m $ million
$b $ billion
Figures in tables and in the text may be rounded. Figures in text are generally rounded to one decimal place, whereas figures in tables are generally rounded to the nearest thousand. Discrepancies in tables between totals and sums of components are due to rounding.
Enquiries
Should you have any enquiries regarding this publication please contact the Chief Financial Officer, Department of the Prime Minister and Cabinet on (02) 6271 5652.
A copy of this document can be located on the Australian Government Budget website at: .
User Guide
to the
Portfolio Budget Statements
User Guide
The purpose of the 2013-14 Portfolio Budget Statements (PB Statements) is to inform Senators and Members of Parliament of the proposed allocation of resources to Government outcomes by agencies within the portfolio. Agencies receive resources from the annual appropriations acts, special appropriations (including standing appropriations and special accounts), and revenue from other sources.
A key role of the PB Statements is to facilitate the understanding of proposed annual appropriations in Appropriation Bills No. 1 and No. 2 2013-14. In this sense the PB Statements are Budget related papers and are declared by the Appropriation Acts to be ‘relevant documents’ to the interpretation of the Acts according to section 15AB of the Acts Interpretation Act 1901.
The PB Statements provide information, explanation and justification to enable Parliament to understand the purpose of each outcome proposed in the Bills.
As required under section 12 of the Charter of Budget Honesty Act 1998, non-general government sector entities are not consolidated into the Commonwealth general government sector fiscal estimates and accordingly, these entities are not reported in the PB Statements.
Contents
Portfolio Overview 1
Prime Minister and Cabinet Portfolio Overview 3
Agency Resources and Planned Performance 11
Department of the Prime Minister and Cabinet 13
Australian National Audit Office 43
Australian Public Service Commission 71
National Mental Health Commission 101
Office of National Assessments 125
Office of the Commonwealth Ombudsman 147
Office of the Inspector-General of Intelligence and Security 167
Office of the Official Secretary to the Governor-General 187
Glossary 215
Portfolio Overview
Prime Minister and Cabinet
Portfolio Overview
The Prime Minister and Cabinet Portfolio has a unique and privileged role at the forefront of public and government administration. The principal responsibilities of the Prime Minister and Cabinet Portfolio include:
• advice to the Prime Minister across government on policy and implementation
• assistance to the Prime Minister in managing the Cabinet program
• co-ordination of government administration
• social inclusion, non-profit sector and volunteering
• national security policy co-ordination
• counter terrorism policy co-ordination
• cyber policy co-ordination
• intergovernmental relations and communications with state and territory governments
• increase awareness and adoption of best practice public sector administration
• monitoring and reporting of the mental health system
• assessments of international developments
• 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
• ensuring compliance by the Australian Intelligence Community agencies with Australian Law and ministerial directions
• provisions of support to the Governor-General to perform their official duties
The structure and outcomes of the Portfolio are depicted in diagrammatic form on pages 6-7.
The Portfolio comprises one Department of State, one Commonwealth Company and seven Prescribed Agencies.
Department of State:
• Department of the Prime Minister and Cabinet.
Commonwealth Company:
• National Australia Day Council Limited.
Prescribed Agencies:
• Australian National Audit Office
• Australian Public Service Commission
• National Mental Health Commission
• Office of National Assessments
• Office of the Commonwealth Ombudsman
• Office of the Inspector-General of Intelligence and Security
• Office of the Official Secretary to the Governor-General.
The Department of the Prime Minister and Cabinet (PM&C) is a Department of State. The principal function of PM&C is to provide support to the Prime Minister, the Cabinet, Portfolio Ministers, and Parliamentary Secretaries to achieve a coordinated and innovative approach to the development and implementation of government policies.
The National Australia Day Council Limited (NADC) is a Commonwealth Company responsible for the coordination of Australia Day celebrations across the nation and for the Australian of the Year Awards.
The Australian National Audit Office (ANAO) is a statutory body established under the Auditor-General Act 1997 that assists the Auditor-General in undertaking the performance of their functions under the Act.
The Australian Public Service Commission (APSC) is a statutory agency with a number of defined functions under the Public Service Act 1999 and has a central leadership role in providing expertise, guidance and performance monitoring. The APSC has a key role in improving the alignment and quality of APS human capital planning and management to support an efficient and effective whole of APS, fostering talent and leadership, assuring agencies’ organisational capability, embedding APS Values, supporting high ethical standards and co-ordinating workplace relations for Australian Government employment.
The National Mental Health Commission (NMHC) is an executive agency under the Public Service Act 1999. The NMHC contributes to the government’s agenda for mental health reform through an independent accountability, reporting and advisory role and through high profile, cross sectoral leadership and collaboration.
The Office of National Assessments (ONA) is a statutory agency operating under the Office of National Assessments Act 1977. The ONA provides assessments on international developments, including political, strategic and economic developments, to the Prime Minister, senior ministers and senior officials. The ONA is also responsible for coordinating and evaluating Australia’s foreign intelligence activities.
The Office of the Commonwealth Ombudsman (OCO) is an independent statutory agency established under the Ombudsman Act 1976 that ensures administrative action by Australian Government agencies is fair and accountable.
The Office of the Inspector-General of Intelligence and Security (OIGIS) is an independent statutory agency under the Inspector-General of Intelligence and Security Act 1986 that works to provide assurance that Australia’s intelligence agencies act legally and with propriety.
The Office of the Official Secretary to the Governor-General (OOSGG) is a statutory office that supports the Governor-General to enable them to perform their official duties. 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.
More details about each agency’s responsibilities appear in individual agency statements contained in these PB Statements.
Portfolio Budget Statements are not required for the National Australia Day Council Limited as it is not funded by a direct appropriation.
Figure 1: Prime Minister and Cabinet Portfolio structure and outcomes
|Prime Minister — The Hon Julia Gillard MP |
|Minister Assisting the Prime Minister on Digital Productivity — Senator the Hon Stephen Conroy |
|Minister Assisting the Prime Minister on Asian Century Policy — The Hon Dr Craig Emerson MP |
|Minister for Social Inclusion — The Hon Mark Butler MP |
|Minister Assisting the Prime Minister on Mental Health Reform — The Hon Mark Butler MP |
|Minister for the Public Service and Integrity — The Hon Mark Dreyfus QC MP |
|Cabinet Secretary — The Hon Jason Clare MP |
|Minister Assisting the Prime Minister on the Centenary of ANZAC — The Hon Warren Snowdon MP |
|Parliamentary Secretary to the Prime Minister — The Hon Dr Andrew Leigh MP |
| |
|Department of the Prime Minister and Cabinet Secretary: Dr Ian J Watt AO |
|Outcome*: Provide high quality policy advice and support to the Prime Minister, the Cabinet, Portfolio Ministers |
|and Parliamentary Secretaries including through the coordination of government activities, policy development and |
|program delivery. |
| |
|National Australia Day Council Limited Acting Chief Executive Officer: Mr Adrian Watts |
|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. |
| |
|Australian National Audit Office Auditor-General: Mr Ian McPhee PSM |
|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: Mr Stephen Sedgwick AO |
|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. |
| |
|National Mental Health Commission Chief Executive Officer: Ms Robyn Kruk AM |
|Outcome: Provide expert advice to the Australian Government and cross-sectoral leadership on the policy, programs,|
|services and systems that support mental health in Australia, including through administering the Annual National |
|Report Card on Mental Health and Suicide Prevention, undertaking performance monitoring and reporting, and |
|engaging consumers and carers. |
| |
|Office of National Assessments Director-General: Mr Allan Gyngell AO |
|Outcome: Advancement of Australia’s national interests through increased government awareness of international |
|developments affecting Australia. |
continued on next page
|Office of the Commonwealth Ombudsman Ombudsman: Mr Colin Neave |
|Outcome: Fair and accountable administrative action by Australian Government agencies by investigating complaints,|
|reviewing administrative action and inspecting statutory compliance by law enforcement agencies. |
| |
|Office of the Inspector-General of Intelligence and Security Inspector-General: Dr Vivienne Thom |
|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 Stephen Brady |
|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. |
* Reader Note: The Outcome Statement for the Department of the Prime Minister and Cabinet was amended in November 2012 to reflect the current reporting obligations to the Cabinet, Portfolio Ministers and Parliamentary Secretaries.
** Reader Note: The Australian National Audit Office’s two Outcome Statements were revised into a single Outcome Statement in January 2013 to better reflect the ANAO’s role in providing assurance to the Government, Executive and public.
Portfolio resources
Table 1 shows the total new resources provided to the portfolio in the 2013-14 Budget year, by agency.
Table 1: Portfolio Resources 2013-14
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Continued on next page
Table 1: Portfolio Resources 2013-14 (continued)
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1. Amounts transferred within the Portfolio include grant payments made to the National Australia Day Council Limited ($3.4m) by the Department of the Prime Minister and Cabinet.
Agency Resources and
Planned Performance
Department of the Prime Minister and Cabinet 13
Australian National Audit Office 43
Australian Public Service Commission 71
National Mental Health Commission 101
Office of National Assessments 125
Office of the Commonwealth Ombudsman 147
Office of the Inspector-General of Intelligence and Security 167
Office of the Official Secretary to the Governor-General 187
Department of the Prime Minister and Cabinet
Agency resources and planned performance
Department of the Prime Minister and Cabinet
Section 1: Agency overview and resources 17
1.1 Strategic direction statement 17
1.2 Agency resource statement 18
1.3 Budget measures 20
1.4 Revised program structure and disclosure 21
Section 2: Outcomes and planned performance 22
2.1 Outcomes and performance information 22
Section 3: Explanatory tables and budgeted financial statements 28
3.1 Explanatory tables 28
3.2 Budgeted financial statements 30
Department of the Prime Minister and Cabinet
Section 1: Agency 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 Parliamentary Secretaries on matters that are at the forefront of public and government administration.
Strategically, PM&C continues to strive 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
• leading the APS in collaboration with the APSC
• providing advice on major domestic, international, and national security policy, drawing on expertise from across government
• using forward-looking research and analysis to advise on emerging issues, strategic policy challenges and priorities
• monitoring and providing advice on the implementation of key government initiatives, policies and programs
• providing services to enable efficient, effective and coordinated management of the business of government.
Further details of the objectives and performance evaluation mechanisms attached to this strategy are detailed in Section 2 of this document.
1.2 Agency resource statement
Table 1.1 shows the total resources from all sources. The table summarises how resources will be applied by outcome and by administered and departmental classification.
Table 1.1: PM&C Resource Statement — Budget Estimates for 2013-14 as at Budget May 2013
[pic]1 Appropriation Bill (No.1) 2013-14.
2 Estimated adjusted balance carried forward from previous year.
3 Includes an amount of $3.1m in 2013-14 for the Departmental Capital Budget (refer to table 3.2.5 for further details). For accounting purposes this amount has been designated as 'contributions by owners'.
4 s31 Relevant agency receipts — estimate.
5 Includes an amount of $0.3m in 2013-14 for the Administered Capital Budget (refer to table 3.2.10 for further details). For accounting purposes this amount has been designated as 'contributions by owners'.
6 Appropriation Bill (No.2) 2013-14.
Reader note: All figures are GST exclusive.
Third party payments from and on behalf of other agencies
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1.3 Budget measures
Budget measures in Part 1 relating to PM&C are detailed in Budget Paper No. 2 and are summarised below.
Table 1.2: PM&C 2013-14 Budget measures
Part 1: Measures announced since the 2012-13 MYEFO
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1. This measure has been fully offset by The Treasury Portfolio.
2. Payment of this measure is made through the Department of the Treasury under Program 1.10: National Partnership Payments to the States.
3. PM&C’s component of the funding for this measure has been fully offset within the Department.
4. The lead agency for this measure is the Department of Foreign Affairs and Trade. The full measure description and package details appear in Budget Paper No. 2 under the Foreign Affairs Portfolio.
Prepared on a Government Finance Statistics (fiscal) basis.
Part 2: MYEFO measures not previously reported in a portfolio statement
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Prepared on a Government Financial Statistics (fiscal) basis.
1.4 Revised program structure and disclosure
Since the publication of the 2012-13 PB Statements, PM&C has moved to a single program structure: ‘Program 1 - Prime Minister and Cabinet’. The previously reported ‘Program 1.2 Official and Ceremonial Support’ has been subsumed into Program 1.1.
In addition to consolidating Program 1.2 into Program 1.1, PM&C has modified the level of disclosure in the 2013-14 PB Statements, reporting at a program level rather than a program component level.
In amending the level of disclosure, PM&C performed a detailed review of the Key Performance Indicators (KPIs), Objectives and Deliverables reported in the 2012-13 PB Statements and made amendments to align with current and future operations of PM&C. The revised KPIs, Objectives and Deliverables are detailed in Section 2 of this document.
The changes to the level of disclosure, and the consolidation of programs, in the 2013-14 PB Statements does not reduce the transparency of information, nor does it change the accountability of PM&C. The level of disclosure reflects the current and future direction of PM&C and ensures readability is consistent across agency statements in line with guidance set by the Department of Finance and Deregulation.
Section 2: Outcomes and planned performance
2.1 Outcomes and performance information
Government outcomes are the intended results, impacts or consequences of actions by the Government on the Australian community. Commonwealth programs are the primary vehicle by which Government agencies achieve the intended results of their outcome statements. Agencies are required to identify the programs which contribute to Government outcomes over the Budget and forward years.
The PM&C Outcome is described below together with its related program, specifying the performance indicators and targets used to assess and monitor the performance of PM&C in achieving Government outcomes.
The Outcome Statement for PM&C was amended in November 2012 to reflect the current reporting obligations to the Cabinet, Portfolio Ministers and Parliamentary Secretaries.
|Outcome 1: Provide high quality policy advice and support to the Prime Minister, the Cabinet, Portfolio Ministers |
|and Parliamentary Secretaries including through the coordination of government activities, policy development and |
|program delivery. |
Outcome 1 Strategy
PM&C’s primary role is to provide policy advice and support to the Prime Minister and the Cabinet through a coordinated approach to the development and implementation of government policies. More specifically PM&C will:
• provide advice on major domestic, international and national security policy, including all matters considered by Cabinet
• provide secretariat support for meetings of Cabinet, its committees and the Federal Executive Council and the processes to facilitate the decision-making role of Cabinet
• monitor the implementation of key government initiatives, policies, programs and reform agendas
• support COAG in progressing the COAG agenda in areas of major reform
• develop the future leadership capability of the APS through the Secretary's role as head of the APS and Chair of the Secretaries' Board.
PM&C also provides leadership on policy advice for the G20 agenda as well as delivering all operational and security arrangements for the conduct of the meetings.
Outcome Expense Statement
Table 2.1 provides an overview of the total expenses for Outcome 1, by program.
Table 2.1: Budgeted Expenses for Outcome 1
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1 Departmental appropriation combines ‘Ordinary annual services (Appropriation Bill No. 1)’ and ‘Revenue from independent sources (s31)’.
2 Expenses not requiring appropriation in the Budget year is made up of depreciation expense, amortisation expense, make good expense, audit fees and secondees.
3 The increase in ASL largely reflects the increased staff numbers for the delivery of G20.
Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of the Budget year as Government priorities change.
Contributions to Outcome 1
|Program 1.1: Prime Minister and Cabinet |
|Program Objective |
|The objectives of PM&C are to: |
|Provide advice and support to the Prime Minister, the Cabinet, Portfolio Ministers and Parliamentary Secretaries |
|on major domestic, international and national security policies including long term strategic issues and complex, |
|cross cutting public policy challenges |
|Provide support to the Cabinet and its committees, the Federal Executive Council, COAG and the COAG Reform Council|
|to facilitate informed decision making |
|Coordinate the national security community’s efforts to protect and strengthen our sovereignty, ensure a safe and |
|resilient population, secure our assets, infrastructure and institutions and promote a favourable international |
|environment |
|Provide support for the operations of the Prime Minister’s official residences and to former and designated |
|Governors-General official offices |
|Provide support for major events and meetings and coordinating the logistical arrangements for the Prime |
|Minister’s overseas visits |
|PM&C will also strengthen the global economy and collaboration between major economies through chairing the G20 in|
|2014. |
|Program Expenses |
|Departmental funding as detailed in Table 1.2 has been received in the 2013-14 Budget. The funding is a |
|continuation of a terminating measure and will enable PM&C to continue to provide strategic policy advice on areas|
|of key reform. |
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|1 Increase in 2013-14 relates to the recognition of a provision for projected future entitlements for former |
|Governors-General. |
|2 Expenses not requiring appropriation in the Budget year is made up of depreciation expense, amortisation |
|expense, makegood expense, audit fees and secondees. |
|Note: The funding available to PM&C for the delivery of the G20 was re-profiled in 2012-13. The re-profile allowed|
|for the alignment of revenue from Government with the expected expenditure and will ensure sufficient resources |
|are available to meet the costs of policy development and logistical arrangements. There was no change to the |
|overall amount of funding provided to PM&C. |
|Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of the |
|Budget year as Government priorities change. Corporate support costs are allocated across program components, |
|based on average staffing levels, to reflect the full cost of delivery. |
|Program Deliverables |
|Policy advice and support to the Prime Minister, the Cabinet, Portfolio Ministers and Parliamentary Secretaries in|
|key areas including: |
|domestic policy matters, strategic priorities, and implementation including social inclusion and not-for-profit |
|national security matters, including the priorities articulated in the National Security Strategy |
|foreign, trade and aid policy, including bilateral relations and engagement with regional and international |
|partners |
|defence matters, including Australian Defence Force operations, international defence cooperation and engagement, |
|force posture and structure and Defence reforms |
|implementation of the Australia in the Asian Century White Paper |
|commemorative events, including Anzac Centenary commemorations |
|parliamentary, machinery of government, legal policy |
|Australia’s honours system and national symbols. |
|Leadership, policy coordination, monitoring and coordinated whole-of-government responses to Government’s |
|decisions, policies and strategic priorities including: |
|enhanced regional engagement, integrated cyber policy and effective national security partnerships |
|countering people smuggling and irregular migration issues |
|major national security related crises or emergencies |
|Australia's national security community and national intelligence community |
|reform proposals with other Commonwealth agencies and state and territory governments for consideration by COAG |
|and coordination of COAG’s work program |
|volunteer management. |
|Provision of secretariat and support services for the Cabinet, its committees and the Federal Executive Council. |
|Provision of services for the Prime Minister, Portfolio Ministers, Parliamentary Secretaries and their ministerial|
|offices. |
|Management of visits by, and hospitality for, guests of the government and heads of state, delivery of support for|
|major events, ceremonies and state occasions and coordination of logistical arrangements for the Prime Minister’s |
|overseas visits. |
| |
| |
|Development of reform proposals with other Commonwealth agencies and state and territory governments for |
|consideration by COAG and coordination of COAG’s work program. |
|Provision of support to the COAG Reform Council that reports to COAG on the implementation of nationally agreed |
|reforms. |
|Delivery of Community Cabinet meetings. |
|Provision of support for the operations of the Prime Minister’s official residences and the Official |
|Establishments Trust, and provision of entitlements to former Governors-General (excluding pension entitlements). |
|Policy development, operational and security arrangements for Australia’s role in the G20. |
|Program Key Performance Indicators |
|High quality, relevant and timely advice and support to the Prime Minister, the Cabinet and Cabinet committee |
|chairs, Portfolio Ministers and Parliamentary Secretaries based on an objective and thorough understanding of |
|issues and whole-of-government perspective. |
|Regular, timely and collaborative communication and co-operation with other central agencies, portfolio |
|departments and other key stakeholders. |
|Successful coordination and support for COAG meetings and ensuring a |
|well-coordinated delivery of the broad COAG agenda. |
|Successful leadership and coordination of the national security community to promote a national security system |
|that anticipates threats, responds effectively to crises and major security events, protects the nation and shapes|
|the world in Australia’s interest. |
|Advancement of the Government’s international priorities that promote Australia’s security, prosperity, |
|international profile and influence. |
|Advice and support for key stakeholders for state occasions, official visits, operations of the Prime Minister’s |
|official establishments and former Governors-General that is timely, relevant and of high quality. |
|Successfully advance Australia’s interests through the G20. |
Section 3: Explanatory tables and budgeted financial statements
Section 3 presents explanatory tables and budgeted financial statements which provide a comprehensive snapshot of agency finances for the 2013-14 Budget year. It explains how budget plans are incorporated into the financial statements and provides further details of the reconciliation between appropriations and program expenses, movements in administered funds, special accounts and Government Indigenous expenditure.
3.1 Explanatory tables
3.1.1 Movement of Administered funds between years
PM&C does not have any movement of administered funds between years.
3.1.2 Special Accounts
Special Accounts provide a means to set aside and record amounts used for specified purposes. Special Accounts can be created by a Finance Minister’s Determination under the FMA Act or under separate enabling legislation. Table 3.1.2 shows the expected additions (receipts) and reductions (payments) for each account used by PM&C.
Table 3.1.2: Estimates of special account flows and balances
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1 The balance in 2012-13 reflects a contribution received from the state and territory governments for payment to the Queen’s Diamond Jubilee trust account.
(D) = Departmental
Note: The service for other entities and trust monies special account is used to disburse amounts held on trust or otherwise for the benefit of a person other than the Commonwealth. As such, these financial inflows do not represent resources available for use by the Department and are not included in Table 1.1 (Resource statement).
3.1.3 Australian Government Indigenous expenditure
Table 3.1.3: Australian Government Indigenous Expenditure (AGIE)
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3.2 Budgeted financial statements
3.2.1 Differences in agency resourcing and financial statements
Departmental items
The Agency Resource Statement (Table 1.1) provides a consolidated view of all the resources available to PM&C in 2013-14. For departmental items this includes equity injections and appropriation receivable that is yet to be drawn down to cover payables and provisions on the balance sheet. The comprehensive income statement (Table 3.2.1) shows only the operating appropriation provided each year.
Administered items
The 2013-14 administered expense figure of $16.3m in Table 1.1 includes the cash appropriation for payments for former Governors-General entitlements. A provision for the total estimated value of these entitlements is recognised in the financial statements at the time each Governor-General retires. Accordingly, payment of these entitlements results in a reduction to the provision rather than an operating expense.
The schedule of budgeted income and expenses administered on behalf of Government (Table 3.2.7) includes non-cash appropriation items including depreciation and amortisation expense, make good and the unwinding of the discount on the provision for former Governors-General entitlements. The following table shows the reconciliation between the 2013-14 appropriation, as per Table 1.1, and the expense shown in Table 3.2.7.
Reconciliation of differences in administered resourcing (Table 1.1) and financial statements (Table 3.2.7)
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3.2.2 Analysis of budgeted financial statements
Departmental
Income Statement
Revenue from Government increases from $121.0m in 2012-13 to $185.5m in 2013-14 reflecting the additional revenue received to facilitate the policy development, operating and security arrangements for the G20.
Revenue will increase further to $306.9m in 2014-15 when the G20 leaders meeting is held and the associated expenditure is incurred. Revenue and expenses are expected to return to core levels in 2015-16 when the G20 Taskforce will cease operations.
Balance Sheet
The budgeted net asset position is expected to remain steady into the 2013-14 Budget year and then decrease in the forward estimates as fixed assets are depreciated in line with the Department’s Capital Management Plan.
Administered
Schedule of budgeted income and expenses administered on behalf of government
Budgeted expenses administered on behalf of Government will increase from $14.9m in 2012-13 to $18.9m in 2013-14. The increase primarily reflects the write-on of a provision for the expected future entitlements for former Governors-General.
Schedule of budgeted assets and liabilities administered on behalf of government
The budgeted total administered assets remain steady over the Budget year and throughout the forward estimates. Total liabilities administered on behalf of Government increase from $13.9m in 2012-13 to $16.7m in 2013-14 reflecting an increase in the provision for former Governors-General. The provision tapers off in the forward estimates as payments are made against the provision.
3.2.3 Budgeted financial statements tables
Table 3.2.1: Comprehensive Income Statement (Showing Net Cost of Services)
(for the period ended 30 June)
[pic]1 Drop in expenses from 2014-15 to 2015-16 relates to the completion of the G20 operations.
2 From 2010-11, the government introduced net cash appropriation arrangements where Bill 1 revenue
appropriations for the depreciation/amortisation expenses of FMA Act agencies were replaced with a separate capital budget (the Departmental Capital Budget, or DCB) provided through Bill 1 equity appropriations. For information regarding DCBs, please refer to Table 3.2.5 Departmental Capital Budget Statement.
Prepared on Australian Accounting Standards basis.
Table 3.2.2: Budgeted Departmental Balance Sheet
(as at 30 June)
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1 Other payables includes unearned revenue, FBT payable and end of year salary accruals.
2 'Equity' is the residual interest in assets after deduction of liabilities.
Prepared on Australian Accounting Standards basis.
Table 3.2.3: Departmental Statement of Changes in Equity — Summary of Movement (Budget year 2013-14)
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Prepared on Australian Accounting Standards basis.
Table 3.2.4: Budgeted Departmental Statement of Cash Flows
(for the period ended 30 June)
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Prepared on Australian Accounting Standards basis.
Table 3.2.5: Departmental Capital Budget Statement
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1 Capital appropriation relating to G20.
DCB = Departmental Capital Budget
Prepared on Australian Accounting Standards basis.
Table 3.2.6: Statement of Asset Movements (2013-14)
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1 "Appropriation ordinary annual services" refers to funding provided through Appropriation Bill (No.1)
2013-14 for the DCB.
2 "Appropriation equity" refers to equity injections provided through Appropriation Bill (No.2)
2013-14.
Prepared on Australian Accounting Standards basis.
Table 3.2.7: Schedule of Budgeted Income and Expenses Administered on Behalf of Government (for the period ended 30 June)
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1 Increase in 2013-14 relates to the recognition of a provision for projected future entitlements for former
Governors-General.
Prepared on Australian Accounting Standards basis.
Table 3.2.8: Schedule of Budgeted Assets and Liabilities Administered on Behalf of Government (as at 30 June)
[pic]
1 Investment in National Australia Day Council.
2 Relates to the provision for former Governors-General. The provision reduces from 2014-15 as payments are made against the provision rather than expensed in accordance with AASB 119.
Prepared on Australian Accounting Standards basis.
Table 3.2.9: Schedule of Budgeted Administered Cash Flows
(for the period ended 30 June)
[pic]Prepared on Australian Accounting Standards basis.
Table 3.2.10: Schedule of Administered Capital Budget Statement
[pic]
1 Includes prior year funding used to meet the requirements of maintaining the Prime Minister’s official residences.
ACB = Administered Capital Budget
Prepared on Australian Accounting Standards basis.
Table 3.2.11: Statement of Asset Movements – Administered (2013-14)
[pic]
Prepared on Australian Accounting Standards basis.
Australian National Audit Office
Agency resources and planned performance
Australian National Audit Office
Section 1: Agency overview and resources 47
1.1 Strategic direction statement 47
1.2 Agency resource statement 48
1.3 Budget measures 50
1.4 Transition tables – outcome statements 51
Section 2: Outcomes and planned performance 52
2.1 Outcomes and performance information 52
Section 3: Explanatory tables and budgeted financial statements 59
3.1 Explanatory tables 59
3.2 Budgeted financial statements 60
Australian National Audit Office
Section 1: Agency overview and resources
1.1 Strategic direction statement
The Australian National Audit Office’s (ANAO) vision is to be an international leader in the provision of independent public sector audit and related services.
The ANAO’s strategic direction is focussed on meeting statutory obligations and stimulating improvements in public administration.
In 2013-14, the emphasis will be on implementing initiatives to:
• strengthen the understanding amongst stakeholders of our role and services
• ensure our services are high quality and provide insights into better public administration
• strengthen our leadership capability and succession planning to support agility in a complex and dynamic audit environment
• drive productivity improvements and support the long term sustainability for our audit programs.
These initiatives support ANAO values and will be met through the implementation of the ANAO’s objectives and strategies in four key focus areas:
• independent and responsive
• value adding services
• capability to deliver world class services
• confidence in the delivery of our services.
1.2 Agency resource statement
Table 1.1 shows the total resources from all sources. The table summarises how resources will be applied by outcome and by administered and departmental classification.
The ANAO charges an audit fee for the financial statement audits of Commonwealth authorities and companies and their subsidiaries subject to the Commonwealth Authorities and Companies Act 1997. These fees are based on a scale determined by the Auditor-General under section 14 of the Auditor-General Act 1997, calculated on the basis of a cost attribution model. Revenues from these audit fees are paid into the Official Public Account and are not available to the ANAO. The revenue and receipts are shown in Table 3.2.7 (Schedule of budgeted income and expenses administered on behalf of Government) and Table 3.2.9 (Schedule of budgeted administered cash flows), respectively.
The ANAO is also permitted to charge for ‘audits by arrangement’ under section 20(2) of the Auditor-General Act 1997. The revenue is shown as sales of goods and rendering of services in Table 3.2.1 (comprehensive income statement).
Table 1.1: ANAO Resource Statement — Budget Estimates for 2013-14 as at Budget May 2013
[pic]
1 Appropriation Bill (No.1) 2013-14.
2 Estimated adjusted balance carried forward from previous year.
3 Includes an amount of $0.9m in 2013-14 for the Departmental Capital Budget (refer to table 3.2.5 for further details). For accounting purposes this amount has been designated as 'contributions by owners'.
4 s31 relevant agency receipts — estimate.
Note: All figures are GST exclusive.
1.3 Budget measures
Budget measures relating to the ANAO are detailed in Budget Paper No. 2 and are summarised below.
Table 1.2: ANAO 2013-14 Budget measures
Part 1: Measures announced since the 2012-13 MYEFO
[pic]Prepared on a Government Finance Statistics (fiscal) basis.
Part 2: MYEFO measures not previously reported in a portfolio statement
[pic]
Prepared on a Government Finance Statistics (fiscal) basis.
1.4 Transition tables – outcome statements
To better reflect the ANAO’s role in providing assurance to the Parliament, the Executive and the public, the ANAO has transitioned to a single outcome. The existing programs have been retained under the new reporting structure.
A transition table from the structure published in the 2012-13 PB Statements to the 2013-14 PB Statements is shown below in Figure 1.
Figure 1: Transition Table
[pic]
Section 2: Outcomes and planned performance
2.1 Outcomes and performance information
Government outcomes are the intended results, impacts or consequences of actions by the Government on the Australian community. Commonwealth programs are the primary vehicle by which Government agencies achieve the intended results of their outcome statements. Agencies are required to identify the programs which contribute to Government outcomes over the Budget and forward years.
The ANAO’s outcome is described below together with its related programs, specifying the performance indicators and targets used to assess and monitor the performance of the ANAO in achieving Government outcomes.
The ANAO has management information systems in place to allow it to fully cost all audit and support activities. All audit-related costs are directly costed to the relevant audit or related services. All other costs not directly attributable to audits or related services are allocated having regard to the nature of the expenditure.
|Outcome 1: To improve public sector performance and accountability through independent reporting on Australian |
|Government administration to Parliament, the Executive and the public. |
Outcome 1 Strategy
• The key strategy by which the ANAO will seek to achieve this outcome is through its audit services, which include:
• financial statement audits of Australian Government entities; and
• performance audits of Australian Government programs and entities.
• The ANAO audits the annual financial statements of Australian Government entities and the Consolidated Financial Statements of the Australian Government. The Consolidated Financial Statements present the consolidated whole-of-government financial result inclusive of all Australian Government controlled entities, including entities outside the general government sector. These audits are designed to give assurance to stakeholders that an entity’s financial statements fairly represented its financial operations and financial position at year end.
• The ANAO also undertakes a range of assurance reviews, including an assurance review of Defence Material Organisation major projects. Further, the ANAO is in the process of developing an audit methodology to assist with an assurance review of selected key performance indicators (KPIs). Full implementation of a KPI audit program is subject to funding in future years.
• The ANAO’s performance audit activities involve the audit of all or part of an entity’s operations to assess its efficiency or administrative effectiveness. The ANAO identifies areas where improvements can be made to aspects of public administration, and makes specific recommendations to assist public sector agencies improve their program management.
• The performance audit activity also extends to conducting performance audits of Commonwealth partners, which are those bodies (e.g. grant recipients or contractors) that receive money directly or indirectly from the Commonwealth for a particular purpose. Such audits may be conducted only to the extent that they assess the operations of the Commonwealth partner in relation to achieving the Commonwealth purpose. This power also extends to state and territory bodies that receive money from the Commonwealth if the audit is conducted at the request of the JCPAA or the responsible Commonwealth Minister.
• The ANAO also contributes to improvements in Commonwealth public administration by identifying and promoting better practice that assists agencies to perform at their most efficient level, and adds value to their outputs and services. Adopting better practices can help transform and improve business processes and potentially can lead to overall improvements in the administration of the entity as a whole.
Outcome Expense Statement
Table 2.1 provides an overview of the total expenses for outcome 1 by program.
Table 2.1: Budgeted Expenses for Outcome 1
[pic]
1. Departmental appropriation combines ‘Ordinary annual services (Appropriation Bill No. 1)’ and ‘Revenue from independent sources (s31)’
2. Expenses not requiring appropriation in the Budget year is made up of depreciation and amortisation expense.
Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of the Budget year as Government priorities change.
Contributions to Outcome 1
|Program 1.1: Assurance Audit Services |
|Program Objective |
|The objectives of this program are: |
|to provide assurance on the fair presentation of financial statements of the Australian Government and its |
|entities by providing independent audit opinions and related reports for the information of Parliament, the |
|Executive and the public |
|to contribute to improvements in the financial administration of Australian Government entities |
|to contribute to the auditing profession and public sector developments nationally and internationally. |
|Program Expenses |
|Expenditure includes employee expense (48%), supplier expenses (50%) and depreciation and amortisation expense |
|(2%). |
|[pic] |
|1 Expenses not requiring appropriation in the Budget year is made up of depreciation and amortisation expense. |
|Program Deliverables |
|The deliverables for the primary components of this program are listed below. |
|[pic] |
|1 Includes DMO Major Projects report previously identified separately as a deliverable in Program 1.2. |
|Program Key Performance Indicators |
|[pic]Note: The ANAO updated its Key Performance Indicators for 2013-14 to include an additional indicator in |
|relation to the percentage of Australian Government entities that acknowledge the value added by ANAO services. A |
|number of amendments were also made to existing indicators to improve overall readability, and clarify the |
|performance being measured. |
|Program 1.2: Performance Audit Services |
|Program Objective |
|The objectives of this program are: |
|to report 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 |
|to contribute to improvements in Australian Government administration by identifying and promoting better practice|
|to contribute to the auditing profession and public sector developments nationally and internationally. |
|Program Expenses |
|Expenditure includes employee expense (63%), supplier expenses (34%) and depreciation and amortisation expense |
|(3%). |
|[pic] |
|1 Expenses not requiring appropriation in the Budget year is made up of depreciation and amortisation expense. |
|Program Deliverables |
|The deliverables for the primary components of this program are listed below. |
|[pic] |
|1 These deliverables are dependent on ANAO capacity, and changes to the public sector environment which influences|
|the scale and scope of performance audits undertaken. |
|Note: Deliverables in the 2012-13 PB Statements included the DMO Major Projects report. This deliverable is now |
|included in program 1.1 under ‘number of other assurance reports produced’. |
|Program Key Performance Indicators |
|[pic]Note: The ANAO updated its key performance indicators for 2013-14 to improve overall readability and clarify |
|the performance being measured. |
Section 3: Explanatory tables and budgeted financial statements
Section 3 presents explanatory tables and budgeted financial statements which provide a comprehensive snapshot of agency finances for the 2013-14 Budget year. It explains how budget plans are incorporated into the financial statements and provides further details of the reconciliation between appropriations and program expenses, movements in administered funds, special accounts and Government Indigenous expenditure.
3.1 Explanatory tables
3.1.1 Movement of Administered funds between years
The ANAO does not have any movement of administered funds between years.
3.1.2 Special Accounts
The ANAO does not have any Special Accounts.
3.1.3 Australian Government Indigenous Expenditure
The ANAO does not administer any Indigenous spending programs. The ANAO does undertake financial statement audits of Indigenous entities, and of agencies administering Indigenous programs, and also undertakes performance audits of Indigenous related programs.
3.2 Budgeted financial statements
3.2.1 Differences in agency resourcing and financial statements
The agency resource statement (Table 1.1) provides a consolidated view of all the resources available to an agency in 2013-14. This includes appropriation receivable that is yet to be drawn down to cover payables and provisions on the balance sheet. The comprehensive income statement (Table 3.2.1) shows the operating appropriation provided in 2013-14.
3.2.2 Analysis of budgeted financial statements
Departmental
Income statement
Total income in 2013-14 is budgeted at $78.3m (2012-13: $77.7m). Revenue from Government (appropriation funding) has increased from $74.4m to $75.0m. This reflects additional funding of $0.72m in 2013-14 to cover increased audit work from the formation of new entities, partially offset by funding reductions arising from efficiency dividends.
Other revenue is expected to remain steady at $3.3m. This revenue relates to:
• AusAID funding of $2.2m to support the Indonesian Board of Audit and the Papua New Guinea Auditor-General’s Office; and
• Own sourced revenue, of $1.1m, for ‘audits by arrangement’ under section 20(2) of the Auditor-General Act 1997 and building sublease income.
Operating expenses for 2013-14 are estimated to total $80.2m (2012-13: $77.1m).
Balance sheet
The departmental balance sheet shows the ANAO’s net asset position remaining stable.
At this point, no major financial transactions have been planned for 2013-14 and the total assets and liabilities values are expected to remain stable.
Statement of cash flows
The cash flow is consistent with, and representative of, the transactions reported in the comprehensive income statement, adjusted for non-cash items and anticipated capital purchases.
The ANAO’s working cash balance is in accordance with the ANAO’s agreement with the Department of Finance and Deregulation.
Capital budget statement
The departmental capital budget statement shows the expected capital works program for the current and forward years. Total capital expenditure in 2013-14 is estimated to be $0.9m. In addition, the ANAO forecasts spending a further $3.1m over the forward estimates.
Administered
Schedule of budgeted income and expenses administered on behalf of Government
Estimated revenues from the provision of audit services to certain Australian Government agencies reflect the estimated recovery of audit costs.
Schedule of budgeted assets and liabilities administered on behalf of Government
The estimated administered assets and liabilities relate to ongoing audit activity. No non-financial administered assets are held.
Schedule of budgeted administered cash flows
Administered monies are transferred to the Official Pubic Account on an ongoing basis.
3.2.3 Budgeted financial statements tables
Table 3.2.1 Comprehensive Income Statement (Showing Net Cost of Services)
(for the period ended 30 June)
[pic]
1. From 2010-11, the Government introduced net cash appropriation arrangements where Bill 1 revenue appropriations for the depreciation/amortisation expenses of FMA Act agencies were replaced with a separate capital budget (the Departmental Capital Budget, or DCB) provided through Bill 1 equity appropriations. For information regarding DCBs, please refer to Table 3.2.5 Departmental Capital Budget Statement.
Prepared on Australian Accounting Standards basis.
Table 3.2.2: Budgeted Departmental Balance Sheet
(as at 30 June)
[pic]* 'Equity' is the residual interest in assets after deductions of liabilities.
Prepared on Australian Accounting Standards basis.
Table 3.2.3: Departmental Statement of Changes in Equity — Summary of Movement (Budget year 2013-14)
[pic]Prepared on Australian Accounting Standards basis.
Table 3.2.4: Budgeted Departmental Statement of Cash Flows
(for the period ended 30 June)
[pic]Prepared on Australian Accounting Standards basis.
Table 3.2.5: Departmental Capital Budget Statement
[pic]
1 Includes purchases from current and previous year’s Departmental Capital Budgets.
DCB = Departmental Capital Budget.
Prepared on Australian Accounting Standards basis.
Table 3.2.6: Statement of Asset Movements (2013-14)
[pic]
1. "Appropriation ordinary annual services" refers to funding provided through Appropriation Bill (No.1) 2013-14 for depreciation / amortisation expenses, DCBs or other operational expenses.
Prepared on Australian Accounting Standards basis.
Table 3.2.7: Schedule of Budgeted Income and Expenses Administered on Behalf of Government (for the period ended 30 June)
[pic]Prepared on Australian Accounting Standards basis.
Table 3.2.8: Schedule of Budgeted Assets and Liabilities Administered on Behalf of Government (as at 30 June)
[pic]Prepared on Australian Accounting Standards basis.
Table 3.2.9: Schedule of Budgeted Administered Cash Flows
(for the period ended 30 June)
[pic]
Prepared on Australian Accounting Standards basis.
Australian Public Service Commission
Agency resources and planned performance
Australian Public Service Commission
Section 1: Agency overview and resources 75
1.1 Strategic direction statement 75
1.2 Agency resource statement 76
1.3 Budget measures 77
Section 2: Outcomes and planned performance 78
2.1 Outcomes and performance information 78
Section 3: Explanatory tables and budgeted financial statements 89
3.1 Explanatory tables 89
3.2 Budgeted financial statements 90
Australian Public Service Commission
Section 1: Agency overview and resources
1.1 Strategic direction statement
The planned outcome of the Australian Public Service Commission (APSC) is to increase awareness and adoption of best practice public administration by the Australian Public Service (APS) through leadership, promotion, advice and professional development, drawing on research and evaluation. The APSC takes a central, leadership role in providing expertise, guidance, performance monitoring and some centralised services to all agencies. The APSC also undertakes statutory functions under the Public Service Act 1999 (the Act), including functions to strengthen the Australian Public Service’s integrity.
In 2013–14 the APSC will continue to focus on its five strategic priorities. These priorities reflect our statutory responsibilities, are consistent with the whole-of-Government reform and delivery agenda and form the basis for the program objectives and outputs detailed in the following sections. Our strategic objectives are:
• to build a unified, citizen-centric APS by leading its organisational and human capital strategies
• to lead APS agencies’ adoption of best human capital practices and assure agencies’ organisational capability
• to develop outstanding leaders and shape a cohesive leadership network
• to instil and enliven APS ethics and values to inspire excellence
• to invest in and grow the APSC’s capability to deliver its expanded role.
1.2 Agency resource statement
Table 1.1 shows the total resources from all sources. The table summarises how resources will be applied by outcome and by administered and departmental classification.
Table 1.1: APSC Resource Statement — Budget Estimates for 2013-14 as at Budget May 2013
[pic]
1 Appropriation Bill (No.1) 2013-14.
2 Estimated adjusted balance carried forward from previous year.
3 Includes an amount of $0.7m in 2013-14 for the Departmental Capital Budget (refer to table 3.2.5 for further details). For accounting purposes this amount has been designated as 'contributions by owners'.
4 s31 Relevant agency receipts — estimate.
Reader note: All figures are GST exclusive.
1.3 Budget measures
Budget measures in Part 1 relating to the APSC are detailed in Budget Paper No. 2 and are summarised below.
Table 1.2: APSC 2013-14 Budget measures
Part 1: Measures announced since the 2012-13 MYEFO
There are no Budget measures relating to the APSC announced since the 2012-13 MYEFO.
Part 2: MYEFO measures not previously reported in a portfolio statement
[pic]
Prepared on a Government Finance Statistics (fiscal) basis.
Section 2: Outcomes and planned performance
2.1 Outcomes and performance information
Government outcomes are the intended results, impacts or consequences of actions by the government on the Australian community. Commonwealth programs are the primary vehicle by which Government agencies achieve the intended results of their outcome statements. Agencies are required to identify the programs which contribute to Government outcomes over the Budget and forward years.
The APSC’s outcome is described below together with its related programs, specifying the performance indicators and targets used to assess and monitor the performance of the APSC in achieving Government outcomes.
|Outcome 1: Increased awareness and adoption of best practice public administration by the public service through |
|leadership, promotion, advice and professional development, drawing on research and evaluation. |
Outcome 1 Strategy
The APSC takes a central, leadership role in providing expertise, guidance, performance monitoring and some centralised services to all agencies covering:
• improving the alignment and quality of APS human capital planning and management in order to enhance APS-wide and agency capability through building a strategic and coordinated approach to the development of APS leaders and its people
• ensuring greater consistency for a united APS, including through promotion of the APS values and its ethical framework and coordination of workplace relations for Australian Government employees
• fostering capability and stewardship at the APS level and assuring agency capability and effectiveness, including through processes for improved workforce planning and agency capability reviews
• strengthening the APS’s leadership and management capabilities, and building the bench strength of its leadership cohorts, through the implementation of a whole-of-APS Leadership and Core Skills Strategy.
The APSC also undertakes statutory functions under the Public Service Act 1999 (the Act), including functions to strengthen the Australian Public Service’s (APS) integrity.
The APSC is responsible for Australian Government policies for enterprise bargaining in Australian Government employment, classification structures, pay and employment conditions for Australian Government employees, work level standards and workplace relations advice. These include encouraging agencies to develop a more consistent approach to common terms and conditions of employment for APS employees when negotiating enterprise agreements.
The APSC will continue to report publicly on the state of the APS through the 2013-14 State of the Service report which will assess APS workforce trends and capability. One of the key information sources for the report is a census of all APS employees . This will provide the APSC with improved agency benchmarking capability and the opportunity for more comprehensive analysis.
The APSC international programs will continue to develop public sector capability and capacity in partnership with developing countries, consistent with the priorities of the Australian Government’s aid program.
The APSC will continue to focus on APS people and organisational performance, investing in APS development and capability and Australian Government employment workplace relations and to support agencies through:
• a Memorandum of Understanding with relevant agencies to deliver leadership and skills development, talent management services and a whole-of-Government approach to the recruitment (and retention) of Indigenous employees
• effective communication strategies that minimise the burden on agencies in adopting new guidelines and frameworks
• the provision of advice on agency-specific processes and capability development
• the conduct of a program of capability reviews.
Outcome Expense Statement
Table 2.1 provides an overview of the total expenses for Outcome 1, by program.
Table 2.1: Budgeted Expenses for Outcome 1
[pic]
1 Departmental appropriation combines ‘Ordinary annual services (Appropriation Bill No. 1)’ and ‘Revenue from independent sources (s31)’.
2 Expenses not requiring appropriation in the Budget year is made up of depreciation expense, amortisation expense and audit fees.
Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of the Budget year as Government priorities change.
Contributions to Outcome 1
|Program 1.1: Australian Public Service Commission |
|Program Objectives |
|APS people and organisation performance |
|to provide high quality policy advice to the Government, the Minister and the Public Service Commissioner, and |
|employment services, on matters covered by the Public Service Act 1999 |
|to provide an evidence base for the alignment and quality of APS human capital planning and management to enhance |
|APS-wide and agency capability |
|to facilitate the continuous improvement of the approach to APS-wide workforce planning that support effective |
|deployment and management of human capital |
|to manage and provide quality policy advice on the Public Service Commissioner’s statutory responsibilities in |
|relation to SES employees, agency heads and statutory office holders |
|to undertake agency capability reviews to assist agencies to improve institutional capabilities and strengthen |
|accountability of agency performance |
|to support the review, inquiry and reporting functions of the Public Service Commissioner and the Merit Protection|
|Commissioner and contribute to ensuring consistent standards of decision-making and people management practices |
|across the APS |
|to work with agencies to implement the amended Public Service Act 1999 and embed the revised APS Values, and |
|promote public service ethics and integrity |
|to work with agencies to build a high performance culture across the APS |
|to ensure that APS agencies have access to leadership strategies to enhance agency specific capability and |
|leadership development through guidance, networks and client engagement activities |
|to deliver strategies under the Indigenous Employment Strategy to improve the retention of Indigenous staff in the|
|APS and work with agencies to continue to focus on the strategies in the APS Indigenous Pathways to Employment |
|program |
|to contribute to the enhanced diversity of the APS to ensure it reflects and is responsive to the wider community |
|and work with agencies to implement the as one – Australian Public Service Disability Employment Strategy aimed at|
|strengthening the APS as a progressive and sustainable employer of people with disability. |
|Investing in APS development and capability |
|to reinvigorate strategic leadership capability by enhancing the capability of current and future APS leaders |
|to enhance the core skills of the APS workforce |
|to improve the efficiency and effectiveness of leadership and core skills development across the APS |
|to enable agencies to enhance their approach to leadership development, talent management and core skills learning|
|and development |
|to contribute to the increased awareness and adoption of best practice public administration by providing |
|leadership and professional development programs |
|to assist identified International governments to build public sector capability and capacity on behalf of the |
|Australian Government. |
|Australian Government employment workplace relations |
|to foster cohesive APS workforce relations to ensure employment bargaining supports a flexible and unified APS |
|to provide advice and support for workplace relations within Australian Government employment |
|to strengthen and streamline the employment bargaining framework |
|to enhance and maintain employment frameworks, including classification and work level standards, to support |
|cost-effective whole-of-APS delivery to government and stakeholders |
|to assist the Remuneration Tribunal and the Defence Force Remuneration Tribunal meet their respective statutory |
|obligations. |
|Program Expenses |
|Expenses will reduce in 2013-14 due to the cessation of APS Reform activities funded by appropriation from |
|Government. |
|Expenses are expected to reduce in 2014-15 as planned activities for the agency capability reviews are completed. |
|Expenses are also expected to reduce in 2015-16 due to the termination in 2014-15 of the Australian Public Service|
|Employment and Capability Strategy for Aboriginal and/or Torres Strait Islander Employees Budget measure. |
|Expenses are expected to reduce in 2016-17 as the five year agency funding agreements for the Strategic Centre for|
|APS Leadership, Learning and Development expires. |
|[pic] |
|1 Expenses not requiring appropriation in the Budget year is made up of depreciation expense, amortisation expense|
|and audit fees. |
|Program Deliverables |
|The APSC’s key deliverables are: |
|APS people and organisation performance |
|providing high quality policy advice to the Government, the Minister and the Public Service Commissioner on |
|matters covered by the Public Service Act 1999 |
|monitoring and supporting the continuous and sustainable development of agencies’ workforce planning and |
|capability frameworks and benchmarking processes |
|supporting the review, inquiry and reporting functions and contribute to ensuring consistent standards of |
|decision-making and people management practices across the APS |
|working with agencies to embed the APS Values that are effective in driving performance and cultural change, and |
|promote public service ethics and integrity |
|providing agency capability reviews, reports and capability improvement plans |
|embedding an attitudinal and behavioural change to the management of performance to build a high performance |
|culture across the APS |
|improving retention, over time, of Indigenous staff through strategies under the Indigenous Employment Strategy |
|and support the as one – Australian Public Service Disability Employment Strategy aimed at strengthening the APS |
|as a progressive and sustainable employer of people with disability |
|providing the publication of the State of the Service Report and other reports to assist in advising government |
|and the APS |
|supporting the Ethics Advisory Service in assisting employees and agencies |
|meeting performance benchmarks in discharging statutory functions in respect of SES matters. |
|Investing in APS development and capability |
|developing and reviewing the APS Leadership and Core Skills Strategy reflecting the current and emerging business |
|needs of the APS, and drawing on evidence-based research and best practice |
|designing, developing and delivering best practice, contemporary leadership development programs and interventions|
|designing, developing and delivering intensive development for high potential leaders |
|designing contemporary, best practice learning programs and interventions relating to management and core skills |
|the quality assessing of development providers |
|centrally procuring programs where there is a return on investment in terms of efficiency and/or cultural |
|benefits |
|improving evaluation of program outcomes |
|thought leadership, supporting and advising support agency best practice in the areas of leadership, learning and |
|development |
|providing a range of leadership and professional development programs that build knowledge and skills to improve |
|capability |
|strengthening the capability of partner governments to develop and implement strategic initiatives that improve |
|their public sector effectiveness, efficiency and the quality of services to citizens. |
|Australian Government employment workplace relations |
|providing high quality advice to agencies and the Minister on workplace employment arrangements |
|administering enterprise bargaining arrangements |
|maintaining and supporting the policy and employment frameworks, including the APS-wide work level standards and |
|classifications to ensure that these arrangements support a united APS |
|providing high-quality advisory and administrative support to the Remuneration Tribunal and the Defence Force |
|Remuneration Tribunal. |
|Program Key Performance Indicators 1 |
|APS has sufficient leadership capability to meet current and future business requirements - to become more |
|citizen-centric, to be able to solve complex problems, to operate as one-APS, to anticipate challenges and |
|implement Government programs and decisions effectively |
|APS agencies have access to high quality, contemporary, strategically aligned leadership and talent development |
|programs that build the capability required in the APS |
|the degree to which programs improve leadership and management effectiveness |
|APS agencies have a range of means for accessing core skills development programs |
|improved quality and consistency of core skills delivery across the APS through agency use of quality assured |
|providers and learning designs |
|APS agencies have access to thought leadership, support and advice to support their leadership development and |
|talent management initiatives |
|proposals align with the Australian Government’s comprehensive Aid policy framework and enhance regional stability|
|and improves services of Government to citizens. |
|As required by the Guidance for the Preparations of the 2013-14 Budget Statements the APSC has reviewed its KPIs |
|and in 2013-14 their number has been reduced to more effectively concentrate on KPIs which address the APSC |
|Outcome. The output KPIs will be reported in the APSC’s 2012-13 annual report. The KPIs are subject to further |
|development as appropriate business systems are established to support the collection of relevant data. |
|[pic] |
|Program 1.2: Parliamentarians’ and Judicial Office Holders Remuneration and Entitlements. |
|Program Objective |
|The objective of this program is to facilitate the payment of remuneration, allowances and entitlements to |
|Parliamentarians’ and Judicial Office Holders. |
|Program Expenses |
|The Department of the Senate, the Department of the House of Representatives and the Attorney-General’s Department|
|make all payments for this program. |
|These payments are funded by special appropriations and expenses move in line with the level of remuneration, |
|allowances and entitlements for Parliamentarians and Judicial Office Holders. |
|[pic] |
|Program Deliverables |
|The key deliverable is the payment of remuneration, allowances and entitlements to Parliamentarians and Judicial |
|Office Holders. |
|Data is not provided for deliverables because the administered items are paid by the Department of the Senate, the|
|Department of the House of Representatives and the Attorney-General’s Department. |
|Program Key Performance Indicators |
|[pic] |
Section 3: Explanatory tables and budgeted financial statements
Section 3 presents explanatory tables and budgeted financial statements which provide a comprehensive snapshot of agency finances for the 2013-14 Budget year. It explains how budget plans are incorporated into the financial statements and provides further details of the reconciliation between appropriations and program expenses, movements in administered funds, special accounts and Government Indigenous expenditure.
3.1 Explanatory tables
3.1.1 Movement of Administered funds between years
APSC does not have any movement of administered funds between years.
3.1.2 Special Accounts
APSC does not have any Special Accounts.
3.1.3 Australian Government Indigenous Expenditure
Table 3.1.3: Australian Government Indigenous Expenditure (AGIE)[pic]
3.2 Budgeted financial statements
3.2.1 Differences in agency resourcing and financial statements
The agency resource statement (Table 1.1) provides a consolidated view of all the resources available to the agency in 2013-14 including both departmental and administered funding. This includes appropriation that is yet to be drawn down to cover departmental payables and provisions on the balance sheet. The departmental comprehensive income statement (Table 3.2.1) shows only the departmental operating appropriation provided in each year.
3.2.2 Analysis of budgeted financial statements
Departmental
Income Statement
In all Budget years the APSC is budgeting for a break-even operating result, adjusted for depreciation and amortisation expense.
Appropriation revenue will decrease by $1.2m from $23.2m in 2012-13 to $22.0m in
2013-14 due to the termination of APS reform funding.
Appropriations will reduce in 2015-16 as funding terminates for the Australian Public Service Employment and Capability Strategy for Aboriginal and/or Torres Strait Islander Employees Budget measure.
Goods and services income will reduce in 2014-15 as planned activities for the agency capability reviews are completed.
Income is expected to reduce in 2016-17 as a result of the expiration of the five year agency funding agreements for the Strategic Centre for APS Leadership, Learning and Development.
Balance Sheet
Cash balances are maintained at a working capital level of $0.5m. Cash holdings above this level are transferred as a receivable held in the Official Public Account.
Receivables vary in line with the APSC’s capital investment cycle for FMA s.31 funded fee for service activities. Receivables will remain constant in 2013-14 and decrease in future years to enable future asset reinvestment.
The main payables and provisions of the APSC are expected to remain at around current levels. The operating lease incentive liability will reduce over the Budget year and forward years as the upfront incentives received from lessors for office leases are allocated as rebates to lease expense over the term of those leases.
Net equity will reduce over the Budget and forward years as the level of departmental capital budget funding is lower than the loss incurred due to net cash appropriation arrangements.
Administered Financial Statements
The administered transactions are for payments of Parliamentarians’ and Judicial Office Holders’ remuneration and entitlements. These payments are funded by special appropriations and are disclosed in the administered schedule of income and expenses and schedule of cash flows. There are no administered liabilities or assets as all remuneration and entitlements are paid in the month in which they are incurred.
Expenses are expected to increase each year as the Remuneration Tribunal is required by its legislation to review remuneration for Parliamentarians’ and Judicial Office Holders’ annually. In the past this review has generally led to increases in remuneration.
3.2.3 Budgeted financial statements tables
Table 3.2.1: Comprehensive Income Statement (Showing Net Cost of Services)
(for the period ended 30 June)
[pic]1 From 2010-11, the government introduced net cash appropriation arrangements where Bill 1 revenue
appropriations for the depreciation/amortisation expenses of FMA Act agencies were replaced with a separate capital budget (the Departmental Capital Budget, or DCB) provided through Bill 1 equity appropriations. For information regarding DCBs, please refer to Table 3.2.5 Departmental Capital Budget Statement.
Prepared on Australian Accounting Standards basis.
Table 3.2.2: Budgeted Departmental Balance Sheet
(as at 30 June)
[pic]
* 'Equity' is the residual interest in assets after deduction of liabilities.
Prepared on Australian Accounting Standards basis.
Table 3.2.3: Departmental Statement of Changes in Equity — Summary of Movement (Budget year 2013-14)
[pic]
Prepared on Australian Accounting Standards basis.
Table 3.2.4: Budgeted Departmental Statement of Cash Flows
(for the period ended 30 June)
[pic]
Prepared on Australian Accounting Standards basis.
Table 3.2.5: Departmental Capital Budget Statement
[pic]
1 Does not include annual finance lease costs. Includes purchase from current and previous
years' Departmental Capital Budgets (DCBs).
2 Includes current and prior year Bill 1/3/5 appropriations (excluding amounts from the DCB) and s31 relevant agency receipts (for FMA agencies only).
DCB = Departmental Capital Budget
Prepared on Australian Accounting Standards basis.
Table 3.2.6: Statement of Asset Movements (2013-14)
[pic]
1 "Appropriation ordinary annual services" refers to funding provided through Appropriation Bill (No.1) 2013-14 for depreciation / amortisation expenses, DCBs or other operational expenses.
Prepared on Australian Accounting Standards basis.
Table 3.2.7: Schedule of Budgeted Income and Expenses Administered on Behalf of Government (for the period ended 30 June)
[pic]Prepared on Australian Accounting Standards basis.
Table 3.2.8: Schedule of Budgeted Assets and Liabilities Administered on Behalf of Government (for the period ended 30 June)
The APSC has no assets or liabilities administered on behalf of government.
Table 3.2.9: Schedule of Budgeted Administered Cash Flows
(for the period ended 30 June)
[pic]
National Mental Health Commission
Agency resources and planned performance
National Mental Health Commission
Section 1: Agency overview and resources 105
1.1 Strategic direction statement 105
1.2 Agency resource statement 107
1.3 Budget measures 108
Section 2: Outcomes and planned performance 109
2.1 Outcomes and performance information 109
Section 3: Explanatory tables and budgeted financial statements 114
3.1 Explanatory tables 114
3.2 Budgeted financial statements 115
National Mental Health Commission
Section 1: Agency overview and resources
1.1 Strategic direction statement
The National Mental Health Commission (NMHC) is an executive agency established on 1 January 2012 under the Public Service Act 1999 within the Prime Minister and Cabinet Portfolio. Ten Commissioners, including the Chair and CEO, comprise Australia’s first National Mental Health Commission. The Prime Minister has appointed the Hon Mark Butler MP as Minister Assisting the Prime Minister on Mental Health Reform. The NMHC reports annually on its progress to the Prime Minister and Minister Butler has responsibility for day to day oversight of the work of the NMHC.
The NMHC contributes to the government’s agenda to improve outcomes for people with a lived experience of mental health issues, their families, carers and other support people. Through an independent, system wide accountability, reporting and advisory role, and through high profile, cross sectoral leadership and collaboration the NMHC will continue to:
• monitor, evaluate and independently report on the performance of the systems that support Australians with a lived experience of mental health issues. Central to this is the development, management, and publication of an annual National Report Card on Mental Health and Suicide Prevention
• develop, collate and analyse data and reports from numerous sources, including Commonwealth and other government and non-government agencies and internationally, with a particular focus on ensuring a cross sectoral perspective and A Contributing Life framework to mental health reform
• engage people with a lived experience of mental health issues, their families, carers and other support people in mental health policy and service improvements
• provide independent policy advice to government in consultation with relevant agencies and the broader mental health sector
• build relationships and partner with stakeholders to leverage effort including: service providers, peak community and professional bodies, government agencies, researchers, academics and state and territory governments
• produce and action key operational documents including a Three Year Strategies and Actions Plan, a 12 month Work Plan, a Participation and Engagement Framework and a Communications Strategy.
The main challenge for the NMHC in 2013-14 is to build on the momentum and action of its first year, especially the commitments of A Contributing Life: the 2012 Report Card on Mental Health and Suicide Prevention and Strategies and Actions 2012-15 plan within the confines of fiscal and human resources. Commissioning research and working in collaboration with key stakeholders including those with a lived experience and their families and support people is key to the Commission’s ongoing contribution to the debate and advice to Government on mental health reform. An immediate priority is to report back to the community on progress in response to the 2012 Report Card recommendations. Future strategic priorities will be influenced by COAG’s response to the Report Card and other emerging issues.
1.2 Agency resource statement
Table 1.1 shows the total resources from all sources. The table summarises how resources will be applied by outcome and by administered and departmental classification.
Table 1.1: NMHC Resource Statement — Budget Estimates for 2013-14 as at Budget May 2013
[pic]1 Appropriation Bill (No.1) 2013-14.
2 Includes an amount of $0.03m in 2013-14 for the Departmental Capital Budget (refer to table 3.2.5 for further details). For accounting purposes this amount has been designated as 'contributions by owners'.
3 s31 Relevant agency receipts — estimate.
Reader note: All figures are GST exclusive
1.3 Budget measures
Budget measures in Part 1 relating to the NMHC are detailed in Budget Paper No. 2 and are summarised below.
Table 1.2: Agency 2013-14 Budget measures
Part 1: Measures announced since the 2012-13 MYEFO
There are no Budget measures relating to the NMHC announced since the 2012-13 MYEFO.
Part 2: MYEFO measures not previously reported in a portfolio statement
[pic]Prepared on a Government Finance Statistics (fiscal) basis.
Section 2: Outcomes and planned performance
2.1 Outcomes and performance information
Government outcomes are the intended results, impacts or consequences of actions by the government on the Australian community. Commonwealth programs are the primary vehicle by which government agencies achieve the intended results of their outcome statements. Agencies are required to identify the programs which contribute to government outcomes over the Budget and forward years.
The outcome is described below together with its related program, specifying the performance indicators and targets used to assess and monitor the performance of the NMHC in achieving government outcomes.
|Outcome 1: Provide expert advice to the Australian Government and cross-sectoral leadership on the policy, |
|programs, services and systems that support mental health in Australia, including through administering the Annual|
|National Report Card on Mental Health and Suicide Prevention, undertaking performance monitoring and reporting, |
|and engaging consumers and carers. |
Outcome 1 Strategy
The NMHC, through Outcome 1, provides strong Commonwealth leadership in mental health reform and strengthens the public accountability of system performance and service outcomes through independent monitoring, assessment and reporting on the mental health impacts of a range of health and non-health service systems.
Mental disorders account for 13.1 per cent of Australia’s total burden of disease and injury[1] and are estimated to cost the Australian economy $20 billion annually, including through lost productivity and labour participation. In a 2007 survey, 45.5 per cent of Australians aged 16-85 years reported experiencing at least one, or a combination of, mental health issues, including anxiety, mood or substance-abuse disorders, at some point in their lifetime. 20 per cent of Australians reported experiencing one or a combination of these disorders in the 12 months prior to interview.[2]
The Australian Government is committed to ensuring Australia has a sustainable and effective mental health system. To demonstrate this commitment and to plan more effectively for the future mental health needs of the community, Australia’s first national body was established in 2012 to give mental health prominence at a national level.
The NMHC’s primary strategy to deliver results under Outcome 1 is through the ‘National Report Card on Mental Health and Suicide Prevention’ ('the Report Card'). The Report Card is produced annually to measure and give greater transparency to the performance of the systems that support people with a lived experience of mental health issues, their families, carers and other support people.
The first Report Card was published in November 2012. In December 2012 COAG welcomed the first Report Card and agreed to provide a response that would include national indicators and targets for mental health reform. An Expert Reference Group chaired by the NMHC has been established to provide advice to the Ministerial Working Group on Mental Health Reform on a set of national whole of life indicators and targets. COAG also agreed that the NMHC will report every three years to COAG on improvements and system reform.
The NMHC Work Plan sets out the key priority areas and major projects that will inform the next and future Report Cards and the NMHC’s efforts more generally.
Outcome Expense Statement
Table 2.1 provides an overview of the total expenses for Outcome 1 by program.
Table 2.1: Budgeted Expenses for Outcome 1
[pic]1 Departmental appropriation refer to ‘Ordinary annual services (Appropriation Bill No. 1)’and ‘Revenue
from independent sources (s31)’.
2 Expenses not requiring appropriation in the Budget year is made up of amortisation expense 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.
Contributions to Outcome 1
|Program 1.1: National Mental Health Commission |
|Program 1.1 Objective |
|The objectives of this program are: |
|to develop, collate and analyse data and reports, and in particular produce an annual National Report Card on |
|Mental Health and Suicide Prevention |
|to partner with other organisations and administer a range of other activities that build relationships, knowledge|
|and understanding, strengthen public accountability and transparency and improve cross sectoral system performance|
|and service outcomes |
|to review, publish and implement a Three Year Strategies and Actions Plan and an annual Work Plan |
|to develop, publish and implement a Communications Strategy |
|to partner with key organisations in the development of a Participation and Engagement Framework, to ensure the |
|meaningful contribution of people with lived experience of mental health issues, their families, carers and other |
|support people to the NMHC’s work, particularly the Report Card |
|to provide high quality, independent policy advice to the Australian Government and to distribute findings to the |
|broader sector in order to influence reform. |
|Program 1.1 Expenses |
|The NMHC has intensified its operational activity following its establishment on |
|1 January 2012. A full complement of staff are now employed to meet the program objectives. |
|[pic]1 Expenses not requiring appropriation in the Budget year is made up of amortisation expense and audit fees. |
|Program 1.1 Deliverables |
|The NMHC 2013-14 program deliverables include: |
|the 2013 National Report Card on Mental Health and Suicide Prevention |
|2013-14 implementation of the Three Year Strategies and Actions Plan and the annual Work Plan, including major |
|projects and commissioning of research to inform the Report Card |
|the Communications Strategy |
|establishment and implementation of a Participation and Engagement Framework. |
|Program 1.1 Key Performance Indicators |
|High level of satisfaction of the Prime Minister with the timeliness and quality of the NMHC’s products, policy |
|advice and support on issues relating to mental health. |
|Publication of the second annual National Report Card on Mental Health and Suicide Prevention by the end of 2013. |
|Implementation and review of a Three Year Strategies and Actions Plan as applied to 2013-14 and related 12 month |
|operational Work Plan that sets key priority areas and major projects. |
|Publication of a Communications Strategy and leadership shown in national mental health communications activity. |
|High level of community and sector engagement in and satisfaction with the NMHC’s work, including through the |
|development of a Participation and Engagement Framework in partnership with relevant organisations and peak |
|bodies. |
|Effectively operating Commission. |
Section 3: Explanatory tables and budgeted financial statements
Section 3 presents explanatory tables and budgeted financial statements which provide a comprehensive snapshot of agency finances for the 2013-14 Budget year. It explains how budget plans are incorporated into the financial statements and provides further details of the reconciliation between appropriations and program expenses, movements in administered funds, special accounts and Government Indigenous expenditure.
3.1 Explanatory tables
3.1.1 Movement of administered funds between years
The NMHC does not have any movement of administered funds between years.
3.1.2 Special Accounts
The NMHC does not have any Special Accounts.
3.1.3 Australian Government Indigenous Expenditure
The 2012-13 Australian Government Indigenous Statement is not applicable because the NMHC has no Indigenous specific expenses. However, the NMHC has identified that the mental health and social and emotional wellbeing of Aboriginal and Torres Strait Islander peoples is a priority area for its work, and a core focus of the National Report Card on Mental Health and Suicide Prevention. The NMHC has also committed to holding a minimum of one meeting a year with a focus on Indigenous mental health matters, which may involve holding a meeting within an Indigenous community and has partnered with key community groups.
3.2 Budgeted financial statements
3.2.1 Differences in agency resourcing and financial statements
The Agency Resource Statement (Table 1.1) provides a consolidated view of all the resources available to NMHC in 2013-14. For departmental items this includes equity injections and appropriation receivable that is yet to be drawn down to cover payables and provisions on the balance sheet. The comprehensive income statement (Table 3.2.1) shows only the operating appropriation provided each year.
3.2.2 Analysis of budgeted financial statements
Departmental
Income Statement
Revenue from Government will increase from $2.3m in 2012-13 to $2.8m in 2013-14 reflecting a transfer of funding from administered to departmental activities.
Balance Sheet
The NMHC has a small liability base primarily reflecting departmental employee leave entitlements.
Administered
Schedule of budgeted income and expense administered on behalf of government
Expenses administered on behalf of Government decrease from $4.2m in 2012-13 to $3.5m in 2013-14 reflecting a transfer of funds to departmental activities.
Schedule of budgeted assets and liabilities administered on behalf of government
The NMHC has no administered assets or liabilities.
3.2.3 Budgeted financial statements tables
Table 3.2.1 Comprehensive Income Statement (Showing Net Cost of Services)
(for the period ended 30 June)
[pic]1 From 2010-11, the Government introduced net cash appropriation arrangements where Bill 1 revenue
appropriations for the depreciation/amortisation expenses of FMA Act agencies were replaced with a separate capital budget (the Departmental Capital Budget, or DCB) provided through Bill 1 equity appropriations. For information regarding DCBs, please refer to Table 3.2.5 Departmental Capital Budget Statement.
Prepared on Australian Accounting Standards basis.
Table 3.2.2: Budgeted Departmental Balance Sheet
(as at 30 June)
[pic]
* 'Equity' is the residual interest in assets after deduction of liabilities.
Prepared on Australian Accounting Standards basis.
Table 3.2.3: Departmental Statement of Changes in Equity — Summary of Movement (Budget year 2013-14)
[pic]
Prepared on Australian Accounting Standards basis.
Table 3.2.4: Budgeted Departmental Statement of Cash Flows
(for the period ended 30 June)
[pic]Prepared on Australian Accounting Standards basis.
Table 3.2.5: Departmental Capital Budget Statement
[pic]1 Includes current year appropriations
DCB = Departmental Capital Budget
Prepared on Australian Accounting Standards basis.
Table 3.2.6: Statement of Asset Movements (2013-14)
[pic]
1 “Appropriation ordinary annual services" refers to funding provided through Appropriation Bill (No.1) 2013-14 for depreciation / amortisation expenses, DCBs or other operational expenses.
Prepared on Australian Accounting Standards basis.
Table 3.2.7: Schedule of Budgeted Income and Expenses Administered on Behalf of Government (for the period ended 30 June)
[pic]Prepared on Australian Accounting Standards basis.
Table 3.2.8: Schedule of Budgeted Assets and Liabilities Administered on Behalf of Government (for the period ended 30 June)
The NMHC has no assets or liabilities administered on behalf of Government.
Table 3.2.9: Schedule of Budgeted Administered Cash Flows
(for the period ended 30 June)
[pic]Prepared on Australian Accounting Standards basis.
Office of National Assessments
Agency resources and planned performance
Office of National Assessments
Section 1: Agency overview and resources 129
1.1 Strategic direction statement 129
1.2 Agency resource statement 130
1.3 Budget measures 131
Section 2: Outcomes and planned performance 132
2.1 Outcomes and performance information 132
Section 3: Explanatory tables and budgeted financial statements 138
3.1 Explanatory tables 138
3.2 Budgeted financial statements 139
Office of National Assessments
Section 1: Agency overview and resources
1.1 Strategic direction statement
The planned outcome of the Office of National Assessments (ONA) is the advancement of Australia’s national interests through increased government awareness of international developments affecting Australia.
ONA is an all-source assessment agency that reports directly to the Prime Minister. ONA provides assessments on international developments, including political, strategic and economic developments, to the Prime Minister, senior ministers and senior officials. ONA is also responsible for advancement of Australia’s national interest through the effective coordination and evaluation of Australia’s foreign intelligence activities.
1.2 Agency resource statement
Table 1.1 shows the total resources from all sources. The table summarises how resources will be applied by outcome and by administered and departmental classification.
Table 1.1: ONA Resource Statement — Budget Estimates for 2013-14 as at Budget May 2013
[pic]
1 Appropriation Bill (No.1) 2013-14.
2 Estimated adjusted balance carried forward from previous year.
3 Includes an amount of $3.5m in 2013-14 for the Departmental Capital Budget (refer to table 3.2.5 for further details). For accounting purposes this amount has been designated as 'contributions by owners'.
1.3 Budget measures
Budget measures in Part 1 relating to ONA are detailed in Budget Paper No. 2 and are summarised below.
Table 1.2: ONA 2013-14 Budget measures
Part 1: Measures announced since the 2012-13 MYEFO
[pic]
1. The lead agency for this measure is the Department of Foreign Affairs and Trade. The full measure description and package details appear in Budget Paper No. 2 under the Foreign Affairs Portfolio.
Prepared on a Government Finance Statistics (fiscal) basis.
Part 2: MYEFO measures not previously reported in a portfolio statement
[pic]
Prepared on a Government Finance Statistics (fiscal) basis.
Section 2: Outcomes and planned performance
2.1 Outcomes and performance information
Government outcomes are the intended results, impacts or consequences of actions by the Government on the Australian community. Commonwealth programs are the primary vehicle by which Government agencies achieve the intended results of their outcome statements. Agencies are required to identify the programs which contribute to Government outcomes over the Budget and forward years.
ONA's outcome is described below together with its related programs, specifying the performance indicators and targets used to assess and monitor the performance of ONA in achieving Government outcomes.
|Outcome 1: Advancement of Australia's national interests through increased government awareness of international |
|developments affecting Australia. |
Outcome 1 Strategy
The key strategies by which ONA will seek to achieve its outcome are:
• to maintain a strong customer focus by:
o staying in close contact with its customers, ensuring that ONA and the intelligence collection agencies are aware of the international issues of concern to them
o providing quality and timely coverage of subjects of political, strategic and economic significance to Australia
o seeking and using customer feedback to assess the effectiveness of its work and improve the service that ONA provides.
• to encourage the highest standards of intelligence analysis and assessment by:
o employing the best staff available, and assisting them to fulfil their potential through on-the-job training, travel and participation in staff development schemes
o promoting objectivity, creativity and analytical rigour
o facilitating access by staff to the broadest possible range of information and ideas through provision of highly capable information retrieval and storage systems.
• to keep Australia’s international intelligence activities under continuous review by:
o leading and supporting processes and committees to coordinate the foreign and broader national security intelligence activities of Australian
intelligence agencies
o monitoring their performance and resourcing in relation to the
government’s priorities
o where appropriate, recommending measures to improve the effectiveness
of Australia’s foreign intelligence effort.
• to provide a supportive and stimulating work environment, ONA will:
o cultivate and recognise excellence in analytical and support areas by all
means, including the use of the government’s workplace reforms
o encourage teamwork and close communication between management and
staff at all levels
o ensure prudent but imaginative use of its financial resources
o promote the application of equal employment opportunity, industrial
democracy, access and equity, and work health and safety
principles.
ONA depends on regular feedback about its work program from stakeholders (the Prime Minister, ministers and departments) and has developed a variety of mechanisms that help evaluate its effectiveness in achieving planned outcomes and the quality of its outputs. These are:
• close liaison with the Prime Minister’s office and with other ministers and their departments
• annual review of ONA’s performance by the Department of the Prime Minister and Cabinet
• regular internal review of ONA’s analytical and resource management objectives and performance
• evaluation of ONA’s statutory independence by the Inspector-General of Intelligence and Security.
Outcome Expense Statement
Table 2.1 provides an overview of the total expenses for Outcome 1, by program.
Table 2.1: Budgeted Expenses for Outcome 1
[pic]
1 Departmental appropriation combines ‘Ordinary annual services (Appropriation Bill No. 1)’ and ‘Revenue from independent sources (s31)’.
2 Expenses not requiring appropriation in the Budget year is made up of depreciation expense, amortisation expense, makegood expense 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.
Contributions to Outcome 1
|Program 1.1: Assessments and Reports |
|Program Objective |
|Provide accurate and timely assessments and reports to the Prime Minister, senior ministers and officials. |
|Program Expenses |
|The expenses for Program 1.1 are listed in the following table. |
|[pic] |
|1 Expenses not requiring appropriation in the Budget year is made up of depreciation expense, amortisation |
|expense, makegood expense and audit fees. |
|Program Deliverables |
|The program deliverable includes accurate and timely assessments and reports to the Prime Minister, senior |
|ministers and officials that: |
|warn of threats and adverse developments and opportunities affecting Australia’s national interests |
|inform government policy making. |
|Program Key Performance Indicators |
|Satisfaction of the Prime Minister and other key ministers as to the level of analysis and assessment provided to |
|Government. |
|ONA depends on regular feedback on its work program from clients (the |
|Prime Minister, ministers and departments) and has developed a variety of |
|mechanisms that help evaluate its effectiveness in achieving planned |
|outcomes and the quality of its outputs. These are: |
|close liaison with the Prime Minister’s office and with other ministers and their departments |
|annual review of ONA’s performance by the Department of the Prime Minister and Cabinet |
|regular internal review of ONA’s analytical and resource management objectives and performance |
|evaluation of ONA’s statutory independence by the Inspector-General of Intelligence and Security. |
|The measureable targets are: |
|satisfaction of the Prime Minister with the timeliness, accuracy and content of reports |
|positive judgement of the ONA product as judged by clients in terms of uniqueness, timeliness and responsiveness, |
|relevance and accuracy. |
|Program 1.2: Coordination and Evaluation |
|Program Objective |
|The objective of this program is to advance Australia’s national interest through the effective coordination and |
|evaluation of Australia’s foreign intelligence activities. |
|Program Expenses |
|The expenses for Program 1.2 are listed in the following table. |
|[pic] |
|1 Expenses not requiring appropriation in the Budget year is made up of depreciation expense, amortisation |
|expense, makegood expense and audit fees. |
|Program Deliverables |
|The program deliverables include: |
|improved intelligence capability and performance through the effective |
|coordination and evaluation of Australia’s foreign intelligence activities |
|provide advice on the adequacy of resources for foreign intelligence activities |
|effective intelligence relationships with close allies and partners. |
|Program Key Performance Indicators |
|ONA’s intelligence coordination mechanisms are credible and effective and deliver well-coordinated foreign |
|intelligence support to Government |
|ONA’s evaluation processes are complete and credible and inform Government. |
Section 3: Explanatory tables and budgeted financial statements
Section 3 presents explanatory tables and budgeted financial statements which provide a comprehensive snapshot of agency finances for the 2013-14 Budget year. It explains how budget plans are incorporated into the financial statements and provides further details of the reconciliation between appropriations and program expenses, movements in administered funds, special accounts and Government Indigenous expenditure.
3.1 Explanatory tables
3.1.1 Movement of Administered funds between years
ONA does not have any movement of administered funds between years.
3.1.2 Special Accounts
ONA does not have any Special Accounts.
3.1.3 Australian Government Indigenous Expenditure
ONA does not have any Indigenous specific expenses.
3.2 Budgeted financial statements
3.2.1 Differences in agency resourcing and financial statements
The agency resource statement (Table 1.1) provides a consolidated view of all the resources available to the agency in 2013-14. This includes equity injections and appropriation receivable that is yet to be drawn down to cover payables and provisions on the balance sheet. The comprehensive income statement (Table 3.2.1) shows only the operating appropriation provided in 2013-14.
3.2.2 Analysis of budgeted financial statements
Income Statement
ONA is budgeting for a break-even operating result, adjusted for depreciation and amortisation expense, in 2013-14 and the forward years.
The retained and committed surpluses from previous years will used to continue the implementation of business critical measures.
Supplier and employee expenses have increased and from 2012-13 due to increased rent costs since relocating to new office accommodation in 2011. Employee and supplier expenses have stabilised at approximately $31.8m per year and are expected to remain at this level across forward years.
Balance Sheet
The departmental balance sheet shows ONA's net asset position remaining stable.
Fit-out costs relating to the new office accommodation are capitalised against the building asset class in the balance sheet.
The main payables and provisions of ONA are expected to remain around current levels.
Statement of Cash Flows
The cash flow is consistent with, and representative of, the transactions reported in the income statement, adjusted for non-cash items and anticipated capital purchases.
ONA's working cash balance is $0.7m in accordance with ONA's agreement with the Department of Finance and Deregulation.
Capital Budget Statement
The departmental capital budget statement shows the expected capital works program for the current and forward years, including the purchase of new assets as well as replacement of exiting assets.
The statement also contains an amount appropriated for the departmental capital budget. In 2013-14 ONA will be appropriated an additional $0.67m of funding relating to the United Nations Security Council Term measure.
3.2.3 Budgeted financial statements tables
Table 3.2.1 Comprehensive Income Statement (Showing Net Cost of Services) (for the period ended 30 June)
[pic]
1. From 2010-11, the Government introduced net cash appropriation arrangements where Bill 1 revenue appropriations for the depreciation/amortisation expense of FMA Act agencies were replaced with a separate capital budget (the Department Capital Budget, or DCB) provided through Bill 1 equity appropriations. For information regarding DCBs, please refer to Table 3.2.5 Departmental Capital Budget Statement.
Prepared on Australian Accounting Standards basis.
Table 3.2.2: Budgeted Departmental Balance Sheet
(as at 30 June)
[pic]
* 'Equity' is the residual interest in assets after deduction of liabilities.
Prepared on Australian Accounting Standards basis.
Table 3.2.3: Departmental Statement of Changes in Equity — Summary of Movement (Budget year 2013-14)
[pic]
Prepared on Australian Accounting Standards basis.
Table 3.2.4: Budgeted Departmental Statement of Cash Flows
(for the period ended 30 June)
[pic]Prepared on Australian Accounting Standards basis.
Table 3.2.5: Departmental Capital Budget Statement
[pic]
1. Does not include annual finance lease costs. Include purchase from current and previous year’s
Departmental Capital Budgets.
DCB = Departmental Capital Budget
Prepared on Australian Accounting Standards basis.
Table 3.2.6: Statement of Asset Movements (2013-14)
[pic]
1 "Appropriation ordinary annual services" refers to funding provided through Appropriation Bill (No.1)
2013-14 for the DCB.
Prepared on Australian Accounting Standards basis.
Office of the Commonwealth Ombudsman
Agency resources and planned performance
Office of the Commonwealth Ombudsman
Section 1: Agency overview and resources 151
1.1 Strategic direction statement 151
1.2 Agency resource statement 152
1.3 Budget measures 153
Section 2: Outcomes and planned performance 154
2.1 Outcomes and performance information 154
Section 3: Explanatory tables and budgeted financial statements 158
3.1 Explanatory tables 158
3.2 Budgeted financial statements 159
Office of the Commonwealth Ombudsman
Section 1: Agency overview and resources
1 Strategic direction statement
The planned outcome of the Office of the Commonwealth Ombudsman (OCO) is fair and accountable administration by Australian Government agencies by investigating complaints, reviewing administrative action and assessing statutory compliance by law enforcement agencies.
The OCO safeguards the community in its dealings with Australian Government agencies and related service providers by:
• correcting administrative deficiencies through independent review of complaints about administrative action of Australian Government agencies and related service providers (e.g. private registered providers of education services to overseas students, postal industry operators)
• assisting community members to resolve complaints about government administration action
• fostering good public administration that is fair, lawful, accountable and responsive
• developing policies and principles for accountability
• assessing statutory compliance by relevant agencies through inspections.
In 2013–14 the OCO will continue its focus on significant and systemic issues arising from complaints, inspections, monitoring and feedback from the community. We will continue our endeavours in improving our policies, procedures and practices to deliver efficient, practical, higher quality and more consistent responses to complaints.
The strategic priorities of the OCO are to:
• be responsive to areas of need in allocating resources, including new prescribed priorities
• target engagement with key stakeholders, particularly to identify opportunities for collaboration with intermediaries and partners
• build on work practices and organisational changes to deliver improved quality, efficiency and consistency in managing complaints, investigations and reporting
• improve quality assurance and review of complaint handling.
1.2 Agency resource statement
Table 1.1 shows the total resources from all sources. The table summarises how resources will be applied by outcome and by administered and departmental classification.
Table 1.1: OCO Resource Statement — Budget Estimates for 2013-14 as at Budget May 2013
[pic]1 Appropriation Bill (No.1) 2013-14.
2 Estimated adjusted balance carried forward from previous year.
3 Includes an amount of $0.6m in 2013-14 for the Departmental Capital Budget (refer to table 3.2.5 for further details). For accounting purposes this amount has been designated as 'contributions by owners'.
4 s31 relevant agency receipts — estimate.
Reader note: All figures are GST exclusive.
1.3 Budget measures
Budget measures relating to the OCO are detailed in Budget Paper No. 2 and are summarised below.
Table 1.2: OCO 2013-14 Budget measures
Part 1: Measures announced since the 2012-13 MYEFO
There are no Budget measures relating to the OCO announced since the 2012-13 MYEFO.
Part 2: MYEFO measures not previously reported in a portfolio statement
[pic]
Prepared on a Government Finance Statistics (fiscal) basis.
Section 2: Outcomes and planned performance
2.1 Outcomes and performance information
Government outcomes are the intended results, impacts or consequences of actions by the Government on the Australian community. Commonwealth programs are the primary vehicle by which Government agencies achieve the intended results of their outcome statements. Agencies are required to identify the programs which contribute to Government outcomes over the Budget and forward years.
The OCO’s Outcome is described below together with its related programs, specifying the performance indicators and targets used to assess and monitor the performance of the OCO in achieving Government outcomes.
|Outcome 1: Fair and accountable administrative action by Australian Government agencies by investigating |
|complaints, reviewing administrative action and inspecting statutory compliance by law enforcement agencies. |
Outcome 1 Strategy
The key strategies by which the OCO will seek to achieve its Outcome are to:
• provide authoritative advice on complaints-handling, good public administration, inspections and other emerging public administration issues
• invest in our capability and business processes to provide effective and efficient oversight and complaints handling
• build our capacity to be a trusted advisor on good public administration, including complaints-handling and statutory compliance assessments.
Outcome Expense Statement
Table 2.1 provides an overview of the total expenses for Outcome 1 by program.
Table 2.1: Budgeted Expenses for Outcome 1
[pic]
1 Departmental appropriation combines ‘Ordinary annual services (Appropriation Bill No. 1)’ and ‘Revenue from independent sources (s31)’.
2 Expenses not requiring appropriation in the Budget year is made up of depreciation expense, amortisation expense and audit fees.
Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of the Budget year as Government priorities change.
Contributions to Outcome 1
|Program 1.1: Office of the Commonwealth Ombudsman |
|Program Objectives |
|The objectives of this program are to: |
|contribute to the fair treatment of people by the agencies we oversight |
|provide an accessible, effective and targeted complaints-handling service |
|accurately assess agency compliance with legislation in the agency use of covert or coercive powers. |
|Program Expenses |
|There are no significant changes in the level of activity or funding required for this program in 2013-14 or the |
|forward years. |
|[pic] |
|1 Departmental appropriation combines ‘Ordinary annual services (Appropriation Bill No.1)’ and ‘Revenue from |
|independent sources (s31)’. |
|2 Expenses not requiring appropriation in the Budget year is made up of depreciation expense, amortisation expense|
|and audit fees. |
| |
|Program Deliverables |
|The program deliverables include: |
|identification and reporting of significant and systemic problems in public administration including making |
|recommendations and reporting on implementation |
|targeted stakeholder engagement through the provision of information and education regarding the role of the OCO |
|contribution to public administration through speeches, reports, submissions and best practice guides |
|oversight of selective covert or coercive powers used by relevant agencies. |
|Program Key Performance Indicators |
|Qualitative |
|handling of investigated complaints meets internal and external service standards |
|inspections conducted and reports produced in accordance with legislative and other requirements |
|Ombudsman recommendations monitored for implementation within agencies. |
|Quantitative |
|investigations, reports and submissions to Parliament and Government completed and timely |
|inspections and reports completed within statutory timeframes. |
Section 3: Explanatory tables and budgeted financial statements
Section 3 presents explanatory tables and budgeted financial statements which provide a comprehensive snapshot of agency finances for the 2013-14 Budget year. It explains how budget plans are incorporated into the financial statements and provides further details of the reconciliation between appropriations and program expenses, movements in administered funds, special accounts and Government Indigenous expenditure.
3.1 Explanatory tables
3.1.1 Movement of Administered funds between years
The OCO does not have any movement of administered funds between years.
3.1.2 Special Accounts
The OCO does not have any Special Accounts.
3.1.3 Australian Government Indigenous Expenditure
The OCO does not have any Indigenous specific expenditure.
3.2 Budgeted financial statements
3.2.1 Differences in agency resourcing and financial statements
The agency resource statement (Table 1.1) provides a consolidated view of the resources available to the office in 2013-14. This includes equity injections (provided as Departmental Capital Budget) and appropriation receivable. The comprehensive income statement (Table 3.2.1) shows only the operating appropriation provided in 2013-14.
3.2.2 Analysis of budgeted financial statements
Departmental
Income Statement
The OCO is budgeting for a break-even operating result after adjustments for unfunded depreciation and amortisation expense in 2013-14 and the forward years.
Revenue from Government (appropriation funding) has decreased from $18.2m in 2012-13 to $18.0m in 2013-14. This reduction is the combined effect of targeted savings and changes in price and wage indices.
Supplier expenses will reduce in line with the reduced appropriation consistent with Government policy to reduce spending on items such as travel, advertising and printing.
Balance Sheet
The OCO’s budgeted net asset position at 30 June 2014 will be $2.8m (2012–13: $3.0m).
Payables and provisions are expected to remain at around the current levels with the primary liability continuing to be accrued employee entitlements.
Statement of Changes in Equity
The statement of changes in equity shows the expected movements in equity over the 2013–14 year. The retained earnings portion of equity will reduce as a result of the net cash appropriations not providing revenue to fund the depreciation expense. This is partially offset by an increase in contributed equity where the funding for the OCO’s departmental capital budget is recorded.
Statement of Cash Flows
The OCO maintains a working cash balance of $0.2m.
Capital Budget Statement
The capital budget statement shows a continuing investment in non-financial assets. This includes purchase of new assets as well as replacement of existing assets.
The table also shows the amount of appropriation budget in relation to the departmental capital budget.
Statement of Asset Movements
The statement of asset movements expands on the capital budget statement and shows, by category of assets, the change in value from the beginning to the end of the 2013-14 year.
3.2.3 Budgeted financial statements tables
Table 3.2.1 Comprehensive Income Statement (Showing Net Cost of Services)
(for the period ended 30 June)
[pic]
1 "From 2010-11, the Government introduced net cash appropriation arrangements where Bill 1 revenue appropriations for the depreciation/amortisation expenses of FMA Act agencies were replaced with a separate capital budget (the Departmental Capital Budget, or DCB) provided through Bill 1 equity appropriations. For information regarding DCBs, please refer to Table 3.2.5 Departmental Capital Budget Statement.
Prepared on Australian Accounting Standards basis.
Table 3.2.2: Budgeted Departmental Balance Sheet
(as at 30 June)
[pic]* 'Equity' is the residual interest in assets after deduction of liabilities.
Prepared on Australian Accounting Standards basis.
Table 3.2.3: Departmental Statement of Changes in Equity — Summary of Movement (Budget year 2013-14)
[pic]Prepared on Australian Accounting Standards basis.
Table 3.2.4: Budgeted Departmental Statement of Cash Flows
(for the period ended 30 June)
[pic]Prepared on Australian Accounting Standards basis.
Table 3.2.5: Departmental Capital Budget Statement
[pic]
1. Does not include annual finance lease costs. Includes purchases from current and previous years' Departmental Capital Budgets.
DCB = Departmental Capital Budget
Prepared on Australian Accounting Standards basis.
Table 3.2.6: Statement of Asset Movements (2013-14)
[pic]
1 "Appropriation ordinary annual services" refers to funding provided through Appropriation Bill (No.1)
2013-14 for the DCB.
Prepared on Australian Accounting Standards basis.
Office of the Inspector-General of Intelligence and Security
Agency resources and planned performance
Office of the Inspector-General of Intelligence and Security
Section 1: Agency overview and resources 171
1.1 Strategic direction statement 171
1.2 Agency resource statement 172
1.3 Budget measures 173
Section 2: Outcomes and planned performance 174
2.1 Outcomes and performance information 174
Section 3: Explanatory tables and budgeted financial statements 178
3.1 Explanatory tables 178
3.2 Budgeted financial statements 179
Office of the Inspector-General of Intelligence and Security
Section 1: Agency overview and resources
1.1 Strategic direction statement
The planned Outcome for the Office of the Inspector-General of Intelligence and Security (OIGIS) is the provision of independent assurance for the Prime Minister, senior ministers and Parliament as to whether Australia’s intelligence and security agencies act legally and with propriety by inspecting, inquiring into and reporting on their activities.
OIGIS provides a specialised review mechanism for the six agencies that comprise the Australian Intelligence Community:
• Australian Security Intelligence Organisation (ASIO)
• Australian Secret Intelligence Service (ASIS)
• Defence Imagery and Geospatial Organisation (DIGO)
• Defence Intelligence Organisation (DIO)
• Defence Signals Directorate (DSD)
• Office of National Assessments (ONA).
A proactive inspection program is undertaken by OIGIS each year into the activities of each Australian Intelligence Community agency. Formal inquiries may also be conducted at the Inspector-General’s own motion, as a result of complaints received, or by request from relevant ministers. The Prime Minister can request the Inspector-General to inquire into an intelligence or security matter relating to an Australian Government agency outside of the Australian Intelligence Community. During formal inquiries, the Inspector-General of Intelligence and Security Act 1986 provides for the use of strong coercive powers, immunities and protections.
In conducting its inquiries and inspections, OIGIS focuses on compliance by the Australian Intelligence Community agencies with Australian law and ministerial directions, the propriety of their activities, and respect for human rights.
1.2 Agency resource statement
Table 1.1 shows the total resources from all sources. The table summarises how resources will be applied by outcome and by administered and departmental classification.
Table 1.1: OIGIS Resource Statement — Budget Estimates for 2013-14 as at Budget May 2013
[pic]
1 Appropriation Bill (No.1) 2013-14.
2 Estimated adjusted balance carried forward from previous year.
3 Includes an amount of $0.69m in 2013-14 for the Departmental Capital Budget (refer to table 3.2.5 for further details). For accounting purposes this amount has been designated as 'contributions by owners'.
4 Appropriation Bill (No.2) 2013-14.
Reader note: All figures are GST exclusive.
1.3 Budget measures
Budget measures in Part 1 relating to OIGIS are detailed in Budget Paper No. 2 and are summarised below.
Table 1.2: OIGIS 2013-14 Budget measures
Part 1: Measures announced since the 2012-13 MYEFO
There are no Budget measures relating to OIGIS announced since the 2012-13 MYEFO.
Part 2: MYEFO measures not previously reported in a portfolio statement
[pic]
Prepared on a Government Finance Statistics (fiscal) basis.
Section 2: Outcomes and planned performance
2.1 Outcomes and performance information
Government outcomes are the intended results, impacts or consequences of actions by the Government on the Australian community. Commonwealth programs are the primary vehicle by which Government agencies achieve the intended results of their outcome statements. Agencies are required to identify the programs which contribute to Government outcomes over the Budget and forward years.
OIGIS’ Outcome is described below together with its related programs, specifying the performance indicators and targets used to assess and monitor the performance of OIGIS in achieving Government outcomes.
|Outcome 1: Independent assurance for the Prime Minister, senior ministers and Parliament as to whether Australia’s|
|intelligence and security agencies act legally and with propriety by inspecting, inquiring into and reporting on |
|their activities. |
Outcome 1 Strategy
The key strategies by which OIGIS will seek to achieve its outcome are:
• to continue the agency’s inspection activities, which involve proactively monitoring and reviewing the activities of the Australian Intelligence Community agencies
• where appropriate, to initiate ‘own motion’ inquiries and investigate complaints or referrals about the activities of the Australian Intelligence Community agencies
• at the request of the Prime Minister, to inquire into an intelligence and security matter of a non-Australian Intelligence Community agency.
Outcome Expense Statement
Table 2.1 provides an overview of the total expenses for Outcome 1 by program.
Table 2.1: Budgeted Expenses for Outcome 1
[pic]
1 Departmental appropriation combines ‘Ordinary annual services (Appropriation Bill No. 1)’ and ‘Revenue from independent sources (s31)’.
2 Expenses not requiring appropriation in the Budget year is made up of depreciation expense, amortisation expense, makegood expense, audit fees, IT and other services provided free of charge.
Contributions to Outcome 1
|Program 1.1: Office of the Inspector-General of Intelligence and Security |
|Program Objective |
|The objectives are: |
|to fulfil the responsibilities and functions outlined in the Inspector-General of Intelligence and Security Act |
|1986 |
|to provide independent assurance for the Prime Minister, senior ministers and Parliament as to whether Australia’s|
|intelligence and security agencies are acting legally and with propriety. |
|Program Expenses |
|The most significant program expenses are employee-related expenses. OIGIS also receives significant assistance |
|free of charge from the Department of the Prime Minister and Cabinet. |
|Factors that may have future resourcing implications include: |
|changes in Australian Intelligence Community activities |
|changes in the jurisdiction or role of OIGIS |
|changes in complaint or inquiry numbers. |
|[pic] |
|1 Expenses not requiring appropriation in the Budget year is made up of depreciation expense, amortisation |
|expense, makegood expense, audit fees, IT and other services provided free of charge. |
|Program Deliverables |
|The program deliverables include: |
|conducting own motion inquiries as appropriate |
|undertaking a comprehensive inspection and visits program to monitor and review casework |
|providing effective and timely responses to complaints or referrals received from members of the public, ministers|
|or Members of Parliament |
|undertaking presentations to new and existing members of the Australian Intelligence Community agencies to ensure |
|an awareness and understanding of their responsibilities and accountability |
|liaising with other accountability or integrity agencies in Australia and overseas. |
|Program Key Performance Indicators |
|The breadth and depth of inspection work undertaken. |
|The timeliness of completion of inquiries or complaint resolution. |
|The level of acceptance by agencies, complainants and ministers of findings and recommendations of inquiries |
|conducted. |
|The extent to which there has been change within the agencies as a result of activities of OIGIS. |
Section 3: Explanatory tables and budgeted financial statements
Section 3 presents explanatory tables and budgeted financial statements which provide a comprehensive snapshot of agency finances for the 2013-14 Budget year. It explains how budget plans are incorporated into the financial statements and provides further details of the reconciliation between appropriations and program expenses, movements in administered funds, Special Accounts and Government Indigenous expenditure.
3.1 Explanatory tables
3.1.1 Movement of Administered funds between years
OIGIS does not have any movement of administered funds between years.
3.1.2 Special Accounts
OIGIS does not have any Special Accounts.
3.1.3 Australian Government Indigenous Expenditure
OIGIS does not have any Indigenous specific expenses.
3.2 Budgeted financial statements
3.2.1 Differences in agency resourcing and financial statements
The agency resource statement (Table 1.1) provides a consolidated view of all the resources available to the agency in 2013-14. This includes equity injections and appropriations receivable that are yet to be drawn down to cover payables and provisions in the balance sheet. The comprehensive income statement (Table 3.2.1) shows only the operating appropriations provided in 2013-14.
3.2.2 Analysis of budgeted financial statements
Income Statement
OIGIS is budgeting for a break-even operating result, adjusted for depreciation and amortisation expense, in 2013-14 and the forward years.
As in previous years, the most significant component of the standard operating expenditure will be salary related, which reflects the nature of the agency’s activities and functions.
The resources received free of charge include the office space occupied in the Department of the Prime Minister and Cabinet building (estimated value: $0.1m per year), the financial audit services provided by the Australian National Audit Office (estimated value $0.014m per year) and maintenance of the internal secure communications network provided by the Defence Signals Directorate (estimated value: $0.02m per year).
Balance Sheet
The capital budget in 2013-14 includes $0.069m which has been allocated to upgrade the secure IT network system to maintain the security and currency of the system. The secure IT network represents the most significant component of OIGIS’ assets and was last upgraded during 2011-12. OIGIS’ also holds office equipment and furniture, the majority of which are owned by the Department of the Prime Minister and Cabinet and provided free of charge.
The agency operates under a cash-level agreement with the Department of Finance and Deregulation whereby funds are only drawn down from OIGIS’ appropriation once the cash held falls below $0.2m.
OIGIS’ significant liabilities include accrued leave liabilities.
Statement of Cash Flows
The cash holdings remain relatively constant over the years due to the cash level agreement between OIGIS and the Department of Finance and Deregulation.
Capital Budget Statement
The capital budget for 2013-14 is $0.7m.
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.
3.2.3 Budgeted financial statements tables
Table 3.2.1 Comprehensive Income Statement (Showing Net Cost of Services)
(for the period ended 30 June)
[pic]
1. From 2010-11, the Government introduced net cash appropriation arrangements where Bill 1 revenue appropriations for the depreciation/amortisation expenses of FMA Act agencies were replaced with a separate capital budget (the Departmental Capital Budget, or DCB) provided through Bill 1 equity appropriations. For information regarding DCBs, please refer to Table 3.2.5 Departmental Capital Budget Statement.
Prepared on Australian Accounting Standards basis.
Table 3.2.2: Budgeted Departmental Balance Sheet
(as at 30 June)
[pic]
* 'Equity' is the residual interest in assets after deduction of liabilities.
Prepared on Australian Accounting Standards basis.
Table 3.2.3: Departmental Statement of Changes in Equity — Summary of Movement (Budget year 2013-14)
[pic]
Prepared on Australian Accounting Standards basis.
Table 3.2.4: Budgeted Departmental Statement of Cash Flows
(for the period ended 30 June)
[pic]Prepared on Australian Accounting Standards basis.
Table 3.2.5: Departmental Capital Budget Statement
[pic]1 Includes prior year’s Bill 2 appropriations.
2 Includes purchases from current and previous years' DCB.
DCB = Departmental Capital Budget.
Prepared on Australian Accounting Standards basis.
Table 3.2.6: Statement of Asset Movements (2013-14)
[pic]
1 "Appropriation ordinary annual services" refers to funding provided through Appropriation Bill (No.1)
2013-14 for the DCB.
Prepared on Australian Accounting Standards basis.
Office of the Official Secretary to the Governor-General
Agency resources and planned performance
Office of the Official Secretary to the Governor-General
Section 1: Agency overview and resources 191
1.1 Strategic direction statement 191
1.2 Agency resource statement 192
1.3 Budget measures 193
Section 2: Outcomes and planned performance 194
2.1 Outcomes and performance information 194
Section 3: Explanatory tables and budgeted financial statements 200
3.1 Explanatory tables 200
3.2 Budgeted financial statements 201
Office of the Official Secretary to the Governor-General
Section 1: Agency overview and resources
1 Strategic direction statement
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 them 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. The continuation of the ten-year Vice-Regal Heritage Property Master Plan remains a priority during the forward estimates.
2 Agency resource statement
Table 1.1 shows the total resources from all sources. The table summarises how resources will be applied by outcome and by administered and departmental classification.
Table 1.1: OOSGG Resource Statement — Budget Estimates for 2013-14 as at Budget May 2013
[pic]
1. Appropriation Bill (No.1) 2013-14.
2. Estimated adjusted balance carried forward from previous year.
3. Includes an amount of $0.4m in 2013-14 for the Departmental Capital Budget (refer to table 3.2.5 for
further details). For accounting purposes this amount has been designated as 'contributions by owners'.
4. s31 Relevant Agency receipts – estimate.
Reader note: All figures are GST exclusive.
3 Budget measures
Budget measures in Part 1 relating to the OOSGG are detailed in Budget Paper No. 2 and are summarised below.
Table 1.2 OOSGG 2013-14 Budget Measures
Part 1: Measures announced since the 2012-13 MYEFO
There are no budget measures relating to the OOSGG announced since the 2012-13 MYEFO.
Part 2: MYEFO measures not previously reported in a portfolio statement
[pic]
Prepared on a Government Finance Statistics (fiscal) basis.
Section 2: Outcomes and planned performance
2.1 Outcomes and performance information
Government outcomes are the intended results, impacts or consequences of actions by the Government on the Australian community. Commonwealth programs are the primary vehicle by which Government agencies achieve the intended results of their outcome statements. Agencies 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, specifying the performance indicators and targets used to assess and monitor the performance of the OOSGG in achieving Government outcomes.
|Outcome 1: The performance of the Governor-General’s role is facilitated through the organisation and management |
|of official duties, management and maintenance of the official household and property and administration of the |
|Australian Honours and Awards system. |
Outcome 1 Strategy
The OOSGG will seek to achieve its Outcome by:
• providing a high standard of advice and service delivery to the Governor-General and stakeholders
• delivering effective governance and management arrangements in support of the official duties of the Governor-General
• ensuring efficient and effective stewardship of the properties in accordance with heritage requirements and approved capital works and maintenance programs
• educating and informing Australians about the role of the Governor-General
• delivering efficient and effective administration of the Australian Honours and Awards system.
Outcome Expense Statement
Table 2.1 provides an overview of the total expenses for Outcome 1, by its program.
Table 2.1: Budgeted Expenses for Outcome 1
[pic]
1. Departmental appropriation combines "Ordinary annual services (Appropriation Bill No. 1)" and "Revenue from independent sources (s31)".
2. Expenses not requiring appropriation in the Budget year is made up of depreciation expense, amortisation expense, makegood expense and audit fees.
Contributions to Outcome 1
|Program 1.1: Support for the Governor-General and Official Functions |
|Program Objectives |
|The program comprises two components: |
|support of the Governor-General |
|administration of the Australian Honours and Awards system. |
|The objectives of this program are: |
|to provide a high level of advice and administrative support to the Governor-General in support of official duties|
|to effectively and efficiently manage and maintain the Governor-General’s official residences in Canberra and |
|Sydney, including capital improvements, building and grounds maintenance, and caretaker responsibilities |
|to administer, on behalf of the Governor-General, the Australian Honours and Awards system, including all civilian|
|honours, and awards for members of the Australian Defence Force |
|to undertake research and prepare nominations for consideration by the Council for the Order of Australia, the |
|Australian Bravery Decorations Council and the National Emergency Medal Committee |
|to provide efficient and effective secretariat support to the Australian honours advisory bodies |
|to undertake the efficient procurement of Australian honours medals/insignia, warrants and investiture items. |
|Program Expenses |
|[pic] |
|Expenses not requiring appropriation in the Budget year is made up of depreciation expense, amortisation expense, |
|makegood expense and audit fees. |
|Program Components |
|[pic] |
|Program Deliverables |
|The deliverables for the primary components of this program are listed below. |
|Component 1: Support of the Governor-General |
|Executive support—includes providing advice to the Governor-General, planning, implementing and managing Their |
|Excellencies’ forward program of engagements, and liaising with representatives of governments, related |
|authorities, and community groups. |
|Personal support—includes providing support for Their Excellencies and hospitality services for official |
|functions. |
|Administrative services—includes providing governance advice and administrative services to OOSGG and managing the|
|Governor-General’s official residences, including maintenance of property, equipment and grounds. |
|Component 2: Administration of the Australian Honours and Awards system |
|Management of the honours and awards system. |
|Providing secretariat support for the Council for the Order of Australia, the Australian Bravery Decorations |
|Council and the new National Emergency Medal Committee. |
|Undertaking research and preparation of nominations for consideration by the Australian honours advisory bodies. |
|Contributing to the Australian Government’s promotional activities to increase awareness of the Australian honours|
|system. |
|Program Key Performance Indicators |
|Component 1: Support of the Governor-General |
|The Governor-General is satisfied with the level of advice and administrative support provided that enables her 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 Official Establishments Trust, and the National Capital Authority. |
|Component 2: Administration of the Australian Honours and Awards system |
|The Order of Australia, the Australian Bravery Decorations and the National Emergency Medal advisory bodies are |
|satisfied with the quality of research and administrative support provided. |
|The medals and insignia meet design specifications. |
|90 per cent of nominations for awards within the Order of Australia are researched and presented to the Council |
|for the Order of Australia within 18 months of being received. |
|95 per cent of nominations for bravery awards are presented to the Australian Bravery Decorations Council within 6|
|months of being researched. |
|95 per cent of recommendations for long service and occupational awards are processed within 2 months of being |
|received. |
|95 per cent of recommendations for distinguished, conspicuous, gallantry and meritorious awards are processed and |
|gazetted within 6 months of being received. |
|95 per cent of valid and researched nominations for the National Emergency Medal - Significant Service, are |
|presented to the next scheduled National Emergency Medal Committee meeting. |
|90 per cent of valid applications received for the National Emergency Medal — Sustained Service, are processed |
|within 6 months of being received. |
Section 3: Explanatory tables and budgeted financial statements
Section 3 presents explanatory tables and budgeted financial statements which provide a comprehensive snapshot of agency finances for the 2013-14 Budget year. It explains how budget plans are incorporated into the financial statements and provides further details of the reconciliation between appropriations and program expenses, movements in administered funds, special accounts and Government Indigenous expenditure.
3.1 Explanatory tables
3.1.1 Movement of Administered funds between years
The OOSGG does not have any movement of administered funds between years.
3.1.2 Special Accounts
The OOSGG does not have any Special Accounts.
3.1.3 Australian Government Indigenous Expenditure
The OOSGG does not have any Indigenous specific expenditure.
3.2 Budgeted financial statements
3.2.1 Differences in agency resourcing and financial statements
The agency resourcing statement (Table 1.1) provides a consolidated view of all the resources available to the agency in 2013-14. This includes equity injections and appropriation receivable that is yet to be drawn down to cover payables and provisions on the balance sheet. The income statement (Table 3.1.1) shows only the operating appropriation provided in 2013-14.
3.2.2 Analysis of budgeted financial statements
Departmental
Income statement
The OOSGG is budgeting for a break-even operating result, adjusted for depreciation and amortisation expense, in 2013-14 and the forward years.
In line with net cash appropriation arrangements that became effective from 2010-11, revenue from government has been reduced by an amount equal to depreciation and amortisation expense. Future asset replacements are funded through the departmental capital budget detailed in Table 3.2.5.
The comprehensive income statement sets out the expected operating results for the ordinary annual services provided by the OOSGG, which are funded by departmental appropriations and other revenue.
Balance sheet
The movement in the OOSGG’s net asset position is principally as a result of the procurement of replacement infrastructure, plant and equipment assets owned by the OOSGG. The value of buildings in the balance sheet represents the value of work in progress of assets being developed under the Vice-Regal Heritage Property Master Plan.
The OOSGG’s primary liability is accrued employee entitlements.
Administered
Income and expenses administered on behalf of government
The OOSGG will receive administered appropriations of $2.5m in 2013–14 for the Governor-General’s salary, for support of the Australian Honours and Awards system and for administered depreciation.
Assets and liabilities administered on behalf of the government
The value of land and buildings are expected to increase in 2013–14 and the forward years due to the completion of projects developed under the Vice-Regal Heritage Property Master Plan.
3.2.3 Budgeted financial statements tables
Table 3.2.1 Comprehensive Income Statement (Showing Net Cost of Services)
(for the period ended 30 June)
[pic]
1. From 2010-11, the Government introduced net cash appropriation arrangements where Bill 1 revenue appropriations for the depreciation/amortisation expenses of FMA Act agencies were replaced with a separate capital budget (the Departmental Capital Budget, or DCB) provided through Bill 1 equity appropriations. For information regarding DCBs, please refer to Table 3.2.5 Departmental Capital Budget Statement.
Prepared on Australian Accounting Standards basis.
Table 3.2.2: Budgeted Departmental Balance Sheet
(as at 30 June)
[pic]* 'Equity' is the residual interest in assets after deduction of liabilities.
Prepared on Australian Accounting Standards basis.
Table 3.2.3: Departmental Statement of Changes in Equity — Summary of Movement (Budget year 2013-14)
[pic]
Prepared on Australian Accounting Standards basis.
Table 3.2.4: Budgeted Departmental Statement of Cash Flows
(for the period ended 30 June)
[pic]Prepared on Australian Accounting Standards basis.
Table 3.2.5: Departmental Capital Budget Statement
[pic]
1. Includes both current and prior Bill 2 appropriations and special capital appropriations.
2. Does not include annual finance lease costs. Include purchase from current and previous years Departmental Capital Budgets.
3. Includes the following sources of funding: current and prior year Bill 1/3/5 appropriations (excluding amounts from the DCB), donations and contributions, gifts, internally developed assets, s31 relevant agency receipts (for FMA agencies only), proceeds from the sale of assets.
DCB = Departmental Capital Budget
Prepared on Australian Accounting Standards basis.
Table 3.2.6: Statement of Asset Movements (2013-14)
[pic]
1. "Appropriation equity" refers to equity injections or administered assets and liabilities appropriations provided through Appropriation Bill (No.2) 2013-14, including CDABs.
2. "Appropriation ordinary annual services" refers to funding provided through Appropriation Bill (No.1) 2013-14 for depreciation / amortisation expenses, DCBs or other operational expenses.
3. Net proceeds may be returned to the OPA.
Prepared on Australian Accounting Standards basis.
Table 3.2.7: Schedule of Budgeted Income and Expenses Administered on Behalf of Government (for the period ended 30 June)
[pic]Prepared on Australian Accounting Standards basis.
Table 3.2.8: Schedule of Budgeted Assets and Liabilities Administered on Behalf of Government (as at 30 June)
[pic]Prepared on Australian Accounting Standards basis.
Table 3.2.9: Schedule of Budgeted Administered Cash Flows
(for the period ended 30 June)
[pic]
Prepared on Australian Accounting Standards basis.
Table 3.2.10: Schedule of Administered Capital Budget Statement
[pic]
1 Includes the following sources of funding: current and prior year Bill 1/3/5 appropriations (excluding amounts from the DCB), donations and contributions, gifts, internally developed assets, s31 relevant agency receipts (for FMA agencies only), proceeds from the sale of assets.
Prepared on Australian Accounting Standards basis.
Table 3.2.11: Statement of Administered Asset Movements (2013-14)
[pic]
Prepared on Australian Accounting Standards basis.
Glossary
Glossary
|Accumulated |The aggregate depreciation recorded for a particular depreciating asset. |
|depreciation | |
|Actual available appropriation |The actual available appropriation indicates the total appropriations |
| |available to the agency for 2012-13 as at the 2013-14 Budget. It includes |
| |all appropriations made available to the agency in the year (+/– section 32 |
| |transfers, formal reductions, advance to the Finance Minister and movements |
| |of funds). It is the same as the comparator figure included in the |
| |Appropriation Bills and, as such, provides a comparison with the |
| |appropriation proposed for the Budget year. |
|Additional estimates |Where amounts appropriated at Budget time are insufficient, Parliament may |
| |appropriate more funds to portfolios through the Appropriation Estimates |
| |Acts. |
|Administered item |Appropriation that consists of funding managed on behalf of the |
| |Commonwealth. This funding is not at the discretion of the agency and any |
| |unspent appropriation is returned to the 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. |
|Agency |Generic term for Australian Government General Government Sector entities, |
| |including those governed by the FMA Act or CAC Act and the High Court of |
| |Australia. |
|Appropriation |An amount of public money parliament authorises for spending (i.e. funds to |
| |be withdrawn from the CRF). Parliament makes laws for appropriating money |
| |under the Annual Appropriation Acts and under Special Appropriations, with |
| |spending restricted to the purposes specified in the Appropriation Acts. |
|Appropriation Acts No 1 & 3 |These appropriation Acts provide for matters that are considered to be the |
| |ordinary annual services of the government. Bills proposing appropriations |
| |for ordinary annual services cannot be amended by the Senate under section |
| |53 of the Constitution. |
|Budget Paper 1 (BP1) |Budget Strategy and Outlook. Provides information and analysis on |
| |whole-of-government expenditure and revenue. |
|Budget Paper 2 (BP2) |Budget Measures. Provides a description of each budget measure by portfolio.|
|Budget Paper 3 (BP3) |Australia‘s Federal Relations. Provides information and analysis on federal |
| |funding provided to the states and territories. |
|Budget Paper 4 (BP4) |Agency Resourcing. Details total resourcing available to agencies. |
|Capital expenditure |Expenditure by an agency on capital projects; for example, purchasing a |
| |building. |
|Consolidated Revenue Fund |The principal operating fund from which money is drawn to pay for the |
| |activities of the Government. Section 81 of the Australian Constitution |
| |provides that all revenue raised or monies received by the Executive |
| |Government forms one consolidated revenue fund from which appropriations are|
| |made for the purposes of the Australian Government. |
|Departmental Capital Budget (DCB) |Net cash appropriation arrangements involve the cessation of funding for |
| |depreciation, amortisation and makegood expenses. Funding for these expenses|
| |has been replaced with a collection development and acquisition budget |
| |(CDAB) for designated collection institutions (DCIs), and departmental |
| |capital budgets (DCBs) for FMA Act agencies. |
|Departmental item |Resources (assets, liabilities, revenues and expenses) that agency chief |
| |executive officers control directly. This includes outsourced activities |
| |funded and controlled by the agency. Examples of departmental items include |
| |agency running costs, accrued employee entitlements and net appropriations. |
| |A departmental item is a component of a departmental 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 or agency under the Financial Management and Accountability Act|
| |1997 (FMA Act), a company or authority under the Commonwealth Authorities |
| |and Companies Act 1997 (CAC Act) or any other Commonwealth statutory |
| |authority. |
|Estimated actual |Details of the current year‘s estimated final figures as included in the |
|expenses |Budget documentation. As the Budget is released in May each year, but the |
| |financial year does not close off until 30 June, the current year numbers |
| |that are used for comparison with Budget amounts can only be estimates. |
|Expenditure |Spending money from the Consolidated Revenue Fund or a notional payment to |
| |an FMA agency. |
|Expense |Decreases in economic benefits in the form of outflows or depletions of |
| |assets or incurrence of liabilities that result in decreases in equity, |
| |other than those relating to distributions to equity participants. |
|Expenses not requiring appropriation |Expenses not involving a cash flow impact are not included within the |
|in the Budget year |calculation of an appropriation. An example of such an event is goods or |
| |services received free of charge that are then expensed; for example, ANAO |
| |audit services. The ANAO does not charge for audit services; however, the |
| |expense must be recognised. Similarly, bad debts are recognised as an |
| |expense but are not recognised for the purpose of calculating appropriation |
| |amounts to be sought from parliament. |
|Financial Management and |The FMA Act sets out the financial management, accountability and audit |
|Accountability Act 1997 (FMA Act) |obligations of agencies (including departments) that are financially part of|
| |the Commonwealth (and form part of the General Government Sector). |
|Forward estimates |The three years following the Budget year. For example if 2013-14 is the |
|period |Budget year, 2014-15 is forward year 1, 2015-16 is forward year 2 and |
| |2016-17 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, in the Mid-Year Economic and Fiscal Outlook (MYEFO). |
|Mid-Year Economic and Fiscal Outlook |The MYEFO provides an update of the government’s budget estimates by |
|(MYEFO) |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 |
| |unexpensed administered operating appropriations. This involves portfolio |
| |Ministers submitting requests to the Finance Minister advising of timing |
| |changes to funding requirements. If agreed by the Finance Minister, there |
| |will be an increase in the amount appropriated in later year(s). |
|Net cash framework |The net cash framework, implemented from the 2010-11 Budget, replaces |
| |funding for depreciation and amortisation expenses with a departmental |
| |capital budget (DCB) and the funding of make good expenses will cease to be |
| |paid in advance. |
| |The net cash framework applies to general government sector agencies that |
| |receive funding from annual appropriations directly or via a special |
| |account, with the exception of CAC Act bodies and the Department of Defence |
| |and the Defence Materiel Organisation. |
|Non-operating |Sometimes called ‘capital’ costs. |
|Official Public Account (OPA) |The OPA is the Australian Government‘s central bank account held within the |
| |Reserve Bank of Australia. The OPA reflects the operations of the |
| |Consolidated Revenue Fund. |
|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. |
|Portfolio Budget Statements |Budget related paper detailing budget initiatives and explanations of |
| |appropriations specified by outcome and program by each agency 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 agency running costs allocated to a program. This is funded as part of |
| |the agency‘s departmental appropriations. |
|Special account |Balances existing within the Consolidated Revenue Fund (CRF) that are |
| |supported by standing appropriations (Financial Management and |
| |Accountability Act 1997, s. 20 and 21). Special accounts allow money in the |
| |CRF to be acknowledged as set-aside (hypothecated) for a particular purpose.|
| |Amounts credited to a special account may only be spent for the purposes of |
| |the special account. Special accounts can only be established by a written |
| |determination of the Finance Minister (s. 20 of the FMA Act) or through an |
| |Act of Parliament (referred to in s. 21 of the FMA Act). |
|Special appropriations (including |An amount of money appropriated by a particular Act of Parliament for a |
|standing appropriations) |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. |
Frequently Used Acronyms
|AAO |Administrative Arrangement Order |
|AAS |Australian Accounting Standards |
|ACB |Administered Capital Budget |
|AEIFRS |Australian Equivalent to International Financial Reporting Standards |
|AGE |Australian Government Employee |
|ANAO |Australian National Audit Office |
|APS |Australian Public Service |
|APSC |Australian Public Service Commission |
|CDAB |Collection Development and Acquisition Budget |
|CDB |Collection Development Budget |
|COAG |Council of Australian Governments |
|DCB |Departmental Capital Budget |
|FMA |Financial Management and Accountability |
|FOI |Freedom of Information |
|G20 |Group of 20 Meeting |
|GFS |Government Finance Statistics |
|MOU |Memorandum of Understanding |
|NMHC |National Mental Health Commission |
|OCO |Office of the Commonwealth Ombudsman |
|OIGIS |Office of the Inspector-General of Intelligence and Security |
|ONA |Office of National Assessment |
|OOSGG |Office of the Official Secretary to the Governor-General |
|OPA |Official Public Account |
|OTM |Other Trust Monies |
|PMC |Department of Prime Minister and Cabinet |
|SOETM |Services for Other Entities and Trust Monies special accounts |
|SOG |Services for Other Government and non-agency bodies accounts |
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[1] Australian Institute of Health and Welfare, 2007. The burden of disease and injury in Australia, 2003, AIHW, Canberra.
[2] Australian Bureau of Statistics, 2008. 2007 National Survey of Mental Health and Wellbeing: Summary of Results (cat. No. 4326.0), ABS, Canberra.
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