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Note 1: Budgetary Reports and Variances

The following tables provide a comparison of the budget as presented in the 2019–20 Portfolio Budget Statements (PBS) to the 2019–20 final outcome as presented in accordance with the Australian Accounting Standards for the department. The budget is not audited. Explanations of major variances are provided below.

1.1A Departmental budgetary reports

ATTORNEY-GENERAL'S DEPARTMENT STATEMENT OF COMPREHENSIVE INCOME FOR THE PERIOD ENDED 30 JUNE 2020

Original 1

Budget

Actual

Variance 2

2020

2020

2020

$'000

$'000

$'000

NET COST OF SERVICES

EXPENSES

Employee benefits

171,557

238,229

66,672

Suppliers

78,848

71,358

(7,490)

Grants

414

414

Finance costs

5,439

5,439

Write-down and impairment of assets and other expenses

11,402

11,402

Depreciation and amortisation

14,951

15,339

388

Depreciation on right-of-use assets

28,045

28,045

Total expenses

265,356

370,226

104,870

OWN SOURCE INCOME

Own-source revenue

Revenue from contracts with customers

116,405

147,644

31,239

Other revenue

495

495

Total own-source revenue

116,405

148,139

31,734

Gains

Other gains

495

1,134

639

Total gains

495

1,134

639

Total own-source income

116,900

149,273

32,373

Net cost of services

148,456

220,953

72,497

Revenue from government - departmental appropriations

138,818

213,111

74,283

Surplus/(Deficit) before income tax on continuing operations

(9,638)

(7,842)

1,793

Income tax expense/(benefit)

(230)

(230)

Surplus/(Deficit) after income tax on continuing operations

(9,638)

(7,612)

2,026

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

(9,638)

(7,612)

2,026

1 The department's original budgeted financial statements that was first presented to Parliament in respect of the reporting period (i.e. from the department's 2019–20 Portfolio Budget Statements (PBS)).

2 Between the actual and original budgeted amounts for 2020. Totals reflect amount over/(under) revised budget. Explanations of major variances are provided further below.

Attorney-General's Department Statement of Financial Position as at 30 June 2020

Original 1

Budget

Actual

Variance 2

2020

2020

2020

$'000

$'000

$'000

ASSETS

Financial assets

Cash and cash equivalents

40,775

16,271

(24,504)

Trade and other receivables

82,138

172,682

90,544

Total financial assets

122,913

188,953

66,040

Non-financial assets

Land and buildings

31,991

355,345

323,354

Heritage and cultural

3,774

3,774

Property, plant and equipment

11,677

21,781

10,104

Intangibles - computer software

15,419

18,549

3,130

Other non-financial assets

3,445

5,376

1,931

Total non-financial assets

66,306

404,825

338,519

Total assets

189,219

593,778

404,559

LIABILITIES

Payables

Suppliers

20,392

15,802

(4,590)

Other payables

28,515

21,070

(7,445)

Total payables

48,907

36,872

(12,035)

Interest bearing liabilities

Leases

329,265

329,265

Total interest bearing liabilities

329,265

329,265

Provisions

Employee provisions

48,585

92,510

43,925

Makegood provisions

722

722

Other provisions

116

116

Total provisions

48,701

93,232

44,531

Total liabilities

97,608

459,369

361,761

Net assets

91,611

134,409

42,798

1 The department's original budgeted financial statements that was first presented to Parliament in respect of the reporting period (i.e. from the department's 2019–20 Portfolio Budget Statements (PBS)).

2 Between the actual and original budgeted amounts for 2020. Totals reflect amount over/(under) revised budget. Explanations of major variances are provided further below.

Attorney-General's Department Statement of Changes in Equity for the period ended 30 June 2020

Original 1

Budget

Actual

Variance 2

2020

2020

2020

$'000

$'000

$'000

CONTRIBUTED EQUITY/CAPITAL

Opening balance

Balance carried forward from previous period

220,846

222,165

1,319

Adjusted opening balance

220,846

222,165

1,319

Transactions with owners

Distributions to owners

Distribution of equity

4,600

(4,600)

Contributions by owners

Departmental Capital Budget

6,168

10,531

4,363

Equity injection - Appropriations

20

20

Restructuring

(20,857)

6,387

27,244

Total transactions with owners

(10,069)

16,938

27,007

Closing balance as at 30 June

210,777

239,103

28,326

RETAINED EARNINGS

Opening balance

Balance carried forward from previous period

(152,646)

(148,400)

4,246

Adjustment for prior period

(181)

(181)

Adjustment on initial application of AASB 16

24,910

24,910

Adjusted opening balance

(152,646)

(123,671)

28,975

Comprehensive Income

Surplus/(Deficit) after income tax on continuing operations

(9,638)

(7,612)

2,026

Total comprehensive income

(9,638)

(7,612)

2,026

Transactions with owners

Distributions to owners

Dividends

16,529

(16,529)

Closing balance as at 30 June

(145,755)

(131,283)

14,472

ASSET REVALUATION RESERVE

Opening balance

Balance carried forward from previous period

26,589

26,589

Adjusted opening balance

26,589

26,589

Closing balance as at 30 June

26,589

26,589

TOTAL EQUITY

Opening balance

Balance carried forward from previous period

94,789

100,354

5,565

Adjustment for prior period

(181)

(181)

Adjustment on initial application of AASB 16

24,910

24,910

Adjusted opening balance

94,789

125,083

30,294

Comprehensive Income

Surplus/(Deficit) after income tax on continuing operations

(9,638)

(7,612)

2,026

Total comprehensive income

(9,638)

(7,612)

2,026

Transactions with owners

Distributions to owners

Dividends

16,529

(16,529)

Distribution of equity

4,600

(4,600)

Contributions by owners

Departmental Capital Budget

6,168

10,531

4,363

Equity injection - Appropriations

20

20

Restructuring

(20,857)

6,387

27,244

Total transactions with owners

6,460

16,938

10,478

Closing balance as at 30 June

91,611

134,409

42,798

1 The department's original budgeted financial statements that was first presented to Parliament in respect of the reporting period (i.e. from the department's 2019–20 Portfolio Budget Statements (PBS)).

2 Between the actual and original budgeted amounts for 2020. Totals reflect amount over/(under) revised budget. Explanations of major variances are provided further below.

Attorney-General's Department Cash Flow Statement for the period ended 30 June 2020

Original 1

Budget

Actual

Variance 2

2020

2020

2020

$'000

$'000

$'000

OPERATING ACTIVITIES

Cash received

Revenue from contracts with customers

145,760

158,786

13,026

Appropriations

140,595

406,422

265,827

GST received

6,840

6,840

Total cash received

286,355

572,048

285,693

Cash used

Employees

171,292

219,172

47,880

Suppliers

114,672

94,922

19,980

Grants

414

414

Interest payments on lease liabilities

5,437

5,437

Section 74 receipts transferred to Official Public Account

216,592

216,592

Total cash used

285,964

536,307

250,343

Net cash from/(used by) operating activities

391

35,741

35,350

INVESTING ACTIVITIES

Cash used

Purchase of land and buildings

2,100

3,518

1,418

Purchase of property, plant and equipment

3,981

5,727

1,746

Purchase of intangibles and internally developed intangibles

4,707

6,071

1,364

Total cash used

10,788

15,316

4,528

Net cash used by investing activities

(10,788)

(15,316)

(4,528)

FINANCING ACTIVITIES

Cash received

Contributed equity

10,788

10,551

(237)

Total cash received

10,788

10,551

(237)

Cash used

Principal payments of lease liabilities

20,643

20,643

Total cash used

20,643

20,643

Net cash from/(used by) financing activities

10,788

(10,092)

(20,880)

Net increase/(decrease) in cash held

391

10,333

9,942

Cash and cash equivalents at the beginning of the reporting period

40,384

5,938

(34,446)

Cash and cash equivalents at the end of the reporting period

40,775

16,271

(24,405)

1 The department's original budgeted financial statements that was first presented to Parliament in respect of the reporting period (i.e. from the department's 2019–20 Portfolio Budget Statements (PBS)).

2 Between the actual and original budgeted amounts for 2020. Totals reflect amount over/(under) revised budget. Explanations of major variances are provided further below.

The following tables provide a comparison of the budget as presented in the 2019–20 Portfolio Budget Statements (PBS) to the 2019–20 final outcome as presented in accordance with the Australian Accounting Standards for the department. The budget is not audited.

Under the AAO of 29 May 2019, industrial relations functions and programs were transferred to the department from the former Department of Employment, Skills, Small and Family Business with effect from 1 July 2019 (administered items) and 25 July 2019 (departmental items).
Explanations of major variances are provided below.

Affect line items

Variance

Amount

$‘000

Explanation of major variance

Statement of Comprehensive Income

Employee benefits

66,672

The variance is primarily due to the transfer of industrial relations functions following the Administrative Arrangements Order (AAO) of 29 May 2019. Employees associated with these functions and programs transferred to the department on 25 July 2019.

In addition, an increase in demand for Australian Government Solicitor (AGS) services led to higher salaries and revenue.

Suppliers

(7,490)

The variance is primarily due to the adoption of AASB 16 Leases on 1 July 2019 which had the effect of reducing the department's operating lease expenditure significantly in 2019–20. This decrease was partially offset by the transfer of industrial relations functions and programs following the AAO of 29 May 2019.

Finance costs

5,439

The variance is due to the adoption of AASB 16 Leases on 1 July 2019 and represents the interest component of leases paid in 2019–20.

Write-down and impairment of assets and other expenses

11,402

The variance is primarily due to Act of Grace payments made during 2019–20. In addition, staffing resources were provided free of charge to other agencies during the financial year as part of the Government's response to COVID-19.

Depreciation on right-of-use assets

28,045

The variance is primarily due to the adoption of AASB 16 Leases by the department on 1 July 2019.

Revenue from contracts with customers

31,239

The variance is due to an increase in demand for AGS services during the financial year.

Revenue from government – departmental appropriations

74,293

The variance is primarily due to the transfer of industrial relations functions following the AAO of 29 May 2019 and additional funding provided at Additional Estimates.

Statement of Financial Position

Cash and cash equivalents

(24,504)

The variance is primarily due to the closure of the AGS Special Account on 30 June 2019. The AGS retained $44.015m of the Special Account balance (refer Note 3.2).

Trade and other receivables

90,544

The variance is primarily due to unspent prior year appropriation associated with the transfer of industrial relations functions following the AAO of 29 May 2019 (refer Note 6.1B).

Land and buildings

323,354

The variance is primarily due to the adoption of AASB 16 Leases on 1 July 2019 (refer Note 6.2A).

Property, plant and equipment

10,104

The variance is primarily due to the adoption of AASB 16 Leases on 1 July 2019 (refer Note 6.2A).

Other payables

(7,445)

The variance is primarily due to the adoption of AASB 16 Leases on 1 July 2019 (refer Note 6.3B).

Leases

329,265

The variance is primarily due to the adoption of AASB 16 Leases on1 July 2019 (refer Note 6.4A).

Employee provisions

43,925

The variance is primarily due to the transfer of industrial relations functions following the AAO of 29 May 2019 (refer Note 2.2A).

Cash Flow Statement

Revenue from contracts with customers

13,026

The variance is due to an increase in demand for AGS services during the financial year.

Appropriations

265,827

The variance primarily reflects AGS s74 receipts returned to the Official Public Account (OPA) during the financial year following the closure of the AGS Special Account on 30 June 2019. In addition, the variance also reflects appropriation drawdowns from the OPA associated with industrial relations functions following the Administrative Arrangements Order (AAO) of 29 May 2019.

Employees

47,880

The variance is primarily due to the transfer of industrial relations functions following the Administrative Arrangements Order (AAO) of 29 May 2019. Employees associated with these functions and programs transferred to the department on 25 July 2019.

Additionally, there was increase in AGS staffing costs which is consistent with an increase in AGS revenue.

Suppliers

(19,980)

The variance is primarily due to the introduction of AASB 16 Leases on 1 July 2019 which reclassified lease payments from operating activities to financing activities.

Interest payments on lease liabilities

5,437

The variance is primarily due to the transition to AASB 16 Leases on 1 July 2019.

Section 74 receipts transferred to the Official Public Account

216,592

The variance is primarily reflects AGS s74 receipts returned to the Official Public Account (OPA) during the financial year following the closure of the AGS Special Account on 30 June 2019.

Principal payments of lease liabilities

20,643

The variance is primarily due to the adoption of AASB 16 Leases on 1 July 2019 which reclassified lease payments from operating activities to financing activities.

1.1B Administered budgetary reports

Attorney-General's Department Administered Schedule of Comprehensive Income for the period ended 30 June 2020

Original 1

Budget

Actual

Variance 2

2020

2020

2020

$'000

$'000

$'000

NET COST OF SERVICES

EXPENSES

Employee benefits

21,251

23,146

1,895

Suppliers

130,889

133,194

2,305

Subsidies

3,497

150,843

147,346

Personal benefits

808

176,536

175,728

Grants

324,481

385,543

61,602

Finance costs

206

206

Write-down and impairment of assets and other expenses

20

6

(14)

Payments to corporate Commonwealth entities

16,538

22,497

5,959

Depreciation and amortisation

8,133

2,548

(5,585)

Depreciation on right-of-use assets

3,433

3,433

Total expenses

505,617

897,952

392,335

INCOME

Revenue

Taxation revenue

Levies

147,349

147,349

Total taxation revenue

147,349

147,349

Non-taxation revenue

Revenue from contracts with customers

2,768

2,676

(92)

Recoveries - personal benefit recoveries

137,625

137,625

Other non-taxation revenue

1,039

5,458

4,419

Total non-taxation revenue

3,807

145,759

141,952

Total own-source revenue administered on behalf of Government

3,807

293,108

289,301

Net cost of services

501,810

604,844

100,034

Deficit on continuing operations

(501,810)

(604,844)

103,034

OTHER COMPREHENSIVE INCOME

Items not subject to subsequent reclassification to net cost of services

Actuarial gains/losses on defined benefit plans - former Solicitor-Generals' pensions

1,137

1,137

Items subject to subsequent reclassification to net cost of services

Gains/(losses) on financial assets through other comprehensive income

(178,579)

(178,579)

Gains/(losses) on financial liabilities through other comprehensive income

98,015

98,015

Total other comprehensive income

(79,427)

(79,427)

Total comprehensive loss attributable to the Australian Government

(501,810)

(684,271)

(182,461)

1 The department's original budgeted financial statements that were first presented to Parliament in respect of the reporting period (i.e. the department's 2019–20 Portfolio Budget Statements (PBS)).

2 Between the actual and original budgeted amounts for 2020. Totals reflect amount over/(under) revised budget. Explanations of major variances are provided further below.

Attorney-General's Department Administered Schedule of Assets and Liabilities as at 30 June 2019

Original 1

Budget

Actual

Variance 2

2020

2020

2020

$'000

$'000

$'000

ASSETS

Financial assets

Cash and cash equivalents

1,638

1,633

(5)

Trade and other receivables

1,375

20,879

19,504

Equity accounted investments

401,216

569,641

168,425

Total financial assets

404,229

592,153

187,924

Non-financial assets

Land and buildings

6,433

22,553

16,120

Property, plant and equipment

3,517

947

(2,570)

Intangibles

882

131

(751)

Other non-financial assets

425

10,220

9,795

Total non-financial assets

11,257

33,851

22,594

Total assets administered on behalf of Government

415,486

626,004

210,518

LIABILITIES

Payables

Suppliers

3,093

10,839

7,746

Personal benefits

157

157

Grants

4,132

(4,132)

Subsidies

13,086

(13,086)

Other payables

26

2,094,027

2,094,001

Total payables

7,251

2,118,109

2,110,858

Interest bearing liabilities

Leases

12,996

12,996

Total interest bearing liabilities

12,996

12,996

Provisions

Superannuation provision - former Solicitor-Generals' pensions

5,912

4,802

(1,110)

Makegood provisions

363

363

-

Total provisions

6,275

5,165

(1,110)

Total liabilities administered on behalf of Government

13,526

2,136,270

2,122,744

Net assets/(liabilities)

401,960

(1,510,266)

(1,912,226)

1 The department's original budgeted financial statements that were first presented to Parliament in respect of the reporting period (i.e. the department's 2019–20 Portfolio Budget Statements (PBS)).

2 Between the actual and original budgeted amounts for 2020. Totals reflect amount over/(under) revised budget. Explanations of major variances are provided further below.

The following tables provide a comparison of the budget as presented in the 2019–20 Portfolio Budget Statements (PBS) to the 2019–20 final outcome as presented in accordance with the Australian Accounting Standards for the department. The budget is not audited.

Under the AAO of 29 May 2019, industrial relations functions and programs were transferred to the department from the former Department of Employment, Skills, Small and Family Business with effect from 1 July 2019 (administered items) and 25 July 2019 (departmental items).

Explanations of major variances are provided below.

Affected line items

Variance

Amount

$‘000

Explanation of major variance

Administered Schedule of Comprehensive Income

Subsidies

147,346

The variance is primarily due to the payment of levies to the Coal Mining Industry (Long Service Leave Funding) Corporation (CMIC) during 2019-20 as a result of the transfer of industrial relations functions following the Administrative Arrangements Order (AAO) of 29 May 2019 (refer Note 5.1B).

Personal benefits

175,728

The variance is primarily due to the payment of financial assistance for certain unpaid employment entitlements under the Fair Entitlements Guarantee Act 2012 as a result of the transfer of industrial relations functions following the AAO of 29 May 2019 (refer Note 5.1C).

Grants

61,062

The variance is primarily due to the payment of grants to Comcare during the financial year as a result of the transfer of the industrial relations functions following the AAO of 29 May 2019 (refer Note 5.1D). The grant payments are made in relation to the Asbestos-related Claims (Management of Commonwealth Liabilities) Act 2005 and the Safety, Rehabilitation and Compensation Act 1988 (refer Note 5.1D).

Payments to corporate Commonwealth entities

5,959

The variance is primarily due to the payments to Comcare during 2019–20 as a result of the transfer of industrial relations functions following the AAO of 29 May 2019 (refer Note 5.1G).

Depreciation and amortisation

(5,585)

The variance is primarily due to the actual asset acquisitions associated with the Royal Commissions being less than budgeted resulting in a lower actual depreciation expense.

Depreciation on right-of-use assets

3,433

The variance is due to the adoption of AASB 16 Leases on 1 July 2019.

Levies

147,349

The variance is primarily due to the collection of levies under the Coal Mining Industry (Long Service Leave) Administration Act 1992 as a result of the transfer of the industrial relations functions following the AAO of 29 May 2019 (refer Note 5.2A).

Recoveries – personal benefit recoveries

137,625

The variance is primarily due to the recovery of monies under the Fair Entitlement Guarantee Act 2012 as a result of the transfer of industrial relations functions following the AAO of 29 May 2019 (refer Note 5.2C).

Gains/(losses) on financial assets through other comprehensive income

(178,579)

The variance is primarily due to the decrease in the value of the department's administered investment in CMIC as at 30 June 2020.

Gains/(losses) on financial liabilities through other comprehensive income

98,015

The variance is due to the transfer of the industrial relations functions following the AAO of 29 May 2019 and relates to the movement in the Comcare payable as at 30 June 2020 (refer Note 7.3E).

Administered Schedule of Assets and Liabilities

Trade and other receivables

19,504

The variance is primarily due to the recovery of monies under the Coal Mining Industry (Long Service Leave) Administration Act 1992 and the Fair Entitlement Guarantee Act 2012 as a result of the transfer of industrial relations functions following the AAO of 29 May 2019 (refer Note 7.1B).

Equity accounted investments

168,425

The variance is primarily due to a reduction in the value of the Commonwealth's investment in the CMIC and Comcare as a result of the transfer of industrial relations functions following the AAO of 29 May 2019 (refer Note 7.1C).

Land and buildings

16,120

The variance is due to the adoption of AASB 16 Leases for leases entered into during 2019–20 held by the Royal Commission into Violence, Abuse, Neglect and Exploitation of People with Disability (refer Note 7.2A).

Other non-financial assets

9,795

The variance is primarily due to the Commonwealth's annual contribution to an international organisation. This is a result of the transfer of industrial relations functions following the AAO of 29 May 2019 (refer Note 7.2C).

Suppliers

7,746

The variance is primarily due to the transfer of industrial relations functions following the AAO of 29 May 2019 and the establishment of the Royal Commission into National Natural Disaster Arrangements in February 2020 (refer Note 7.3A).

Grants

(4,132)

The variance is due to all 2019–20 grant payments being paid at 30 June 2020 (refer Note 7.3C).

Subsidies

13,086

The variance is due to the payment of the subsidy to the CMIC as a result of the transfer of industrial relations functions following the AAO of 29 May 2019 (refer Note 7.3D).

Other payables

2,094,001

The variance is primarily due to the amount payable to Comcare by the Commonwealth for workers compensation claims and management of asbestos related personal injury common law claims against the Commonwealth as a result of the transfer of industrial relations functions following the AAO of 29 May 2019 (refer Note 7.3E).

Leases

12,996

The variance is primarily due to the transition to AASB 16 Leases on 1 July 2019 (refer Note 7.4A).