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6.2: Budget Variances

The comparison of the unaudited original budget as presented in the 2019-20 Portfolio Budget Statements (PBS) to the 2019-20 final outcome as presented in accordance with Australian Accounting Standards is included in the Statement of comprehensive income, the Statement of financial position, Statement of changes in equity and Cash flow statement.

Major Variances

Line items impacted

Major variance explanations

Statement of comprehensive income

Suppliers, Rendering of services, Interest.

Statement of financial position

Cash, Unearned income.

Cash flow statement

Rendering of services, Interest and Suppliers.

The budget is prepared based on executed contracts for projects in April 2019.

During the 2019-20 financial year additional projects were contracted. This resulted in higher payments received in advance of services being delivered and increased expenditure related to these projects. The balance of unearned income relates to payments received that are carried forward into future years for these projects.

Statement of comprehensive income

Employee benefits.

Cash flow statement

Employees.

The budget forecast a gradual increase in employees up to the Average Staffing Level (ASL) cap. The increase was achieved faster than anticipated.

Statement of comprehensive income

Surplus, Total comprehensive income.

Statement of financial position

Retained earnings.

Statement of changes in equity

Surplus for the year.

Budgets are prepared on a break even assumption for all projects. The timing of expenditure and delivery of workplan projects has resulted in a minor surplus.

Statement of comprehensive income

Depreciation and amortisation, Finance costs.

Statement of financial position

Property, plant and equipment, Lease liability.

Statement of changes in equity Adjustment on initial application of AASB 16.

Cash flow statement

Interest payments on lease liabilities, Principal repayments of lease liabilities.

The impact of the implementation of AASB 16 – Leases was not included when the budget was prepared as advised by the Department of Finance.

Statement of financial position

Reserves.

Statement of changes in equity

Asset revaluation reserve.

The impact of the revaluation of leasehold improvements was not known at the time the budget was prepared as the valuation had not yet been performed.