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Summary of financial performance

Tables APVMA income, 2018–19 to Purchasing: number of quotes required give an overview of APVMA financial performance for 2018–19. Full details are in the audited financial statements on the following pages.

Income

The APVMA’s total income for 2018–19 was $57.368 million (APVMA income, 2018–19) and incorporates Armidale Relocation appropriation funding and Enabling Technologies reform.

APVMA income, 2018–19

Income source

Income ($'000)

Percentage

Receipts from industry

Levies

18,453

32.17%

Application fees

5,911

10.30%

Annual fees (renewal fees)

5,222

9.10%

Other receipts from industry

2,506

4.37%

Parliamentary appropriation

24,902

43.41%

Other revenue

374

0.65%

Total income

57,368

100%

Agency Resourcing Statement, 2018–19

Resourcing description

Actual available appropriation for 2018–19

($million)

Payments made in 2018–19

($million)

Balance remaining in 2018–19

($million)

Ordinary annual service

Department expenses

Previous year departmental appropriation

2.769

2.769

0

Departmental appropriations

24.902

15.984

8.918

Revenue from independent sources

0.374

0.374

0

Total

28.045

19.127

8.918

Special appropriation

38.952

27.824

11.128

Total resourcing and payments

66.997

46.951

20.046

Expenditure

Total operating expenses for 2018–19 were $47.337 million (APVMA expenditure, 2018–19 (including comparison with PBS) and Expenses for Outcome 1).

APVMA expenditure, 2018–19 (including comparison with PBS)

Individual lines of expenditure

2018–19 actual expenditure

($million)

Percentage of expenditure

2017–18 budget (per PBS)

($million)

Employee benefits

30.816

65.10%

20.082

Supplier expenses

14.412

30.45%

31.563

Depreciation

2.066

4.36%

1.680

Other

43

0.09%

0

Total expenditure

47.337

100%

53.325

PBS = Portfolio Budget Statement

Expenses for Outcome 1

Outcome 1:

Protection of the health and safety of people, animals, the environment, and agricultural and livestock industries through regulation of pesticides and veterinary medicines

2018–19 budget

($million)

2018–19 actual

($million)

2018–19 variance

($million)

2017–18 actual

($million)

Program 1.1 (APVMA)

Department expenses

Ordinary annual service (Appropriation Bill 1)

24.902

24.902

0

6.056

Revenue from independent sources

60

374

(314)

215

Special appropriation

28.363

22.061

6.302

33.637

Total expenses for outcome 1

53.325

47.337

5.988

39.908

Equity

The APVMA recorded a net operating surplus of $10.031 million for 2018–19, resulting in an equity balance at 30 June 2019 of $16.401 million.

Audit results

The APVMA achieved an unqualified audit result, and there were no adverse findings.

Financial reserve

The APVMA’s revenue is primarily received as levy payments in December and June, and registration payments in May and June. Subsequently, the APVMA receives the majority of its revenue at three times during the year. Cash holding can exceed $7 million at various stages during the financial year.

To manage this, the APVMA monitors daily cash balances to ensure that cash is available to pay creditor expenses, particularly during times when the cash balances are reducing in the months when income is not anticipated.

The APVMA operates to keep the cash level above $7 million as an operating reserve (an equity position of $7 million is equivalent to three months operating expenses).

Consultancies

In 2018–19, the APVMA entered into two new consultancy contracts totalling $0.084 million (incl GST), which was fully expensed during the year. Both consultancies related to white paper reform and Armidale relocation projects.

In addition, three ongoing consultancy contracts from previous years were active, involving expenditure of $0.082 million (incl GST).

Selection processes are described in terms drawn from the Commonwealth procurement guidelines. ‘Direct sourcing’ refers to a selection process in which neither a tender nor a panel was used. In these situations, the APVMA obtained multiple quotes, the number of which was determined by the value of the procurement.

APVMA Finance Procedure 4, ‘Purchasing’, outlines the number of quotes required (Purchasing: number of quotes required). Exemptions to these requirements may be approved in some circumstances.

APVMA annual reports contain information about actual expenditure on contracts for consultancies. Information on the value of contracts and consultancies is available on the AusTender website.

Purchasing: number of quotes required

Purchase limit for goods/services

Quotes required

to $2000

1 quote

$2001 to $10 000

2 written quotes

$10 001 to $100 000

3 written quotes

$100 001 to $400 000

High-value procurement procedures

$400 000 and over

Tender