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Budget Variances commentary

For the period ended 30 June 2020

The following table provides an explanation of major variances between the 2019-20 Portfolio Budget Statements and the 2019-20 final outcome as presented in accordance with Australian Accounting Standards for the Memorial. The budget is not audited.

Ref

Variance

Affected line items (and statement)

Explanation of major variances

i

(7.7)%
(37.4)%
21.8%

Expenses - Suppliers (Statement of Comprehensive Income)
Liabilities - Payables - Suppliers (Statement of Financial Position)
Operating Activities - Cash Used - Suppliers (Cash Flow Statement)

Savings in cleaning, security, travel and training costs due to the impact of the COVID-19 shutdown of the Memorial, offset by an increase in spend due to digitisation of Anzac Day 2020 (sponsored) ceremony.

ii

21.5%

Expenses - Depreciation and Amortisation (Statement of Comprehensive Income)

Increased depreciation charges for exhibition assets following the revaluation in 2019, plus a re-estimation of the useful life of some gallery assets.

iii

(31.8)%
(24.7)%

Own-Source Revenue - Revenue from Contracts with Customers (Statement of Comprehensive Income)
Operating Activities - Cash Received - Sale of Goods and Rendering of Services (Cash Flow Statement)

Decline in commercial revenue (e.g. shop) due to COVID-19 shut down of the Memorial.

iv

329.4%
52.6%

Own-Source Revenue - Donations and Sponsorships (Statement of Comprehensive Income)
Operating Activities - Cash Received - Donations and Sponsorships (Cash Flow Statement)

Donations of collection items from the Department of Defence, being the Orion and Fairey Firefly aircrafts, and donations towards the Development information centre.

v

16.1%
(1.4)%
(3.3)%

Liabilities - Employee Provisions (Statement of Financial Position)
Expenses - Employee Benefits (Statement of Comprehensive Income)
Operating Activities - Cash Used - Employees (Cash Flow Statement)

Increase in capitalisation of salaries to internal asset projects reducing operational salaries offset by an increase in employee provisions due to the significant reduction in the 10-year Government bond rate in 2019-20.

vi

(14.5)%

Investing Activities - Cash Used - Purchase of Property, Plant and Equipment (Cash Flow Statement)

Final actual capital costs are less than budget due to the impact of timing of the AWM Development, ICT modernisation and deferred gallery exhibition costs. Collection capital less than budget with conservation resources moved over to gallery development.

vii

(22.3)%
23.9%
57.4%

68.7%

Own-Source Revenue - Interest (Statement of Comprehensive Income)
Assets - Financial Assets - Investments (Statement of Financial Position)

Investing Activities - Cash Received - Investments (Cash Flow Statement)
Investing Activities - Cash Used - Investments (Cash Flow Statement)

Reduction in interest rates on offer across financial institutions due to the lowering of the cash rate.
Current investment portfolio of $85.5m spread across three financial institutions.


The Memorial determines major variances to exhibit the following attributes:

* more than 10% of the line item budget (provided the amount is material);

* more than 2% of the relevant sub-total (expenses, income, assets and liabilities); and

* qualitative factors such as disclosure in the public interest and for completeness in analysing performance