Financial performance

The Bureau reported an operating surplus of $32.1 million, excluding depreciation for 2019–20, against a budgeted operating surplus of $6.6 million. This surplus is largely due to external revenue used for capital assets and additional funding received from Government. After including depreciation, the operating result was a deficit of $84.9 million in 2019–20, compared to a deficit of $82.1 million in 2018–19. The Bureau’s operating results show deficits as its depreciation and amortisation expenditure is shown in its operating statements, while its departmental capital budget for asset replacement is treated as an equity contribution and is shown in its balance sheet.

After the impact of the asset revaluation, the Bureau recorded a total comprehensive loss of $26.0 million.

Revenue

Total revenue for the Bureau for 2019–20 was $338.2 million. This is an increase of $13.3 million compared to the 2018–19 year.

The Bureau’s Australian Government appropriation was $263.3 million in 2019–20, which was $31.6 million higher than the 2018–19 year.

Changes in appropriation funding are largely associated with:

• funding associated with the 2017–18 Budget measure—Improved Security and Resilience;
• funding associated with the 2018–19 Budget measure—Improved Security and Resilience— Tranche 2;
• funding associated with the 2019–20 Coronavirus Economic Response Package and;
• increased funding for economic parameter adjustments offset by efficiency dividends.

The Australian Government appropriation contributed 78 per cent of the Bureau’s total operating revenue. The remaining funds were derived from ‘own-source income’ and ‘other income’ totalling $74.9 million—a decrease of $18.3 million compared to the 2018–19 year.

Expenditure

The Bureau’s operating expenditure for 2019–20 was $423.1 million—an increase of $16.2 million (4 per cent) compared with the 2018–19 year. This increase was due to higher depreciation and amortisation expenditure offset by lower employee and supplier expenses compared to the 2018–19 year.

Employee costs represented 42 per cent of the Bureau’s total costs.

Supplier costs were $122.8 million (29 per cent of total expenses), and included:

• observations consumables;
• lease costs associated with premises and other goods and services;
• costs associated with service delivery; and
• communication, software and other information technology (IT) costs.

Depreciation and amortisation was $117.0 million (28 per cent of total expenses).

Significant non-compliance

During 2019–20 there were no significant non-compliant breaches of the finance law under section 19(1)(e) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act).

Total resources

Asset management

The Bureau managed an asset base valued at $1033.636 million. Of this, $848.556 million related to fixed and intangible assets.

The new leases standard AASB 16 requires the companies to bring the majority of operating leases on-balance sheet. Property and equipment leases previously recognised off-balance sheet were accounted for as a right-of-use (ROU) assets and has resulted in increase of fixed assets.

The Bureau’s asset investment and replacement program was monitored throughout the year at the Program level, and via monthly Executive meetings, to ensure optimal delivery and use of available resources.

A revaluation of Bureau assets undertaken by an external provider was completed and applied to the Asset register in June 2020, resulting in an asset uplift of $58.905 million.

During 2019–20, the Bureau invested $203.690 million in asset acquisition and construction to support its service delivery to Australia, including:

• implementing the Australian Integrated Forecast System (AIFS) upgrade, the new weather app, the Optimised Forecast Process (OFP), a national situational awareness tool, user experience design and platform implementation;
• upgrading observing systems such as automatic weather stations, balloon sites across multiple locations, wind profiler upgrades, radar upgrades, uplifting infrastructure at data centres and the Australis II supercomputer mid-life upgrade; and
• facility construction, refurbishment and consolidation of the Sydney and Hobart Offices, and refurbishment of levels 5, 6 and 11 at the Melbourne Office.

Procurement

Value for money is the core principle underpinning all procurement. The Bureau’s Accountable Authority Instructions provide internal control of procurement within the agency, and are aligned with the PGPA Act, the Commonwealth Procurement Rules and broader Australian Government policy.

No contracts of $100 000 or more (inclusive of GST) were let during 2019–20 that did not provide for the Auditor-General to have access to the contractor’s premises.

For details of standard clauses that provide the Australian National Audit Office (ANAO) with access to contractors’ information, refer to: https://www.finance.gov.au/procurement/clausebank

No contracts in excess of $10 000 (inclusive of GST) or standing offers were exempted by the accountable authority from being published on AusTender on the basis that they would disclose exempt matters under the Freedom of Information Act 1982.

Information on procurements expected to be undertaken in 2020–21 is in Bureau’s annual procurement plan, available from the AusTender website (www.tenders.gov.au).

Procurement initiatives to support small business and Indigenous-owned businesses

The Bureau supports small business participation in the Australian Government procurement market. Small-to-medium enterprises and small enterprise participation statistics are available on the Department of Finance website at:

https://www.finance.gov.au/government/procurement/statistics-australian-government-procurement-contracts-

The Bureau recognises the importance of ensuring that small businesses are paid on time. The results of the Survey of Australian Government Payments to Small Business are available on the Treasury’s website (www.treasury.gov.au).

Bureau support for small business includes using the Commonwealth Contracting Suite for low-risk procurements valued under $1 000 000.

The Bureau supports the goals of the Australian Government’s Indigenous Procurement Policy and achieved its Indigenous procurement target for 2019–20. More information is available on the Department of the Prime Minister and Cabinet’s website (www.pmc.gov.au).

Consultants

The selection and engagement of consultants was conducted in accordance with the PGPA Act, Commonwealth Procurement Rules and internal policy and procedures.

During 2019–20, 24 new consultancy contracts were entered into involving total actual expenditure of $2 569 332. In addition, five ongoing consultancy contracts were active during the period, involving total actual expenditure of $762 507.

Number and expenditure on consultants—current report period (2019–20)

The main categories of purpose for which consultants were engaged were legal services, audit services, management advisory services and management support services.

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 (www.tenders.gov.au).

Advertising and market research

Under section 311A of the Commonwealth Electoral Act 1918, the Bureau is required to disclose payments of advertising and market research.

Advertising and market research over the reporting threshold of $14 000 (GST inclusive) were undertaken to the value of $30 256 and $61 684 respectively, in 2019–20. Details are provided below.

The Bureau did not undertake any polling, direct mail or advertising campaigns during 2019–20.

Advertising and market research expenditure—current report period (2019–20)​