Go to top of page

Financial resource management

Financial performance

The Bureau reported an operating surplus of $12.3 million, excluding depreciation for 2020–21, against a budgeted operating surplus of $4.2 million. This surplus is largely due to external revenue used for capital assets and externally generated project activity. After including depreciation, the operating result was a deficit of $152.6 million in 2020–21, compared to a deficit of $84.9 million in 2019–20. 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.

Revenue
Total revenue for the Bureau for 2020–21 was $344.3 million. This is an increase of $6.1 million compared to the 2019–20 year.

The Bureau’s Australian Government appropriation was $269.9 million in 2020–21, which was $6.7 million higher than the 2019–20 year.

Changes in appropriation funding are largely associated with:

  • funding associated with the Budget measures – Improved Security and Resilience – Tranche 1, Tranche 2 and Tranche 3
  • funding associated with the 2020–21 budget measure – Aviation Meteorology Services Program
  • funding associated with the 2020–21 Portfolio Additional Estimates Statements measure Climate and Resilience Services Australia – establishment
  • reduced funding associated with the 2020–21 Budget measure savings through additional revenue
  • 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 $74.4 million – a decrease of $0.5 million compared to 2019–20.

Infographic showing the amount of revenue derived by the Bureau each year. In 2020-21, the Bureau derived more than $74 million from own-source income.

Expenditure
The Bureau’s operating expenditure for 2020–21 was $496.9 million – an increase of $73.7 million (17 per cent) compared with the 2019–20 year. This increase was due to higher depreciation and amortisation expenditure, employee and supplier expenses compared to 2019–20. Employee costs represented 39 per cent of the Bureau’s total costs.

Supplier costs were $131.2 million (26 per cent of total expenses), and included:

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

Depreciation and amortisation was $164.9 million (33 per cent of total expenses).

Infographic showing the Bureau's expenditure each year. In 2020-21, the Bureau's expenditure increased by 17% compared with last year.

Significant non-compliance
During 2020–21 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).

Resource Statement Summary – current report period (2020–21)

Actual Available appropriation - current year (a)

Payments made (b)

Balance remaining (a)-(b)

$'000

$'000

$'000

Departmental

Annual appropriations - ordinary annual services

479 410

479 410

479 410

Annual appropriations - other services - non-operating

196 627

136 714

59 913

Total departmental annual appropriations

676 037

525 730

150 307

Departmental special appropriations

0

0

0

Total special appropriations

0

0

0

Special accounts

0

0

0

Total special accounts

0

0

0

less departmental appropriations drawn from annual/special appropriations and credited to special accounts

0

0

0

Total departmental resourcing (A)

676 037

525 730

150 307

Administered

Annual appropriations - ordinary annual services

0

0

0

Annual appropriations - other services - non-operating

0

0

0

Annual appropriations - other services - specific payments to States, ACT, NT and local government

0

0

0

Annual appropriations - other services – new administered expenses,

0

0

0

Total administered annual appropriations

0

0

0

Administered special appropriations

0

0

0

Total administered special appropriations

0

0

0

Special accounts

0

0

0

Total special accounts receipts

0

0

0

less administered appropriations drawn from annual/special appropriations and credited to special accounts

0

0

0

less payments to corporate entities from annual/special appropriations

0

0

0

Total administered resourcing (B)

0

0

0

Total resourcing and payments for entity X (A + B)

676 037

525 730

150 307

.

Asset management

The Bureau managed an asset base valued at $1031.441 million. Of this, $855.611 million related to fixed and intangible assets.

Asset

Amount ($m)

Land and buildings

83.922

Land and buildings ROU (right-of-use) – AASB 16

96.158

Plant and equipment

435.128

Plant and equipment ROU (right-of-use) – AASB 16

0.943

Intangible assets

239.460

Total

855.611

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.

Infographic showing the value of Bureau assets each year. In 2020-21, the Bureau operated and maintained more than $1 billion in assets to deliver services to the Australian community.

During 2020–21, the Bureau invested $178.095 million in asset acquisition and construction (excluding ROU assets) to support its service delivery to Australia, including:

  • implementing the Murray–Darling Basin Water Information Portal, Category 1 Applications Asset Life Extension, Aviation Operating Infrastructure, National Grid, Australian Parallel Suite upgrade, Australian Hydrological Geospatial Fabric (Geofabric) Suite v3 and Enterprise Asset Management System
  • building five new radars, 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 physical security
  • facility construction, refurbishment and consolidation of the Perth and Hobart hubs, electrical upgrades at the Giles Station.

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 2020–21 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 with access to contractors’ information, refer to: 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 2021–22 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: 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 $1000 000.

The Bureau supports the goals of the Australian Government’s Indigenous Procurement Policy and achieved its Indigenous procurement target for 2020–21. More information is available on the Department of the Prime Minister and Cabinet website (www.pmc.gov.au).

Consultancies and reportable non-consultancies
The selection and engagement of consultants was conducted in accordance with the PGPA Act, Commonwealth Procurement Rules and internal policy and procedures. Of the 21 consultancy contracts reported, 14 used a limited tender procurement method and seven used an open tender, of which five used a panel arrangement.

During 2020–21, 13 new consultancy contracts were entered into involving total actual expenditure of $974 760. In addition, eight ongoing consultancy contracts were active during the period, involving total actual expenditure of $338 189.

Expenditure on Reportable Consultancy Contracts – current report period (2020–21)

Number

Expenditure $ (GST inc.)

New contracts entered into during the reporting period

13

$974 760

Ongoing contracts entered into during a previous reporting period

8

$338 189

Total

21

$1312 949

The main categories of purpose for which consultants were engaged were 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).

Organisations receiving a share of Reportable Consultancy Contract Expenditure – current report period (2020–21)

Name of Organisation

Expenditure $ (GST inc.)

Deloitte Touche Tohmatsu (ABN 74490121060)

$534 820

Hydrology and Risk Consulting Pty Ltd (ABN 87553755959)

$158 348

Price Waterhouse Consulting Pty Ltd (ABN 20607773295)

$95 390

Solution 300 Consulting (ABN 86167856911)

$81 675

Elm Communications Canberra Pty Ltd (ABN 64646493987)

$937 095

Expenditure on Reportable Non-consultancy Contracts – current report period (2020–21)

Number

Expenditure $ (GST inc.)

New contracts entered into during the reporting period

714

$115 363 687

Ongoing contracts entered into during a previous reporting period

401

$122 145 860

Total

1115

$237 509 547

During 2020–21, 714 new non-consultancy contracts were entered into involving total actual expenditure of $115 363 687. In addition, 401 ongoing non-consultancy contracts were active during the period, involving total actual expenditure of $122 145 860.

Annual reports contain information about actual expenditure on reportable non-consultancy contracts. Information on the reportable non-consultancy contracts’ value is available on the AusTender website (www.tenders.gov.au).

Organisations receiving a share of Reportable Non-consultancy Contract Expenditure – current report period (2020–21)

Name of Organisation

Expenditure $ (GST inc.)

Broadspectrum Property Pty Ltd (ABN 16618028676)

$32,206,024

Rubik3 Pty Ltd (ABN 59606714085)

$25,573,207

Vaisala Pty Ltd (ABN 58006500616)

$13,673,530

Hays Specialist Recruitment (ABN 47001407281)

$11,268,612

Dell Australia Pty Ltd (ABN 46003855561)

$10,286,873

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.

In 2020–21, advertising and market research over the reporting threshold of $13 800 (GST inclusive) were undertaken to the value of $63 753 and $108 613 respectively. Details are provided below. The Bureau did not undertake any polling, direct mail or advertising campaigns during 2020–21.

Organisation

Purpose

Expenditure

($, GST inclusive)

Media advertising organisations

Universal McCann Pty Ltd

Recruitment advertising

$63 753

Market research organisations

Ernst & Young t/as EY Sweeney

Performance framework market research

$108 613

Total

$172 366