Financial performance
CGC remains in a sound financial position and budgets to remain financially sustainable over the forward estimates. A number of funded initiatives were delayed during the year as the CGC sought to minimise risks associated with major organisational change during an adverse operating environment, particularly the bush fires, COVID-19 and finalisation of the 2020 Review Report (see Performance Statements). These delays resulted in a significant underspend in 2019–20.
Figure 2 CGC's operating results, 2015–16 to 2019–20
In 2019–20, the Department of Finance adjusted the net cash operating loss rule in response to AASB 16. Accordingly, for financial years 2019–20 onwards, CGC monitors financial performance by excluding the impact of depreciation and principal lease payments. For financial years 2018–19 and earlier, CGC continues to measure financial performance by excluding the impact of depreciation only. In 2019–20, after adjusting for depreciation and principal lease payments, the CGC had an operating surplus of $2.59 million (Figure 2).
Table 1 Summary of financial performance, 2019–20
2019–20 | 2018–19 | Movement | |
($’000) | ($’000) | ($’000) | |
Total own-source revenue | 75 | 98 | (23) |
Total revenue from government | 8,227 | 6,067 | 2,160 |
Total expenses | 5,902 | 6,147 | (245) |
Net surplus/(deficit) | 2,400 | 18 | 2,382 |
Total assets | 9,431 | 5,831 | 3,600 |
Total liabilities | 2,444 | 2,110 | 334 |
Equity | 6,987 | 3,721 | 3,266 |
Including depreciation and principal lease payments, the CGC’s operating surplus was $2.40 million.
The CGC’s assets and liabilities are primarily of a financial nature, with the largest balance being appropriation receivable ($8.29 million). Employee provisions ($1.41 million) comprise the majority of CGC’s liabilities.
Resourcing statement
Table 2 summarises the CGC’s total resources and total payments in 2019–20, and Table 3 shows total expenses for Outcome 1 in 2019–20.
Table 2 CGC resource statement, 2019–20
Actual available | Payments made | Balance | |
($'000) | ($'000) | ($'000) | |
Ordinary annual services(a) | |||
Departmental appropriation(b) | 14,523 | 6,136 | 8,387 |
Total ordinary annual services | 14,523 | 6,136 | 8,387 |
Total resourcing and payments | 14,523 | 6,136 | 8,387 |
(a) Appropriation Act (No. 1) 2019–2020. This also includes prior-year departmental appropriation and retained revenue receipts under section 74 of the Public Governance, Performance and Accountability Act 2013.
(b) Includes an amount of $825,000 in 2019–20 for the departmental capital budget. For accounting purposes, this amount has been designated as ’contributions by owners’.
Table 3 Total expenses for Outcome 1, 2019–20
Budget(a) | Actual | Variation | |
($’000) | ($’000) | ($’000) | |
Outcome 1: Informed government decisions on fiscal equalisation between the states and territories through advice and recommendations on the distribution of GST revenue | |||
Program 1.1: The commission makes recommendations on the distribution of the GST pool, which are considered by government | |||
Departmental expenses | |||
Ordinary annual services (Appropriation Act No. 1) | 8,227 | 5,857 | 2,370 |
Expenses not requiring appropriation in the budget year | 45 | 45 | – |
Total for Program 1.1 | 8,272 | 5,902 | 2,370 |
Total expenses for Outcome 1 | 8,272 | 5,902 | 2,370 |
Average staffing level (number) | 34.0 | 23.8 | 10.2 |
(a) Full-year budget, including any subsequent adjustment made to the 2019–20 Budget at Additional Estimates.
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