In 2019–20 we implemented initiatives to improve financial management across the Department of Agriculture, Water and the Environment. These included integrating financial reporting and a review and consolidation of financial policies and procedures. The initiatives supported the integration of financial capability and resource allocation to meet the needs of the new department.
Revenue from the provision of cost-recovered services funds a significant portion of departmental expenditure. In 2019–20 the impact of the COVID-19 pandemic had a negative effect on the amount of revenue collected. We continued our focus in this area to ensure services are efficient and appropriately funded.
Our 2019–20 internal budget aligned to the Department of Agriculture, Water and the Environment Portfolio Additional Estimates Statements 2019–20 (PAES), with an approved deficit position. The 2019–20 full-year result was a deficit of $50.2 million after allowable losses.
Annual appropriations – Other services – Non‑operating
Total departmental annual appropriations
Departmental special appropriations
Total special appropriations
Total special accounts
Less departmental appropriations drawn from annual/special appropriations and credited to special accounts
Total departmental resourcing
Annual appropriations – Ordinary annual services
Annual appropriations – Other services – Non‑operating
Annual appropriations – other services – specific payments to States, ACT, NT and local government
Annual appropriations – other services – new administered expenses
Total administered annual appropriations
Administered special appropriations
Total administered special appropriations
Total special accounts receipts
Less administered appropriations drawn from annual/special appropriations and credited to special accounts
Less payments to corporate entities from annual/special appropriations
Total administered resourcing
Total resourcing and payments for Department of Agriculture, Water and the Environment
Our own-source revenue for 2019–20 was $444.3 million. The department had appropriation revenue of $818.5 million.
Figure 25 shows the actual own-source revenue for 2019–20 and budgeted revenue figures from 2020–21, as per the 2019–20 PAES.
The department's own-source income is mainly derived from its regulatory cost-recovery activities. Figure 26 shows the breakdown of our contract revenue by cost-recovery.
Our expenses totalled $1,394.5 million in 2019–20 against the revised budget of $1,406.4 million published in the 2019–20 PAES. This is the first budget available for the new department.
Figure 27 shows the actual departmental operating expenses for 2019–20 and budgeted expenditure figures from 2020–21, as per the 2019–20 PAES.
We operate a number of cost-recovery arrangements across biosecurity, export certification and other services in accordance with the Australian Government charging framework.
Figure 28 outlines the cost-recovery reserve balances at the end of 2019–20.
Managing our assets
Our major investments are in land, buildings, heritage and cultural assets, ICT hardware and software and right of use assets. At 30 June 2020 our asset base was valued at $1,469.6 million. Of this:
$695.2 million are assets located in the Australian Antarctic Territory. During 2019–20 we managed and maintained Australia's Antarctic stations – Casey, Davis and Mawson – and a research station on sub-Antarctic Macquarie Island.
$420.4 million are right of use (ROU) assets, which were accounted for as the department's assets for the first time in 2019–20. The majority of these assets relate to property leases for office accommodation, laboratories, data facilities and residences in remote locations. For more information see the department's 2019–20 financial statements Overview.
We make strategic investments to maintain and improve services to the government and to clients, consistent with government priorities and ongoing business needs. We manage capital investment through a comprehensive process that involves multiple governance bodies. The process is designed to help prioritise and evaluate capital proposals and ensure investments are made effectively.
Following the machinery of government changes, the response to COVID-19 and the need to support flexible work arrangements, the department is in the process of strengthening governance arrangements for, and ensuring the sustainability of, its ICT investments. One of our integration activities will be centralising ICT asset management systems in order to provide greater visibility of ICT asset utilisation, cost and maintenance across the department.
Commonwealth environmental water holdings
The department manages Commonwealth environmental water holdings, which are recorded on state government water registers. The water entitlements are classified as indefinite life intangible assets and are subject to annual impairment testing in accordance with Australian Accounting Standard AASB 138 Intangible Assets.
Heritage and cultural assets – Antarctic collection
Australia has a history of involvement with Antarctica spanning more than 100 years. Over that time we have accumulated a large collection of Antarctic heritage artefacts, artworks, images and objects. We have classified these items as heritage and cultural assets because of their heritage value, and adopted appropriate curatorial and preservation policies for these assets. More information about cultural heritage management in Antarctica is on our website.
Administered program performance
In 2019–20 we managed administered assets of $8,677.8 million on behalf of the Australian Government. This largely comprised $4,011.9 million in water entitlements and $2,111.8 million in loans and investments in 10 portfolio entities.
Administered income for 2019–20 was $758.7 million. The main source of administered income is primary industry levies and charges.
Administered expenditure for 2019–20 was $2,035.1 million. These expenses are primarily made up of: