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Major budget variances

This section provides explanations for major budget variances between the department’s budget and actual results for the year ended 30 June 2019.

Note 17: Departmental budget variances commentary

Note 17

Explanations of major variances

Affected statements and line items

COVID-19 pandemic

The COVID-19 pandemic impacted the department’s financial statements in the following ways:

  • International delegations, both incoming an outgoing, ceased from March and as at reporting date had not recommenced. This resulted in reductions in travel costs for staff supporting the delegations, along with catering, printing and overtime to support delegations outside of normal working hours.
  • All committee office travel to support parliamentary inquiries ceased from March. Associated costs relating to catering, venue hire, meals and incidentals were significantly reduced during the period.
  • Due to reduced sittings of the House, normal costs associated with supporting the chamber, were reduced, this includes overtime for staff who would ordinarily support the chamber outside of hours, casual staff wages for attendants who are primarily employed during sitting weeks, and printing to support bills and papers.
  • Sourcing of equipment was difficult during March–June. This resulted in delays in procuring a number of assets including print room equipment.

Statement of comprehensive income:

  • suppliers expenses
  • employee benefits
  • depreciation and amortisation

Statement of financial position:

  • employee provisions
  • trade and other receivables (in respect of undrawn appropriation)
  • non-financial assets

Cash flow statement:

  • operating cash used—suppliers
  • operating cash used—employees
  • operating cash received—appropriations
  • investing cash used – purchase of property, plant and equipment

Term Deposit Maturity

The department's term deposit held with Westpac of $2,546,108 matured on 29 June 2020. In order to obtain a better rate of return the amount was not immediately reinvested while paperwork to setup new authorities with ME Bank was completed and accepted. The amount was held in cash at bank as at 30 June 2020.

Statement of financial position:

  • cash and cash equivalents
  • other investments

Statement of comprehensive income:

  • depreciation and amortisation
  • changes in asset revaluation surplus

Cash flow statement:

investing cash used — investments

Parliamentary conferences

The department sought and received funding from the Department of Foreign Affairs and Trade to support the participation of a number of Pacific nations at the Asia Pacific Parliamentary Forum in January 2020. This amount was fully offset by expenditure incurred to complete the activity. The net amount of funding after returning unspent funds was $126,000 This funding and expenditure was not known at the time of budgeting.

Statement of comprehensive income:

  • other revenue
  • suppliers expenses

Cash flow statement:

  • operating cash used — investments
  • operating cash received — revenue from external sources

Note 18: Administered budget variances commentary

Note 18: Administered budget variances commentary

Explanations of major variances

Affected statements and line items

COVID-19 pandemic

The COVID-19 pandemic impacted the administered financial statements in the following ways:

  • School visits to Parliament House ceased from March 2020 through June 2020. This meant no hospitality costs were incurred. Costs attributable to the departmental staff member working on the bookings continued as large volumes of cancellations, inquiries and future bookings continued during the period.

Statement of comprehensive income:

  • suppliers expenses

Cash flow statement:

  • cash used — suppliers