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Department of Industry, Science, Energy and Resources Budget Variance Commentary - Departmental for the year ended 30 June 2020
Budget Variance Commentary
The below table provides commentary for major differences between the actual and the original budgeted amounts that were first presented to Parliament in respect of the reporting period from the department’s 2019-20 Portfolio Budget Statements (PBS).
Variances are considered to be 'major' based on the following criteria:
the variance between budget and actual is greater than 10% and $10 million; or
an item below this threshold that is considered important for the reader's understanding or is relevant to an assessment of the discharge of accountability and to an analysis of performance of the entity.
Where an item was not originally budgeted for in the PBS, for example asset revaluations, rental income and sale of asset adjustments, explanations will only be provided if the variance is considered to be 'major'.
Explanations of major variances
Affected line items/statements
Transfer of the Climate Change and Energy functions from the former Department of Environment and Energy and the Small Business function from the former Department of Employment, Skills, Small and Family Business as a result of the Administrative Arrangements Order of the 5 December 2019
Statement of Comprehensive Income - Revenue from Government ($68 million), Employee Benefits ($26 million), Suppliers Expense ($20 million),
Statement of Financial Position – Cash and cash equivalents ($16 million), Employee Provisions ($24 million)
Cash Flow Statement – Appropriations ($38 million), Employee Benefits ($22 million), Suppliers ($16 million), Restructuring – special accounts cash transferred in ($16 million)
The impact of the changes in the accounting treatment for operating leases as a result of adopting AASB 16 Leases is not reflected in the original 2019-20 budget
Statement of Comprehensive Income - Depreciation and amortisation ($31 million)
Statement of Financial Position – Land and Buildings, Infrastructure, Plant and equipment and laboratory equipment ($314 million), Payables ($25 million), Leases liabilities ($317 million)
Cash Flow Statement – Principal payments of lease liabilities ($27 million)
Increase in the Business Grants Hub activities and National Measurement Institute revenues
Statement of Comprehensive Income – Revenue from contracts with customers ($12 million)