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Department of Industry, Science, Energy and Resources Budget Variance Commentary - Administered 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 b udgeted for in the PBS, for example asset revaluation adjustments, explanations will only be provided if the variance is considered to be 'major'.
Explanations of major variances
Transfer of Energy and Climate Change functions from the former Department of the Environment and Energy and transfer of Small Business functions from the Department of Employment, Skills, Small and Family Business as a result of the Administrative Arrangements Order of the 5 December 2019
Affected line items/statements
Statement of Assets and Liabilities – Cash in special accounts ($5 billion) and Other investments ($16 billion). Schedule of Comprehensive Income – Supplier expense ($16 million), Grants expense ($8 million), Payments to corporate Commonwealth entities ($84 million) and Dividends ($109 million)
The variance in supplier expenses was largely due to the new measure for the Northern Endeavour Temporary Operations Program which was announced after the 2019-20 PBS
Schedule of Comprehensive Income – Supplier expense ($25 million)
Changes in timing of meeting conditions such as proponent and jurisdictional approvals for projects progressing to the drawdown stage of the Northern Australia Infrastructure Facility (NAIF) Loan program
Schedule of Comprehensive Income – Interest revenue ($66 million), Fees ($19m) and Finance costs ($548 million)
Statement of Assets and Liabilities – Trade and other receivables ($636 million)
Underspends in relation to a number of grant programs from COVID-19 impacts and recipients not meeting milestones including the Cooperative Research Centres Program and Square Kilometre Array Radio Telescope Project. This was offset by measures announced after 2019-20 PBS including the Manufacturing Modernisation Fund and COVID-19 measures
Schedule of Comprehensive Income – Grants expense ($100 million)
Statement of Assets and Liabilities – Grants Payable ($21 million)
The variance in payments to corporate Commonwealth entities largely relates to increase in appropriations provided to ANSTO through additional estimates
Schedule of Comprehensive Income – Payments to corporate Commonwealth entities ($44 million)