DEPARTMENT OF THE PRIME MINISTER AND CABINET STATEMENT BY THE SECRETARY AND CHIEF FINANCIAL OFFICER
In our opinion, the attached financial statements for the year ended 30 June 2018 comply with subsection 42(2) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act), and are based on properly maintained financial records as per subsection 41(2) of the PGPA Act.
In our opinion, at the date of this statement, there are reasonable grounds to believe that the Department of the Prime Minister and Cabinet will be able to pay its debts as and when they fall due.
Dr Martin Parkinson AC PSM
Secretary
3 September 2018
Charlotte Tressler
Chief Financial Officer
3 September 2018
DEPARTMENT OF THE PRIME MINISTER AND CABINET STATEMENT OF COMPREHENSIVE INCOME
for the period ended 30 June 2018
|
Notes |
2018 $'000 |
2017 $'000 |
Original budget $'000 |
|
|
NET COST OF SERVICES |
||||
|
Expenses |
||||
|
Employee benefits |
267,962 |
251,396 |
267,574 |
|
|
Suppliers |
178,927 |
177,303 |
181,971 |
|
|
Grants |
1,224 |
903 |
402 |
|
|
Depreciation and amortisation |
18,408 |
15,530 |
12,871 |
|
|
Finance costs |
10 |
- |
15 |
|
|
Write-down and impairment of assets |
6,721 |
5,313 |
- |
|
|
Losses from asset sales |
117 |
755 |
- |
|
|
Total expenses |
473,369 |
451,200 |
462,833 |
|
|
Own-source income |
16,726 |
14,124 |
9,261 |
|
|
Own-source revenue |
||||
|
Sale of goods and rendering of services |
||||
|
Resources received free of charge |
9,566 |
7,539 |
2,014 |
|
|
Total own-source revenue |
26,292 |
21,663 |
11,275 |
|
|
Gains |
||||
|
Other gains |
5,633 |
2,575 |
- |
|
|
Total gains |
5,633 |
2,575 |
- |
|
|
Total own-source income |
31,925 |
24,238 |
11,275 |
|
|
Net cost of services |
441,444 |
426,962 |
451,558 |
|
|
Revenue from Government - departmental appropriations |
417,447 |
406,373 |
438,687 |
|
|
Deficit |
(23,997) |
(20,589) |
(12,871) |
|
|
OTHER COMPREHENSIVE INCOME |
||||
|
Items not subject to subsequent reclassification to net cost of services |
||||
|
Changes in asset revaluation reserve |
(823) |
(823) |
- |
|
|
Total comprehensive loss |
(24,820) |
(20,893) |
(12,871) |
The above statement should be read in conjunction with the accompanying notes.
STATEMENT OF FINANCIAL POSITION
as at 30 June 2018
|
2018 |
2017 |
Original budget |
||||
|
Notes |
$'000 |
$'000 |
$'000 |
|||
|
ASSETS |
||||||
|
Financial assets |
||||||
|
Cash and cash equivalents |
1,910 |
2,976 |
5,031 |
|||
|
Trade and other receivables |
96,643 |
102,003 |
110,010 |
|||
|
Accrued revenue - recovery of departmental costs |
4,056 |
3,787 |
4,241 |
|||
|
Total financial assets |
102,609 |
108,766 |
119,282 |
|||
|
Non-financial assets |
||||||
|
Property, plant and equipment |
110,739 |
99,071 |
104,608 |
|||
|
Intangibles |
30,372 |
24,816 |
29,493 |
|||
|
Prepayments |
4,573 |
3,642 |
3,231 |
|||
|
Total non-financial assets |
145,684 |
127,529 |
137,332 |
|||
|
Assets held for sale - land and buildings |
1,825 |
250 |
9,455 |
|||
|
Total assets |
250,118 |
236,545 |
266,069 |
|||
|
LIABILITIES |
||||||
|
Payables |
||||||
|
Trade creditors and accruals |
22,709 |
22,673 |
27,362 |
|||
|
Grants - non-profit organisations |
232 |
303 |
- |
|||
|
Other payables |
36,299 |
20,759 |
16,385 |
|||
|
Total payables |
59,240 |
43,735 |
43,747 |
|||
|
Provisions |
||||||
|
Employee provisions |
78,629 |
77,660 |
77,258 |
|||
|
Make good provisions |
645 |
1,258 |
916 |
|||
|
Total provisions |
79,274 |
78,918 |
78,174 |
|||
|
Total liabilities |
138,514 |
122,653 |
121,921 |
|||
|
Net assets |
111,604 |
113,892 |
144,148 |
|||
|
EQUITY |
||||||
|
Contributed equity |
195,741 |
173,209 |
207,266 |
|||
|
Accumulated deficit |
(89,897) |
(65,900) |
(70,005) |
|||
|
Reserves |
5,760 |
6,583 |
6,887 |
|||
|
Total equity |
111,604 |
113,892 |
144,148 |
The above statement should be read in conjunction with the accompanying notes.
STATEMENT OF CHANGES IN EQUITY
for the period ended 30 June 2018
|
2018 |
2017 |
Original budget |
||||
|
$'000 |
$'000 |
$'000 |
||||
|
CONTRIBUTED EQUITY |
||||||
|
Opening balance |
||||||
|
Balance carried forward from previous period |
173,209 |
152,923 |
186,657 |
|||
|
Adjusted opening balance |
173,209 |
152,923 |
186,657 |
|||
|
Transactions with owners |
||||||
|
Distributions to owners |
||||||
|
Returns of capital: |
||||||
|
Restructuring1 |
127 |
- |
- |
|||
|
Other2 |
- |
(57) |
(5,591) |
|||
|
Contributions by owners |
||||||
|
Appropriation (equity injection) |
11,694 |
8,611 |
11,694 |
|||
|
Departmental Capital Budget (DCB) |
10,711 |
11,732 |
14,506 |
|||
|
Total transactions with owners |
22,532 |
20,286 |
20,609 |
|||
|
Closing balance as at 30 June |
195,741 |
173,209 |
207,266 |
|||
|
ACCUMULATED DEFICIT |
||||||
|
Opening balance |
||||||
|
Balance carried forward from previous period |
(65,900) |
(45,311) |
(58,166) |
|||
|
Adjusted opening balance |
(65,900) |
(45,311) |
(58,166) |
|||
|
Comprehensive income |
||||||
|
Deficit for the period |
(23,997) |
(20,589) |
(12,871) |
|||
|
Total comprehensive income |
(23,997) |
(20,589) |
(12,871) |
|||
|
Transactions with owners |
||||||
|
Distributions to owners |
||||||
|
Returns of capital: |
||||||
|
Distribution of equity |
- |
- |
2,933 |
|||
|
Other |
- |
- |
(1,901) |
|||
|
Total transactions with owners |
- |
- |
1,032 |
|||
|
Closing balance as at 30 June |
(89,897) |
(65,900) |
(70,005) |
|||
The above statement should be read in conjunction with the accompanying notes.
STATEMENT OF CHANGES IN EQUITY
for the period ended 30 June 2018
|
2018 |
2017 |
Original budget |
||||
|
$'000 |
$'000 |
$'000 |
||||
|
ASSET REVALUATION RESERVE |
||||||
|
Opening balance |
||||||
|
Balance carried forward from previous period |
6,583 |
6,887 |
6,887 |
|||
|
Adjusted opening balance |
6,583 |
6,887 |
6,887 |
|||
|
Comprehensive income |
||||||
|
Other comprehensive income |
(823) |
(304) |
- |
|||
|
Total comprehensive income |
(823) |
(304) |
- |
|||
|
Closing balance as at 30 June |
5,760 |
6,583 |
6,887 |
|||
|
TOTAL EQUITY |
||||||
|
Opening balance |
||||||
|
Balance carried forward from previous period |
113,892 |
114,499 |
135,378 |
|||
|
Adjusted opening balance |
113,892 |
114,499 |
135,378 |
|||
|
Comprehensive income |
||||||
|
Other comprehensive income |
(823) |
(304) |
- |
|||
|
Deficit for the period |
(23,997) |
(20,589) |
(12,871) |
|||
|
Total comprehensive income |
(24,820) |
(20,893) |
(12,871) |
|||
|
Transactions with owners |
||||||
|
Distributions to owners |
||||||
|
Returns of capital: |
||||||
|
Distribution of equity |
- |
- |
2,933 |
|||
|
Restructuring1 |
127 |
- |
- |
|||
|
Other2 |
- |
(57) |
(7,492) |
|||
|
Contributions by owners |
||||||
|
Appropriation (equity injection) |
11,694 |
8,611 |
11,694 |
|||
|
Departmental Capital Budget (DCB) |
10,711 |
11,732 |
14,506 |
|||
|
Total transactions with owners |
22,532 |
20,286 |
21,641 |
|||
|
Closing balance as at 30 June |
111,604 |
113,892 |
144,148 |
1 Refer Note 8.1 Restructuring.
2 Return of appropriation of $0.057 million in 2016-17 reflects the repeal of Annual Appropriation Act 2 2014-15.
Accounting Policy
Equity injections
Amounts appropriated which are designated as ‘equity injections’ for a year (less any formal reductions) and DCBs are recognised directly in contributed equity in that year.
Restructuring of Administrative Arrangements
Net assets received from or relinquished to another Government entity under a restructuring of administrative arrangements are adjusted at their book value directly against contributed equity.
Other Distributions to/from Owners
The Public Governance, Performance and Accountability (Financial Reporting) Rule 2015 (FRR) requires that distributions to owners be debited to contributed equity unless it is in the nature of a dividend.
The above statement should be read in conjunction with the accompanying notes.
CASH FLOW STATEMENT
for the period ended 30 June 2018
|
2018 |
2017 |
Original budget |
|||||
|
$'000 |
$'000 |
$'000 |
|||||
|
OPERATING ACTIVITIES |
|||||||
|
Cash received |
|||||||
|
Sale of goods and rendering of services |
25,324 |
19,076 |
9,261 |
||||
|
GST received |
18,892 |
13,499 |
- |
||||
|
Appropriations |
460,342 |
424,748 |
435,357 |
||||
|
Total cash received |
504,558 |
457,323 |
444,618 |
||||
|
Cash used |
|||||||
|
Employees |
255,114 |
245,463 |
267,399 |
||||
|
Suppliers |
200,752 |
192,812 |
177,800 |
||||
|
Grants |
1,295 |
600 |
1,902 |
||||
|
Retained receipts transferred to the Official Public Account |
26,047 |
22,924 |
17 |
||||
|
Total cash used |
483,208 |
461,799 |
447,118 |
||||
|
Net cash from/ (used by) operating activities |
21,350 |
(4,476) |
(2,500) |
||||
|
INVESTING ACTIVITIES |
|||||||
|
Cash received |
|||||||
|
Proceeds from sales of property, plant and |
|||||||
|
equipment |
1,019 |
4,123 |
2,500 |
||||
|
Total cash received |
1,019 |
4,123 |
2,500 |
||||
|
Cash used |
|||||||
|
Purchase of property, plant and equipment |
31,548 |
17,134 |
16,930 |
||||
|
Purchase of intangibles |
10,809 |
9,198 |
9,270 |
||||
|
Other investing |
31 |
178 |
- |
||||
|
Total cash used |
42,388 |
26,510 |
26,200 |
||||
|
Net cash used by investing activities |
(41,369) |
(22,387) |
(23,700) |
||||
|
FINANCING ACTIVITIES |
|||||||
|
Cash received |
|||||||
|
Contributed equity |
|||||||
|
Equity injections |
9,665 |
12,334 |
11,694 |
||||
|
Departmental capital budget |
9,288 |
12,474 |
14,506 |
||||
|
Total cash received |
18,953 |
24,808 |
26,200 |
||||
|
Net cash from financing activities |
18,953 |
24,808 |
26,200 |
||||
|
Net decrease in cash held |
(1,066) |
(2,055) |
- |
||||
|
Cash and cash equivalents at the beginning of the reporting period |
2,976 |
5,031 |
5,031 |
||||
|
Cash and cash equivalents at the end of the reporting period |
1,910 |
2,976 |
5,031 |
The above statement should be read in conjunction with the accompanying notes.
BUDGET COMMENTARY
for the period ended 30 June 2018
|
Departmental Budget Variance Commentary: The below table provides commentary for significant variances between PM&C’s original budget estimates, as published in the 2017-18 Portfolio Budget Statements, and the actual expenditure and net asset position for the year. |
|
|
Explanation of major variances |
Affected line items (and statement) |
|
Taskforces: temporary taskforces contributed own-source revenue being higher than budget, due to seconded employees provided free of charge from other government entities. |
Supplier expense - Statement of Comprehensive Income Resources received free of charge - Statement of Comprehensive Income |
|
Office accommodation: renegotiated leases for office accommodation has contributed to a number of financial line items being higher than budget due to the write-back of terminated lease balances and recognition of new lease incentives received. |
Other gains – Statement of Comprehensive Income Other payables – Statement of Financial Position Purchase of property, plant and equipment – Cash Flow Statement Sale of goods and rendering of services – Cash Flow Statement |
The above statement should be read in conjunction with the accompanying notes.
ADMINISTERED SCHEDULE OF COMPREHENSIVE INCOME
for the period ended 30 June 2018
|
2018 |
2017 |
Original budget |
||||
|
Notes |
$'000 |
$'000 |
$'000 |
|||
|
NET COST OF SERVICES |
||||||
|
Expenses |
||||||
|
Employee benefits |
1,198 |
1,095 |
918 |
|||
|
Suppliers |
60,648 |
59,457 |
73,520 |
|||
|
Subsidies - Petrol Sniffing Prevention Strategy |
300 |
484 |
1,826 |
|||
|
Grants |
1,340,924 |
1,347,373 |
1,359,826 |
|||
|
Depreciation and amortisation |
318 |
169 |
131 |
|||
|
Finance costs |
348 |
305 |
284 |
|||
|
Write-down and impairment of assets |
2,827 |
8,632 |
- |
|||
|
Payments associated with Land Councils |
147,325 |
97,673 |
114,523 |
|||
|
Payments to Corporate Commonwealth entities and companies |
94,929 |
92,752 |
91,680 |
|||
|
Payments to Indigenous Land Corporation1 |
52,296 |
51,422 |
52,296 |
|||
|
Mining withholding tax |
6,532 |
4,572 |
- |
|||
|
Total expenses |
1,707,645 |
1,663,934 |
1,695,004 |
|||
|
Income |
||||||
|
Revenue |
||||||
|
Non-taxation revenue |
||||||
|
Interest |
76,888 |
79,108 |
84,916 |
|||
|
Other revenue |
13,264 |
27,564 |
2,311 |
|||
|
Total non-taxation revenue |
90,152 |
106,672 |
87,227 |
|||
|
Total revenue |
90,152 |
106,672 |
87,227 |
|||
|
Gains |
||||||
|
Other gains |
948 |
1,498 |
- |
|||
|
Total gains |
948 |
1,498 |
- |
|||
|
Total income |
91,100 |
108,170 |
87,227 |
|||
|
Net cost of services |
1,616,545 |
1,555,764 |
1,607,777 |
|||
|
Deficit |
(1,616,545) |
(1,555,764) |
(1,607,777) |
|||
|
OTHER COMPREHENSIVE INCOME |
||||||
|
Items not subject to subsequent reclassification to net cost of services |
||||||
|
Changes in asset revaluation reserves |
131,755 |
155,123 |
- |
|||
|
Items subject to subsequent reclassification to net cost of services |
||||||
|
Actuarial (loss)/ gains - former Governors-General |
||||||
|
entitlements |
(354) |
1,112 |
- |
|||
|
Total other comprehensive income |
131,401 |
156,235 |
- |
|||
|
Total comprehensive loss |
(1,485,144) |
(1,399,529) |
(1,607,777) |
1 Payment made from the Aboriginal and Torres Strait Islander Land Account (Special Account). The original budget amount was published in the 2017-18 Portfolio Budget Statement as ‘Other Expenses’.
ADMINISTERED SCHEDULE OF ASSETS AND LIABILITIES
as at 30 June 2018
|
2018 |
2017 |
Original budget |
||||
|
Notes |
$'000 |
$'000 |
$'000 |
|||
|
ASSETS |
||||||
|
Financial assets |
||||||
|
Cash and cash equivalents |
23,576 |
36,072 |
20,094 |
|||
|
Trade and other receivables |
102,507 |
110,884 |
113,859 |
|||
|
Term deposits |
2,798,741 |
2,612,110 |
2,674,970 |
|||
|
Investments in Corporate Commonwealth entities |
2,309,766 |
2,113,984 |
2,073,684 |
|||
|
Total financial assets |
5,234,590 |
4,873,050 |
4,882,607 |
|||
|
Non-financial assets |
||||||
|
Property, plant and equipment |
50,342 |
1,065 |
1,344 |
|||
|
Prepayments |
3,147 |
2,711 |
9,860 |
|||
|
Total non-financial assets |
53,489 |
3,776 |
11,204 |
|||
|
Total assets administered on behalf of Government |
5,288,079 |
4,876,826 |
4,893,811 |
|||
|
LIABILITIES |
||||||
|
Payables |
||||||
|
Trade creditors and accruals |
3,967 |
6,505 |
421 |
|||
|
Grants |
48,197 |
41,791 |
19,607 |
|||
|
Other payables |
1,435 |
903 |
7,489 |
|||
|
Total payables |
53,599 |
49,199 |
27,517 |
|||
|
Provisions |
||||||
|
Employee provisions |
293 |
251 |
360 |
|||
|
Non-cash benefits - former Governors-General |
13,251 |
13,918 |
14,134 |
|||
|
Other provisions |
105 |
105 |
- |
|||
|
Total provisions |
13,649 |
14,274 |
14,494 |
|||
|
Total liabilities administered on behalf of Government |
67,248 |
63,473 |
42,011 |
|||
|
Net assets |
5,220,831 |
4,813,353 |
4,851,800 |
ADMINISTERED BUDGET COMMENTARY
as at 30 June 2018
|
Administered Budget Variance Commentary: The below table provides commentary for significant variances between PM&C’s original budget estimates for administered functions, as published in the 2017-18 Portfolio Budget Statements, and the actual expenditure and net asset position for the year. |
|
|
Explanation of major variances |
Affected line items (and statement) |
|
Royalty equivalent income: statutory payments to royalty associations were higher than the original budget due to additional mining royalty equivalent income received by the Aboriginals Benefit Account. 30% of royalty equivalent income received is distributed to relevant Land Councils. |
Payments associated with Land Councils - Administered Schedule of Comprehensive Income |
|
Corporate Commonwealth Entities: increases to the net asset positions of the Indigenous Land Corporation and the Indigenous Business Australia is the main reason for investments in Corporate Commonwealth entities being higher than budget. |
Investments in Corporate Commonwealth entities – Statement of Financial Position Changes in asset revaluation reserves – Other comprehensive income |
|
Official Establishments: ownership and property management of the Prime Minister’s official residences was assumed from the Department of Finance (DoF) during the year following a restructure of administrative arrangements, effective 30 November 2017. |
Property, plant and equipment – Administered Schedule of Assets and Liabilities Restructuring – Administered Reconciliation Sc |
ADMINISTERED RECONCILIATION SCHEDULE
for the period ended 30 June 2018
|
2018 |
2017 |
||
|
$'000 |
$'000 |
||
|
Opening assets less liabilities as at 1 July |
4,813,353 |
4,508,447 |
|
|
Net cost of services |
|||
|
Income |
91,100 |
108,170 |
|
|
Expenses |
|||
|
Payments to entities other than Corporate Commonwealth entities and |
|||
|
companies |
(1,560,420) |
(1,519,760) |
|
|
Payments to Indigenous Land Corporation |
(52,296) |
(51,422) |
|
|
Payments to Corporate Commonwealth entities and companies |
(94,929) |
(92,752) |
|
|
Other comprehensive income |
|||
|
Revaluations transferred to reserves |
131,755 |
155,123 |
|
|
Actuarial (loss)/ gain through equity |
(354) |
1,112 |
|
|
Transfers (to)/from the Australian Government |
|||
|
Appropriation transfers from Official Public Account |
|||
|
Annual appropriation for administered expenses (non-Corporate |
|||
|
Commonwealth entities and companies) |
1,415,282 |
1,463,614 |
|
|
Annual appropriation for payment to Corporate Commonwealth entities |
|||
|
and companies |
94,929 |
92,752 |
|
|
Special appropriations (non-Corporate Commonwealth entities and |
|||
|
companies) |
406,731 |
237,538 |
|
|
Special account |
1,617 |
19,344 |
|
|
Transfers to Official Public Account |
(137,955) |
(126,094) |
|
|
Transfers to Official Public Account Special accounts |
(1,617) |
(19,269) |
|
|
Equity injection to Corporate Commonwealth entities and companies |
23,850 |
36,550 |
|
|
Restructuring1 |
89,785 |
- |
|
|
Closing assets less liabilities as at 30 June |
5,220,831 |
4,813,353 |
1 Refer Note 8.1 Restructuring.
Accounting Policy
Administered cash transfers to and from the Official Public Account
Revenue collected by PM&C for use by the Government rather than for PM&C is administered revenue. Collections are transferred to the Official Public Account (OPA), maintained by the Department of Finance. Conversely, cash is drawn from the OPA to make payments under Parliamentary appropriation on behalf of Government. These transfers to and from the OPA are adjustments to the administered cash held by PM&C on behalf of the Government and reported as such in the Administered Cash Flow Statement and in the Administered Reconciliation Schedule.
ADMINISTERED CASH FLOW STATEMENT
for the period ended 30 June 2018
|
2018 |
2017 |
|||
|
Notes |
$'000 |
$'000 |
||
|
OPERATING ACTIVITIES |
||||
|
Cash received |
||||
|
GST received |
120,323 |
98,713 |
||
|
Other |
2,065 |
1,868 |
||
|
Total cash received |
122,388 |
100,581 |
||
|
Cash used |
||||
|
Employees |
1,156 |
1,195 |
||
|
Suppliers |
62,822 |
52,642 |
||
|
Subsidy payments |
300 |
484 |
||
|
Grant payments |
1,440,193 |
1,412,235 |
||
|
Payments to Corporate Commonwealth entities and companies |
94,929 |
92,752 |
||
|
Payments associated with Land Councils |
147,325 |
98,271 |
||
|
Payments to Indigenous Land Corporation |
52,296 |
51,422 |
||
|
Other |
6,528 |
4,572 |
||
|
Total cash used |
1,805,549 |
1,713,573 |
||
|
Net cash used by operating activities |
(1,683,161) |
(1,612,992) |
||
|
INVESTING ACTIVITIES |
||||
|
Cash received |
||||
|
Proceeds from realisation of investments |
2,696,110 |
2,747,739 |
||
|
Interest on investments and loans |
72,928 |
75,969 |
||
|
Repayment of loans |
5,381 |
3,161 |
||
|
Total cash received |
2,774,419 |
2,826,869 |
||
|
Cash used |
||||
|
Purchase of property, plant and equipment |
- |
91 |
||
|
Payments to Corporate Commonwealth entities and companies |
23,850 |
36,550 |
||
|
Purchase of investments |
2,882,741 |
2,810,833 |
||
|
Loans made |
- |
65,000 |
||
|
Total cash used |
2,906,591 |
2,912,474 |
||
|
Net cash used by investing activities |
(132,172) |
(85,605) |
||
|
Net decrease in cash held |
(1,815,333) |
(1,698,597) |
||
|
Cash and cash equivalents at the beginning of the reporting period |
36,072 |
30,234 |
||
|
Cash from Official Public Account |
||||
|
Appropriations |
1,940,792 |
1,830,454 |
||
|
Special Accounts |
1,617 |
19,344 |
||
|
Total cash from the Official Public Account |
1,942,409 |
1,849,798 |
||
|
Cash to Official Public Account |
||||
|
Appropriations |
(137,955) |
(126,094) |
||
|
Special Accounts |
(1,617) |
(19,269) |
||
|
Total cash to the Official Public Account |
(139,572) |
(145,363) |
||
|
Cash and cash equivalents at the end of the reporting period |
23,576 |
36,072 |
Visit
https://www.transparency.gov.au/annual-reports/department-prime-minister-and-cabinet/2018/part-four-financial-statements-0