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Financial management

PM&C’s 2018–19 financial statements are presented on pages 133–207 of this report. The Auditor-General issued an unmodified audit opinion of these statements, noting that PM&C has appropriate and effective financial controls.

Activities administered on behalf of Government

In 2018–19, PM&C administered seven programs on behalf of government. Administered expenses totalled $1,705.6 million and comprised primarily grant payments ($1,281.9 million, 75.2 per cent of the total).

Administered expenditure included:

  • $1,576.0 million for Indigenous Affairs programs, of which $208.3 million was payments in relation to ABA and $53.3 million to the Indigenous Land and Sea Corporation
  • $111.1 million for payments to Corporate Commonwealth entities and companies
  • $18.5 million for Outcome 1 of which $4.8 million was payments for Office for Women programs.

Graph 3.1: Breakdown of administered expenses Breakdown of administered expenses

Administered revenue totalled $75.2 million, and comprised primarily interest earned on the investment of funds held by the ABA and the Aboriginal and Torres Strait Islander Land Account (ATSILA) special accounts ($57.4 million, 76.3 per cent of the total).

As at 30 June 2019, PM&C’s administered assets totalled $3,619.7 million. Administered assets have decreased from prior years primarily due to the transfer of ATSILA to the Aboriginal and Torres Strait Islander Land and Sea Future Fund, to be managed in the Finance Portfolio.

Graph 3.2: Breakdown of administered assets Breakdown of administered assets

As at 30 June 2019, PM&C’s administered liabilities totalled $54.8 million. This figure includes supplier and grant accruals and provision for future non-cash benefits to be provided to former Governors-General.

Departmental activities

PM&C reported an operating deficit of $26.9 million. After adjusting for unfunded depreciation and amortisation expenses and non-cash asset write-downs and impairments, PM&C recorded an operating surplus of $0.3 million.

In 2018–19 departmental expenses totalled $455.5 million.

Graph 3.3: Breakdown of expenses Breakdown of expenses

Departmental income totalled $23.7 million and comprised sale of goods / rendering of services, resources received free of charge and asset gains. Departmental expenses have decreased from 2017–18 primarily due to ceasing taskforces and a reduction in contractor expenses.

As at 30 June 2019, PM&C had a positive net asset position of $112.9 million. Assets totalled $261.9 million. PM&C’s liabilities totalled $149.0 million as at 30 June 2019, including employee provisions, supplier accruals and lease liabilities. PM&C’s assets and liabilities are broadly in line with the prior year and budgeted position.

Graph 3.4: Breakdown of assets Breakdown of assets

Table 3.24: Resourcing statement

Actual available appropriation for 2018–19

Payment made 2018–19

Remaining balance 2018–19

$’000

(a)

$’000

(b)

$’000

(a)–(b)

Departmental appropriation¹,²

537,753

442,747

95,006

Total

537,753

442,747

95,006

Administered expenses3

Prior year administered appropriation

Outcome 1: Prime Minister and Cabinet

16,183

15,523

Outcome 2: Indigenous

1,244,461

1,223,040

Payments to corporate Commonwealth entities and companies4

111,105

111,105

Total

1,371,749

1,349,668

Total ordinary annual services

A

1,909,502

1,792,415

Other services5

Administered expenses

Specific payments to states, ACT, NT and local government

Prior year administered appropriation

Outcome 1: Prime Minister and Cabinet

Outcome 2: Indigenous

6,536

6,536

Total

6,536

6,536

Departmental non-operating

Equity injections6

14,854

7,791

7,063

Total

14,854

7,791

7,063

Administered non-operating

Administered assets and liabilities

Payments to corporate Commonwealth

24,913

24,913

entities and companies non-operating

Total

24,913

24,913

Total other services

B

46,303

39,240

Total available annual appropriations and payments

A+B

1,955,805

1,831,655

Special appropriations

Special appropriations limited by criteria/entitlement

Aboriginal Land Rights (Northern Territory) Act 1976

430,627

Higher Education Support Act 2003

69,135

Special appropriations limited by amount

Public Governance, Performance and Accountability Act 2013

Total special appropriations

C

499,762

Special accounts7

Opening balance

23,496

Appropriation receipts

458,108

Non-appropriation receipts to special accounts

2,628,945

Payments made

3,072,771

Total special accounts

D

3,110,549

3,072,771

37,778

Total resourcing and payments

A+B+C+D

5,066,354

5,404,188

Less appropriations drawn from annual or special appropriations above and credited to special accounts and/or corporate Commonwealth entities and companies through annual appropriations

(594,126)

(594,126)

Total net resourcing and payments for PM&C

4,472,228

4,801,062

1Appropriation Act (No. 1) 2018–19, including prior year departmental appropriation and section 74 retained revenue receipts, less permanent quarantines of $1.190 million and section 75 transfers of $1.237 million. For further details refer to Note 5.1 to the financial statements.

2 Includes an amount of $12.146 million in 2018–19 for the departmental capital budget. For accounting purposes, this amount has been designated as ‘contributions by owners’.

3 Includes an amount of $1.276 million in 2018–19 for the administered capital budget; and $2.513 million of section 51 quarantines. For accounting purposes, this amount has been designated as ‘contributions by owners’.

4 Corporate Commonwealth entities are corporate Commonwealth entities and Commonwealth companies as defined under the Public Governance, Performance and Accountability Act 2013 (PGPA Act).

5Appropriation Act (No. 2) 2018–19.

6Appropriation Act (No. 2) 2018–19 equity injections and prior year equity injections.

7 Does not include special public money held in accounts like Services for Other Entities and Trust Moneys special accounts (SOETM).

Expenses for Outcome 1

Outcome 1: Provide high-quality policy advice and support to the Prime Minister, the Cabinet, portfolio ministers and parliamentary secretaries, including through the coordination of government activities, policy development, and program delivery.

Table 3.25: Expenses by Outcome 1

Budget* 2018–19

Actual Expenses 2018–19

Variation 2018–19

$’000

(a)

$’000

(b)

$’000

(a)–(b)

Program 1.1: Prime Minister and Cabinet

Administered expenses

Ordinary annual services (Appropriation Acts Nos 1, 3 and 5)

16,898

14,282

2,616

Special appropriations

Expenses not requiring appropriation in the Budget year2

2,728

4,227

(1,499)

Departmental expenses

Departmental appropriation1

152,267

150,974

1,293

Expenses not requiring appropriation in the Budget year2

10,349

11,072

(723)

Total for Program 1.1

182,242

180,555

1,687

Outcome 1 Totals by appropriation type

Administered expenses

Ordinary annual services (Appropriation Act No. 1)

16,898

14,282

2,616

Special appropriations

Expenses not requiring appropriation in the Budget year2

2,728

4,227

(1,499)

Departmental expenses

Departmental appropriation1

152,267

150,974

1,293

Expenses not requiring appropriation in the Budget year2

10,349

11,072

(723)

Total expenses for Outcome 1

182,242

180,555

(1,687)

2018–19 Budget

2018–19 Actuals

Average staffing level (number)

609

642

(33)

* Full year budget, including any subsequent adjustment made.

1 Departmental appropriation combines ordinary annual services (Appropriation Acts Nos 1 and 3) and Retained Revenue Receipts under section 74 of the PGPA Act.

2 Expenses not requiring appropriation in the Budget year are made up of depreciation and amortisation expenses, impairment of receivables, make-good expense, audit fees and services provided free of charge.

Expenses for Outcome 2

Outcome 2: Improve results for Indigenous Australians including in relation to school attendance, employment and community safety, through delivering services and programs, and through measures that recognise the special place that Indigenous people hold in this nation.

Budget* 2018–19

Actual Expenses 2018–19

Variation 2018–19

$’000

(a)

$’000

(b)

$’000

(a)–(b)

Program 2.1: Jobs, Land and Economy

Administered expenses

Ordinary annual services (Appropriation Act No. 1)3

658,894

620,190

38,704

Special appropriations

441,021

430,627

10,394

Special accounts

284,939

258,859

26,080

Payments to corporate entities

18,511

18,511

Less expenses made from appropriations credited to special accounts

(440,000)

(429,608)

(10,392)

Expenses not requiring appropriation in the Budget year2

1,535

(1,535)

Total for Program 2.1

963,365

900,114

63,251

Program 2.2: Children and Schooling

Administered expenses

Ordinary annual services (Appropriation Act No. 1)3

219,000

248,805

(29,805)

Other services (Appropriation Act No. 2)

6,536

6,536

Special appropriations

69,136

69,135

1

Expenses not requiring appropriation in the Budget year2

404

(404)

Total for Program 2.2

294,672

324,880

(30,208)

Program 2.3: Safety and Wellbeing

Administered expenses

Ordinary annual services (Appropriation Act No. 1)2

245,311

260,101

(14,790)

Special accounts

118

(118)

Payments to corporate entities

36,323

36,323

Expenses not requiring appropriation in the Budget year2

30

(30)

Total for Program 2.3

281,634

296,572

(14,938)

Program 2.4: Culture and Capability

Administered expenses

Ordinary annual services (Appropriation Act No. 1)2

48,396

48,165

231

Payments to corporate entities

20,388

20,388

Expenses not requiring appropriation in the Budget year

126

(126)

Total for Program 2.4

68,784

68,679

105

Program 2.5: Remote Australia Strategies

Administered expenses

Ordinary annual services (Appropriation Act No. 1)3

66,975

62,306

4,669

Special accounts

22,000

15,709

6,291

Payments to corporate entities

35,883

35,883

Less expenses made from appropriations credited to special accounts

(28,500)

28,500

Expenses not requiring appropriation in the Budget year2

(3)

3

Total for Program 2.5

124,858

85,395

39,463

Program 2.6: Evaluation and Research

Administered expenses

Ordinary annual services (Appropriation Act No. 1)3

12,487

11,421

1,066

Expenses not requiring appropriation in the Budget year2

Total for Program 2.6

12,487

11,421

1,066

Program 2.7: Program Support

Departmental expenses

Departmental appropriation1

273,341

271,296

2,045

Expenses not requiring appropriation in the Budget year3

11,103

22,181

(11,078)

Total for Program 2.7

284,444

293,477

(9,033)

Outcome 2 Totals by appropriation type

Administered expenses

Ordinary annual services (Appropriation Act No. 1)

1,251,063

1,250,988

75

Other services (Appropriation Act No. 2)

6,536

6,536

Special appropriations

510,157

499,762

10,395

Special accounts

306,939

274,686

32,254

Payments to corporate entities

111,105

111,105

Expenses not requiring appropriation in the Budget year2

2,092

(2,092)

Less expenses made from appropriations credited to special accounts

(440,000)

(458,108)

18,108

Departmental expenses

Departmental appropriation1

273,341

271,296

2,045

Expenses not requiring appropriation in the Budget year2

11,103

22,181

(11,078)

Total expenses for Outcome 2

2,030,244

1,980,538

49,706

2018–19 Budget

2018–19 Actuals

Average staffing level (number)

1,448

1,248

200

* Full year budget, including any subsequent adjustment made.

1 Departmental appropriation combines ordinary annual services (Appropriation Acts No. 1 and 3) and retained revenue receipts under section 74 of the PGPA Act.

2 Expenses not requiring appropriation in the Budget year is made up of depreciation and amortisation expenses, impairment of receivables, valuation of employee provisions, make good expense, audit fees and other non-cash expense items.

3 The variances in administered Outcome 2 programs in ‘Ordinary annual services’ relates to the transfer of funding between programs. These transfers were approved by the Minister for Indigenous Affairs and the Minister for Finance (where required).