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Financial management

PM&C’s 2019–20 financial statements are presented in part 4 of this report. The Auditor-General issued an unmodified audit opinion of these statements.

Activities administered on behalf of Government

In 2019–20, PM&C administered one program on behalf of Government. Administered expenses totalled $146.4 million and comprised primarily of payments to corporate Commonwealth entities and companies ($119.2 million, 81.4 per cent of the total) and grant payments ($21.0 million, 14.3 per cent of the total).

Administered expenditure included:

  • $119.2 million for payments to corporate Commonwealth entities and companies
  • $3.7 million for supplier expenses
  • $21.0 million for grants expenditure, of which $17.0 million was for payments to the National Australia Day Council and $3.9 million was for payments for Office for Women programs.

Graph 3.1 Breakdown of administered expenses Graph 3.1 – breakdown of administered expenses by financial year from 2016-17 to 2019-20. The categories of administered expenses are grants, suppliers, payments to corporate Commonwealth entities and companies, payments associated with Land Councils and Indigenous Land and Sea Corporation and other. The graph displays a decrease in the administered expenses in 2019-20.

The significant decrease in administered expenditure is due to the transfer of the Indigenous Affairs functions to the National Indigenous Australians Agency (NIAA).

As at 30 June 2020, PM&C's administered assets totalled $2,650.3 million. Administered assets decreased from prior years primarily due to the transfer of the Indigenous Affairs function to the NIAA.

Graph 3.2 Breakdown of administered assets Graph 3.2 – breakdown of administered assets by financial year from 2016-17 to 2019-20. The categories of administered assets are term deposits, investments in corporate Commonwealth entities, cash and cash equivalents, trade and other receivables and other. The graph shows that the administered assets have been decreasing from 2017-18.

As at 30 June 2020, PM&C administered liabilities totalled $20.7 million. This figure included the provision for future non-cash benefits to be provided to former Governors-General.

Departmental activities

PM&C reported an operating deficit of $13.0 million. After adjusting for unfunded depreciation and amortisation expenses and non-cash asset write-downs and impairments, PM&C recorded a small operating surplus.

In 2019–20 departmental expenses totalled $247.8 million.

Graph 3.3 Breakdown of expenses Graph 3.3 – breakdown of expenses by financial year from 2016-17 to 2019-20. The categories of expenses are employee benefits, suppliers, depreciations and amortisation and other. The graph displays a decrease in expenses in 2019-20.

The significant decrease in expenditure is due to the transfer of the Indigenous Affairs functions to the NIAA.

Departmental income totalled $69.5 million and comprised revenue from contracts with customers, resources received free of charge and asset gains. Departmental income increased due to the provision of enabling services.

As at 30 June 2020, PM&C had a positive net asset position of $61.4 million. Assets totalled $235.8 million. PM&C’s liabilities totalled $174.4 million as at 30 June 2020, including employee provisions, supplier accruals and lease liabilities.

Graph 3.4 Breakdown of assets Graph 3.4 – breakdown of assets by financial year from 2016-17 to 2019-20. The categories of assets are cash and cash equivalents, trade and other receivables, property, plant and equipment, intangibles and other. The graph shows a small decrease in the assets in 2019-20.

Table 3.24: Resourcing statement

Actual available appropriation for 2019‑20

Payment made 2019-20

Remaining balance 2019-20

$’000

(a)

$’000

(b)

$’000

(a)–(b)

Departmental appropriation¹,²

279,090

250,658

28,432

Total

279,090

250,658

28,432

Administered expenses3

Prior year administered appropriation

0

0

Outcome 1: Prime Minister and Cabinet

34,730

28,736

Payments to corporate Commonwealth entities and companies4

119,185

119,185

Total

153,915

147,921

Total ordinary annual services

A

433,005

398,579

Departmental non-operating

Equity injections5

139

0

139

Total

139

0

139

Administered non-operating

Administered assets and liabilities

Payments to corporate Commonwealth entities and companies non-operating

25,035

25,035

Total

25,035

25,035

Total other services

B

25,174

25,035

Total available annual appropriations and payments

A+B

458,179

423,614

Special accounts6

Opening balance

37,779

Appropriation receipts

0

Non-appropriation receipts to special accounts

100

Adjustments

(37,552)

Payments made

327

Total special accounts

C

327

327

0

Total resourcing and payments

A+B+C

458,506

423,941

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

0

0

Total net resourcing and payments for PM&C

458,506

423,941

1 Appropriation Act (No. 1) 2019-20, Supply Act (No. 1) 2019-20 and Appropriation Act (No. 3) 2019-20. This may also include prior-year departmental appropriation and section 74 retained revenue receipts. For further details refer to Note 5.1 to the financial statements.2 Includes an amount of $20.174 million in 2019-20 for the departmental capital budget. For accounting purposes, this amount was designated as ‘contributions by owners’.

3 Includes an amount of $1.233 million in 2019-20 for the administered capital budget. For accounting purposes, this amount was 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) 2019-20 equity injections and prior year equity injections.

6.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 Assistant Ministers, including through the coordination of government activities, policy development, and program delivery.

Table 3.25: Expenses for Outcome 1

Budget* 2019-20

Actual expenses 2019-20

Variation 2019-20

$’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)

147,340

144,941

2,399

Special appropriations

10

0

10

Special accounts

27,646

327

27,319

Expenses not requiring appropriation in the Budget year2

716

1,155

(439)

Departmental expenses

Departmental appropriation1

217,433

219,943

(2,510)

Expenses not requiring appropriation in the Budget year2

9,014

27,849

(18,835)

Total for Program 1.1

402,159

394,215

7,944

Outcome 1 Totals by appropriation type

Administered expenses

Ordinary annual services (Appropriation Act No. 1)

147,340

144,941

2,399

Special appropriations

10

0

10

Special accounts

27,646

327

27,319

Expenses not requiring appropriation in the Budget year2

716

1,155

(439)

Departmental expenses

Departmental appropriation1

217,433

219,943

(2,510)

Expenses not requiring appropriation in the Budget year2

9,014

27,849

(18,835)

Total expenses for Outcome 1

402,159

394,215

7,944

2019-20 Budget

2019-20 Actuals

Variation

Average staffing level (number)

926

867

59

* 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.