Go to top of page

6. Other Information

6.1 Restructuring

Note 6.1A: Restructuring

Net assets received from or relinquished to another Australian Government entity under a restructuring of administrative arrangements are adjusted at their book value directly against contributed equity.

As part of the Administrative Arrangement Orders issued by the Government on 27 October 2016, responsibility for whole of government ICT and ICT procurement policy and services transferred from the Department of Finance (Finance) to the DTA. Assets and liabilities for this restructure occurred in two phases with phase one transferring on 15 December 2016 and phase 2 transferring on 18 May 2017

The DTA’s ICT Procurement Special Account was established on 6 June 2017 to facilitate the final transfer of assets and liabilities from Finance’s Coordinated Procurement Contracting Special Account which occurred during 2018.

2018

2017

Transfer from

Department of Finance

$’000

Transfer from

Department of Finance

$’000

Functions assumed

Assets recognised

Cash - special account

96,063

-

Appropriation receivable

-

3,088

Accounts receivable

68,937

356

Accrued revenue

174

-

Total asset recognised

165,174

3,444

Liabilities recognised

Employee provisions

-

2,637

Unearned revenue

130,416

807

Trade creditors and accruals

9,590

-

Total liabilities recognised

140,006

3,444

Net assets recognised

25,168

-

Income Assumed

Recognised by DTA

175,805

713

Recognised by Department of Finance

-

972

Total income assumed

175,805

1,685

Expenses assumed

Recognised by DTA

174,957

3,528

Recognised by Department of Finance

-

3,793

Total expenses assumed

174,957

7,321

6.2 Budgetary Explanation of Major Variances

Note 6.2A: Budgetary reporting

The DTA’s financial statements report the original budget as published in the Department of Prime Minister and Cabinet 2017-18 Portfolio Budget Statements.

Where required, the original budget has been adjusted to align with the presentation and classification adopted in the final outcome.

Explanations of major variances between the actual and original budgeted amounts for 2018 (that are greater than +/- 10 per cent of the original budget for a line item and greater than +/- $1 million) are provided below.

Explanations of major variances

Affected line items

Statement of Comprehensive Income

Total expenses for 2017-18 were $242.2m, an increase of $42.1m compared to the original budget. This variance reflects additional expenditure relating to the special account activities transferring as part of the whole of government ICT procurement function from the Department of Finance as part of the 27 October 2016 machinery of government change.

Suppliers

Total own-source income for 2017-18 was $180.2m, an increase of $49.5m compared to the original budget. This increase in revenue corresponds to the above increase in expense relating to the ICT procurement function. The variance is also attributable to an increase in rendering of services for the contract administration fee for the ICT hardware panel arrangement. Additional revenue was recorded to reflect ICT apprenticeship/cadetship costs recovered from participating agencies.

Rendering of Services

The surplus reported in 2017-18 is due to an underspend as a result of less than anticipated engagement of staff, contractor resources and other supplier expenses associated with Public Service Modernisation funding received for platforms and building digital capability.

Surplus/(Deficit) attributable to the Australian Government

Statement of Financial Position

The increase in cash of $60.0m is due to the establishment of the ICT Coordinated Procurement Special Account. At Budget the special account was reported against receivables.

Cash

The increase in Trade and other receivables of $111.4m is mostly due to the invoicing arrangements under the whole of government ICT procurement function for SAP and VSA arrangements. Also, as mentioned above the special account was remapped to Cash in 2017-18 actuals.

Trade and other receivables

The increase in Leasehold improvements of $1.4m relates to purchases for the fit-out of the Canberra and Sydney offices and a revaluation of leasehold improvements that was included in later budget rounds.

Leasehold improvements

The increase in Plant and Equipment of $1.6m is mostly due to the IT refresh project that included purchases of AV equipment and laptops.

Plant and equipment

The increase in prepayments relates to software licenses contracted as part of the whole of Government ICT Coordinated procurement arrangements.

Prepayments

The increase in Suppliers of $40.0m mostly relates to accrued expenses associated with the whole of government ICT procurement function for SAP and IBNCS.

Suppliers

The increase in Other payables of $126.5m mostly relates to unearned revenue associated with the whole of government ICT procurement function for SAP and VSA arrangements.

Other payables

The increase in Employee provisions of $6.2m is mostly attributable to the increase in ASL from the 2016–17 MoG transfer recognised in DTA in May 2017 after Budget was published. A revaluation increase of $0.130m was recognised in 2017–18 which was partially offset by commencements and terminations during the year.

Employee provisions

Statement of Cash Flows

The decrease of $18.4m in appropriations reflects the underspend reported in the income statement as well as additional appropriation revenue for Public service modernisation $18.3 million, $2.8 million to establish a Cyber Security Advisory office and $4 million transferred from the Department of Finance.

Appropriations

The increase in GST receivable of $9.8m reflects the increase of payments to suppliers during the year.

Net GST received

The increase in payments to suppliers of $36.2m mostly reflects payments made in July 2017 for accruals recognised at 30 June.

Suppliers

The increase in purchases of plant and Equipment of $1.4m is mostly due to the IT refresh project that included purchases of AV equipment and laptops.

Purchase of property, plant and equipment

The restructure in 2017-18 relates to the AAO from 27 October 2016. This phase of the MoG relates to the transfer of the ICT procurement special account balance which was delayed due to the late creation of the special account.

Restructuring—special account