Go to top of page

Budget Variance Commentary

for the period ending 30 June 2020

Budgetary reporting

The DTA’s financial statements report the original budget as published in the Department of the Prime Minister and Cabinet 2019–20 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 2020 (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/statements

The implementation of AASB 15 in 2020 resulted in the DTA assessing the majority of the WoAG ICT Procurement contracts with customers as pass-through arrangements (DTA is acting as an agent) resulting in the elimination of transactions included in the original budget.

Statement of Comprehensive Income

Suppliers expense ($51.3 million)

Revenue from contracts with customers ($47.8 million)

Reversals of impairment on financial instruments ($0.4 million)

Statement of Financial Position

Trade and other receivables ($152.0 million)

Prepayments ($20.2 million)

Suppliers payable ($68.4 million – Contract liabilities, -$34.2 million in

accrued expenses)

Other payables ($179.1 million)

Cash Flow Statement

Rendering of services ($144.5 million)

Suppliers ($126.2 million)

The implementation of AASB 16 in 2020 has resulted in the recognition of lease right-of-use assets, liabilities and depreciation charges.

Statement of Comprehensive Income

Depreciation and amortisation ($3.1 million)

Statement of Financial Position

Leasehold improvements ($16.5 million)

Lease liabilities ($13.0 million)

Cash Flow Statement

Interest payments on lease liabilities ($0.1 million)

Principal payments of lease liabilities ($2.8 million)

Additional activities were completed to assist in the coordination of ICT Procurement and Development activities as part of the Government’s response to the COVID-19 pandemic.

Statement of Comprehensive Income

Employee Benefits ($7.2 million)

Suppliers expense ($4.9 million)

Statement of Financial Position

Prepayments ($14.5 million)

Cash Flow Statement

Appropriations ($31.5 million)

Transfers to the OPA ($38.7 million)

ICT Procurement Special Account: Increased receipt collection as part of new WoAG ICT Procurement arrangements with payment to be made in 2021.

Statement of Financial Position

Cash and cash equivalents ($37.7 million)

Retained earnings ($7.2 million)

Improved payment terms decreasing the DTA’s payable balances.

Statement of Financial Position

Supplier payables ($5.3 million)