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Financial management

Financial performance

This section provides an overview of IPEA’s financial performance from 1 July 2019 to 30 June 2020, for both departmental and administered activities. IPEA’s financial statements are presented in Part 4 of this report. The Australian National Audit Office (ANAO) issued an unqualified audit opinion for the statements on 24 September 2020.

IPEA was established as a statutory authority under the Independent Parliamentary Expenses Authority Act 2017.

Departmental activities

Departmental resourcing includes assets, liabilities, revenues and expenses that IPEA controls directly and uses to produce outcomes on behalf of the Government. IPEA recorded an operating surplus of $0.514 million. Operating expenses were $9.638 million and primarily consisted of employee benefits of $7.078 million and supplier expenses of $2.560 million. Own-source revenue was $0.057 million which primarily related to ANAO for auditors’ remuneration. Revenue from the Government for 2019–20 was $10.095 million.

Table 3: Departmental resourcing

30 June 2020

$’000

Employee benefits

7,078

Suppliers

2,560

Total expenses

9,638

Own-source revenue

57

Net (cost of) services

-9,581

Revenue from Government

10,095

Total comprehensive income

514

Administered activities

Administered items are assets, liabilities, revenues and expenses that are managed or overseen by IPEA on behalf of the Government. IPEA incurred $43.328 million of expenses on behalf of the Government on work-related travel expenses for current and former parliamentarians and their staff.

Table 4: Administered expenses

30 June 2020

$’000

Expenses administered on behalf of the Government

43,328

Significant non-compliance with finance law

IPEA did not report any significant issues relating to non-compliance with the finance law to the Finance Minister under paragraph 19(1)(e) of the PGPA Act in 2019–20.

Asset management

IPEA did not own any assets in 2019–20. All assets used by IPEA during the period were provided as part of a purchaser provider arrangement with the Department of Finance.

Grants

IPEA did not manage any grant programs in 2019–20.

Procurement

IPEA’s approach to procuring goods and services, including consultancies, is consistent with, and reflects the principles of the Commonwealth Procurement Rules. These rules are applied to activities through IPEA’s Accountable Authority Instructions. IPEA had five contracts of $100,000 or more (inclusive of GST) during 2019–20. No contracts in excess of $10,000 (inclusive of GST), or standing offers, were exempted by the CEO of IPEA from being published on AusTender on the basis that they would disclose exempt matters under the Freedom of Information Act 1982.

Initiatives to support small business

IPEA supports small business participation in the Commonwealth Government procurement market. Small and Medium Enterprises (SME) and Small Enterprise participation statistics estimate that, in 2018–19, 84 per cent of government suppliers were SMEs. The statistics are available on the Department of Finance website at: https://www.finance.gov.au/government/procurement/statistics-australian-government-procurement-contracts-.

IPEA's measures to support SMEs include:

  • complying with the Commonwealth Procurement Framework
  • using simplified contracts for low-risk procurements valued under $80,000
  • implementing the Indigenous Procurement Policy, noting that many Indigenous businesses are also SMEs
  • using the Australian Industry Participation policies and programs to encourage SME engagement opportunities
  • using credit cards for procurements valued below $10,000
  • complying with the Government's Supplier Pay-on-Time or Pay Interest Policy.

Consultancies

IPEA engages consultants when it requires specialist expertise or when independent review or assessment is required. Decisions to engage consultants are made in accordance with the PGPA Act and related regulations, including the Commonwealth Procurement Rules and relevant internal policies.

During 2019–20, no new consultancy contracts were entered and no ongoing consultancy contract was active during the period.

Annual reports contain information about actual expenditure on contracts for consultancies. Information on the value of contracts and consultancies is available on the AusTender website.