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Other Information (cont.)

Notes to and forming part of the Financial Statements

8.2 Explanations of Major Budget Variances

The following provides explanations of major variances between original budget for the NCA as presented in the 2018-19 Infrastructure, Regional Development and Cities Portfolio Budget Statements (PBS) and the NCA's 2018-19 final outcome, as presented in accordance with Australian Accounting Standards. The budget is not audited. Major variances are those deemed relevant to an analysis of the NCA's performance and are not focused on merely numerical differences between budget and actual amounts.

Departmental Major Budget Variances

for the period ended 30 June 2019

Note

Explanation of major variances

Affected line item and statement

1.1A

Employee benefits were lower than estimated mainly due to some positions remaining unfilled throughout the year.

Employee benefits in the Statement of Comprehensive Income and Employees in the Statement of Cash Flows.

1.1B

No material change.

Suppliers in the Statement of Comprehensive Income.

Operating Cash Used - Suppliers in the Statement of Cash Flows.

1.1C

and

3.2A

Minor write-downs of infrastructure, plant and equipment and software assets took place during the year. No budget was provided in the original budget.

Write-down and impairment of assets in the Statement of Comprehensive Income.

Plant and equipment in the Statement of Financial Position.

1.2A

Sale of goods and rendering of services was greater than estimated due to increased events and cost recovery revenue.

Sale of goods and rendering of services in the Statement of Comprehensive Income.

Operating Cash Received - Sale of goods and rendering of services in the Cash Flow Statement.

1.2C

Income in the original budget was overstated. Subsequent budget estimates were amended to reflect actual revenue.

Rental income in the Statement of Comprehensive Income.

1.2D

Other revenue includes a one-off external contribution for the NCA's new Asset Management System of $500k. This amount was fully expended in the year.

Other revenue.

1.2E

Other gains were lower than budgeted due to an adjustment to previous year employee liabilities.

Other Gains.

3.1A

No material change.

Cash and cash equivalents.

3.1B

Appropriations have been retained to pay out liabilities accrued during the year. Funding received from third parties has been retained for future expenditure on construction projects.

Trade and other receivables in the Statement of Financial Position, specifically, Appropriation receivable.

3.2A

The value of non-financial assets declined due to depreciation, increased impairment and revaluations.

Property, plant and equipment and Intangibles in the Statement of Financial Position.

3.2B

Asset was sold during the year.

Assets held for sale.

3.3A

Fewer payables relating to operational contracts were accrued at year end.

Supplier payables in the Statement of Financial Position.

3.3B

Unearned revenue was lower than estimated due to receipt of lower third party funds to deliver specific projects.

Other payables in the Statement of Financial Position.

Cash

Flow

s74 cash receipts returned to the OPA to increase available appropriations are not included in the budgeted statements.

Operating Cash Received - Appropriations and Section 74 receipts transferred to OPA in the Cash Flow Statement.

Administered Major Budget Variances

for the period ended 30 June 2019

Note

Explanation of major variances

Affected line item and statement

2.1A

Increased costs in consultants and also new Managing Contractors arrangements.

Suppliers in the Administered Schedule of Comprehensive Income.

2.1B

No budget provided as this is a new reporting requirement.

Impairment loss allowance on financial instruments in Administered Schedule of Comprehensive Income.

2.1C

A comprehensive impairment review identified a greater value of assets to be written off than was anticipated in the budget.

Write-down and impairment of assets in the Administered Schedule of Comprehensive Income.

2.2A, 2.2B and 2.2C

Revenue from parking fees are lower than budgeted due to lower usage rates than expected and a reduction in the number of car parking spaces.

Rendering of services, fees and fines and rental income in the Administered Schedule of Comprehensive Income.

2.2D

Other revenue was lower than budgeted due to contributions for sponsored works being lower than expected.

Other revenue in the Administered Schedule of Comprehensive Income.

4.2A

The value of total non-financial assets was less than budget due to depreciation being higher following the capitalsation of assets held in WIP.

Land, buildings, property, plant and equipment in the Administered Schedule of Assets and Liabilities.

4.3A

A higher number of payables relating to operational contracts were accrued at year end.

Suppliers in the Administered Schedule of Comprehensive Income.

4.3B

Unearned income was higher than expected due to new lease agreements.

Other Payables in the Administered Schedule of Assets and Liabilities.