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Notes - 8.2 Explanations of Major Budget Variances (Cont.)

8.2 Explanations of Major Budget Variances (Cont.)

Departmental Major Budget Variances (Cont.)

for the period ending 30 June 2020

Note

Explanation of major variances

Affected line item and statement

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

3.2B

The value of non-financial assets was lower than budgeted overall, mainly due to building activity lower than budgeted due to project delays. Intangibles was higher than budget mainly due to the investment in the Asset Management System, where there was additional complexity integrating the operational and financial asset registers.

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

3.3A

Supplier payables was lower than budgeted due to fewer operational contracts being accrued at year end.

Suppliers in the Statement of Financial Position.

3.4A

The lease liability associated with Right-of-Use assets was not budgeted for.

Leases in the Statement of Financial Position.

6.1A

Employee provisions were higher than budgeted due to staff commencing with large leave liabilities, staff not taking as much leave as predicted and parameter adjustments issued by the Department of Finance (used in the short cut methodology to calculate the long service leave provisions).

Employee provisions in the Statement of Financial Position.

Administered Major Budget Variances

for the period ended 30 June 2020

Note

Explanation of major variances

Affected line item and statement

2.1A

Increased costs in consultants and also new Managing Contractor arrangements

Suppliers in the Administered Statement of Comprehensive Income

4.2A

Increase in depreciation and amortisation related to the capitalisation of projects in late 2018-19, not known at the time of the 2019-20 Budget submission.

Depreciation and amortisation in the Administered Statement of Comprehensive Income.

2.1B

No budget provided. Impairment includes the write-off of doubtful debts.

Impairment loss on financial instruments in the Administered Statement of Comprehensive Income.