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Note 9 : Explanations of Major Budget Variances

Budget Variance

Note 9 : Explanations of Major Budget Variances

Variances are considered to be ‘major’ if they are core to the Commission's activities and based on the following criteria:

  the variance between budget and actual is greater than +/- 10% of the original budget for a line item; and

  an item is below this threshold but is considered important for the reader’s understanding or is relevant to an assessment of the discharge of accountability and to an analysis of the Commission's performance.

The budget is not audited.

Budget Variance Explanation

Affected statements and line items

In 2019-20, the Commission was tasked with implementing the National Workplace Initiative project. The Commission is in the process of adjusting the budget to align with the work program.

The Commission also received additional Departmental funding through the Portfolio Additional Estimates Statements budget process in late 2019-20 for additional projects which will be expended in 2020-21.

During the period, the Commission adopted AASB16 which became effective on 1 July 2019. This new standard

has replaced AASB 117 Leases. Account balances in the Statement of Financial Position and Statement of Comprehensive Income have been updated to incorporate this change.

PBS doesn’t list Section 74 receipts transferred to the Official Public Account (OPA) as a separate line item on the facial budget statement.

Statement of Comprehensive Income:

- Employee benefits

- Suppliers

- Depreciation and amortisation

- Revenue from Government

Statement of Financial Position:

- Cash & cash equivalents

- Trade and other receivables

- Buildings

- Leasehold improvements

- Plant & equipments

- Prepayments

- Suppliers

- Other payables

- Employee provisions

- Computer software

Cash Flow Statement:

- Appropriations

- Rendering of services

- Employees

- Suppliers

- Section 74 receipts transferred to the OPA

- Purchase of property, plant and equipment

- Appropriations - Departmental capital budget - Bill 1

The Commission had to place planned work on hold as a result of the COVID-19 pandemic which has resulted in funds not being spent in the 2019-20 financial year. The Commission's resources were prioritised to deliver Government priorities for mental health and suicide prevention during the pandemic, with consultation and engagment on a number of projects not being able to progress as planned.

Administered Schedule of Comprehensive Income:

- Suppliers

Administered Schedule of Assets and Liabilities:

- Trade and other receivables

- Suppliers

Administered Cash Flow Statement:

- Suppliers

- Appropriations

Administered Reconciliation Schedule:

- Expenses

- Transfer from Australian Government

- Transfer to OPA