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Financial reporting

In 2019–20 the Office recorded an operating surplus of $0.7 million, compared to operating surplus of $1.4 million (excluding depreciation, amortisation and write down of assets, and including principal payments on leases) in 2018–19. The 2019–20 operating surplus was broadly consistent with the balanced outcome estimate reported in the 2019–20 Portfolio Budget Statements.

Expenses

Total expenses increased from $43 million in 2018–19 to $48 million in 2019–20. This increase was mainly due to the additional contractor and support costs incurred for the measure improving integrity of the Vocational and Education Training System.

Income

Appropriation revenue increased from $39.1 million in 2018–19 to $42.4 million in 2019–20, an increase of $3.3 million. This was due to the additional funding received for:

  • the VET Student Loan Ombudsman function, including the new measure, net increase of $4.9 million
  • the NDIS Participant Service Guarantee—monitoring timeline performance, an increase of $0.5 million.

This was offset by decreased funding for:

  • the Private Health Insurance Ombudsman ($0.8 million)
  • the Defence Force Ombudsman ($0.8 million).

Rendering of services revenue of $4.2 million is consistent with the 2018–19 outcome. This mainly consists of revenue received from the ACT Government ($3.0 million) and the Department of Foreign Affairs and Trade ($0.7 million).

Assets

Total assets increased by $10.2 million, mainly due to:

  • implementation of AASB 16 Leases, recognition of Right of Use asset (net increase $10.7 million)
  • acquisition of leasehold improvements, plant and equipment and computer software classes, ($1.0 million), which was offset by depreciation and amortisation ($1.6 million)
  • revaluation of the asset classes leasehold improvements and plant and equipment (net increase of $0.1 million).

The Office acquired $1.0 million in new assets in 2019–20, funded through the departmental capital appropriation and the operating surplus. This included new ICT infrastructure, purchase of new software, refurbishment of offices and enhancements to core existing ICT systems. Assets were checked for impairment, a stock take undertaken during the year to ensure completeness and asset classes leasehold improvements and plant and equipment were revalued as at the 30 June 2020. Assets are maintained and kept in good working order by the Office.

Liabilities

Total liabilities increased by $4.6 million, which was mainly due to:

  • implementation of AASB 16 Leases, recognition of leases as a liability (net increase $9.4 million)
  • trade creditors reduction ($5.0 million)
  • employee provisions increase ($0.2 million).