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Part 4.1: Financial summary

SUMMARY OF IGIS FINANCIAL PERFORMANCE AND RESOURCES FOR OUTCOMES (PGPA ACT)

The office received an unqualified audit report from the Australian National Audit Office for its 2018-19 financial statements. A summary of our financial performance follows.

The office operated within available resources in 2018-19 and ended the year with a surplus of $3,152,838. The summary of financial performance is based on the original budget figures as published in the Portfolio Budget Statements 2018-19.

Appropriation funding levels in 2018-19 increased significantly with the office being funded to increase from 16 to 42 staff during the year. Other Income decreased by $136,384 largely due to a decrease in resources received free of charge by the office with the office commencing payment for property expenses. The decrease in Other Income was matched by a corresponding decrease in Supplier Expenses so there was no impact on the overall financial outcome.

In relation to expenditure, the most significant variance against original budget figures related to employee expenses which were $2,807,867 underspent due largely to recruitment onboarding delays associated with the lengthy security clearance process, together with staff turnover. As a result security clearance assessment fees were also significantly below budget. Finally, depreciation expenses were significantly below budget due to delays in the relocation of the office and the completion of associated leasehold improvements.

Total equity increased from $18,406,446 in 2017-18 to $21,821,168 in 2018-19. Movements in equity included a $3,152,838 increase in retained surplus. Contributed Equity also increased from $12,109,283 in 2017-18 to $12,371,167 in 2018-19 with capital funding totalling $275,000 in the current year.

The following tables show:

Figure 4.1 – Entity Resource Statement and Resource for Outcomes 2018-19.

Figure 4.2 – Expenses and Resources for Outcome 1.

Figure 4.1 Entity resource statement for 2018-19

Actual available appropriation for
2018-19
$’000

(a)

Payments made 2018-19
$’000

(b)

Balance remaining
2018-19
$’000

(a) – (b)

Ordinary Annual Services

Departmental Appropriation

Prior year departmental appropriation

19 310

11 109

8 201

Departmental appropriation

9 917

1 032

8 885

S74 Relevant Agency Receipts

1 160

-

1 160

Total

30 387

12 141

18 246

Administered expenses

-

-

-

Total

-

-

-

Total ordinary annual services A

30 387

12 141

18 246

Other services

Departmental non-operating

-

-

-

Total

-

-

-

Total other services B

-

-

-

Total available annual appropriations

30 387

12 141

18 246

Special appropriations

-

-

-

Total special appropriations C

-

-

-

Special accounts

-

-

-

Total special accounts D

-

-

-

Total resourcing
A + B + C + D

30 387

12 141

18 246

Less appropriations drawn from annual or special appropriations above and credited to special accounts and/or payments to corporate entities through annual appropriations

-

-

-

Total net resourcing and payments

for agency

30 387

12 141

18 246

.

Figure 4.2 Expenses for Outcome 1

Outcome 1: Independent assurance for the Prime Minister, senior ministers and Parliament as to whether Australia’s intelligence and security agencies act legally and with propriety by inspecting, inquiring into and reporting on their activities

Budget
2018-19
$’000

(a)

Actual expenses
2018-19
$’000

(b)

Variation
2018-19
$’000

(a) – (b)

Program 1.1: Office of the Inspector-General of Intelligence and Security

Departmental expenses

Departmental appropriation1

9 642

9 642

-

Special appropriations

-

-

-

Special Accounts

-

-

-

Expenses not requiring appropriation in

the Budget year

1 851

(3 080)

4 931

Total for Program 1.1

11 493

6 562

4 931

Outcome 1 Totals by appropriation type

Departmental expenses

Departmental appropriation1

9 642

9 642

-

Special appropriations

-

-

-

Special Accounts

-

-

-

Expenses not requiring appropriation in

the Budget year

1 851

(3 080)

4 931

Total expenses for Outcome 1

11 493

6 562

4 931

Budget

2018-19

Actual

2018-19

Average Staffing Level (number)

42

26

16

1 Departmental appropriation combines ordinary annual services (Appropriation Act Nos 1, 3 and 5) and retained revenue receipts under section 74 of the Public Governance, Performance and Accountability Act 2013.

TRENDS IN FINANCE
Significant changes to the finances of the office during 2018-19 included:

  • A $2,823,000 increase in Revenue from Government.
  • A $1,599,579 increase in employee expenses arising largely due to recruitment activity associated with the expansion of the office.
  • A $1,345,156 increase in supplier expenses. Increases in expenditure included $587,801 in occupancy expenses, $414,942 in consultancy expenses, $88,045 in HR support fees, $97,002 in ICT expenses, $58,323 in minor equipment purchases, $62,680 in travel and $33,441 in security vetting expenses.
  • A $5,589,642 increase in Property, Plant and Equipment following the relocation of the office with associated leasehold improvements, new software licensing arrangements and office furniture expenditure. The increased capital expenditure was offset by a $253,174 increase in depreciation expenses.
  • A $479,009 increase in Employee Provisions due to the increasing staff numbers associated with the expansion of the office.
Figure 4.3: Trends in finance

2018-19 OUTCOME 1 $

2017-18 OUTCOME 1 $

CHANGE FROM PREVIOUS YEAR

Revenue from Government

9,642,000

6,819,000

+41.4%

Other Income

72,470

208,854

-65.3%

TOTAL INCOME

9,714,470

7,027,854

Employee expenses

4,444,133

2,844,554

+56%

Supplier expenses

1,819,509

474,353

+383.5%

Other expenses

297,990

44,816

+664.9%

TOTAL EXPENSES

6,561,632

3,363,723

OPERATING RESULT

3,152,838

3,664,131

Financial assets

A

18,437,104

19,476,805

-5.4%

Non-financial assets

B

5,738,199

56,468

+10,162%

Liabilities

C

2,354,135

1,126,827

+208.9%

NET ASSETS = A + B - C

21,821,168

18,406,446