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.

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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.