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 2019–20 financial statements. A summary of our financial performance follows.

The Office operated within available resources in 2019–20 and ended the year with a surplus of $4,866,087. The summary of financial performance is based on the original budget figures as published in the Portfolio Budget Statements 2019–20.

The increase in appropriation funding levels in 2019–20 reflected the Office’s planned growth from the previously budgeted 42 to 55 staff during the year. Other Income remained constant from the previous year.

In relation to expenditure, the most significant variance against original budget figures related to employee expenses which were $4,341,752 underspent due largely to recruitment on boarding 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 mainly due to delays in the deployment of ICT systems and completion of intangible assets. These delays were partly attributable to the impact of the COVID-19 pandemic on priorities and resourcing.

Total equity increased from $21,821,168 in 2018–19 to $29,170,255. Movements in equity included a $4,866,087 increase in retained surplus. Contributed Equity also increased from $12,371,167 in 2018–19 to $14,854,167 with capital funding totalling $2,483,000 in the current year.

The following tables show:

Figure 4.1 – Entity Resource Statement and Resource for Outcomes 2019–20

Figure 4.2 – Expenses and Resources for Outcome 1.

OIGIS has one outcome and one program.

Figure 4.1: Entity resource statement and resources for outcomes 2019-20

Figure 4.2: Expenses for Outcome 1

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 2019–20 included:

• A $2,714,000 increase in Revenue from Government.
• A $562,115 increase in employee expenses arising largely due to recruitment activity associated with the expansion of the Office.
• A $188,246 decrease in supplier expenses. This decrease partly reflects the higher than usual expenditure in the previous year associated with the relocation of the Office and associated construction expenditure. The COVID-19 pandemic also impacted on expense items such as travel. Increases in expenditure included $252,184 in ICT expenses, $44,831 in legal expenses and $30,045 increase in staff training expenses. These were offset by decreases including $343,926 in consultancy expenses, $48,973 in minor equipment purchases, $18,675 in travel expenses and $26,304 associated with staff accommodation placements which ceased during the year.
• A $624,998 increase in depreciation expenses representing the full year expense related to assets capitalised during the final two quarters of the last financial year.

Figure 4.3: Trends in finance