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Statement of Comprehensive Income Budget Variance Commentary

Statement of Comprehensive Income Budget Variance Commentary

for the period ended 30 June 2020

Explanations of major variances¹

Affected line items (and statement)

Employee expenses

Employee expenses exceeded the budget by $1.066m (14%). This movement has been impacted by the recognition of secondment arrangement services ($175k) received free of charge under AASB 1058. In addition, $158k of the total increase is attributed to a significant drop in the bond rate from 1.30% to 0.90% affecting long service leave expenses.


An additional impact to the variance is due to the 2019-20 budget, which was formed prior to the end of last financial year, being geared towards lower expected employee expenses. This has since been adjusted in the Portfolio Additional Estimates Statements (PAES).


Employee expenses in the cash flow statement exceeded the budget by $785k (10%) as a result of the above.

Employee benefits expense (Statement of Comprehensive Income), Employee provisions (Statement of Financial Position), Operating cash used - employees (Cash Flow Statement)

Supplier expenses

Supplier expenses were under budget by $691k (11%). This is attributed to reductions in travel and events-related household expenditure in the final quarter of the financial year due to the impact of COVID-19 restrictions.


In addition, there was a significant reduction in the Office's Comcare premium. This is attributed to an improved early intervention program resulting in improved staff recovery.

Suppliers expense (Statement of Comprehensive Income), Suppliers payable (Statement of Financial Position)

Depreciation and amortisation expense

Depreciation expenses were over budget by $168k (43%) as a result of new assets being purchased during the financial year, including software, computer hardware, multiple furniture items, garden equipment, and office equipment.

Depreciation and amortisation (Statement of Comprehensive Income), Property, plant and equipment (Statement of Financial Position)

Own source revenue

Resources received free of charge exceeded the budget by $191k (278%). This is primarily attributed to the recognition of secondment arrangement services received free of charge by the Office under AASB 1058. The secondment services received were in support of the Governor-General's program. The Office would otherwise have paid for the services if not provided voluntarily.

Own source income (Statement of Comprehensive Income), Operating cash received - other (Cash Flow Statement)

1. Variances are considered to be ‘major’ based on the following criteria:

  • the variance between budget and actual is greater than 10%; and
  • the variance between budget and actual is greater than 2% of the relevant category (Income, Expenses and Equity totals); or
  • an item 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 performance of an entity.