Go to top of page

Statement of Financial Position Budget Variance Commentary

Statement of Financial Position Budget Variance Commentary

for the period ended 30 June 2020

Explanations of major variances¹

Affected line items (and statement)

Trade and other receivables

The higher receivable balance of $2.124m (64%) against the budget is predominantly related to a higher appropriations receivable balance resulting from Section 74 receipts ($983k). The Office also received $509k of reallocated funding during PAES which was not fully drawn down at year end. There was also $161k of GST receivable as at the end of the financial year.

Trade and other receivables (Statement of Financial Position), Operating cash received (Cash Flow Statement), Appropriations received (Cash Flow Statement), Section 74 receipts transferred to OPA (Cash Flow Statement)

Non-financial assets

Property, plant and equipment was under budget by $192k (11%) predominately from a delay in the Office's IT Telephony project. This delay resulted in less project-related purchases being made during the financial year.

Intangible assets exceeded the budget by $122k (16%). This is primarily due to the completion of the Honours Online Nomination System. The completion works undertaken during this financial year included unfinished work brought forward from the previous financial year which resulted in a higher spend.

Other comprehensive income (Statement of Comprehensive Income), Non-financial assets (Statement of Financial Position), Revaluation reserve (Statement of Financial Position), Investing cash used (Cash Flow Statement)

Payables

Total payables exceeded budget by $1.048m (172%) predominantly as a result of outstanding invoices ($716k) received subsequent to the final payment run on 26 June 2020. Further to this, $121k of the variance is related to the Memorandum of Understanding (MoU) which the Office has in place with the Department of Prime Minister and Cabinet (PM&C) in respect of Kirribilli House grounds maintenance.

Payables (Statement of Financial Position), Operating cash used (Cash Flow Statement)

Provisions

Employee provisions exceeded budget by $491k (23%) due to a significant drop in the bond rate from 1.30% to 0.90%.

In addition, the Office's staff profile which includes longer serving Government employees has contributed to a higher liability balance.

Employee benefits expense (Statement of Comprehensive Income), Employee provisions (Statement of Financial Position)

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.