Schedules of Administered Items Budget Variance Commentary

for the period ended 30 June 2020

Explanations of major variances¹

Affected line items (and schedule)

Suppliers

The financial statements recognise the cost of medal inventory as an expense once the medal is awarded and issued. The budget recognises supplier expense as the total cash funding available to the Office for medals and other related purchases. The under budget variance of $216k (14%) represents fewer medals awarded and issued during the financial year compared to actual purchases. This is attributed to fewer investiture ceremonies being held as a result of COVID-19 restrictions.

The favourable budget variance of $61k relating to suppliers payable is due to the timing of invoices received for payment during the end of financial year. The budget was formed at the beginning of the financial year where year-end invoices are not yet known.

Supplier expense (Administered Schedule of Comprehensive Income), Inventories (Administered Schedule of Assets and Liabilities), Operating cash used (Cash Flow Statement)
Suppliers Payable (Administered Schedule of Financial Position), Operating cash used (Cash Flow Statement)

Governor-General's salary

The variance ($70k, 16%) is attributed to an increase to the Governor-General's salary as set-out in the Governor-General Act 1974. The salary is set with each incoming Governor-General via an amendment to this Act.

This increase occurred after the original budget estimates were formed.

Governor-General's salary (Administered Schedule of Comprehensive Income), Operating cash used (Cash Flow Statement)

Depreciation and amortisation

Depreciation and amortisation exceeded budget ($141k, 9%) because the 2019-20 budget was formed prior to the end of last financial year and as such did not include additions and WIP capitalisation from the time of budget to year end.

Depreciation and amortisation (Administered Schedule of Comprehensive Income), Property, plant and equipment (Administered Schedule of Assets and Liabilities)

Write-down and impairment of assets

The variance to budget is attributed to medals relating to Knights and Dames which are no longer awarded and have been written-off.

Write-down and impairment of assets (Administered Schedule of Comprehensive Income), Inventories (Administered Schedule of Assets and Liabilities)

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Receivables

The variance is due to large invoices processed during year end which in effect brought about more GST receivable from the ATO.

Receivables (Administered Schedule of Assets and Liabilities)

Non-Financial Assets

The favourable variance of $8.9m (6%) in total non-financial assets is predominantly related to an increase in the fair value of land and buildings as a result of a revaluation conducted by JLL at the end of last financial year.

Non-financial assets (Administered Schedule of Assets and Liabilities), Other comprehensive income (Administered Schedule of Other Comprehensive Income)