27. Budgetary information

a) Comprehensive Operating Statement

Comprehensive Operating Statement 2018-19
Actual
$000
2018-19
Original Budget
$000
Variance
$000
Note
INCOME    
Grants and subsidies revenue     
Current 7,429 1,183 6,246 1
Capital 50 0 50 2
Appropriation     
Output 69,419 68,484 935 3
Commonwealth 2,991 4,816 (1,825) 4
Sales of goods and services 5,833 5,436 397 5
Goods and services received free of charge 4,243 3,781 462 6
Gain on disposal of assets 100 0 100 7
Other income 3,891 2,019 1,872 8
TOTAL INCOME93,95685,7198,237 
     
EXPENSES    
Employee expenses 57,823 54,881 2,942 9
Administrative expenses     
Purchases of goods and services 26,992 19,980 7,012 10
Repairs and maintenance 4,203 3,814 389 11
Depreciation and amortisation 4,134 4,273 (139)  
Other administrative expenses 4,333 3,781 552 12
Grants and subsidies expenses     
Current 3,282 3,243 39  
Capital 15 0 15  
Interest expense 12 0 12  
TOTAL EXPENSES100,79489,97210,822 
     
NET SURPLUS/(DEFICIT)(6,838)(4,253)(2,585) 
     
OTHER COMPREHENSIVE INCOME    
Items that will not be reclassified to net surplus/deficit     
Asset revaluation reserve 0 0 0  
TOTAL OTHER COMPREHENSIVE INCOME000 
     
COMPREHENSIVE RESULT(6,838)(4,253)(2,585) 

Notes:

Variances greater than 10 per cent or $0.5 million are recognised as significant and require explanation.

  1. The variance on current grant income relates primarily to the discovery of the citrus canker disease in 2018, which prompted a national cost-sharing response with the increase being the contributions from other jurisdictions.
  2. An agreement that is part of the Priority Pest and Disease Planning, Surveillance and Response Program for the purchase of two diagnostic assaying instruments to assist with the citrus canker response.
  3. Output appropriation received was higher than original budget due to an Infrastructure Stimulus program increase, a Treasurer’s Advance for regulation of the onshore petroleum industry, reductions relating to voluntary redundancy targets and reduction from transfers to capital appropriation.
  4. The department received less than the anticipated original budget forecasted for national partnership agreements relating to the rehabilitation of the former Rum Jungle Mine Site and the National Browsing Ant Eradication Program (NBAEP). This was offset by an agreement formalised late in the financial year for which the department received funds for the On-Farm Emergency Water Rebate Scheme.
  5. Goods and services revenue variance relates primarily to the airborne magnetic and radiometric survey with laboratory and regulatory fees comprising the remaining difference.
  6. Higher than original forecasted notional goods and services received free of charge is due to new leased office accommodations for the Fisheries Division, temporary leased office accommodation within Alice Plaza occurring during the year and transactional processing provided by the Department of Corporate and Information Services.
  7. The department disposed of obsolete farm plant and equipment.
  8. New agreements or revised revenue estimations during year reflected in the department achieving over original budget due to externally funded projects, other miscellaneous income includes reimbursements such as prior year taxation refunds or department coordinated services for industry.
  9. Personnel is higher than original budget due primarily to the externally funded Citrus Canker Response Program offset by the department’s recruitment strategy implementation to monitor the employee staffing cap.
  10. Purchase of goods and services expenditure for the externally funded cost shared Citrus Canker Response Program was greater than original budget; other externally funded livestock research programs and the airborne magnetic and radiometric survey were similarly greater than original budget. National partnership funded former Rum Jungle and NBAEP was under original budget. Expenditure in relation to appropriated funds was over original estimate due to cost for the implementation of regulatory framework of onshore gas exploration, geophysical acquisition surveys, contributions to national cost shared pest and disease incursion responses, legal expenses, biosecurity expenses, and Berrimah Farm redevelopment costs.
  11. Repairs and maintenance was higher than original estimate due to works completed on research farms and works that do not meet the capitalisation criteria resulting in a non-cash accounting expenditure treatment.
  12. Recognition of the provision for doubtful debts and notional goods and services free of charged account for the increase to original budget.

b) Balance Sheet

Balance Sheet 2018-19
Actual
$000
2018-19
Original Budget
$000
Variance
$000
Note
ASSETS    
Current assets    
Cash and deposits 71,482 41,073 30,409 1
Receivables 5,716 1,854 3,862 2
Advances and investments 3,332 5,317 (1,985) 3
Prepayments 432 571 (139) 4
Total current assets80,96248,81532,147 
     
Non-current assets    
Property, plant and equipment 82,969 75,320 7,649 5
Total non-current assets82,96975,3207,649 
     
TOTAL ASSETS163,931124,13539,796 
     
LIABILITIES    
Current liabilities    
Deposits held 67,014 41,439 25,575 6
Payables 2,378 1,994 384 7
Borrowings and advances 3,337 5,317 (1,980) 8
Provisions 7,862 7,959 (97)  
Other liabilities 3,808 2,702 1,106 9
Total current liabilities84,39959,41124,988 
     
Non-current liabilities    
Borrowings and advances 359 0 359 8
Total non-current liabilities3590359 
     
TOTAL LIABILITIES84,75859,41125,347 
     
NET ASSETS79,17364,72414,449 
     
EQUITY    
Capital 96,275 84,830 11,445 10
Reserves 44,058 40,235 3,823 11
Accumulated funds (61,160) (60,341) (819) 12
TOTAL EQUITY79,17364,72414,449 

Notes:

Variances greater than 10 per cent or $0.5 million are recognised as significant and require explanation.

  1. The department achieved greater than estimated original cash forecast due mainly to AOTA monies, which includes mining securities, cash securities and fishing industry research funds, and a cash injection of $8 million. Actual cash at the end of the 2017-18 financial year was approximately $17 million higher than the opening cash forecast and was revised during the year.
  2. Receivables was higher than original budget, which was subsequently revised to $2.721 million, due to debts relating to national cost-shared response programs owed from other jurisdictions in conjunction with other externally funded
    research projects.
  3. Advances and investments was lower to original budget due to repayments of the Farm Finance Concessional Loan Scheme.
  4. The prepayments original budget was revised down to $0.471 million with actual 2018-19 prepayments on par with the previous year.
  5. Property, plant and equipment original budget was revised to $82.979 million during the year. Variance is due to work in progress transferred in during the year relating to office accommodation fit-outs, containment net, accommodation demountables and other building structures at research farms offset by depreciation or amortisation of assets.
  6. Deposits held was revised up to $56,863 million during the financial year. The variation is due to higher than anticipated cash received in the AOTA for mining securities, cash securities and fishing industry research funds.
  7. The estimate for payables was revised up to $2.251 million during the financial year. Variance to revised estimated relates to higher than anticipated accrued expenses.
  8. Borrowing and advances was revised during the year to $5.701 million. Two Farm Finance Concessional Loan Scheme repayments occurred not anticipated at time of original estimate and contributed to the variance.
  9. The estimate for other liabilities was revised up during the year to $3.318 million with the variance due to higher than anticipated unearned income from external funding bodies for research projects.
  10. The estimate for the opening balance to capital was adjusted to $85.436 million during the financial year to reflect the 2017-18 closing balance. The revised variance to actual is attributed to a cash injection and works transferred in during the year
  11. The estimate for reserves was adjusted to $44.058 million during the year to reflect the 2017-18 closing balance.
  12. The estimate for accumulated funds was revised up to $54.322 million during the year to reflect the 2017-18 closing balance and anticipated deficit of $7.167 million. Variance to the revised estimate is due to timing of expenses for externally funded
    projects and other significant initiatives committed in 2018-19.

c) Cash Flow Statement

Cash Flow Statement 2018-19
Actual
$000
2018-19
Original budget
$000
Variance
$000
Note
CASH FLOWS FROM OPERATING ACTIVITIES    
Operating receipts    
Grants and subsidies received     
Current 7,429 1,183 6,246 1
Capital 50 0 50 2
Appropriation     
Output 69,419 68,484 935 3
Commonwealth 2,991 4,816 (1,825) 4
Receipts from sales of goods and services 9,844 7,455 2,389 5
Total operating receipts89,73381,9387,795 
     
Operating payments    
Payments to employees (57,629) (54,881) (2,748) 6
Payments for goods and services (33,576) (23,794) (9,782) 7
Grants and subsidies paid     
Current (3,183) (3,243) 60  
Capital (15) 0 (15)  
Interest paid (12) 0 (12)  
Total  operating payments(94,415)(81,918)(12,497) 
Net  cash from/(used in) operating activities(4,682)20(4,702) 
     
CASH FLOWS FROM INVESTING ACTIVITIES    
Investing receipts    
Proceeds from asset sales 71 6 65 8
Repayment of advances 0 0 0  
Total  investing receipts71665 
Investing payments    
Purchase of assets (387) (271) (116) 9
Advances and investing payments 0 0 0  
Total  investing payments(387)(271)(116) 
Net  cash from/(used in) investing activities(316)(265)(51) 
     
CASH FLOWS FROM FINANCING ACTIVITIES    
Financing receipts    
Proceeds of borrowings 0 0 0  
Deposits received 10,151 0 10,151 10
Equity injections     
Capital appropriation 135 251 (116) 11
Other equity injections 8,000 0 8,000  
Total  financing receipts18,28625118,035 
     
Financing payments    
Repayment of borrowings 0 0 0  
Finance lease payments (5) 0 (5)  
Total  financing payments(5)0(5) 
Net  cash from/(used in) financing activities18,28125118,030 
     
Net increase/(decrease) in cash held 13,283 6 13,277  
Cash at beginning of financial year 58,199 41,067 17,132  
CASH  AT END OF FINANCIAL YEAR71,48241,07330,409 

Notes:

Variances greater than 10 per cent or $0.5 million are recognised as significant and require explanation.

  1. The variance on current grant received relates primarily to the discovery of the citrus canker disease in 2018, which prompted a national cost-sharing response with the increase being the contributions from other jurisdictions
  2. An agreement that is part of the Priority Pest and Disease Planning, Surveillance and Response Program for the purchase of two diagnostic assaying instruments to assist with the citrus canker response.
  3. Output appropriation received was higher than original budget due to an Infrastructure Stimulus program increase, a Treasurer’s Advance for regulation of the onshore petroleum industry, reductions relating to voluntary redundancy targets and reduction from transfers to capital appropriation.
  4. The department received less than the anticipated original budget forecasted for national partnership agreements relating to the rehabilitation of the former Rum Jungle mine site and the NBAEP. This was offset by an agreement formalised late in the financial year for which the department received funds for the On-Farm Emergency Water Rebate Scheme.
  5. Higher than forecast receipts from sales of goods and services comprises externally funded research projects, prior year refunds, laboratory and regulatory fees.
  6. Payments to employees is higher than original budget due primarily to the externally funded Citrus Canker Response Program offset by the department’s recruitment strategy implementation to monitor the employee staffing cap.
  7. Payment for goods and services expenditure is greater than original estimate due to repairs and maintenance requirements, externally funded cost-shared Citrus Canker Response Program, new or revised externally funded research programs, airborne magnetic and radiometric survey, implementation of regulatory framework of onshore gas exploration, geophysical acquisition surveys, contributions to national cost-shared
    pest and disease incursion responses, legal expenses, biosecurity expenses and Berrimah Farm redevelopment costs. These expenses are offset by national partnership-funded former Rum Jungle mine site and NBAEP underachieving to original budget forecast.
  8. Proceeds from asset sales is from the disposal of obsolete farm plant and equipment.
  9. Purchases of assets were higher than the original estimate due to timing of purchases where the procurement process commenced prior to 30 June 2018 with receipt of goods occurring in the first quarter of 2018-19. Sales from obsolete
    farm plant and equipment generated funds for items purchased additional to the original estimates.
  10. The variance against deposits received is the result of higher than anticipated cash received into the AOTA relating to mining securities, cash securities and fishing industry research funds.
  11. Capital appropriation received was lower than the original estimate primarily as a result of transferring appropriation between years to cover the purchase of an electro-fishing vessel.

ANNUAL REPORT 2018-19 - DEPARTMENT OF PRIMARY INDUSTRY AND RESOURCES


Last updated: 23 October 2019

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