27. Budgetary information

a) Comprehensive Operating Statement

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

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

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