2004 - 2005 Portfolio Budget Statements

PART C - BUDGET STATEMENTS

Section 1: Appropriations and budget measures

The planned outcome for the Department of the Senate is effective provision
of services to support the functioning of the Senate as a House of the
Commonwealth Parliament.

The department contributes to the achievement of this outcome through the
following five output groups:

• Output Group 1 Clerks Office
  
  
• Output Group 2 Table Office
  
  
• Output Group 3 Procedure Office
  
  
• Output Group 4 Committee Office
  
  
• Output Group 5 Black Rods Office

The five Offices/Output Groups are supported by corporate services units.
The costs of corporate services are apportioned as a component of each of
the five output groups price of outputs.

Appropriations

The total appropriation for the department in the 2004-05 Budget is $42.7
million (compared with $43.1 million in 2003-04).

Table 1.1 (at page 15) shows total appropriations for the Department of the
Senate. The department receives annual departmental, annual administered
and special administered appropriations.

The departments price of outputs is $34.7 million, of which 84.8 per cent
($29.4 million) is contributed from the Appropriation (Parliamentary
Departments) Bill. The balance of $5.3 million represents revenue from
other sources and is mainly accounted for by:

• resources received free of charge (e.g. office space); and
  
• sales of goods and services (e.g. publications, training programs and
  security at functions).

The amount of $29.4 million contributed from the Appropriation
(Parliamentary Departments) Bill compares to $30.3 million contributed in
2003-04.

This decrease is due to the savings measure enforced on the department by
government in the 2003-04 budget to offset the costs of enhanced security
for Parliament House. This represents a cost to the department in 2004-05
of $1.2 million rising to $1.3 million in 2006-07. The savings measure was
to be achieved by the implementation of the Podger review recommendation
that the joint parliamentary departments be amalgamated. The department
does not accept the legitimacy of this measure, given that it has no access to
or control over any savings that may be achieved by the amalgamation.

For the 2004-05 budget, government has provided some relief to the
department by appropriating an additional $1.3 million to the Department
of Parliamentary Services (DPS) as part of a package of security related
budget measures.In turn, DPS will be in a position to reduce the charge to
each of the chamber departments for security services by $0.65 million for
2004-05 only.

During the 2003-04 additional estimates process, an additional amount of
$24,000 was appropriated to the department for the 2003-04 financial year.
This amount represented a partial supplementation of recent price increases
in the departments Comcover general insurance premium, which has seen
the premium increase from $38,500 in 2001-02 to $129,284 in 2003-04.
Portfolio Additional Estimates Statements were not prepared for 2003-04
on the proviso that this amount would be disclosed in the 2004-05 PBS.
The same amount of $24,000 has been added to the departments annual
appropriation for 2004-05 only. This measure applies to all Commonwealth
agencies.

In the 2001-02 budget, an amount of $0.6 million was included in the
2004-05 forward year. This related to expected commitments for
employee entitlements.

Apart from the items mentioned in the preceding paragraphs, no budget
measures affect the department in 2004-05.

Table 1.2 summarises the departments revenue from independent sources
for 2004-05.

Table 1.3 summarises the departments special appropriations for 2004-05.
Both of these tables are at page 16.

Department of the Senate Appropriations 2004-05

1. Revenue from other sources includes resources received free of charge
   and miscellaneous receipts.
   
   
2. Refer to the Budgeted Statement of Financial Performance for
   application of agency revenue.
   
   
3. Estimated expenses from individual Special Appropriations are shown
   in Table 1.3.

Department of the Senate Revenue 2004-05
Table 1.2: Revenue from independent sources (000)

Department of the Senate Special Appropriations 2004-05
Table 1.3: Estimates of expenses from special appropriations (000)

The legislation establishing these special appropriations is administered by
the Department of Finance and Administration and the Department of
Employment and Workplace Relations. Arrangements have been entered
into with these departments to allow the Department of the Senate to draw
upon these appropriations.

The department has two special accounts: Other Trust Monies and Services
for Other Government and non-Agency Bodies. Both of these accounts have
a nil balance as at May 2004 and no transactions are planned for the
remainder of the financial year and in 2004-05.

Section 2: Outcome and outputs information

Outcomes and output groups

The map on the following page shows the relationship between the planned
outcome and the contributing outputs for the Department of the Senate.
Financial details for the planned outcome by outputs and output groups
appear in Table 2.1 (Total Resources for Outcome 1) while non-financial
information appears in Table 2.2 (Performance Information for Outcome 1).

Output cost attribution

The cost of corporate support and other corporate overheads is allocated
across all output groups on the basis of average staffing levels, with the
exception of output 5.2 (Security), which is calculated on a direct cost basis.

Administration of parliamentary security

The transfer of security staff from the two chamber departments to the
Joint House Department was completed in October 2003.

On 18 August 2003, the Senate agreed to a resolution abolishing the Joint
House Department, the Department of the Parliamentary Library and the
Department of the Parliamentary Reporting Staff with effect from 31 January
2004, and establishing a new service department, the Department of the
Parliamentary Services (DPS), from 1 February 2004 to fulfil all the functions
of the former joint departments.

A Memorandum of Understanding between the Joint House Department and
the two chamber departments for the provision of security services was
signed on 5 September 2003. The Department of the Senate continues to
show a 50 per cent share of the cost of security in Parliament House as an
output of the department. The security infrastructure is owned jointly by the
two chamber departments, but minor administrative assets have been
transferred to DPS.

Changes to outcomes and outputs

There has been no change to the departments outcome or outputs.

Trends in Resourcing

Chart 2 shows the departmental appropriation at $29.4 million in 2004-05,
down from $30.3 million in 2003-04. The chart highlights a steady decline
in appropriation that will occur from 2003-04 to 2005-06, at which stage
the department will be back to the funding levels of 2000-01 but with the
added responsibility of having to fund enhanced security at Parliament
House. Without a change in the level of security required by government
at Parliament House, a willingness on the part of government to fund the
additional security it demands, or a reversal of the savings measure
stipulated by government from 2005-06, the department predicts a funding
crisis from 2005-06 onwards.

Chart 2: Trends in departmental appropriations ('000)

The decrease in appropriation in 2004-05 is due to the savings measure
disclosed in the 2003-04 budget of $1.2 million. As discussed at page
13, in 2004-05 the savings measure will be partly ameliorated by a
reduced charge from DPS of $0.65m. The chamber departments will
be working cooperatively with DPS to reduce the cost of security within
Parliament House even further in 2004-05.

Outcome 1 Effective provision of services to support the
functioning of the Senate as a House of the Commonwealth
Parliament

To achieve this outcome with the funds appropriated by the Parliament, the
department provides the Senate, its committees, the President of the Senate,
senators and the public with a broad range of advisory and support services.

The work of the department is determined almost entirely by the Senate and
its committees. The department is responsible to the Senate and all
senators, and maintains complete impartiality in serving equally senators
from all political parties and independent senators.

The departments four main areas of service provision are:

• Senate support advice and secretariat support for the functioning
  of the Senate.


• Committee support advice and secretariat support for the
  operation of Senate and some joint committees.
  
• Senators services provision of office services, information
  technology security advice, and other support services to senators
  and Senate officeholders in Parliament House.
  
• Public education and awareness promotion of public knowledge
  and awareness of the role and activities of the Senate and its
  committees.

These areas are reflected as intermediate outcomes in the diagram on
page 8.

Outcome 1 Resourcing

Table 2.1 shows how the 2004-05 appropriations translate to total resourcing
for Outcome 1, including administered expenses, revenue from departmental
appropriation, revenue from other sources, and the total price of outputs.

Table 2.1: Total resources for Outcome 1 ($000)

* The decrease in the average staffing level for 2004-05 reflects the transfer
of 52 full time equivalent security staff to DPS in 2003-04.

Outcome 1 Contribution of Outputs

The departments contribution to the achievement of Outcome 1 is assessed
using indicators and processes which cover all of the departments output
groups, as well as using indicators and processes which are specific to
particular output groups. Indicators and assessment processes
covering quality, timeliness, quantity and price are outlined in Table 2.2.

Achievement of planned performance will be reported in the Department
of the Senates 2004-05annual report.

Performance Information for Outcome 1

Table 2.2 Performance information

Evaluations

The departments activities are evaluated through both internal and external
audits. The Audit and Evaluation Committee is an important part of the
departments evaluation strategy. Reviews conducted throughout the year
are tabled at each Audit and Evaluation Committee meeting and members
consider the findings and recommendations. Agreed recommendations are
incorporated in the departments practices and procedures.

The departments Strategic Internal Audit Plan 2003-2006 focuses on
areas of highest risk and where management feels the greatest value can be
added. The audit program includes a combination of compliance and
comprehensive reviews. There are usually between 8 and 12 audits
conducted each year.

For the 2004-05 financial year, the following areas within the department
may be subject to an internal audit:

• transfer of the security function;
• stationery store;
• domestic travel, incorporating credit card usage;
• portable and attractive assets; and
• official hospitality.

The planned internal audit program for 2004-05 will be finalised in
consultation with the executive and approved by the Audit and Evaluation
Committee in July 2004.

The department is also covered by the program of the Australian National
Audit Office (ANAO) and may be involved in some cross-portfolio audits
or benchmarking activities.

Senators are surveyed biennially on the quality of the full range of services
provided by the department. The Appropriations and Staffing Committee
and the Finance and Public Administration Legislation Committee also play
an important role in monitoring the performance of the department.

Competitive tendering and contracting

Purchasing activities within the department are in accordance with the
Commonwealth Procurement Guidelines. Major service providers are
selected on the basis of value for money through competitive tendering
processes as required.

Section 3: Budgeted financial statements

Departmental Financial Statements

Table 3.1: Budgeted Departmental Statement of Financial
Performance

This statement identifies expenses and revenues and highlights whether the
department is operating at a sustainable level.

Table 3.2: Budgeted Departmental Statement of Financial Position

This statement identifies assets and liabilities.

Table 3.3: Budgeted Departmental Statement of Cash Flows

This statement identifies the departments cash flows, categorising them by
operating, financing and investing activities. A break down of all operating
cash outflows by program is disclosed at Appendix 1. There are no major
changes in cash flows to note other than what has already been discussed
under Budget Measures.

Schedule of Administered Activity

This schedule identifies revenues and expenses which the department
administers on behalf of the Commonwealth.

This schedule identifies assets and liabilities which the department
administers on behalf of the Commonwealth.

Table 3.6: Schedule of Budgeted Administered Cash Flows

This schedule identifies cash flows which the department administers on
behalf of the Commonwealth.

Table 3.1: Budgeted Departmental Statement of Financial Performance
for the period ended 30 June

Table 3.2: Budgeted Departmental Statement of Financial Position
as at 30 June

Table 3.3: Budgeted Departmental Statement of Cash Flows
for the period ended 30 June

Table 3.4: Schedule of Budgeted Administered Revenues and
Expenses for the period ended 30 June

Table 3.5: Note of Budgeted Assets and Liabilities Administered on
behalf of Government as at 30 June

Table 3.6: Note of Budgeted Administered Cash Flows
for the period ended 30 June

Notes to the Financial Statements

• Departmental price of outputs appropriations: representing the
  Governments purchase of outputs from agencies;
• Departmental capital appropriations: for investments by the
  Government for either additional equity or loans in agencies;
• Administered expense appropriations: for the estimated administered
  expenses relating to an existing outcome, a new outcome or a
  Specific Purpose Payment to the states; and
• Administered capital appropriations: for increases in administered
  equity through funding non-expense administered payments.

The department has received no capital appropriations in 2004-05.

Appendix 1: Note to Table 3.1 Employee and Supplier Expenses

Note: Above expense totals exclude depreciation and resources received free of charge.