Portfolio Budget Statements

Portfolio Budget Statement 2001-02

Home | Contents | Letter from Secretary  | Part B — Overview |  Part C — Budget Statement

Part C

AGENCY BUDGET STATEMENTS

Section 1: Overview, appropriations and budget measures summary

Section 2: Outcome and outputs information

Outcome 1 - Resourcing

Section 3: Budgeted financial statements

Section 4: Purchaser/Provider arrangements

Glossary

Section 1: Overview, appropriations and budget measures summary

OVERVIEW

The role of the Department of the Parliamentary Library (DPL) is to provide information services, research and policy analysis to the Parliament.

DPL’s outcome is to contribute to a more informed Parliament and, through it, to the Australian community. This is achieved by the provision of commissioned information services and policy advice and analysis to, and self-help information services for, Senators, Members, parliamentary committees and parliamentary departments. DPL serves the Australian community by making available DPL publications, including general distribution papers, the Parliamentary Handbook, subject guides and e-briefs, on the Department’s website www.aph.gov.au/library.

APPROPRIATIONS

The overall appropriation for the Department of the Parliamentary Library in the 2001–02 accrual Budget is $16.965m comprising:

• $16.829m in the Appropriation (Parliamentary Departments) Bill (No.1) 2001-2002; and
• $0.136m in section 31 net appropriations.

The appropriations are exclusive of recoverable GST.

Table 1.1, at page 14, shows the total appropriation for the Department of the Parliamentary Library for 2001–02 by outcome and by price of output appropriation. Trends in appropriation, real funding and staffing are shown on the page opposite.

DPL’s appropriations relate to a single outcome.

2001–2002 BUDGET MEASURES AFFECTING DPL

The Department of Finance and Administration has advised that there are no Budget Measures applying to DPL for 2001–02.

However, the general 1% efficiency dividend has been applied to DPL’s forward estimates. Since efficiency dividends were introduced with effect from the 1987-88 financial year, the cumulative efficiency dividends and one-off cuts applied to DPL reached 24.65% in 2001-02. What this means is that, excluding inflation effects, the present value of $1m in 1986-87 is $778,500 in 2001-02. Efficiency dividends have also been applied to depreciation expenses from the 2000-01 financial year.

$2m of employee liabilities, arising from non-current accrued long service leave as at 30 June 1999, has not been funded under accrual budgeting.

ADMINISTERED CAPITAL AND DEPARTMENTAL EQUITY INJECTIONS AND LOANS

DPL has no administered capital.

DPL has no departmental equity injections or loans for 2001-02.

Chart 1: Trends in appropriations and real funding for DPL’s outcome

Note 1: Since efficiency dividends were introduced with effect from the 1987-88 financial year, the cumulative efficiency dividends and one-off cuts applied to DPL reached 24.65% in 2001-02. What this means is that, excluding inflation effects, the present value of $1m in 1986-87 is $778,500 in 2001-02. Efficiency dividends have also been applied to depreciation expenses from the 2000-01 financial year.

Note 2: 2001-02 appropriation includes $66,000 from 2000-01 Wage Cost Index (WCI) adjustments.

Note 3: 1999-2000 is the base year for accrual accounting and budgeting.

Chart 2: Trends in staffing levels

Note 1: 2001-02 average staffing level (asl) is impacted by the outsourcing of financial and personnel processing to the Department of the Parliamentary Reporting Staff.

Note 2: 2000-01 budgeted asl was 175. Actual asl reflects actual workload and planned deficit of $360,000.

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Section 2: Outcome and outputs information

Department of the Parliamentary Library Outcome and Outputs

The chart below shows the relationship between the single outcome and the two contributing outputs for the Department of the Parliamentary Library. Financial details for Outcome 1 by outputs appear in tables 2.1, 2.2 and 2.3.

Department of the Parliamentary Library Resourcing

OUTCOME AND OUTPUTS

Note: There has been no change in DPL’s outcome and outputs from financial year 2000-01.

Outcome 1 - Resourcing

Table 2.1 shows how the 2001-02 appropriation translates to total resourcing for Outcome 1, including revenue from government (appropriation), revenue from other sources, and the total price of outputs. Cell references C1, E1 and I1 show the links back to Table 1.1, the Appropriations Table at page 14.

Outcome 1—To contribute to a more informed Parliament and, through it, to the Australian community.

Table 2.1: Total Resources for Outcome 1

1. Exclusive of recoverable GST.
2. 2001-02 asl is impacted by the outsourcing of financial and personnel processing to the Department of the Parliamentary Reporting Staff.

Performance Information for Outcome 1

Tables 2.2 and 2.3 list the formal performance information that the Department of the Parliamentary Library will use to assess the planned level of its achievement of Outcome 1 during 2001–02. The tables show how the outputs contribute to Outcome 1. Information shown is both quantitative and qualitative.

Output 1

Chart 3: Number of Requests by Senators, Members and Parliamentary Committee

Chart 4: Hours to meet Requests by Senators, Members and Parliamentary Committee

Note: Previous years’ figures have been adjusted for work-in-progress.

Table 2.2: Performance Information for Output 1

¹ As the individual requirements of Senators, Members, parliamentary committees and their staff vary over time, funds may be transferred between outputs to meet the changing priorities of Parliament and the information delivery environment.

² A confidential, qualitative and quantitative survey is carried out each Parliament by an independent consultant. The results of the 1999 Client Services Evaluation are at Appendix 8 of DPL’s Annual Report 1998-99. It is envisaged that the next client service evaluation will be undertaken after new Senators commence on 1 July 2002.

Output 2

Chart 5: Searches of Library Database

Note 1: Web Interface to ParlInfo (WIPI) introduced in May 1999 and electronic newspaper clippings introduced on 1 January 2000.

Chart 6: Items added to Library Database

Note 2: To provide 24 hour 7 day access to clients to use self-help services, DPL is providing more information on the Library Databases through ParlInfo.

Note 3: 2000-01 and 2001-02 estimates are based on increased media coverage for the election period.

Chart 7: Books borrowed

Table 2.3: Performance Information for Output 2

¹ As the individual requirements of Senators, Members, parliamentary committees and their staff vary over time, funds may be transferred between outputs and between the various elements of Output 2 to meet the changing priorities of Parliament and the information delivery environment.

² External client means any client who is not a staff member of DPL.

³ Includes down-loads of information from databases as well as visits to web-based systems.

Achievement of planned performance will be reported in the Department of the Parliamentary Library's Annual Report 2001–02.

Evaluations

The Department’s primary clients are Senators and Members and their staff, parliamentary committees and the parliamentary administration. Accordingly, accountability to the Parliament is both detailed and ongoing.

As part of DPL’s commitment to continuous improvement of the services provided to Senators and Members, a confidential, qualitative and quantitative survey is conducted once each Parliament to evaluate the appropriateness, effectiveness and efficiency of DPL’s client services and to assist in their development. The survey is carried out by an independent consulting firm, which conducts indepth interviews with a cross-section of Senators and Members using a structured series of questions about the quality of the various client services provided by the department. The survey recommendations and DPL’s responses are considered by the joint Library Committee.

With the impending Federal Election, it is envisaged that the next client service evaluation will be undertaken after new Senators commence on 1 July 2002.

DPL’s 2000-2002 Certified Agreement commits the staff to assist the department to better manage its resources and better attribute the use of those resources and to commit to more effective performance communication across DPL

As a result, in 2000-01, DPL has:

• commenced benchmarking its acquisitions and cataloguing functions;

• in addition to the normal compliance audits, undertaken internal audit performance reviews of purchasing and asset management, (Deloitte Touche Tohmatsu, the internal auditor, has stated that DPL’s asset management is in accordance with best practice. The audit report on purchasing is still to be received.);
• commenced a review of all aspects of its printing and imaging requirements against best practice, with findings due to be made to DPL’s Management Committee after August 2001; and
• upgraded the program of staff performance communication.

In 2001-02, DPL intends to:

• complete the benchmarking of its acquisitions and cataloguing functions, following the introduction of a new Integrated Library System (ILS) early in the financial year;
• introduce and review a new Work Recording and Reporting System (WRRS) and integrated Departmental Management System (DMS); and
• improve awareness amongst Senators and Members of the full range of Library services available to them. The department is developing a new client service awareness strategy. This will reflect the sensitivities of the parliamentary environment, the different needs and expectations of individual Senators and Members, and access to these services from both Parliament House and electorate offices.

Competitive Tendering and Contracting

The Department has for a number of years contracted out a range of non-core services and functions that it believes can be performed more cost-effectively and efficiently by other parliamentary departments or the private sector. These include:

• financial and personnel processing functions outsourced to the Department of the Parliamentary Reporting Staff (DPRS), with effect from 1 July 2001;

• media transcript production function transferred to DPRS (with DPL retaining the client service responsibility to provide Senators and Members with media transcripts); and
• bulk printing (currently outsourced to the Department of the House of Representatives).

These are governed by contract or service level agreement.

In addition to sourcing transcripts from DPRS, DPL acquires transcripts, newspaper articles and press releases in electronic format from commercial suppliers and the Internet. DPL also sources approximately 20% of its indexing and cataloguing services from external suppliers. This arises from fluctuating workloads and staff leave and the percentage may change as a result of the benchmarking of acquisitions and cataloguing functions.

DPL will continue to assess carefully which non-core services can be provided in the parliamentary environment by alternative, more cost-effective means.

Twenty percent of the total price for DPL’s outputs for 2001-02 continues to be represented by resources received free of charge from the other parliamentary departments, the National Library of Australia (NLA) and the Australian National Audit Office (ANAO). Details of the goods and services received are at Section 4.

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Section 3: Budgeted financial statements

The following budgeted departmental financial statements for the Department of the Parliamentary Library are presented in this section. The audited final financial statements will appear in DPL's annual reports and be input into the Whole of Government Accounts.

Budgeted Departmental Statement of Financial Performance

This statement provides a picture of the expected financial results for the Department by identifying full accrual expenses, revenues and capital use charge, which highlights whether or not the Department is operating at a sustainable level in the short run. A material component of the operating expenses is resources received free of charge.

Budgeted Departmental Statement of Financial Position

Shows the financial position of the Department. It enables decision-makers to track the management of the Department's assets and liabilities.

Budgeted Departmental Statement of Cash Flows

Budgeted cash flows, as reflected in the statement of cash flows, provide important information on the extent and nature of cash flows by categorising them into expected cash flows from operating activities, investing activities and financing activities.

Departmental Capital Budget Statement

Shows proposed capital expenditure funded either through the Budget as appropriation by equity injections or as loans or as funds from internal sources, or as funds from other sources.

Departmental Non-financial Assets—Summary of Movement

This statement shows proposed acquisitions and disposals of non-financial assets during the budget year.

Table 3.1: Budgeted Departmental Statement of Financial Performance
for the period ended 30 June 2002

 ¹ Links to (K1) in Table 1.1. The figure in Table 3.1 for Revenues from Government comprise $16,829,000 (Revenue from Government (Appropriations)) and $4,225,000 (resources free of charge).

Table 3.2: Budgeted Departmental Statement of Financial Position
as at 30 June 2002

Table 3.3: Budgeted Departmental Statement of Cash Flows
for the period ended 30 June 2002

Table 3.4: Departmental Capital Budget Statement

Table 3.5: Departmental Non-Financial Assets – Summary of Movement
(Budget Year 2001-02)

 ¹ Other infrastructure, plant and equipment gross value includes DPL’s resource collections. The total additions table shows the breakup.

Notes to the Financial Statements

1.  The Appropriation (Parliamentary Departments) Bill 2001-02 provides for the ordinary annual services of the department and includes funding for replacement of minor assets and for the capital use charge. The ordinary annual services of the department include the provision of the Australian Parliamentary Fellowship and support for other parliaments, including the South West Pacific Parliamentary Libraries.

2.  Resources received free of charge (RRFOC) for 2001-02 have been based on 2000-01 figures, adjusted where agencies have advised changed figures. The material goods and services expected are detailed at page 31 and are valued as follows:

ANAO	$	60,000
Department of the Senate	$	188,000
Department of the House of Representatives	$	200,000
Department of the Parliamentary Reporting Staff	$	2,077,000
Joint House Department	$	1,653,000
National Library of Australia	$	47,000
	$	4,225,000

1.  Estimated revenues from independent sources include publications ($6,000), sale of assets ($3,000), bank interest ($121,000) and other ($6,000), including insurance recoveries.

2.  Employee expenses include normal remuneration expenses for the outputs provided (including accrued leave) and separation expenses.

3.  Suppliers include $4,225,000 resources received free of charge.

4.  For the Budget year, depreciation and amortisation include amounts arising from capital purchases planned for 2001-02 and the balance of 2000-01.

5.  Capital use charge (CUC) for 2001-02 ($714,000) is calculated at 12% of DPL’s estimated net assets as at 30 June 2001 ($5,947,000).

6.  Refer to Table 3.5 Non-Financial Assets – Summary of Movement.

7.  Employee liabilities are the estimated salaries, annual leave and long service leave accruals at 30 June. The short-hand actuarial method recommended by the Australian Government Actuary is used to calculate the long service leave liability.

8.  Provision estimated for suppliers at 30 June.

9.  Budgeted financial statements are prepared consistent with GST accounting requirements, as outlined by the Urgent Issues Group (UIG) of the Australian Accounting Research Foundation. The UIG consensus requires that expenses and assets be accounted for net of recoverable GST, revenues to be accounted for net of GST payable and that cash flows and accounts payable and receivable are reported gross. Appropriations are net of recoverable GST amounts.

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 Section 4: Purchaser/Provider arrangements

This section applies to arrangements under which the outputs of one agency are purchased by another agency to contribute to outcomes.

Included in the notional price of outputs for 2001-02 is $4,225,000 in resources received free of charge from the other parliamentary departments, the Australian National Audit Office (ANAO) and the National Library of Australia. These comprise:

• ANAO
  • auditing services as required by the Financial Management and Accountability Act 1997;
• Department of the Senate
  • provision of copies of Bills, Notice Papers, Journals and Parliamentary Papers;
  • provision of security services;
• Department of the House of Representatives
  • provision of copies of Bills, Notice Papers, Votes and Proceedings, and Parliamentary Papers;
  • provision of security services;
• Department of the Parliamentary Reporting Staff (DPRS)
  • provision and maintenance of computing, telephony and broadcasting infrastructure and services;
  • provision of Hansard and transcription services;
• Joint House Department
  • provision of accommodation in Parliament House;
  • provision of housekeeping and engineering services; and
• National Library of Australia
  • provision of original and photocopied material.

DPL currently purchases its bulk printing from the Department of the House of Representatives.

With effect from 1 July 2001, DPL will outsource its financial and personnel processing to DPRS.

In addition to providing services to its core clients, ie Senators and Members, DPL provides services to the staff of parliamentary committees and to the other staff of the parliamentary departments.

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GLOSSARY

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